Edgar Filing: Electronic Sensor Technology, Inc

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14C INFORMATION

Information Statement Pursuant to
Section 14(c) of the Securities Exchange Act of 1934

Check the appropriate box:

[ ] Preliminary Information Statement

[ ] Confidential, for Use of the Commission Only (as permitted by
Rule 14c-5(d)(2))

[X] Definitive Information Statement

Electronic Sensor Technology, Inc.
(Name of Registrant as Specified In Its Charter)

Payment of Filing Fee (Check the appropriate box):

[X] No fee required.

[ ] Fee computed on table below per Exchange Act Rules 14c-5(g) and 0-11.

(1) Title of each class of securities to which transaction applies:

(2) Aggregate number of securities to which transaction applies:

(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):

(4) Proposed maximum aggregate value of transaction:

(5) Total fee paid:

[ ] Fee paid previously with preliminary materials.

[ ] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.

(1) Amount Previously Paid:

(2) Form, Schedule or Registration Statement No.:

(3) Filing Party:

(4) Date Filed:

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[GRAPHIC OMITTED] Electronic Sensor Technology

1077 Business Center Circle,
Newbury Park, California 91320
(805) 480-1994

INFORMATION STATEMENT

WE ARE NOT ASKING YOU FOR A PROXY AND YOU ARE
REQUESTED NOT TO SEND US A PROXY.

To Our Shareholders:

This information statement is first being furnished on or about May
22, 2009 to shareholders of record as of April 8, 2009 (the "record date") of
Electronic Sensor Technology, Inc., a Nevada corporation (the "company," "we,"
"our," or "us"), to advise such shareholders of certain actions to be taken
without a meeting upon the written consent of the holders of a majority of the
outstanding shares of the common stock of the company. The company's 2008 annual
report is being mailed to shareholders concurrently with this information
statement. This information statement and the 2008 annual report are also
available on the Internet at: http://www.cstproxy.com/estcal/2009.

On April 30, 2009, the company received a written consent in lieu of a
meeting of shareholders from the holders of a majority of the outstanding shares
of common stock of the company entitled to vote as of the record date, in
connection with the following actions:

(1) election of directors;

(2) approval of an amendment to the company's Articles of
Incorporation to increase the number of authorized shares of
common stock of the company from 200,000,000 shares to
250,000,000 shares;

(3) approval of an amendment to the company's Articles of
Incorporation to vest authority in the Board of Directors of the
company to prescribe the classes, series and the number of each
class or series of preferred stock and the voting powers,
designations, preferences, limitations, restrictions and relative
rights granted to or imposed upon any wholly unissued series of
preferred stock; and

(4) approval of an amendment to the company's Articles of
Incorporation to clarify and restate that the purpose of the
company is to engage in any lawful act or activity for which
corporations may be organized under the General Corporation Law
of the State of Nevada.

The actions to be taken pursuant to the written consent shall not
become effective until at least twenty (20) calendar days after the mailing of
this information statement to our shareholders.

The decision to forgo holding an annual meeting of shareholders and to
rely upon the shareholders acting by written consent in lieu of an annual
meeting to ratify and approve the proposed actions is authorized by Section 1.1
of the company's bylaws, which provides that, unless otherwise required by
applicable law, the Board of Directors may choose not to hold an annual meeting
and by Section 78.320 of the Nevada Revised Statutes and Section 1.5 of the
company's bylaws, which provide that the written consent of shareholders holding
at least a majority of the voting power may be substituted for such annual
meeting. In order to eliminate the costs and management time involved in holding
an annual meeting and in order to effect or ratify the proposals as early as
possible, the Board of Directors of the company voted to utilize the written
consent of the majority shareholders.

Sincerely,

/s/ Philip Yee
------------------------
Philip Yee
Secretary, Treasurer and
Chief Financial Officer

PROPOSED ACTIONS TO BE TAKEN

This information statement contains a summary of the material aspects
of the actions approved by the Board of Directors and the holders of the
majority of the outstanding common stock of the company.

You are being provided with this information statement pursuant to
Section 14C of the Securities Exchange Act of 1934, as amended, and Regulation
14C and Schedule 14C thereunder, and, in accordance therewith, the actions set
forth below will not become effective until at least twenty (20) calendar days
after the mailing of this information statement.

Election of Directors

The Board of Directors of the company nominated the following persons
on April 28, 2009, to stand for election to the company's Board of Directors
until their successors are elected and assume office. The following slate of
nominees was approved by written consent of the majority shareholders on April
30, 2009:

Teong C. Lim Thomas Dudley Low Gay Teck

Maggie Tham William Wittmeyer

All of the above individuals are currently serving as directors of the
company. See pages 6 through 8 for biographical information regarding the
directors.

Amended and Restated Articles of Incorporation

Our Board of Directors and the holders of a majority of our
outstanding common stock have adopted and approved resolutions to amend and
restate the company's Articles of Incorporation in the form attached hereto as
Appendix A to give effect to the following amendments:

o to increase the authorized number of shares of common stock of
the company, $.001 par value per share, from 200,000,000 shares
to 250,000,000 shares;

o to vest authority in the Board of Directors of the company to
prescribe the classes, series and the number of each class or
series of preferred stock and the voting powers, designations,
preferences, limitations, restrictions and relative rights
granted to or imposed upon any wholly unissued series of
preferred stock; and

o to clarify and restate that the purpose of the company is to
engage in any lawful act or activity for which corporations may
be organized under the General Corporation Law of the State of
Nevada.

Increase in Authorized Common Stock

The Board of Directors determined that the best interests of the
company and its shareholders will be served by amending and restating the
company's Articles of Incorporation to increase the number of shares of common
stock that the company is authorized to issue from 200,000,000 shares to
250,000,000 shares in order to enable the company to maintain a sufficient
amount of authorized but unissued shares to honor the exercise or conversion of
existing warrants, debentures and options held by the company's existing
shareholders. The newly authorized shares of common stock will have voting and
other rights identical to those of the currently authorized shares of common
stock.

Possible Dilution

Our Board of Directors will have the authority to issue authorized
shares of common stock without requiring future shareholder approval of such
issuances, except as may be required by applicable law or regulations

and the company's current agreements. Accordingly, if the Board of Directors
elects to issue additional shares of common stock, such issuance could have a
dilutive effect on the ownership interest of current shareholders. The holders
of our common stock generally do not have preemptive rights to subscribe to
additional securities that may be issued by the company, which means that
current shareholders do not have a prior right to purchase any new issue of
common stock in order to maintain their proportionate ownership interest in the
company.

Potential Anti-Takeover Effects

An increase in the authorized shares of common stock could adversely
affect the ability of third parties to takeover or change the control of the
company, for example, by permitting issuances that would dilute the stock
ownership of a person seeking to effect a change in the composition of the Board
of Directors or contemplating a tender offer or other transaction for the
combination of the company with another company. Although the increased
proportion of unissued authorized shares to issued shares could, under certain
circumstances, have an anti-takeover effect, the increase in the authorized
shares of common stock is not being undertaken in response to any effort of
which we are aware to accumulate shares of our common stock or obtain control of
the company, nor is it part of a plan by management to recommend a series of
similar transactions that could be construed to affect the ability of third
parties to take over or change the control of the company.

Board of Directors' Authority to Prescribe Rights, Preferences and Limitations
of Preferred Stock

Section 78.195 of the Nevada Revised Statutes provides that if a
corporation has more than one class or series of stock, the articles of
incorporation must prescribe or vest in the board of directors the authority to
prescribe the voting powers, designations, preferences, limitations,
restrictions and relative rights of any class or series of stock.

The Board of Directors of the company determined that it would be in
the best interests of the company and its shareholders to amend and restate the
Articles of Incorporation of the company to grant the Board of Directors of the
company the authority to determine and state the classes, series and the number
of each class or series of preferred stock and the voting powers, designations,
preferences, limitations, restrictions and relative rights granted to or imposed
upon any wholly unissued series of preferred stock.

Purpose of the Company

The Board of Directors determined that it would be in the best
interests of the company and its shareholders to amend and restate the Articles
of Incorporation of the company to clarify and restate that the purpose of the
business of the company is to engage in any lawful act or activity for which
corporations may be organized under the General Corporation Law of the State of
Nevada.

DISSENTERS' RIGHT OF APPRAISAL

Neither the Nevada Revised Statutes nor the company's Articles of
Incorporation or Bylaws provide for appraisal rights in connection with the
proposed actions.

VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF

The record date established by the company for purposes of determining
the number of outstanding shares of voting capital stock of the company for the
approval of the amendments to the company's Articles of Incorporation and the
election of the directors was the close of business on April 8, 2009. As of the
record date, there were 155,853,385 total outstanding shares of common stock of
the company. The following shareholders, which are the shareholders who signed
the written consent for such actions on April 30, 2009, owned the following
shares as of the record date:

o Halfmoon Bay Capital Ltd ("Halfmoon Bay") owned 86,419,753 shares
of common stock of the company, constituting approximately 55% of
the total outstanding shares of common stock of the company as of
such date;

o L&G Resources (1994), Inc. owned 9,632,534 shares of common stock
of the company, constituting approximately 6% of the total
outstanding shares of common stock of the company as of such
date;

o 3 Springs, LLC owned 3,595,913 shares of common stock of the
company, constituting approximately 2% of the total outstanding
shares of common stock of the company as of such date; and

o TC Lim, LLC owned 4,729,112 shares of common stock of the
company, constituting approximately 3% of the total outstanding
shares of common stock of the company as of such date.

As of the record date, there were 46 shareholders of record of the
company. Each share of common stock is entitled to one vote on all matters upon
which such shares can vote.

Security Ownership of Certain Beneficial Owners and Management

The following table sets forth information, as of April 8, 2009,
concerning our issued and outstanding stock beneficially owned (i) by each
director and each named executive officer of the company, (ii) by all directors
and executive officers of the company as a group and (iii) by each shareholder
known by the company to be the beneficial owner of more than 5% of the
outstanding common stock. The information regarding beneficial owners of 5% or
more of our common stock was gathered by us from the filings made by such owners
with the U.S. Securities and Exchange Commission (the "SEC"). Shares that may be
acquired within 60 days are treated as outstanding for purposes of determining
the amount and percentage beneficially owned.

Amount and Nature of
Name and Address Beneficial Ownership Percentage of
Title of Class of Beneficial Owner(1) (Shares of Stock) Class (2)
------------------------------ ----------------------------------------- ---------------------- ---------------

Common stock Teong Lim*+++ 8,495,025(3) 5.44%

Common stock Philip Yee+ 72,500(4) 0.05%

Common stock Thomas Dudley* 0 0.00%

Common stock Low Gay Teck* 0(5) 0.00%

Common stock Maggie Tham* 0 0.00%

Common stock William Wittmeyer+* 0 0.00%

Common stock L&G Resources (1994), Inc. (wholly owned
by Land & General Berhad)++ 9,632,534(6) 6.18%

Common stock Midsummer Investment Ltd.++ 13,708,957(7) 8.58%

Common stock Halfmoon Bay Capital Ltd++ 127,572,016(8) 64.76%

Common stock Fairwind LLC++ 8,325,025(9) 5.34%

Common stock All directors and named executive
officers as a group 8,567,525(10) 5.64%

* Director

+ Named executive officer

++5% or more beneficial owner

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(1) The address of each director and named executive officer and Fairwind LLC
is c/o Electronic Sensor Technology, Inc., 1077 Business Center Circle, Newbury
Park, California 91320. The address of Midsummer Investment Ltd. is 295 Madison
Avenue, 38th Floor, New York, New York 10017. The address of each of L&G
Resources (1994), Inc. and Land & General Berhad is 7 Persiaran Dagang, Bandar
Sri Damansara, Kuala Lumpur, Malaysia 52200. The address of Halfmoon Bay Capital
Ltd is Trident Chambers, P.O. Box 146, Road Town Tortola, British Virgin
Islands.

(2) These percentages are calculated based upon the total amount of outstanding
shares of common stock beneficially owned by each person or group, including
shares of common stock that person or group has the right to acquire within 60
days pursuant to options, warrants, conversion privileges or other rights,
divided by 155,853,385, which represents the total number of shares of common
stock issued and outstanding as of April 8, 2009, plus, for each person or
group, any shares of common stock that person or group has the right to acquire
within 60 days pursuant to options, warrants, conversion privileges or other
rights.

(3) Includes 170,000 shares of common stock underlying options exercisable
within 60 days of April 8, 2009 held by Teong Lim and 4,729,112 shares of common
stock held by TC Lim, LLC and 3,595,913 shares of common stock held by 3
Springs, LLC. Fairwind LLC is the sole member of each of TC Lim, LLC and 3
Springs, LLC and by virtue of such relationships, beneficially owns the shares
of common stock held by TC Lim, LLC and 3 Springs, LLC. Teong Lim and Francis
Chang are the sole members of Fairwind LLC. By virtue of Dr. Lim's position as a
member of Fairwind LLC, he shares ultimate beneficial ownership of the shares of
common stock held by TC Lim, LLC and 3 Springs, LLC.

(4) Includes 72,500 shares of common stock underlying an option exercisable
within 60 days of April 8, 2009.

(5) Mr. Low is the Managing Director of Land & General Berhad and President of
L&G Resources (1994), Inc., a wholly owned subsidiary of Land & General Berhad.
By virtue of his position, Mr. Low may be deemed to share dispositive power over
the 9,632,534 shares of common stock beneficially owned by Land & General Berhad
and L&G Resources (1994), Inc. Mr. Low is one of ten directors on the Board of
Directors of Land & General Berhad and the Board of Directors of Land & General
Berhad makes the ultimate voting and investment decisions with respect to the
9,632,534 shares of common stock. Mr. Low disclaims beneficial ownership of such
shares of common stock.

(6) Includes 9,632,534 shares of common stock held by L&G Resources (1994),
Inc., a wholly-owned subsidiary of Land & General Berhad, of which Land &
General Berhad is a beneficial owner. Low Gay Teck is President of L&G Resources
(1994), Inc. and Managing Director of Land & General Berhad. By reason of such
relationships, Mr. Low may be deemed to share dispositive power over the shares
of common stock beneficially owned by L&G Resources (1994), Inc. Mr. Low
expressly disclaims beneficial ownership as Mr. Low is one of ten directors on
the Board of Directors of Land & General Berhad and the Board of Directors of
Land & General Berhad makes the ultimate voting and investment decisions with
respect to the 9,632,534 shares of common stock.

(7) Includes 3,899,030 shares of common stock underlying a warrant exercisable
within 60 days of April 8, 2009. The exercise of the warrant is contractually
capped such that such exercise shall not cause Midsummer's beneficial ownership
to exceed 4.99%, unless waived by Midsummer, and in no event to exceed 9.99%
(without giving effect to shares of common stock underlying any unexercised
portion of the warrant). Midsummer Capital, LLC, a New York limited liability
company, serves as investment advisor to Midsummer Investment Ltd., a Bermuda
company. By reason of such relationships, Midsummer Capital may be deemed to
share dispositive power over the shares of common stock beneficially owned by
Midsummer Investment. Midsummer Capital disclaims beneficial ownership of such
shares of common stock. Michel A. Amsalem and Scott D. Kaufman are members of
Midsummer Capital. By reason of such relationships, Mr. Amsalem and Mr. Kaufman
may be deemed to share dispositive power over the shares of common stock stated
as beneficially owned by Midsummer Investment. Mr. Amsalem and Mr. Kaufman
disclaim beneficial ownership of such shares of common stock.

(8) Includes 41,152,263 shares of common stock underlying a debenture
convertible within 60 days of April 8, 2009, held by Halfmoon Bay Capital Ltd
and beneficially owned by each of Wan Azmi Wan Hamzah and Nik Anida Bte Nik
Manshor by virtue of their positions as shareholders and directors of Halfmoon
Bay Capital Ltd. Halfmoon Bay Capital Ltd has three shareholders, who are Wan
Azmi Wan Hamzah, Nik Anida Bte Nik Manshor

and Wan Afzal Bin Wan Azmi and two directors, who are Wan Azmi Wan Hamzah and
Nik Anida Bte Nik Manshor. Wan Afzal Bin Wan Azmi may be deemed to share
dispositive power over the shares of common stock beneficially owned by Halfmoon
Bay Capital Ltd. Wan Afzal Bin Wan Azmi expressly disclaims beneficial ownership
as Wan Afzal Bin Wan Azmi is not a director of Halfmoon Bay Capital Ltd and the
Board of Directors of Halfmoon Bay Capital Ltd makes the ultimate voting and
investment decisions with respect to the 127,572,016 shares of common stock.

(9) Includes 4,729,112 shares of common stock held by TC Lim, LLC and 3,595,913
shares of common stock held by 3 Springs, LLC, which are beneficially owned by
Fairwind LLC by virtue of its position as the sole member of each of TC Lim, LLC
and 3 Springs, LLC. Francis Chang and Teong Lim, Chairman of the Board of
Directors of the company, are the sole members of Fairwind LLC. By virtue of
such relationships, Francis Chang and Teong Lim share ultimate beneficial
ownership of the shares of common stock beneficially owned by Fairwind LLC.

(10) Includes 242,500 shares of common stock underlying options exercisable
within 60 days of April 8, 2009, as well as 4,729,112 shares of common stock
held by TC Lim, LLC and 3,595,913 shares of common stock held by 3 Springs, LLC.

