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<P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><FONT STYLE="font-size: 14pt">&nbsp;<B>United States</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 14pt"><B>SECURITIES
AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 14pt"><B>FORM 8-K</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of<BR>
the Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Date of Report (Date of earliest event
reported):</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>September&nbsp;28, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 16pt"><B>ISECURETRAC
CORP.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 50%; font-weight: bold; text-align: center">Delaware</TD>
    <TD STYLE="vertical-align: bottom; width: 2%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 48%; font-weight: bold; text-align: center">0-26455</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center">(State of Formation)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">(Commission File Number)</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">87-0347787</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="text-align: center">(IRS Employer Identification Number)</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>5078 South 111<SUP>th</SUP> Street<BR>
Omaha, NE</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; font-weight: bold; text-align: center">68137</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center">(Address of principal executive offices)</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">(Zip Code)</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">(402)&nbsp;537-0022</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="text-align: center">(Registrants&rsquo; telephone number, including area code)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Not applicable</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="text-align: center">(Former name or former address, if changed since last report)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT><FONT STYLE="font-size: 10pt">
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT><FONT STYLE="font-size: 10pt">
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT><FONT STYLE="font-size: 10pt">
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT><FONT STYLE="font-size: 10pt">
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e(c))</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 1.01. Entry into Material Definitive Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 28, 2012, iSecureTrac Corp.
(the &ldquo;Company&rdquo;) entered into a Debt Conversion and Recapitalization Agreement (the&nbsp;&ldquo;Conversion Agreement&rdquo;)
with IST Holdings, LLC, a Nebraska limited liability company (&ldquo;Holdings&rdquo;) and certain other holders of the Company&rsquo;s
Series&nbsp;C 8% Cumulative, Compounding Exchangeable Preferred Stock (the&nbsp;&ldquo;Series&nbsp;C Preferred Stock&rdquo;), pursuant
to which Holdings has converted all but $525,000 of the $2,000,000 principal balance of that certain Promissory Note, dated December
31, 2010, issued by the Company in favor of Crestpark LP, Inc. and acquired by Holdings from Crestpark LP, Inc. on August 31, 2012
(the &ldquo;Original Note&rdquo;) plus the $241,722 of interest accrued thereon as of September 28, 2012, into 156,066 shares of
the Company&rsquo;s Series&nbsp;D 8% Cumulative, Compounding Exchangeable Preferred Stock (the &ldquo;Series&nbsp;D Preferred Stock&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the Conversion Agreement, t<FONT STYLE="color: black">he
$525,000 remaining principal balance of the Original Note has been exchanged by Holdings for a new promissory note in the principal
amount of $525,000 (the&nbsp;&ldquo;Substitute Note&rdquo;) that has resulted in a reduction of the interest rate on the remaining
principal balance from the fixed rate of 9.5% per annum applicable under the Original Note to a fixed rate of 6.0% per annum under
the Substitute Note. The Substitute Note provides for monthly payments of interest only for twelve months and then requires monthly
amortizing payments of principal and interest through maturity of the Substitute Note on March&nbsp;31, 2017. The Original Note
provided that all principal and accrued interest was due and payable at maturity on January&nbsp;1, 2015. In all other respects,
the indebtedness evidenced by the Substitute Note remains subject to the terms and conditions of </FONT>that certain Credit and
Security Agreement originally entered into by and between the Company and Crestpark LP, Inc. on dated October&nbsp;29, 2007, as
subsequently amended (the &ldquo;Credit and Security Agreement&rdquo;), which was acquired and assumed by Holdings from Crestpark
LP, Inc. on August 29, 2012, including a first priority security interest in the assets of the Company granted thereby. In addition
to the $1,475,000 reduction in the Company&rsquo;s long-term debt, the debt conversion transaction will reduce the Company&rsquo;s
annual interest expense by $158,500 during the first twelve months and will further reduce annual interest expense in future years
as the principal balance of the Substitute Note is paid down. This reduction in interest expense, combined with the extended maturity
date of the Substitute Note, is expected to enhance the Company&rsquo;s short-term and long-term liquidity and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Conversion Agreement also provided for
the exchange of 1,701,146 of the 1,715,216 shares the Company&rsquo;s Series C Preferred Stock outstanding as of September 28,
2012 and all 1,594,425 shares of Series D Preferred outstanding as of September 28, 2012 (including the 156,066 shares issued in
conversion of long-term debt as described above) into a total of 37,862,484 shares of the Company&rsquo;s common stock. The exchange
of the shares of Series&nbsp;C Preferred Stock was made in accordance with the terms of the Amended and Restated Certificate of
Designation, Preferences and Rights of the Series C Preferred Stock (the&nbsp;&ldquo;Series C Certificate of Designation&rdquo;),
which provides that each share of Series&nbsp;C Preferred Stock is exchangeable at any time at the election of the holder into
4.7826087 shares of common stock and certain warrants for the purchase of common stock, except that no such warrants were issued
in exchange for the exchanged shares of Series C Preferred Stock pursuant to the Conversion Agreement. The exchange of the shares
of Series&nbsp;D Preferred Stock was made in accordance with the terms of the Certificate of Designation, Preferences and Rights
of the Series&nbsp;D Preferred Stock which provides that each share of Series D Preferred Stock is exchangeable at any time at
the election of the holder for 18.644068 shares of the Company&rsquo;s common stock and did not provide for the issuance of any
warrants. In addition, Holdings and each other holder of Series&nbsp;C Preferred Stock participating in the exchange transaction
terminated all warrants held by them for the purchase of additional shares of common stock in connection with the exchange transaction.
