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 ~~November~~May 3031, ~~2015~~2016

¨☐ 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 March 25, 2016~~	Outstanding at August 24, 2016
Common Stock	~~139,876,784 shares~~	14,418,621 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 NOVEMBER 30, 2015 (UNAUDITED) AND FEBRUARY 28, 2015	2
	BALANCE SHEETS AS OF MAY 31, 2016 (UNAUDITED) AND FEBRUARY 29, 2016	2
	STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED NOVEMBER 30, 2015 AND 2014 (UNAUDITED)	3
	STATEMENTS OF LOSSES FOR THE THREE MONTHS ENDED MAY 31, 2016 AND 2015 (UNAUDITED)	3
	STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED NOVEMBER 30, 2015 AND 2014 (UNAUDITED)	4
	STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MAY 31, 2016 AND 2015 (UNAUDITED)	4
	STATEMENT OF STOCKHOLDERS’ DEFICIENCY FOR THE NINE MONTHS ENDED NOVEMBER 30, 2015 (UNAUDITED) AND THE YEAR ENDED FEBRUARY 28, 2015	5
	STATEMENT OF STOCKHOLDERS’ DEFICIT FOR THE THREE MONTHS ENDED MAY 31, 2016 (UNAUDITED) AND THE YEAR ENDED FEBRUARY 29, 2016	5
	NOTES TO UNAUDITED FINANCIAL STATEMENTS	6
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	15
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	17
ITEM 4.	CONTROLS AND PROCEDURES	18
ITEM 4T.	CONTROLS AND PROCEDURES	17
PART II-OTHER INFORMATION		1918
ITEM 1.	LEGAL PROCEEDINGS	1918
ITEM 1A.	RISK FACTORS	1918
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	1918
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	1918
ITEM 4.	MINE SAFETY DISCLOSURES	1918
ITEM 5.	OTHER INFORMATION	1918
ITEM 6.	EXHIBITS	1918
SIGNATURES		2019

Table of Contents

PART I – -FINANCIAL INFORMATION

Item 1. Financial Statements.

SENSE TECHNOLOGIES INC.

INTERIM FINANCIAL STATEMENTS

~~NOVEMBER~~May 3031, ~~2015~~2016

(Stated in US Dollars)

( Unaudited )

Table of Contents

SENSE TECHNOLOGIES, INC.

BALANCE SHEETS

As of May ~~November 30~~31, ~~2015~~2016 and February 2829, ~~2015~~2016

(Stated in US Dollars)

(Unaudited)

	May 31			February 29
	2016			2016
	(Unaudited)

ASSETS
Current
Cash in bank	$	-		$	1,298
Accounts receivable		15,750			36,675
Prepaids		17,295			12,970
Total Current Assets		33,045			50,943
Deposit		800			800
Total Assets	$	33,845		$	51,743

LIABILITIES
Current
Bank overdraft	$	16,294		$	-
Accounts payable		526,561			524,516
Accounts payable-related party		35,884			35,884
Accrued expenses		1,238,076			1,186,047
Accrued expenses-related party		70,811			70,811
Royalty payable – related party		480,000			480,000
Notes payable, current portion		1,191,842			1,190,006
Notes payable, current portion – default		168,184			168,184
Notes payable – related party		439,590			439,590
Advances payable		46,000			-
Advances payable – related party		38,658			60,158
Dividends payable		432,179			424,281
Convertible promissory notes payable - default		584,447			584,447
Total Current Liabilities		5,268,526			5,163,924
Long-Term Liabilities
Notes payable – related party		56,678			62,719
Total Long-Term Liabilities		56,678			62,719
Total Liabilities		5,325,204			5,226,643

STOCKHOLDERS’ DEFICIT

Class A preferred shares, without par value, redeemable at $1 per share 20,000,000 shares authorized, 315,914 shares issued at May 31, 2016 (February 29, 2016: 315,914)		315,914			315,914
Common stock, without par value 500,000,000 shares authorized, 14,418,621 shares issued at May 31, 2016 (February 29, 2016: 13,687,678)		16,111,402			15,914,794
Common stock payable		140,849			244,849
Accumulated Deficit		(21,859,524	)		(21,650,457	)
Total Stockholders’ Deficit		(5,291,359	)		(5,174,900	)
Total Liabilities and Stockholders’ Deficit	$	33,845		$	51,743

	November 30			February 28
	2015			2015
	(Unaudited)
ASSETS
Current
Accounts receivable	$	10,500		$	-
Prepaids		23,438			27,134
Total Current Assets		33,938			27,134
Deposit		800			800
Total Assets	$	34,738		$	27,934
LIABILITIES
Current
Bank overdraft	$	10,878		$	24,626
Accounts payable		527,152			558,574
Accounts payable-related party		35,884			35,884
Accrued expenses		1,392,690			1,281,394
Accrued expenses-related party		70,811			70,811
Royalty payable – related party		480,000			480,000
Notes payable, current portion		792,421			430,619
Notes payable, current portion – default		170,794			135,198
Notes payable – related party		439,590			439,590
Advances payable		16,500			-
Advances payable – related entity		-			76,100
Dividends payable		416,383			392,689
Convertible promissory notes payable - default		584,447			584,447
Total Current Liabilities		4,937,550			4,509,932
Long-Term Liabilities
Notes payable		-			298,500
Notes payable – related party		68,687			86,259
Total Long-Term Liabilities		68,687			384,759
Total Liabilities		5,006,237			4,894,691
STOCKHOLDERS' DEFICIENCY
Class A preferred shares, without par value, redeemable at $1 per share 20,000,000 shares authorized, 315,914 shares issued at November 30, 2015 (February 28, 2015: 315,914)		315,914			315,914
Common stock, without par value 500,000,000 shares authorized, 136,876,782 shares issued at November 30, 2015 (February 28, 2015: 127,043,448)		15,914,794			15,619,794
Common stock payable		185,849			244,889
Accumulated Deficit		(21,388,056	)		(21,047,354	)
Total Stockholders’ Deficiency		(4,971,499	)		(4,866,757	)
Total Liabilities and Stockholders’ Deficiency	$	34,738		$	27,934

SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS

Table of Contents

SENSE TECHNOLOGIES INC.

