<DOCUMENT>
<TYPE>10QSB
<SEQUENCE>1
<FILENAME>aug0710qsb10-07.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, 2007

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

                            Commission file No. None

                       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)


                            120 Adelaide Street West
                                   Suite 2500
                                Toronto, Ontario
                                 Canada M5H 1T1
                     --------------------------------------
                (Address of Principal Executive Office) Zip Code


                                 (416) 787-1871
                         -----------------------------
              (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 15, 2007, the Company had 14,330,050 issued and outstanding shares
of common stock.





<PAGE>





                      SECURITY DEVICES INTERNATIONAL, INC.
                        (A Development Stage Enterprise)
                          INTERIM FINANCIAL STATEMENTS
                                 AUGUST 31, 2007
                        (Amounts expressed in US Dollars)
                                   (Unaudited)





<PAGE>


                      SECURITY DEVICES INTERNATIONAL, INC.
                        (A Development Stage Enterprise)
                          INTERIM FINANCIAL STATEMENTS
                                 AUGUST 31, 2007
                        (Amounts expressed in US Dollars)


                                TABLE OF CONTENTS
                                                                        Page No

     Interim Balance Sheets as at August 31, 2007 (Unaudited) and
     November 30, 2006(Audited)                                             1

     Interim (Unaudited) Statement of Operations for the nine months
     and three months ended August 31, 2007 and August 31, 2006.            2

     Interim (Unaudited) Statement of Cash Flows for the nine months
     ended August 31, 2007 and August 31, 2006.                             3

     Interim Statements of changes in Stockholders' Equity for the
     nine months ended August 31, 2007 (Unaudited) and for the period
     from inception (March 1, 2005) to November 30, 2006(Audited)           4

     Condensed Notes to Unaudited Interim Financial Statements            5-12









<PAGE>

SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Interim Balance Sheets
As at August 31, 2007 and November 30, 2006
(Amounts expressed in US Dollars)

                                                       August 31,   November 30,
                                                          2007          2006
                                                      (Unaudited)    (Audited)
                                                           $              $
                                     ASSETS

CURRENT
   Cash and cash equivalents
     5,844,347           1,463,833
   Prepaid expenses and other (Note 9)                  35,510           4,452
                                                 --------------   --------------

Total Current Assets                                 5,879,857       1,468,285
Plant and Equipment, net (Note 4)                       10,141               -
                                                 --------------   --------------

TOTAL ASSETS                                         5,889,998       1,468,285
                                                 ==============   ==============

                                   LIABILITIES
CURRENT LIABILITIES
   Accounts payable and accrued liabilities            154,128         104,011
   Loans from Directors/Shareholders (Note 7)            1,650           4,227
                                                 --------------   --------------

Total Current Liabilities                              155,778         108,238
                                                 --------------   --------------

                              STOCKHOLDERS' EQUITY

Capital Stock (Note 5)                                  14,330          11,365
Additional Paid-In Capital                           9,943,944       3,198,180
Deficit Accumulated During the Development Stage    (4,224,054)     (1,849,498)
                                                 --------------   --------------

Total Stockholders' Equity                           5,734,220       1,360,047
                                                 --------------   --------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY           5,889,998       1,468,285
                                                 ==============   ==============

         See condensed notes to unaudited interim financial statements.

                                       1

<PAGE>


SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Interim Statements of Operations
For the nine months and three months ended August 31, 2007 and August 31, 2006
(Amounts expressed in US Dollars)
(Unaudited)

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


                                                      For the       For the       For the       For the
                                        Cumulative   nine months   nine months  three months  three months
                                           since        ended        ended         ended         ended
                                         Inception    August 31,    August 31,    August 31,    August31,
                                                        2007          2006          2007          2006
                                                          $             $             $             $
                                        ----------   -----------   -----------   -----------  ------------
     OPERATING EXPENSES:

   Research and Product Development Cost 1,513,621      975,321       218,200       342,744       128,025
   Amortization                              1,553        1,553             -           794             -
   General and administration (note 6)   2,845,816    1,534,618        75,763       236,674        26,428
                                       ------------ ------------  ------------  ------------  ------------

