<DOCUMENT>
<TYPE>10QSB
<SEQUENCE>1
<FILENAME>aug06form10qsb10-06.txt
<TEXT>

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-QSB

              [X] Quarterly Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934
                 For the quarterly period ended August 31, 2006

                                       or
            [ ] Transition Report Pursuant to Section 13 or 15 (d) of
                       the Securities Exchange Act of 1934

                           Commission file No. 0-33259

                       SECURITY DEVICES INTERNATIONAL INC.
                   ------------------------------------------
             (Exact name of registrant as specified in its charter)

               Delaware                                Applied For
        (State of incorporation)         (I.R.S. Employer Identification Number)


                              464 Old Orchard Grove
                                Toronto, Ontario
                                     Canada                     M5M 2G4
                  ------------------------------------------------------
                     (Address of Principal Executive Office)   Zip Code


                                 (647) 388-1117
                     --------------------------------------
              (Registrant's telephone number, including area code)


Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15 (d) of the Securities Exchange Act of 1934 during the proceeding 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 is a shell company (as defined in
Rule 12b-2 of the Exchange Act):

            Yes                           No      X
                  ------------                --------


As of October 9, 2006, the Company had 10,214,880 issued and outstanding shares
of common stock.


<PAGE>



                      SECURITY DEVICES INTERNATIONAL, INC.
                        (A Development Stage Enterprise)
                          INTERIM FINANCIAL STATEMENTS
                                 AUGUST 31, 2006
                        (Amounts expressed in US Dollars)
                                   (Unaudited)













<PAGE>


                      SECURITY DEVICES INTERNATIONAL, INC.
                        (A Development Stage Enterprise)
                          INTERIM FINANCIAL STATEMENTS
                                 AUGUST 31, 2006
                        (Amounts expressed in US Dollars)
                                   (Unaudited)


                                TABLE OF CONTENTS
                                                                       Page No
                                                                       -------

Interim Balance Sheets as of August 31, 2006 and November 30, 2005        1

Interim Statement of Operations for the nine months and three months
   ended August 31, 2006 and August 31, 2005.                             2

Interim Statement of Cash Flows for the nine months
   ended August 31, 2006 and August 31, 2005.                             3

Interim Statement of Changes in Stockholders' Equity (Deficiency)
  for the nine months ended August 31, 2006 and nine months
  (since inception) ended November 30, 2005.                              4

Condensed Notes to Interim Financial Statements                         5-7








<PAGE>


SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Interim Balance Sheets
As at August 31, 2006 and November 30, 2005
(Amounts expressed in US Dollars)
(Unaudited)


ASSETS

                                                 August 31,      November 30,
                                                   2006              2005
                                                 ----------      ------------
CURRENT ASSETS
        Cash                                       254,405              126
                                                 =========         ========

LIABILITIES


                                                 August 31,      November 30,
                                                   2006              2005
                                                 ----------      ------------
  CURRENT LIABILITIES
     Accounts payable and accrued liabilities        9,160           16,076
     Loans from Directors/Shareholders (note 5)      8,787            8,029
                                                 ---------        ---------

                                                    17,947           24,105
                                                 ---------        ---------

STOCKHOLDERS' EQUITY (DEFICIENCY)

     CAPITAL STOCK (note 4)                         10,215            6,923


     ADDITIONAL PAID-IN CAPITAL                    708,905          157,797

     DEFICIT, ACCUMULATED DURING THE
          DEVELOPMENT STAGE                       (482,662)        (188,699)
                                                 ---------        ---------
                                                   236,458          (23,979)
                                                 ---------        ---------
                                                   254,405              126
                                                 =========        =========



             See condensed notes to the interim financial statements

                                       1

<PAGE>




SECURITY DEVICES INTERNATIONAL, INC.
 (A Development Stage Enterprise)
 Interim Statement of Operations
 For the nine months and three months ended August 31, 2006 and August 31, 2005
 (Amounts expressed in US Dollars)
 (Unaudited)

<TABLE>
<S>                                  <C>          <C>           <C>           <C>            <C>

                                                For the      For the        For the       For the
                                              nine months   nine months   three months  three months
                                 Cumulative      ended        ended          ended         ended
                                   since       August 31,    August 31,    August 31,    August 31,
                                 inception       2006          2005          2006           2005
                                 ---------    -----------   -----------   ------------  ------------
                                     $            $              $              $             $