STATEMENTS OF OPERATIONS

For the three ~~and nine~~ months ended ~~November~~May 3031, ~~2015~~2016 and ~~2014~~2015

(Stated in US Dollars)

(Unaudited)

	Three months ended						Nine months ended
	For the three months ended
	November 30,						November 30,
	May 31,			May 31,
	2015			2014			2015			2014
	2016			2015
Sales	$	~~103~~49,~~995~~500		$	3556,~~944~~988		$	~~222,483~~		$	~~111,244~~
Direct costs		15,776			114,255			88,784			240,225
Direct Costs		30,436			39,650
Gross profit (loss)		88,219			(78,311	)		133,699			(128,981	)
Gross Profit		19,064			17,338
Operating Expenses
Advertising and promotion		4,050			-			6,797			-
Consulting fees		109,409			26,200
Consulting fees		66,185			74,500			133,185			110,000
Contract labor		3,000			3,000
Contract labor		3,000			3,000			9,000			9,000
Engineering cost		3,374			874
Depreciation		-			1,939			-			5,816
Filing fees		675			550
Engineering costs		-			-			874			-
Insurance		12,190			10,094
Filing fees		400			7,016			8,666			12,826
Bank charges		1,334			375
Insurance		10,666			9,213			30,904			26,832
Legal and accounting		8,250			20,188
Bank charges		6,415			651			7,581			1,556
Office and miscellaneous		1,016			1,885
Legal and accounting		2,075			7,199			38,901			28,532
Rent		3,520			3,810
Office and miscellaneous		4,105			6,061			8,669			20,169
Tax penalties		2,996			2,997
Public Relations		30,000			-			30,000			-
Telephone and utilities		192			216
Rent		2,860			3,759			10,161			11,196
Transfer agent fees		13,750			2,000
Tax penalties		2,997			1,000			8,990			6,993
Travel and automotive		141			688
Telephone and utilities		133			92			454			554
		159,847			72,877
Transfer agent fees		500			2,450			3,000			6,324
Net operating loss		(140,783	)		(55,539	)
Travel and automotive		2,950			1,928			3,638			6,664
Other Income and (Expenses)
		136,336			118,808			300,820			246,462
Interest Expense		(60,386	)		(56,717	)
Net operating loss		(48,117	)		(197,119	)		(167,121	)		(375,443	)
Net loss		(201,169	)		(112,256	)
Other income and (expense)
Preferred dividends, paid or accrued		7,898			7,898
Interest expense		(44,453	)		(55,562	)		(149,887	)		(141,426	)
Net loss attributable to common stockholders	$	(209,067	)	$	(120,154	)
Net loss		(92,570	)		(252,681	)		(317,008	)		(516,869	)
Basic and diluted loss per share	$	(0.01	)	$	(0.00	)
Preferred dividends, paid or accrued		7,898			7,898			23,694			23,694
Weighted average number of shares outstanding		14,303,950			12,798,910
Net loss attributable to common stockholders	$	(100,468	)	$	(260,579	)	$	(340,702	)	$	(540,563	)
Basic and diluted loss per share	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted average number of shares outstanding		135,336,489			118,393,450			131,776,781			114,931,632

SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS

Table of Contents

SENSE TECHNOLOGIES, INC.

STATEMENTS OF CASH FLOWS

For the ~~nine~~three months ended ~~November~~May 3031, ~~2015~~2016 and ~~2014~~2015

(Stated in US Dollars)

(Unaudited)

	2015			2014
	2016			2015
Operating Activities
Net loss for the period	$	(~~317~~201,~~008~~169	)	$	(~~516~~112,~~869~~256	)
Adjustments to reconcile net loss to net cash used in Operating activities:
Depreciation		-			5,816
Amortization of debt discount		-			960
Shares for services		30,000			-
Common shares issued for services		52,608
Amortization of debt discount		960			-
Changes in non-cash working capital balances related to operations:
Accounts Receivable		(10,500	)		8,500
Accounts receivable		20,925			-
Prepaids		3(4,~~696~~325	)		110,~~365~~095
Accounts payable		~~(45~~18,~~170~~339	)		~~(995~~1,500	)
Accrued expenses		~~111~~98,~~296~~029			9544,~~213~~798
Advances payable		(5921,~~600~~500	)		(883,~~070~~350	)
Net cash used in operating activities		(~~286~~37,~~326~~093	)		(~~495~~58,~~040~~253	)
Financing Activities
Borrowing on notes payable		~~187~~10,~~635~~950			~~283~~35,~~486~~000
Repayment on notes payable		(~~106~~15,~~309~~155	)		(~~163~~36,~~446~~747	)
Proceeds from common stock issued and payable for cash		~~205~~40,000			~~375~~60,000
Net cash provided by financing activities		286,326			495,040
Net cash provided (used) by financing activities		35,795			58,253
Increase (decrease) in cash during the period		-(1,298	)		-
Cash, beginning of period		-1,298			-
Cash, end of period	$	-		$	-
Supplemental Disclosures of Cash Flow Information:
Cash Paid for Interest	$	256,~~120~~405		$	216,~~167~~641
Accrual of Preferred Stock Dividend	$	23,694		$	23,694
Non-cash Investing and Financing Activities:
Stock Issued from Common Stock Payable	$	220,000		$	-
Accrual of Preferred Stock Dividend	$	7,898		$	7,898
Stock Payable for Debt Discount	$	960		$	-
Stock Issued from Common Stock Payable	$	119,000		$	120,000
Stock Issued for Inducement	$	-		$	960

SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS

Table of Contents

SENSE TECHNOLOGIES, INC.

