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|  Nevada                                |  20-5506885                        |
|---------------------------------------------|-----------------------------------------|
|  (State or other jurisdiction of  |  (IRS Employer Identification No.) |
|  Incorporation or organization)        |                                    |

|  Large Accelerated filer  ¨                                                                    |  Accelerated filer ¨    |
|---------------------------------------------------------------------------------------------------------------|-----------------------------------|
|  Non-accelerated filer     ¨ (Do not check if a smaller reporting company) |  Smaller reporting company x |

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|  PRINCETON SECURITY TECHNOLOGIES, INC.                                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED BALANCE SHEETS                                                                                                                                                  |
|                                                                                                                                                                         |   |   |   |   |   |   |
|                                                                                                                                                                         | June 30, 2011 |   |   | December 31, 2010 |   |
| ASSETS                                                                                                                                                                       | (Unaudited) |   |   |   |   |
| Current Assets                                                                                                                                                               |   |   |   |   |   |   |
| Cash                                                                                                                                                                         |   | $ | 214,366 |   |   | $ | 39,567 |   |
| Accounts receivable -net of allowance                                                                                                                                        |   |   | 163,677 |   |   |   | 225,827 |   |
| Other receivables                                                                                                                                                            |   |   | 33,463 |   |   |   | 1,030 |   |
| Inventory                                                                                                                                                                    |   |   | 435,090 |   |   |   | 289,872 |   |
| Prepaid expenses                                                                                                                                                             |   |   | 50,688 |   |   |   | 58,729 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total Current Assets                                                                                                                                                         |   |   | 897,284 |   |   |   | 615,025 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Property, plant & equipment (net of accumulated depreciation of $1,403,185 and $1,398,115 respectively)                                                                  |   |   | 31,924 |   |   |   | 24,596 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total Assets                                                                                                                                                                 |   | $ | 929,208 |   |   | $ | 639,621 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                  |   |   |   |   |   |   |   |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Accounts payable                                                                                                                                                             |   | $ | 236,210 |   |   | $ | 178,074 |   |
| Accrued expenses                                                                                                                                                             |   |   | 49,445 |   |   |   | 48,526 |   |
| Accrued related party expenses                                                                                                                                               |   |   | 20,000 |   |   |   | 36,000 |   |
| Accrued vacation expenses                                                                                                                                                    |   |   | 41,732 |   |   |   | 33,647 |   |
| Credit line advances                                                                                                                                                         |   |   | - |   |   |   | 23,684 |   |
| Deferred revenue                                                                                                                                                             |   |   | 149,238 |   |   |   | 159,450 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total Current Liabilities                                                                                                                                                    |   |   | 496,625 |   |   |   | 479,381 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total Liabilities                                                                                                                                                            |   |   | 496,625 |   |   |   | 479,381 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Preferred stock; $.001 par value, 10,000,000 shares authorized; no shares issued and outstanding                                                                             |   |   | - |   |   |   | - |   |
| Common stock; $.001 par value, 90,000,000 shares authorized; 14,233,513 and 14,043,513 shares issued and outstanding as of June 30, 2011 and December 31, 2010, respectively |   |   | 14,233 |   |   |   | 14,043 |   |
| Additional paid-in capital                                                                                                                                                   |   |   | 2,002,485 |   |   |   | 1,961,575 |   |
| Retained earnings (deficit)                                                                                                                                                  |   |   | (1,584,135 | ) |   |   | (1,815,378 | ) |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total Stockholders’ Equity                                                                                                                                             |   |   | 432,583 |   |   |   | 160,240 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders’ Equity                                                                                                                             |   | $ | 929,208 |   |   | $ | 639,621 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| See notes to Unaudited Consolidated Financial Statements.                                                                                                                    |

