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

|  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                                                                                                                                                   |           |
|                                                                                                                                                                          |           |   |   |   |   |   |
|                                                                                                                                                                          | March 31, 2010 |   |   | December 31, 2009 |   |
| ASSETS                                                                                                                                                                        | (Unaudited)    |   |   |   |   |
| Current Assets                                                                                                                                                                |           |   |   |   |   |   |
| Cash                                                                                                                                                                          |           | $ | 18,922 |   |   | $ | 21,333 |   |
| Accounts receivable (net of allowance for doubtful accounts of $16,426 for both periods)                                                                                      |           |   | 201,591 |   |   |   | 265,006 |   |
| Other receivables                                                                                                                                                             |           |   | 12,096 |   |   |   | - |   |
| Inventory                                                                                                                                                                     |           |   | 255,105 |   |   |   | 199,949 |   |
| Prepaid expenses                                                                                                                                                              |           |   | 24,896 |   |   |   | 32,892 |   |
|                                                                                                                                                                          |           |   |   |   |   |   |   |   |
| Total Current Assets                                                                                                                                                          |           |   | 512,610 |   |   |   | 519,180 |   |
|                                                                                                                                                                          |           |   |   |   |   |   |   |   |
| Property, plant & equipment (net of accumulated depreciation of $1,380,856 and $1,375,337 respectively)                                                                   |           |   | 22,855 |   |   |   | 28,374 |   |
| Other assets                                                                                                                                                                  |           |   | - |   |   |   | 600 |   |
|                                                                                                                                                                          |           |   |   |   |   |   |   |   |
| Total Assets                                                                                                                                                                  |           | $ | 535,465 |   |   | $ | 548,154 |   |
|                                                                                                                                                                          |           |   |   |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                   |           |   |   |   |   |   |   |   |
| Current Liabilities                                                                                                                                                           |           |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                                      |           | $ | 318,302 |   |   | $ | 321,701 |   |
| Accrued other liabilities                                                                                                                                                     |           |   | - |   |   |   | 534 |   |
| Credit line advances                                                                                                                                                          |           |   | 38,878 |   |   |   | 38,878 |   |
| Accrued warranty liability                                                                                                                                                    |           |   | 7,875 |   |   |   | 10,500 |   |
| Accrued vacation expenses                                                                                                                                                     |           |   | 34,314 |   |   |   | 27,594 |   |
| Deferred sales revenue                                                                                                                                                        |           |   | 109,147 |   |   |   | 62,407 |   |
|                                                                                                                                                                          |           |   |   |   |   |   |   |   |
| Total Current Liabilities                                                                                                                                                     |           |   | 508,516 |   |   |   | 461,614 |   |
|                                                                                                                                                                          |           |   |   |   |   |   |   |   |
| Total Liabilities                                                                                                                                                             |           |   | 508,516 |   |   |   | 461,614 |   |
|                                                                                                                                                                          |           |   |   |   |   |   |   |   |
| 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; 13,728,513 and 13,703,513 shares issued and outstanding as of March 31, 2010 and December 31, 2009, respectively |           |   | 13,728 |   |   |   | 13,703 |   |
| Additional paid-in capital                                                                                                                                                    |           |   | 1,938,890 |   |   |   | 1,932,915 |   |
| Retained earnings (deficit)                                                                                                                                                   |           |   | (1,925,669 | ) |   |   | (1,860,078 | ) |
|                                                                                                                                                                          |           |   |   |   |   |   |   |   |
| Total Stockholders’ Equity                                                                                                                                              |           |   | 26,949 |   |   |   | 86,540 |   |
|                                                                                                                                                                          |           |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders’ Equity                                                                                                                              |           | $ | 535,465 |   |   | $ | 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 theThree Months Ended March 31, |   |