STATEMENT OF STOCKHOLDERS’ ~~DEFICIENCY~~DEFICIT

AsFor of the ~~period~~three months ended ~~November~~May 3031, ~~2015~~2016

(Stated in US Dollars)

(Unaudited)

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

Balance, February 28, 2015		12,704,345		$	15,619,794		315,914	$	315,914	$	244,889		$	(21,047,354	)	$	(4,866,757	)
Common stock issued for cash		150,000			45,000		-		-		-			-			45,000
Common stock issued for subscription		733,333			220,000		-		-		(220,000	)		-			-
Common stock issued for services		100,000			30,000		-		-		-			-			30,000
Common shares subscribed		-			-		-		-		219,000			-			219,000
Common shares payable for debt discount		-			-		-		-		960			-			960
Dividends accrued		-			-		-		-		-			(31,591	)		(31,591	)
Net loss		-			-		-		-		-			(571,512	)		(571,512	)
Balance, February 29, 2016		13,687,678			15,914,794		315,914		315,914		244,849			(21,650,457	)		(5,174,900	)
Common stock issued for cash		83,333			25,000		-		-		-			-			25,000
Common stock issued for subscription		396,667			119,000		-		-		(119,000	)		-			-
Common shares issued for services		251,000			52,608		-		-		-			-			52,608
Common shares subscribed		-			-		-		-		15,000			-			15,000
Rounding shares issued		(57	)		-		-		-		-			-			-
Dividends accrued		-			-		-		-		-			(7,898	)		(7,898	)
Net loss		-			-		-		-		-			(201,169	)		(201,169	)
Balance, May 31, 2016 (unaudited)		14,418,621		$	16,111,402		315,914	$	315,914	$	140,849		$	(21,859,524	)	$	(5,291,359	)

	Common Stock				Preferred Stock				Common
	Issued				Issued				Stock			Accumulated
	Shares		Amount		Shares		Amount		Payable			Deficit			Total
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		15,000,000		450,000		-		-		-			-			450,000
Common stock issued for subscription		2,000,000		60,000		-		-		(60,000	)		-			-
Common stock issued for services		150,000		4,500		-		-		-			-			4,500
Common shares subscribed		-		-		-		-		120,000			-			120,000
Options issued to Directors		-		36,902		-		-		-			-			36,902
Dividends accrued		-		-		-		-		-			(31,591	)		(31,591	)
Net income (loss) for the period		-		-		-		-		-			(746,203	)		(746,203	)
Balance, February 28, 2015		127,043,448		15,619,794		315,914		315,914		244,889			(21,047,354	)		(4,866,757	)
Common stock issued for cash		1,500,000		45,000		-		-		-			-			45,000
Common stock issued for subscription		7,333,334		220,000		-		-		(220,000	)		-			-
Common stock issued for services		1,000,000		30,000		-		-		-			-			30,000
Common shares payable for debt discount		-		-		-		-		960			-			960
Common shares subscribed		-		-		-		-		160,000			-			160,000
Dividends accrued		-		-		-		-		-			(23,694	)		(23,694	)
Net income (loss) for the period		-		-		-		-		-			(317,008	)		(317,008	)
Balance, November 30, 2015 (unaudited)		136,876,782	$	15,914,794		315,914	$	315,914	$	185,849		$	(21,388,056	)	$	(4,971,499	)

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~~may 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 ~~nine~~three months to ~~November~~May 3031, ~~2015~~2016 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 2829, ~~2015~~2016.

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 September, 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805) (“ASU 2015-16”). Topic 805 requires that an acquirer retrospectively adjust provisional amounts recognized in a business combination, during the measurement period. To simplify the accounting for adjustments made to provisional amounts, the amendments in the Update require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for fiscal years beginning December 15, 2015. The adoption of ASU 2015-016 is not expected to have a material effect on the Company’s consolidated financial statements.

In August, 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). The amendment in this ASU defers the effective date of ASU No. 2014-09 for all entities for one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods with that reporting period.

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Interest–Imputation of Interest (Subtopic 835-30) (“ASU 2015-03”), which changes the presentation of debt issuance costs in financial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. It is effective for annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The new guidance will be applied retrospectively to each prior period presented. The Company is currently in the process of evaluating the impact of adoption of ASU 2015-03 on its balance sheets.

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On November 2014, The Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2014-16—Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). The amendments in this Update do not change the current criteria in GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. That is, an entity will continue to evaluate whether the economic characteristics and risks of the embedded derivative feature are clearly and closely related to those of the host contract, among other relevant criteria. The amendments clarify how current GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. The effects of initially adopting the amendments in this Update should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year for which the amendments are effective. Retrospective application is permitted to all relevant prior periods.

On November 2014, The Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2014-17—Business Combinations (Topic 805): Pushdown Accounting (a consensus of the FASB Emerging Issues Task Force). The amendments in this Update provide an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The amendments in this Update are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. However, if the financial statements for the period in which the most recent change-in-control event occurred already have been issued or made available to be issued, the application of this guidance would be a change in accounting principle.

On August 2014, The Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2014-15, Presentation of Financial Statements – Going Concerns (Subtopic 205-40): Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted.

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~~may 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.

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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~~may 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.

NOTE 2 – GOING CONCERN

At ~~November~~May 3031, ~~2015~~2016, the Company had not yet achieved profitable operations, had an accumulated deficit of $21,~~388~~859,~~056~~524 (February 2829, ~~2015~~2016 - $21,~~047~~650,~~354~~457) since its inception and incurred a net loss of $~~317~~201,~~008~~169 (~~2014~~2015 - $~~516~~ 112,~~869~~256) for the ~~nine~~three months ended ~~November~~May 3031, ~~2015~~2016 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, ~~2016~~2017 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 ~~November~~May 3031, ~~2015~~2016, included in prepaid expenses is $2317,~~438~~295 (February 2829, ~~2015~~2016: $2712,~~134~~970) for an insurance premium for the directors of the Company financed through Flatiron Capital. Insurance policy is from August 23, 2015 to August 23, 2016.

