8-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

(Amendment No. 1)

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

February 23, 2011

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Date of Report

(Date of Earliest Event Reported)

IMAGING DIAGNOSTIC SYSTEMS, INC.

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(Exact name of registrant as specified in its charter)

Florida	0-26028	22-2671269
(State or Other Jurisdiction of	(Commission File Number)	(I.R.S. Employer
Incorporation or Organization)		Identification Number)

5307 NW 35TH TERRACE

FORT LAUDERDALE, FL 33309

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(Address of principal executive offices)

(954) 581-9800

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(Registrant’s telephone number)

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.  (17 240.14d-2(b))
[ ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.  (17 240.13e-4(c))

EXPLANATORY NOTE

This Current Report on Form 8-K/A amends the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 1, 2011 to replace a typographical error in the second paragraph of Item 1.01 regarding the Origination Fee.  In the initial filing, it was reported as $18,000 and has been corrected to $12,000 in this amendment.  All other information in the initial filing remains unchanged.

Item 1.01  Entry into a Material Definitive Agreement

On February 23, 2011, Imaging Diagnostic Systems, Inc. (the “Company” or “Borrower”) entered into a Convertible Promissory Note Agreement  (the “Agreement”) with an unaffiliated third party, JMJ Financial (the “Lender” or “JMJ”), relating to a private placement of a total of up to $1,800,000 in principal amount of a Convertible Promissory Note (the “Note”) providing for advances of a gross amount of $1,600,000 in seven tranches.  The Company is required to file within 10 days from the effective date of an increase of authorized shares to be voted on by shareholders at the next annual meeting, an S-1 Registration Statement (the “Registration Statement”) covering 130,000,000 shares of Company common stock to be reserved for conversion of the Note pursuant to the terms of a Registration Rights Agreement (the “Rights Agreement”) dated February 23, 2011, between the Company and JMJ.  In a letter addendum to the Note dated February 22, 2011, JMJ acknowledged that the Company does not have sufficient authorized shares available to reserve and register pursuant to the terms of the Rights Agreement and agreed not to enforce the required registration of shares until such time as the increase in authorized shares has been approved by the Company’s shareholders.

The Note provides for funding in seven tranches as stipulated in the Funding Schedule attached.  The first tranche of $300,000 was closed on February 24, 2011, and the Company received $258,000 after deductions of $30,000 for a 10% Finder’s Fee and $12,000 for an Origination Fee.  The remaining six tranches are to be funded based on achievement of milestones relating to the Registration Statement, with the final tranche of $300,000 being available 150 days after effectiveness of the Registration Statement, which must be effective 120 days after the date of the Agreement.  For the remaining six tranches, the Company is obligated to pay a Finder’s Fee equal to 7% in cash at each closing date.  The Company may cancel the unfunded portion of the Agreement at a fee of 20% of the unfunded a mount.

The Note, after the seven tranches are drawn, would generate net proceeds of $1,467,000 after payment of the Origination Fee and a 7% Finder’s Fee.  JMJ has the option to provide an additional $1,600,000 of funding on substantially the same terms as the first Agreement; however, the Company has the right to cancel, without penalty, the Note Agreement within five days of JMJ’s execution. Once executed and accepted by both parties and five days has passed, cancellation of unfunded payments is permitted at a fee of 20% of the unfunded amount.  Cancellation of funded portions is not permitted.

Prior to the maturity date of February 2, 2014, JMJ may convert both principal and interest into the Company’s common stock at 75% of the average of the three lowest closing prices in the 20 days previous to the conversion.  The Company has the right to enforce a conversion floor of $0.015 per share; however, if the Company receives a conversion notice in which the Conversion Price is less than $0.015 per share, JMJ will

incur a conversion loss [(Conversion Loss = $0.015 – Conversion Price) x number of shares being converted] which the Company must make whole by either of the following options: pay the conversion loss in cash or add the conversion loss to the balance of principal due.  Prepayment of the Note is not permitted.

Copies of the Agreement and related documents are attached as exhibits to this Report, and the foregoing summary is qualified by reference to the exhibits.

The Note has a 9% one-time interest charge on the principal sum.  No interest or principal payments are required until the Maturity Date, but both principal and interest may be included in conversions prior to the maturity date.

Item 2.03  Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information provided in Item 1.01 is incorporated by reference into this Item 2.03.

Item 3.02  Unregistered Sales of Equity Securities.

The information provided in Item 1.01 is incorporated by reference into this Item 3.02.