The Conversion Agreement also provided that the exchange of such shares of Series C Preferred Stock and the shares of Series D
Preferred Stock resulted in a termination of any rights with respect to dividends that have accrued on these shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The exchange of all but 14,070 shares of
the Series C Preferred Stock and all shares of the Series D Preferred Stock for shares of the Company&rsquo;s common stock has
eliminated the continued accrual of dividends on the exchanged shares of Series C Preferred Stock and Series&nbsp;D Preferred Stock,
as well as the liquidation preference that would have been payable to the holders of such exchanged shares of Series C Preferred
Stock and Series D Preferred Stock in the event of a sale or similar strategic transaction by the Company. In addition, the right
of the holders of the Series C Preferred Stock and Series D Preferred Stock to collectively appoint a majority of the Company&rsquo;s
directors has terminated as a result of the exchange transaction since the remaining shares of Series C Preferred Stock outstanding
do not have this right under the terms of the Series C Certificate of Designation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The shares of common stock issued pursuant
to the terms of the Conversion Agreement were issued without registration under the Securities Act of 1933, as amended (the &ldquo;Securities
Act&rdquo;) in reliance on an exemption from such registration requirements. Holdings and the Company have entered into a Registration
Rights Agreement, dated September&nbsp;28, 2012, pursuant to which Holdings has been granted certain rights to have the shares
of common stock issued to Holdings under the Conversion Agreement registered for sale pursuant to the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The members of Holdings
include Roger Kanne, Joseph Schwaller and Thomas Burlin, each of whom is a director of the Company, and Lincoln Zehr, the Chief
Executive Officer of the Company. Messrs. Kanne and Schwaller control Holdings in their capacities as the sole managers of Holdings.
The terms of the Conversion Agreement were approved by the disinterested director of the Company who has no financial or other
interest in Holdings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Item 1.02. Termination of a Material
Definitive Agreement.</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As reported above under Item&nbsp;1.01 hereof,
all of which is incorporated by reference into this Item 1.02, on September 28, 2012, in connection with the conversion of $1,475,000
of long-term debt into shares of the Company&rsquo;s common stock, the &ldquo;Original Note&rdquo;, dated December 30, 2010, originally
issued by the Company in favor of Crestpark LP, Inc. in the principal amount of $2,000,000, and which had been acquire by Holdings
from Crestpark LP, Inc. on August 29, 2012, was terminated and the Company issued the Substitute Note described under Item 1.01
hereof to Holdings in order to evidence the $525,000 of indebtedness owed by the Company to Holdings after the conversion of the
remaining principal of the Original Note into common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Item 2.03. Creation of a Direct Financial Obligation or
and Obligation under an Off-Balance Sheet Arrangement of a Registrant.</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The discussion of the Substitute Note contained
in Item&nbsp;1.01 hereof is incorporated by reference into this Item 2.03.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 3.02. Unregistered Sale of Equity Securities.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="color: black">As reported above
under Item&nbsp;1.01 hereof, all of which is incorporated by reference into this Item 3.02, on September 28, 2012, the Company
issued 156,066 shares of its Series&nbsp;D Preferred Stock to </FONT>Crestpark<FONT STYLE="color: black"> </FONT>as a result of
the conversion of $1,475,000 of long-term debt and $241,722 of accrued interest thereon. In addition, the Company has agreed to
issue <FONT STYLE="color: black">a total of </FONT>37,862,484&nbsp;<FONT STYLE="color: black">shares of its common stock in exchange
for </FONT>1,701,146 shares of its Series C Preferred Stock and 1,594,425 shares of its Series D Preferred Stock (including the
156,066 shares mentioned above). Both the issuance of the additional shares of Series&nbsp;D Preferred Stock and the issuance of
the common stock in exchange for shares of Series C Preferred Stock and Series&nbsp;D Preferred Stock were exempt from registration
under the Securities Act pursuant to Section 4(a)(2) thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 5.02 Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 28, 2012, the Company&rsquo;s
Board of Directors of unanimously approved the appointment of David Pasahow as a director of the Company. The appointment of Mr.
