North American Scientific (Chatsworth, California) reported receiving a notice from Nasdaq dated Sept. 22, indicating that the company does not comply with the minimum $2.5 million stockholders' equity requirement for continued listing on the Nasdaq Capital Market as set forth under Marketplace Rule 4310(c)(3).
In addition, the company does not comply with the minimum $35 million market value of listed securities or $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years for continued listing.
The Nasdaq rules permit an issuer that is deficient in stockholders' equity to present a plan of compliance to staff. However, no such plan is permitted if an issuer again fails to comply with stockholders' equity requirement within one year of regaining compliance with that requirement pursuant to an exception by the Nasdaq Listing Qualifications Panel. The company received such Compliance Letter from the Panel on Feb. 6 when it transferred its listing from Nasdaq Global Market to the Nasdaq Capital Market.