   TOTAL OPERATING EXPENSES              4,360,990    2,511,492       293,963       580,212       154,453
                                       ------------ ------------  ------------  ------------  ------------

   LOSS FROM OPERATIONS                 (4,360,990)  (2,511,492)     (293,963)     (580,212)     (154,453)

     Other Income-Interest                 136,936      136,936             -        74,270             -
                                       ------------ ------------  ------------  ------------  ------------

   LOSS BEFORE INCOME TAXES             (4,224,054)  (2,374,556)     (293,963)     (505,942)     (154,453)

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

   NET LOSS                             (4,224,054)  (2,374,556)     (293,963)     (505,942)     (154,453)
                                       ------------ ------------  ------------  ------------  ------------

   Loss per share - basic and diluted                     (0.17)        (0.04)        (0.04)        (0.02)


   Weighted average common shares outstanding        13,644,366     7,989,179    14,330,050     8,367,054
                                       ------------ ------------  ------------  ------------  ------------

</TABLE>



         See condensed notes to unaudited interim financial statements.


                                       2

<PAGE>


SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Interim Statements of Cash Flow
For the nine months ended August 31, 2007 and August 31, 2006
(Amounts expressed in US Dollars)
(Unaudited)

<TABLE>
               <S>                                         <C>                <C>                 <C>
                                                                             For the            For the
                                                                           nine months         nine months
                                                         Cumulative           ended              ended
                                                       since inception    August 31, 2007    August 31, 2006
                                                              $                   $                  $

   CASH FLOWS FROM OPERATING ACTIVITIES
       Net loss for the period                           (4,224,054)        (2,374,556)          (293,963)
         Items not requiring an outlay of cash:
        Issue of shares for professional services           154,000             80,000              8,750
        Stock based compensation                          1,955,224            905,284                  -
        Amortization                                          1,553              1,553                  -
        Loss on cancellation of stock                        34,400             34,400                  -
        Changes in non-cash working capital:
         Accounts payable and accrued liabilities           154,128             50,117             (6,916)
        Prepaid expenses and other                          (35,510)           (31,058)                 -
                                                      --------------     --------------      -------------

   NET CASH USED IN OPERATING ACTIVITIES                 (1,960,259)        (1,334,260)          (292,129)
                                                      --------------     --------------      -------------
   CASH FLOWS FROM INVESTING ACTIVITIES

        Acquisition of Plant and Equipment                  (11,694)           (11,694)                 -
                                                      --------------     --------------      -------------

   NET CASH USED IN INVESTING ACTIVITIES                    (11,694)           (11,694)                 -
                                                      --------------     --------------      -------------

   CASH FLOWS FROM FINANCING ACTIVITIES
      Loans/ (Repayments) from directors/shareholders         1,650             (2,577)               758
      Net Proceeds from issuance of common shares         7,769,650          5,779,045            545,650
      Cancellation of stock                                 (50,000)           (50,000)                 -
      Exercise of stock options                              95,000                  -                  -
                                                      --------------     --------------      -------------

   NET CASH PROVIDED BY FINANCING ACTIVITIES              7,816,300          5,726,468            546,408
                                                      --------------     --------------      -------------

   NET INCREASE IN CASH AND CASH
      EQUIVALENTS FOR THE PERIOD                          5,844,347          4,380,514            254,279

     Cash and cash equivalents, beginning of period               -          1,463,833                126
                                                      --------------     --------------      -------------

   CASH AND CASH EQUIVALENTS, END OF PERIOD               5,844,347          5,844,347            254,405
                                                      ==============     ==============      =============

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

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

</TABLE>



     The  accompanying  condensed  notes are an integral part of these unaudited
interim financial statements.


