And finally, the general statement regarding NASDAQ listing:
Compliance With Nasdaq National Market Listing Requirements. The
trading of the Company's Common Stock on the Nasdaq National Market is
conditioned upon the Company's meeting certain quantitative criteria related to
the market price of the Company's Common Stock, net tangible assets, market
capitalization and certain other quantitative and non-quantitative requirements
established by such stock market. To maintain eligibility for trading on the
Nasdaq National Market, among other requirements, the Company is required to
have net tangible assets in excess of $4,000,000 and maintain a bid price of $1
per share, or to have a market capitalization of $50,000,000 and a minimum bid
price of $5 per share. The Company's failure to meet such requirements could
result in the delisting of the Common Stock from trading on the Nasdaq National
Market. Trading, if any, in the Common Stock, would thereafter likely be
conducted on the Nasdaq SmallCap Market. If, however, the Company did not meet
the requirements of the Nasdaq SmallCap Market, trading of the Common Stock
would be conducted on an electronic bulletin board established for securities
that do not meet the Nasdaq listing requirements or in what is commonly referred
to as the "pink sheets." Delisting may restrict investors' interest in the
Common Stock and materially adversely affect the trading market and prices for
the Common Stock and the Company's ability to issue additional securities or to
secure additional financing. |