NOTE 4 – ACCRUED EXPENSES/ACCRUED EXPENSES – RELATED PARTY

Other liabilities and accrued expenses consisted of the following:

	November 30,		February 28,
	May 31,		February 29,
	2015		2015
	2016		2016
Bank overdraft	$	1016,~~878~~294	$	~~24,626~~-
Accounts payable		~~527~~526,~~152~~561		~~558~~524,~~574~~516
Accounts payable – related party		35,884		35,884
Accrued royalties payable – Guardian Alert		480,000		480,000
Detail of Accrued Expenses:
Accrued interest payable	$	1,~~145~~002,~~949~~988	$	1952,~~024,502~~872
Accrued non-resident withholding taxes, including accrued interest		~~191~~196,~~035~~077		~~183~~193,~~472~~556
Credit card		429		1,180
Accrued taxes payable		39,011		39,619
Commissions Payable		15,051		30,552
Total accrued expenses	$	1,238,076	$	1,186,047
Accrued taxes payable		40,226		41,688
Total accrued expenses	$	1,392,690	$	1,281,394
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 May 31, 2016, included in the trade payables is $33,495 (February 29, 2016: $33,495) and $2,389 (February 29, 2016: $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 29, 2016: $480,000) owing to stockholders of the Company in respect of royalties payable, $53,694 (February 29, 2016: $53,694) owing to the former president of the Company in respect of unpaid wages and $17,117 (February 29, 2016: $17,117) accrued expenses related to a director of the Company.

At May 31, 2016, advances payable of $38,658 (February 29, 2016: $60,158) are due to a company controlled by a director of the Company.

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AsAt ofMay ~~November 30~~31, ~~2015~~2016, ~~included~~promissory innotes ~~the accounts~~ payable –of ~~related party is~~ $33439,~~495~~590 (February 2829, ~~2015~~2016: $33439,~~495~~590) ~~and~~is ~~$2,389~~due ~~(February 28, 2015: $2,389) owing~~ to ~~directors~~a ofprofit ~~the~~sharing ~~Company,~~and anretirement ~~accounting~~plan ~~firm in~~ which ~~a director of the Company~~ is aadministered ~~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, 2015: $480,000) owing to stockholders~~ of the Company ~~in respect of royalties payable and $53,694 (February 28, 2015: $53,694) owing to the former president of the Company in respect of unpaid wages~~.

At November 30, 2015, advances payable of $nil (February 28, 2015: $76,100) 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.

NOTE 5 – 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.

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 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

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

OEM/Tier 1 Supplier Sub Licensor:	65% Sense Technologies
	35% Inventor

Any other Sub-Licensor:	50% Sense Technologies
	50% Inventor

~~35%~~The ~~Inventor~~current royalties accrued for Scope Out royalties are $nil as of May 31, 2016 and February 29, 2016.

Any other Sub-Licensor: 50% Sense Technologies

50% Inventor

The current royalties accrued for Scope Out royalties are $nil as of November 30, 2015 and February 28, 2015.

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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 ~~November~~May 3031, ~~2015~~2016 and February 2829, ~~2015~~2016, respectively.

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NOTE 6 – NOTES PAYABLE, CONVERTIBLE NOTES PAYABLE, AND NOTES PAYABLE – RELATED PARTY

	November 30,			February 28,
	May 31,			February 29,
	2015			2015
	2016			2016
Promissory notes payable, unsecured, bearing interest at the rate of 12% per annum with repayment due February, 2017.	$	244,725		$	243,000
Promissory notes payable, unsecured, bearing interest at the rate of 12% per annum with repayment due February 23, 2017.	$	282,029		$	282,029
Promissory notes payable to related party, unsecured, bearing interest at the rate of 12% per annum, maturing between April, 2016 through December, 2016.		439,590			439,590
Promissory notes payable to related party, unsecured, bearing interest at the rate of 12% per annum with repayment between December, 2016 and August, 2017.		439,590			439,590
Promissory notes payable, unsecured, bearing interest at the rate of 12% per annum with repayment due February 23, 2017.		1020,~~000~~057			1020,~~000~~057
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, 2016. This agreement is repayable in monthly principal and interest payments of $2,174.		13,695			6,569
Finance agreement on directors and officers liability policy, secured by the unearned insurance premium, bearing interest at 7.75%, maturing June 23, 2016. This agreement is repayable in monthly principal and interest payments of $2,174.		-			6,574
Finance agreement on directors and officers liability policy, bearing interest at 7.75% per annum, no maturity date. In default.		781			11,050
Finance agreement on directors and officers liability policy, bearing interest at 7.75% per annum, due December, 2016.		8,410			-
Promissory note payable, unsecured, bearing interest at the rate of 5.25% per annum, due in December 2007. In default.		100,000			100,000
Promissory note payable, unsecured, bearing interest at the rate of 6% per annum, maturing January and May, 2016.		62,000			91,500
Promissory note payable, unsecured, bearing interest at the rate of 6% per annum, maturing January, 2017.		59,500			59,500
Promissory note payable, unsecured, bearing interest at the rate of 6% per annum, maturing June 1, 2014. In default.		5654,~~564~~734			7554,~~198~~734
Promissory note payable, unsecured, bearing interest at the rate of 7% per annum, maturing August 1, 2016.		50,000			50,000
Promissory note payable, unsecured, bearing interest at the rate of 7% per annum, maturing July 27, 2017.		50,000			50,000
Promissory note payable, unsecured, bearing interest at the rate of 5.5% per annum, maturing August and October, 2016.		65,000			40,000
Promissory note payable, unsecured, bearing interest at the rate of 5.5% per annum, maturing between August, 2016 and October, 2016.		65,000			65,000
Promissory note payable, personally guaranteed by a director of the Company, bearing interest at 4.0% per annum and maturing August 27, 2018.		6856,~~687~~678			8662,~~259~~719
Promissory note payable, unsecured, bearing interest at the rate of 7% per annum, maturing July 20, 2016.		10,000			10,000
Promissory note payable, unsecured, bearing interest at the rate of 7% per annum, maturing June 4, 2016 and July 17, 2017.		30,000			30,000
Promissory note payable, unsecured, bearing interest at the rate of 12% per annum, maturing June 4, 2016		20,000			-
Promissory note payable, unsecured, bearing interest at the rate of 5.5% per annum, maturing December 23, 2016.		25,000			25,000
Promissory note payable, unsecured, bearing interest at the rate of 5.5% per annum, maturing between June, 2015 and November, 2016.		165,000			165,000
Promissory note payable, unsecured, bearing interest at the rate of 5.5% per annum, maturing between October, 2016 and November, 2016.		165,000			165,000
Promissory note payable, unsecured, bearing interest at the rate of 5.5% per annum, maturing August 13, 2016.		50,000			50,000
Promissory note payable, unsecured, bearing interest at the rate of 6% per annum, maturing August 8, 2017.		35,000			35,000
Promissory note payable, unsecured, bearing interest at the rate of 12% per annum, maturing December 21, 2015. In default.		3,450			-
Promissory note payable, unsecured, bearing interest at the rate of 12% per annum, maturing December , 2015 and December, 2016. $3,450 in default.		133,450			133,450
Promissory note payable, unsecured, bearing interest at the rate of 9.5% per annum, maturing June 9, 2016.		100,000			-
Promissory notes payable, unsecured, bearing interest at the rate of 12% per annum with repayment due February 23, 2017.		313,846			313,846
Promissory note payable, no stated interest or maturity date		28,000			28,000
		1,471,492			1,390,166
		1,856,294			1,860,499
Less: current portion		(1,~~402~~799,~~805~~616	)		(1,~~005~~797,~~407~~780	)
Long-term portion	$	6856,~~687~~678		$	~~384~~62,~~759~~719