Pasahow to the Board was a condition to closing the transaction under the Conversion Agreement described in Item 1.01 hereof. At
this time, Mr. Pasahow has not been appointed to any committee of the Board of Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mr. Pasahow, age 60, is the founder of Blue
Line Advisors, a company he formed in January 2004 to provide executive search and leadership services to the aerospace, transportation
and other selected sectors. Prior to forming Blue Line Advisors, Mr. Pasahow was a Senior Partner in the firm of Heidrick &amp;
Struggles, the world&rsquo;s largest executive search firm, for 17 years, where he focused on the general/business aviation practice.
Prior to that, Mr. Pasahow was a principal at Nordeman Grimm, a medium-sized search firm headquartered in New York City. Between
1979 and 1981, Mr. Pasahow served as a senior consultant in the executive search practice of Peat, Marwick, Mitchell &amp; Co.,
located in their Chicago office. Earlier, he was involved in establishing a graduate business school program in Chicago from 1977
to 1979. He began his career with the Western Union Telegraph Company in field sales, sales management and product management assignments.
Mr. Pasahow holds an A.B. degree in Psychology from Kenyon College and an M.B.A. from Keller Graduate School of Management. He
is an active pilot and aircraft owner, is on the Board of Conax Buffalo Technologies and serves as Chairman of the Commemorative
Air Force Foundation .</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 9.01 Financial Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following exhibits are attached to
this report:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">10.1</TD><TD>Debt Conversion and Recapitalization Agreement, dated September 28, 2012, by and among the Company, IST Holdings, LLC and certain
other holders of the Company&rsquo;s Series C 8% Cumulative, Compounding Exchangeable Preferred Stock.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">10.2</TD><TD>Promissory Note, dated September 28, 2012, issued by the Company in favor of IST&nbsp;Holdings, LLC.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">10.3</TD><TD>Registration Rights Agreement, dated September 28, 2012, by and between the Company and IST Holdings, LLC.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">99.1</TD><TD STYLE="text-align: justify">Company Press Release.</TD></TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SIGNATURES</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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.</P>

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<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">ISECURETRAC CORP.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 3%">By</TD>
    <TD STYLE="width: 35%; border-bottom: windowtext 1pt solid">/s/ Lincoln Zehr</TD>
    <TD STYLE="width: 12%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Lincoln Zehr</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Chief Executive Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>October 3, 2012</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
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[{"type": "8-K", "sequence": "1", "filename": "v324976_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 28808}]
{"company-data": {"conformed-name": "ISECURETRAC CORP", "cik": "0001088120", "assigned-sic": "4899", "irs-number": "870347787", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-26455", "film-number": "121126168"}, "business-address": {"street1": "5078 SOUTH 111TH STREET", "city": "OMAHA", "state": "NE", "zip": "68137", "phone": "8665370022"}, "mail-address": {"street1": "5078 SOUTH 111TH STREET", "city": "OMAHA", "state": "NE", "zip": "68137"}, "former-company": {"former-conformed-name": "ADVANCED BUSINESS SCIENCES INC/DE", "date-changed": "19990607"}}
United States
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 of Report (Date of earliest event
reported):
September 28, 2012
ISECURETRAC
CORP.
(Exact name of registrant as specified in
its charter)
Delaware
0-26455
(State of Formation)
(Commission File Number)
87-0347787
(IRS Employer Identification Number)
5078 South 111
th
Street
Omaha, NE
68137
(Address of principal executive offices)
(Zip Code)
(402) 537-0022
(Registrants' telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
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:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e(c))
Item 1.01. Entry into Material Definitive Agreement
On September 28, 2012, iSecureTrac Corp.
