8-K

                       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


                                 August 29, 2001
                                 ---------------
                                 Date of Report
                        (Date of earliest event reported)

                            Tidel Technologies, Inc.
                            ------------------------
               (Exact Name of Registrant as Specified in Charter)


Delaware                               0-17288            75-2193593
- --------------------------------------------------------------------------------
(State or Other Jurisdiction          (Commission         (IRS Employer
of Incorporation)                     File Number)        Identification No.)


           5847 San Felipe, Suite 900, Houston, TX             77057
           ---------------------------------------------------------------------
           (Address of Principal Executive Offices)          (Zip Code)


                                 (713) 783-8200
                                 --------------
                         (Registrant's telephone number,
                              including area code)


                          ----------------------------
         (Former Name or Former Address, if Changed Since Last Report.)







            Item 5.     Other Events.
                        ------------

            On August 28, 2001, Tidel Technologies, Inc. issued a press release,
set forth as Exhibit 99.1 to this Current  Report,  which  provides an update on
developments  relating to Tidel's $18 million  principal  amount 6%  Convertible
Debentures.

Item 7.     Financial Statements and Exhibits.
            ---------------------------------

        (c)     Exhibits
                --------

                Exhibit No.      Exhibits
                -----------      --------

                99.1             Press Release of Tidel Technologies, Inc. dated
                                 August 28, 2001.


                                    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.


                                       TIDEL TECHNOLOGIES, INC.


Dated: August 29, 2001                 By: /s/  Leonard  Carr
                                           --------------------------------
                                           Name: Leonard Carr
                                           Title: Senior Vice President

EX-99

                                  Exhibit 99.1
                                  ------------


CONTACT:    Leonard Carr
            Sr. Vice President
            713-783-8200
            lcarr@tidelmail.com

FOR IMMEDIATE RELEASE

               TIDEL CONTINUES NEGOTIATIONS WITH DEBENTURE HOLDERS


HOUSTON,  Texas -- August 28, 2001 -- Tidel  Technologies,  Inc. (Nasdaq:  ATMS)
announced  today that it did not make the  payment in the amount of $18  million
principal,  plus accrued  interest,  which was due yesterday  pursuant to its 6%
Subordinated Convertible Debentures.  The Company reported that negotiations are
continuing with the holders of the Debentures with respect to such payment.

Tidel  Technologies,  Inc.  is one  of the  nation's  leading  manufacturers  of
automated  teller  machines and cash security  equipment  designed for specialty
retail  marketers.  More  information  about the company and its products may be
found on the Internet at www.tidel.com.

"SAFE HARBOR" DISCLAIMER UNDER THE PRIVATE  SECURITIES  LITIGATION REFORM ACT OF
1995:  THIS PRESS  RELEASE MAY  CONTAIN  FORWARD-LOOKING  STATEMENTS,  INCLUDING
STATEMENTS AS TO ANTICIPATED OR EXPECTED RESULTS, BELIEFS,  OPINIONS, AND FUTURE
FINANCIAL  PERFORMANCE.  THE  FORWARD-LOOKING  STATEMENTS  ARE BASED ON  CURRENT
EXPECTATIONS AND ASSUMPTIONS AND INVOLVE RISKS AND UNCERTAINTIES  THAT MAY CAUSE
THE COMPANY'S  ACTUAL  EXPERIENCE TO DIFFER  MATERIALLY  FROM THAT  ANTICIPATED.
ESTIMATES  ARE  BASED ON  RELIABLE  INFORMATION  AND PAST  EXPERIENCE.  HOWEVER,
OPERATING  RESULTS ARE AFFECTED BY A WIDE VARIETY OF FACTORS,  MANY OF WHICH ARE
BEYOND THE CONTROL OF THE COMPANY.  FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THE
LEVELS OF ORDERS WHICH ARE  RECEIVED  AND CAN BE SHIPPED IN A QUARTER;  CUSTOMER
ORDER PATTERNS AND  SEASONALITY;  COSTS OF LABOR,  RAW  MATERIALS,  SUPPLIES AND
EQUIPMENT;  TECHNOLOGICAL  CHANGES;  COMPETITION  AND  COMPETITIVE  PRESSURES ON
PRICING;   AND  ECONOMIC   CONDITIONS  IN  THE  UNITED  STATES  AND   WORLDWIDE.
ADDITIONALLY,  FACTORS  AND RISKS  AFFECTING  OPERATING  RESULTS  INCLUDE  THOSE
DESCRIBED IN THE COMPANY'S  REGISTRATION  STATEMENTS AND PERIODIC  REPORTS FILED
WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION.


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