The Company is in arrears with respect to four of the above notes payable totaling $168,184.

Convertible notes payable:	May 31, 2016		February 29, 2016
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 may be redeemed at any time after August 30, 2005. These notes may 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 May 31, 2016 and 2015, 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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~~The~~Future ~~Company~~minimum isnote inpayments ~~default~~as ~~with respect to five~~ of ~~the~~May ~~above notes payable totaling 170~~31,~~794~~ at2016 ~~November~~are ~~30,~~as ~~2015. The Company was in default with respect to three notes payable totaling $135,198 at February 28, 2015.~~follows:

Convertible notes payable:	November 30, 2015		February 29, 2015
Years Ending February 28,
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 November 30, 2015 and February 28, 2015, these notes were in default.	$	534,447	$	534,447
2017	$	2,260,299
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
2018		180,442
	$	584,447	$	584,447
Thereafter		-
Total	$	2,440,741

The Company is in default with respect to nine convertible notes payable totaling $584,447 at November 30, 2015 and February 28, 2015.

Future minimum note payments as of November 30, 2015 are as follows:

Years Ending February 28,
2016	$	1,987,252
2017		68,687
Thereafter		-

NOTE 7 – 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 ~~nine~~quarter ~~months~~ ended ~~November~~May 3031, ~~2015~~2016, the Company accrued dividends payable of $237,~~694~~898 (February 2829, ~~2015~~2016: $31,591). Dividends are currently accruing and total $~~416~~432,~~383 at November 30, 2015~~179.

NOTE 8 – COMMON STOCK

a) Common stock issued for cash

During the ~~nine~~quarter ~~months~~ ended ~~November~~May 3031, ~~2015~~2016, the Company received $~~160~~15,000 of common stock subscribed in common stock payable for 550,~~333,333~~000 shares. ~~The~~During ~~Company~~the ~~issued~~quarter ~~1,500,000~~ended ~~shares~~May of31, ~~common stock for cash proceeds of $45~~2016,~~000.~~ ~~The~~the Company issued 783,333~~,333~~ shares of common stock for ~~common~~cash ~~stock~~proceeds ~~payable~~of ~~that was accrued during prior periods~~$25,000.

During the year ended February 2829, ~~2015~~2016, the Company issued 15150,000~~,000~~ shares of common stock for cash proceeds of $~~450~~45,000.

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. $960 recorded as a debt discount. As the debt was due on demand, the discount was fully expensed in the first quarter ended May 31, 2015.

~~The~~During the quarter ended May 31, 2016, the Company issued 4396,~~000,000~~667 shares of common stock for cash proceeds of $~~120~~119,000 which was received in prior years and was initially record in ~~Common~~stock ~~Stock~~issued ~~Payable~~from atstock payable as of February 2829, ~~2015~~2016.

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 May 31, 2016 and February 29, 2016.

During the quarter ended May 31, 2016, the Company issued 225,000 common shares for consulting services and 26,000 common shares for interest expense. The fair value of each common share was $0.30 based on the closing trading price on the issue date and was recorded as consulting expense of $52,608.

During the year ended February 29, 2016, the Company issued 100,000 common shares for consulting services. The fair value of each common share was $0.30 based on the closing trading price on the issue date and was recorded as consulting expense of $30,000.

c) Common stock rounding shares

On April 21, 2016, the Company completed a 10-for-one reverse split of its issued and outstanding shares of common stock. Shares were rounded down 57 shares because of this split.

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~~b) Common stock for services~~Options

During the nine months ended November 30, 2015, the Company issued 1,000,000 shares of common stock for consulting services. The fair value of each common share was $0.03 based on the closing trading price on the grant date and was record as consulting expense of $30,000.

During the year ended February 28, 2015, the Company issued 150,000 common shares for consulting services. The fair value of each common share was $0.03 based on the closing trading price on the grant date and was recorded as consulting expense of $4,500.

