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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of report (Date of earliest event reported) January 16, 2007
ELECTRONIC SENSOR TECHNOLOGY, INC.
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(Exact Name of the Registrant as Specified in Charter)
Nevada 000-51859 98-0372780
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
1077 Business Center Circle, Newbury Park, California 91320
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(Address of Principal Executive Offices)
Registrant's telephone number, including area code (805) 480-1994
Not Applicable.
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
GRANT OF STOCK OPTIONS
On January 16, 2007, the following options to acquire common stock, par value
$0.001 per share, of Electronic Sensor Technology, Inc. (the "Registrant") were
granted at an exercise price of $0.24, under the Registrant's 2005 Stock
Incentive Plan. The option grants were evidenced by Notices of Grant of Stock
Options and Option Agreements substantially in the form attached as Exhibit 10.2
to the annual report of the Registrant on Form 10-KSB for the fiscal year ended
December 31, 2004 filed with the Commission on April 15, 2005.
NAME OF OPTIONEE TITLE NUMBER OF STOCK OPTIONS
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Teong Lim President, Chief Executive
Officer and Director 100,000
Edward Staples Chief Scientific Officer and
Director 50,000
Philip Yee Secretary, Treasurer and Chief
Financial Officer 100,000
Gary Watson Vice President of Engineering 100,000
James Frey Chairman of the Board of
Directors 200,000
Francis Chang Director 50,000
Ken Zeiger Director 50,000
Mike Krishnan Director 150,000
James Wilburn Director 150,000
Lewis Larson Director 100,000
Ty Hoang Senior Operator 12,000
Gail Kopp Buyer 12,000
Travis Hill Senior Technician 9,500
David Finestone,Sr. Senior Operator 9,900
Alicia Sanchez Senior Operator 12,600
Catherine Koreitz Sales Manager 18,600
Kelly Dang Accounting Manager 18,600
Salim Motiwala Senior Mechanical Engineer 16,200
Jack Yu Software Engineer 14,700
John Rice Sales Engineer 9,800
Russ Coplin Senior Operator 9,300
Frank Zhude Software Manager 27,900
The options granted to Dr. Lim, Dr. Staples, Mr. Zeiger, Mr. Hoang, Ms. Kopp,
Mr. Hill, Mr. Finestone, Sr., Ms. Sanchez, Ms. Koreitz, Ms. Dang, Mr. Motiwala,
Mr. Yu, Mr. Rice, Mr. Coplin and Mr. Zhude will vest as follows: one quarter of
the option shares will vest on January 16, 2008, one quarter on January 16,
2009, one quarter on January 16, 2010 and one quarter on January 16, 2011.
The options granted to Mr. Frey will vest as follows: 100,000 of the option
shares were fully vested upon grant of the options, 25,000 will vest on February
21, 2007 and 75,000 will vest on January 16, 2008.
The options granted to Mr. Krishnan will vest as follows: 75,000 of the option
shares were fully vested upon grant of the options, 25,000 will vest on February
20, 2007 and 50,000 will vest on January 16, 2008.
The options granted to Mr. Wilburn will vest as follows: 75,000 of the option
shares were fully vested upon grant of the options, 25,000 will vest on
September 8, 2007 and 50,000 will vest on January 16, 2008.
The options granted to Mr. Chang will vest as follows: one half of the option
shares were fully vested upon grant of the options and one half will vest on
November 1, 2007.
The options granted to Mr. Larson will vest as follows: one half of the option
shares were fully vested upon grant of the options and one half will vest on
January 16, 2008.
The options granted to Mr. Watson will vest as follows: 12,500 of the option
shares will vest on January 16, 2008, 12,500 will vest on January 16, 2009,
12,500 will vest on January 16, 2010, 12,500 will vest on January 16, 2011,
12,500 will vest on September 8, 2007, 12,500 will vest on September 8, 2008,
12,500 will vest on September 8, 2009 and 12,500 will vest on September 8, 2010.
The options granted to Mr. Yee will vest as follows: 15,000 of the option shares
were fully vested upon grant of the options, 6,250 will vest on January 16,
2008, 6,250 will vest on January 16, 2009, 6,250 will vest on January 16, 2010,
6,250 will vest on January 16, 2011, 15,000 will vest on April 3, 2007, 15,000
will vest on April 3, 2008, 15,000 will vest on April 3, 2009 and 15,000 will
vest on April 3, 2010.
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 hereunto duly authorized.
ELECTRONIC SENSOR TECHNOLOGY, INC.
Date: January 18, 2007 By: /s/ Philip Yee
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Name: Philip Yee
Title: Secretary, Treasurer and Chief Financial
Officer