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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 8-K</B></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Date of Report (Date of earliest event reported):
<B>February 2, 2012</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&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="width: 32%; vertical-align: top; font-weight: bold; text-align: center">Delaware</TD>
    <TD STYLE="width: 2%; vertical-align: bottom; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 32%; vertical-align: top; font-weight: bold; text-align: center">0-31805</TD>
    <TD STYLE="width: 2%; vertical-align: bottom; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 32%; vertical-align: top; font-weight: bold; text-align: center">22-3337365</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center">(State or other jurisdiction of incorporation)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">Commission File Number</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">(IRS Employer Identification No.)</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>5744 Pacific Center Blvd., Suite 311</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>San Diego, California</B></P></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: center">92121</TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-align: center">(Address of principal executive offices)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">(Zip Code)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Registrant&rsquo;s telephone number, including
area code: <B>(858) 750-3875</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Former name or former address, if changed since
last report)</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR 240.13e-4(c))</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>INFORMATION TO BE INCLUDED IN THE REPORT</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in">On January 27, 2012 and January
30, 2012, Power Efficiency Corporation (the &ldquo;Company&rdquo;), pursuant to a Securities Purchase Agreement (the &ldquo;SPA&rdquo;),
consummated closings (the &quot;Closings&quot;) of a private placement offering (the &quot;Offering&quot;) for an aggregate of
305 shares of Series E Convertible Preferred Stock, par value $.001 per share (the &ldquo;Series E Preferred Stock&rdquo;) and
received consideration of $2,500,000 in cash, subject to certain restrictions indicated below, and $550,000 through the conversion
of previously outstanding convertible bridge notes of the Company (the &ldquo;Notes&rdquo;). Philip Meisel, the sole cash purchaser
of the Series E Preferred Stock, is an affiliate of the Company who owned approximately 28% of the Company&rsquo;s outstanding
common stock prior to the Closing. The Note holders that entered into the agreement were Sarkowsky Family LP, the Sidney Sik Yam
and Elaine Lan Hwa Chan Family Trust Dated October 26, 1993, Sher Capital Investments II, LLC, and Irwin Helford Family Trust.
Herman Sarkowsky, an affiliate of Sarkowsky Family LP, is also an affiliate of the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The SPA provides that the financing will be used for working capital,
sales and marketing, research and product development and general corporate purposes, and that Mr. Meisel will have sole authority
over the wiring or drawing of these funds. In addition, the SPA provides that Marc Lehmann must resign from the Board of Directors
(the &ldquo;Board&rdquo;) and that Mr. Meisel will have the right to fill the vacancy on the Board. The Company is also required
to obtain consent from Mr. Meisel before (i) hiring any employee who is to earn more than $75,000 annually and (ii) paying a Company
expenditure over $10,000 that does not arise in the ordinary course of business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Series E Preferred Stock issued in the Closings is convertible
into an aggregate of up to 305,000,000 shares of the Company&rsquo;s common stock, such that each one share of Series E Preferred
Stock is initially convertible into 1,000,000 shares of the Company&rsquo;s common stock. The Series E Preferred Stock is subject
to mandatory conversion at such time as the Company has a sufficient number of authorized shares of common stock to fully convert
all of the outstanding Series E Preferred Stock. The Series E Preferred Stock will be converted automatically, without further
action by the holders, at this time.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">This summary description is qualified in its entirety by reference
to the actual SPA, which is filed as Exhibit 10.1 to this Form&nbsp;8-K and is incorporated herein by reference.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">See Item 1.01 of this Current Report on Form 8-K, which Item is
incorporated herein by this reference, for a description of the terms of the Offering.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Offering was conducted pursuant to an exemption from the registration
requirements of the Securities Act of 1933, as amended, pursuant to Regulation D, Section 4(2) and Rule 506 thereunder. No placement
agent or underwriter was used in connection with the Offering and there is no commission, finder&rsquo;s fee or other compensation
due or owing to any party as a result of the transactions described herein.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On January 27, 2012, Marc Lehmann notified the Board that he is
resigning effective immediately.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On January 30, 2012, the Board voted to elect Mr. Meisel to fill
the vacancy on the Board created by Mr. Lehmann&rsquo;s resignation. Mr. Meisel has had financial transactions with the Company
in the past fiscal year. The details of such transactions are described herein at Item 1.01.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On January 30, 2012, the Board voted to elect Brian Chan to become
a director of the Board.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On January 30, 2012, Mr. Meisel was elected Chairman of the Board
and Steven Strasser was elected Vice-Chairman of the Board.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><U>Item 9.01. Exhibits</U></B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">10.1&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Securities Purchase Agreement Dated January 27, 2012&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.2&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Securities Purchase Agreement Dated January 30, 2012&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

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

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

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

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

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

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

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<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="font-weight: bold">POWER EFFICIENCY CORPORATION</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">By:</TD>
    <TD STYLE="width: 25%; border-bottom: windowtext 1pt solid">/s/&nbsp;Brian Chan</TD>
    <TD STYLE="width: 70%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Brian Chan, Secretary</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3">Date: February 2, 2012</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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