Change in Control

On March 28, 2008, the company entered into and closed a Securities
Purchase Agreement with Halfmoon Bay, pursuant to which, in exchange for a
purchase price of $5,500,000 paid by Halfmoon Bay, Electronic Sensor Technology
issued (i) 86,419,753 shares of its common stock at a price of $0.0405 per share
(which is 90% of the closing quotation of the common stock on the OTC Bulletin
Board for the trading day preceding the closing date) and (ii) a 9% convertible
debenture due five (5) years from the closing date, with a conversion price of
$0.0486 (which is 120% of the price at which the common stock was issued to
Halfmoon Bay) in a principal amount of $2,000,000, with interest to be paid
thereon semiannually. According to Amendment No. 1 to its Schedule 13D/A filed
with the SEC on April 10, 2008, Halfmoon Bay provided the consideration for the
transaction from existing working capital and existing banking facilities. The
company agreed to use, and did use, $3,500,000 of the purchase price paid by
Halfmoon Bay, in addition to shares of its common stock, to extinguish the
existing 8% convertible debentures, and related accrued interest, held by
Midsummer Investment Ltd. and Islandia, LP, pursuant to the Conversion and
Termination Agreement among the company and Midsummer and Islandia dated as of
February 26, 2008, which is further described in our Current Report on Form 8-K
filed with the SEC on February 27, 2008.

As a result of the transaction described above, Halfmoon Bay owns
approximately 55% of the outstanding common stock of the company, and
beneficially owns an additional 10% of the outstanding common stock of the
company by virtue of the shares underlying its 9% convertible debenture.
Immediately prior to such transaction, no single shareholder of the company
owned a majority of the outstanding shares of the company, and the company's
largest owners of outstanding shares were L&G Resources (1994), Inc. (wholly
owned by Land & General Berhad), owning approximately 16%; TC Lim, LLC (wholly
owned by Teong Lim, a director of the company), owning approximately 9%; 3
Springs, LLC (wholly owned by Francis Chang, a former director of the company),
owning approximately 7%; and Midsummer and Islandia, collectively owning
approximately 8%.

To the knowledge of management, there are no present arrangements or
pledges of securities of the company which may result in a further change in
control of the company.

DIRECTORS AND EXECUTIVE OFFICERS

Directors

Directorships
Held in
Principal Occupation(s) Since 2004 Director Other Public
Name Age (arranged by title & company) Since Companies
----------------- ----- -------------------------------------------- ---------- -----------------

Teong C. Lim 69 President and Chief Executive Officer 2005 Chatsworth Data
Electronic Sensor Technology Solutions, Inc.

Former President and Chief Executive Officer
and former Vice President of Corporate
Development
Electronic Sensor Technology

Manager of Corporate Development
Electronic Sensor Technology, L.P.

Thomas Dudley 78 Emeritus Professor of Decision Sciences 2008 Auto Graphics
Pepperdine University, Graziadio School of Inc.
Business and Management

Low Gay Teck 44 Managing Director 2008 None
Land & General Berhad

Maggie Tham 59 Co-Founder 2008 None
eXS, Inc.

Co-Founder, Chief Executive Officer and
Executive Director
eXS Network Technologies Sdn. Bhd.

William Wittmeyer 59 Chief Operating Officer 2008 None
Electronic Sensor Technology

Chief Executive Officer and Co-Founder
eXS, Inc.

Co-Founder
eXS Network Technologies Sdn. Bhd.

Teong C. Lim

Teong C. Lim, age 69, currently serves as President, Chief Executive
Officer and interim Chief Scientist of Electronic Sensor Technology and as
Chairman of the Board of Directors of Electronic Sensor Technology. Dr. Lim has
served as President and Chief Executive Officer of Electronic Sensor Technology
since July 25, 2008, as interim Chief Scientist of Electronic Sensor Technology
since February 11, 2009 and as a director of Electronic Sensor Technology since
January 31, 2005. Dr. Lim also served as President and Chief Executive Officer
of Electronic Sensor Technology from January 26, 2006 through July 16, 2007, and
served as Vice President of Corporate Development of Electronic Sensor
Technology from February 1, 2005 through January 25, 2006. Dr. Lim was the
Director of Corporate Development of Electronic Sensor Technology, L.P. from
March 1995 through August 2000 and was the Manager of Corporate Development of
Electronic Sensor Technology, L.P. from August 2000 through February 2005. Dr.
Lim has been the President of Amerasia Technology, Inc., a subsidiary of
Electronic Sensor Technology, since 1984. Since 1997, Dr. Lim has been a
director of Crystal Clear Technology, Sdn. Bhd., a privately-owned Malaysian
company that manufactures and markets a high-contrast liquid crystal display
(LCD)

product line. Dr. Lim also serves as a director of Chatsworth Data Solutions,
Inc., which is a public reporting company. Dr. Lim received a Ph.D. in
Electrical Engineering from McGill University in 1968 and an M.B.A. from
Pepperdine University in 1982.

Thomas J. Dudley

Thomas J. Dudley, age 78, currently serves as a director of Electronic
Sensor Technology. Dr. Dudley serves as the chairman of our audit committee and
compensation committee. Dr. Dudley has served as a director of Electronic Sensor
Technology since November 24, 2008. Dr. Dudley is currently an Emeritus
Professor of Decision Sciences at the Pepperdine University, Graziadio School of
Business and Management, and has been with Pepperdine's School of Business and
Management for 40 years. Dr. Dudley's field of expertise is the application of
quantitative methods to business and management problems. Dr. Dudley has
consulted in major industries such as aerospace, health care, automotive, food
products, computers and non-profit organizations as well as Indian Tribes in
Montana and Arizona. He has been involved with a number of start-up companies as
participant and advisor. Prior to beginning his Pepperdine tenure, Dr. Dudley
was assistant to the president of Channing Financial Corporation, the first
director of the computer facility, Graduate School of Business, University of
Southern California, operations analyst at Capitol Records, Inc., and a
management engineer at Convair Division of General Dynamics Corporation. Dr.
Dudley served for 10 years on the board of SpaceLabs Medical, Inc., where he was
chairman of the audit committee and a member of the compensation and executive
committees. Dr. Dudley currently serves as a director of Auto Graphics, Inc.,
VantageILM, Inc. and is the chairman of the board of Liberty Building
Maintenance and Services, Inc. He also served on the boards of Recording for the
Blind and Dyslexic, Los Angeles unit, America-China Association for Science, and
Technology Exchange. Dr. Dudley received a B.A. and an MBA from the University
of Michigan. Dr. Dudley received his Doctorate in business from the University
of Southern California.

Low Gay Teck

Low Gay Teck, age 44, currently serves as a director of Electronic
Sensor Technology. Mr. Low has served as a director of Electronic Sensor
Technology since September 1, 2008. Mr. Low has served as Managing Director of
Land & General Berhad since January 1, 2008, after serving as a non-executive
director of Land & General Berhad from October 15, 2007. Prior to joining Land &
General Berhad, Mr. Low was the Managing Director of the Mayland Group from
2005-2007, after serving as a Director of the Mayland Group from 2002 and a
Project Manager with the Mayland Group from 1996. Mr. Low holds a Bachelor of
Civil Engineering from Footscray Institute of Technology, Australia (now known
as Victoria University, Australia).

Maggie Tham

Maggie Tham, age 59, currently serves as a director of Electronic
Sensor Technology. Ms. Tham serves on our audit committee and compensation
committee. Ms. Tham has served as a director of Electronic Sensor Technology
since May 1, 2008. Ms. Tham has over 25 years of experience in management and
strategy consulting. Ms. Tham is the Co-Founder, Chief Executive Officer and
Executive Director of eXS Network Technologies Sdn. Bhd., which provides
innovative communication solutions to service providers in South East Asia. In
2004, Ms. Tham co-founded, with William Wittmeyer, eXS Inc., a wireless access
company developing innovative and cost effective products for developing
countries. Prior to founding eXS Network Technologies and eXS, Inc., Ms. Tham
raised early-stage financing for companies and worked as a management consultant
in the United States and Malaysia for companies including Peat, Marwick,
Mitchell & Co. Ms. Tham received a B.Sc. (Economics) from the London School of
Economics and an M.B.A. from Columbia University Graduate School of Business
Administration. Ms. Tham was recommended to the Board of Directors by Halfmoon
Bay, pursuant to the Securities Purchase Agreement dated March 28, 2008 between
Electronic Sensor Technology and Halfmoon Bay.

William Wittmeyer

William Wittmeyer, age 59, currently serves as Chief Operating Officer
of Electronic Sensor Technology and as a director of Electronic Sensor
Technology. Mr. Wittmeyer also serves on our audit committee and compensation
committee. Mr. Wittmeyer has served as Chief Operating Officer of Electronic
Sensor Technology since November 24, 2008 and as a director of Electronic Sensor
Technology since May 1, 2008. Mr. Wittmeyer has

over 25 years of experience in high-technology business and investment
management. In 1997, Mr. Wittmeyer co-founded, with Maggie Tham, eXS Network
Technologies Sdn. Bhd. Mr. Wittmeyer is the co-founder, along with Ms. Tham, and
Chief Executive Officer of eXS Inc., a wireless access company developing
innovative and cost effective products for developing countries. Prior to
founding eXS Network Technologies and eXS, Inc., Mr. Wittmeyer was active in
technology investing in telecommunications and semi-conductor companies. Mr.
Wittmeyer was employed by W.R. Grace and Exxon Enterprises. Mr. Wittmeyer
received a B.Sc. (E.E.) from the Coast Guard Academy and an M.B.A. from Columbia
University Graduate School of Business Administration. Mr. Wittmeyer was
recommended to the Board of Directors by Halfmoon Bay, pursuant to the
Securities Purchase Agreement dated March 28, 2008 between Electronic Sensor
Technology and Halfmoon Bay.

