SENSE TECHNOLOGIES INC - FORM 10-Q

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EXCEL - IDEA: XBRL DOCUMENT - SENSE TECHNOLOGIES INC	Financial_Report.xls
EX-31.1 - EX-31.1 - SENSE TECHNOLOGIES INC	ex31-1.htm
EX-32.1 - EX-32.1 - SENSE TECHNOLOGIES INC	ex32-1.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended August 31, 2014


¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From to

Commission File Number: 000-29990

SENSE TECHNOLOGIES INC.

(Exact name of registrant as specified in its charter)

British Columbia		90010141
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
2535 N. Carleton Avenue Grand Island, Nebraska		68803
(Address of principal executive offices)		(Zip Code)

(308) 381-1355

(Registrant’s telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

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. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ¨		Accelerated filer ¨
Non-accelerated filer ¨		Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

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

Class		Outstanding at November 17, 2014
Common Stock		118,393,448 shares

Table of Contents

TABLE OF CONTENTS

Sense Technologies Inc. Form 10-Q

PART I-FINANCIAL INFORMATION		1

ITEM 1.	FINANCIAL STATEMENTS	1
	BALANCE SHEETS AS OF AUGUST 31, 2014 (UNAUDITED) AND FEBRUARY 28, 2014	2
	STATEMENTS OF LOSSES FOR THE THREE AND SIX MONTHS ENDED AUGUST 31, 2014 AND 2013 (UNAUDITED)	3
	STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED AUGUST 31, 2014 AND 2013 (UNAUDITED)	4
	STATEMENT OF STOCKHOLDERS’ DEFICIENCY FOR THE SIX MONTHS ENDED AUGUST 31, 2014 (UNAUDITED) AND THE YEAR ENDED FEBRUARY 28, 2014	5
	NOTES TO UNAUDITED FINANCIAL STATEMENTS	6

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	16
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	18
ITEM 4T.	CONTROLS AND PROCEDURES	19

PART II-OTHER INFORMATION		20

ITEM 1.	LEGAL PROCEEDINGS	20
ITEM 1A.	RISK FACTORS	20
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	20
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	20
ITEM 4.	MINE SAFETY DISCLOSURES	20
ITEM 5.	OTHER INFORMATION	20
ITEM 6.	EXHIBITS	20

SIGNATURES		21

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

SENSE TECHNOLOGIES INC.

INTERIM FINANCIAL STATEMENTS

AUGUST 31, 2014

(Stated in US Dollars)

(Unaudited)

Page 1

Table of Contents

SENSE TECHNOLOGIES, INC.

BALANCE SHEETS

As of August 31, 2014 and February 28, 2014

(Stated in US Dollars)

	August 31			February 28
	2014			2014
	(Unaudited)

ASSETS
Current
Accounts Receivable	$	-		$	8,500
Prepaids		30,142			22,297
Total Current Assets		30,142			30,797
Deposit		800			800
Equipment – Net of accumulated depreciation of $138,829 and $134,952 at August 31, 2014 and February 28, 2014, respectively		3,878			7,755
Intangible assets		51			51
Total Assets	$	34,871		$	39,403

LIABILITIES
Current
Bank overdraft	$	50,448		$	14,022
Accounts payable		548,969			564,291
Accounts payable-related party		35,884			35,884
Accrued expenses		1,213,867			1,162,273
Accrued expenses-related party		70,811			70,811
Royalty payable – related party		480,000			480,000
Notes payable, current portion		273,851			551,954
Notes payable, current portion – default		587,795			263,000
Notes payable – related party		97,664			108,877
Notes payable-related party - default		439,590			439,590
Advances payable – related entity		-			103,521
Dividends payable		376,894			361,098
Convertible promissory notes payable - default		584,447			584,447
Total Current Liabilities		4,760,220			4,739,768

STOCKHOLDERS' DEFICIENCY

Class A preferred shares, without par value, redeemable at $1 per share 20,000,000 shares authorized, 315,914 shares issued at August 31, 2014 (February 28, 2014: 315,914)		315,914			315,914
Common stock, without par value 150,000,000 shares authorized, 118,393,448 shares issued at August 31, 2014 (February 28, 2014: 109,893,448)		15,323,392			15,068,392
Common stock payable		184,889			184,889
Deficit		(20,549,544	)		(20,269,560	)
Total Stockholders’ Deficiency		(4,725,349	)		(4,700,365	)
Total Liabilities and Stockholders’ Deficiency	$	34,871		$	39,403

SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS

Page 2

Table of Contents

SENSE TECHNOLOGIES INC.

INTERIM STATEMENTS OF LOSS

For the three and six months ended August 31, 2014 and 2013

(Stated in US Dollars)

(Unaudited)

	Three months ended						Six months ended
	August 31,						August 31,
	2014			2013			2014			2013

Sales	$	20,264		$	376,690		$	75,300		$	528,914
Direct costs		78,113			313,391			125,970			562,505

Gross profit (loss)		(57,849	)		63,299			(50,670	)		(33,591	)

Operating Expenses
Consulting fees		22,500			10,500			35,500			21,000
Contract labor		3,000			3,000			6,000			6,000
Depreciation		1,938			2,359			3,877			4,718
Filing fees		5,610			5,910			5,810			7,776
Insurance		9,102			7,594			17,619			15,210
Bank charges		547			482			905			937
Legal and accounting		15,333			20,300			21,333			29,136
Office and miscellaneous		9,968			10,734			14,108			15,880
Rent		4,028			3,718			7,437			8,056
Tax penalties		5,993			-			5,993			-
Telephone and utilities		88			107			462			283
Transfer agent fees		890			405			3,874			795
Travel and automotive		119			1,069			4,736			13,961
		79,116			66,178			127,654			123,752
Net operating loss		(136,965	)		(2,879	)		(178,324	)		(157,343	)

