SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549



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FORM 10-QSB



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|x | Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ---------------------------------------------------------------------------------

For the Quarter Ended:  September 30, 2007

|o | Transition Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ----------------------------------------------------------------------------------

For the Transition Period fromto

Commission File Number333-141482

Princeton Security Technologies, Inc.

(Name of Small Business Issuer in its charter)

Nevada20-5506885

(State or other jurisdiction of(I.R.S. Employer I.D. No.)

incorporation or organization)

303C College Road, Princeton, New Jersey 08540

(Address of principal executive offices and Zip Code)

609-924-7310

(Registrants telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

(1)  Yes X
        No
        (2)  Yes X
        No


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YesxNoo

Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date.

11,781,375 shares of Common Stock, $0.001 par value as of October 31, 2007





PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Princeton Security Technologies, Inc.

FINANCIAL STATEMENTS

(UNAUDITED)

The financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. However, in the opinion of management, all adjustments (which include only normal recurring accruals) necessary to present fairly the financial position and results of operations for the periods presented have been made. These financial statements should be read in conjunction with the accompanying notes, and with the historical financial information of the Company.









PRINCETON SECURITY TECHNOLOGIES, INC.(UNAUDITED) CONSOLIDATED BALANCE SHEETSeptember 30, 2007ASSETSCurrent AssetsCash
        $               93,316Accounts receivable (net of allowance for doubtful accounts of $26,563 )
        523,912Inventory (net of reserves of $183,127)
        728,610Prepaid Expenses
        82,577Total Current Assets
        1,428,415Property, plant & equipment (net of accumulated depreciation of $1,321,310)
        82,399Total Assets
        $          1,510,814LIABILITIESCurrent LiabilitiesAccounts payable and accrued liabilities
        $             705,632Accrued other liabilities
        15,788Accrued payroll expenses
        14,834Accrued vacation expenses
        55,001Deferred service contract revenue
        2,333Deferred sales revenue
        116,385Accrued warranty expenses
        20,315Total Current Liabilities
        930,288STOCKHOLDERS EQUITYPreferred stock; $.001 par value, 10,000,000 shares authorized; no shares issued and outstanding
        -Common stock; $.001 par value, 90,000,000 shares authorized; 11,500,000 shares  issued and outstanding
        11,500Additional paid-in capital
        1,294,690Retained earnings (deficit)
        (725,664)Total Stockholders Equity
        580,526Total Liabilities and Stockholders Equity
        $          1,510,814The accompanying notes are an integral part of these consolidated Financial Statements.








PRINCETON SECURITY TECHNOLOGIES, INC.(UNAUDITED) CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSSFor theThree Months Ended
Sept 30th
        For the Nine Months ended
Sept 30th2007
        2006
        2007
        2006RevenuesSales (net of returns)
        $             535,344
        $             734,410
        $          2,038,503
        $         1,779,291Costs of goods sold
        289,677
        385,184
        1,322,928
        1,026,605Gross Profit
        245,667
        349,226
        715,575
        752,686ExpensesDepreciation and amortization
        5,155
        3,026
        16,133
        9,182Selling and marketing
        81,347
        76,982
        268,844
        148,540General and administrative
        221,500
        136,395
        621,184
        449,503Research and development
        114,528
        127,189
        314,863
        475,489422,530
        343,592
        1,221,024
        1,082,714(Loss) from operations
        (176,863)
        5,634
        (505,449)
        (330,028)Other income/(expenses)
        (299)
        (6,611)
        (7,569)
        (4,793)Provision for income taxes
        -
        (1,192)
        -
        (4,292)Net loss
        $          (177,162)
        $              (2,169)
        $           (513,018)
        $         (339,113)Foreign currency translation adjustment
        -
        -
        -
        19,432Other comprehensive loss
        $          (177,162)
        $              (2,169)
        $           (513,018)
        $         (319,681)Net loss per share of common stock
        $                (0.02)
        $                (0.00)
        $                 (0.04)
        $               (0.04)Weighted average number of common shares
        11,500,000
        8,678,261
        11,500,000
        8,228,571The accompanying notes are an integral part of these consolidated Financial Statements.










