<PAGE>
================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                              ---------------------

                                   FORM 10-QSB

                 [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2002

                                      -OR-

                [_] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

               For the transition period from ________ to ________


                         Commission file number 0-21738

                              ---------------------

                               GLOBAL EPOINT, INC.
           (Name of small business issuer as specified in its charter)

                              ---------------------

               NEVADA                                        33-0423037
   (State or other jurisdiction of             (IRS Employer identification No.)
   incorporation or organization)

        1370 W. SAN MARCOS BLVD., SUITE 100, SAN MARCOS, CALIFORNIA 92069
                    (Address of principal executive offices)


                                 (760) 510-4900
                           (Issuer's telephone number)

                              ---------------------

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the preceding twelve months, and (2) has
been subject to such filing requirements for the past 90 days.

                                 Yes [X] No [_]

As of August 1, 2002, there were 4,305,584 shares of Common Stock ($.03 par
value) outstanding.

================================================================================

<PAGE>

                                      INDEX

<TABLE>
<CAPTION>
                                                                                 Page
                                                                                 ----
<S>                                                                              <C>
Part I.  Financial Information

  Item 1. Financial Statements

    Condensed Consolidated Balance Sheet
    June 30, 2002 (Unaudited)                                                       3

    Condensed Consolidated Statements of Operations
    Three and Six Months Ended June 30, 2002 and 2001 (Unaudited)                   4

    Condensed Consolidated Statements of Cash Flows
    Six Months Ended June 30, 2002 and 2001 (Unaudited)                             5

    Notes to Condensed Consolidated Financial Statements (Unaudited)                6

  Item 2. Management's Discussion and Analysis of Financial
    Condition and Results of Operations                                             7

Part II. Other Information                                                          9
</TABLE>

<PAGE>

                      Global ePoint, Inc. and Subsidiaries
                      Condensed Consolidated Balance Sheet
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                                               June 30
 (Thousands of dollars, except share amounts)                                                   2002
----------------------------------------------------------------------------------------------------------
<S>                                                                                            <C>
Assets
----------------------------------------------------------------------------------------------------------
Current assets:
     Cash and cash equivalents                                                                $   4,801
     Accounts receivable, net                                                                         3
     Other current assets                                                                           397
----------------------------------------------------------------------------------------------------------
Total current assets                                                                              5,201
----------------------------------------------------------------------------------------------------------
Plant, property and equipment, net                                                                   97
Card dispensing equipment, net                                                                    3,386
Parts inventory, net                                                                                609
Other assets                                                                                        268
----------------------------------------------------------------------------------------------------------
Total assets                                                                                  $   9,561
==========================================================================================================
Liabilities and shareholders' equity
----------------------------------------------------------------------------------------------------------
Current liabilities:
     Accounts payable                                                                         $      84
     Accrued expenses and other current liabilities                                               1,026
----------------------------------------------------------------------------------------------------------
Total current liabilities                                                                         1,110
----------------------------------------------------------------------------------------------------------
Commitments and contingencies
Shareholders' equity:
     Preferred stock, no par value, 2,000,000 shares
         authorized, no shares issued or outstanding
     Common stock, $.03 par value, 13,333,334 shares
         authorized, 4,305,584 shares issued and outstanding                                        129
     Shares to be issued                                                                            950
Additional paid-in capital                                                                       33,124
Accumulated deficit                                                                             (25,752)
----------------------------------------------------------------------------------------------------------
Total shareholders' equity                                                                        8,451
----------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity                                                    $   9,561
==========================================================================================================
</TABLE>

