GlobalSCAPE, Inc. Receives Notice from NYSE Regulation Regarding Late Filing of Annual Report

SAN ANTONIO–(BUSINESS WIRE)–GlobalSCAPE, Inc. (NYSE American: GSB) (“GlobalSCAPE” or the “Company”),
a worldwide leader in the secure movement and integration of data, today
announced that on September 7, 2017, the Company received a notice of
noncompliance with the continued listing standards set forth in Section
1007 of the Company Guide (the “Company Guide”) of NYSE American LLC
(the “Exchange”). This notice of noncompliance is predicated on the
Company’s failure to timely file its Form 10-K for the fiscal year ended
December 31, 2016 (the “Delayed Form 10-K”) with the U.S. Securities and
Exchange Commission (the “SEC”).

The Company previously disclosed in its Current Report on Form 8-K filed
with the SEC on August 28, 2017 that the Company had become subject to
the procedures and requirements set forth in Section 1007 of the Company
Guide as a result of its failure to timely file with the SEC its
quarterly report on Form 10-Q for the quarter ended June 30, 2017 (the
“Delayed Form 10-Q”).

As previously disclosed in its Current Report on Form 8-K filed with the
SEC on August 7, 2017 (the “Restatement Form 8-K”), the Company’s Audit
Committee, in consultation with management, concluded that the Company’s
consolidated financial statements for the year ended December 31, 2016
included in the Company’s Annual Report on Form 10-K (including the
interim periods within that year) should no longer be relied upon.
Subsequently, RSM US, LLP (“RSM”), the Company’s former independent
registered public accounting firm, withdrew its report relating to its
audit of the Company’s consolidated financial statements for the year
ended December 31, 2016. RSM informed the Company of this withdrawal of
its report through a letter dated September 5, 2017, and the Company
subsequently notified the Exchange of this withdrawal. The Company then
received the notification of noncompliance with the Exchange’s continued
listing standards referencing the Delayed Form 10-K.

In connection with the Delayed Form 10-K and the Delayed Form 10-Q, NYSE
Regulation, which monitors whether an issuer listed on the Exchange has
timely filed its annual and interim reports with the SEC, has informed
the Company that during the period ending on February 22, 2018 (the
“Initial Cure Period”), the Exchange will monitor the Company and the
status of the Delayed Form 10-K, the Delayed Form 10-Q and any
subsequent annual or quarterly report that the Company fails to file by
the applicable due date (“Subsequent Reports”) until the amended Form
10-K with a reissued audit report, the Delayed Form 10-Q and any
Subsequent Reports have been filed with the SEC. If the Company fails to
file the amended Form 10-K with a reissued audit report, the Delayed
Form 10-Q and any Subsequent Reports within the Initial Cure Period, the
Exchange may, in the Exchange’s sole discretion, allow the Company’s
securities to be traded for up to an additional six-month period (the
“Additional Cure Period”) depending on the Company’s specific
circumstances. NYSE Regulation has informed the Company that if the
Exchange determines that an Additional Cure Period is not appropriate,
suspension and delisting procedures will commence in accordance with the
procedures set out in Section 1010 of the Company Guide. The Exchange
may, in its sole discretion, decide (i) not to afford the Company any
Initial Cure Period or Additional Cure Period, as the case may be, at
all or (ii) at any time during the Initial Cure Period or Additional
Cure Period, to truncate the Initial Cure Period or Additional Cure
Period, as the case may be, and immediately commence suspension and
delisting procedures if the Company is subject to delisting pursuant to
any other provision of the Company Guide, including if the Exchange
believes, in the Exchange’s sole discretion, that continued listing and
trading of the Company’s securities on the Exchange is inadvisable or
unwarranted in accordance with Sections 1001-1006 of the Company Guide.

As previously disclosed in the Restatement Form 8-K, the Company intends
to effect a restatement of its financial statements through filing an
amended Form 10-K for the year ended December 31, 2016 and an amended
Form 10-Q for the quarter ended March 31, 2017. The Company is working
diligently to complete these filings as well as the Delayed Form 10-Q
and intends to make all of these filings as soon as practicable, which
will result in regaining compliance with the continued listing standards
of the Exchange.

The Company’s common stock will continue to be listed on the Exchange
under the ticker symbol “GSB” but, as previously disclosed, a “.LF”
indicator is being disseminated with the Company’s ticker symbol to
signify the Company’s late filing status.

The Company is making this announcement in compliance with Section 1007
of the Company Guide, which requires prompt disclosure of receipt of a
notification of noncompliance with the Exchange’s continued listing
standards.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, including,
without limitation, GlobalSCAPE’s expectations as to the timing of the
filing of the amended Form 10-K with a reissued audit report, the
amended Form 10-Q and the Delayed Form 10-Q.

These forward-looking statements involve risks and uncertainties, and
actual results could vary materially from these forward-looking
statements. Factors that may cause future results to differ materially
from management’s current expectations include, among other things, the
discovery of additional information relevant to the internal
investigation previously announced by the Company; the conclusions of
the Company’s Audit Committee (and the timing of the conclusions)
concerning matters relating to the internal investigation; the timing of
the review by, and the conclusions of, GlobalSCAPE’s independent
registered public accounting firm regarding the internal investigation
and GlobalSCAPE’s financial statements; the possibility that additional
errors may be identified; the risk that the completion of the
restatement of the Company’s financial statements and the filing of the
related quarterly and annual report amendments will take longer than
expected; pending litigation and the possibility of further legal
proceedings adverse to GlobalSCAPE resulting from the restatement or
related matters; and the costs associated with the restatement.
GlobalSCAPE disclaims any obligation to update information contained in
these forward-looking statements whether as a result of new information,
future events, or otherwise.

Contacts

GlobalSCAPE Press Contact
Perry Street Communications
Jonathan
Morgan, 214-965-9955 or 212-333-5525
jmorgan@perryst.com
or
Investor
Relations Contact

Matt Glover or Najim Mostamand, 210-801-8489
IR@globalscape.com