PRINCETON SECURITY TECHNOLOGIES, INC.(UNAUDITED) CONSOLIDATED STATEMENTS OF CASH FLOWSFor the Nine Months Ending September 30th2007
        2006Cash flow from operating activitiesNet income/(loss)
        $        (513,018)
        $          (339,113)Depreciation and amortization
        16,133
        9,188Provision for allowance on accounts receivable
        30
        (40,652)Stock options issued for services
        13,578
        -Change in non-cash working capital items:Accounts receivable
        (11,002)
        699,898Inventory
        (179,228)
        (53,287)Prepaid expenses
        (31,763)
        24,954Accounts payable
        35,897
        (232,556)Accrued expenses
        (18,530)
        (67,300)Accrued payroll
        (27,209)
        (124,855)Accrued vacation
        298
        -Deferred services contracts
        2,333
        (104,231)Deferred sales
        75,464
        (29,755)Cash flow used in operating activities
        (637,017)
        (257,709)Cash flow from investing activitiesPurchase of property and equipment
        (8,240)
        (79,936)Cash flow used in investing activities
        (8,240)
        (79,936)Cash flow from financing activitiesProceeds from sale of stock
        -
        503,748Cash flow provided by financing activities
        -
        503,748(Increase) decrease in cash position
        (645,257)
        166,103Cash position at beginning of period
        738,573
        328,033Cash position at end of period
        $             93,316
        $             494,136Supplemental disclosure of cash flow information:Cash paid for:Interest
        $               7,569
        $                        -Income taxes
        $                      -
        $                 3,100The accompanying notes are an integral part of these consolidated Financial Statements.








PRINCETON SECURITY TECHNOLOGIES, INC.NOTES TO (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTSFor the nine months ending September 30, 2007 and 2006Note 1     OrganizationPrinceton Security Technologies, Inc. (the Company) was incorporated on September 8, 2006 in the State of Nevada. The Company is the holding company of Princeton Gamma-Tech Instruments, Inc. (PGTI). PGTI was incorporated on February 16, 2005 in the State of New Jersey. On February 19, 2005, PGTI purchased the assets of Princeton Gamma-Tech, Inc. This acquisition included the assets, liabilities, operations, clients and intellectual property of Princeton Gamma-Tech, Inc., including its wholly-owned subsidiary in the United Kingdom, Princeton Gamma-Tech (UK) Limited. On December 28, 2006, Princeton Gamma-Tech (UK) Limited was sold. The Company has elected a fiscal year end of December 31st.Note 2   Business ActivityPrinceton Gamma-Tech Instruments, Inc. is a leading supplier of X-ray and Gamma-ray Detectors and Spectroscopy systems, portable Radioisotope Identifiers, and portable Chemical Analyzers. The Company serves a broad customer base in scientific research, industrial materials analysis, and Homeland Security. The Company operates a full customer service and support program, backed by a modern manufacturing and service facility.Note 3   Use of Estimates in the preparation of the financial statementsThe preparation of the Companys financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. The interim financial information is unaudited. Interim results are not necessarily indicative of results of operations for the full year.The condensed consolidated financial statements include the accounts of Princeton Security Technologies, Inc. and  subsidiary after elimination of inter-company transactions and accounts.Note 4Liquidity and Capital ResourcesWe have  been able to finance our operations, capital expenditures and other liquidity needs through our cash flows generated from operations along with cash generated from sale of company stock. Total cash decreased by $400,819 by the end of the nine months ending September 30, 2007 to $93,316 compared to $494,135 for the nine months ending September 30, 2006.Note 5   Sales