Other income and (expense)
Interest expense		41,591			63,298			85,864			109,351

Net loss		(178,556	)		(66,177	)		(264,188	)		(266,694	)

Preferred dividends, paid or accrued		7,898			7,898			15,796			15,796

Net loss attributable to common stockholders	$	(186,454	)	$	(74,075	)	$	(279,984	)	$	(282,490	)

Basic and diluted loss per share	$	0.00		$	0.00		$	0.00		$	0.00

Weighted average number of shares outstanding		116,545,624			102,768,448			113,219,537			102,768,448

SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS

Page 3

Table of Contents

SENSE TECHNOLOGIES, INC.

STATEMENTS OF CASH FLOWS

For the six months ended August 31, 2014 and 2013

(Stated in US Dollars)

(Unaudited)

	2014			2013
Operating Activities
Net loss for the period	$	(264,188	)	$	(266,694	)
Adjustments to reconcile net loss to net cash used in Operating activities:
Depreciation		3,877			4,718
Amortization of debt discount		-			17,374
Changes in non-cash working capital balances related to operations:
Accounts Receivable		8,500			3,050
Prepaids		(7,845	)		(6,986	)
Deferred revenue		-			(157,500	)
Accounts payable		21,104			165,069
Accrued expenses		51,594			119,711
Advances payable		(103,521	)		4,025
Net cash used in operating activities		(290,479	)		(117,233	)
Financing Activities
Borrowing on notes payable		168,486			179,998
Repayment on notes payable		(133,007	)		(43,697	)
Proceeds from common stock issued for cash		255,000			-
Net cash provided (used) by financing activities		290,479			136,301

Increase (decrease) in cash during the period		-			19,068

Cash, beginning of period		-			69,022

Cash, end of period	$	-		$	88,090

Supplemental Disclosures of Cash Flow Information:

Cash Paid for Interest	$	13,389		$	20,816
Accrual of Preferred Stock Dividend	$	15,796		$	15,796

SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS

Page 4

Table of Contents

SENSE TECHNOLOGIES, INC.

STATEMENT OF STOCKHOLDERS’ DEFICIENCY

As of the period ended August 31, 2014

(Stated in US Dollars)

	Common Stock				Preferred Stock				Common
	Issued				Issued				Stock			Accumulated
	Shares		Amount		Shares		Amount		Payable			Deficit			Total

Balance, February 28, 2013		102,768,448	$	14,868,018		315,914	$	315,914	$	154,889		$	(19,484,755	)	$	(4,145,934	)
Common stock issued for cash		4,900,000		147,000		-		-		-			-			147,000
Common stock issued for subscription		1,200,000		36,000		-		-		(36,000	)		-			-
Common stock issued as inducement		1,025,000		17,374		-		-		-			-			17,374
Common shares subscribed		-		-		-		-		66,000			-			66,000
Dividends		-		-		-		-		-			(31,591	)		(31,591	)
Net income (loss) for the period		-		-		-		-		-			(753,214	)		(753,214	)
Balance, February 28, 2014		109,893,448		15,068,392		315,914		315,914		184,889			(20,269,560	)		(4,700,365	)
Common stock issued for cash		6,500,000		195,000		-		-		-			-			195,000
Common stock issued for subscription		2,000,000		60,000		-		-		(60,000	)		-			-
Common shares subscribed		-		-		-		-		60,000			-			60,000
Dividends		-		-		-		-		-			(15,796	)		(15,796	)
Net income (loss) for the period		-		-		-		-		-			(264,188	)		(264,188	)
Balance, August 31, 2014 (unaudited)		118,393,448	$	15,323,392		315,914	$	315,914	$	184,889		$	(20,549,544	)	$	(4,725,349	)

SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS

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SENSE TECHNOLOGIES, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING

These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America on a going concern basis, which assumes that the Company will continue to realize its assets and discharge its obligations and commitments in the normal course of operations. Realization values August be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern.

While the information presented in the accompanying six months to August 31, 2014 financial statements is unaudited, it includes all adjustments which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim period presented in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. It is suggested that these interim unaudited financial statements be read in conjunction with the Company’s audited financial statements for the year ended February 28, 2014.

Reclassification

Certain amounts reported in the prior period financial statements have been reclassified to the current period presentation.

Recently Adopted and Recently Enacted Accounting Pronouncements

In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The new guidance requires that share-based compensation that require a specific performance target to be achieved in order for employees to become eligible to vest in the awards and that could be achieved after an employee completes the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation costs should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. This new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015. Early adoption is permitted. Entities August apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a material impact on our financial position or results of operations.

In June 2014, the FASB issued ASU No. 2014-10: Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation , to improve financial reporting by reducing the cost and complexity associated with the incremental reporting requirements of development stage entities. The amendments in this update remove all incremental financial reporting requirements from U.S. GAAP for development stage entities, thereby improving financial reporting by eliminating the cost and complexity associated with providing that information. The amendments in this Update also eliminate an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk. The amendments to eliminate that exception simplify U.S. GAAP by reducing avoidable complexity in existing accounting literature and improve the relevance of information provided to financial statement users by requiring the application of the same consolidation guidance by all reporting entities. The elimination of the exception August change the consolidation analysis, consolidation decision, and disclosure requirements for a reporting entity that has an interest in an entity in the development stage. The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements of Topic 915 should be applied retrospectively except for the clarification to Topic 275, which shall be applied prospectively. For public companies, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. Early adoption is permitted. The adoption of ASU 2014-10 is not expected to have a material impact on our financial position or results of operations.

