| Large      accelerated filer | [      ]        | Accelerated      filer         | [        ] |
|------------------------------|----------------------|--------------------------------|----------------------|
| Non-accelerated      filer   | [        ] | Smaller reporting      company | [X]                  |

----

|                                                                        |   |   |
|-----------------------------------------------------------------------------|--------|--------|
| PART      I - FINANCIAL INFORMATION                                         |   |   |
|                                                                        |   |   |
| Item      1. Financial Statements                                           |   | 3      |
|                                                                        |   |   |
| Item      2. Management's Discussion and Analysis or Plan of    Operation   |   | 15     |
|                                                                        |   |   |
| Item      3. Quantitative and Qualitative Disclosures of Market Risk        |   | 17     |
|                                                                        |   |   |
| Item      4. Controls and Procedures                                        |   | 17     |
|                                                                        |   |   |
| PART      II - OTHER INFORMATION                                       |   |   |
|                                                                        |   |   |
| Item      1. Legal Proceedings                                              |   | 18     |
|                                                                        |   |   |
| Item      2. Unregistered Sales of Equity Securities and Use of    Proceeds |   | 18     |
|                                                                        |   |   |
| Item      3. Defaults Upon Senior Securities                                |   | 18     |
|                                                                        |   |   |
| Item      4. Submission of Matters to a Vote of Security Holders            |   | 18     |
|                                                                        |   |   |
| Item      5. Other Information                                              |   | 18     |
| .                                                                           |   |   |
| Item      6. Exhibits                                                       |   | 19     |
|                                                                        |   |   |
| SIGNATURES                                                                  |   | 19     |
|                                                                        |   |   |

----

----

|   | Consolidated      Balance Sheets                           |   | F-2 |
|--------|------------------------------------------------------------|--------|-----|
|   | Consolidated      Statements of Operations                 |   | F-3 |
|   | Consolidated      Statements of Stockholder’s Equity |   | F-4 |
|   | Consolidated      Statements of Cash Flows                 |   | F-5 |
|   | Notes      to Consolidated Financial Statements            |   | F-6 |

----

| As      at                                                                                                                | February      28, | May      31, |
|---------------------------------------------------------------------------------------------------------------------------|-------------------|--------------|
|                                                                                                                      | 2009              | 2008         |
|                                                                                                                      | $                 | $            |
| ASSETS                                                                                                                    |              |         |
|                                                                                                                      |              |         |
| Current                                                                                                                   |              |         |
|     Cash      and cash equivalents                                                                    | 1,500             | 21,067       |
|     Goods      and services tax recoverable                                                           | 951               | 86           |
|                                                                                                                      | 2,451             | 21,153       |
|                                                                                                                      |              |         |
| Equipment      – net of  $956 depreciation                                                                | 1,130             | 1,420        |
| Total      Assets                                                                                                         | 3,581             | 22,573       |
|                                                                                                                      |              |         |
| LIABILITIES                                                                                                               |              |         |
|                                                                                                                      |              |         |
| Current                                                                                                                   |              |         |
|      Accounts      payable and accrued liabilities                                               | 3,603             | 436          |
|           Convertible debentures (Note 4)                                                             |  10,000      | -       |
|      Advances      from a related party (Note 5)                                                 | -                 | 35,020       |
| Total      Liabilities                                                                                                    | 13,603            | 35,456       |
|                                                                                                                      |              |         |
| STOCKHOLDERS’      DEFICIENCY                                                                                       |              |         |
|                                                                                                                      |              |         |
| Preferred      Stock: $0.00001 par value; authorized 100,000,000 preferred shares; none      issued                       |              |
|                                                                                                                      |              |         |
| Common      Stock: $0.00001 par value; authorized 100,000,000 common shares; 8,518,000      shares issued and outstanding |
| (Note      6)                                                                                                             | 85                | 85           |
|                                                                                                                      |              |         |
| Additional      Paid-In Capital                                                                                           | 125,341           | 78,615       |
|                                                                                                                      |              |         |
| Deficit      Accumulated During the Development Stage                                                                     | (135,448)         | (91,583)     |
|                                                                                                                      |              |         |
| Total      Stockholders’ Deficiency                                                                                 | (10,022)          | (12,883)     |
|                                                                                                                      |              |         |
| Total      Liabilities and Stockholders’ Deficiency                                                                 | 3,581             | 22,573       |
|                                                                                                                      |              |         |