See accompanying notes to condensed consolidated financial statements

<PAGE>

                      Global ePoint, Inc. and Subsidiaries
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                       Six Months Ended           Three Months Ended
                                                                           June 30                     June 30
(Thousands of dollars/shares, except per share amounts)                2002       2001            2002         2001
----------------------------------------------------------------------------------------------------------------------
<S>                                                                   <C>       <C>              <C>         <C>
Revenues:
     Sales                                                            $    5    $    10          $    2      $    4
     Interest income                                                      66         44              40          44
     Other income                                                         80                         23
----------------------------------------------------------------------------------------------------------------------
Total Revenues                                                           151         54              65          48
----------------------------------------------------------------------------------------------------------------------
Operating expenses:
     Cost of sales                                                         1          5                           2
     Selling, general and administrative                                 359      1,034             181         596
     Interest expense                                                               266                         112
     Restructuring costs                                                 324                        118
     Costs of abandoned projects                                         350                        350
----------------------------------------------------------------------------------------------------------------------
Total operating expenses                                               1,034      1,305             649         710
----------------------------------------------------------------------------------------------------------------------
Loss from continuing operations                                         (883)    (1,251)           (584)       (662)
Discontinued operations:
     Income                                                                         398                         104
     Gain on sale                                                                 2,744                       2,744
----------------------------------------------------------------------------------------------------------------------
Income from discontinued operations                                               3,142                       2,848
----------------------------------------------------------------------------------------------------------------------
Net Income (loss)                                                     $(883)    $ 1,891          $ (584)     $ 2,186
======================================================================================================================

Earnings (loss) per share - Basic and Diluted:
     Continuing operations                                            $ (.19)   $  (.28)         $ (.13)     $ (.14)
     Discontinued operations                                                        .70                         .61
----------------------------------------------------------------------------------------------------------------------
     Net income (loss)                                                $ (.19)   $   .42          $ (.13)     $  .47
======================================================================================================================
Weighted average shares                                                4,622      4,463           4,622       4,622
======================================================================================================================
</TABLE>

See accompanying notes to condensed consolidated financial statements.

<PAGE>

                      Global ePoint, Inc. and Subsidiaries
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                             Six Months Ended
                                                                                                 June 30
(Thousands of dollars)                                                                       2002       2001
----------------------------------------------------------------------------------------------------------------
<S>                                                                                         <C>       <C>
Cash flows from operating activities:
     Loss from continuing operations                                                        $ (883)   $ (1,251)
     Income from discontinued operations                                                                 3,142
     Adjustments to reconcile income (loss) to net cash
       provided by (used for) operating activities:
         Gain on sale of discontinued operations                                                        (2,744)
         Depreciation and amortization                                                          20         357
         Expense related to options and warrants for services provided                                      52
         Costs of abandoned projects                                                           350
         Changes in assets and liabilities:
              Accounts receivable                                                               (2)        106
              Inventories                                                                      144         418
              Other current assets                                                             (45)        (52)
              Accounts payable                                                                (126)       (333)
              Accrued expenses and other liabilities                                           (21)       (299)
----------------------------------------------------------------------------------------------------------------
Net cash (used for) operating activities                                                      (563)       (604)
----------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
     Purchases of plant, property and equipment                                                            (25)
     Net investment in sales-type leases                                                                   710
     Net proceeds from sale of discontinued operations, net of gain of $2,744                           12,665
     Investment in short-term financial investments                                                       (244)
     (Increase) decrease in other assets                                                       (25)         77
----------------------------------------------------------------------------------------------------------------
Net cash (used for) provided by investing activities                                           (25)     13,183
----------------------------------------------------------------------------------------------------------------
Cash flows from financing activities:
     Repayments of line of credit, net                                                                  (3,786)
     Repayments of notes payable, net                                                                   (1,025)
----------------------------------------------------------------------------------------------------------------
Net cash (used for) financing activities                                                         -      (4,811)
----------------------------------------------------------------------------------------------------------------
Increase (decrease) in cash and cash equivalents                                              (588)      7,768
----------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at beginning of period                                             5,389         139
----------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period                                                  $4,801    $  7,907
================================================================================================================
Supplemental cash flow information:
     cash paid during the period for interest                                               $    -    $    266
================================================================================================================
</TABLE>

See accompanying notes to condensed consolidated financial statements.