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In July 2013, FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." The provisions of ASU No. 2013-11 require an entity to present an unrecognized tax benefit, or portion thereof, in the statement of financial position as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward, with certain exceptions related to availability. ASU No. 2013-11 is effective for interim and annual reporting periods beginning after December 15, 2013. The adoption of ASU No. 2013-11 is not expected to have a material impact on the Company's Consolidated Financial Statements.

In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in the ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. The new amendments will require an organization to:

Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period; and

Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense.

The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15, 2012, for public companies. Early adoption is permitted. The adoption of ASU No. 2013-02 is not expected to have a material impact on our financial position or results of operations.

In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the Board determined that it could make them more operable and cost effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under IFRSs. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on, or after January 1, 2013. The adoption of ASU 2013-01 is not expected to have a material impact on our financial position or results of operations.

NOTE 2 – GOING CONCERN

At August 31, 2014, the Company had not yet achieved profitable operations, had an accumulated deficit of $20,549,544 (February 28, 2014 - $20,269,560) since its inception and incurred a net loss of $264,188 (2013 - $ 266,694) for the six months ended August 31, 2014 and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers obtaining additional funds by equity financing and/or from related party. Management expects the Company’s cash requirement over the twelve-month period ended February 28, 2015 to be $300,000. While the Company is expending its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds for operations.

NOTE 3 – PREPAID EXPENSES

As of August 31, 2014, included in prepaid expenses is $30,142 (February 28, 2014: $22,297) for an insurance premium for the directors of the Company financed through Flatiron Capital. Insurance policy is from August 23, 2014 to August 23, 2015.

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NOTE 4 – EQUIPMENT

The following is a summary of this category, including estimated useful lives of the assets:

	August 31, 2014			February 28, 2014
Computer Equipment (5 yrs)		38,297			38,297
Furniture and Fixtures (7 yrs)		11,217			11,217
Testing Equipment (5 yrs)		27,137			27,137
Product Molds (7 yrs)		66,056			66,056
Subtotal		142,707			142,707
Less: Accumulated Depreciation		(138,829	)		(134,952	)
Total	$	3,878		$	7,755

NOTE 5 – INTANGIBLES

Intangible assets are comprised as follows:

	August 31, 2014		February 28, 2014
Guardian Alert License	$	50	$	50
Scope Out Mirror License		1		1
Net carrying cost	$	51	$	51

Guardian Alert License

By an Assignment Agreement dated April 30, 1992 and amendments thereto dated August 27, 1992, July 14, 1992, April 5, 1993, August 13, 1993, March 10, 1997, August 29, 1997 and February 25, 1999 the Company has been assigned the right, title, interest and obligations in a License Agreement to manufacture, market and distribute a microwave radar collision avoidance device for motor vehicles. Pursuant to this license, the Company is required to make royalty payments to the licensor as follows: a) $6.00(US) per unit on the first one million units sold; b) thereafter, the greater of $4.00(US) per unit sold or 6% of the wholesale selling price on units sold; and c) 50% of any fees paid to Sense in consideration for tooling, redesign, technical or aesthetic development or, should the licensors receive a similar fee, the licensors will pay 50% to Sense.

At August 31, 2014, the royalty payable - related party to the Guardian Alert License was $480,000 (2013: $480,000). We intend to repay these payables upon successful completion of our business plan and raising of capital via debt or equity instruments.

In order to retain the exclusive right to manufacture market and distribute the Guardian Alert, the Company had been required, upon being assigned the license, to manufacture and sell various minimum numbers of units by certain milestone dates. As a result of not being able to meet the minimum milestone requirements under the license agreement, during the year ended February 28, 2004, the Company determined that it did not wish to retain the exclusive right to manufacture, market and distribute the Guardian Alert unit and, with agreement of the licensor, ceased accruing the minimum royalty due to the licensor. Any product sales subsequent to this date are considered to be part of the minimum royalty until such time that amounts exceed the minimum royalty accrued.

During the year ended February 28, 2005, based on an assessment of recoverability that took into consideration a history of operating losses and a forecast that demonstrated continuing losses associated with the use of the Guardian Alert, the Company wrote-down the license rights to a nominal value of $50.

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Scope Out Mirror License

During the year ended February 28, 2005, the Company acquired a license with a unlimited life to manufacture, sell, deliver and install the Lateral-View Mirror (“Scope Out Mirror”). As consideration, the Company paid a license fee of $150,000.

During the year ended February 28, 2007, the Company determined the license was impaired and accordingly, wrote it down to a nominal value of $1.

Pursuant to the ScopeOut® Mirror License agreement, the Company is obligated to pay a royalty of 10% of the wholesale price for each ScopeOut® Mirror sold which, in any event, shall not be less than $2.00 per unit.

In order to retain the exclusive right to manufacture, sell, deliver and install the ScopeOut® Mirror, the Company is required to pay the royalty due on the following minimum number of units sold:

i) 30,000 units per year for the years ended September 23, 2005 and 2006;

ii) 60,000 units for the year ended September 23, 2007; and

iii) 100,000 units per year in the years ended September 23, 2008 and thereafter.