----

|                                                         |  Three      MonthPeriod      EndedFebruary      28, 2009 |  Three      MonthPeriod      EndedFebruary      29, 2008 |   NineMonthPeriod      EndedFebruary      28, 2009 |   Nine MonthPeriod      EndedFebruary      29, 2008 | Cumulative      From November 27, 2006 (Date of Inception) toFebruary      28, 2009 |
|--------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------------|-------------------------------------------------------------------------------------|
|   Revenue                                          |   -                                                 | $ -                                                      | $ -                                                     | $ -                                                           | $ -                                                                            |
|                                                         |                                                          |                                                          |                                                         |                                                               |                                                                                |
| General      and Administrative Expenses                     |                                                          |                                                          |                                                         |                                                               |                                                                                |
|                                                         | Accounting      and administration                            | 4,000                                                         | 400                                                          | 8,923                                                              | 11,900                                                                              | 11,773 |
|                                                         | Audit      fees                                               | 1,734                                                         | 1,802                                                        | 9,469                                                              | 10,400                                                                              | 21,544 |
|                                                         | Bank      charges                                             | 48                                                            | 109                                                          | 161                                                                | 256                                                                                 | 865 |
|                                                         | Consulting      fees                                          | 152                                                           | 6,089                                                        | 12,292                                                             | 17,894                                                                              | 47,628 |
|                                                         | Depreciation                                                  | 96                                                            | 172                                                          | 290                                                                | 509                                                                                 | 956 |
|                                                         | Legal      fees                                               | 2                                                             | 10,509                                                       | 1,394                                                              | 10,825                                                                              |  23,055 |
|                                                         | Licenses                                                      | 354                                                           | -                                                            | 2,631                                                              | -                                                                                   | 2,631 |
|                                                         | Marketing      and advertising                                | -                                                             | -                                                            | -                                                                  | -                                                                                   | 156 |
|                                                         | Office      expenses                                          | -                                                             | 143                                                          | -                                                                  | 437                                                                                 | 1,287 |
|                                                         | Office      rent                                              | 33                                                            | 1,020                                                        | 2,634                                                              | 3,479                                                                               | 7,416 |
|                                                         | Security      supplies, uniforms, general                     | -                                                             | 549                                                          | -                                                                  | 1,256                                                                               | 2,724 |
|                                                         | Telephone      and internet fees                              | 1,111                                                         | 228                                                          | 1,111                                                              | 1,077                                                                               | 2,187 |
|                                                         | Transfer      agent and filing fees                           | 3,110                                                         | 111                                                          | 4,407                                                              | 1,741                                                                               | 7,433 |
|                                                         | Vehicle      expenses                                         | -                                                             | 1,227                                                        | -                                                                  | 4,329                                                                               | 5,108 |
|                                                         | Loss      (gain) on foreign exchange                          | (1,206)                                                       | (182)                                                        | 553                                                                | (655)                                                                               | 685 |
|                                                         |                                                          |                                                          |                                                         |                                                               |                                                                                |
|  Net      Loss for the Period                           |  (9,434)                                                 |  (32,177)                                                |  (43,865)                                               |  (63,541)                                                     |  (135,448)                                                                     |
|  Basic      and Diluted Gain/(Loss) Per Share           |   ($0.001)                                          |   ($0.004)                                          |   ($0.005)                                         |   ($0.007)                                               |                                                                                |
|  Weighted      Average Number ofShares      Outstanding |   8,518,000                                         |   8,518,000                                         |   8,518,000                                        |   8,518,000                                              |                                                                                |

----

|   |     Common      Stock |    AdditionalPaid-In |   DeficitAccumulatedDuring      theDevelopment |    TotalStockholders’ |
|--------|-------------------------------------------|-------------------------------------|----------------------------------------------------------|--------------------------------------------|
|   | Shares                                    | Amount                              | Capital                                                  | Stage                                      | Equity      (Deficiency) |
|   |                                      | $                                   | $                                                        | $                                          | $ |

