SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 22,
1995
ELECTROSOURCE, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-16323 74-2466304
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification Number)
3800B Drossett Drive
Austin, Texas 78744-1131
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (512) 445-6606
Item 5. Other
Registrant wishes to report the following events that the
registrant deems of importance to security holders:
Japanese Distribution Agreement to End
On December 5, 1995, the Company received notice from Mitsui
Engineering and Shipbuilding Co., Ltd. ("MES") of their intent to
terminate the Distributorship Agreement of July 7, 1994 (the
"Agreement"). Under the Agreement, MES was to be the exclusive
distributor of Electrosource products in Japan and had the option
to become a manufacturer in Japan. Termination of the Agreement
is not expected to have a direct financial effect on the Company.
Management will continue discussions with a number of other
groups who have expressed interest in licenses for its products
in Asia, including Japan. Electrosource management will also now
directly communicate with a number of potential large customers
in Japan.
National Association of Securities Dealers Automated Quotation
System Oral Hearing
The Company's Common Stock is traded in the Over-the-Counter
Market and is reported on the National Association of Securities
Dealers Automated Quotation System ("NASDAQ") under the symbol
"ELSI." In order to maintain listing by NASDAQ, the Company must
maintain a minimum $1-million of stockholders' equity. As of
September 30, 1995, the Company was not in compliance with this
requirement. On December 22, 1995, the Company submitted a
formal request to NASDAQ for an oral hearing in order to present
a plan of action that management believes will result in full
compliance with the minimum stockholder equity requirement.
If the minimum required balance is not maintained, the NASDAQ may
choose to delist the Common Stock of the Company from trading
which would restrict the liquidity of the Common Stock.
Delisting by NASDAQ would be an Event of Default under the terms
of certain of the Company's Convertible Debentures. An Event of
Default could trigger a requirement to repay such Debentures
immediately.
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.
ELECTROSOURCE, INC.
By: /s/ Mary Beth Koenig
Mary Beth Koenig
Chief Accounting Officer
Date: December 22, 1995