Item 9.01   Financial Statements and Exhibits

(c) Exhibits

10.112	Convertible Promissory Note by and between Imaging Diagnostic Systems, Inc. (the “Company” or “Borrower”) and JMJ Financial (the “Lender or “JMJ’’) dated February 23, 2011, Exhibit A
10.113	Letter Addendum to Promissory Note dated February 23, 2011, Exhibit B
10.114	Registration Rights Agreement dated February 23, 2011, Exhibit C

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

IMAGING DIAGNOSTIC SYSTEMS, INC.

Dated:  March 2, 2011

/s/ Allan L. Schwartz

By: Allan L. Schwartz

Executive Vice President and

Chief Financial Officer

EX-10.112

EXHIBIT 10-112

EXHIBIT A

CONVERTIBLE PROMISSORY NOTE

$1,800,000 PLUS INTEREST DUE & PAYABLE

DOCUMENT A-02222011a

THIS NOTE AND THE SHARES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS NOTE AND THE SHARES ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT OR APPLICABLE EXEMPTION OR SAFE HARBOR PROVISION.

FOR VALUE RECEIVED, on the Effective Date, as defined below on the signature page, Imaging Diagnostic Systems, Inc. as Obligor ("Borrower,” or “Obligor”), hereby promises to pay to the Lender (“Lender” or “ Holder”), as defined below on the signature page, the Principal Sum, as defined below, along with the Interest Rate, as defined below, according to the terms herein.

The "Lender" shall be:	JMJ Financial / Its Principal, or Its Assignees
The "Principal Sum" shall be:	$1,800,000 (one million eight hundred thousand US Dollars) Subject to the following: accrued, unpaid interest shall be added to the Principal Sum.
The “Consideration” shall be:	$1,600,000 (one million six hundred thousand US dollars) in the form of cash payment by wire or check as set forth in the attached funding schedule.
The "Interest Rate" shall be:	9% one-time interest charge on the Principal Sum.   No interest or principal payments are required until the Maturity Date, but both principal and interest may be included in conversion prior to maturity date.
The "Conversion Price" shall be the following price:	As applied to the Conversion Formula set forth in 2.2, 75% (seventy-five) of the average of the three lowest closing prices in the 20 days previous to the conversion; as applies to Imaging Diagnostic Systems, Inc. voting common stock.
The "Maturity Date" is the date upon which the Principal Sum of this Note, as well as any unpaid interest shall be due and payable, and that date shall be:	February 2, 2014
Registration Rights shall be:	Registration of the common shares underlying this note which this note is convertible into is mandatory, as set forth in the corresponding Registration Rights Agreement.
The “Prepayment Terms” shall be:	Prepayment is not permitted.
The “Cancellation Terms” shall be:	Cancellation of funded portions is not permitted.  Cancellation of unfunded payments is permitted at a fee of 20% of the unfunded amount.

ARTICLE 1 PAYMENT-RELATED PROVISIONS

1.1 Interest Rate. Subject to the Holder's right to convert, interest payable on this Note will accrue interest at the Interest Rate and shall be applied to the Principal Sum.

ARTICLE 2 CONVERSION RIGHTS

The Holder will have the right to convert the Principal Sum and accrued interest under this Note into Shares of the Borrower's Common Stock as set forth below.

2.1 Conversion Rights and Cashless Exercise. Subject to the terms set forth in Section 2.7, the Holder will have the right at its election from and after the Effective Date, and then at any time, to convert all or part of the outstanding and unpaid Principal Sum and accrued interest into shares of fully paid and nonassessable shares of common stock of Imaging Diagnostic Systems, Inc. (as such stock exists on the date of issuance of this Note, or any shares of capital stock of Imaging Diagnostic Systems, Inc. into which such stock is hereafter changed or reclassified, the "Common Stock") as per the Conversion Formula set forth in Section 2.2. Any such conversion shall be cashless, and shall not require further payment from Holder .  Unless otherwise agreed in writing by both the Borrower and the Holder, at no time will the Holder convert any amount of the Note into common stock that would result in the Holder owning more than 4.99% of the common stock outstanding of Imaging Diagnostic Systems, Inc.   Shares from any such conversion will be delivered to Holder by 2:30pm EST within 2 (two) business days of conversion notice delivery (see 3.1) by “DWAC/FAST” electronic transfer (see “Share Delivery” attachment).

2.2. Conversion Formula. The number of shares issued through conversion is the conversion amount divided by the conversion price.

