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<SEC-DOCUMENT>0001019687-05-003457.txt : 20051220
<SEC-HEADER>0001019687-05-003457.hdr.sgml : 20051220
<ACCEPTANCE-DATETIME>20051220172134
ACCESSION NUMBER:		0001019687-05-003457
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20051213
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Termination of a Material Definitive Agreement
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20051220
DATE AS OF CHANGE:		20051220

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN TECHNOLOGY CORP /DE/
		CENTRAL INDEX KEY:			0000924383
		STANDARD INDUSTRIAL CLASSIFICATION:	HOUSEHOLD AUDIO & VIDEO EQUIPMENT [3651]
		IRS NUMBER:				870361799
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24248
		FILM NUMBER:		051276313

	BUSINESS ADDRESS:	
		STREET 1:		13114 EVENING CREEK DRIVE SOUTH
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92128
		BUSINESS PHONE:		6196792114

	MAIL ADDRESS:	
		STREET 1:		13114 EVENING CREEK DRIVE SOUTH
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92128
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>atco_8k-122005.htm
<DESCRIPTION>AMERICAN TECHNOLOGY CORPORATION
<TEXT>
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      American Technology Corporation
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      STATES</strong></font></div>
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      AND EXCHANGE COMMISSION</strong></font></div>
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      8-K</strong></font></div>
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      REPORT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
      to Section 13 or 15(d) of</strong></font></div>
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      Securities Exchange Act of 1934</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
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      20, 2005 (December 13, 2005)</strong></font></div>
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      TECHNOLOGY CORPORATION</strong></font></div>
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      Name of Registrant as Specified in Charter)</font></div>
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                or Other Jurisdiction</font></div>
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                File Number)</font></div>
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                Employer</font></div>
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                Evening Creek Drive South, San Diego, California</strong></font></div>
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                Code)</font></div>
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      Telephone Number, Including Area Code: </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(858)
      679-2114</strong></font></div>
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      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 (see General Instruction A.2. below):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
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      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
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      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Amendment
        to Attornment Agreement</em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        December 13, 2005, we entered into an amendment to the attornment agreement
        dated as of August 1, 2005 between LBA Realty Fund-Holding Co. I, LLC and
        us,
        which attornment agreement governs the terms of the current sublease of our
        executive offices and research and development facilities in San Diego,
        California. The amendment is effective as of November 15, 2005. In August
        2005,
        we were notified that our sublease was being terminated, and that we had
        the
        option to continue our occupancy as a direct tenant of LBA Realty Fund-Holding
        Co. through November 30, 2005, and continuing after such date on a
        month-to-month basis. Pursuant to an attornment agreement dated as of August
        1,
        2005, we elected to continue our occupancy pursuant to the sublease, as amended
        by the attornment agreement. The attornment agreement recognized the increase
        in
        the square footage to approximately 23,548 and corresponding cost under our
        sublease to approximately $28,257 and provided that the term of the sublease
        would expire on December 31, 2005, after which time it would convert to a
        month-to-month tenancy. The amendment to the attornment agreement extends
        the
        term of our sublease to January 31, 2006, at which time the sublease will
        terminate without provision for conversion to month-to-month tenancy. If
        we are
        not able to vacate our current space by January 31, 2006, the attornment
        agreement provides that rent payments will increase to $56,515, and we will
        also
        be liable for other costs of the landlord due to such holdover tenancy. All
        other terms of the sublease and the attornment agreement remain the
        same.</font></div>
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        Agreement</em></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        December 20, 2005, we entered into a sublease agreement with Anacomp, Inc.,
        as
        sublandlord, to sublease approximately 23,698 rentable square feet of space
        located at 15378 Avenue of Science, San Diego, California 92118 for our
        principal executive offices. We will also be using such space for warehousing,
        product assembly, and research and development purposes. </font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        sublease is for a term commencing January 1, 2006 and expiring May 31, 2011.