                                       3

<PAGE>


SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Interim Statement of Changes in Stockholders' Equity
For the nine months ended August 31, 2007 and for the period from inception
(March 1, 2005) to August 31, 2006
(Amounts expressed in US Dollars)

<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)
                               -----------  ---------  ---------  -----------  ----------
Balance as of
 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
Exercise of stock options         950,000        950     94,050            -      95,000
Issuance of common shares
 for cash (net of agent
 commission)                      200,000        200    179,785            -     179,985
Stock subscriptions received                          1,165,500            -   1,165,500
Stock based compensation                -          -  1,049,940            -   1,049,940
Net loss for the year                   -          -          -   (1,660,799) (1,660,799)
                               -----------  ---------  ---------  ----------- -----------
Balance as of
November 30, 2006 (Audited)    11,364,880     11,365  3,198,180   (1,849,498)  1,360,047

Issuance of common shares
  for stock subscriptions
  received in prior year        1,165,500      1,165     (1,165)           -           -

Issuance of common shares
  for cash                      1,170,670      1,171  1,169,499                1,170,670
Stock based compensation                                204,986                  204,986
Issuance of common shares
  for cash and services            50,000         50    154,950                  155,000
Stock based compensation                                700,298                  700,298
Issuance of common shares
  for cash (net of expenses)    2,139,000      2,139  4,531,236                4,533,375
Cancellation of stock          (1,560,000)    (1,560)   (14,040)                 (15,600)

Net loss for the nine month
  period ended August 31, 2007          -          -          -   (2,374,556) (2,374,556)
                               -----------  ---------  ---------  ----------- -----------
Balance as of August 31, 2007
(Unaudited)                    14,330,050     14,330  9,943,944   (4,224,054)  5,734,220
                               -----------  ---------  ---------  ----------- -----------

</TABLE>


     The  accompanying  condensed  notes are an integral part of these unaudited
interim financial statements.

                                       4

<PAGE>


SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Condensed Notes to Interim Financial Statements
August 31, 2007
(Amounts expressed in US Dollars)
(Unaudited)


   1.   BASIS OF PRESENTATION

        The accompanying unaudited 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, 2007.
        Interim financial statements should be read in conjunction with the
        company's annual audited financial statements for the year ended
        November 30, 2006.

        The Company was incorporated under the laws of the state of Delaware on
        March 1, 2005. The interim financial statements include the accounts of
        Security Devices International Inc. (the "Company").

   2.   NATURE OF OPERATIONS

        The Company is currently in the advanced stages of developing LEKTROX, a
        unique line of wireless electric ammunition for use in military,
        homeland security, law enforcement, and professional and home security
        scenarios. LEKTROX has been specially designed for use with standards
        issue riot guns, M203 grenade launchers and regular 12-guage shotguns.
        This will allow military, law enforcement agencies etc. to quickly
        deploy LEKTROX without the need for lengthy, complex training methods or
        significant functional adjustments to vehicles or personal equipment.
        Simplicity of use is also a key benefit for the home security market
        where most users have little or no specialized training. LEKTROX is a
        3rd generation electric solution. First generation solutions were
        electric batons and hand-held stun guns which had a range of arm's
        length. 2nd generations were the wired electric charge solutions. 3rd
        generations are the wireless electric bullets. Currently, there is still
        no 3rd generation wireless electric bullet on the market.

        The Company is in the development stage and has not yet realized
        revenues from its planned operations. The Company has incurred a loss of
        $ 2,374,556 during the nine month period ended August 31, 2007. At
        August 31, 2007, the Company had an accumulated deficit during the
        development stage of $4,224,054 which includes a non- cash stock based
        compensation cost of $1,955,224. The Company has funded operations
        through the issuance of capital stock. During the year ended November
        30, 2006 the Company raised $1,982,333 primarily through issue of common
        stock. (See note 5). During the quarter ended February 28, 2007, the
        company raised $1,170,670

                                       5

<PAGE>

SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Condensed Notes to Interim Financial Statements
August 31, 2007
(Amounts expressed in US Dollars)
(Unaudited)


   2.   NATURE OF OPERATIONS (cont'd)


        through issue of common stock. During the quarter ended May 31, 2007,
        the Company raised an additional $4,608,375 (net of expenses of
        $279,375) through the issue of Common stock. The company has a working
        capital of $ 5,724,079 and shareholders' equity of $5,734,220 as at
        August 31, 2007. Management's plan is to continue raising additional
        funds through future equity or debt financing until it achieves
        profitable operations.

  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.