|                                                                                                                                                                                                                                                            |                                                                |                                            |                                                        |                                          |                                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|-------------------------------------------------|-------------------------------------------------------------|-----------------------------------------------|-------------------------------------------------------------|
| Common      stock issued for cash, November 28, 2007, to an officer and director at      $0.001 per share Common      stock issued for cash, February 23, 2007, at $0.0075 pershare Common      stock issued for cash, May 8, 2007 at $0.15 per share | 2,500,000    5,800,000   218,000 | 25    58   2 | 2,475    43,442   32,698 | -    -   - | 2,500    43,500   32,700 |
|                                                                                                                                                                                                                                                            |                                                                |                                            |                                                        |                                          |                                                        |
| Net      loss for the year ended May      31, 2007                                                                                                                                                                                                              | -                                                                   | -                                               | -                                                           | (19,332)                                      | (19,332)                                                    |
|                                                                                                                                                                                                                                                            |                                                                |                                            |                                                        |                                          |                                                        |
| Balance,      May 31, 2007                                                                                                                                                                                                                                      | 8,518,000                                                           | 85                                              | 78,615                                                      |     (19,332)              |       59,368                  |
|                                                                                                                                                                                                                                                            |                                                                |                                            |                                                        |                                          |                                                        |
| Net      loss for the year ended May      31, 2008                                                                                                                                                                                                              | -                                                                   | -                                               | -                                                           | (72,251)                                      | (72,251)                                                    |
|                                                                                                                                                                                                                                                            |                                                                |                                            |                                                        |                                          |                                                        |
| Balance,      May 31, 2008                                                                                                                                                                                                                                      | 8,518,000                                                           | 85                                              | 78,615                                                      | (91,583)                                      | (12,883)                                                    |
|                                                                                                                                                                                                                                                            |                                                                |                                            |                                                        |                                          |                                                        |
| Contributions      to capital by related party (Note 5)                                                                                                                                                                                                         |                                                                |                                            | 46,726                                                      |                                          | 46,726                                                      |
|                                                                                                                                                                                                                                                            |                                                                |                                            |                                                        |                                          |                                                        |
| Net      loss for the period ended February 28, 2009                                                                                                                                                                                                            | -                                                                   | -                                               | -                                                           | (43,865)                                      | (43,865)                                                    |
|                                                                                                                                                                                                                                                            |                                                                |                                            |                                                        |                                          |                                                        |
| Balance,      February 28, 2009                                                                                                                                                                                                                                 | 8,518,000                                                           | 85                                              | 125,341                                                     | (135,448)                                     | (10,022)                                                    |

----

|                                                                              |  Nine      MonthPeriod      EndedFebruary      29, 2009 |  Nine      MonthPeriod      EndedFebruary      29, 2008 | Cumulative      From November      27, 2006 (Date      of Inception) to      February      28, 2009                                                                                                                                                                                                                                                                                          |
|-----------------------------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                              | $                                                            | $                                                            |                                                                 $ |
| Cash      provided by (used in):                                                  |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
| Operating      Activities                                                         |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                              |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
| Net      (Loss) from operations                                                   | (42,140)                                                     | (63,541)                                                     |  (135,448)                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                              |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
| Items      not requiring cash outlay                                              |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
|      Depreciation                                        | 290                                                          | 280                                                          | 956                                                                                                                                                                                                                                                                                                                                                                                               |
|  Contributed      consulting services by a related party                | 10,095                                                       |        -                                                | 10,095                                                                                                                                                                                                                                                                                                                                                                        |
| Cash      provided by (used in) operating  assets      and liabilities: |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
|           Goods and services tax recoverable                  | (865)                                                   | 1                                                            |  (951)                                                                                                                                                                                                                                                                                                                                                                   |
|      Accounts      payable and accrued liabilities       | 1,442                                                        | (1,849)                                                      | 3,603                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                              |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
| Net      cash used in operating activities                                        | (31,178)                                                     | (65,109)                                                     | (121,745)                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                              |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
| Investing      Activities                                                         |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
| Purchase      of computer equipment                                               | -                                                            | -                                                            | (2,086)                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                              |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
| Net      cash used in investing activities                                        | -                                                            | -                                                            | (2,086)                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                              |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
| Financing      Activities                                                         |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
| Contributions      to capital from a related party                           | 1,611                                                        | -                                                            | 36,631                                                                                                                                                                                                                                                                                                                                                                                            |
| Advances      from a related party                                                | -                                                       | 15,000                                                  | -                                                                                                                                                                                                                                                                                                                                                                                  |
| Convertible      debentures issued                                                | 10,000                                                  | -                                                            |         10,000                                                                                                                                                                                                                                                                                                                                                           |
| Common      stock issued for cash                                                 | -                                                            | -                                                            | 78,700                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                              |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
| Net      cash provided by financing activities                                    | 11,611                                                       | 15,000                                                       | 125,331                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                              |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
| Net      cash provided (used) during the period                                   | (19,567)                                                     | (50,109)                                                     | 1,500                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                              |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
| Cash      and cash equivalents at beginning of period                             | 21,067                                                       | 59,309                                                       | -                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                              |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
| Cash      and cash equivalents at end of period                                   | 1,500                                                        | 9,200                                                        | 1,500                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                              |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
| Supplementary      Disclosure of Statements of Cash Flows      Information        |                                                         |                                                         |                                                                                                                                                                                                                                                                                                                                                                                              |
| Interest      Paid                                                                | -                                                            | -                                                            | -                                                                                                                                                                                                                                                                                                                                                                                                 |
| Foreign      Exchange Gain/(Loss)                                                 | (1,197)                                                      | 665                                                          | 694                                                                                                                                                                                                                                                                                                                                                                                               |
| Income      Taxes (Note 7)                                                        | -                                                            |                                                         | -                                                                                                                                                                                                                                                                                                                                                                                                 |