Director Independence

Although we are not required to have independent directors on our
Board of Directors because our securities are not listed on a national
securities exchange or an inter-dealer quotation system that has director
independence requirements, two of the five directors on our Board are
independent using the definition of "independent director" contained in Rule
5605(a)(2) of the NASDAQ Marketplace Rules. Our independent directors are Low
Gay Teck and Thomas Dudley. Under Rule 5605(a)(2) of the NASDAQ Marketplace
Rules, an "independent director" is generally defined as a person other than an
executive officer or employee of the company or another individual having a
relationship which, in the opinion of the company's Board of Directors, would
interfere with the exercise of independent judgment in carrying out the
responsibilities of a director.

The members of our audit committee and our compensation committee
include Thomas Dudley, who is also the chairman of both committees, Maggie Tham
and William Wittmeyer. In addition to being an independent director under Rule
5605(a)(2), the NASDAQ audit committee independence standards (which are also
not applicable to us) contain NASDAQ Marketplace Rule 5605(c), which requires
that audit committee members meet certain additional independence requirements.
Thomas Dudley is independent under the NASDAQ audit committee independence
standards.

Board of Directors Committees

Our Board of Directors held five (5) meetings during our 2008 fiscal
year. Each director attended 75% or more of the meetings of the Board and the
Board committees on which the director served, if any. All seven of our
directors serving at the time of our 2007 annual meeting of shareholders
attended such meeting. In 2008, the Board of Directors decided to forgo holding
an annual meeting of shareholders and to rely upon the shareholders acting by
written consent in lieu of an annual meeting in order to eliminate the costs and
management time involved in holding an annual meeting and in order to effect or
ratify the proposals as early as possible. From time to time, our Board may act
by unanimous written consent as permitted by the laws of the State of Nevada.

Our Board of Directors has formed an audit committee and a compensation
committee. During our 2008 fiscal year, the audit committee held one (1) meeting
and the compensation committee did not hold any meetings. The current members of
the audit committee and our compensation committee are Thomas Dudley, who is
also the chairman of both committees, Maggie Tham and William Wittmeyer.
Generally, the functions to be performed by the audit committee are selecting
our independent auditor, directing and supervising investigations into matters
within the scope of its duties, reviewing with the independent auditor the plan
and results of its audit, reviewing internal auditing procedures and results,
and determining the nature of other services to be performed by, and fees to be
paid to, the independent auditor. Generally, the functions to be performed by
the compensation committee include establishing compensation rates and
procedures with respect to our senior management. Both committees have adopted
charters, each of which is posted on our website at http://www.estcal.com/. The
information on or that can be accessed through our website is not part of this
information statement.

Our Board of Directors does not yet have a standing nominating
committee or committee performing similar functions. Director candidates are
currently selected by the Board of Directors, some of whom are independent as
defined in the NASDAQ Marketplace Rules, and others of whom are not. In
evaluating director nominees, our Board considers a variety of factors,
including: the appropriate size of our Board of Directors; our needs with
respect to the particular talents and experience of our directors; and the
knowledge, skills and experience of nominees. We do not have a formal policy
with respect to the consideration of any director candidates

recommended by our shareholders. Our Board believes its process for evaluation
of nominees proposed by shareholders would be no different from the process of
evaluating any other candidate.

Audit Committee Financial Expert

Our Board of Directors has determined that we have one audit committee
financial expert on our audit committee. Our audit committee financial expert is
Thomas Dudley. Although there are no standards applicable to us regarding the
independence of our audit committee members, Dr. Dudley would be considered
independent using the standards contained in the NASDAQ Marketplace Rules, as
described under "Director Independence."

Report of the Audit Committee

The audit committee has reviewed and discussed our audited
consolidated financial statements for the fiscal year ended December 31, 2008
with management.

The audit committee has discussed with Sherb & Co. LLP, the company's
independent registered public accounting firm, the matters required to be
discussed by Statement of Auditing Standards No. 61, as amended, as adopted by
the Public Company Accounting Oversight Board in Rule 3200T. The audit committee
received the written disclosures and the letter from Sherb & Co. required by
applicable requirements of the Public Company Accounting Oversight Board
regarding Sherb & Co's communications with the audit committee concerning
independence, and has discussed with them their independence.

Based on the review and discussions noted above, the audit committee
recommended to the Board of Directors that the audited consolidated financial
statements be included in our annual report on Form 10-K for the fiscal year
ended December 31, 2008 for filing with the U.S. Securities and Exchange
Commission.

Audit Committee

Thomas Dudley
Maggie Tham
William Wittmeyer

Code of Ethics

We have adopted a code of ethics that applies to our principal
executive officer, principal financial officer and principal accounting officer
or controller, or persons performing similar functions. A copy of our code of
ethics is attached as Exhibit 14 to our annual report on Form 10-KSB for the
fiscal year ended December 31, 2004. Our code of ethics will be provided to any
person without charge, upon request. Requests should be addressed to: Electronic
Sensor Technology, Inc., Attn: Investor Relations Department, 1077 Business
Center Circle, Newbury Park, California 91320.

Shareholder Communications with Directors

Shareholders and other interested parties may communicate directly
with any or all of the directors of our company by writing to such director(s)
at the address provided on the cover page of this information statement.
Directors receiving such communications will respond as such directors deem
appropriate, including the possibility of referring the matter to management of
our company, to the full Board or to an appropriate committee of the Board.

Executive Officers

The following biographical information relates to our executive
officers who are not also directors:

Philip Yee

Philip Yee, age 59, currently serves as Secretary, Treasurer and Chief
Financial Officer of Electronic Sensor Technology. Mr. Yee has served as
Secretary, Treasurer and Chief Financial Officer of Electronic Sensor Technology
since November 1, 2006. From April 2006 through November 1, 2006, Mr. Yee served
as Controller of Electronic Sensor Technology. From February 2005 through April
2006, Mr. Yee was Corporate Controller of Sleepwell Laboratories, Inc., a
regional healthcare provider, and its related companies. From 2001 through
February 2005, Mr. Yee was Corporate Controller of BLT Enterprises, Inc., a
regional recycling company and real estate developer, and its related companies.
Mr. Yee received a B.A. and an M.B.A. from the University of Michigan.

Family Relationships and Involvement in Certain Legal Proceedings

Each of our directors holds office until the next annual meeting of
our shareholders, or until his prior death, resignation or removal. Two of our
directors, Maggie Tham and William Wittmeyer, are married to each other. Other
than the marriage of such directors, there are no family relationships among our
directors or executive officers. Within the past five years, there has not been
any bankruptcy petition filed by or against any business of which any of our
officers, directors or control persons were a general partner or executive
officer either at the time of the bankruptcy or within two years prior to that
time. None of our officers, directors or control persons has been convicted in a
criminal proceeding in the past five years or is subject to a pending criminal
proceeding (excluding traffic violations and other minor offenses). None of our
officers, directors or control persons is subject to any order, judgment, or
decree, not subsequently reversed, suspended or vacated, of any court of
competent jurisdiction, permanently or temporarily enjoining, barring,
suspending or otherwise limiting his involvement in any type of business,
securities or banking activities. None of our officers, directors or control
persons has been found by a court of competent jurisdiction (in a civil action),
the Securities and Exchange Commission or the Commodity Futures Trading
Commission to have violated a federal or state securities or commodities law,
where the judgment has not been reversed, suspended, or vacated.

COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS

Summary Compensation

The table below outlines the total compensation of the named executive
officers of Electronic Sensor Technology for the fiscal years ended December 31,
2007 and December 31, 2008.