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.

		November 30, 2015
	May 31, 2016
	Options	~~Options~~		Weighted Average Exercise Price	~~Weighted Average Exercise Price~~
Outstanding and exercisable at beginning of the year			3300,000~~,000~~		$	0.0440
Issued during the year			-			-
Outstanding and exercisable, November 30, 2015			3,000,000		$	0.04
Outstanding and exercisable, May 31, 2016			300,000		$	0.40

		February 28, 2015
	February 29, 2016
	Options	~~Options~~			Weighted Average Exercise Price	~~Weighted Average Exercise Price~~
Outstanding and exercisable at beginning of the year			3300,000~~,000~~			$	0.0440
Expired during the year			(1,000,000	)			(0.05	)
Issued during the year			-				-
Issued during the year			1,000,000				0.03
Outstanding and exercisable, February 29, 2016			300,000			$	0.40
Outstanding and exercisable, February 28, 2015			3,000,000			$	0.04

At May 31, 2016, 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

	300,000		$	0.30	December 31, 2016

Warrants

As of May 31, 2016 and February 29, 2016, the Company had no outstanding warrants.

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At November 30, 2015, 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, 2015

d) Warrants

As of November 30, 2015 and February 28, 2015, the Company had no outstanding warrants.

NOTE 9 – RELATED PARTY TRANSACTIONS

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

		November 30,
	May 31,
		2015			2014
	2016			2015
Interest expense		$	2621,~~375~~218		$	2613,~~375~~188

As of ~~November~~May 3031, ~~2015~~2016, included in accounts payable ~~– related party~~ is $33,495 (February 2829, ~~2015~~2016: $33,495) owing to an accounting firm in which a director of the Company is a partner and $2,389 (February 2829, ~~2015~~2016: $2,389) to a shareholder with respect to unpaid fees and interest on promissory notes, $480,000 (February 2829, ~~2015~~2016: $480,000) owing to shareholders of the Company in respect of royalties payable with no interest accruing, ~~and~~ $53,694 (February 2829, ~~2015~~2016: $53,694) owing to the former president of the Company in respect of unpaid wages and $17,117 (February 29, 2016: $17,117) accrued expenses related to a director of the Company.

As of ~~November~~May 3031, ~~2015~~2016, included in advances payable is $~~nil~~38,658 (February 2829, ~~2015~~2016: $~~103~~60,~~521~~158) owed to a company controlled by a director.

As of ~~November~~May 3031, ~~2015~~2016, promissory notes payable of $439,590 (February 2829, ~~2015~~2016: $439,590 is due to a profit-sharing and retirement plan administered by a director of the Company. Terms are:

Date Due:	Amount
August, 2016	$	12,500
April, 2016		15,000
October, 2016		12,500
November, 2016		27,500
December, 2016		~~168~~384,~~218~~590
December, 2016		216,372
Total	$	439,590

All bear interest at 12% per annum.

As of ~~November~~May 3031, ~~2015~~2016, promissory note payable of $6856,~~687~~678 (February 2829, ~~2015~~2016: $8662,~~259~~719) is personally guaranteed by a related party of the director of the company.

NOTE 10 – CONCENTRATIONS AND CONTINGENCIES

Concentrations

Approximately ~~100~~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 ~~nine~~three months ended ~~November~~May 3031, ~~2015~~2016, ~~two~~one (21) ~~customers~~customer accounted for approximately 99% of revenue. For the ~~nine~~three months ended ~~November~~May 3031, ~~2014~~2015, there was one (1) customer that accounted for 9599% of sales revenue.

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Contingencies

During the normal course of business we may from time to time be involved in litigation or other possible loss contingencies. As of ~~November~~May 3031, ~~2015~~2016 and ~~November~~February 3029, ~~2014~~2016 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 11 – SUBSEQUENT EVENTS~~13

~~Management~~Table ~~has evaluated subsequent events through March 24, 2016, the date~~ of which the financial statements were available to be issued. The Company reports one subsequent event. It has terminated the ClubsCorp Communications public relations consulting contract effective February 16, 2016.Contents

NOTE 11 – SOY MEAL ACQUISITION

On May 24, 2016, the Company entered into a nonbinding letter of intent with R and D USA, LLC for the acquisition of business assets comprising R and D, USA, LLC’s means of production of soy meal and soy oil products and non-GMO products, certified organic products, refined oils, agricultural oils, and other related specialty fertilizer crop products, including all intellectual and intangible property related thereto.

The Company intends to structure the transaction as a purchase of the Business Interests by a wholly-owned subsidiary of the Company, in consideration for which the Company shall initially raise $350,000 for the purpose of working capital for the soybean processing mill, and issue to R and D, USA, LLC common shares in the Company. The shares will be issued in two tiers of a number of common shares of the Company to be determined before entering a definitive agreement.

NOTE 12 – SUBSEQUENT EVENTS

Management has evaluated subsequent events through August 23, 2016, 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 ~~November~~May 3031, ~~2015~~2016 and our Financial Statements and notes thereto for the period ended ~~November~~May 3031, ~~2014~~2015.

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~~market 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~~The ~~product~~Company isplans ~~manufactured~~to increate ~~China~~sales through andevelopment ~~outsourced~~of ~~vendor~~new marketing relationships.

2. Results of Operations

For the three ~~and nine~~ month period ended ~~November~~May 3031, ~~2015~~2016 as compared to the three ~~and nine~~ month period ended ~~November~~May 3031, ~~2014~~2015.