(the "Company") entered into a Debt Conversion and Recapitalization Agreement (the "Conversion Agreement")
with IST Holdings, LLC, a Nebraska limited liability company ("Holdings") and certain other holders of the Company's
Series C 8% Cumulative, Compounding Exchangeable Preferred Stock (the "Series C Preferred Stock"), pursuant
to which Holdings has converted all but $525,000 of the $2,000,000 principal balance of that certain Promissory Note, dated December
31, 2010, issued by the Company in favor of Crestpark LP, Inc. and acquired by Holdings from Crestpark LP, Inc. on August 31, 2012
(the "Original Note") plus the $241,722 of interest accrued thereon as of September 28, 2012, into 156,066 shares of
the Company's Series D 8% Cumulative, Compounding Exchangeable Preferred Stock (the "Series D Preferred Stock").
Under the Conversion Agreement, t
he
$525,000 remaining principal balance of the Original Note has been exchanged by Holdings for a new promissory note in the principal
amount of $525,000 (the "Substitute Note") that has resulted in a reduction of the interest rate on the remaining
principal balance from the fixed rate of 9.5% per annum applicable under the Original Note to a fixed rate of 6.0% per annum under
the Substitute Note. The Substitute Note provides for monthly payments of interest only for twelve months and then requires monthly
amortizing payments of principal and interest through maturity of the Substitute Note on March 31, 2017. The Original Note
provided that all principal and accrued interest was due and payable at maturity on January 1, 2015. In all other respects,
the indebtedness evidenced by the Substitute Note remains subject to the terms and conditions of
that certain Credit and
Security Agreement originally entered into by and between the Company and Crestpark LP, Inc. on dated October 29, 2007, as
subsequently amended (the "Credit and Security Agreement"), which was acquired and assumed by Holdings from Crestpark
LP, Inc. on August 29, 2012, including a first priority security interest in the assets of the Company granted thereby. In addition
to the $1,475,000 reduction in the Company's long-term debt, the debt conversion transaction will reduce the Company's
annual interest expense by $158,500 during the first twelve months and will further reduce annual interest expense in future years
as the principal balance of the Substitute Note is paid down. This reduction in interest expense, combined with the extended maturity
date of the Substitute Note, is expected to enhance the Company's short-term and long-term liquidity and results of operations.
The Conversion Agreement also provided for
the exchange of 1,701,146 of the 1,715,216 shares the Company's Series C Preferred Stock outstanding as of September 28,
2012 and all 1,594,425 shares of Series D Preferred outstanding as of September 28, 2012 (including the 156,066 shares issued in
conversion of long-term debt as described above) into a total of 37,862,484 shares of the Company's common stock. The exchange
of the shares of Series C Preferred Stock was made in accordance with the terms of the Amended and Restated Certificate of
Designation, Preferences and Rights of the Series C Preferred Stock (the "Series C Certificate of Designation"),
which provides that each share of Series C Preferred Stock is exchangeable at any time at the election of the holder into
4.7826087 shares of common stock and certain warrants for the purchase of common stock, except that no such warrants were issued
in exchange for the exchanged shares of Series C Preferred Stock pursuant to the Conversion Agreement. The exchange of the shares
of Series D Preferred Stock was made in accordance with the terms of the Certificate of Designation, Preferences and Rights
of the Series D Preferred Stock which provides that each share of Series D Preferred Stock is exchangeable at any time at
the election of the holder for 18.644068 shares of the Company's common stock and did not provide for the issuance of any
warrants. In addition, Holdings and each other holder of Series C Preferred Stock participating in the exchange transaction
terminated all warrants held by them for the purchase of additional shares of common stock in connection with the exchange transaction.
The Conversion Agreement also provided that the exchange of such shares of Series C Preferred Stock and the shares of Series D
Preferred Stock resulted in a termination of any rights with respect to dividends that have accrued on these shares.
2
The exchange of all but 14,070 shares of
the Series C Preferred Stock and all shares of the Series D Preferred Stock for shares of the Company's common stock has
eliminated the continued accrual of dividends on the exchanged shares of Series C Preferred Stock and Series D Preferred Stock,
as well as the liquidation preference that would have been payable to the holders of such exchanged shares of Series C Preferred
Stock and Series D Preferred Stock in the event of a sale or similar strategic transaction by the Company. In addition, the right
of the holders of the Series C Preferred Stock and Series D Preferred Stock to collectively appoint a majority of the Company's
directors has terminated as a result of the exchange transaction since the remaining shares of Series C Preferred Stock outstanding
do not have this right under the terms of the Series C Certificate of Designation.
The shares of common stock issued pursuant
to the terms of the Conversion Agreement were issued without registration under the Securities Act of 1933, as amended (the "Securities
Act") in reliance on an exemption from such registration requirements. Holdings and the Company have entered into a Registration
Rights Agreement, dated September 28, 2012, pursuant to which Holdings has been granted certain rights to have the shares
of common stock issued to Holdings under the Conversion Agreement registered for sale pursuant to the Securities Act.
