UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 2030, 2010

PepperBall Technologies, Inc.

(Exact name of registrant as specified in its charter)

Colorado		001-32566		20-1978398
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

6142 Nancy Ridge Drive, Suite 101

San Diego, CA 92121

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (858) 638-0236

None

(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:

o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01 Entry into a Material Definitive Agreement

Note ~~and~~Extension ~~Warrant Purchase~~ Agreement, ~~Convertible Promissory Notes,~~ and Warrants

OnCertain ~~December~~of ~~20, 2010, PepperBall Technologies, Inc., a Colorado corporation (~~the “Company”)'s ~~entered~~previously ~~into~~issued secured ~~a Note~~ and ~~Warrant~~unsecured ~~Purchase~~10% notes ~~Agreement~~that ~~(the~~had ~~“Note and Warrant Purchase Agreement”) with investors for the private placement of Convertible Promissory Notes (the “Notes”) having~~ a ~~principal~~scheduled ~~amount~~maturity date of ~~$145,000. Subject to the conversion provisions set forth in the Notes, the outstanding principal amount under the Notes is due and payable on~~ December 31, ~~2012 (the “Maturity Date”). The Notes bear simple interest at the rate of 10% per annum~~2010, ~~and~~have ~~interest~~been ~~shall~~amended beby ~~paid~~mutual ~~quarterly~~agreement ~~in arrears beginning~~ with the ~~quarter~~holders ~~ended December 31, 2010, with such interest~~ to bea ~~paid~~revised bymaturity ~~the~~date ~~tenth day~~ of ~~the~~December ~~month~~31, ~~following quarter end~~2012. As The ~~security~~notes ~~for~~were ~~the~~originally issued ~~Company’s obligations, the Company granted the purchasers of the Notes a security interest~~ in ~~all~~2009 ofto ~~the~~2010 ~~Company’s personal property located in the State of California (the “Security Interest”); provided that the Notes~~ and ~~the~~included ~~Security Interest are subordinated to the obligations of the Company to Primary Funding Corporation~~$1, ~~the James Simpson Foundation~~530,000 ~~and~~in ~~J.A.~~secured ~~and G.L. Simpson Trust. Further~~notes, ~~the~~subject ~~purchasers of the Notes agreed that the Notes will be subordinate~~ to subordination ~~any~~agreements ~~additional accounts receivable~~ and~~/or~~ ~~inventory~~$2,572,000 ~~line of credit obtained by the Company~~ in ~~the~~unsecured ~~future~~notes. ~~The Notes were issued on December 20, 2010 and may be prepaid at any time upon thirty days’ notice.~~

AtAs ~~the~~consideration ~~sole~~for ~~discretion of~~ the ~~holder,~~extension ~~the outstanding principal amount~~ of the Notes, ~~and~~warrants ~~any~~to ~~accrued~~purchase ~~but unpaid interest thereon may be converted into~~ shares of the Company’s Common Stock, (or at the ~~"Common~~option ~~Stock")~~of orthe ~~non-voting~~Investor ~~Series~~shall Cbe ~~Preferred~~convertible ~~Stock~~into (the "Company’s Preferred Stock"), atno apar ~~conversion~~value ~~price~~per ofshare, at $0.05 per share, ~~provided~~will ~~that~~be ~~conversion~~issued. The ~~requests~~number ~~must~~of beWarrants ~~made~~to inpurchase ~~minimum~~said ~~amounts~~Common ofStock ~~the~~or ~~greater~~Preferred ofStock ~~$25,000~~shall orbe ~~the~~equal ~~then~~to ~~remaining~~fifty ~~balance~~percent of athe ~~holder’s~~amount ~~Note~~of the Notes divided by $0.05.

As ~~additional~~part ~~consideration~~of the note agreements and extension provisions for the ~~issuance~~investors ofwho ~~the~~participated ~~Notes,~~in ~~warrants~~the toclosing ~~purchase~~which ~~shares~~was ofdescribed in the Company’'s Form ~~Common~~8-K ~~Stock~~filed as of December 20, ~~(or~~2010, atthose investors, to the ~~option~~extent 1) that they where existing holders of the ~~Investor~~Company's ~~exercisable~~10% ~~into~~Notes ~~shares~~and of2) they ~~Preferred~~invested in ~~Stock)~~the ~~will~~December be20, ~~issued. The~~2010 ~~number~~Closing, had the conversion price of ~~Warrants~~the toexisting ~~purchase~~prior ~~said~~Notes ~~Common~~reduced to ~~Stock~~$.05 orper ~~Preferred~~common ~~Stock~~share ~~shall~~for bea amount equal to the ~~amount~~level of their ~~the~~investment ~~Notes~~in ~~divided~~the new ~~by $0~~Notes.~~05.~~