		For the three months ended					For the nine months ended
	For the Three Months Ended
		November 30, 2015			November 30, 2014		November 30, 2015		November 30, 2014
	May 31, 2016			May 31, 2015
Sales
Sales:
Sales Guardian Alert		$	~~103~~49,~~995~~500		$	3556,~~944~~988		~~222,483~~		~~111,244~~
Sales Scope Out			-			-		-		-
			103,995			35,944		222,483		111,244
		$	49,500		$	56,988

Sales for the ~~nine~~quarter ~~months~~ ended ~~November~~May 3031, ~~2015~~2016 ~~increased~~decreased by ~~100~~13% from $~~111~~56,~~244~~988 to $~~222~~49,~~483~~500 due to ~~increased~~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 November 30, 2015 increased by 189% from 35,944 to 103,995 due to increased 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 nine months ended
	For the Three Months Ended May 31,
	November 30, 2015		November 30, 2014		November 30, 2015		November 30, 2014
	2016		2015
Direct Cost
Direct Costs:
Scope Out Direct Costs
Scope Out Direct Costs:
Manufacturing expenses		-		-		-		-
Royalties - related party	$	15,000	$	15,000
Research and development		-		-		-		-
Total Scope Out Direct Costs		15,000		15,000
Commissions		-		-		-		-
Guardian Alert Direct Costs:
Royalties - related party		10,000		15,000		40,000		45,000
Research and development		9,200		19,550
Total Scope Out Direct Costs		10,000		15,000		40,000		45,000
Commissions		6,236		5,100
Guardian Alert Direct Costs
Total Guardian Alert Direct Costs		15,436		24,650
Manufacturing expenses		-		74,919		2,469		124,999
Total Direct Costs	$	30,436	$	39,650
Research and development		5,776		19,236		37,815		51,136
Commissions		-		5,100		8,500		19,090
Royalties		-		-		-		-
Total Guardian Alert Direct Costs		5,776		99,255		48,784		195,225
Total Direct Costs		15,776		114,255		88,784		240,225

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 May 31, 2016 and 2015, respectively.

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Direct costs related to ~~Scope~~Guardian ~~Out®~~Alert were $1015,~~000~~436 and $1524,~~000~~650 for the three month periods ending May 31, 2016 and 2015, respectively. This change represents a decrease of 37%. Commission expenses were $6,236 and $5,100 for the three month periods ended ~~November~~May 3031, 2016 and 2015, respectively. This decrease is attributed to the strategic relationship created with our commercial marketing partner, where Sense no longer directly incurs production and/or ~~2014~~inventory costs for commercial fleet application product sales. Manufacturing expenses in Direct Costs for the Guardian Alert® for the three months ended in 2015 represents assembly costs for the sales achieved for the same period. Research and development expenses were $9,200 and $19,550 for the three month periods ended May 31, 2016 and 2015, respectively.

Direct costs related to Scope Out® were $40,000 and $45,000 for the nine month period ended November 30, 2015 and 2014, respectively.

Operating and Other Expense

	For the Three Months Ended
	May 31, 2016		May 31, 2015
Consulting fees	$	109,409	$	26,200
Contract labor		3,000		3,000
Engineering Costs		3,374		874
Filing fees		675		550
Insurance		12,190		10,094
Bank charges		1,334		375
Legal and accounting		8,250		20,188
Office and miscellaneous		1,016		1,885
Rent		3,520		3,810
Tax penalties		2,996		2,997
Telephone and utilities		192		216
Transfer agent fees		13,750		2,000
Travel and automotive		141		688
Interest expense		60,386		56,717
Total	$	220,233	$	129,594

~~Direct~~Sense ~~costs related to Guardian Alert were $5~~Technologies,~~776~~ ~~and~~Inc. ~~$99,255~~had ~~for~~operating ~~the three month period ending November 30, 2015~~ and ~~2014,~~other ~~respectively.~~expenses ~~This change represents a decrease~~ of ~~94%. Commission expenses were~~ $~~nil and $5~~220,~~100~~233 for the three month period ended ~~November~~May 3031, ~~2015~~2016 ~~and~~compared ~~2014, respectively. Commission expense decreased 100% due~~ to aoperating ~~decrease~~and inother ~~commissioned sales. Manufacturing~~ expenses ~~were~~of $~~nil and $74~~129,~~919~~594 for the three month ~~periods~~period ended ~~November~~May 3031, 2015 ~~and 2014~~, ~~respectively. This~~an ~~decrease~~increase isin ~~attributed~~operating ~~to the strategic relationship created with our commercial marketing partner, where Sense no longer directly incurs production~~ and~~/or~~ ~~inventory~~other ~~costs for commercial feet application product sales. Manufacturing~~ expenses inof 70% ~~Direct~~from ~~Costs for~~ the ~~Guardian~~prior ~~Alert® for the three months ended in 2015 and 2014 represents assembly costs for the sales achieved for the same~~ period. ~~Research and development expenses were $5,776 and $19,236 for the three month periods ended November 30, 2015 and 2014, respectively.~~

~~Direct~~Consulting ~~costs~~fees ~~related~~increased tofrom ~~Guardian Alert were~~ $4826,~~784~~200 ~~and $199,225~~ for the ~~nine~~three month period ~~ending November 30, 2015 and 2014, respectively. This change represents a decrease of 75%. Commission expenses were $8,500 and $19,090 for the nine month periods~~ ended ~~November~~May 3031, 2015 ~~and 2014, respectively. Commission expense decreased 55% due~~ to ~~a decrease in commissioned sales. Manufacturing expenses were~~ $2109,~~469~~409 ~~and $124,999~~ for the ~~nine~~three month period ended ~~November~~May 3031, ~~2015~~2016. ~~and~~The ~~2014,~~increase ~~respectively. Manufacturing~~was ~~expenses~~a inresult ~~Direct~~of ~~Costs~~consulting ~~for~~related ~~the~~to Guardian Alert® ~~for~~product ~~the nine months ended in 2015 and 2014 represents assembly costs for the~~ sales ~~achieved for the same period~~. ~~Research and development expenses were $37,815 and $51,136 for the nine month periods ended November 30, 2015 and 2014, respectively.~~