Sales were down 27% in the three months ending September 30, 2007 versus the three months ending September 30, 2006 primarily due to an decrease in portable radioactive identifier sales . However, sales in the nine months ending September 30, 2007 were up 14.5% compared to sales in the nine months ending September 30, 2006.Note 6    RISKS RELATED TO OUR BUSINESSWe are currently losing money and may need additional capital to execute on our business plan.Currently our operations are losing money and we have had to rely on equity investments to fund shortfalls. As we begin to expand our operations and commence marketing campaigns for our recently developed products, our capital requirements are likely to expand. Even with the proceeds from our recent public stock offering it is likely we will need additional capital to remain in business. Investors in that offering will likely suffer further dilution if we raise additional capital and if we are unable to raise additional capital, it is likely we would have to terminate our operations resulting in the loss of the investors investments.Note 7   We have limited funds upon which to rely for adjusting to business variations and for growing new business.We are likely to look for new funding to assist in the expansion of our business. If we are to grow and expand our operations, we will need to raise significant amounts of additional capital. There can be no assurance we will be able to raise additional capital and even if we are successful in raising additional capital, that we will be able to raise capital on reasonable terms. If we do raise capital, our existing shareholders, may incur substantial dilution.Note 8    Gross MarginThe Gross margin is lower for the three months and nine months ending September 30, 2007 compared to the three months and nine months ending September 30, 2006 due to the change in product mix. The margin on nuclear and SAM sales is lower than the margin on X-ray sales.Note 9    Fixed CostsSelling expenses have increased in 2007 as we have hired an outside consultant to help promote new sales. There has also been an increase in travel to shows and customers.Administrative expenses have increased in 2007 as we incurred additional legal, audit, and general administrative fees for going public.In 2006 we had high R&D expenses for the new product design and casing. This design work was fundamentally complete in 2006 so our 2007 R&D expenses are much lower.Note 10    Gross Profit/LossDespite the increased expenses due to the public listing and increased sales & marketing, the overall loss improved by 9.9% from a loss by June 30, 2007 of (22.3%) of net sales compared to a loss of (32.2%) of net sales as of June 30, 2006 (This needs to be updated to September 30, 2007 and 2006 numbers instead of June 30 numbers).Note 11 Stock Options








During the three months ended September 30, 2007, the Company implemented a stock option plan, which consisted of a total of 350,000 stock options to employees, 60,000 stock options to consultants and 90,000  stock options to Board of Directors  Therefore, there was a total of 500,000 stock options granted during the three months ended September 30, 2007. The Company booked stock option expenses of $13,578 bringing the total Stock Options expenses to  $41,442 as of September 30, 2007. These options were valued using the Black-Scholes method.Note 12 Completion of Sales of Equity SecuritiesIn October 2007, the Company completed the sale of shares of its common stock pursuant to a registration statement filed with the Securities and Exchange Commission, file no. 333-141482. The Company raised a total of $110,641 (net of issuing costs of $1,909) through the sale of 281,375 shares of its common stock.






ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL


CONDITION AND RESULTS OF OPERATIONS

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This periodic report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, business strategies, operating efficiencies or synergies, competitive positions, growth opportunities for existing products, plans and objectives of management. Statements in this periodic report that are not historical facts are hereby identified as forward-looking statements.(

Business of the Company

Corporate Information

Princeton Security Technologies, Inc. (Princeton or the Company) a Nevada corporation is the parent company of Princeton Gamma Tech Instruments, Inc. (PGTI) which develops and manufactures detection equipment used in the homeland security and industrial marketplaces. When used herein Princeton or the Company includes PGTI.     PGTI is a Princeton, New Jersey based corporation founded in February 2005. PGTI acquired all the business assets for its Detector and Microanalysis systems from a subsidiary of a global stainless steel company, Outokumpu Oyj, in February 2005. Since then, PGTI has restructured its operation, sold its undesired Microanalysis business to a subsidiary of Bruker Biosciences Corp., and focused its efforts towards the detector business and its existing homeland security and industrial marketplaces.

Products

Our current product line includes x-ray and gamma-ray detectors with custom made electronics and software and portable stand alone radiation and chemical equipment. Our x-ray and gamma-ray detectors are being sold to research and industrial concerns for a variety of usages including quality control and laboratory equipment. Additionally, these products can be used as components in scientific research instrumentation. Our portable stand alone radiation and chemical equipment allows radioactive isotopes or chemicals to be identified by Law Enforcement, First Responders, Federal Authorities, Hospitals and Environmental Authorities.