During the quarter ended August 31, 2014, the Company accrued $nil (2013: $nil) in respect of the royalty owed in respect of the ScopeOut® Mirror License agreement. Under the terms and conditions of the license agreement, the Company is obligated to pay interest on the outstanding royalty payable to the extent that the minimum royalties due under the agreement have not been paid and is calculated at a rate of 8% per annum. As of August 31, 2014, the Company has accrued $59,929 as interest payable. The Company had been unable to make this payment timely, causing the license to revert to non-exclusive.

During 2010, the Company re-negotiated the exclusive license agreement with the Scope Out® inventor. All prior minimum royalties were eliminated, and accordingly, the Company recorded $602,907 additional capital for a related party write-off.

Prepaid royalties payable under the new license are $5,000 per month for twelve months commencing September 1, 2010. The new agreement also calls for a 5% royalty with a $.75 per unit maximum “minimum royalty” to retain exclusivity with the following volumes:

End of calendar year containing the second anniversary: 30,000 units

End of calendar year containing the third anniversary: 60,000 units

End of calendar year containing the fourth anniversary: 110,000 units

End of calendar year containing the fifth anniversary and thereafter: 125,000 units

No royalties are currently accrued as we have not yet reached the end of the calendar year containing the second anniversary.

Such “calendar year” commencing the minimum royalties to retain exclusivity is the first year within which an Original Equipment Manufacturer (OEM) and/or Tier 1 manufacturer sub-licenses the Scope Out® product.

For any sub-licenses of the product, royalties are shared as follows:

OEM/Tier 1 Supplier Sub Licensor: 65% Sense Technologies

35% Inventor

Any other Sub-Licensor: 50% Sense Technologies

50% Inventor

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The following table presents the changes in the accrued royalties – related party balance from August 31, 2014 to February 28, 2014:

Guardian Alert	August 31, 2014		February 28, 2014
Beginning balance		480,000		480,000
Accrued		-		-
Paid		-		-
Total Guardian Alert		480,000		480,000
Scope Out
Beginning balance		-		-
Accrued		-		-
		-		-
Total Accrued Royalties		480,000		480,000

NOTE 6 – ACCRUED EXPENSES/ACCRUED EXPENSES – RELATED PARTY

Other liabilities and accrued expenses consisted of the following:

	August 31,		February 28,
	2014		2014
Bank overdraft	$	50,448	$	14,022
Accounts payable		548,968		564,291
Accounts payable – related party		35,884		35,884
Accrued royalties payable – Guardian Alert		480,000		480,000
Advances Payable		-		103,521

Detail of Accrued Expenses:
Accrued interest payable		950,187		893,035
Accrued non-resident withholding taxes, including accrued interest		179,381		173,388
Credit card		2,165		3,054
Commissions Payable		40,182		48,679
Accrued taxes payable		41,952		44,117
Total accrued expenses	$	1,213,867	$	1,162,273

Detail of Accrued Expense – Related party:
Accrued payroll – related party		53,694		53,694
Other accrued liabilities – related party		17,117		17,117
Total accrued expenses – related party	$	70,811	$	70,811

As of August 31, 2014, included in the trade payables is $33,495 (February 28, 2014: $33,495) and $2,389 (February 28, 2014: $2,389) owing to directors of the Company, an accounting firm in which a director of the Company is a partner and a company controlled by the Company’s President and a director with respect to unpaid fees, purchases and expenses, $480,000 (February 28, 2014: $480,000) owing to stockholders of the Company in respect of royalties payable and $53,694 (February 28, 2014: $53,694) owing to the former president of the Company in respect of unpaid wages.

At August 31, 2014, advances payable of $nil (February 28, 2014: $103,521) are due to a company controlled by a director of the Company.

The accounts payable and advances payable are unsecured, non-interest bearing and have no specific terms of repayment. Sense Technologies, Inc. plans to use the funds from sales, and if we are able to raise funds through equity issuances, to fund the payment of delinquent liabilities.

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NOTE 7 – ROYALTIES PAYABLE

Pursuant to the licenses with ScopeOut® license called for $150,000 to be paid over two years (paid) along with a royalty of 10% of wholesale price for each ScopeOut® unit sold, but not less than $2.00 per unit. In order to maintain the exclusive license for the ScopeOut® products, in accordance with the license agreement with Palowmar Industries, LLC, we are required to pay royalties to the licensor based on the following minimum quantities of units sold:

30,000 units per year beginning in years 1-2

60,000 units per year beginning in years 3-4

100,000 units per year beginning in years 5 and above.

End of calendar year containing the second anniversary: 30,000 units

End of calendar year containing the third anniversary: 60,000 units

End of calendar year containing the fourth anniversary: 110,000 units

End of calendar year containing the fifth anniversary and thereafter: 125,000 units

No royalties are currently accrued as we have not yet reached the end of the calendar year containing the second anniversary.

For any sub-licenses of the product, royalties are shared as follows:

OEM/Tier 1 Supplier Sub Licensor: 65% Sense Technologies

35% Inventor

Any other Sub-Licensor: 50% Sense Technologies

50% Inventor

The current royalties accrued for Scope Out royalties are $nil as of August 31, 2014 and February 28, 2014.

Pursuant to the Guardian Alert licenses, we are required to make royalty payments to the licensors and meet sales targets as follows:

$6.00(US) per unit on the first one million units sold;

thereafter, the greater of $4.00(US) per unit sold or 6% of the wholesale selling price on units sold; and

50% of any fees paid to Sense in consideration for tooling, redesign, technical or aesthetic development or, should the licensors receive a similar fee, the licensors will pay 50% to Sense.