SUMMARY COMPENSATION TABLE (1)

Name and Stock Option All Other
Principal Salary Bonus Awards Awards Compensation Total
Position Year ($)(2) ($) ($) ($)(3) ($)(4) ($)
--------------------- ------ ----------- ------- -------- --------- -------------- -----------

Teong C. Lim, 2007 100,532 - - 10,000(6) 74,049(7) 184,581

President and Chief 2008 40,502(8) - - 111,618(9) 152,120
Executive Officer -
(July 25, 2008 -
Present)

Interim Chief
Scientist (February
11, 2009 - Present)

Former President and
Chief Executive
Officer (January 26,
2006 - July 15, 2007)

Former Vice President
of Corporate
Development (February
1, 2005 -January 25,
2006)

Director (January 31,
2005 - Present)

Chairman (May 1, 2008
- Present) (5)

Barry S. Howe, 2007 116,923 - - 80,000(10) - 196,923

Former President and 2008 122,647(11) - - - 85,850(12) 208,497
Chief Executive
Officer (July 16, 2007 -
- July 25, 2008)

Former Chief Operating
Officer (April 11,
2007 -July 15, 2007)

Former Director (July
16, 2007 - July 25,
2008) (5)

Gary Watson, 2007 142,773 _ _ 10,000(13) 4,283(14) 157,056

Former Vice President 2008 133,987 _ _ _ 4,020(14) 138,007
of Engineering (May
26, 2005 - February
11, 2009)

Former Interim Chief
Scientist (March 8,
2007 - February 11,
2009)

Philip Yee, 2007 120,961 - - 10,000(15) 3,629(14) 134,590

Secretary, Treasurer 2008 121,156 - - - 3,635(14) 124,791
and Chief Financial
Officer (November 1,
2006 - Present)

William Wittmeyer 2007 - - - - - -

Chief Operating 2008 - - - 5,750(16) 28,167(17) 33,917
Officer (November 24,
2008 - Present)

Director (May 1, 2008
- Present)

----------
(1) The columns entitled "Non-Equity Incentive Plan Compensation" and
"Nonqualified Deferred Compensation Earnings" have been omitted from the Summary
Compensation Table because there has been no compensation awarded to, earned by,
or paid to any of the named executive officers required to be reported in such
columns.

(2) Amounts represent all pre-tax salaries and include any amounts earned but
deferred under the company's 401(k) plan.

(3) The manner in which the company values stock and option awards is outlined
in Note 1 to the company's consolidated financial statements for the fiscal year
ended December 31, 2008 under the heading "Stock-Based Compensation" as well as
Note 5 under the heading "Stockholders' Deficit" incorporated herein by
reference to our annual report on Form 10-K for the year 2008. We did not grant
any stock awards to the named executive officers during our 2007 fiscal year or
our 2008 fiscal year.

(4) All named executive officers are covered by the company's health insurance
plan, which does not discriminate in scope, terms or operation, in favor of
named executive officers or directors and is generally available to all salaried
employees. As a result, the information regarding health insurance premiums paid
to the named executive officers has been omitted from the Summary Compensation
Table.

(5) Barry Howe and Teong Lim did not receive any compensation for their
services as directors of the company in either 2007 or 2008.

(6) On January 16, 2007, Teong Lim was granted an option under our 2005 Stock
Incentive Plan to acquire 100,000 shares of our common stock, par value $0.001
per share, at an exercise price of $0.24 per share. The option shares will vest
as follows: one quarter vested on January 16, 2008, one quarter vested on
January 16, 2009, one quarter will vest on January 16, 2010 and one quarter will
vest on January 16, 2011. On March 5, 2007, Dr. Lim was granted an option under
our 2005 Stock Incentive Plan to acquire 40,000 shares of our common stock, par
value $0.001 per share, at an exercise price of $0.19 per share. The option
shares were fully vested upon grant. The manner in which the company values the
option awards is outlined in Note 1 to the company's consolidated financial
statements under the heading "Stock-Based Compensation" as well as Note 5 under
the heading "Stockholders' Deficit" included in our annual report on Form 10-K
for the year 2008.

(7) Amount represents (i) $67,185 paid to Dr. Lim in exchange for consulting
services, (ii) $3,016 in 401(k) contributions by the company and (iii) $3,848
paid to Dr. Lim as reimbursement for health insurance premiums.

(8) Amount represents salary paid to Dr. Lim in his capacity as President and
Chief Executive Officer of the company for the period of July 25, 2008 through
December 31, 2008.

(9) Amount represents (i) $100,261 paid to Dr. Lim in exchange for consulting
services, (ii) $1,215 in 401(k) contributions by the company and (iii) $10,142
paid to Dr. Lim as reimbursement for health insurance premiums.

(10) On July 16, 2007, Barry Howe was granted an option to acquire 1,000,000
shares of our common stock, the option to acquire 500,000 of which were granted
under our 2005 Stock Incentive Plan, par value $0.001 per share, at an exercise
price of $0.20 per share, which is the average of the quoted closing price of
our common stock over the five trading days ending on July 16, 2007. The option
grant was evidenced by a Notice of Grant of Stock Option and Option Agreement
substantially in the form attached as Exhibit 10.2 to our annual report on Form
10-KSB for the fiscal year ended December 31, 2004 filed with the Commission on
April 15, 2005. 100,000 of the option shares were fully vested upon grant and
225,000 vested on April 11, 2008. The remaining option shares would have vested
22.5% annually, provided that Mr. Howe was still employed by Electronic Sensor
Technology at the end of each annual period. On July 25, 2008, Mr. Howe resigned
from his position as President and Chief Executive Officer and as a director of
Electronic Sensor Technology, and is no longer employed by Electronic Sensor
Technology. In accordance with the terms of the Option Agreement, Mr. Howe's
resignation resulted in the forfeiture of the unvested option to purchase
675,000 shares of common stock, and Mr. Howe had three months from July 25, 2008
in which to exercise the vested option to purchase 325,000 shares of common
stock. Mr. Howe did not exercise the vested option within three months of July
25, 2008 and the option expired.

(11) Amount represents salary paid to Mr. Howe in his capacity as President and
Chief Executive Officer of the company for the period of January 1, 2008 through
July 25, 2008.

(12) Amount represents (i) $82,171 received as severance pursuant to the
Severance Agreement and Mutual Release, as more fully described under the
heading "Severance and Termination Agreements" below and (ii) $3,679 in 401(k)
contributions by the company.

(13) On January 16, 2007, Gary Watson was granted an option under our 2005 Stock
Incentive Plan to acquire 100,000 shares of our common stock, par value $0.001
per share, at an exercise price of $0.24 per share. 12,500 of the option shares
vested on each of January 16, 2008 and January 16, 2009 and 12,500 of the option
shares vested on each of September 8, 2007 and September 8, 2008. The remaining
options shares would have vested as follows: 12,500 on January 16, 2010, 12,500
January 16, 2011, 12,500 on September 8, 2009 and 12,500 on September 8, 2010,
provided that Mr. Watson was still employed by Electronic Sensor Technology at
the end of each period. On March 5, 2007, Mr. Watson was granted an option under
our 2005 Stock Incentive Plan to acquire 87,500 shares of our common stock, par
value $0.001 per share, at an exercise price of $0.19 per share. The option
shares were fully vested upon grant. Each of the option grants was evidenced by
a Notice of Grant of Stock Option and Option Agreement substantially in the form
attached as Exhibit 10.2 to our annual report on Form 10-KSB for the fiscal year
ended December 31, 2004 filed with the Commission on April 15, 2005. On February
11, 2009, Mr. Watson was terminated from his position as Vice President of
Engineering and interim Chief Scientist of Electronic Sensor Technology, and is
no longer employed by Electronic Sensor Technology. In accordance with the terms
of the Option Agreements, Mr. Watson's termination resulted in the forfeiture of
the unvested options to purchase 50,000 shares of common stock, and Mr. Watson
has three months from February 11, 2008 in which to exercise vested options to
purchase 50,000 shares of common stock and 87,500 shares of common stock. The
manner in which the company values the option awards is outlined in Note 1 to
the company's consolidated financial statements under the heading "Stock-Based
Compensation" as well as Note 5 under the heading "Stockholders' Deficit"
included in our annual report on Form 10-K for the year 2008.

(14) Amounts represent 401(k) contributions by the company, as described under
the heading "401(k) Plan" below.

(15) On January 16, 2007, Philip Yee was granted an option under our 2005 Stock
Incentive Plan to acquire 100,000 shares of our common stock, par value $0.001
per share, at an exercise price of $0.24 per share. The option shares granted to
Mr. Yee will vest as follows: 15,000 of the option shares were fully vested upon
grant of the options, 6,250 vested on January 16, 2008, 6,250 vested on January
16, 2009, 6,250 will vest on January 16, 2010, 6,250 will vest on January 16,
2011, 15,000 vested on April 3, 2007, 15,000 vested on April 3, 2008, 15,000
will vest on April 3, 2009 and 15,000 will vest on April 3, 2010. The manner in
which the company values the option awards is outlined in Note 1 to the
company's consolidated financial statements under the heading "Stock-Based
Compensation" as well as Note 5 under the heading "Stockholders' Deficit"
included in our annual report on Form 10-K for the year 2008.

(16) On July 25, 2008, William Wittmeyer was granted an option under our 2005
Stock Incentive Plan to acquire 500,000 shares of our common stock, par value
$0.001 per share, at an exercise price of $0.03 per share (which was the closing
price of the common stock on July 25, 2008). The option shares will vest as
follows: 125,000 will vest on July 25, 2009, 125,000 will vest on July 25, 2010,
125,000 will vest on July 25, 2011 and 125,000 will vest on July 25, 2012. The
manner in which the company values the option awards is outlined in Note 1 to
the company's consolidated financial statements under the heading "Stock-Based
Compensation" as well as Note 5 under the heading "Stockholders' Deficit"
included in our annual report on Form 10-K for the year 2008.