For marketing purposes, we have divided our products into four categories.          The first two categories involve instrumentation that detects and analyzes radioactive material from any source, including legitimate uses such as the nuclear power and weapons programs and medical diagnoses and treatment, as well as the detection of the illicit transportation of radioactive materials. The third category is concerned with the detection and analysis of X-rays for non-destructive testing and scientific research. The final category is instrumentation for the detection and identification of low levels of potentially toxic chemicals.

Category 1: Portable Gamma-ray detector and radioactive isotope identifier.

The current product is termed the SAM Defender. This hand-held instrument is a self-contained radiation detector, low-noise signal processor, and user interface. Our proprietary analysis software provides an intuitive color display suitable for both First Responders as well as more technically trained Health Physicists. This product and product versions are mainly used for large homeland security market applications, as well as for environmental, industrial and medical purposes. This product detects neutron and gamma radiation from over 80 isotopes.

Category 2: Laboratory Gamma-ray detectors and spectrometers:

PGTI is one of only four companies worldwide that manufactures High Purity Germanium Detectors and associated electronics and software for the most sensitive and accurate detection and analysis of radioactive samples in a laboratory environment. A typical application is the measurement of very low-levels of radioisotopes in soil, water or geological samples to determine the efficacy of radioactive waste cleanup or to conduct geophysics research. This



type of lab-based instrumentation is also used by the nuclear power industry for on-line monitoring. Customers include Federal and State governmental authorities, research laboratories and large corporations.

Category 3: X-ray detectors and spectrometers.

The non-destructive testing of materials by X-ray analysis utilizes a range of detector products from small hand-held units to large systems installed on a Synchrotron and used for the fundamental research of materials. PGTI supplies both detector components as an OEM supplier and also complete X-ray spectrometer systems. Applications include quality control (e.g., for Silicon wafer fabrication), fundamental material research (e.g., on a synchrotron), and industrial control and monitoring, (e.g., engine wear analysis).

Category 4: Chemical Analyzers.

The two portable chemical analyzer products offered by PGTI utilize Gas Chromatography (GC) and Ion Mobility Spectrometry (IMS), respectively. The former is a highly sensitive instrument that can analyze a large range of gases at very low concentrations and is well suited to monitoring toxicity levels in industrial applications as well as for First Responders to emergencies involving toxic materials. The IMS unit is a small hand-held device designed for the rapid detection of a limited number of chemicals and offers the advantage of speed and simplicity but with less sensitivity and flexibility than the GC unit. Chemical Analyzers are being offered to the homeland security market, as well as for environmental and industrial purposes.

Discussion and Analysis of Financial Condition and Results of Operations

Critical Accounting Policies and Estimates

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the unaudited Condensed Consolidated Financial Statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from these estimates under different assumptions or conditions. The Company believes there have been no significant changes since the year ended December 31, 2006.

The Companys accounting policies are more fully described in Note 1 of the 2006 audited consolidated financial statements. As discussed in Note 1 of those financial statements, the preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about the future events that affect the amounts reported in the consolidated financial statements and the accompanying notes. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual differences could differ from these estimates under different assumptions or conditions. The Company believes that the following addresses the Companys most critical accounting policies.

We recognize revenue in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 104, Revenue Recognition (SAB 104). Under SAB 104, revenue is recognized at the point of passage to the customer of title and risk of loss, when there is persuasive evidence of an arrangement, the sales price is determinable, and collection of the resulting receivable is reasonably assured. We recognize revenue as services are provided with specific long lead time orders.

Our allowance for doubtful accounts is maintained to provide for losses arising from customers inability to make required payments. If there is deterioration of our customers credit worthiness and/or there is an increase in the length of time that the receivables are past due greater than the historical assumptions used, additional allowances may be required. For example, at September 30, 2007, every additional one percent of our accounts receivable that becomes uncollectible would reduce our operating income by approximately $5,239.

We account for income taxes in accordance with Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes (SFAS No. 109). Under SFAS No. 109, deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax



assets will be reflected on the balance sheet when it is determined that it is more likely than not that the asset will be realized. A valuation allowance has currently been recorded to reduce our deferred tax asset to $0.