        We
        have agreed to pay $29,622.50 per month (i.e., $1.25 per rentable square
        foot)
        during the term. In addition to the monthly base rental expense, we will
        be
        responsible for certain costs and charges specified in the sublease, including
        our proportionate share of the building operating expenses and real estate
        taxes.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition, the sublease provides that we have a right of first refusal on
        additional space in the building, which contains a total of 68,910 square
        feet
        including our premises. Anacomp will also provide a $10,000 tenant improvement
        allowance towards the completion of lobby improvements and a $50,000 letter
        of
        credit in our favor which we may draw upon to the extent necessary to offset
        any
        increase in our rent or relocation costs that we incur due to Anacomp's failure
        to maintain the lease with the master landlord for the building. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        the right to terminate the sublease on or before December 27, 2005 in the
        event
        the master landlord fails to consent to the sublease by December 21,
        2005.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Employment
      of Karen Jordan as Chief Accounting Officer</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        December 16, 2005, our board of directors approved the appointment of Ms.
        Jordan
        as our chief accounting officer. Ms. Jordan's employment is terminable at-will
        by us or by Ms. Jordan for any reason, with or without notice. Ms. Jordan's
        annual salary is $140,000, and she participates in bonus, benefit and other
        incentives at the discretion of the compensation committee of our board of
        directors. More information about Ms. Jordan is set forth in Item 5.02 below
        and
        is incorporated into this Item 1.01.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        1.02 Termination of a Material Definitive Agreement.</strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Michael
        A. Russell, our former chief financial officer, resigned from his employment
        on
        December 16, 2005. Mr. Russell's resignation on December 16, 2005 constituted
        notice of termination of his employment arrangement with our company. Mr.
        Russell was employed under the terms of a letter agreement dated June 15,
        2004.
        Mr. Russell's annual base salary at the time of resignation was $185,000,
        and he
        was entitled to an annual performance bonus of up to 25% of his base salary,
        as
        determined by the compensation committee. Mr. Russell's employment was
        terminable at-will by us or Mr. Russell for any reason, with or without notice.
        No bonus will be paid to Mr. Russell.</font></div>
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        2.02 Results of Operation and Financial Condition.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        December 15, 2005, we issued a press release announcing estimated results
        of
        operation for the fiscal year ended September 30, 2005. A copy of the press
        release is attached hereto as Exhibit 99.1. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        accordance with General Instruction B.2. of Form 8-K, the information in
        Item
        2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not
        be
        deemed &#8220;filed&#8221; for purposes of Section 18 of the Securities Exchange Act of
        1934, as amended (the &#8220;Exchange Act&#8221;), or otherwise subject to the liability of
        that section, nor shall it be deemed incorporated by reference in any filing
        under the Securities Act of 1933, as amended, or the Exchange Act, except
        as
        expressly set forth by specific reference in such a filing.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        5.02 Departure of Director or Principal Officer; Appointment of Principal
        Officer.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Departure
        of Chief Financial Officer and Appointment of Interim Chief Financial
        Officer</em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        December 16, 2005, our board of directors appointed John R. Zavoli as our
        interim chief financial officer to replace Mr. Michael A. Russell, whose
        duties
        in that position ceased on December 16, 2005. Mr. Russell will continue as
        an
        employee of our company to assist with the completion of our company's audit
        for
        the fiscal year ended September 30, 2005. Mr. Zavoli is currently our president
        and chief operating officer. Mr. Zavoli, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">age
        46, was appointed as president and chief operating officer on October 17,
        2005,
        commencing November 1, 2005. Mr. Zavoli was appointed to our board of directors
        on June 14, 2005. Information on Mr. Zavoli's background and experience,
        and the
        terms of his employment with our company are described in a Form 8-K filed
        October 21, 2005. Mr. Zavoli's employment terms will not change as a result
        of
        this appointment.</font></div>
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        as
        described above and in the Form 8-K filed October 21, 2005, there are no
        transactions between Mr. Zavoli and our company in which Mr. Zavoli has a
        direct
        or indirect material interest which we are required to
        report.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        December 16, 2005, Karen Jordan was appointed as our chief accounting officer.
