The US Bankruptcy Court gave an order to Electronic Sensor Technology, Inc. to obtain DIP financing on a final basis on November 12, 2014. As per the order, the debtor has been authorized to obtain a loan in the amount of $1.88 million from Mango Bay Enterprises, Inc. The DIP loan would carry an interest rate of Prime Rate plus 2% p.a., along with an additional 3% p.a. interest in the event of default. The DIP facility would mature either on May 31, 2015 or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier.

Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.05 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral. The Court had granted the debtor an interim approval to access $0.60 million as DIP financing on October 28, 2014. Weintraub & Selth, APC acted as advisor to the DIP lender.