In order to retain the exclusive right to this license we incurred minimum royalty fees. Because we were unable to pay these fees, we accrued the royalties as a payable. Royalties accruals were ceased in 2004 and rights of exclusivity were forfeited. Royalties payable to Guardian Alert are $480,000 and $480,000 as of August 31, 2014 and February 28, 2014, respectively.

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NOTE 8 – NOTES PAYABLE, CONVERTIBLE NOTES PAYABLE, AND NOTES PAYABLE – RELATED PARTY

	August 31,		February 28,
	2014		2014
Promissory notes payable, unsecured, bearing interest at the rate of 12% per annum with repayment terms between August 2012 and July, 2012. In default.	$	243,000	$	243,000
Promissory notes payable to related party, unsecured, bearing interest at the rate of 12% per annum with repayment due December 15, 2012. In default.		439,590		439,590
Promissory notes payable, unsecured, bearing interest at the rate of 12% per annum with repayment due January 12, 2012. In default.		10,000		10,000
Promissory notes payable, unsecured, bearing interest at the rate of 12% per annum with repayment due March 30, 2012. In default.		10,000		10,000
Finance agreement on directors and officers’ liability policy secured by the unearned insurance premium, bearing interest at 7.75%, maturing June 23, 2015. This agreement is repayable in monthly principal and interest payments of $2,174.		19,412		7,312
Finance agreement on directors and officers liability policy, bearing interest at 7.75% per annum, no maturity date.		2,439		8,508
Promissory note payable, unsecured, bearing interest at the rate of 5.25% per annum, in default.		107,500		100,000
Promissory note payable, unsecured, bearing interest at the rate of 12.0% per annum, no maturity date.		100,000		100,000
Promissory note payable, unsecured, bearing interest at the rate of 6% per annum, maturing June 1, 2014. In default.		92,295		99,134
Promissory note payable, unsecured, bearing interest at the rate of 6% per annum, maturing January 31, 2014.		-		100,000
Promissory note payable, unsecured, bearing interest at the rate of 7% per annum, maturing October 16, 2013. In default.		50,000		50,000
Promissory note payable, unsecured, bearing interest at the rate of 7% per annum, maturing August 19, 2014. In default.		75,000		75,000
Promissory note payable, personally guaranteed by a director of the Company, bearing interest at 4.0% per annum and maturing August 27, 2018.		97,664		108,877
Promissory note payable, unsecured, bearing interest at the rate of 7% per annum, maturing July 20, 2014. In default.		10,000		10,000
Promissory note payable, no stated interest or maturity date		2,000		2,000
Promissory note payable, unsecured, bearing interest at the rate of 5.5% per annum, maturing July 1, 2015.		50,000		-
Promissory note payable, unsecured, bearing interest at the rate of 5.5% per annum, maturing August 13, 2015.		40,000		-
Promissory note payable, unsecured, bearing interest at the rate of 5.5% per annum, maturing August 13, 2015.		50,000		-
		1,398,900		1,363,421

The Company is in arrears with respect to eight of the above notes payable totaling $1,027,385.

Convertible notes payable:	August 31, 2014		February 29, 2014
Series B secured promissory notes payable, secured by a charge over the Company’s inventory, bearing interest at 10% per annum and are payable on demand, along with accrued interest thereon, on or after August 30, 2005. These notes plus accrued interest August be redeemed at any time after August 30, 2005. These notes August be converted into common shares of the Company at any time prior to demand for payment at the rate of one common share for each $0.29 of principal and interest owed. As of February 28, 2014 and February 28, 2013, these notes were in default.	$	534,447	$	534,447

Unsecured promissory notes bearing interest at 10% per annum. These notes plus accrued interest are convertible into common shares of the Company at the rate of one common share for each $5.40 of principal and interest owed. These notes have matured and the holders thereof have received default judgments against the Company.		50,000		50,000
	$	584,447	$	584,447

The Company is in arrears with respect to nine convertible notes payable totaling $584,447.

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Future minimum note payments as of August 31, 2014 are as follows:

Years Ending February 28,
2015	$	1,983,347
2016		-
Thereafter		-

NOTE 9 – PREFERRED STOCK

The Class A preferred shares entitle the holders thereof to cumulative dividends of $0.10 per share annually and the right to convert the preferred shares into common shares at the rate of $0.29 per share. The shares were redeemable at the option of the Company at any time after August 30, 2005 at the redemption price of $1.00 per share plus payment of unpaid dividends.

Dividends on preferred shares are payable annually on July 31 of each year. During the six months ended August 31, 2014, the Company accrued dividends payable of $15,796 (February 28, 2014: $31,591). Dividends are currently accruing and total $376,894.

NOTE 10 – COMMON STOCK

a) Common stock issued for cash

During the six months ended August 31, 2014, the Company issued 8,500,000 shares of common stock $255,000.

During the year ended February 28, 2014, the Company issued 4,900,000 shares of common stock for cash proceeds of $147,000.

The Company issued promissory notes with stock granted as an incentive. The stock was valued with relative fair value of common stock compared to fair market value of debt, common stock valued with closing price on date of agreement at $0.02. $17,374 recorded as a debt discount. As the debt was due on demand, the discount was fully expensed in the second quarter ended August 31, 2013. The Company issued 1,025,000 shares during the quarter ended November 30, 2013 for this inducement.

