UNITED STATES ~~SECURITIES AND EXCHANGE COMMISSION~~

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~~THE ofSECURITIES ~~Report~~EXCHANGE ~~(date~~ACT ~~of earliest event reported): May 20, 2005~~OF 1934

Date of Report (date of earliest event reported): May 26, 2005

Ault Incorporated

(Exact name of Registrant as specified in its charter)

Minnesota	0-12611	41-0842932
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
7105 Northland Terrace Minneapolis, MN 55428-1028		55428
(Address of principal executive offices)		(Zip Code)
Registrant’s telephone number, including area code: (763) 592-1900

Registrant’s telephone number, including area code: (763) 592-1900

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

On May 27, 2005, Ault Inc. entered into an agreement to lease a portion of its headquarter building (13,313 square feet) that had been sold to Dane Industries Inc. The lease is for a period of twenty-seven months at $18,860.08 per month.

Item 2.01 Completion of Acquisition or Disposition of Assets

On May 2026, 2005, Ault Inc. (“Ault”) completed the sale of its ~~wholly~~headquarter ~~owned~~building ~~subsidiary~~(64,000 ~~Ault~~square ~~Korea~~feet) ~~Corp.~~and ~~(“Ault~~land ~~Korea”),~~ to ~~JEC~~Dane ~~Korea~~Industries CoInc., ~~Ltd.~~ (“~~JEC~~Dane”) for $3.885 million. The ~~transaction~~ transaction results in a book loss of approximately $~~700~~100,000. The agreement includes the receipt of $1.5 million in cash and ~~$2.3 million in a secured note. The sale includes all assets and liabilities of Ault Korea Corporation and~~ the ~~use~~repayment of the ~~“Ault~~mortgage ~~Korea”~~on ~~name in Korea for a period of three years. Ault Korea includes~~ the ~~property in Seoul, South Korea and approximately 110 employees~~building. As part of the terms of the agreement, JEC has the rights to sell power conversion products to Korea while Ault will have rights to sell the same power conversion products throughout the rest of the world. Prior to this transaction, ~~JEC was a supplier of Ault, but otherwise~~ no material ~~relationship~~ relationship existed between Ault and ~~JEC~~Dane, or their respective affiliates, directors or officers, or any associates of their directors and officers.

~~Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet~~Exhibit Index

~~The credit arrangement with Wells Fargo is an asset-based credit facility of $7 million, secured by company assets~~99. At May 20, 2005 there were no borrowings against this facility. The financing agreement contains financial covenants. These covenants require the Company, among other things, to maintain a minimum income before taxes, and also impose certain limitations on additional capital expenditures and the payment of dividends.1 AtPress ~~the~~release ~~end~~dated ~~of April~~May ~~2005~~27, ~~the Company’s actual income before taxes did not meet the minimum of the credit agreement~~2005. The Company will attempt to obtain a waiver or amendment from the lender on its credit facility on reasonable terms. The credit facility could be accelerated, and the default interest rate could rise to prime plus 5%.

~~Exhibit~~99.2 Lease agreement dated May ~~Index~~27, 2005.

~~99.1 Press release dated May 20, 2005.~~2

2SIGNATURE

~~SIGNATURE~~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, thereunto duly authorized.

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, thereunto duly authorized.

		AULT INCORPORATED

		By:	/s/ Donald L. Henry
		Donald L. Henry
		Chief Financial Officer


Dated:	May 31, 2005

	AULT INCORPORATED
	By:	/s/ Donald L. Henry
	Donald L. Henry
	Chief Financial Officer
Dated: May 25, 2005

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