CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)--Oct. 25, 2005--Global ePoint, Inc. (NASDAQ: GEPT - News), a leading manufacturer of security technologies for the aviation, law enforcement, industrial and commercial markets, today announced that it has resolved the comments received from the Nasdaq Stock Market concerning past grants of options and warrants.
Over the last two years the Company granted options and warrants to purchase a total of 225,000 common shares to certain consultants and an employee. These options and warrants were properly disclosed in the Company’s SEC filings and accounted for in the Company’s financial statements; however, as earlier announced, the Company received a letter from the Nasdaq Stock Market on September 23, 2005 indicating its belief that Global ePoint did not comply with Marketplace Rule 4350(i)(1)(A), which requires shareholder approval for issuances of common stock or securities convertible into common stock to employees, officers, directors or consultants. Of those warrants and options, warrants to purchase 25,000 shares have expired unexercised. The Company has cancelled the remaining options and warrants and reissued them as non-qualified stock options under the Company’s 2004 Stock Incentive Plan, which was approved by shareholders at the Company’s 2004 annual meeting of stockholders held in December 2004. Global ePoint has 13.8 million shares outstanding.
On October 25, 2005, the Nasdaq Stock Market issued to the Company a letter accepting the Company’s resolution of the issue and stating that the Nasdaq staff "has determined that the Company has resumed compliance with Marketplace Rule 4350(i)(1)(A) and this matter is now closed."
About Global ePoint, Inc.
Global ePoint’s growth catalyst, through its wholly-owned subsidiaries, is the design, manufacturing, sales and distribution of digital video surveillance systems for the law enforcement, military, aviation and homeland security markets. On the cutting edge of digital technology and seeking to expand its product line, Global ePoint is developing new compression technologies and next-generation, secure network digital video systems and servers for a wide range of new markets, concentrating primarily on security and homeland defense applications. As a solid recurring revenue stream, the Company also manufactures customized computing systems for industrial, business and consumer markets, as well as other specialized electronic products and systems. Complete vertical integration -- from design and manufacturing to sales and distribution -- allows the Company to capture efficiencies and maintain cost advantages in these growing markets, particularly homeland security. For more information, please visit http://www.globalepoint.com
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This release may contain forward-looking statements. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks related to the integration of the Company’s recently acquired operations; market acceptance of the Company's products; delays in the introduction of new products; production and/or quality control problems; further approvals of regulatory authorities and the denial, suspension or revocation of certifications and licenses by governmental authorities; and the Company’s ability to obtain capital as and when needed. For a discussion of these and other factors which may cause actual events or results to differ from those projected, please refer to the Company’s most recent annual report on Form 10-KSB and quarterly reports on Form 10-Q, as well as other subsequent filings with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
Global ePoint, Inc.
Paul Goodson, 909-839-1719
CEOcast, Inc. for Global ePoint
Ed Lewis, 212-732-4300