FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * BIBEAULT DONALD B   2. Issuer Name and Ticker or Trading Symbol BSQUARE CORP /WA [BSQR] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) 110 - 110TH AVENUE, NE, SUITE 200 3. Date of Earliest Transaction (Month/Day/Year) 08/31/2007 (Street) BELLEVUE, WA 98004 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 08/31/2007   M   1,562 A $ 2.24 165,195 D   Common Stock 08/31/2007   M   1,562 A $ 2.36 166,757 D   Common Stock 08/31/2007   M   1,562 A $ 2.506 168,319 D   Common Stock 08/31/2007   M   1,563 A $ 2.1 169,882 D   Common Stock 08/31/2007   M   1,563 A $ 2.21 171,445 D   Common Stock 08/31/2007   S   7,812 D $ 5.39 163,633 D

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Stock Option (Right to Buy)

$ 2.24 (1)

08/31/2007

M

1,562 (1)

(2)

08/16/2015

Common Stock

1,562 (1)

$ 0

0

D

Stock Option (Right to Buy)

$ 2.36

08/31/2007

M

1,562

(3)

11/08/2015

Common Stock

1,562

$ 0

1,562

D

Stock Option (Right to Buy)

$ 2.506

08/31/2007

M

1,562

(4)

05/09/2016

Common Stock

1,562

$ 0

4,686

D

Stock Option (Right to Buy)

$ 2.1

08/31/2007

M

1,563

(5)

08/08/2016

Common Stock

1,563

$ 0

6,248

D

Stock Option (Right to Buy)

$ 2.21

08/31/2007

M

1,563

(6)

11/14/2016

Common Stock

1,563

$ 0

7,811

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
BIBEAULT DONALD B 110 - 110TH AVENUE, NE SUITE 200 BELLEVUE, WA 98004	X

Signatures

/s/Donald B. Bibeault		09/05/2007
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	On September 30, 2005, the common stock of BSQUARE Corporation split one-for-four. The indicated stock options were adjusted as to price and number of underlying shares from the amounts previously reported to reflect this stock split.
(2)	The option was fully vested as of August 16, 2007.
(3)	The option was vested and exercisable as to 1,562 shares as of August 8, 2007 and vests as to the remaining 1,562 on November 8, 2007.
(4)	The option was vested and exercisable as to 1,562 shares as of August 9, 2007 and vests every three months thereafter as to one-eighth of the total number of shares underlying the option at grant (12,500 shares).
(5)	The option was vested and exercisable as to 1,563 shares as of August 8, 2007 and vests every three months thereafter as to one-eighth of the total number of shares underlying the option at grant (12,500 shares).
(6)	The option was vested and exercisable as to 1,563 shares as of August 14, 2007 and vests every three months thereafter as to one-eighth of the total number of shares underlying the option at grant (12,500 shares).

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