Rule 4310(c)(2)(B): For continued inclusion on The NASDAQ Capital Market, the issuer shall maintain:
(i) stockholders’ equity of $2,500,000; (ii) market value of listed securities of $35,000,000; or (iii) net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal
years.
Issue: At the time of the Panel’s decision, the company did not meet the minimum stockholders’ equity requirement or its alternatives for continued listing on The NASDAQ Capital Market. The company’s plan included an asset sale, which
would allow it to demonstrate compliance. However, after the sale, the company was not able to publicly announce that the transaction had increased its stockholders’ equity to $2,500,000. The Panel delisted the company’s securities.
Determination: The company was properly delisted because at the time of the Panel’s decision, the company was not able to demonstrate compliance with the minimum stockholders’ equity requirement or its alternatives, and its plan to regain
compliance was not sufficiently definitive. At the time of the Listing Council’s deliberations, the company had been non-compliant for more than twelve months, had still not provided any public filing which demonstrated compliance with the rule, and had not
provided any definitive documentation regarding potential increases of equity which could be accomplished in the short-term and would allow the company to achieve and sustain compliance.
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Rule 4310(c)(4): For continued inclusion, the minimum bid price per share for common stock shall be $1.
Issue: The bid price of the company’s common stock was below $1 for approximately nine months.
Determination: The company was properly delisted for failure to comply with the minimum bid price requirement. At the time of the Listing Council’s deliberations, the company’s bid price was still under $1, and the company had not proffered
a plan to remedy its deficiency.