RESEARCH AND PRODUCT
  DEVELOPMENT COST                298,200        218,200        70,000        128,025        37,000

   OTHER OPERATING EXPENSES

     General and administration    49,546         28,071        17,229         13,603        13,168
     Legal and accounting          60,916         38,942           898         12,825           210
     Consulting and professional   74,000          8,750        65,250              -             -
                                 ---------    -----------   -----------   ------------  ------------

   TOTAL EXPENSES                 482,662        293,963       153,377        154,453        50,378
                                 ---------    -----------   -----------   ------------  ------------

   LOSS BEFORE INCOME TAXES      (482,662)      (293,963)     (153,377)      (154,453)      (50,378)

         Income taxes                   -              -             -              -             -
                                 ---------    -----------   -----------   ------------  ------------

   NET LOSS                      (482,662)      (293,963)     (153,377)      (154,453)      (50,378)
                                 ---------    -----------   -----------   ------------  ------------

Loss per share - basic and diluted                 (0.04)        (0.02)         (0.02)        (0.01)
                                              -----------   -----------   ------------  ------------

Weighted average common shares outstanding     7,989,179     6,771,360      8,367,054     6,962,010
                                              -----------   -----------   ------------  ------------

</TABLE>


            See condensed notes to the interim financial statements


                                       2

<PAGE>


SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Interim Statement of Cash Flows
For the nine months ended August 31, 2006 and August 31, 2005 (Amounts expressed
in US Dollars) (Unaudited)

<TABLE>
<S>                                               <C>          <C>           <C>

                                                              For the     For the
                                                            nine months  nine months
                                               Cumulative      ended       ended
                                                  since      August 31,   August 31,
                                                inception      2006         2005
                                               ----------   -----------  -----------
                                                    $               $          $
$
CASH FLOWS FROM OPERATING ACTIVITIES
   Net loss for the period                      (482,662)    (293,963)     (153,377)
   Items not requiring an outlay of cash:
    Issue of shares for professional services     74,000        8,750        65,250
    Increase/(Decrease) in accounts payable and
          accrued liabilities                      9,160       (6,916)       (3,791)
                                               ----------   -----------  -----------

NET CASH USED IN OPERATING ACTIVITIES           (399,502)    (292,129)      (91,918)

CASH FLOWS FROM INVESTING ACTIVITIES                  --           --            --
                                               ----------   -----------  -----------

NET CASH USED IN INVESTING ACTIVITIES                 --           --            --
                                               ----------   -----------  -----------

CASH FLOWS FROM FINANCING ACTIVITIES

   Increase in loans from directors/shareholders   8,787          758           150

   Proceeds from issuance of common shares       645,120      545,650        99,470


NET CASH PROVIDED BY FINANCING ACTIVITIES        653,907      546,408        99,620
                                               ----------   -----------  -----------

NET INCREASE IN CASH AND CASH
   EQUIVALENTS FOR THE PERIOD                    254,405      254,279         7,702


   Cash and cash equivalents, beginning
    of period                                         --          126             -
                                               ----------   -----------  -----------

CASH AND CASH EQUIVALENTS, END OF PERIOD         254,405      254,405         7,702
                                               ==========   ===========  ===========

INCOME TAXES PAID                                                  --            --
                                                            ===========  ===========

INTEREST PAID                                                      --            --
                                                            ===========  ===========

</TABLE>

             See condensed notes to the interim financial statements

                                       3


<PAGE>

SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Interim Statement of Changes in Stockholders' Equity (Deficiency) For the nine
months ended August 31, 2006 and nine months (since inception) ended November
30, 2005 (Amounts expressed in US Dollars) (Unaudited)

<TABLE>
<S>                            <C>         <C>      <C>                  <C>          <C>

                             Number of   Common   Additional
                              Common     Shares    Paid-in             Deficit
                              Shares     amount    Capital           Accumulated     Total
                             ---------   ------   -----------        ------------    -----
                                            $          $                   $           $

Balance as of March 1, 2005        --       --           --                  --         --

Issuance of common shares
  for professional services 6,525,000    6,525       58,725                  --     65,250
Issuance of common shares
    for cash                  397,880      398       99,072                  --     99,470
Net loss for the period            --       --           --            (188,699)  (188,699)
                             ---------   ------   -----------        ------------    -----

November 30, 2005           6,922,880    6,923      157,797            (188,699)  (23,979)

Issuance of common shares
   for cash                   956,000      956       94,644                  --    95,600

Issuance of common shares
   for cash                   286,000      286       49,764                  --    50,050
Issuance of common shares
    to consultant for services 50,000       50        8,700                  --     8,750
Issuance of common shares
   for cash                 2,000,000    2,000      398,000                  --   400,000
Net loss for the period            --       --           --            (293,963) (293,963)
                             ---------   ------   -----------        ----------- --------

