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)      January 13, 2003


                        Integrated Security Systems, Inc.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


        Delaware                  1-11900                    75-2422983
    -----------------      ------------------------      -------------------
    (State or other        (Commission File Number)      (I.R.S. Employer
    jurisdiction                                         Identification No.)
    of incorporation)


    8200 Springwood Drive, Suite 230, Irving, TX              75063
    --------------------------------------------            ----------
      (Address of principal executive offices)              (Zip Code)


    Registrant's telephone number, including area code    (972) 444-8280


         (Former name or former address, if changed since last report.)






Item 5.  Other Events.

In exchange for an aggregate of $100,000 cash  investment,  on January 13, 2003,
Integrated  Security  Systems,  Inc.  issued a  promissory  note to The  Rundell
Foundation.  C. A. Rundell,  Jr., who is Chairman and Chief Executive Officer of
the Company, is also a Trustee of the Rundell Foundation. The promissory note is
in the original  principal amount of $100,000 and has an annual interest rate of
9%. The promissory note, plus interest,  is due on January 13, 2004. Interest is
payable in monthly  installments on the first day of each month.  The promissory
note is attached as an exhibit to this Current Report on Form 8-K.

As a part of this transaction, on January 13, 2003, Integrated Security Systems,
Inc.  issued a stock  purchase  warrant  to The  Rundell  Foundation.  The stock
purchase  warrants  entitles the foundation to purchase from the Company 500,000
fully paid and  non-assessable  shares of Common Stock,  $0.01 par value, of the
Company  for $0.20 per  share.  The stock  purchase  warrant is  attached  as an
exhibit to this Current Report on Form 8-K.


Item 7.  Financial Statements and Exhibits.

(c) Exhibits.

    4.1   Promissory  Note,  dated  January  13,  2003,  payable to The  Rundell
          Foundation in the amount of $100,000.

    4.2   Stock Purchase Warrant,  dated January 13, 2003, issued to The Rundell
          Foundation.




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                                    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.

                                      Integrated Security Systems, Inc.
                                      ---------------------------------
                                      (Registrant)


 January 17, 2003                     /S/ C. A. Rundell, Jr.
 ----------------                     ---------------------------------
 (Date)                               C. A. Rundell, Jr.
                                      Director, Chairman of the Board and Chief
                                      Executive Officer (Principal Executive and
                                      Financial Officer)




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                                  Exhibit Index

 Exhibit
 Number       Description
 --------     ------------------------------------------------------------------

 4.1          Promissory  Note,  dated January 13, 2003,  payable to The Rundell
              Foundation in the amount of $100,000.

 4.2          Stock  Purchase  Warrant,  dated  January 13, 2003,  issued to The
              Rundell Foundation.








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