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{"company-data": {"conformed-name": "POWER EFFICIENCY CORP", "cik": "0001024075", "assigned-sic": "3620", "irs-number": "223337365", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-31805", "film-number": "12565723"}, "business-address": {"street1": "3960 HOWARD HUGHES PARKWAY", "street2": "SUITE 460", "city": "LAS VEGAS", "state": "NV", "zip": "89169", "phone": "7026970377"}, "mail-address": {"street1": "3960 HOWARD HUGHES PARKWAY", "street2": "SUITE 460", "city": "LAS VEGAS", "state": "NV", "zip": "89169"}}
UNITED STATES
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):
February 2, 2012
POWER EFFICIENCY CORPORATION
(Exact name of registrant as specified in its
charter)
Delaware
0-31805
22-3337365
(State or other jurisdiction of incorporation)
Commission File Number
(IRS Employer Identification No.)
5744 Pacific Center Blvd., Suite 311
San Diego, California
92121
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including
area code:
(858) 750-3875
N/A
(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 (17CFR 240.13e-4(c))
INFORMATION TO BE INCLUDED IN THE REPORT
Item 1.01 Entry into a Material Definitive Agreement.
On January 27, 2012 and January
30, 2012, Power Efficiency Corporation (the "Company"), pursuant to a Securities Purchase Agreement (the "SPA"),
consummated closings (the "Closings") of a private placement offering (the "Offering") for an aggregate of
305 shares of Series E Convertible Preferred Stock, par value $.001 per share (the "Series E Preferred Stock") and
received consideration of $2,500,000 in cash, subject to certain restrictions indicated below, and $550,000 through the conversion
of previously outstanding convertible bridge notes of the Company (the "Notes"). Philip Meisel, the sole cash purchaser
of the Series E Preferred Stock, is an affiliate of the Company who owned approximately 28% of the Company's outstanding
common stock prior to the Closing. The Note holders that entered into the agreement were Sarkowsky Family LP, the Sidney Sik Yam
and Elaine Lan Hwa Chan Family Trust Dated October 26, 1993, Sher Capital Investments II, LLC, and Irwin Helford Family Trust.
Herman Sarkowsky, an affiliate of Sarkowsky Family LP, is also an affiliate of the Company.
The SPA provides that the financing will be used for working capital,
sales and marketing, research and product development and general corporate purposes, and that Mr. Meisel will have sole authority
over the wiring or drawing of these funds. In addition, the SPA provides that Marc Lehmann must resign from the Board of Directors
(the "Board") and that Mr. Meisel will have the right to fill the vacancy on the Board. The Company is also required
to obtain consent from Mr. Meisel before (i) hiring any employee who is to earn more than $75,000 annually and (ii) paying a Company
expenditure over $10,000 that does not arise in the ordinary course of business.
The Series E Preferred Stock issued in the Closings is convertible
into an aggregate of up to 305,000,000 shares of the Company's common stock, such that each one share of Series E Preferred
Stock is initially convertible into 1,000,000 shares of the Company's common stock. The Series E Preferred Stock is subject
to mandatory conversion at such time as the Company has a sufficient number of authorized shares of common stock to fully convert
all of the outstanding Series E Preferred Stock. The Series E Preferred Stock will be converted automatically, without further
action by the holders, at this time.
This summary description is qualified in its entirety by reference
to the actual SPA, which is filed as Exhibit 10.1 to this Form 8-K and is incorporated herein by reference.
Item 3.02 Unregistered Sale of Securities.
See Item 1.01 of this Current Report on Form 8-K, which Item is
incorporated herein by this reference, for a description of the terms of the Offering.
The Offering was conducted pursuant to an exemption from the registration
requirements of the Securities Act of 1933, as amended, pursuant to Regulation D, Section 4(2) and Rule 506 thereunder. No placement
agent or underwriter was used in connection with the Offering and there is no commission, finder's fee or other compensation
due or owing to any party as a result of the transactions described herein.
Item 5.02 Departure of Directors; Election of Directors; Appointment
of Certain Officers; Compensatory Arrangements of Certain Officers.
On January 27, 2012, Marc Lehmann notified the Board that he is
resigning effective immediately.
On January 30, 2012, the Board voted to elect Mr. Meisel to fill
the vacancy on the Board created by Mr. Lehmann's resignation. Mr. Meisel has had financial transactions with the Company
in the past fiscal year. The details of such transactions are described herein at Item 1.01.
On January 30, 2012, the Board voted to elect Brian Chan to become
a director of the Board.
On January 30, 2012, Mr. Meisel was elected Chairman of the Board
and Steven Strasser was elected Vice-Chairman of the Board.
2
Item 9.01. Exhibits
10.1
Securities Purchase Agreement Dated January 27, 2012
10.2
Securities Purchase Agreement Dated January 30, 2012
3
SIGNATURE
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.
POWER EFFICIENCY CORPORATION
By:
/s/ Brian Chan
Brian Chan, Secretary
Date: February 2, 2012
4