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

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|  PRINCETON SECURITY TECHNOLOGIES, INC.                                                                                                                                                  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED BALANCE SHEETS                                                                                                                                                                  |
|                                                                                                                                                                                         |   |   |   |   |   |   |
|                                                                                                                                                                                         | September 30, 2010 |   |   | December 31, 2009 |   |
| ASSETS                                                                                                                                                                                       | (Unaudited) |   |   |   |   |
| Current Assets                                                                                                                                                                               |   |   |   |   |   |   |
| Cash                                                                                                                                                                                         |   | $ | 158,680 |   |   | $ | 21,333 |   |
| Accounts receivable (net of allowance for doubtful accounts of $16,426 for both periods)                                                                                                     |   |   | 165,219 |   |   |   | 265,006 |   |
| Other receivables                                                                                                                                                                            |   |   | 15,022 |   |   |   | - |   |
| Inventory                                                                                                                                                                                    |   |   | 281,545 |   |   |   | 199,949 |   |
| Prepaid expenses                                                                                                                                                                             |   |   | 25,240 |   |   |   | 32,892 |   |
|                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total Current Assets                                                                                                                                                                         |   |   | 645,706 |   |   |   | 519,180 |   |
|                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Property, plant & equipment (net of accumulated depreciation of $1,391,892 and $1,375,337 respectively)                                                                                  |   |   | 25,619 |   |   |   | 28,374 |   |
| Other assets                                                                                                                                                                                 |   |   | - |   |   |   | 600 |   |
|                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total Assets                                                                                                                                                                                 |   | $ | 671,325 |   |   | $ | 548,154 |   |
|                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                                                     |   | $ | 288,737 |   |   | $ | 321,701 |   |
| Accrued other liabilities                                                                                                                                                                    |   |   | 325 |   |   |   | 534 |   |
| Accrued expenses                                                                                                                                                                             |   |   | 2,625 |   |   |   | 10,500 |   |
| Accrued vacation expenses                                                                                                                                                                    |   |   | 30,278 |   |   |   | 27,594 |   |
| Deferred sales revenue                                                                                                                                                                       |   |   | 307,492 |   |   |   | 62,407 |   |
|                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total Current Liabilities                                                                                                                                                                    |   |   | 629,457 |   |   |   | 422,736 |   |
|                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Notes payable                                                                                                                                                                                |   |   | 25,281 |   |   |   | 38,878 |   |
| Total Liabilities                                                                                                                                                                            |   |   | 654,738 |   |   |   | 461,614 |   |
|                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY (DEFICIT)                                                                                                                                                         |   |   |   |   |   |   |   |   |
| 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; 13,873,513 and 13,703,513 shares issued and outstanding as of September  30, 2010 and December 31, 2009, respectively |   |   | 13,873 |   |   |   | 13,703 |   |
| Additional paid-in capital                                                                                                                                                                   |   |   | 1,953,245 |   |   |   | 1,932,915 |   |
| Retained earnings (deficit)                                                                                                                                                                  |   |   | (1,950,531 | ) |   |   | (1,860,078 | ) |
|                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total Stockholders’ Equity (Deficit)                                                                                                                                                   |   |   | 16,587 |   |   |   | 86,540 |   |
|                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders’ Equity (Deficit)                                                                                                                                   |   | $ | 671,325 |   |   | $ | 548,154 |   |
|                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these unaudited consolidated Financial Statements.                                                                                            |

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| PRINCETON SECURITY TECHNOLOGIES, INC.                                                                   |
|---------------------------------------------------------------------------------------------------------|
| (UNAUDITED) CONSOLIDATED STATEMENTS OF OPERATIONS                                                       |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                    |   | For the Three Months Ended September 30, |   |   | For the Nine Months Ended September 30, |   |
|                                                                                                    |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Revenues                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales (net of returns)                                                                                  |   | $ | 676,360 |   |   | $ | 595,833 |   |   |   | 1,617,137 |   |   |   | 1,500,714 |   |
| Costs of goods sold                                                                                     |   |   | 327,686 |   |   |   | 372,320 |   |   |   | 837,310 |   |   |   | 906,974 |   |
| Gross Profit                                                                                            |   |   | 348,674 |   |   |   | 223,513 |   |   |   | 779,827 |   |   |   | 593,740 |   |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                           |   |   | 5,517 |   |   |   | 2,233 |   |   |   | 16,554 |   |   |   | 13,303 |   |
| Selling and marketing                                                                                   |   |   | 75,553 |   |   |   | 19,102 |   |   |   | 183,675 |   |   |   | 49,732 |   |
| General and administrative                                                                              |   |   | 129,238 |   |   |   | 88,443 |   |   |   | 453,657 |   |   |   | 455,153 |   |
| Research and development                                                                                |   |   | 74,372 |   |   |   | 96,139 |   |   |   | 218,777 |   |   |   | 284,740 |   |
| Total Expenses                                                                                          |   |   | 284,680 |   |   |   | 205,917 |   |   |   | 872,663 |   |   |   | 802,928 |   |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Profit from operations                                                                                  |   |   | 63,994 |   |   |   | 17,596 |   |   |   | (92,836 | ) |   |   | (209,188 | ) |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income/(expenses)                                                                                 |   |   | (427 | ) |   |   | (14,459 | ) |   |   | (2,198 | ) |   |   | (49,418 | ) |
| Gain on extinguishment of Liabilities                                                                   |   |   | 4,581 |   |   |   | - |   |   |   | 4,581 |   |   |   | - |   |
| Provision for income taxes                                                                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Profit                                                                                              |   | $ | 68,148 |   |   | $ | 3,137 |   |   |   | (90,453 | ) |   |   | (258,606 | ) |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Profit per share of common stock                                                                    |   | $ | 0.005 |   |   | $ | 0.00 |   |   |   | (0.01 | ) |   |   | (0.02 | ) |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares                                                                |   |   | 13,788,513 |   |   |   | 12,100,375 |   |   |   | 13,748,128 |   |   |   | 11,899,060 |   |
|                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these unaudited consolidated Financial Statements.  |