        Ms. Jordan, age 35, joined American Technology Corporation in November 2005
        as
        director of finance. From July 2003 to November 2005, Ms. Jordan was a
        self-employed bankruptcy executive, managing the Estates of LCS Management,
        Inc.
        and LCS West, Inc. From January 2001 to July 2003, Ms. Jordan was corporate
        controller with LifeCare Solutions, Inc., a provider of integrated home
        healthcare products and services. From June 1996 to January 2001, Ms. Jordan
        held various positions with Quidel Corporation, a developer and manufacturer
        of
        diagnostic tests for detection of a variety of medical conditions and illnesses.
        At the time Ms. Jordan left Quidel Corporation, she held the position of
        assistant controller. Ms. Jordan is a Fellow Chartered Accountant in Ireland.
        Ms. Jordan received her Associate Chartered Accountant license from the
        Institute of Chartered Accountants in Ireland.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
        were no arrangements or understandings between Ms.&#160;Jordan and any other
        person pursuant to which Ms. Jordan was selected as an executive officer.
        There
        are no family relationships between Ms. Jordan and any of our directors and
        executive officers. Except as described above in Item 1.01, there are no
        transactions between Ms. Jordan and American Technology Corporation in which
        Ms.
        Jordan has a direct or indirect material interest which we are required to
        report. </font></div>
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      9.01 Financial Statements and Exhibits.</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibit
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      Release dated December 15, 2005</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: "><strong>AMERICAN
              TECHNOLOGY CORPORATION</strong></font></td>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
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          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Date:&#160;December
              20, 2005</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;John
              R.
              Zavoli</font></td>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">John
              R.
              Zavoli<br>President and Chief Operating Officer and<br>Interim Chief
              Financial Officer</font></td>
          </tr>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>atco_8k-ex9902.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<html>
  <head>
    <title>
      Press Release
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
      99.1</font></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FOR
      IMMEDIATE RELEASE </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman, serif"><strong>AMERICAN
      TECHNOLOGY CORPORATION FILES FOR </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman, serif"><strong>EXTENSION
      OF ANNUAL REPORT ON FORM 10-K,</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman, serif"><strong>EXPECTS
      TO FILE ON OR BEFORE DECEMBER 29, 2005</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman, serif"><strong>Company
      Expects to Report Revenues of Approximately $10.2 Million for Fiscal Year Ended
      September 30, 2005</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -36pt" align="left"><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SAN
        DIEGO, CA, December 15, 2005 - American Technology Corporation (ATC) (NASDAQ:
        ATCO)</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
        an
        innovator of directed sound products and technologies, announced today it
        was
        not able to file its Form 10-K for the fiscal year ended September 30, 2005
        by
        the due date of December 14, 2005 without unreasonable effort or expense
        because
        of delays in performing additional procedures with respect to its year-end
        financial statements, and Swenson Advisors, LLP, the company&#8217;s independent
        registered public accounting firm, will require additional time to complete
        its
        audit of such financial statements.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition, management requires additional time to complete its report on
        management&#8217;s assessment of the company&#8217;s internal control over financial
        reporting required by Section 404 of the Sarbanes-Oxley Act of 2002. Audit
        adjustments to date have resulted in management's identification of material
        weaknesses in the company&#8217;s internal control over financial reporting. As a
        result of these material weaknesses, management will report that the company's
        internal control over financial reporting was not effective as of September
        30,
        2005. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Like
        many companies first complying with Sarbanes-Oxley, ATC is finding that its
        internal controls are not sufficient to meet the Sarbanes-Oxley standards,"
        said
        John Zavoli, ATC&#8217;s new president and chief operating officer. "Since my start
        date last month, I have worked on adding the resources and controls necessary
        to
        address the deficiencies in our accounting, finance and operations functions.