# Shares = Conversion Amount

Conversion Price

2.3. This section 2.3 intentionally left blank.

2.4. This section 2.4 intentionally left blank.

2.5 Reservation of Shares. As of the issuance date of this Note and for the remaining period during which the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of Common Stock upon the full conversion of this Note. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. The Borrower agrees that its issuance of this Note constitutes full authority to its officers, agents and transfer agents who are charged with the duty of executing and issuing stock certificates to execute and issue the necessary certificates for shares of Common Stock upon the conversion of this Note.

2.6. Delivery of Conversion Shares.  Shares from any such conversion will be delivered to Holder by 2:30pm EST within 2 (two) business days of conversion notice

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delivery (see 3.1) by “DWAC/FAST” electronic transfer (see “Share Delivery” attachment).  If those shares are not delivered in accordance with this timeframe stated in this Section 2.6, at any time for any reason prior to offering those shares for sale in a private transaction or in the public market through its broker, Holder may rescind that particular conversion to have the conversion amount returned to the note balance with the conversion shares returned to the Borrower. The Company will make its best efforts to deliver shares to Holder same day / next day.

2.7. This section 2.7 intentionally left blank.

ARTICLE 3 MISCELLANEOUS

3.1. Notices. Any notice required or permitted hereunder must be in writing and either personally served, sent by facsimile or email transmission, or sent by overnight courier.  Notices will be deemed effectively delivered at the time of transmission if by facsimile or email, and if by overnight courier the business day after such notice is deposited with the courier service for delivery.

3.2. Amendment Provision. The term "Note" and all reference thereto, as used throughout this instrument, means this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented.

3.3. Assignability. This Note will be binding upon the Borrower and its successors and permitted assigns, and will inure to the benefit of the Holder and its successors and permitted assigns, and may be assigned by the Holder.

3.4. Governing Law. This Note will be governed by, and construed and enforced in accordance, with the laws of the State of Florida, without regard to the conflict of laws principles thereof.  Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of Florida or in the federal courts located in Miami-Dade County, in the State of Florida.  Both parties and the individuals signing this Agreement agree to submit to the jurisdiction of such courts.

3.5. Maximum Payments. Nothing contained herein may be deemed to establish or require the payment of a rate of interest or other charges in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges hereunder exceed the maximum permitted by such law, any payments in excess of such maximum will be credited against amounts owed by the Borrower to the Holder and thus refunded to the Borrower.

3.6. Attorney Fees. In the event any attorney is employed by either party to this Note with regard to any legal or equitable action, arbitration or other proceeding brought by such party for the enforcement of this Note or because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Note, the prevailing party in such proceeding will be entitled to recover from the other party reasonable attorneys' fees and other costs and expenses incurred, in addition to any other relief to which the prevailing party may be entitled.

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3.7. No Public Announcement. Except as required by securities law, no public announcement may be made regarding this Note, payments, or conversions without written permission by both Borrower and Holder.

3.8. Opinion of Counsel. In the event that an opinion of counsel is needed for any matter related to this Note, Holder has the right to have any such opinion provided by its counsel.  Holder also has the right to have any such opinion provided by Borrower’s counsel.

3.9. Director’s Resolution.  Once effective, Borrower will execute and deliver to Holder a copy of a Board of Director’s resolution resolving that this note is validly issued, paid, and effective.

3.10. No Shorting. Holder agrees that so long as any Notes from Borrower to Holder remain outstanding, Holder will not enter into or effect any “short sales” of the common stock or hedging transaction which establishes a net short position with respect to the common stock of Imaging Diagnostic Systems, Inc. Borrower acknowledges and agrees that upon submission of conversion notice as set forth in Section 3.1 (up to the amount of cash paid in under the Notes), Holder immediately owns the common shares described in the conversion notice and any sale of those shares issuable under such conversion notice would not be considered short sales.

3.11.  Conversion Floor.  The Borrower has the right to enforce a conversion floor of $0.015 per share as follows. If Borrower receives a conversion notice in which the Conversion Price is less than $0.015 per share, the Holder will incur a conversion loss [(Conversion Loss = $0.015 – Conversion Price) x number of shares being converted] which the Borrower must make whole by either of the following options: 

Option A – Pay Conversion Loss in Cash.  The Borrower may pay the conversion loss by cash payment in the amount as follows:  make whole amount on the conversion loss = ($0.015 – Conversion Price) x number of shares being converted.  Any such cash payment must be made by the third day from the time of the conversion notice.