   4.   PLANT AND EQUIPMENT, NET

        Plant and equipment are recorded at cost less accumulated depreciation.
        Depreciation is provided commencing in the month following acquisition
        using the following annual rate and method:

                Computer equipment          30%   declining balance method


                                          Aug 31, 2007          November 30,2006
                                           Accumulated               Accumulated
                                  Cost    Amortization      Cost    Amortization
                                   $            $             $            $
                             ---------------------------------------------------

       Computer equipment        11,694       1,553            -            -
                             ------------  -----------  ----------   ---------

                                 11,694       1,553            -            -
                             ------------  -----------  ----------   ---------

        Net carrying amount            $10,141                    $Nil
                                       -------                    ----

   5.     ISSUANCE OF CAPITAL STOCK

          Year ended November 30, 2006
          ----------------------------

            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.

                                       6

<PAGE>

SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Condensed Notes to Interim Financial Statements
August 31, 2007
(Amounts expressed in US Dollars)
(Unaudited)

   5.     ISSUANCE OF CAPITAL STOCK (cont'd)

          Year ended November 30, 2006 (cont'd)
          -------------------------------------

          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.

          v)   The company directors exercised 950,000 stock options to purchase
               950,000  common  shares for a total  consideration  of $95,000 on
               November 1, 2006.

          vi)  On  November  29,  2006 the company  authorized  the  issuance of
               200,000  common  shares  for cash  @$1.00  per  common  share.  A
               commission  of $20,015  was paid to the agent and this  amount is
               netted with  additional  paid in capital.  The proceeds  received
               were part of the Private offering effective November 20, 2006.

          vii) As at November 30, 2006 the company  received stock  subscription
               for  $1,165,500.  This  was  also  part of the  private  offering
               effective  November  20,  2006.  The Company  closed this private
               offering on December 12, 2006 when it had  completed  the sale of
               2,536,170  shares  of its  common  stock  to a group  of  private
               investors.

        Nine months ended August 31, 2007
        ---------------------------------

        On December 12, 2006 the Company completed the sale of 2,536,170 shares
        of its common stock to a group of private investors. The shares were
        sold in the private offering at a price of $1.00 per share and are
        restricted securities as that term is defined in Rule 144 of the
        Securities and Exchange Commission.

                                       7

<PAGE>

SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Condensed Notes to Interim Financial Statements
August 31, 2007
(Amounts expressed in US Dollars)
(Unaudited)

   5.   ISSUANCE OF CAPITAL STOCK (cont'd)

        Nine months ended August 31, 2007 (cont'd)
        ------------------------------------------

        The Company had already issued 200,000 common shares on November 29,
        2006 and it issued the balance 2,336,170 shares on December 12, 2006.
        The Company relied upon the exemption provided by Section 4(2) of the
        Securities Act of 1933 for the sale of these shares.

        On March 12, 2007, the Company authorized the issuance of 50,000 common
        shares at $1.50 per share for a total cash consideration of $75,000 to a
        consultant who rendered investor relation services to the Company during
        the quarter ended May 31, 2007.

        The market price of the total stock on the date of issuance was
        $155,000. The difference of $80,000 between the market price of the
        total stock ($155,000) and the issued price ($75,000) represents the
        estimated fair value of the consultant's services. The par value of the
        shares in the amount of $50 was credited to share capital and the
        balance of $154,950 credited to additional paid-in capital and shown as
        issuance of common shares for cash and services in interim statement of
        changes in stockholder's equity.

        The Company had entered into an amended agreement in February 2007, with
        a director regarding development of its "Electrical Shocker" ("ES")
        technology. Pursuant to the original agreement executed in November
        2006, the director was paid a total of $38,000 which included $22,000
        during the last quarter of 2006 and an additional $16,000 in January
        2007. The Company has expensed this payment of $22,000 as Research and
        Product Development cost during 2006 and also expensed the balance
        $16,000 to Research and Product Development cost in the first quarter of
        2007. In addition, the director was paid $62,000 in February, 2007 upon
        signing the amended agreement. The Company expensed this payment of
        $62,000 to Research and Product Development in the first quarter of
        2007. The director in return had released the Company from a prior
        obligation to pay royalty from the sale of any product developed using
        this technology. In the absence of acceptance of the ES technology by
        the Company, the Company cancelled 1,560,000 shares and the director was
        paid $50,000 on March 12, 2007 in accordance with the amended agreement.
        The Company accounted for this transaction under the constructive
        retirement method in the second quarter of 2007. The cancelled shares
        reverted to authorized but unissued status. The stock and additional
        paid-in-capital amounts were reduced with a total of $15,600 and a debit
        of $34,400 to retained earnings, being the excess of purchase cost over
        the original issuance.

