Flexpoint Announces Restructuring and New Direction
SALT LAKE CITY--April 23, 2001--Flexpoint Sensor Systems, Inc. (OTC Bulletin Board: FLXP - NEWS). Today John Sindt, President and CEO of Flexpoint announces a chronological overview of events which have taken place since the Company's last public announcement, dated January 29, 2001. "I believe that this information will be helpful for shareholders and investors to understand the new direction of the Company. After being involved with the Company for the last six years, I take on an air of excitement for the new direction the Company has taken. This is allowing Flexpoint technology to expand into new applications and revenue streams that the Company has never before realized," states Mr. Sindt.Board of Directors - As part of the Company's restructuring the Board of Directors has been reorganized to include the following individuals:
John A. Sindt, whom has been a member of the Board of Directors since December of 1999. Mr. Sindt is one of the original investors in the Company. Mr. Sindt has over 30 years of executive management in the public and private sector.
Donald E. Shelley is a Certified Public Accountant and member of AIPA for 22 years. Mr. Shelley has assisted in business developments in both the public and private sector. Along with Mr. Shelley's Board of Director duties he has agreed to assist in the Company's accounting and business development needs.
Eric Jergensen has a Bachelor's of Science degree as a civil engineer and a Master's of Business Administration degree from the University of Utah. He is currently the President and CEO of Contour Composites, Inc. as well as holds several positions with civic and community boards and other organizations.
Management - On February 15, 2001 as part of the restructuring the Board of Directors recognized the resignation of its current President and CEO, John Trotter. As part of the February 15, 2001 meeting the Board of Directors elected John Sindt to fill the vacancy of President and CEO. Mr. Sindt has been a key component of the reorganization of the Company including restructuring of the Company's business plan and current management.
The Company has been able to maintain its relationship with the senior production team during the restructuring. The team of engineers include the Automotive Production Manager, Staff Engineers, Senior Research and Development Engineers and a number of their Design and Production Engineers. These engineers are and have been considered key to Flexpoint's continuous production and development of its technology.
Recent Board Actions - On March 8, 2001 the Board of Directors resolved that the 50,000,000 shares of the Company's common stock issued to Aspen Capital Resources, LLC is to be immediately canceled.
The stock was issued to Aspen Capital as part of a demand from their original financing agreement, dated March 3, 2000 as previously reported in the Company's 8-K SEC filing, dated March 17, 2000.
The Board of Directors, after seeking advice from legal counsel in regards to the cancellation of the 50,000,000 shares issued to Aspen Capital, determined that the issuance of these shares was improper and must be canceled to protect the interests of the Company and its shareholders. Upon the cancellation of the 50,000,000 shares on the Company's books and records Aspen Capital was notified that these shares were improperly issued to them and had been canceled.
Current Business - The Company is currently manufacturing its technology for several companies and has approximately fifteen current ongoing business clients involving Flexpoint's sensor technology. In the past two months the Company has fulfilled contracts in both the automotive and medical industries. The Company's reorganization has not affected the ability to continue the manufacturing and sales of its technology.
The Company is also continuing its research and development of its technology. Currently Flexpoint has several new projects in research and development which are further expanding their patents and technology.
Flexpoint's Future Objectives - Current management's main objectives are as follows:
| -- | Reconfirm its well recognized value to the automotive industry. |
| -- | Continue to expand the Company's efforts into industrial controls and medical applications. |
| -- | Increasing the Company's profitability. |
The Company currently has a working relationship with a number of automotive companies on both the OEM and aftermarket levels. We are also currently developing new uses for the sensor as well as completing final negotiation for the sensor technology in various applications in the automotive industry.
The Company has developed and is manufacturing various new uses for its sensor technology in the industrial and medical technology areas. These devices range from the simple application of an on/off switch to more precise applications required by the medical and industrial fields.
The first step for increasing the Company's profitability has been the consolidation of operations. We have drastically reduced our operating expenses and overhead. As part of the restructuring the Company has closed its automotive manufacturing plant and consolidated this plant with its main facility, therefore, creating a new direction for research and development of the technology and less focus in the manufacture of the devices. The new plan allows the Company to no longer be a single product developer and manufacturer, we are now a broad based, multi-industrial, high-tech sensor development and engineering company, allowing us to work with many different industries at the same time throughout the world. The Company's current management believes that one of the major problems of the past has been the narrow focus on one specific application of its technology and, therefore, one income stream for the Company. We are pleased to say that the Company's new approach has given the Company multiple streams of products and revenues at the same time.
About the Company - Flexpoint Sensor Systems, Inc. is a high-tech sensor research and development company that focuses on engineering and development of sensor applications. Flexpoint's patented technologies provide many industries with new sensor technology that is more versatile, durable, and lower cost than prior technologies known to the industry.
Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27 A of the Securities Act of 1933, Section 21 E of the Securities Act of 1933, Section 21 E of the Securities Exchange Act of 1934, and as that term defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risk and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results.