Option B – Add Conversion Loss to Balance.  The Borrower may convert the Conversion Amount into shares at $0.015 per share, and pay the conversion loss by adding the conversion loss to the balance of the note as follows:  make whole amount on the conversion loss = ($0.015 – Conversion Price) x number of shares being converted.  Any such make whole amount will automatically be added to the balance of the Note (under Borrower’s and JMJ Financial’s expectation that any make whole amounts will tack back to the original date of the note).

Signature page to follow…

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BORROWER[S]:                                                                           

/s/ Linda B. Grable                                               2-23-2011

Linda Grable

Chairwoman & CEO

Imaging Diagnostic Systems, Inc.

/s/ Allan L. Schwartz                                            2-23-2011

Allan Schwartz

CFO

Imaging Diagnostic Systems, Inc.

LENDER/HOLDER:

/s/ Justin Keener                                                  2-23-2011

JMJ Financial / Its Principal

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FUNDING SCHEDULE

§   $300,000 paid to Borrower within 2 business days of execution and closing of this agreement.

§   $100,000 paid to Borrower within 5 business days of filing of Definitive Proxy to increase authorized shares to 2,000,000,000 or more.

§   $100,000 paid to Borrower within 5 business days of effective increase in authorized shares to 2,000,000,000 or more.

§   $100,000 paid to Borrower within 5 business days of filing of registration statement, and that registration statement must be filed no later than 10 days from the effective increase of authorized shares.

§   $400,000 paid to Borrower within 5 business days of notice of effective registration statement, and that registration statement must be effective no later than 120 days from the execution of this agreement.

§   $300,000 paid to Borrower within 90 business days of notice of effective registration statement, and that registration statement must be effective no later than 120 days from the execution of this agreement.

§   $300,000 paid to Borrower within 150 business days of notice of effective registration statement, and that registration statement must be effective no later than 120 days from the execution of this agreement.

Conditions to Funding Each Payment:

§   At the time of each payment interval, the Conversion Price calculation on Borrower’s common stock must yield a Conversion Price equal to or greater than $0.015 per share (based on the Conversion Price calculation, regardless of whether a conversion is actually completed or not).

§   At the time of each payment interval, the total dollar trading volume of Borrower’s common stock for the previous 23 trading days must be equal to or greater than $1,000,000 (one million).  The total dollar volume will be calculated by removing the three highest dollar volume days and summing the dollar volume for the remaining 20 trading days.

§   At the time of each payment interval, there shall not exist an event of default as described within any of the agreements between Borrower and Holder.

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Additional Default Provisions

Default.  In the event that (i) the Borrower shall fail to pay any principal under this Note when due and payable (or payable by conversion) hereunder; or (ii) the Borrower shall fail to pay any interest or any other amount under this Note when due and payable (or payable by conversion) hereunder; or  (iii) a receiver, trustee or other similar official shall be appointed over the Borrower or a material part of its assets and such appointment shall remain uncontested for twenty (20) days or shall not be dismissed or discharged within sixty (60) days; or (iv) the Borrower shall become insolvent or generally fails to pay, or admits in writing its inability to pay, its debts as they become due, subject to applicable grace periods, if any; or (v) the Borrower shall make a general assignment for the benefit of creditors; or (v i) the Borrower shall file a petition for relief under any bankruptcy, insolvency or similar law (domestic or foreign); or (vii) an involuntary proceeding shall be commenced or filed against the Borrower; or (viii) the Borrower shall lose its ability to electronically transfer shares by “DWAC/FAST” transfer;  or (ix) the Borrower shall lose its status as “DTC Eligible”; or the borrower’s shareholders shall lose the ability to deposit (either electronically or by physical certificates, or otherwise) shares into the DTC System; or (x) the Borrower shall become late or delinquent in its filing requirements as a fully-reporting issuer registered with the Securities & Exchange Commission;   (each event specified in clauses (i) through (x) above, an “Event of Default”); then, in the case of any of the events specified in clauses (i) through (x) above, the outstanding principal amount under this Note, together with accrued and unpaid interest th ereon, and all other amounts payable by Borrower under this Note, shall become immediately due and payable without any action on the part of the Lender. Borrower waives demand, presentment, protest, notice of protest, dishonor, notice of dishonor or any other notice of any kind. 

BORROWER[S]:                                                                           

/s/ Linda B. Grable                                                  2-23-2011

Linda Grable

Chairwoman & CEO

Imaging Diagnostic Systems, Inc.

/s/ Allan L. Schwartz                                               2-23-2011

Allan Schwartz

CFO

Imaging Diagnostic Systems, Inc.