                                       8

<PAGE>

SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Condensed Notes to Interim Financial Statements
August 31, 2007
(Amounts expressed in US Dollars)
(Unaudited)

   5.   ISSUANCE OF CAPITAL STOCK (cont'd)

        Nine months ended August 31, 2007 (cont'd)
        ------------------------------------------

        On April 25, 2007 the Company sold 1,998,500 shares of its common stock
        to a group of private investors. As part of this same financing the
        Company sold an additional 140,500 shares to private investors on May 4,
        2007. The shares were sold at a price of $2.25 per share and are
        restricted securities as that term is defined in Rule 144 of the
        Securities and Exchange Commission. In connection with the sale of these
        2,139,000 shares, the Company paid a commission of $240,638 to the sales
        agent for the offering and incurred legal and other expenditure of
        $38,737.

        The sales agent also received warrants which allow them to purchase
        106,950 shares of the Company's Common stock at a price of $2.81 per
        share. The warrants expire in 2009.

        The Company agreed to file a registration statement with the Securities
        and Exchange Commission registering the resale of the shares sold to the
        investors, as well as the shares issuable upon the exercise of the
        warrants issued to the sales agent. The registration statement was
        declared effective on September 20, 2007.

        The Company relied upon the exemption provided by Section 4(2) of the
        Securities Act of 1933 for the sale of these securities.

    6.  STOCK BASED COMPENSATION

        Per SEC Staff Accounting Bulletin 107, Topic 14.F, "Classification of
        Compensation Expense Associated with Share-Based Payment Arrangements"
        stock based compensation expense is being presented in the same lines as
        cash compensation paid. As such, stock based compensation is no longer
        presented separately. Effective January 7, 2007 the company appointed a
        CFO and granted stock options to acquire 125,000 common shares under its
        Non-Qualified Stock Option Plan. The exercise price for the options was
        set at $1.50 per share. These options vest immediately and expire on
        January 17, 2012. The stock based compensation cost of $204,986 has been
        expensed to general and administration.

                                       9

<PAGE>

SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Condensed Notes to Interim Financial Statements
August 31, 2007
(Amounts expressed in US Dollars)
(Unaudited)

    6.  STOCK BASED COMPENSATION (cont'd)

        Effective April 23, 2007, the board of directors granted the following
        options under its Non-Qualified Stock Option Plan:

          1.   Options to two  consultants to acquire  150,000 common share each
               for a total of 300,000  shares.  The  exercise  price for 300,000
               options  was  set  at  $2.75  per  share.   These   options  vest
               immediately   and  expire  on  April  23,   2012.   Stock   based
               compensation  cost of $622,074  has been  expensed to general and
               administration expense.

          2.   Options to two  consultants  to acquire  20,000 common share each
               for a total of 40,000  shares.  The  exercise  price  for  40,000
               options  was  set  at  $3.60  per  share.   These   options  vest
               immediately   and  expire  on  January  29,  2012.   Stock  based
               compensation  cost of $78,224  has been  expensed  to general and
               administration expense.

        The fair value of each grant was estimated at the grant date using the
        Black-Scholes option-pricing model. The Black-Scholes option pricing
        model requires the use of certain assumptions, including expected terms,
        expected volatility, expected dividends and risk-free interest rate to
        calculate the fair value of stock-based payment awards. The assumptions
        used in calculating the fair value of stock option awards involve
        inherent uncertainties and the application of management judgment. The
        estimated volatility used is the historic volatility. The expected term
        calculation is based upon the expected term the option is to be held,
        which is the full term of the option. The risk-free interest rate is
        based upon the U.S. Treasury yield in effect at the time of grant for an
        instrument with a maturity that is commensurate with the expected term
        of the stock options. The dividend yield of zero is based on the fact
        that we have never paid cash dividends on our common stock and we have
        no present intention to pay cash dividends. The expected forfeiture rate
        of 0% is based on immediate vesting of stock options.