(17) Amount represents (i) $26,667 paid to Mr. Wittmeyer in exchange for
consulting services and (ii) $1,500 as an attendance fee for attending a meeting
of the Board of Directors. Mr. Wittmeyer was appointed Chief Operating Officer
of the company on November 24, 2008 and he no longer receives compensation for
attending Board meetings.

Narrative Disclosure to Summary Compensation Table and Additional Narrative
Disclosure

Employment and Consulting Agreements

Philip Yee. On March 16, 2006, Philip Yee accepted an offer letter
extended by Electronic Sensor Technology regarding his employment with
Electronic Sensor Technology as Controller, which is attached as Exhibit 10.2 to
our amended current report on Form 8-K/A filed February 14, 2007. The offer
letter set Mr. Yee's salary at $75,000 per year, to be adjusted to $80,000 per
year after completion of a three-month trial period, and included an agreement
by Electronic Sensor Technology to grant to Mr. Yee an option to purchase 75,000
shares of common stock, subject to approval by the Board of Directors (an option
to purchase 100,000 shares of common stock of the company, was approved by the
Board of Directors and granted to Mr. Yee on January 16, 2007). On October 16,
2006, the Board of Directors appointed Mr. Yee to become Secretary, Treasurer
and Chief Financial Officer of the company, effective November 1, 2006. In
connection with the appointment of Mr. Yee as Secretary, Treasurer and Chief
Financial Officer of Electronic Sensor Technology, Electronic Sensor Technology
and Mr. Yee entered into an oral agreement to increase Mr. Yee's annual salary
to $110,000 through April 1, 2007, at which point Electronic Sensor Technology
and Mr. Yee have orally agreed to increase Mr. Yee's annual salary to $125,000.
On September 1, 2008, Mr. Yee agreed to reduce his annual salary to $112,507.

Barry Howe. On March 28, 2007, Barry Howe accepted an offer letter
extended by Electronic Sensor Technology regarding his employment with
Electronic Sensor Technology as Chief Operating Officer, which is attached as
Exhibit 10.1 to our current report on Form 8-K filed April 3, 2007. The offer
letter provides that Mr. Howe will serve as Chief Operating Officer of
Electronic Sensor Technology for a trial period of three months, at the end of
which the Board of Directors will evaluate Mr. Howe and consider him for the
position of Chief Executive Officer. The letter also contemplates nominating Mr.
Howe to serve as a director of the Electronic Sensor Technology at such time.
The offer letter sets Mr. Howe's salary at $150,000 per year, to be reviewed
after the three-month trial period, and provides for an option to purchase 1
million shares of the company's common stock to be granted to Mr. Howe at the
end of such trial period if Mr. Howe is appointed Chief Executive Officer at
such time, of which 100,000 of the option shares will be vested on the date of
the grant and 900,000 of the option shares will vest in installments of 25% per
year on each anniversary of Mr. Howe's employment. On July 16, 2007, the Board
of Directors appointed Mr. Howe to become President and Chief Executive Officer
of the company. In connection with his appointment, Mr. Howe's annual salary was
increased from $150,000 to $185,000. In addition, the Board of Directors
approved the grant of an option to acquire 1 million shares of common stock of
the company.

Teong C. Lim. On July 16, 2007, Teong C. Lim announced his retirement
as President and Chief Executive Officer to the Board of Directors of the
company, effective as of such date. Following such date, Dr. Lim continued to
serve as a director of and a consultant to the company. On July 17, 2007, Dr.
Lim and the company entered into a letter agreement regarding the company's
engagement of Dr. Lim as a consultant through January 17, 2008 for a monthly fee
of $13,437, as more fully described in Exhibit 10.1 to our current report on
Form 8-K filed July 18, 2007. The consulting agreement with Dr. Lim was extended
on January 17, 2008 on a month-to-month basis at the same retainer fee, and was
subsequently terminated on July 25, 2008, when Dr. Lim resumed his position as
President and Chief Executive Officer of the company. On September 1, 2008, Dr.
Lim agreed to reduce his annual salary from $161,244 to $81,244.

William Wittmeyer. On November 24, 2008, the company, William
Wittmeyer and Wittham, a California corporation wholly owned by Mr. Wittmeyer
and employing Mr. Wittmeyer, entered into an Independent Contractor Agreement,
which is attached as Exhibit 10.1 to our amended current report on Form 8-K/A
filed January 5, 2009. Pursuant to the Independent Contractor Agreement, the
company engaged Wittham to have Mr. Wittmeyer serve as an independent contractor
to act as Chief Operating Officer and Wittham will be paid $6,666.67 per month
in consideration of the services of Mr. Wittmeyer as Chief Operating Officer of
the company.

Severance and Termination Agreements

Barry S. Howe. On July 25, 2008, the Board of Directors of Electronic
Sensor Technology accepted Barry S. Howe's resignation as President and Chief
Executive Officer and a director of the company. In connection and concurrently
with such resignation, the company and Mr. Howe entered into a Severance
Agreement and Mutual Release, which is attached as Exhibit 10.1 to our current
report on Form 8-K filed on July 29, 2008. The Severance Agreement and Mutual
Release provides for payment of five and one-third months' salary as severance
to Mr. Howe (totaling $82,170.83) by the company.

Gary Watson. On February 11, 2009, Gary Watson's employment with
Electronic Sensor Technology as Vice President of Engineering and interim Chief
Scientist was terminated. In connection with Mr. Watson's departure, he received
(i) payment of two weeks' salary (totaling $4,392.96) and (ii) payment for
accrued but unused vacation time as of the Effective Date (totaling $13,254.62).
Electronic Sensor Technology will also continue to provide Mr. Watson with
medical benefits through April 30, 2009.

Retirement Agreements

The company has an agreement with Teong Lim under which, so long as he
continues to be employed by the company until retirement age, which is currently
65 years of age, the company shall provide Medigap insurance, also known as
Medicare supplemental insurance, to Dr. Lim after retirement until his death.

401(k) Plan

The company sponsors a 401(k) retirement savings plan which covers its
full-time employees who have been employed by the company for at least one (1)
year. Eligible employees may elect to contribute a percentage of their
compensation to the 401(k) plan, subject to the maximum amount established
annually under Section 401(k) of the Internal Revenue Code. In each of 2007 and
2008, the company contributed an amount equal to three percent (3%) of each
employee's respective compensation to the 401(k) plan account of each eligible
employee.

Other than the agreements mentioned herein, we have no employment
agreements with any of our named executive officers, nor do we have any
compensatory plans or arrangements with respect to any named executive officers
that results or will result from the resignation, retirement or any other
termination of such executive officer's employment with Electronic Sensor
Technology or from a change-in-control of Electronic Sensor Technology or a
change in the named executive officer's responsibilities following a
change-in-control wherein the amount involved, including all periodic payments
or installments, exceeds $100,000.

Outstanding Equity Awards at Fiscal Year-End

The following table outlines all outstanding equity awards held by
named executive officers as of the fiscal year ended December 31, 2008.

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END(1)

Option Awards
-------------------------------------------------------------------------------------------------------------------------
Equity Incentive
Plan Awards:
Number of Number of Number of
Securities Securities Securities
Underlying Underlying Underlying Option
Unexercised Unexercised Unexercised Exercise Option
Options Options (#) Unearned Options Price Expiration
Name (#) Exercisable Unexercisable (#) ($) Date
-------------------- ------------------ ------------------ ------------------ ---------- -------------------

Teong C. Lim 80,000(2) - - $ 1.00 February 1, 2015
50,000(3) 50,000 50,000 $ 0.24 January 16, 2017
40,000(3) - - $ 0.19 March 5, 2017

Barry S. Howe -(4) - - - -

Gary Watson 175,000(5) - - $ 1.00 February 1, 2015
50,000(3) 50,000 50,000 $ 0.24 January 16, 2017
87,500(3) - - $ 0.19 March 5, 2017

Philip Yee 72,500(3) 27,500 27,500 $ 0.24 January 16, 2017

William Wittmeyer -(3) 500,000 500,000 $ 0.03 July 25, 2018

----------
(1) The columns related to stock awards have been omitted because there were no
outstanding unvested stock awards as of the fiscal year ended December 31, 2008.

(2) Teong Lim was granted an option to purchase 80,000 limited partnership
interests of Electronic Sensor Technology, L.P. at $1.00 per limited partnership
interest on December 31, 2003. Such option was terminated in connection with the
merger whereby Electronic Sensor Technology, L.P. became an indirect subsidiary
of Electronic Sensor Technology, Inc. and was replaced with an option to
purchase 80,000 shares of common stock of Electronic Sensor Technology, Inc. at
$1.00 per share. Such option was accounted for at the time of the original grant
of Electronic Sensor Technology, L.P. options and no dollar amount was
recognized in connection therewith for financial statement reporting purposes
with respect to the 2005 fiscal year.