<PAGE>

                      GLOBAL EPOINT, INC. AND SUBSIDIARIES
                         NOTES TO CONDENSED CONSOLIDATED
                              FINANCIAL STATEMENTS
                                   (Unaudited)

1.   Basis of Presentation    The accounting and reporting policies of Global
     ePoint, Inc. (formerly On-Point Technology Systems, Inc.) and subsidiaries
     (collectively referred to as the "Company") conform to accounting
     principles generally accepted in the United States of America. The
     condensed consolidated financial statements for the three and six months
     ended June 30, 2002 and 2001 are unaudited and do not include all
     information or footnotes necessary for a complete presentation of financial
     condition, results of operations and cash flows. The interim financial
     statements include all adjustments, consisting only of normal recurring
     accruals, which in the opinion of management are necessary in order to make
     the financial statements not misleading. These consolidated financial
     statements should be read in conjunction with the Company's December 31,
     2001 audited financial statements, which are included in the Company's
     Annual Report on Form 10-KSB for the year ended December 31, 2001. The
     results of operations for the three and six months ended June 30, 2002 are
     not necessarily indicative of the results to be expected for the entire
     year ending December 31, 2002.

2.   Cash and Cash Equivalents    As of June 30, 2002, cash and cash equivalents
     on the accompanying consolidated condensed balance sheet included
     $4 million of Ford Financial Demand Notes Program, which currently yields
     interest at 3.4% per annum with market value approximating cost, and
     included other short-term cash investments with various interest rates.

3.   Discontinued Operations    On June 1, 2001, the Company sold to Interlott
     Technologies, Inc. ("Interlott") those assets used in its then existing
     lottery business, relating to the manufacture, sale, lease and service of
     instant ticket vending machines, including the assignment of the Company's
     existing lottery contracts pursuant to a definitive agreement executed on
     February 23, 2001 (the "Agreement"). As a result of the sale, the
     operations related to the lottery assets have been reflected as
     discontinued operations in the accompanying condensed consolidated
     financial statements.

4.   Restructuring Costs    As a result of the sale of the Company's core
     business operations on June 1, 2001, the Company is in the process of
     establishing new strategic initiatives and transitioning the Company into
     new business activities. During the three and six months ended June 30,
     2002, the Company incurred approximately $118 thousand and $324 thousand,
     respectively, in restructuring costs. The restructuring charges include
     payroll, facilities costs, refurbishment costs and certain other charges
     incremental to restructuring operations and preparing for new business
     activities.

5.   Costs of Abandoned Projects    Included in operating costs were costs
     related to the abandonment of the Company's international projects. The
     Company had been pursuing certain international projects as a result of
     certain strategies initiatives started in 2000. As a result of the recent
     changes in the social-political environment in the countries in which the
     Company was attempting to do business, we have determined that it was in
     the best interest of the Company not to continue proceeding with those
     international projects. As a result, the Company incurred a non-cash charge
     of approximately $350 thousand in the three months ended June 30, 2002 for
     costs related to the abandoned projects.

6.   Contingencies    In December 2001, Global ePoint entered into an
     international service agreement with Fusion Telecommunications
     International, Inc. ("Fusion") pursuant to which the Company and Fusion
     commenced a strategic partnership to provide Voice over Internet Protocol
     ("VoIP") services into a country in Southeast Asia. The Company's
     obligations under the agreement related primarily to financial matters,
     while Fusion's obligations related primarily to providing the
     telecommunication services required for the country. Both companies were to
     share net profits, if any, equally from the venture. Under the agreement,
     the Company was committed to fund up to a maximum of $500 thousand for
     deposits, license fees, connections fees, network costs, equipment costs
     and other related venture costs. In addition, the Company was committed to
     provide a letter of credit of approximately $300 thousand as a deposit for
     termination charges. As of June 30, 2002, The Company had funded
     approximately $132 thousand on behalf of the joint venture, which has been
     capitalized and shown in Other Assets in the accompanying Balance Sheet.