        For the nine-month period ended August 31, 2007, the Company has
        recognized in the financial statements, stock-based compensation costs
        as per the following details. The fair value of each option used for the
        purpose of estimating the stock compensation is based on the grant date
        using the Black-Scholes option pricing model with the following weighted
        average assumptions:


                                       10

<PAGE>

SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Condensed Notes to Interim Financial Statements
August 31, 2007
(Amounts expressed in US Dollars)
(Unaudited)

      6. STOCK BASED COMPENSATION (cont'd)

                                                        Options       Options
                                                        granted       granted
                                                     April 23,2007  Jan 7 , 2007
                                                     ------------   ------------

           Risk free rate                                 4.25%          4.25%
           Volatility factor                            106.04%        122.84%
           Expected dividends                              nil            nil
           Forfeiture rate                                   0%             0%

           Expected life                               5 years        5 years
           Range of exercise prices                   $2.75-3.60        $1.50
           Market price of Company's common stock
             on date of grant                            $2.65          $1.90
           Grant date fair value of options              $2.06          $1.64

           Total number of options granted             340,000        125,000
           Stock-based compensation cost
              expensed                                $700,298       $204,986
           Unexpended stock-based compensation
              deferred over to next period                 nil            nil

     7.   RELATED PARTY TRANSACTIONS

          During the nine month period ended August 31, 2007,  all out of pocket
          expenses of directors/promoters  were expensed. The Directors maintain
          a current account with the Company to meet the operating expenses.  As
          of August 31,  2007,  there was a payable of $1,650 to the  directors.
          This balance is unsecured and bears interest at 4% p.a.

     8.   COMMITMENTS

          In March 2007, the Company entered into an Investor  Relation  Service
          Agreement for a period of twelve months  commencing the first of April
          2007. The consultant will represent the Company in European  countries
          for disseminating investor relation information and creating awareness
          in the European  financial  community.  The Company  agreed to pay the
          consultant a total of $205,000  for the  services to be provided  over
          the twelve  month  period and  payment of  $100,000  in  advance.  The
          Company expensed  $85,416during the nine month period ended August 31,
          2007 and an amount of $14,584 is  included  in  prepaid  expenses  and
          other.

                                       11

<PAGE>

SECURITY DEVICES INTERNATIONAL, INC.
(A Development Stage Enterprise)
Condensed Notes to Interim Financial Statements
August 31, 2007
(Amounts expressed in US Dollars)
(Unaudited)


   8. COMMITMENTS (cont'd)

        In May 2007 the Company entered into a consulting agreement with a
        consultant for business development and active marketing of the
        Company's technology and products. The initial time frame of the
        agreement is from May to November 2007, with a planned extension, at the
        mutual agreement of both parties. Compensation to the consultant for the
        services is $5,000 per month.

   9.   PREPAID EXPENSES AND OTHER

        In addition to prepayments for Investor relation services for $ 14,584,
        prepaid expenses also include prepayments made for directors' and
        officers insurance for $17,335.

   10.  SUBSEQUENT EVENTS

        On July 11, 2007 the Company had authorized the issuance of warrants to
        two directors. These warrants allowed one director to purchase 250,000
        shares at a price of $0.50 per share and the other director to purchase
        50,000 shares at price of $0.50 per share. These warrants were cancelled
        by the Company and reissued on October 5, 2007 on similar terms and
        conditions except that the expiry period for the warrants expires on
        October 5, 2014. The fair value of these warrants issued are calculated
        under Black- Scholes valuation method at $0.88 per warrant using
        historic volatility factor at 43.06%, expected dividends of $nil, risk
        free rate of 4.5% and forfeiture rate of 0%. The market price of the
        Company's common share on the date of grant was $1.20. The Company will
        expense $263,681 under general and administration expense and credit
        this amount to additional paid in capital during the quarter ended
        November 30, 2007.
        On September 6, 2007 the Company authorized the issuance of warrants to
        one director. These warrants allow the director to purchase 17,000
        shares at a price of $ 0.50 per share. These warrants expire on May 31,
        2017. The fair value of these warrants issued are calculated under
        Black- Scholes valuation method at $1.64 per warrant using historic
        volatility factor at 42.83 %, expected dividends of $nil, risk fee rate
        of 4.5% and forfeiture rate of 0%. The market price of the Company's
        common share on the date of grant was $1.94. The Company will expense
        $27,938 under general and administration expense and credit this amount
        to additional paid in capital during the quarter ended November 30,
        2007.