The Company issued 1,200,000 shares of common stock for cash proceeds of $36,000 which was received in prior years and record as Common Stock Payable.

b) Common stock for services

During the year ended February 29, 2008, the Company granted an officer and a director of the Company to the right to receive 2,500,000 common shares for past services provided. The fair value of each common share was $0.08 on the grant date. The shares, fully vested and non-forfeitable on the grant date, were issued in 2009. This balance is presented as Common Stock as of February 28, 2010. Further, in connection with a consulting services agreement, the Company also committed to issue 1,111,110 common shares with fair value of $88,889, being $0.08 per share based on the quoted market price of the Company’s common shares. This balance is presented as Common Stock Payable as of August 31, 2014 and February 28, 2014.

c) Options

Stock-based Compensation Plan

The Company has adopted a Stock Option Plan (‘the plan”) in which the Compensation Committee of the Board of Directors makes a determination to whom options should be granted and at what price and their terms of vesting.

The Company has elected to use the Black-Scholes option pricing model to determine the fair value of stock options granted. For employees, the compensation expense is amortized on a straight-line basis over the requisite service period which approximates the vesting period. Compensation expense for stock options granted to non-employees is amortized over the contract services period or, if none exists, from the date of grant until the options vest. Compensation associated with unvested options granted to non-employees is re-measured on each balance sheet date using the Black-Scholes option pricing model.

The expected volatility of options granted has been determined using the historical stock price. The Company uses historical data to estimate option exercise, forfeiture and employee termination within the valuation model. For non-employees, the expected term of the options approximates the full term of the options. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected term of the stock options. The Company has not paid and does not anticipate paying dividends on its common stock; therefore, the expected dividend yield is assumed to be zero. Based on the best estimate, management applied the estimated forfeiture rate of Nil in determining the expense recorded in the accompanying Statement of Loss.

The Company has granted directors common share purchase options. These options were granted with an exercise price equal to the market price of the Company’s stock on the date of the grant.

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	August 31, 2014
	Options		Weighted Average Exercise Price
Outstanding and exercisable at beginning of the year		3,000,000	$	0.04
Issued during the year		-		-
Outstanding and exercisable, August 31, 2014		3,000,000	$	0.04

	February 28, 2014
	Options			Weighted Average Exercise Price
Outstanding and exercisable at beginning of the year		3,000,000		$	0.04
Expired during the year		(1,000,000	)		(0.05	)
Issued during the year		1,000,000			0.03
Outstanding and exercisable, February 28, 2014		3,000,000		$	0.04

At August 31, 2014, the following director common share purchase options were outstanding entitling the holders thereof the right to purchase one common share for each share purchase option held:

		Exercise
Number		Price		Expiry Date

	3,000,000	$	0.03	December 31, 2014

d) Warrants

As of August 31, 2014 and February 28, 2014, the Company had no outstanding warrants.

NOTE 11 – RELATED PARTY TRANSACTIONS

The Company incurred the following items with directors and companies with common directors and shareholders:

	August 31,
	2014		2013
Interest expense	$	26,375	$	25,550

As of August 31, 2014, included in accounts payable is $33,495 (February 28, 2014: $33,495) owing to an accounting firm in which a director of the Company is a partner and $2,389 (February 28, 2014: $2,389) to a shareholder with respect to unpaid fees and interest on promissory notes, $480,000 (February 28, 2014: $480,000) owing to shareholders of the Company in respect of royalties payable with no interest accruing, and $53,694 (February 28, 2014: $53,694) owing to the former president of the Company in respect of unpaid wages.

As of August 31, 2014, included in advances payable is $nil (February 28, 2014: $103,521) owed to a company controlled by a director.

As of August 31, 2014, promissory notes payable of $439,590 (February 28, 2014: $439,590 is due to a profit-sharing and retirement plan administered by a director of the Company. Terms are:

Date Due:	Amount
December, 2012	$	216,372
December, 2012		168,218
April, 2012		15,000
August, 2012		12,500
November, 2013		27,500
Total	$	439,590

All bear interest at 12% per annum.

As of August 31, 2014, promissory note payable of $97,664 (February 28, 2014: $108,877) is personally guaranteed by a related party of the director of the company.

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NOTE 12 – CONCENTRATIONS AND CONTINGENCIES

Concentrations

Approximately 99% of the Company’s revenues are obtained from two (2) customers. The Company is exposed to significant sales and accounts receivable concentration. Sales to these customers are not made pursuant to a long term agreement. Customers are under no obligation to continue to purchase from the Company.

For the six months ended August 31, 2014, one (1) customer accounted for approximately 95% of revenue. For the six months ended August 31, 2013, there was two (2) customers that accounted for 85% of sales revenue.

Contingencies

During the normal course of business we from time to time be involved in litigation or other possible loss contingencies. As of August 31, 2014 and August 31, 2013 management is not aware of any possible contingencies that would warrant disclosure pursuant to SFAS 5.

Commitments

Our future minimum royalty payments on the ScopeOut® agreement consist of the following:

A 5% royalty with a $.75 per unit maximum “minimum royalty” to retain exclusivity with the following volumes:

End of calendar year containing the second anniversary:	30,000 units
End of calendar year containing the third anniversary:	60,000 units

NOTE 13 – SUBSEQUENT EVENTS

Management has evaluated subsequent events through November 17, 2014, the date of which the financial statements were available to be issued.

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Management’s Discussion And Analysis

Sense Technologies Inc. Form 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with our Financial Statements and Notes thereto for the period ended August 31, 2014 and our Financial Statements and notes thereto for the period ended August 31, 2013.