LENDER/HOLDER:

/s/ Justin Keener                                                     2-23-2011

JMJ Financial / Its Principal

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EX-10.113

EXHIBIT 10-113

EXHIBIT B

   JMJ Financial

San Diego, CA

Miami, FL

February 22, 2011

Imaging Diagnostic Systems, Inc.

Boca Raton, FL

This letter is to confirm the following regarding A-02222011a:

Authorized Shares.  I am aware that the company is out of authorized shares, and that Section 2.5 of our agreement, Reservation of Shares, will be enforced only after an increase in shares authorized is completed.  By way of the third bullet point on the Funding Schedule, you agree that authorized shares will be increased to 2,000,000,000 in order to allow for shares to be issued for conversion of A-02222011a.

DWAC Electronic Transfer.  The fact that the Company is not currently able to electronically transfer shares via DWAC makes this transaction exceptionally difficult, cumbersome, and risky.  Therefore, you agree that:

§   You agree to apply for DWAC electronic transfer within 3 business days of execution of this agreement (at your own expense).

§   You agree that as long as the Company is not able to electronically DWAC shares, that JMJ Financial may, at its election, indefinitely stall or cancel (without penalty or liability) any payments described in the Funding Schedule.  Even in the event that JMJ elects to stall any payments, the Company must progress with the registration statement for all payments as set forth in the Funding Schedule (past payments and potential future payments).

/s/ Justin Keener                                                      2-23-2011

JMJ Financial / Its Principal

BORROWER[S]:                                                                           

/s/ Linda B. Grable                                                  2-23-2011

Linda Grable

Chairwoman & CEO

Imaging Diagnostic Systems, Inc.

/s/ Allan L. Schwartz                                               2-23-2011

Allan Schwartz

CFO

Imaging Diagnostic Systems, Inc.

EX-10.114

EXHIBIT 10-114

EXHIBIT C

REGISTRATION RIGHTS AGREEMENT

Imaging Diagnostic Systems, Inc. (the “Company” or “Borrower”), agrees to provide JMJ Financial (the “Holder” or “Investor”) the following registration rights with respect to Convertible Promissory Note Document A-02222011a (the “Note”).

1. Inducement to Enter Into Transactions.  To induce JMJ Financial to enter into and fund the Note, the Borrower has agreed to provide registration rights for common shares underlying that note.  The Borrower agrees and acknowledges that registration rights are a material inducement for the Holder to enter into this transaction, and that the Holder would not have entered into the transaction if registration of the underlying shares was not provided.

2. Mandatory Registration.  No later than 75 days from the date of execution of this agreement (the “Registration Date”), the Borrower agrees to file an S-1 Registration Statement with the SEC at its own expenses to register 130,000,000 (one hundred thirty million) shares of common stock underlying the note, as follows.  The Borrower will thereafter use its best efforts to cause such Registration  Statement to become  effective as soon as possible after such filing but in no event later than one  hundred  and twenty (120) days from the Registration Date.

Convertible Promissory Note A-02222011a – 130,000,000 shares

Total Note – $1,800,000,000 plus interest

Total Shares to Be Registered – 130,000,000

3. Correspondence and Information.  Within two days of distribution or receipt of any information or correspondence between the Borrower and the SEC, the Borrower shall furnish to Holder copies of all correspondence as related to the registration statement.

4. Assignment of Registration Rights.  The rights under this Agreement  shall be  automatically  assignable by the Holder to any transferee of all or any portion of the note or underlying registered shares.

5. No Filing of Other Registration Statements and No Piggy-back Registrations.  Unless otherwise approved by Holder in Writing, the Borrower shall not file any other registration statements (except for S-8 registration) until the registration statement described herein is declared effective by the SEC;  and the Borrower will not include in this registration statement any securities other than those described herein.

7. Governing Law. This Note will be governed by, and construed and enforced in accordance, with the laws of the State of Florida, without regard to the conflict of laws principles thereof.  Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of Florida or in the federal courts located in Miami-Dade County, in the State of Florida.  Both parties and the individuals signing this Agreement agree to submit to the jurisdiction of such courts.

Agreed, this 23rd day of February, 2011.

BORROWER[S]:                                                                           

/s/ Linda B. Grable                                                             2-23-2011

Linda Grable

Chairwoman & CEO

Imaging Diagnostic Systems, Inc.

/s/ Allan L. Schwartz                                                          2-23-2011

Allan Schwartz

CFO

Imaging Diagnostic Systems, Inc.

LENDER/HOLDER:

/s/ Justin Keener                                                                2-23-2011

JMJ Financial / Its Principal