     The Company and Fusion have determined, as a result of a contract
     disagreement with a key entity in the country in Southeast Asia, that it
     was in the Company's and Fusion's best interests not to proceed with

<PAGE>

     providing the telecommunication services. The Company is now in the process
     of collecting its deposits that it had funded for the venture. Although
     there is no guarantee that the Company will have its deposits returned,
     management believes at this time that they will be returned. As a result of
     the determination not to proceed, the Company believes it no longer has any
     further obligatory financial commitments relating to the venture.

     On April 20, 2000, a shareholder class action was filed against the Company
     and certain officers and directors in the U.S. District Court, Southern
     District of California alleging that the Company violated federal
     securities laws by the dissemination of materially false and misleading
     financial statements. Subsequent cases alleging substantially the same
     claims, and also filed in the same court, were all consolidated before the
     same judge. The Company and the officers and directors have entered into
     amended settlement agreements with the class, and the court approved the
     amended settlement agreements in 2001. The Company and the other defendants
     have denied the liability claims as part of the amended settlements, but
     believe that settling the cases quickly was in the best interests of the
     Company in order for management to more effectively proceed with its
     strategic business plans. Under the amended settlement agreement, the
     Company paid $50 thousand in cash and is permitted to issue shares equal to
     $950 thousand in value over a period of time, which is estimated to extend
     for 12 months. The affect of the settlement has already been accrued in the
     Company's financial statements. However, under certain conditions the
     Company may need to issue additional shares of its common stock for the
     settlement if it's per share price is less than $3 at the time of final
     distribution of the stock.

     In October 2001, Loeb & Loeb, a law firm, initiated arbitration proceedings
     in Los Angeles, California against Global ePoint alleging an excess of
     $200,000 in legal fees and costs owed in connection with a proposed merger
     transaction. The Company filed counter claims against Loeb & Loeb in the
     arbitration proceedings for malpractice and breach of contract. The Company
     intends to vigorously litigate the matter and maintains that Loeb & Loeb's
     alleged fees and costs are without merit. Hearings on the matter have been
     rescheduled for arbitration in October 2002.

     In December 2001, a previous supplier to the Company's lottery division,
     initiated an action against the Company in the State of California Superior
     Court, El Cajon Division, alleging approximately $56,000 in costs for goods
     they contend should have been supplied to the Company. The Company is in
     the process of litigating this matter and contends that the claims put
     forth by the supplier are without merit.

7.   Provisions for Income Taxes    No provisions or benefits for federal or
     state income taxes have been made for the three and six month periods ended
     June 30, 2002 and 2001. As of December 31, 2001, the Company had
     approximately $15 million of net operating loss available to offset future
     taxable income. (See Note 6 of Notes to Consolidated Financial Statements
     in the Company's Form 10-KSB for the year ended December 31, 2001).

8.   Per Share Information    Statement of Financial Accounting Standards
     ("SFAS") No. 128 "Earnings per Share" establishes standards for computing
     and presenting Basic Earnings Per Share ("Basic EPS") and Diluted Earnings
     Per Share ("Diluted EPS"). Basic EPS is computed on the basis of the
     weighted average shares of common stock outstanding plus contingently
     issuable shares. Diluted EPS is computed on the basis of weighted average
     shares outstanding plus contingently issuable shares and the additional
     common shares that would have been outstanding if dilutive potential common
     shares had been issued, using the treasury stock method. Included in the
     computation for Basic and Diluted EPS for the three and six months ended
     June 30, 2002 are 316,666 shares, which are contingently issuable pursuant
     to the settlement agreements for the class action cases (see Note 6
     herein). For all the periods presented, options and warrants were not
     factored into the calculation because they were antidilutive or because the
     Company had a net loss. The Company had options and warrants outstanding of
     approximately 1.5 million and 1.9 million at June 30, 2002 and 2001,
     respectively.