1. Overview of Operations

Sense holds a non-exclusive license to manufacture, distribute, market and sublicense world-wide, a patented technology which is used to produce the Guardian Alert® backing awareness system for motor vehicles utilizing microwave radar technology. The Company assembles the product in Charlotte, NC. The company also holds a non-exclusive license to manufacture, distribute, market and sublicense world-wide, the ScopeOut® product, a patented system of specially-designed mirrors which are placed at specific points on vehicles to offer drivers a more complete view of the blind spots toward the rear of the vehicle. This product is manufactured in China through an outsourced vendor.

2. Results of Operations

For the three and six month period ended August 31, 2014 as compared to the three and six month period ended August 31, 2013.

	For the three months ended				For the six months ended
	August 31, 2014		August 31, 2013		August 31, 2014		August 31, 2013
Sales
Sales Guardian Alert		20,264		376,690		75,300		528,914
Sales Scope Out		-		-		-		-
		20,264		376,690		75,300		528,914

Sales for the six months ended August 31, 2014 decreased by 86% from $528,914 to $75,300 due to decreased demand for Guardian Alert. Revenue is recognized by management only upon receipt of an actual purchase order from a customer, and the related invoicing to the company or, in the absence of a purchase order (i.e., verbal order), the actual invoicing to the customer, when the products are shipped and collection is reasonably assured.

Sales for the three months ended August 31, 2014 decreased by 95% from 376,690 to 20,264 due to decreased demand from key customers.

We continued to market both products. While it is the company objective to grow sales, no assurance can be given that we will be successful in this manner and sustain comparable sales in future periods.

	For the three months ended				For the six months ended
	August 31, 2014		August 31, 2013		August 31, 2014		August 31, 2013
Direct Cost
Scope Out Direct Costs
Manufacturing expenses		-		-		-		-
Research and development		-		-		-		-
Commissions		-		-		-		-
Royalties - related party		15,000		15,000		30,000		30,000
Total Scope Out Direct Costs		15,000		15,000		30,000		30,000

Guardian Alert Direct Costs
Manufacturing expenses		38,823		233,101		50,080		429,525
Research and development		15,400		8,500		31,900		16,000
Commissions		8,890		56,790		13,990		86,980
Royalties		-		-		-		-
Total Guardian Alert Direct Costs		63,113		298,391		95,970		532,505
Total Direct Costs		78,113		313,391		125,970		562,505

Direct costs typically include the cost of raw materials necessary to make our products. It also includes the cost of shipping the products from manufacturing location to our warehouse. Direct costs also include costs in respect of obsolete inventory.

Direct costs related to Scope Out® were $15,000 and $15,000 for the three month periods ended August 31, 2014 and 2013, respectively.

Direct costs related to Scope Out® were $30,000 and $30,000 for the six month period ended August 31, 2014 and 2013, respectively.

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Direct costs related to Guardian Alert were $63,113 and $298,391 for the three month period ending August 31, 2014 and 2013, respectively. This change represents a decrease of 79%. Commission expenses were $8,890 and $56,790 for the three month period ended August 31, 2014 and 2013, respectively. Commission expense decreased 84% due to a decrease in commissioned sales. Manufacturing expenses were $38,823 and $233,101 for the three month period ended August 31, 2014 and 2013, respectively. Manufacturing expenses in Direct Costs for the Guardian Alert® for the three months ended in 2014 and 2013 represents assembly costs for the sales achieved for the same period.

Direct costs related to Guardian Alert were $95,970 and $532,505 for the six month period ending August 31, 2014 and 2013, respectively. This change represents a decrease of 82%. Commission expenses were $13,990 and $86,980 for the six month period ended August 31, 2014 and 2013, respectively. Commission expense decreased 84% due to a decrease in commissioned sales. Manufacturing expenses were $50,080 and $429,525 for the six month period ended August 31, 2014 and 2013, respectively. Manufacturing expenses in Direct Costs for the Guardian Alert® for the three months ended in 2014 and 2013 represents assembly costs for the sales achieved for the same period.

Selling, General, and Administrative

	For the three months ended				For the six months ended
	August 31, 2014		August 31, 2013		August 31, 2014		August 31, 2013
Consulting fees	$	22,500	$	10,500	$	35,500	$	21,000
Contract labor		3,000		3,000		6,000		6,000
Depreciation		1,938		2,359		3,877		4,718
Filing fees		5,610		5,910		5,810		7,776
Insurance		9,102		7,594		17,619		15,210
Bank charges		547		482		905		937
Legal and accounting		15,333		20,300		21,333		29,136
Office and miscellaneous		9,968		10,734		14,108		15,880
Rent		4,028		3,718		7,437		8,056
Tax penalties		5,993		-		5,993		-
Telephone and utilities		88		107		462		283
Transfer agent fees		890		405		3,874		795
Travel and automotive		119		1,069		4,736		13,961
Interest expense		41,591		63,298		85,864		109,351
		120,707		129,476		213,518		233,103

Sense Technologies, Inc. had selling, general and administrative expenses of $120,707 for the three month period ended August 31, 2014 compared to selling, general and administrative expenses of $129,476 for the three month period ended August 31, 2013, a decrease in selling, general and administrative expenses of 7% from the prior period.

General and administrative expenses of $213,518 for the six month period ended August 31, 2014 compared to selling, general and administrative expenses of $233,103 for the six month period ended August 31, 2013, a decrease in selling, general and administrative expenses of 8% from the prior period.

