8-K

                       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



                                  JULY 5, 2005
                                  ------------
                                (Date of Report)

                           ALANCO TECHNOLOGIES, INC.
                           -------------------------
             (Exact name of Registrant as specified in its charter)


                                    0-9437
                                   ---------
                             (Commission File No.)

                    ARIZONA                        86-0220694
         ---------------------------     ---------------------------------
        (State of other jurisdiction(    (IRS Employer Identification No.)



             15575 N 83RD WAY, SUITE 3, SCOTTSDALE, ARIZONA  85260
             -------------------------------------------------------
            (Address of Principal Executive Office)       (Zip Code)


                                 (480) 607-1010
              ----------------------------------------------------
              (Registrant's telephone number, including area code)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously safisfy the filing obligation of the registrant under any of
the following provisions (see General Instruction A.2. below):

(  ) Written communication 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 (17 CFR 240.13e-4(c))

Item 1.01  Entry into a Material Definitive Agreement

In an amendment dated June 29, 2005 to the the Company's Line of Credit with a
trust, the maximum under the line was increased to $1.5 million from $1.3
million. The interest rate was decreased from prime rate plus 4% to prime rate
plus 2%, and the required minimum amount outstanding under the agreement was
increased to $1,000,000.

Donald Anderson, a Trustee of the family trust, is on the Company's Board of
Directors, and is defined as a beneficial owner of the Company.

Item 9.01  Financial Statements and Exhibits

     Exhibits 99.1 Fourth Amendment to Loan and Security Agreement.

                                   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.

Date: July 5, 2005                      ALANCO TECHNOLOGIES, INC.

                                        By: /s/John A Carlson
                                            -----------------------
                                            Chief Financial Officer

EX-99

Exhibit 99.1

                               FOURTH AMENDMENT TO

                           LOAN AND SECURITY AGREEMENT


     THIS FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT ("Fourth Amendment")
is entered into this 29th day of June, 2005, between Donald E. Anderson and
Rebecca E. Anderson, Trustees of the Anderson Family Trust, UTA dated December
20, 1993 ("Lender") as secured party, and Alanco Technologies, Inc. ("ATI"), an
Arizona corporation ("Borrower 1"); Arraid, Inc. ("Al"), an Arizona corporation
("Borrower 2"); Excel/Meridian Data, Inc. ("EMD"), an Arizona corporation
("Borrower 3"); Alanco/TSI PRISM, Inc. ("TSI"), an Arizona corporation
(formerly, Technology System International, Inc. and TSI Acquisition
Corporation, ("Borrower 6"); and Fry Guy, Inc., a Nevada corporation ("Borrower
7"). Borrower 1, Borrower 2, Borrower 3, Borrower 6, and Borrower 7, jointly and
severally, individually and collectively, the "Borrower". (Borrowers 5 and 6
were corporate subsidiaries of ATI that are no longer in operation.)

RECITALS:

     The parties entered into that Loan and Security Agreement, dated June 19,
2002, pursuant to which Lender agreed to provide certain funds to Borrower upon
the terms and conditions set forth therein (the "Agreement"). The parties
amended the Agreement pursuant to the Amendment to Loan and Security Agreement,
dated April 15, 2003 (the "First Amendment"), the Second Amendment to Loan and
Security Agreement, dated November 1, 2003 (the "Second Amendment"), and the
Third Amendment to Loan and Security Agreement, dated March 22, 2005 (the "Third
Amendment") and now wish to modify the Agreement, as previously amended in
certain respects as set forth herein.


     NOW, THEREFORE, in consideration of the mutual covenants contained herein,
the parties agree as follows:

1.   Definitions. The subparagraphs of Section 1 of the Agreement corresponding
to the subparagraph numbers set forth below shall be amended by substituting the
definitions set forth below for the corresponding terms identified:

     1.9      "Credit Limit" shall mean One Million Five Hundred Thousand
              Dollars ($1,500,000.00).

2.   The last sentence of Section 2.1 of the Agreement shall be amended to read
     as follows:

     Notwithstanding anything to the contrary herein, the amount drawn under
     this Agreement by Borrower shall not be less than the sum of $1,000,000
     at any time during the term of this Agreement without Lender's written
     consent.

3.   The first paragraph of Section 2.2 of the Agreement shall be amended to
     read as follows:

     Except as provided below, the Credits shall bear interest, on the Daily
     Balance owing, at a fluctuating rate of interest equal to the Base Rate
     plus two (2%) percentage points per annum.

4. Borrower agrees that (a) except as expressly provided herein to the contrary,
this Fourth Amendment shall not modify the Agreement as previously amended, (b)
all of the collateral described in the Agreement shall remain in all respects
subject to the lien or charge of the security interest set forth in the
Agreement, and (c) nothing contained herein and nothing done pursuant hereto,
shall effect or be construed as affecting the lien or charge of said security
interest, or the priority thereof over other liens or charges, or as releasing
or affecting the liability of any party or parties who may now or hereafter be
liable under or on account of the Agreement. The provisions of this Fourth
Amendment are modifications only and except as provided herein all of the terms
and conditions of the Agreement as previously amended remain in full force and
effect and the parties hereto ratify and confirm the security, priority and
enforceability of the Agreement, as expressly modified by this Fourth Amendment.

5. This Fourth Amendment shall bind and inure to the benefit of the respective
successors and assigns of each of the parties. This Fourth Amendment may be
executed by the parties hereto in several counterparts, each of which shall be
deemed to be an original and all of which shall constitute together but one and
the same agreement.


IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be
executed as of the date first above written.

BORROWERS:

"Borrower l":
Alanco Technologies, Inc., an Arizona Corporation

By:/s/ John A. Carlson
    -----------------------------------------
    John A. Carlson, Chief Financial Officer


"Borrower 2":
Arraid, Inc., an Arizona corporation

By: /s/ John A. Carlson
    -----------------------------------------
    John A. Carlson, Chief Financial Officer


"Borrower 3":
Excel/Meridian Data, an Arizona corporation

By: /s/ John A. Carlson
    -----------------------------------------
    John A. Carlson, Chief Financial Officer

"Borrower 6":
Alanco/TSI PRISM, Inc., an Arizona corporation (formerly, Technology System
International, Inc. and TSI Acquisition Corporation)

By: /s/ John A. Carlson
    -----------------------------------------
         John A. Carlson, Chief Financial Officer

"Borrower 7":
Fry Guy, Inc., a Nevada corporation

By: /s/ John A Carlson
    -----------------------------------------
    John A. Carlson, Chief Financial Officer

Borrower Address for Notices:

    15575 North 83rd Way, Suite 3,  Scottsdale, Arizona. 85260

LENDER:

/s/ Donald E. Anderson
- ---------------------------------------
DONALD E. ANDERSON

/s/ Rebecca E. Anderson
- ---------------------------------------
REBECCA E. ANDERSON

Trustees of the Anderson Family Trust, UTA
    dated December 20, 1993

Lender Address for Notices:
    11804 N. Sundown Drive, Scottsdale, Arizona 85260