9.   Shareholders Equity    The decrease in shareholders' equity from
     approximately $9.3 million at December 31, 2001 to approximately $8.4
     million at June 30, 2002 was substantially the result of the net loss of
     approximately $.9 million for the six months ended June 30, 2002.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

General    The Company is in the process of a major transition. We are
undergoing a series of actions intended to transform the Company and to
strategically move forward with new market opportunities that can better enhance
shareholder value. The Company had been engaged in the lottery industry over the
past 10 years and was one of the largest providers of vending machines for the
sale of instant-winner lottery tickets.

As part of this transformation process, on February 23, 2001, we entered into an
agreement to sell our lottery assets to Interlott. The transaction was closed on
June 1, 2001, whereupon all of the Company's lottery assets were transferred to
Interlott. Since our lottery business accounted for substantially all of our
business through June 1,

<PAGE>

2001, the discussions relating to the results of operations should be read in
this context. As a result of the sale on June 1, 2001, we have no longer been
engaged in the business of manufacturing, selling, leasing and servicing of
lottery vending machines and any discussion of our discontinued operations for
2001 will not relate to our ongoing business activities.

We are now positioned to proceed with further actions designed to transform the
Company into a more diversified company. In that regard, we have been moving
forward with marketing plans for the redeployment and sale of our existing
non-lottery related products (primarily card dispensing machines). The Company's
remaining manufacturing and quality control personnel have been focused on
preparing approximately 2,000 of the Company's existing card dispensing machines
for redeployment into the market and restructuring of the Company's operations.

Management is also reviewing a variety of new market opportunities that would
provide the Company with the ability to accelerate the initial development stage
generally required of a new product. In that respect, management is currently
reviewing the possibilities of merging with an established business and/or
acquiring a developed product line. Our goal with respect to securing a new
market opportunity is to identify which opportunities best leverage our
management expertise, technological property, international relationships and
corporate value, while maximizing our abilities to enhance shareholder value. We
anticipate that if a new business opportunity is completed, a further
restructuring of its operations would result. The extent of the restructuring
and the effect on the Company's financial statements would depend on the
particular business opportunity.

Continuing Operations    The Company had no significant revenue from continuing
operations prior to the sale of its lottery business on June 1, 2001. Although
the Company has non-lottery products, substantially all of its focus in that
period had been on its lottery-related business. Subsequent to the sale of the
lottery assets on June 1, 2001, the Company has been reviewing and moving
forward with strategies to maximize value from its non-lottery related assets.

During the three and six month periods ended June 30, 2002, the Company
generated revenue from continuing operations of $65 thousand and $151 thousand
versus revenue of $48 thousand and $54 thousand for the three and six months
ended June 30, 2001. The increase in revenue was primarily from interest and
investment income resulting from the Company's increased cash reserves and
investments. The Company plans to begin redeploying and selling its card
dispensing equipment during 2002 as part of its plan to generate additional cash
flow from its existing assets and to begin a new business activity. However, no
assurances can be given as to the success of these new strategies.

Total operating expenses decreased in the three and six month periods ended June
30, 2002, primarily as the result of lower selling, general and administrative
costs and lower interest expense. Selling, general and administrative costs and
expenses for the three and six months ended June 30, 2002 decreased by $415
thousand and $675 thousand, respectively, from the prior year comparable periods
primarily due to reduced personnel and related expenses subsequent to the sale
of the lottery business. Interest expense decreased by $112 thousand and $266
thousand for the three and six months ended June 30, 2002, respectively, from
the prior year comparable periods due to the decrease in debt. The reduced costs
and expenses were offset by $118 thousand and $324 thousand of restructuring
costs for the three and six months ended June 30, 2002, respectively, that
included payroll, facilities costs, refurbishment costs and certain other
charges incremental to restructuring operations and preparing for new business
activities. Such charges are expected to be substantially completed in 2002.