Consulting fees increased from $10,500 for the three month period ended August 31, 2013 to $22,500 for the three month period ended August 31, 2014. The increase was a result of consulting related to Guardian Alert product sales.

Consulting fees increased from $21,000 for the six month period ended August 31, 2013 to $35,500 for the six month period ended August 31, 2014. The increase was a result of consulting related to Guardian Alert product sales.

The Company determined that prior expenses for marketing and advertising costs related to the sales plan for ScopeOut® were not producing results. Management believed it was in the best interest of the company to discontinue these costs. The Company is concentrating on Guardian Alert® sales based on market interest, and in doing so as cost-efficiently as possible, the Company has replaced those costs with a “little-to-no cost” effort of asking existing fleet-customers to refer the Guardian Alert® products to other fleets. Additionally, the company is paying more in commissions, as previously stated, because of the efforts to incentivize the sales of the Guardian Alert® to fleets.

Legal and accounting fees decreased from $20,300 in the three month period ended August 31, 2013 to $15,333 for the three month period ended August 31, 2014.

Legal and accounting fees decreased from $29,136 in the six month period ended August 31, 2013 to $21,333 for the six month period ended August 31, 2014.

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Following summarizes the overall operations results for the six month period ended August 31:

							Increase			% Increase
	2014			2013			( Decrease)			(decrease)

Sales		75,300			528,914			(453,614	)		(85.76	)
Direct Costs		125,970			562,505			(436,535	)		(77.61	)
General and Administrative expenses		213,518			233,103			(19,585	)		(8.40	)
Net Loss		(264,188	)		(266,694	)		2,506			.94
Basic and Diluted Loss per share		(.00	)		(.00	)

We had a loss from operations of $264,188 for six month period ended August 31, 2014, compared to a loss from operations of $266,694 for the six month period ended August 31, 2013, a decrease in loss from operations of $2,506 from the prior year.

Liquidity and Capital Resources

Our cash position at August 31, 2014 was $nil as compared to $Nil at February 28, 2014. This was due to our use of cash in operating and investing activities and cash provided by financing activities as described below.

We have a working capital deficit of 4,730,078 and 4,708,971 as of August 31, 2014 and February 28, 2014, respectively. If we are unable to raise adequate working capital for fiscal 2015, we will be restricted in the implementation of our business plan. If this were to happen, the value of our securities would diminish and we August be forced to change our business plan for fiscal 2015, which would result in the value of our securities declining in value and/or becoming worthless. If we raise an adequate amount of working capital to implement our business plan, we anticipate incurring significant expenses relating to paying down our notes payable and royalties that are in arrears. Additionally we will incur net losses until a sufficient client base can be established, of which there can be no assurance.

Net cash used in operating activities

Net cash used in operating activities was $290,479 in 2014, compared to $117,233 in 2013. The increase in cash used in 2014 was largely due to the decrease in advances payable.

Net cash provided by financing activities

Net cash provided by financing activities was $290,479 in 2014 compared to net cash used of $136,301 in 2013.

In 2014, we received $255,000 through subscriptions to our common shares.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

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Item 4. Controls and Procedures.

Disclosure Controls and Procedures

The Company carried out an evaluation, under the supervision and with the participation of its management, including its chief executive officer (who is also acting in the capacity as the principal accounting officer), of the effectiveness of its disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based upon that evaluation, the Company’s principal executive officer and principal financial officer has concluded that, as of the end of the period covered in this report, the Company’s disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

The Company, including its principal executive officer and principal financial officer, does not expect that its disclosure controls and procedures or its internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. To address the material weaknesses, the Company performed additional analysis and other post-closing procedures in an effort to ensure its consolidated financial statements included in this quarterly report have been prepared in accordance with generally accepted accounting principles. Accordingly, the Company believes that the financial statements included in this report fairly present in all material respects the Company’s financial condition, results of operations and cash flows for the periods presented.

The Company’s internal conclusion related to its disclosure and procedural controls is due to the number and magnitude or changes to its draft 10Q recommended by the Company’s independent auditor.

The Company plans to continue working with competent outside professionals to help it with quarterly reporting and if its business plan is successful additional improvements in the Company’s accounting department will be made.

Changes in Internal Control over Financial Reporting

In addition, the Company with the participation of its chief executive officers have determined that no change in our internal control over financial reporting occurred during or subsequent to the quarter ended August 31, 2014 that has materially affected, or is (as that term is defined in Rules 13(a)-15(f) and 15(d)-15(f) of the Securities Exchange Act of 1934) reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II-OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 1A. Risk Factors.

There were no material changes in our risk factors from our Form 10-K for the year ended February 28, 2014.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

There were no unregistered sales of equity securities during the six months ended August 31, 2014.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

Sense Technologies has entered an agreement with a global company to market the Guardian Alert® under a registered trade name.

Item 6. Exhibits.

31.1	Certifications of Chief Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the U.S. Securities Exchange act of 1934
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 and Rule 13a-14(b) or Rule 15d-14(b) of the U.S. Securities Exchange Act of 1934
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

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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. In accordance with Section 13 or 15(d) of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	SENSE TECHNOLOGIES INC.


November 18, 2014	/s/ BRUCE E. SCHREINER
	Bruce E. Schreiner
	Chief Executive Officer, President, Director, Chief Financial Officer and Principal Accounting Officer

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SENSE TECHNOLOGIES INC - FORM 10-Q - November 18, 2014

Attached files

SENSE TECHNOLOGIES INC Reports