On April 10, 2009, Electronic Sensor Technology, Inc. (the "Registrant") received $1 million from Halfmoon Bay Capital Ltd in exchange for a debenture bearing an interest rate of 9% with a maturity of one year. The debenture grants Halfmoon Bay a security interest in all of the intellectual property of the Registrant.

Halfmoon Bay currently owns approximately 55% of the outstanding common stock of the Registrant and beneficially owns an additional 10% of the outstanding common stock of the Registrant by virtue of the shares underlying a 9% convertible debenture issued by the Registrant to Halfmoon Bay on March 28, 2008.

A copy of the 9% debenture issued to Halfmoon Bay on April 10, 2009 is attached hereto as Exhibit 4.1 and incorporated herein by reference.

The disclosures in Item 1.01 are incorporated into this Item 2.03 by reference. Upon the occurrence of certain circumstances, such as default in payment or bankruptcy of the Registrant, the principal amount of the 9% debenture held by Halfmoon Bay, and any interest thereon, become immediately due and payable in cash.

Item 9.01      Financial Statements and Exhibits.

Exhibit No.    Description
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4.1            9% Debenture