        We
        are addressing these issues and expect to file our annual report on Form
        10-K on
        or before December 29, 2005.&#8221;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ATC
        expects to report in the Form 10-K revenues of approximately $10.2 million
        for
        the fiscal year ended September 30, 2005 as compared with the previous fiscal
        year's revenues of $5.8 million. Gross profit for fiscal 2005 is expected
        to be
        approximately $</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.5
        million </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">or
        44% of
        revenues, compared to $</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.3
        million </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">or
        40% of
        revenues for fiscal 2004. The increase in revenues and gross profit is
        principally the result of an increase of sales of the company&#8217;s LRAD products.
        ATC expects selling, general and administrative expenses to be approximately
        $9.1 million or 89% of revenues for fiscal 2005, compared with $5.3 million
        or
        92% of revenues for fiscal 2004. Research and development costs are expected
        to
        be $4.6 million or 45% of revenues for 2005, a 54% increase from $3.0 million
        in
        2004. ATC made heavy investments in fiscal 2005 completing new HSS&#174;, portable
        LRAD&#8482;, and NeoPlanar&#174;-based products, and in growing its sales and marketing
        organization. Loss from operations is expected to be approximately
        $9.3</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        million</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        for
        fiscal 2005 compared to $6.0</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        million
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">for
        fiscal 2004. The increase in loss in fiscal 2005 resulted from increases
        in
        selling, general and administrative expenses and research and development
        expenses, partially offset by increased gross profit. Based on the procedures
        and audit still underway, there may be additional adjustments to the fiscal
        2005
        results.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -36pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -36pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>A</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>bout
      American Technology Corporation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">American
      Technology Corporation is Shaping the Future of Sound&#174; through its proprietary
      directed sound products and technologies which include: the award-winning HSS&#174;
(HyperSonic&#174; Sound technology); LRAD&#8482; (Long Range Acoustic Device) products
      family; NeoPlanar&#174; products family, Sound Vector&#8482; technology, and others. The
      Company is establishing a strong portfolio of patents, trademarks, and
      intellectual property including over 320 U.S. and foreign patents and pending
      patent applications to date. For more information on the company and its
      technologies and products please visit our web site at </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #cccccc; FONT-FAMILY: Times New Roman">www.atcsd.com</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Safe
      Harbor statement under the Private Securities Litigation Reform Act of
      1995:</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      press release contains forward-looking statements within the meaning of the
      Securities Act of 1933 and the Securities Exchange Act of 1934, including
      statements relating to the company's expectation that it will file its 2005
      Form
      10-K on or before December 29, 2005 and the company's expected financial results
      to be reported in the 2005 Form 10-K. These forward-looking statements involve
      a
      number of risks and uncertainties, including uncertainties related to the
      results and completion of the audits of the company's financial statements
      and
      assessment of its internal control over financial reporting. These and other
      factors could cause the company's actual results to differ materially from
      what
      it projects in its forward-looking statements, and could delay the filing of
      the
      Form 10-K beyond the December 29, 2005 extended filing deadline. These
      forward-looking statements are based on information and management's
      expectations as of the date of this press release. For more information
      regarding other potential risks and uncertainties, see the "Business Risks"
      section of the company's most recent Form 10-Q for the quarter ended June 30,
      2005 and the "Risk Factors" section of the company's Form 10-K/A for the year
      ended September 30, 2004. The company disclaims any intent or obligation to
      update these forward-looking statements. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">###</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FOR
      FURTHER INFORMATION CONTACT:</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -36pt" align="left">
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="70%">

            <tr>
              <td align="left" valign="top" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investor
                  relations:</font></div>
              </td>
              <td align="left" valign="top" width="10%">&#160;</td>
              <td align="left" valign="top" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Media
                  inquiries:</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Robert
                  Putnam</font></div>
              </td>
              <td align="left" valign="top" width="10%">&#160;</td>
              <td align="left" valign="top" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Don
                  Mathias</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(858)
                  679-3168</font></div>
              </td>
              <td align="left" valign="top" width="10%">&#160;</td>
              <td align="left" valign="top" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(949)
                  855-4520</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">robert@atcsd.com</font></div>
              </td>
              <td align="left" valign="top" width="10%">&#160;</td>
              <td align="left" valign="top" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">dwmath@aol.com</font></div>
              </td>
            </tr>

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