SOURCE: Electronic Control Security, Inc.

Electronic Control Security, Inc.

September 29, 2014 15:21 ET

Electronic Control Security, Inc. Announces Voluntary Filing of Form 15 to Suspend SEC Reporting Obligations

CLIFTON, NJ--(Marketwired - Sep 29, 2014) - Electronic Control Security, Inc. (OTCBB: EKCS), a global leader in state-of-the-art integrated entry control and perimeter security systems, announced today that it has determined to effect a suspension of its reporting obligations under Section 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), by filing a Form 15 with the Securities and Exchange Commission ("SEC") on September 29, 2014. Accordingly, Electronic Control will not be filing an annual report on Form 10-K for the recently completed fiscal year ended June 30, 2014.

The action was taken in the wake of the continuing cash flow constraints that the Company has been facing as a result of the delays in receiving funded task orders and the refusal by Lockheed Martin to make payment of amounts owed to the Company. The Company's Board has approved the suspension of its SEC reporting obligations primarily as a cost reduction measure, thereby allowing Company personnel and scarce resources to focus exclusively on continuing to operate the business. After thoughtful and deliberate consideration, the Company's Board of Directors made this decision based upon a thorough review of the associated costs and benefits of being an SEC-registered company and the underlying regulatory reporting obligations. The Company believes that the incremental cost of compliance with SEC public reporting requirements does not provide a discernible benefit to the Company and its shareholders. Suspending the Company's SEC reporting obligations is expected to result in substantial legal, accounting, and related cost savings associated with reporting compliance and make those savings available for continued operation of the business.

Arthur Barchenko, the Company's President and CEO, said, "The current market conditions, auditing, legal and other expenses required to comply with the SEC reporting requirements make it untenable for us to continue to be a reporting company at this time. We expect that the Company will realize significant savings by taking these steps, as we continue our efforts to control costs as part of the difficult challenges we face."

The Company is eligible to suspend its reporting obligations because it has fewer than 300 record holders of its common stock. Immediately upon the filing of the Form 15, certain reporting obligations of the Company, such as its obligation to file Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, will immediately be suspended. 

About ECSI
ECSI is a global leader in entry control and perimeter security and a quality provider to the Department of Defense, Department of Energy, nuclear power stations, and other large commercial-industrial complexes. The Company designs, manufactures and markets physical electronic security systems for high-profile, high-threat environments utilizing risk assessment and analysis to determine and address the security needs of its customers. Teaming agreements with major system integrators enable ECSI to support the installation and aftermarket of its products in the U.S. and overseas. ECSI is located at 790 Bloomfield Avenue, Bldg. C-1, Clifton, NJ 07012. Tel: 973-574-8555; Fax: 973-574-8562. For more information on ECSI and its customers, please visit http://www.ecsiinternational.com.

Forward Looking Statements

Except for historical information, this press release contains statements that may be deemed to be "forward-looking statements". We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, which could have a material adverse effect on our operations and future prospects including, but not limited to, the Company's termination of its reporting obligations, and its ability to realize significant savings as a result thereof and the ability of the Company to continue as a going concern. We undertake no obligation to publicly update or revise any forward-looking statements. Further information on the Company's risks and uncertainties is available in our filings with the Securities and Exchange Commission.

Contact Information

  • FOR CONTACT:
    Daryl Holcomb
    (973) 574-8555