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| PRINCETON SECURITY TECHNOLOGIES, INC.                     |
|-----------------------------------------------------------|
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS      |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   | For the Three Months Ended June 30, |   |   | For the Six Months Ended June 30, |   |
|                                                      |   | 2011 |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
| Revenues                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales (net of returns)                                    |   | $ | 892,351 |   |   |   | 455,076 |   |   | $ | 1,762,872 |   |   |   | 940,777 |   |
| Costs of goods sold                                       |   |   | 463,110 |   |   |   | 258,724 |   |   |   | 874,388 |   |   |   | 509,624 |   |
| Gross Profit                                              |   |   | 429,241 |   |   |   | 196,352 |   |   |   | 888,484 |   |   |   | 431,153 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                             |   |   | 1,409 |   |   |   | 5,518 |   |   |   | 5,070 |   |   |   | 11,037 |   |
| Selling and marketing                                     |   |   | 69,217 |   |   |   | 53,957 |   |   |   | 124,937 |   |   |   | 108,122 |   |
| General and administrative                                |   |   | 224,967 |   |   |   | 152,272 |   |   |   | 382,025 |   |   |   | 324,419 |   |
| Research and development                                  |   |   | 78,549 |   |   |   | 78,384 |   |   |   | 140,460 |   |   |   | 144,405 |   |
| Total Expenses                                            |   |   | 374,142 |   |   |   | 290,131 |   |   |   | 652,492 |   |   |   | 587,983 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Profit from operations                                    |   |   | 55,099 |   |   |   | (93,779 | ) |   |   | 235,992 |   |   |   | (156,830 | ) |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income/(expenses)                                   |   |   | (4,289 | ) |   |   | 769 |   |   |   | (4,749 | ) |   |   | (1,771 | ) |
| Provision for income taxes                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Profit/(Loss)                                         |   | $ | 50,810 |   |   |   | (93,010 | ) |   |   | 231,243 |   |   |   | (158,601 | ) |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Profit/(Loss) per share of common stock               |   | $ | 0.00 |   |   |   | (0.01 | ) |   |   | 0.02 |   |   |   | (0.01 | ) |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares                  |   |   | 14,233,513 |   |   |   | 13,729,172 |   |   |   | 14,055,331 |   |   |   | 13,727,601 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to Unaudited Consolidated Financial Statements. |

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| PRINCETON SECURITY TECHNOLOGIES, INC.                     |
|-----------------------------------------------------------|
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS           |
| For the six months ended June 30, 2011 and 2010           |
|                                                      |   |   |   |   |   |   |
|                                                      |   | 2011 |   |   | 2010 |   |
| Cash flow from operating activities                       |   |   |   |   |   |   |
| Net income/(loss)                                         |   | $ | 231,243 |   |   | $ | (158,601 | ) |
| Depreciation and amortization                             |   |   | 5,070 |   |   |   | 11,037 |   |
| Stock issued for services                                 |   |   | 41,100 |   |   |   | 12,000 |   |
| Change in operating assets and liabilities                |   |   |   |   |   |   |   |   |
|   Accounts receivable                           |   |   | 62,150 |   |   |   | 132,305 |   |
|   Other receivables                             |   |   | (32,433 | ) |   |   | (11,847 | ) |
|   Inventory                                     |   |   | (145,218 | ) |   |   | (38,437 | ) |
|   Prepaid expenses                              |   |   | 8,041 |   |   |   | 11,469 |   |
|   Accounts payable                              |   |   | 58,136 |   |   |   | (16,046 | ) |
|   Accrued expenses                              |   |   | 2,991 |   |   |   | 11,660 |   |
|   Warranty expenses                             |   |   | (9,987 | ) |   |   | (5,250 | ) |
|   Deferred revenue                              |   |   | (10,212 | ) |   |   | 67,579 |   |
| Cash flow provided by operating activities                |   |   | 210,881 |   |   |   | 15,869 |   |
|                                                      |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   |   |   |   |   |
| Cash flow from investing activities                       |   |   |   |   |   |   |   |   |
|   Purchase of property and equipment            |   |   | (12,398 | ) |   |   | (10,350 | ) |
|                                                      |   |   |   |   |   |   |   |   |
| Cash flow used in investing activities                    |   |   | (12,398 | ) |   |   | (10,350 | ) |
|                                                      |   |   |   |   |   |   |   |   |
| Cash flow from financing activities                       |   |   |   |   |   |   |   |   |
| Lines of Credit                                           |   |   | (23,684 | ) |   |   | 490 |   |
|                                                      |   |   |   |   |   |   |   |   |
| Cash flow provided by financing activities                |   |   | (23,684 | ) |   |   | 490 |   |
|                                                      |   |   |   |   |   |   |   |   |
| Increase/(decrease) in cash position                      |   |   | 174,799 |   |   |   | 6,009 |   |
|                                                      |   |   |   |   |   |   |   |   |
| Cash position at beginning of period                      |   |   | 39,567 |   |   |   | 21,333 |   |
|                                                      |   |   |   |   |   |   |   |   |
| Cash position at end of period                            |   | $ | 214,366 |   |   | $ | 27,342 |   |
|                                                      |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:         |   |   |   |   |   |   |   |   |
| Cash paid for:                                            |   |   |   |   |   |   |   |   |
| Interest expense                                          |   | $ | - |   |   | $ | - |   |
| Income taxes                                              |   | $ | - |   |   | $ | - |   |
|                                                      |   |   |   |   |   |   |   |   |
| See notes to Unaudited Consolidated Financial Statements. |

