eLinear Responds to American Stock Exchange Notice
15 June 2006 - 7:14AM
Business Wire
On June 9, 2006, eLinear, Inc. (AMEX:ELU) received a letter from
the American Stock Exchange indicating that the Company is in
non-compliance with the Exchange's continued listing standards due
to Section 134 and 1101 of the Company Guide requirement to timely
file its Forms 10-QSB and Forms 10-KSB and that its securities are,
therefore subject to being delisted from the Exchange. The Company
has appealed this determination and requested a hearing before a
committee of the Exchange. There can be no assurance that the
Company's request for continued listing will be granted. The
Company expects to have the Form 10-KSB for the year ended December
31, 2005 and Form 10-QSB for the quarter ended March 31, 2006 filed
prior to the hearing date, which would resolve the issues with this
current AMEX letter. In a letter dated November 22, 2005, the
Exchange advised eLinear that the Company was not in compliance
with certain of the Exchange's continued listing standards due to
its failure to file its Form 10-QSB for the quarter ended September
30, 2005. On November 18, 2005, the Company filed a Form 8-K and
issued a press release stating that the previously issued financial
statements included in the Forms 10-QSB and Forms 10-KSB for the
quarterly and annual periods ended from March 31, 2004 to and
including June 30, 2005, should not be relied upon based on
comments by the Securities and Exchange Commission that it (i)
believed EITF 00-19 applies when evaluating whether embedded
derivative instruments qualify as equity instruments or
liabilities, (ii) had further comments on the Company's accounting
for warrants issued in financings effected during 2004 and 2005,
and (iii) believed that EITF 96-19 applied in accounting for the
modification of financing arrangements. After discussions with the
Company's independent accounting firm, the Audit Committee agreed
with management's recommendations that the previously issued
financial statements should be restated. The Company could not file
the Form 10-QSB for the quarter ended September 30, 2005, the Form
10-KSB for the year ended December 31, 2005 or the Form 10-QSB for
the quarter ended March 31, 2006 until all of the restatements had
been completed. The Company began the process of restating the
financial statements impacted by EITF 00-19. The amended and
restated Forms 10-QSB for the quarters ended March 31, June 30, and
September 30, 2004, were filed with the SEC on April 4, 2006. The
amended and restated Form 10-KSB for the year ended December 31,
2004 was filed with the SEC on April 6, 2006. The Form 10-QSB for
the quarter ended March 31, 2005 was filed with the SEC on April
10, 2006, the Form 10-QSB for the quarter ended June 30, 2005, was
filed on April 11, 2006 and the Form 10-QSB for the quarter ended
September 30, 2005, was filed on April 26, 2006, which was
subsequently amended on June 6, 2006. The Company has completed the
original Form 10-KSB for the year ended December 31, 2005, and its
independent accounting firm is currently reviewing the filing and
completing certain audit procedures related to it. The Company will
file that form with the SEC when its auditors have completed their
review. The Company expects to be able to complete the auditor's
review of the original Form 10-QSB for the quarter ended March 31,
2006 soon after its independent accounting firm has completed its
review of the Form 10-KSB for the year ended December 31, 2005.
Once the Company has filed the Form 10-QSB for the quarter ended
March 31, 2006, all restatements will have been filed and it should
regain AMEX compliance. About eLinear, Inc. eLinear, Inc. is a
communications, security and compliance company providing
integrated technology solutions including information and physical
security, IP Telephony and network and storage solutions
infrastructure. Typically, the company's customers are Fortune 2000
and small to medium sized business organizations. eLinear's
services are offered to companies seeking to increase productivity
or reduce costs through investing in technology. eLinear has a
national and international footprint and has its headquarters in
Houston, Texas. For more information, see http://www.elinear.com.
Safe Harbor Statement This press release contains statements that
may constitute forward-looking statements, including the company's
ability to realize the projected revenues from the newly announced
project orders and the future strength of the company's business
and industry. These statements are based on current expectations
and assumptions and involve a number of uncertainties and risks
that could cause actual results to differ materially from those
currently expected. For additional information about eLinear please
visit www.elinear.com or www.sec.gov. eLinear undertakes no
obligation to update any forward-looking statement that may be made
from time to time by or on behalf of the company, whether as a
result of new information, future events or otherwise.
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