Our Business Growth

For the three months ended September 30, 2007 our sales decreased $199,066 or 27% compared to the same quarter of 2006 due to lower sales in X-ray related product sales and service. Year to date as of September 30, 2007 our sales have increased $259,212 or 15%. Our nuclear sales have had the biggest sales volume of all product categories followed by our X-ray sales and portable units. Nuclear sales increased 50.9% compared to the same quarter in 2006. The  growth was because the company received and /or delivered several new nuclear orders during the three months ended September 30, 2007. We anticipate growth across our product line in 2007, as our existing and new products reach the different segments of homeland security and material research market.

Results of Operations

Although our sales decreased on a year to year comparable for the three months ended September 30, 2006 and 2007, , this decrease was mainly because no new major X-ray systems sales during this three month period.  Total sales on a year-to-date basis from 2006 to 2007 have increased as we started the sales of several new products. For the three and nine months ended September 30, 2007, our sales were $535,344 and $2,038,503 respectively. With decreased sales for three months ended September 30,2007, our cost of goods sold decreased to $289,677. Our cost of sales increased to $ 1,322,928 for the nine  months ended September 30, 2007. Overall, our cost of sales as a percentage of sales for the nine months increased approximately 7% over the same period in 2006. This was the result of higher general manufacturing costs in our operations due to lower yield in detector manufacturing. We intend to continue
to improve our detector yield in the manufacturing process with several new initiatives, which should reduce cost of goods sold. Also we are constantly working on reducing the  cost on the manufacturing components.

Our overall expenses increased over 2006, mainly due to some extra cost related to on-going public filings. Expenses increased from $343,592 for the three months and $1,082,714 for the nine months ended September 30, 2006 compared to $422,530 and $1,221,024  for the three months and  nine months ended  September 30, 2007, respectively.         Expenses increased as we expanded operations in an effort to staff anticipated product development and product launches as well as manufacturing them. Because of more focused R&D efforts, we were able to reduce our external R&D usage which decreased somewhat our research and development expenses. For the three and nine months ended September 30, 2007, research and development expenses decreased by $12,661 and $160,626, respectively. We anticipate research and development expenses to continue at the present level or
higher in the upcoming year. As a company that focuses on producing complex detection products and components, we will continue to have to advance the products to meet new customer and industry requirements which will require continued efforts in research and development.

We also anticipate general and administrative expenses to remain at present levels or higher in the future. General and administrative expenses increased from $136,395 for the three months ended September 30, 2006 to $221,500 for the three months ended September  30, 2007. This increase is due to some additional increases in general and administrative expenses as we now will be required to make quarterly and annual filings with the Securities and Exchange Commission.

Selling and marketing costs also increased somewhat from 2006 to 2007 as we began more direct selling efforts on our products. For the three months ended September 30, 2007, our selling and marketing costs were $81,347 and $268,844  for the nine months ended September 30, 2007. This was an increase of $4,365 and $120,304  for the three and nine months ended September  30, 2006. We continue to rely more on outside sales agents or distributors to sell our products in an effort to manage these expenses but as sales increase we would expect selling and marketing cost to increase. We are hopeful that relying on outside sales agents will allow us to not have to incur additional upfront and fixed costs to sell our products. By maintaining the existing sales staff at present levels and relying more on outside sales agents, we hope to maintain a lower fixed cost of selling and marketing and to tie the outside sales
agents to a fixed percent of sales. We hope this sales structure will allow us to increase sales and at the same time be able to tie sales and marketing to more of a percentage of sales instead of a fixed cost structure as we now have.



For the three months and nine months ended September 30, 2007, we had a net loss of $177,162 and $513,018, respectively, as our expenses associated with the launch of the new product and to position Princeton for future sales and manufacturing increased expenses faster than sales.            Since we are in the initial phases of product sales for some new products, we are hopeful sales will continue to increase and be able to cover the increased expenses we incurred in preparation of the launch of our products. As the products were still in their early stage of production, we had a higher cost of goods sold resulting from higher than normal manufacturing costs. We also continued to try and improve to eliminate problems in our manufacturing process on some products, especially in Gamma-Ray products, in order to reduce the cost of goods sold in the
longer term range. These quality and new product issues had an increased cost impact in the three months ended September 30, 2007.Seasonality and Cyclicality

In our business, we have experienced lower sales volume during the past years in the beginning of the first quarter as well as summer months in general. We believe this trend may continue in the future, as well.