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| -   | Category 1: Radioactive Isotope Identifier Products. |
|---------------|------------------------------------------------------|

| -   | Category 2: Nuclear/ Gamma-ray detectors and spectrometers: |
|---------------|-------------------------------------------------------------|

| -   | Category 3: X-ray detectors and spectrometers. |
|---------------|------------------------------------------------|

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|  Item 4 |  Exhibit No. |  Instruments Defining the Rights of Security Holders             |  Location                                           |
|--------------|-------------------|----------------------------------------------------------------------------|----------------------------------------------------------|
|         |              |                                                                       |                                                     |
|  4.01   |  4           |  Specimen Stock Certificate                                           |  Incorporated                                       |
|         |              |                                                                       |         By Reference* |
|         |              |                                                                       |                                                     |
|  31.01  |  31          |  CEO certification Pursuant to 18 USC Section 1350,                   |                                                     |
|         |              |      as adopted pursuant to Section 302           |                                                     |
|         |              |      of Sarbanes-Oxley Act of 2002                |  This Filing                                        |
|         |              |                                                                       |                                                     |
|  31.02  |  31          |  Principal Financial Officer certification Pursuant                   |                                                     |
|         |              |      to 18 USC Section 1350, as adopted pursuant  |                                                     |
|         |              |      to Section 302 of Sarbanes-Oxley Act of 2002 |  This Filing                                        |
|         |              |                                                                       |                                                     |
|  32.01  |  32          |  CEO Certification pursuant to section 906                            |  This Filing                                        |
|         |              |                                                                       |                                                     |
|  32.02  |  32          |  Principal Financial Officer Certification pursuant to Section 906    |  This Filing                                        |
|         |              |                                                                       |                                                     |
|         |  101.INS     |  XBRL Instance                                                        |  This Filing                                        |
|         |              |                                                                       |                                                     |
|         | 101.XSD           |  XBRL Schema                                                          |  This Filing                                        |
|         |              |                                                                       |                                                     |
|         | 101.CAL           |  XBRL Calculation                                                     |  This Filing                                        |
|         |              |                                                                       |                                                     |
|         | 101.DEF           |  XBRL Definition                                            |  This Filing                                        |
|         |              |                                                                       |                                                     |
|         | 101.LAB           |  XBRL Label                                                           |  This Filing                                        |
|         |              |                                                                       |                                                     |
|         |  101.PRE     |  XBRL Presentation                                                    |  This Filing                                        |

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|                                                                                          | Princeton Security Technologies, Inc. |                                                              |
|-----------------------------------------------------------------------------------------------|---------------------------------------|-------------------------------------------------------------------|
|                                                                                          | (Registrant)                          |                                                              |
|                                                                                          |                                  |                                                              |   |
| Date:   August 12, 2011                                                   | By:                                   | /s/ Juhani Taskinen                                          |   |
|             August 12, 2011  | By:                                   | /s/ Trupti Mehta                                                  |   |
|                                                                                          |                                  | Juhani Taskinen, CEO and Trupti Mehta,Principal Financial Officer |   |
|                                                                                          |                                  |                                                              |   |

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