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  Listing Council Decision 2004-2
Identification Number 658
Rule 4310(c)(2)(B): For continued inclusion, the issuer shall maintain: (i) stockholders' equity of $2.5 million; (ii) market value of listed securities of $35 million; 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: The company was not able to demonstrate net income of $500,000 in its most recently completed fiscal year or in two of the last three most recently completed fiscal years, or comply with any of the other alternatives in the Rule. The company was able to demonstrate net income above $500,000 for its first quarter of the current year. As such, the Panel issued an exception that allowed the company to remain listed.

Determination: The Listing Council affirmed the Panel’s decision on other grounds. During the pendency of the Listing Council’s review, the company demonstrated compliance with the $35,000,000 market value of listed securities alternative of the Rule. As such, the company was allowed to remain listed. The Listing Council overturned the Panel’s grant of an exception from the net income test based on the results from the first quarter of the company’s current fiscal year. The application of the net income alternative in the Rule requires a historical demonstration of net income of $500,000, in either the most recently completed fiscal year or in two of the last three most recent fiscal years. Companies cannot comply with the net income alternative of the Rule based on the financial results of a partially completed fiscal year.

Publication Date*: 7/31/2012 Mailto Link Identification Number: 658
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