On January 23, 2013, Xenonics Holdings, Inc. entered into an agreement dated as of January 22, 2013 and closed the transactions contemplated by the agreement. Pursuant to the agreement: the maturity date of two previously reported loans to the company, each in the principal amount of $500,000 and secured by substantially all of the company's assets, was extended from January 15, 2013 to October 31, 2013 and the interest rate on each loan was increased to 13% per annum; the company repaid in full two promissory notes, each in the principal amount of $37,500; and the company borrowed additional funds in the aggregate principal amount of $450,000, which loans are secured by substantially all of the assets of the company, bear interest at the rate of 13% per annum, and are repayable in full on October 31, 2013.