Liquidity and Capital Resources

Historically, we have financed our working capital requirements through internally generated funds and sales of equity and debt securities. Since inception through December 31, 2006, we raised approximately $1.3 million from the sale of equity securities. As we continue to expand our operations, we anticipate seeking additional capital through the sale of equity securities. Our goal is to position Princeton to be able to raise larger amounts of equity capital through the public markets or through private investments. At this time we do not know the extent of the overall financing we will need in the future. Financing will depend on how well our products are received in the marketplace.

At September 30, 2007, we had working capital of $498,127. Our working capital was helped by capital infusion of approximately $765,000 in equity investments since September 2006. A component of our current liabilities as of September 30, 2007, was our accounts payable of $705,632. We feel we will be able to service ongoing payables with current revenue and existing capital. This will be dependent on our ability to continue to increase sales as our inventory has increased to $728,610 on September 30, 2007 from $549,382 on December 31, 2006.

Our cash position has been decreasing as we purchased inventory and used cash to cover ongoing expenses. At September 30, 2007, our cash balance was $93,316 with cash used by operations during the nine months being $637,017.

We anticipate losses to continue for the year but to be reduced as our sales begin to expand. However, it is our goal to increase marketing and sales which will require additional capital beyond any revenue anticipated.

In the future, we may issue additional debt or equity securities to satisfy our cash needs. Any debt incurred or issued may be secured or unsecured, at fixed or variable interest rates and may contain other terms and conditions that our board of directors deems prudent. Any sales of equity securities may be at or below existing market prices. We cannot assure you that we will be successful in generating sufficient capital to adequately fund our liquidity needs.

ITEM 3.
        CONTROLS AND PROCEDURES


a) Evaluationof Disclosure controls and procedures.

The Companys principal executive officers, including principal accounting officers have reviewed the disclosure controls and procedures (as defined in section 240.13a-149c and 240.15d-14c in place to assure the effectiveness of such controls and procedures. This review occurred within 90 days of this 10-QSB being filed. Based on this review, the principal executive officers and accounting officers believe Princetons disclosure controls and procedures are adequate.

b) Changesin Internal Controls.

There were no significant changes in Princetons internal controls, or other factors, that could significantly affect the Companys controls subsequent to the date of the evaluations performed by the executive officers of the Company. No deficiencies or material weaknesses were found that would require corrective action.



PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

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

In October 2007, Princeton completed the sale of shares of its common stock pursuant to a registration statement filed with the Securities and Exchange Commission, file no. 333-141482. Princeton raised a total of $112,550 through the sale of 281,375 shares of common stock to approximately 50 shareholders at an offering price of $0.40 per share. The offering was subsequently closed on October 19, 2007. The offering was for the sale of a minimum of 250,000 shares and a maximum of 750,000 shares. A total of $1,909 in direct expenses, exclusive of legal and accounting fees, of the offering were incurred resulting in net offering proceeds of $110,641. No commissions or other fees were paid to the officers and directors for the sale of the shares. Since the offering was closed, we have used approximately $21,588 of the proceeds for the purchase of inventory and payment of expenses and liabilities.This number is an estimate based on use of cash by Princeton.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)
        Exhibits.


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
        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


* Incorporated by reference from the Companys registration statement on Form SB-2 filed with the Commission, SEC file no. 333-141482.

(b)
        Reportson Form 8-K.


We filed two 8-Ks during the quarter ended September 30, 2007. We filed one 8-K on August 16, 2007, covering the departure of our accounting officer and one on September 19, 2007, on the departure of the president of our subsidiary.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Princeton Security Technologies, Inc.

[Registrant]

Dated: November 12, 2007
        By: /s/ Juhani Taskinen


Juhani Taskinen, President, Principal Executive Officer

Dated: November 12, 2007
        By: /s/  Trupti Mehta


Trupti Mehta, Chief Accounting Officer