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| PRINCETON SECURITY TECHNOLOGIES, INC.                                                             |
|---------------------------------------------------------------------------------------------------|
| (UNAUDITED) CONSOLIDATED STATEMENTS OF CASH FLOWS                                                 |
| For the Nine Months ending September 30, 2010 and 2009                                            |
|                                                                                              |   |   |   |   |   |   |
|                                                                                              |   | 2010 |   |   | 2009 |   |
| Cash flow from operating activities                                                               |   |   |   |   |   |   |
| Net income/(loss)                                                                                 |   | $ | (90,453 | ) |   | $ | (258,606 | ) |
| Depreciation and amortization                                                                     |   |   | 16,555 |   |   |   | 13,303 |   |
| Provision for allowance on accounts receivable                                                    |   |   | - |   |   |   | - |   |
| Accrued Interest                                                                                  |   |   | - |   |   |   | 27,630 |   |
| Stock issued for services                                                                         |   |   | 20,500 |   |   |   | 79,750 |   |
| Change in operating assets and liabilities                                                        |   |   |   |   |   |   |   |   |
|   Accounts receivable                                                                   |   |   | 99,787 |   |   |   | (54,670 | ) |
|   Other receivables and deposits                                                        |   |   | (15,022 | ) |   |   | 21,168 |   |
|   Inventory                                                                             |   |   | (81,596 | ) |   |   | 156,103 |   |
|   Prepaid expenses                                                                      |   |   | 8,252 |   |   |   | 9,108 |   |
|   Accounts payable                                                                      |   |   | (32,964 | ) |   |   | 28,081 |   |
|   Accrued expenses                                                                      |   |   | 2,475 |   |   |   | (734 | ) |
|   Warranty expenses                                                                     |   |   | (7,875 | ) |   |   | - |   |
|   Deferred sales                                                                        |   |   | 245,085 |   |   |   | 59,611 |   |
| Cash flow provided by operating activities                                                        |   |   | 164,744 |   |   |   | 80,744 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Cash flow used in investing activities                                                            |   |   |   |   |   |   |   |   |
|   Purchace of property and equipment                                                    |   |   | (13,800 | ) |   |   | - |   |
| Cash flow from investing activities                                                               |   |   | (13,800 | ) |   |   | - |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Cash flow used in financing activities                                                            |   |   |   |   |   |   |   |   |
|   Lines of credit                                                                       |   |   | (13,597 | ) |   |   | (4,828 | ) |
| Cash flow from financing activities                                                               |   |   | (13,597 | ) |   |   | (4,828 | ) |
|                                                                                              |   |   |   |   |   |   |   |   |
| Increase/(decrease) in cash position                                                              |   |   | 137,347 |   |   |   | 75,916 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Cash position at beginning of period                                                              |   |   | 21,333 |   |   |   | 40,490 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Cash position at end of period                                                                    |   | $ | 158,680 |   |   | $ | 116,406 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                                 |   |   |   |   |   |   |   |   |
| Cash paid for:                                                                                    |   |   |   |   |   |   |   |   |
| Interest expense                                                                                  |   | $ | - |   |   | $ | 21,788 |   |
| Income taxes                                                                                      |   | $ | - |   |   | $ | - |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these 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                                                                                  | Incorporatedby reference*     |
|   |                    |                 |                                                                                                             |                          |
|   | 31.01    | 31    | CEO certification Pursuantto 18 USC Section 1350, asadopted pursuant to Section 302of Sarbanes-Oxley Act of 2002 |    This Filing |
|   |                    |                 |                                                                                                             |                          |
|   | 31.02    | 31    | CFO certification Pursuantto 18 USC Section 1350, asadopted pursuant to Section 302of Sarbanes-Oxley Act of 2002 |    This Filing |
|   |                    |                 |                                                                                                             |                          |
|   | 32.01              | 32              | CEO Certification pursuant tosection 906                                                                         |  This Filing             |
|   |                    |                 |                                                                                                             |                          |
|   | 32.02                   | 32                   | CFO Certification pursuant toSection 906                                                                         |  This Filing             |

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|                                                 | Princeton Security Technologies, Inc.(Registrant) |                         |
|------------------------------------------------------|---------------------------------------------------|------------------------------|
|                                                 |                                              |                         |   |
| Date:    November 11, 2010  | By:                                               | /s/ Juhani Taskinen     |   |
|                                                 |                                              | Juhani Taskinen, CEO and CFO |   |
|                                                 |                                              |                         |   |
|                                                 |                                              |                         |   |

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