Also included in operating costs were costs related to the abandonment of the
Company's international projects. The Company had been pursuing certain
international projects as a result of certain strategies initiatives started in
2000. As a result of the recent changes in the social-political environment in
the countries in which the Company was attempting to do business, we have
determined that it was in the best interest of the Company not to continue
proceeding with these international projects. As a result, the Company incurred
a non-cash charge of approximately $350 thousand in the three and six months
ended June 30, 2002 for costs related to the abandoned projects.

As a net result of the above, the Company reported a loss from continuing
operations of $584 thousand and $883 thousand in the three and six months ended
June 30, 2002, respectively, versus a net loss of $662 thousand and $1,251
thousand in the prior year comparable periods.

Discontinued Operations    Prior to the Company's change in business strategy,
the Company had been primarily engaged in the lottery industry. Because the
lottery business was sold on June 1, 2001, the six month period for 2002 does
not include discontinued operations.

<PAGE>

     The results of operations for the three and six months ended June 30, 2001
     are summarized as follows (in thousands):

<TABLE>
<CAPTION>
                                    Six Months Ended      Three Months Ended
                                        June 30                 June 30
                                   ------------------------------------------
<S>                                 <C>                   <C>
    Net sales                           $2,944                  $1,566
                                   ------------------------------------------
    Gross profits                          610                     215
    Operating expenses                     212                     111
                                   ------------------------------------------
    Net income                          $  398                  $  104
                                   ------------------------------------------
</TABLE>

     As a net result of continuing and discontinued operations, the Company
     reported a net loss of approximately $584 thousand and $883 thousand for
     the three and six months ended June 30, 2002, versus net income in the
     prior year three and six months of approximately $2,186 thousand and $1,891
     thousand, respectively.

     Liquidity and Capital Resources    As a result of the proceeds generated by
     the sale of lottery assets, as of June 30, 2002, the Company had working
     capital of approximately $4.1 million and cash and cash equivalents of
     approximately $4.8 million. Management believes the Company has sufficient
     liquidity to fund its existing operations, redeploy and sell its card
     dispensing machines, begin its planned new business activities and provide
     a basis for new business opportunities.

PART II. OTHER INFORMATION

   ITEM 1. LEGAL PROCEEDINGS

     In October of 2001, Loeb & Loeb, LLP, a law firm, instituted arbitration
     proceedings in Los Angeles, California against Global ePoint alleging in
     excess of $200,000 in legal fees and costs were owed in connection with a
     proposed merger transaction. The Company has filed counter-claims against
     Loeb & Loeb in the arbitration proceedings for malpractice and breach of
     contract. The arbitrator was recently selected and hearings are scheduled
     for September 2002. The Company intends to vigorously litigate the matter
     and maintains that Loeb & Loeb's claims are without merit.

     In December 2001, a previous supplier to the Company's lottery division,
     initiated an action against the Company in the State of California Superior
     Court, El Cajon Division, alleging approximately $56,000 in costs for goods
     they contend should have been supplied to the Company. The Company is in
     the process of litigating this matter and contends that the claims put
     forth by the supplier are without merit.

   ITEM 2. CHANGES IN SECURITIES
     (a) None
     (b) None
     (c) None

   ITEM 3. DEFAULTS UPON SENIOR SECURITIES
     None

   ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
     None

   ITEM 5. OTHER INFORMATION
     N/A

   ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
     (a) Exhibits
         N/A
     (b) Reports on Form 8-K
         N/A

<PAGE>

                                   SIGNATURES

In accordance with the requirements of the exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereto duly
authorized.

                                              GLOBAL EPOINT, INC.

Date: August 12, 2002                         /s/ Frederick Sandvick
                                              -----------------------
                                              Chief Executive and
                                              Principal Financial Officer