(3) For the vesting dates of such options, see the footnotes to the Summary
Compensation Table.

(4) See footnote 10 to the Summary Compensation Table.

(5) Gary Watson was granted options to purchase (i) 50,000 limited partnership
interests of Electronic Sensor Technology, L.P. at $1.00 per limited partnership
interest on March 15, 1999, (ii) 50,000 limited partnership interests of
Electronic Sensor Technology, L.P. at $1.05 per limited partnership interest on
July 1, 2000, (iii) 50,000 limited partnership interests of Electronic Sensor
Technology, L.P. at $1.05 per limited partnership interest on May 15, 2001 and
(iv) 25,000 limited partnership interests of Electronic Sensor Technology, L.P.
at $1.05 per limited partnership interest on September 15, 2002. Such options
were terminated in connection with the merger whereby Electronic Sensor
Technology, L.P. became an indirect subsidiary of Electronic Sensor Technology,
Inc., and were

replaced with an option to purchase 175,000 shares of common stock at $1.00 per
share. Such option was accounted for at the time of the original grants of
Electronic Sensor Technology, L.P. options and no dollar amount was recognized
in connection therewith for financial statement reporting purposes with respect
to the 2005 fiscal year.

Director Compensation

The following table sets forth the compensation paid by Electronic
Sensor Technology to all non-employee directors for the fiscal year ended
December 31, 2008.

DIRECTOR COMPENSATION(1)

Fees Earned or All Other
Paid in Cash Option Awards Compensation Total
Name(2) ($) ($)(3) ($)(4) ($)
---------------------------------------- --------------- --------------- --------------- --------

Thomas Dudley - 4,600(5) - 4,600
(November 24, 2008 - Present)

Low Gay Teck - 4,600(6) - 4,600
(September 1, 2008 - Present)

Maggie Tham 1,500(7) 5,750(8) - 7,250
(May 1, 2008 - Present)

Lewis E. Larson 2,000(9) - - 2,000
(September 7, 2006 - February 19,
2009)

James Wilburn 14,000(10) - - 14,000
(September 2005 - November 24, 2008)

Rita Benoy Bushon 5,000(11) - - 5,000
(October 26, 2007 - September 1, 2008)

James Frey 10,000(12) - - 10,000
(February 21, 2005 - May 1, 2008)

Francis Chang 1,500(13) - 5,206(14) 6,706
(January 31, 2005 - May 1, 2008)

----------
(1) The columns entitled "Stock Awards," "Non-Equity Incentive Plan
Compensation" and "Nonqualified Deferred Compensation Earnings" have been
omitted from the Director Compensation Table because there has been no
compensation awarded to, earned by, or paid to any of the directors required to
be reported in such columns.

(2) Barry Howe, Teong Lim and William Wittmeyer are not included in the
Director Compensation Table because any compensation received by Mr. Howe, Dr.
Lim and Mr. Wittmeyer as directors of Electronic Sensor Technology for the
fiscal year ended December 31, 2008 is reflected in the Summary Compensation
Table above.

(3) The manner in which the company values stock and option awards is outlined
in Note 1 to the company's consolidated financial statements for the fiscal year
ended December 31, 2008 under the heading "Stock-Based Compensation" as well as
Note 5 under the heading "Stockholders' Deficit" incorporated herein by
reference to our annual report on Form 10-K for the year 2008. We did not grant
any stock awards to the directors during our 2007 fiscal year or our 2008 fiscal
year.

(4) The company reimburses each director who is not an officer or employee of
the company for reasonable out-of-pocket expenses for attending board meetings.
In 2008, with respect to each director, the aggregate amount of such expenses
amounted to less than $10,000.

(5) On November 24, 2008, Thomas Dudley was granted an option under our 2005
Stock Incentive Plan to acquire 500,000 shares of our common stock, par value
$0.001, at an exercise price of $0.02 per share. The option shares will vest as
follows: 125,000 will vest on November 24, 2009, 125,000 will vest on November
24, 2010, 125,000 will vest on November 24, 2011 and 125,000 will vest on
November 24, 2012. The manner in which the company values the option awards is
outlined in Note 1 to the company's consolidated financial statements under the
heading "Stock-Based Compensation" as well as Note 5 under the heading
"Stockholders' Deficit" included in our annual report on Form 10-K for the year
2008.

(6) On November 24, 2008, Low Gay Teck was granted an option under our 2005
Stock Incentive Plan to acquire 500,000 shares of our common stock, par value
$0.001, at an exercise price of $0.02 per share. The option shares will vest as
follows: 125,000 will vest on November 24, 2009, 125,000 will vest on November
24, 2010, 125,000 will vest on November 24, 2011 and 125,000 will vest on
November 24, 2012. The manner in which the company values the option awards is
outlined in Note 1 to the company's consolidated financial statements under the
heading "Stock-Based Compensation" as well as Note 5 under the heading
"Stockholders' Deficit" included in our annual report on Form 10-K for the year
2008.

(7) In 2008, Maggie Tham received an attendance fee of $1,500 per meeting.

(8) On July 25, 2008, Maggie Tham was granted an option under our 2005 Stock
Incentive Plan to acquire 500,000 shares of our common stock, par value $0.001
per share, at an exercise price of $0.03 per share (which was the closing price
of the common stock on July 25, 2008). The option shares will vest as follows:
125,000 will vest on July 25, 2009, 125,000 will vest on July 25, 2010, 125,000
will vest on July 25, 2011 and 125,000 will vest on July 25, 2012. The manner in
which the company values the option awards is outlined in Note 1 to the
company's consolidated financial statements under the heading "Stock-Based
Compensation" as well as Note 5 under the heading "Stockholders' Deficit"
included in our annual report on Form 10-K for the year 2008.

(9) In 2008, Lewis Larson received an attendance fee of $2,000 per meeting.

(10) In 2008, James Wilburn received an attendance fee of $1,500 per meeting and
a monthly retainer fee of $1,000, which was paid quarterly.

(11) In 2008, Rita Benoy Bushon received an attendance fee of $2,500 per
meeting.

(12) James Frey received an attendance fee of $2,000 per meeting and a monthly
retainer fee of $2,000, which was paid quarterly.

(13) In 2008, Francis Chang received an attendance fee of $1,500 per meeting.

(14) Amount represents $5,206 in health insurance premiums paid by the company
on behalf of Francis Chang.

Narrative to Director Compensation

Agreements with Directors

The company has agreements with each of the directors listed in the
Director Compensation Table to continue to pay the meeting attendance fees set
forth in such table, as well as to reimburse such directors for reasonable
out-of-pocket expenses for attending board meetings.

Certain Relationships and Related Transactions

Halfmoon Bay Capital Ltd Debenture

On April 10, 2009, Electronic Sensor Technology received $1 million
from Halfmoon Bay 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 company. Halfmoon Bay owns
approximately 55% of the outstanding common stock of the company and
beneficially owns an additional 10% of the outstanding common stock of the
company by virtue of the shares underlying a 9% convertible debenture issued by
Electronic Sensor Technology to Halfmoon Bay on March 28, 2008, as described
further below under the heading "Securities Purchase Agreement with Halfmoon Bay
Capital Ltd." The 9% debenture issued to Halfmoon Bay on April 10, 2009 is
attached as Exhibit 4.1 to, and is more fully described in, our current report
on Form 8-K filed on April 15, 2009.

Securities Purchase Agreement with Halfmoon Bay Capital Ltd

On March 28, 2008, Electronic Sensor Technology issued $2 million
aggregate principal amount of 9% convertible debentures with a conversion price
of $0.0486 to Halfmoon Bay and 86,419,753 shares of the company's common stock
in exchange for $5.5 million from Halfmoon Bay, pursuant to a Securities
Purchase Agreement dated March 28, 2008 between the company and Halfmoon Bay, as
more fully described on our current report on Form 8-K filed on April 3, 2008.

Midsummer Investment, Ltd. and Islandia, L.P.

On September 7, 2006, Electronic Sensor Technology entered into a
Forbearance and Amendment Agreement with Midsummer Investment, Ltd. and
Islandia, L.P., which, at such time, each held an 8% convertible debenture and a
warrant, the common stock underlying which represented more than 5% of the
beneficial ownership of our outstanding shares of common stock. The Forbearance
and Amendment Agreement is attached as Exhibit 10.1 to, and is more fully
described in, our current report on Form 8-K filed September 8, 2006. On
December 27, 2007, Electronic Sensor Technology entered into a First Amendment
Agreement with Midsummer and Islandia, which is attached as Exhibit 10.1 to, and
is more fully described in, our amended current report on Form 8-K/A filed
January 14, 2008.