        On September 20, 2007 the Company's registration statement filed in
        connection with the issuance of shares to private investors on April 25,
        2007 and May 4, 2007 was declared effective.

                                       12

<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
August 31, 2007 had not generated any revenue.

      SDI is a defense technology company which is developing LEKTROX, a unique
line of non-lethal, wireless electric ammunition for use in military, homeland
security, law enforcement, and professional and home security situations.

      The LEKTROX 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 range of the LEKTROX will provide a significant safety advantage
for law enforcement officers and security personnel.

      During the year ended November 30, 2006 substantially all of SDI's cash
expenses were related to the development of its LEKTROX technology.

      During the nine months ended August 31, 2007 more capital was available to
SDI and as a result SDI was able to spend more on research and product
development.

      During the period from inception (March 1, 2005) through August 31, 2007
SDI's operations used $1,960,259 in cash. During this period SDI:

o     purchased $11,694 of equipment,

o     borrowed $1,650 (net) from its officers and directors,

o     raised $7,719,650 from the sale of shares of its common stock,

o           raised $95,000 from three of its officers and directors upon the
            exercise of options to purchase 950,000 shares of common stock.

      SDI did not have any material future contractual obligations or off
balance sheet arrangements as of November 30, 2006 or August 31, 2007.

      SDI's plan of operation during the twelve-month-period ending August 31,
2008 is as follows:


<PAGE>


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

Completion of fully operational Long Range LEKTROX
   prototype (37-38MM) up to production file:            11/07

Completion of fully operational Long Range LEKTROX
   prototype (40MM) up to production file:               11/07

Completion of mechanical aspects of Long Range
   LEKTROX prototype (12 GUAGE)                           2/08

Completion of tooling for Long Range LEXTROX              2/08

                        Total for above:                            $1,460,000

      SDI anticipates that its capital requirements for the twelve-month period
ending August 31, 2008 will be:

      Research and Development                 $1,460,000
      General and administrative expenses         100,000
      Patent filings                               30,000
                                              -----------

           Total                               $1,590,000
                                              ===========

      SDI does not anticipate that it will need to hire any employees prior to
December 31, 2007. SDI does not expect that it will need to raise additional
capital during the twelve months ending August 31, 2008. SDI believes that its
cash on hand will satisfy its working capital needs for the next eighteen
months.

      SDI does not have any commitments or arrangements from any persons to
provide SDI with any additional capital it may need.

Controls and Procedures
-----------------------

      Sheldon Kales, the Company's Chief Executive Officer and Rakesh Malhotra,
the Company's Principal Financial Officer, have evaluated the effectiveness of
the Company's disclosure controls and procedures (as defined in Rule 13a-15(e)
of the Securities Exchange Act of 1934) as of the end of the period covered by
this report, and in their opinion the Company's disclosure controls and
procedures are effective. There were no changes in the Company's internal
controls over financial reporting that occurred during the fiscal quarter that
have materially affected, or are reasonably likely to materially affect, the
Company's internal controls over financial reporting.

<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;

                                     SECURITY DEVICES INTERNATIONAL INC.



October 12, 2007                    By  /s/ Sheldon Kales
                                        ------------------------------------
                                        Sheldon Kales, President and Chief
                                            Executive Officer



October 15, 2007                    By  /s/ Rakesh Malhotra
                                        ------------------------------------
                                        Rakesh Malhotra, Principal Financial and
                                            Accounting Officer








</TEXT>
</DOCUMENT>