Selling, General, and Administrative
	For the three months ended				For the nine months ended
	November 30, 2015		November 30, 2014		November 30, 2015		November 30, 2014
Advertising	$	4,050	$	-	$	6,797	$	-
Consulting fees		66,185		74,500		133,185		110,000
Contract labor		3,000		3,000		9,000		9,000
Depreciation		-		1,939		-		5,816
Engineering costs		-		-		874		-
Filing fees		400		7,016		8,666		12,826
Insurance		10,666		9,213		30,904		26,832
Bank charges		6,415		651		7,581		1,556
Legal and accounting		2,075		7,199		38,901		28,532
Office and miscellaneous		4,105		6,061		8,668		20,169
Public relations		30,000		-		30,000		-
Rent		2,860		3,759		10,161		11,196
Tax penalties		2,997		1,000		8,990		6,993
Telephone and utilities		133		92		454		554
Transfer agent fees		500		2,450		3,000		6,324
Travel and automotive		2,950		1,928		3,638		6,664
Interest expense		44,453		55,562		149,887		141,426
		180,789		174,370		450,706		387,888

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.

~~Sense~~Legal ~~Technologies, Inc. had selling, general~~ and ~~administrative~~accounting ~~expenses~~fees ofdecreased from $~~180~~20,~~789~~188 ~~for~~in the three month period ended ~~November~~May 3031, 2015 ~~compared~~ to ~~selling, general and administrative expenses of~~ $~~174~~8,~~370~~250 for the three month period ended ~~November~~May 3031, ~~2014, an increase in selling, general and administrative expenses of 4% from the prior period~~2016.

~~General~~Following ~~and~~summarizes ~~administrative expenses of $450,706 for~~ the ~~nine~~overall ~~month~~operations ~~period~~results ~~ended November 30, 2015 compared to selling, general and administrative expenses of $387,888~~ for the ~~nine~~three month period ended ~~November~~May ~~30, 2014, an increase in selling, general and administrative expenses of 16% from the prior period.~~31:

Consulting fees decreased from $74,500 for the three month period ended November 30, 2014 to $66,185 for the three month period ended November 30, 2015. The decrease was a result of consulting related to Guardian Alert product sales.

							Increase			% Increase
	2016			2015			( Decrease)			(decrease)
Sales		49,500			56,988			(7,488	)		(13.14	)
Direct Costs		30,436			39,650			(9,214	)		(23.24	)
Operating and Other Expenses		220,233			129,594			90,639			69.94
Net Loss		(201,169	)		(112,256	)		(88,913	)		(59.84	)
Basic and Diluted Loss per share		(0.01	)		(0.00	)

We had a net loss from operations of $201,169 for three month period ended May 31, 2016, compared to a net loss of $112,256 for the three month period ended May 31, 2015, an increase in net loss of $88,913 from the prior year.

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Consulting fees increased from $110,000 for the nine month period ended November 30, 2014 to $133,185 for the nine month period ended November 30, 2015. The increase was a result of consulting related to Guardian Alert product sales.

Legal and accounting fees decreased from $7,199 in the three month period ended November 30, 2014 to $2,075 for the three month period ended November 30, 2015.

Legal and accounting fees increased from $28,532 in the nine month period ended November 30, 2014 to $38,901 for the nine month period ended November 30, 2015.

Following summarizes the overall operations results for the nine month period ended November 30:

							Increase			% Increase
	2015			2014			( Decrease)			(decrease)
Sales		222,483			111,244			111,239			100.00
Direct Costs		88,784			240,225			(151,441	)		(63.04	)
General and Administrative expenses		450,706			387,888			62,819			16.19
Net Loss		(317,008	)		(516,869	)		199,861			38.67
Basic and Diluted Loss per share		(0.00	)		(0.00	)

We had a loss from operations of $317,008 for nine month period ended November 30, 2015, compared to a loss from operations of $516,869 for the nine month period ended November 30, 2014, a decrease in loss from operations of $199,861 from the prior year.

Liquidity and Capital Resources

Our cash position at ~~November~~May 3031, ~~2015~~2016 was $nil as compared to $~~Nil~~1,298 at February 2829, ~~2015~~2016. 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$5,~~902~~235,~~812~~481 and $45,~~481~~174,~~998~~900 as of ~~November~~May 3031, ~~2015~~2016 and February 2829, ~~2015~~2016, respectively. If we are unable to raise adequate working capital for fiscal ~~2016~~2017, 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 may be forced to change our business plan for fiscal ~~2016~~2017, 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 $~~286~~37,~~326~~093 in ~~2015~~2016, compared to $~~495~~58,~~040~~253 in ~~2014~~2015. The decrease in cash used in ~~2015~~2016 was largely due to the decrease in ~~advances~~accrued ~~payable~~expenses.

Net cash provided by financing activities

Net cash provided by financing activities was $~~286~~35,~~326~~795 in ~~2015~~2016 compared to ~~net cash used of~~ $~~495~~58,~~040~~253 in ~~2014~~2015.

InDuring ~~2015~~the three months ended May 31, 2016, we received $~~130~~40,000 through subscriptions to our common shares compared to $60,000 during the three months ended May 31, 2015.

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~~10-Q 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 ~~and~~officers ~~chief~~have ~~financial officer has~~ determined that no change in our internal control over financial reporting occurred during or subsequent to the quarter ended ~~November~~May 3031, ~~2015~~2016 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.

1817

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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 2829, ~~2015~~2016.

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

There were no unregistered sales of equity securities during the ~~nine~~quarter ~~months~~ ended ~~November~~May 3031, ~~2015~~2016.

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 ~~and Chief Financial~~ 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 ~~and Chief Financial~~ 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

1918

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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.
March 25, 2016	/s/ BRUCE E. SCHREINER
August 25, 2016	/s/ BRUCE E. SCHREINER
	Bruce E. Schreiner
	Chief Executive Officer, President, Director, Chief Financial Officer and Principal Accounting Officer

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