Xenonics Holdings, Inc. (OTCPK:XNNH) announced that it will receive $1,000,000 in a round of funding on May 12, 2014. The company will issue secured convertible notes at $25,000 in the transaction. The notes are convertible into common stock of the company. The company will issue securities pursuant to exemption provided under Regulation D. Each outside investor will invest minimum of $10,000 in the transaction. Scott Ozer of Sandlapper Securities LLC will act as placement agent to the company and will receive a sales commission of $12,150.

On the same date, the company announced that it has received in its first tranche.

On May 22, 2014, the company has received $100,000 in its second tranche.

On July 10, 2014, the company has received $90,000 in its third tranche from 39 investors.

As of July 25, 2014, the company has received $135,000 in funding from seven investors in its fourth tranche.

On September 10, 2014, Xenonics Holdings, Inc. closed the transaction. The company has received total funding of $981,000 in the transaction. The notes bear simple interest at the rate of 13% per annum and mature three years following the date of issuance. The notes are convertible into shares of the company's common stock at a conversion rate of $0.07 per share. The company paid agent fees of $343,000. Additionally, the company issued warrants to agent to purchase up to 1,582,143 shares of common stock of the company. Alan Magerman, the Chairman of the board of directors and Chief Executive Officer of the company and Jeffrey Kennedy, the president and Chief Operating Officer of the company, each purchased a company note in the principal amount of $50,000. Interest will be payable on September 30 and March 30 of each year. The convertible notes will have a maturity date of three years from the date of issuance. The company paid $39,870 as sales commission and also issued 5-year warrants to purchase 2.0833 shares of common stock at an exercise price of $0.12 per share to Sandlapper Securities LLC.