On February 26, 2008, the company entered into a Conversion and
Termination Agreement with Midsummer and Islandia, which is attached as Exhibit
10.2 to, and is more fully described in, our current report on Form 8-K filed
February 27, 2008. Pursuant to the Conversion and Termination Agreement, on
March 31, 2008, the company paid to Midsummer and Islandia an aggregate amount
of $3.5 million of the $7 million outstanding principal amount of the
convertible debentures. Further, pursuant to the Conversion and Termination
Agreement, Midsummer and Islandia converted the remaining $3.5 million of the
principal amount of their 8% convertible debentures, together with interest
thereon, at a conversion price of $0.35 per share of common stock, and the
remaining shares of common stock underlying the warrants held by Midsummer and
Islandia were reduced by 50%.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934 requires that the
company's officers, directors and persons who beneficially own more than ten
percent (10%) of the company's outstanding common stock, file reports of
ownership and changes in ownership with the Securities and Exchange Commission.
Such persons are required

by the Securities and Exchange Commission to furnish the company with copies of
all Section 16(a) reports they file.

To the best of our knowledge, based solely on review of copies of such
reports, including Forms 3, 4 and 5 and amendments thereto, we are aware of the
following persons who, during the period ended December 31, 2008, did not file
on a timely basis reports required by Section 16(a) of the Securities Exchange
Act of 1934:

o Halfmoon Bay Capital Ltd did not timely file an initial statement
of beneficial ownership on Form 3 reporting ownership of more
than ten percent (10%) of the company's outstanding common stock.

o Maggie Tham did not timely file one Form 3 reporting her
appointment as a director of the company and one Form 4 reporting
the grant of an option to purchase 500,000 shares of the
company's common stock.

o William Wittmeyer did not timely file one Form 3 reporting his
appointment as a director of the company and one Form 4 reporting
the grant of an option to purchase 500,000 shares of the
company's common stock.

o Low Gay Teck did not timely file one Form 3 reporting his
appointment as a director of the company.

o Thomas Dudley did not timely file one Form 3 reporting his
appointment as a director of the company.

INDEPENDENT PUBLIC ACCOUNTANTS

Sherb & Co. LLP has been selected by our audit committee as our
independent registered public accounting firm to audit our books and accounts,
as well as those of our subsidiaries, for the fiscal year ending December 31,
2008. Sherb & Co. has served as our independent registered public accounting
firm since 2005.

Audit Fees

The aggregate fees billed for the 2007 and 2008 fiscal years for
professional services rendered by our principal accountant, Sherb & Co., LLP,
for the audit of our annual financial statements and review of financial
statements included in our periodic reports on Form 10-Q and other services
provided in connection with statutory and regulatory filings were $53,000 and
$58,000 respectively.

Audit-Related Fees

No assurance or related services that are reasonably related to the
performance of the audit or review of our financial statements were rendered by
our principal accountants during the 2007 or 2008 fiscal year.

Tax Fees

The aggregate fees to be billed for professional services rendered by
our current principal accountant, Sherb & Co., LLP, for tax compliance and tax
advice were $7,500 and $5,000 for 2007 and 2008 fiscal years, respectively.

All Other Fees

No other products or services were provided by our principal
accountants during the 2007 or 2008 fiscal year, other than the services
outlined in the foregoing sections.

Audit Committee

Our audit committee has not to date adopted any pre-approval policies
or procedures.

INTEREST OF CERTAIN PERSONS IN OR OPPOSITION TO MATTERS TO BE ACTED UPON

None.

PROPOSALS BY SHAREHOLDERS

None.

FINANCIAL AND OTHER INFORMATION

The following documents as filed with the SEC by the company are
incorporated herein by reference:

1. Annual Report on Form 10-K for the fiscal year ended December 31,
2008

2. Quarterly Report on Form 10-Q for the quarter ended March 31,
2009

WHERE YOU CAN FIND MORE INFORMATION

The company is subject to the information and reporting requirements
of the Exchange Act and in accordance with the Exchange Act, we file periodic
reports, documents and other information with the SEC relating to our business,
financial statements and other matters. These reports and other information may
be inspected and are available for copying at the offices of the SEC, 100 F
Street, NE, Washington, DC 20549 or may be accessed on the SEC website at
www.sec.gov.

The SEC allows the company to "incorporate by reference" into this
information statement documents it files with the SEC. This means that the
company can disclose information to you by referring you to those documents. The
information incorporated by reference is considered to be part of this
information statement.

DELIVERY OF DOCUMENTS TO SHAREHOLDERS SHARING AN ADDRESS

We will, upon the written request of any person who is a beneficial
owner of our common shares on the record date, April 8, 2009, furnish without
charge a copy of our annual report filed with the SEC on Form 10-K for the year
2008 and a copy of our quarterly report filed with the SEC on Form 10-Q for the
three months ended March 31, 2009. Such request should contain a representation
that the person requesting this material was a beneficial owner of our shares on
the record date. Such request should be sent to the Secretary at our address
indicated on the cover page of this information statement.

We will pay all costs associated with the distribution of this
information statement, including the costs of printing and mailing. The company
will reimburse brokerage firms and other custodians, nominees and fiduciaries
for reasonable expenses incurred by them in sending this information statement
to the beneficial owners of the common stock.

The SEC has adopted rules that permit companies and intermediaries
such as brokers to satisfy delivery requirements for shareholder communications
such as this information statement with respect to two or more shareholders
sharing the same address by delivering a single information statement addressed
to those shareholders. We may deliver a single information statement to multiple
shareholders sharing an address unless we have received contrary instructions
from the affected shareholders. We will undertake to deliver promptly upon
written or oral request a separate copy of this information statement to a
shareholder at a shared address to which a single copy of this information
statement was delivered. Any such request should be directed to our Secretary at
the address indicated on the cover page of this information statement. If, at
any time, you decide you wish to receive a separate copy of all future
shareholder communications, or if you are receiving multiple copies of such
shareholder communications and wish to receive only one, please notify us of
your request at the address indicated on the cover page of this information
statement.

By Order of the Board of Directors
Philip Yee,
Secretary, Treasurer and Chief Financial Officer

Newbury Park, California
May 22, 2009

APPENDIX A

AMENDED AND RESTATED ARTICLES OF INCORPORATION

ELECTRONIC SENSOR TECHNOLOGY, INC.

----------

FIRST: The name of this corporation is:

ELECTRONIC SENSOR TECHNOLOGY, INC.

SECOND: Its principal office in the State of Nevada is located at 502
East John Street, Carson City, Nevada, 89706. The name and address of its
resident agent is CSC Services of Nevada, Inc., at the above address.

THIRD: The purpose of the business of this corporation is to engage in
any lawful act or activity for which corporations may be organized under the
General Corporation Law of the State of Nevada.

FOURTH: The total number of shares which this corporation is
authorized to issue is 250,000,000 shares of common stock, $.001 par value, and
50,000,000 shares of preferred stock, $.001 par value.

The preferred stock may be divided into such number of series as the
board of directors of this corporation may determine. The board of directors of
this corporation is vested with authority to determine and state the voting
powers, designations, preferences, limitations, restrictions and relative rights
granted to or imposed upon any wholly unissued series of preferred stock, and to
fix the number of shares of any series of preferred stock and the designation of
any such series of preferred stock. The board of directors, within the limits
and restrictions stated in any resolution or resolutions of the board of
directors originally fixing the number of shares constituting any series, may
increase or decrease (but not below the number of shares of such series then
outstanding) the number of shares of any series subsequent to the issue of
shares of that series.

FIFTH: The governing board of this corporation shall be known as
directors, and the number of directors may from time to time be increased or
decreased in such manner as shall be provided in the by-laws of this
corporation, provided that the number of directors shall not be reduced less
than one unless there is less than one stockholder.

SIXTH: The capital stock, after the amount of the subscription price,
or par value, has been paid in, shall not be subject to assessment to pay the
debts of this corporation.

SEVENTH: This corporation is to have perpetual existence.

EIGHTH: In furtherance and not in limitation of the powers conferred
by statute, the board of directors is expressly authorized, subject to the
by-laws, if any, adopted by the stockholders, to make, alter or amend the
by-laws of this corporation.

NINTH: Meetings of stockholders may be held outside of the State of
Nevada at such place or places as may be designated from time to time by the
board of directors or in the by-laws of this corporation.

TENTH: This corporation reserves the right to amend, alter, change or
repeal any provision contained in the articles of incorporation, in the manner
now or hereafter prescribed, and all rights conferred upon stockholders herein
are granted subject to this reservation.

The foregoing Amended and Restated of Articles of Incorporation has
been duly approved by the board of directors.

The foregoing Amended and Restated Articles of Incorporation has been
duly approved by the required vote of the stockholders in accordance with
Sections 78.390 and 78.403 of the Nevada Revised Statutes. The vote by which the
stockholders holding shares in the corporation entitling them to exercise at
least a majority of the voting power, or such greater proportion of the voting
power as may be required in the case of a vote by classes or series, or as may
be required by the provisions of the articles of incorporation have voted in
favor of the amendment is: 104,377,312 shares (67%).

I further declare under penalty of perjury under the laws of the State
of Nevada that the matters set forth in this certificate are true and correct of
my own knowledge.

Dated: _____________, 2009

--------------------------------
Philip Yee, Secretary, Treasurer
and Chief Financial Officer