Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard? Transfer of Listing.
On August 20, 2020, Nasdaq notified us that we no longer complied with Nasdaq
Listing Rule 5550(b)(1) because our reported stockholder's equity of $2,444,048
as of June 30, 2020 was below the minimum stockholder's equity of $2,500,000 set
forth in the Nasdaq Listing Rule by $55,952. Under the NASDAQ rules, we have 45
calendar days to submit to Nasdaq a plan to regain compliance. If Nasdaq accepts
the plan, it can grant an extension of up to 180 calendar days from August 20,
2020 to evidence compliance.
We fully plan to regain compliance with the listing rule by taking actions to
increase our stockholder's equity above the minimum amount required by the rule.
These actions include, but are not limited to, obtaining forgiveness of our
Payroll Protection Program (PPP) loan of approximately $1,400,000, downsizing
our sales and marketing force to reduce expenses by approximately $2,000,000 per
year, and continued growth of revenue and gross profits in accordance with our
operating strategy. Moreover, we may also consider additional actions including
strategic acquisitions, strategic asset or brand dispositions, or equity capital
infusions, as may be deemed necessary or reasonable and in the best interest of
the stockholders. We will submit a definitive plan to regain compliance to
Nasdaq on or before October 9, 2020, and we will provide an update to our
stockholders about our plan on our conference call discussing our third quarter
2020 financial results.
© Edgar Online, source Glimpses