The members of Holdings
include Roger Kanne, Joseph Schwaller and Thomas Burlin, each of whom is a director of the Company, and Lincoln Zehr, the Chief
Executive Officer of the Company. Messrs. Kanne and Schwaller control Holdings in their capacities as the sole managers of Holdings.
The terms of the Conversion Agreement were approved by the disinterested director of the Company who has no financial or other
interest in Holdings.
Item 1.02. Termination of a Material
Definitive Agreement.
As reported above under Item 1.01 hereof,
all of which is incorporated by reference into this Item 1.02, on September 28, 2012, in connection with the conversion of $1,475,000
of long-term debt into shares of the Company's common stock, the "Original Note", dated December 30, 2010, originally
issued by the Company in favor of Crestpark LP, Inc. in the principal amount of $2,000,000, and which had been acquire by Holdings
from Crestpark LP, Inc. on August 29, 2012, was terminated and the Company issued the Substitute Note described under Item 1.01
hereof to Holdings in order to evidence the $525,000 of indebtedness owed by the Company to Holdings after the conversion of the
remaining principal of the Original Note into common stock.
3
Item 2.03. Creation of a Direct Financial Obligation or
and Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The discussion of the Substitute Note contained
in Item 1.01 hereof is incorporated by reference into this Item 2.03.
Item 3.02. Unregistered Sale of Equity Securities.
As reported above
under Item 1.01 hereof, all of which is incorporated by reference into this Item 3.02, on September 28, 2012, the Company
issued 156,066 shares of its Series D Preferred Stock to
Crestpark
as a result of
the conversion of $1,475,000 of long-term debt and $241,722 of accrued interest thereon. In addition, the Company has agreed to
issue
a total of
37,862,484
shares of its common stock in exchange
for
1,701,146 shares of its Series C Preferred Stock and 1,594,425 shares of its Series D Preferred Stock (including the
156,066 shares mentioned above). Both the issuance of the additional shares of Series D Preferred Stock and the issuance of
the common stock in exchange for shares of Series C Preferred Stock and Series D Preferred Stock were exempt from registration
under the Securities Act pursuant to Section 4(a)(2) thereof.
Item 5.02 Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On September 28, 2012, the Company's
Board of Directors of unanimously approved the appointment of David Pasahow as a director of the Company. The appointment of Mr.
Pasahow to the Board was a condition to closing the transaction under the Conversion Agreement described in Item 1.01 hereof. At
this time, Mr. Pasahow has not been appointed to any committee of the Board of Directors.
Mr. Pasahow, age 60, is the founder of Blue
Line Advisors, a company he formed in January 2004 to provide executive search and leadership services to the aerospace, transportation
and other selected sectors. Prior to forming Blue Line Advisors, Mr. Pasahow was a Senior Partner in the firm of Heidrick &
Struggles, the world's largest executive search firm, for 17 years, where he focused on the general/business aviation practice.
Prior to that, Mr. Pasahow was a principal at Nordeman Grimm, a medium-sized search firm headquartered in New York City. Between
1979 and 1981, Mr. Pasahow served as a senior consultant in the executive search practice of Peat, Marwick, Mitchell & Co.,
located in their Chicago office. Earlier, he was involved in establishing a graduate business school program in Chicago from 1977
to 1979. He began his career with the Western Union Telegraph Company in field sales, sales management and product management assignments.
Mr. Pasahow holds an A.B. degree in Psychology from Kenyon College and an M.B.A. from Keller Graduate School of Management. He
is an active pilot and aircraft owner, is on the Board of Conax Buffalo Technologies and serves as Chairman of the Commemorative
Air Force Foundation .
4
Item 9.01 Financial Statements and Exhibits.
The following exhibits are attached to
this report:
10.1
Debt Conversion and Recapitalization Agreement, dated September 28, 2012, by and among the Company, IST Holdings, LLC and certain
other holders of the Company's Series C 8% Cumulative, Compounding Exchangeable Preferred Stock.
10.2
Promissory Note, dated September 28, 2012, issued by the Company in favor of IST Holdings, LLC.
10.3
Registration Rights Agreement, dated September 28, 2012, by and between the Company and IST Holdings, LLC.
99.1
Company Press Release.
5
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.
ISECURETRAC CORP.
By
/s/ Lincoln Zehr
Lincoln Zehr
Chief Executive Officer
October 3, 2012
6