The ~~Company~~description ~~plans~~of tothe ~~use~~transaction ~~the~~set ~~proceeds~~forth ofabove ~~the~~is ~~Notes~~qualified toin ~~make~~its ~~payments~~entirety onby ~~the~~reference ~~amounts~~to ~~outstanding~~the ~~under~~Secured ~~Loan~~Note ~~Agreements~~Extension ~~with~~Agreement, ~~James~~Unsecured ~~Simpson~~Note ~~Foundation~~Extension Agreement, and ~~J.A.~~Warrant, ~~and~~forms ~~G.L.~~of ~~Simpson~~which ~~Trust,~~are tofiled ~~fund~~with ~~sales~~this ~~and~~current ~~marketing~~report ~~and~~as ~~inventory~~Exhibits ~~expenses~~10.1, 10.2, and ~~for~~10.3, ~~other working capital purposes~~respectively.

~~The~~Item ~~Notes~~2.03 Creation ~~and the securities issuable upon conversion~~ of ~~the~~a ~~Notes~~Direct ~~have~~Financial ~~not~~Obligation ~~been~~or ~~and~~an ~~will~~Obligation ~~not be registered~~ under ~~the Securities Act in reliance upon~~ an ~~exemption~~Off-Balance ~~from~~Sheet ~~registration~~Arrangement ~~provided by Section 4(2)~~ of ~~the~~a Securities Act and/or Regulation D promulgated thereunder. Such securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.Registrant

The description of the transaction set forth above is qualified in its entirety by reference to the Note and Warrant Purchase Agreement, Convertible Promissory Note, and Warrant, forms of which are filed with this current report as Exhibits 10.1, 10.2, and 10.3, respectively.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance SheetArrangement of a Registrant

The information set forth above under Item 1.01, Entry into a Material Definitive Agreement, is hereby incorporated by reference into this Item 2.03.

Item 3.02 Unregistered Sales of Equity Securities

The information set forth above under Item 1.01, Entry into a Material Definitive Agreement, is hereby incorporated by reference into this Item 3.02.

Item 75.~~01 Regulation~~02 Departure FDof ~~Disclosure~~Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

~~On September 26, 2008, five purported shareholders filed a lawsuit in California Superior Court for Los Angeles County against PepperBall Technologies, Inc.~~ (~~f/k/a Security With Advanced Technology, Inc.~~b) ~~and certain of its officers and/or directors, which was subsequently revised and amended~~. Resignation ~~On December 15, 2010, the trial for the case was concluded with the jury finding~~ of ~~no false statements of any kind and no qualifications to their verdict in favor of defendants~~Officer.

~~The~~Effective ~~Company~~January ~~issued~~1, a2011 ~~press~~Jeffrey ~~release~~McGonegal onresigned ~~December~~as ~~20,~~Chief ~~2010,~~Financial ~~entitled,~~Officer ~~“PEPPERBALL~~(principal ~~TECHNOLOGIES~~financial ~~ANNOUNCES~~officer) ~~LITIGATION~~of ~~VICTORY~~PepperBall ~~WITH~~Technologies, ~~JURY’S DECISION”~~Inc.

(c). Appointment of Officer.

Effective January 1, 2011, Christin Lewis, age 46, was appointed to the position of Chief Financial Officer (principal financial officer) of PepperBall Technologies, Inc.

Ms. Lewis has more than 20 years of experience in financial reporting and accounting matters. Most recently she has served as Vice President of Finance for PepperBall Technologies, Inc. and over the past 10 years has been employed by PepperBall Technologies, Inc., serving in accounting and financial reporting roles for the Company and its predecessors.

Ms. Lewis graduated from San Diego State University with a Bachelor of Science in Business Administration with an Accounting emphasis.

As a result of this appointment there was no change in the compensation arrangements with Ms. Lewis. There are no family relationships between Ms. Lewis and any director or other executive officer of the Company.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

10.1		Secured Note ~~and~~Extension ~~Warrant Purchase~~ Agreement by and among the Company and the investors identified on the signature pages thereto, dated as of December 2030, 2010.
10.2		~~Form~~Unsecured ofNote ~~Convertible~~Extension ~~Promissory~~Agreement ~~Note~~ by and among the Company and the investors identified on the signature pages thereto, dated as of December 30, 2010.
10.3		Form of Warrant by and among the Company and the investors identified on the signature pages thereto.
99.1		Press release dated December 20, 2010, entitled, “PEPPERBALL TECHNOLOGIES ANNOUNCES LITIGATION VICTORY WITH JURY’S DECISION”.

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.

		PepperBall Technologies, Inc.
Date: December 21, 2010		/s/ Jeffrey G. McGonegal
Date: January 5, 2011		/s/ Christin Lewis
		Jeffrey G. McGonegal
		Christin Lewis
		Chief Financial Officer

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