|                                                                                              |   | 2010 |   |   | 2009 |   |
| Revenues                                                                                          |   |   |   |   |   |   |
| Sales (net of returns)                                                                            |   | $ | 485,701 |   |   | $ | 496,188 |   |
| Costs of goods sold                                                                               |   |   | 250,900 |   |   |   | 295,755 |   |
| Gross Profit                                                                                      |   |   | 234,801 |   |   |   | 200,433 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Expenses                                                                                          |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                     |   |   | 5,519 |   |   |   | 5,580 |   |
| Selling and marketing                                                                             |   |   | 54,165 |   |   |   | 15,774 |   |
| General and administrative                                                                        |   |   | 172,147 |   |   |   | 136,272 |   |
| Research and development                                                                          |   |   | 66,021 |   |   |   | 79,743 |   |
| Total Expenses                                                                                    |   |   | 297,852 |   |   |   | 237,369 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| (Loss) from operations                                                                            |   |   | (63,051 | ) |   |   | (36,936 | ) |
|                                                                                              |   |   |   |   |   |   |   |   |
| Other income/(expenses)                                                                           |   |   | (2,540 | ) |   |   | (10,550 | ) |
| Provision for income taxes                                                                        |   |   | - |   |   |   | - |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Net loss                                                                                          |   | $ | (65,591 | ) |   | $ | (47,486 | ) |
|                                                                                              |   |   |   |   |   |   |   |   |
| Net loss per share of common stock                                                                |   | $ | (0.00 | ) |   | $ | (0.00 | ) |
|                                                                                              |   |   |   |   |   |   |   |   |
| Weighted average number of common shares                                                          |   |   | 13,726,013 |   |   |   | 12,119,932 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| 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 Three Months ending March 31, 2010 and 2009                                               |   |
|                                                                                              |   |   |   |   |   |   |
|                                                                                              |   | 2010 |   |   | 2009 |   |
| Cash flow from operating activities                                                               |   |   |   |   |   |   |
| Net income/(loss)                                                                                 |   | $ | (65,591 | ) |   | $ | (47,486 | ) |
| Depreciation and amortization                                                                     |   |   | 5,519 |   |   |   | 5,580 |   |
| Provision for allowance on accounts receivable                                                    |   |   | - |   |   |   | 7,875 |   |
| Stock issued for services                                                                         |   |   | 6,000 |   |   |   | - |   |
| Change in non-cash working capital items:                                                         |   |   |   |   |   |   |   |   |
|   Accounts receivable                                                                   |   |   | 63,415 |   |   |   | (87,326 | ) |
|   Other receivables and deposits                                                        |   |   | (12,096 | ) |   |   | (3,661 | ) |
|   Inventory                                                                             |   |   | (55,156 | ) |   |   | 130,857 |   |
|   Prepaid expenses                                                                      |   |   | 8,596 |   |   |   | 20,723 |   |
|   Accounts payable                                                                      |   |   | (3,399 | ) |   |   | (5,153 | ) |
|   Accrued expenses                                                                      |   |   | 6,186 |   |   |   | (35,628 | ) |
|   Lines of credit                                                                       |   |   | - |   |   |   | (4,790 | ) |
|   Accrued warranty liability                                                            |   |   | (2,625 | ) |   |   | - |   |
|   Deferred sales                                                                        |   |   | 46,740 |   |   |   | 12 |   |
| Cash flow used in operating activities                                                            |   |   | (2,411 | ) |   |   | (18,997 | ) |
|                                                                                              |   |   |   |   |   |   |   |   |
| Cash flow provided by investing activities                                                        |   |   | - |   |   |   | - |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Cash flow provided by financing activities                                                        |   |   | - |   |   |   | - |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| (Increase) decrease in cash position                                                              |   |   | (2,411 | ) |   |   | (18,997 | ) |
|                                                                                              |   |   |   |   |   |   |   |   |
| Cash position at beginning of period                                                              |   |   | 21,333 |   |   |   | 40,490 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Cash position at end of period                                                                    |   | $ | 18,922 |   |   | $ | 21,493 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                                 |   |   |   |   |   |   |   |   |
| Cash paid for:                                                                                    |   |   |   |   |   |   |   |   |
| Interest                                                                                          |   | $ | 2,540 |   |   | $ | 10,550 |   |
| 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 Pursuant   to 18 USC Section 1350, as   adopted pursuant to Section 302   of Sarbanes-Oxley Act of 2002 |     This Filing |
|  31.02    |  31    |  CFO 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              |  CFO Certification pursuant to   Section 906                                                                                                   |   This Filing             |

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|                                                                                                | Princeton Security Technologies, Inc. |
|-----------------------------------------------------------------------------------------------------|---------------------------------------|
|                                                                                                | (Registrant)                          |
|                                                                                                |                                  |   |   |
|  Date:           October 15, 2010  |  By:                             |  /s/ |  Juhani Taskinen |
|                                                                                                |                                  |   |  Juhani Taskinen, CEO and CFO |

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