Balance as of
August 31, 2006             10,214,880  10,215       708,905           (482,662)  236,458
                           ===========  =======   ===========        ============ =======

</TABLE>



             See condensed notes to the interim financial statements


                                       4

<PAGE>



SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Condensed Notes to Interim Financial Statements
August 31, 2006
(Amounts expressed in US Dollars)
(Unaudited)

1. BASIS OF PRESENTATION

        The accompanying unaudited interim consolidated financial statements do
        not include all the information and footnotes required by generally
        accepted accounting principles for complete financial statements. In the
        opinion of management, all adjustments (consisting of all recurring
        accruals) considered necessary for fair presentation have been included.
        Operating results for the interim period are not necessarily indicative
        of the results that may be expected for the year ended November 30,
        2006. Interim financial statements should be read in conjunction with
        the Company's audited financial statements for the nine-month period
        ended November 30, 2005.

        The financial statements include the accounts of Security Devices
        International Inc. (the "Company"). The Company was incorporated on
        March 1, 2005. The first period for financial statements of the Company
        commenced March 1, 2005 and ended November 30, 2005.


     2. NATURE OF OPERATIONS AND GOING CONCERN

        The Company was incorporated under the laws of the state of Delaware on
        March 1, 2005. The company plans to develop and market a wireless,
        non-lethal weapon for use in law enforcement, defense and personal
        security. The company's product in the making is similar to the widely
        used Stun Gun, except that it can effectively incapacitate offenders
        from a distance as far as 30 meters without a trail of wires leading
        back to the launcher.

        The company has not commenced operations. It has no source for operating
        revenue and expects to incur significant expenses before establishing
        operating revenue. The Company's future success is dependent upon its
        ability to raise sufficient capital, not only to maintain its operating
        expenses, but to continue to develop and be able to profitably market
        its product. There is no guarantee that such capital will be available
        on acceptable terms, if at all.

           3. RESEARCH AND PRODUCT DEVELOPMENT

        Research and Product Development costs, other than capital expenditures
        but including acquired research and product development costs, are
        charged against income in the period incurred.



                                       5
<PAGE>

SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Condensed Notes to Interim Financial Statements
August 31, 2006
(Amounts expressed in US Dollars)
(Unaudited)



     4. ISSUANCE OF COMMON SHARES

        a)     Changes to Issued Share Capital

           i)  On December 31, 2005 the Company authorized the issuance of
               486,000 common shares for cash for a total consideration of
               $48,600.

           ii) On January 31, 2006 the Company authorized the issuance of
               470,000 common shares for cash for a total consideration of $
               47,000.

          iii) On March 8, 2006 the Company  authorized  the issuance of 286,000
               common   shares   for  cash  @  $0.175  per  share  for  a  total
               consideration of $50,050. On the same day, the Company authorized
               the issuance of 50,000  shares to a  consultant  for the services
               rendered as finder's fees. These services were valued @$0.175 per
               common  share and  expensed as  consulting  fees in the amount of
               $8,750.

          iv)  By means of a prospectus dated May 5, 2006 the Company offered to
               the public up to 2,000,000  shares of its common stock at a price
               of $0.20 per share.  The Company  closed the offering on July 31,
               2006  after  receiving   consideration  of  $400,000  and  issued
               2,000,000 common shares in August, 2006.


        b)    Purchase Warrants

           During the current quarter no warrants were issued.








                                       6
<PAGE>
SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Condensed Notes to Interim Financial Statements
August 31, 2006
(Amounts expressed in US Dollars)
(Unaudited)



        5. RELATED PARTY TRANSACTIONS

            During the nine month period ended May 31, 2006 no director was paid
            any compensation in cash. All out of pocket expenses of
            directors/promoters were expensed. The Directors made advances to
            the Company to meet the operating expenses. These advances of $8,787
            as on August 31, 2006 are unsecured and bear interest at 4% p.a.
            Further, a Company Director has charged the Company a total amount
            of $2,250 for providing office space for the nine month period ended
            August 31, 2006.
            The Company's officers and directors have agreed to serve without
            compensation until commercial sales begin. The Company has agreed to
            pay a director a royalty equal to 3.5% of the Company's sales



        6. LISTING OF COMMON STOCK

            The common stock of the Company was listed for trading on the OTC
            Bulletin Board under the symbol "SDEV" effective August 28, 2006.