----

|                                               |   Nine      MonthPeriod      EndedFebruary      28, 2009 |   Nine      MonthPeriod      EndedFebruary      29, 2008 | Cumulative      From November 27, 2006 (Date of Inception) to February 28,      2009 |
|----------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------------------------|
|                                               | $                                                                  | $                                                                  | $                                                                                    |
| Supplemental      Disclosure of Non-Cash Investing |                                                               |                                                               |                                                                                 |
| and      Financing Activities                      |                                                               |                                                               |                                                                                 |
| Forgiveness      of debt by a related party        | 35,020                                                             | -                                                                  | -                                                                                    |
|                                               |                                                               |                                                               |                                                                                 |

----

| (b)   | Year      End |
|-----------------|---------------|

----

----

----

| -   | Level      1 - Quoted prices in active markets for identical asset or      liabilities. |
|---------------|-----------------------------------------------------------------------------------------|

| -   | Level      2 - Observable inputs other than quoted prices included in Level 1, such      as quoted prices for similar assets and liabilities in active markets;      quoted prices for identical or similar assets and liabilities in markets      that are not active; or other inputs that are observable or can be      corroborated by observable marketdata. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Level      3 - Unobservable inputs that are supported by little or no market activity      and that are significant to the fair value of the assets or liabilities.      This includes certain pricing models, discounted cash flow methodologies      and similar techniques that use significant unobservable      inputs. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (n)   | Recent      Accounting Pronouncements(continued) |
|-----------------|--------------------------------------------------|

----

|                                                                 | February      28, 2009 | May      31, 2008 |
|----------------------------------------------------------------------|------------------------|-------------------|
|                                                                 | $                      | $            |
| Net      operating loss carry forwards(expiring      in 2027 - 2029) |  65,377           | 72,251            |
|  Statutory      tax rate                                        |  15%      - 34.5% | 15%      - 34.5%  |
|  Deferred      tax assets                                       |  65,377           | 24,435            |
|  Less:      Valuation allowance                                 |  (28,141)         | (24,435)          |
|  Net      deferred tax assets                                   |  -                | -                 |

----

| ITEM      2. | MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS. |
|--------------|--------------------------------------------------------------------------------------------------|

----

----

| ITEM      4. | CONTROLS      AND PROCEDURES. |
|--------------|-------------------------------|

----

```
We are not currently a party to any pending legal proceeding.
```

```
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
```

```
None.  ITEM 3. DEFAULT UPON SENIOR SECURITIES None. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None.   ITEM 5. OTHER INFORMATION - SUBSEQUENT EVENTS On March 5, 2009, we issued a convertible debenture to an unrelated third party. The convertible debenture bears interest at the rate of 10% per annum  on any unpaid principle balance, is unsecured and has no fixed terms of repayment.  The holder of the convertible debenture has the right to convert any portion of the unpaid principle amount and/or accrued interest into restricted common shares of the Company at any time within thirty-six months from the issue date on the basis of $0.0125 per common share for each dollar of principle and/or interest due and payable.     18
```

| ITEM      6. | EXHIBITS. |
|--------------|-----------|

| Exhibit      No. | Document      Description                                                                                                                                                                                    |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |                                                                                                                                                                                                         |
| 31.1             | Certification      of Principal Executive Officer and Principal Financial Officer pursuant to      Rule 13a-15(e) and 15d-15(e), promulgated under the Securities and      Exchange Act of 1934, as amended. |
|             |
| 32.1             | Certification      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002 (Chief Executive Officer and Chief      Financial Officer).                 |

|   | PRINCIPLE      SECURITY INTERNATIONAL, INC. |
|--------|---------------------------------------------|
|   | (Registrant)                                |
|   |                                        |   |
|   | /s/                                         | CHARLES      PAYNE |
|   |  By:                                   | Charles      Payne |
|   |                                        | President,      Principal Executive Officer, Principal Accounting Officer, Principal      Financial Officer, Secretary/Treasurer, and member of the Board of      Directors. |

----