         7. INCOME TAXES

            The Company did not record any recovery for income taxes for the
            period ended August 31, 2006 as the net loss carry forwards are
            fully offset by a valuation allowance

         8. SUBSEQUENT EVENT

            By means of a prospectus dated September 7, 2006 a number of
            shareholders of the Company are offering to sell up to 2,814,880
            common shares at a price of $0.20 per share. The Company will not
            record any proceeds for the sale of the common stock by the selling
            stockholders.





                                       7
<PAGE>

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                   FINANCIAL CONDITION AND PLAN OF OPERATIONS

      Security Devices International was incorporated on March 1, 2005 and as of
October 10, 2006 had not generated any revenue.

     Security Devices is developing a wireless, non-lethal weapon for use in law
enforcement,  defense  and  personal  security.  Known  as the  W-EMDT  Wireless
Electro-Muscular Disruption Technology,  (previously referred to as the "WERS"),
Security  Devices'  weapon  will be  similar  to the  widely  used  Stun Gun and
TASER(R), except that it will be able to effectively incapacitate offenders from
a  distance  as far as 30 meters  without a trail of wires  leading  back to the
launcher.  The  W-EMDT  weapon  will have a range  which is more than four times
farther  than  TASER(R),  providing  a  significant  safety  advantage  for  law
enforcement officers and security personnel.

      During the period from inception (March 1, 2005) through August 31, 2006
Security Devices' operations used $(399,502) in cash. During this period,
Security Devices borrowed $8,787 (net) from its officers and directors, raised
$245,120 from the sale of its common stock in private transactions and raised
$400,000 from the public sale of its shares.

      Security Devices' plan of operation during the twelve months ending August
31, 2007 is as follows:

                                                      Projected     Estimated
Activity                                           Completion Date      Cost
--------                                           ---------------  -----------

Completion of fully operational Long Range W-EMDT
   prototype (rifle fired) for production                10/06        $177,000
Completion of fully operational Long Range W-EMDT
   prototype (shotgun fired) for production              2/07           30,000
Design production system for Long Range W-EMDT           2/07          536,000
                                                                     ---------
                                                                      $743,000
                                                                     =========

      Security Devices plans to develop a Short Range version of the W-EMDT
after the development to the Long Range W-EMDT has been completed. However since
the development of the Long Range W-EMDT is not complete, Security Devices does
not know the time or cost involved in developing the Short Range W-EMDT.

      Security Devices anticipates that its capital requirements for the twelve
months ending August 31, 2007 will be:

      Research and Development                $743,000
      General and administrative expenses       70,000
      Offering Expenses                         30,000
                                              --------
           Total                              $843,000
                                              ========

<PAGE>

      Security Devices' future plans will be dependent upon the amount of
capital Security Devices is able to raise.

     Security Devices will attempt to raise any additional  capital which it may
need through the private or public sale of its equity  securities  or borrowings
from  third  parties.   Security  Devices  does  not  have  any  commitments  or
arrangements  from any person to provide Security  Devices with any capital.  If
additional financing is not available when needed, Security Devices may continue
to operate in its present mode or Security  Devices may need to reduce its level
of operations.

Controls and Procedures

     Sheldon Kales,  the Company's  Chief Executive and Financial  Officer,  has
evaluated the effectiveness of the Company's  disclosure controls and procedures
as of the end of the  period  covered by this  report,  and in his  opinion  the
Company's  disclosure  controls  and  procedures  are  effective  to ensure that
material  information  relating to the  Company,  is made known to him by others
within those  entities,  particularly  during the period in which this report is
being prepared,  so as to allow timely decisions regarding required  disclosure.
There  have been no  changes  in the  Company's  internal  controls  or in other
factors that could  significantly  affect the Company's internal controls.  As a
result,  no  corrective  actions  with  regard to  significant  deficiencies  or
material weakness in the Company's internal controls were required.










<PAGE>
                                     PART II


6.   EXHIBITS

      The following exhibits are filed with this report:

       Number                    Description

         31                      Rule 13a-14(a)/15d-14(a) certifications
         32                      Section 1350 certifications











<PAGE>


                                   SIGNATURES

      Pursuant to the requirements of Section 12 of the Securities Exchange Act
of 1934, the registrant has duly caused this registration statement to be signed
on its behalf by the undersigned, thereunto duly authorized on October 9, 2006.

                                 SECURITY DEVICES INTERNATIONAL INC.


                                  By /s/ Sheldon Kales
                                     -------------------------------------
                                     Sheldon Kales, President and Principal
                                       Accounting Officer












</TEXT>
</DOCUMENT>
