6 million of deposits and stockholder's equity
The delisting application will be made as a result of the Company's inability to comply, at June 30, 2004, with the AMEX's continued listing standards set forth in Sections 1003 (a) (ii) - (iv) of the AMEX Company Guide due to (i) its stockholder's equity
being less than $4 million and having sustained losses from continuing operations and/or net losses in three of its most recent fiscal years, (ii) its stockholder's equity
being less than $6 million while having sustained losses in its five most recent fiscal years, and (iii) the existence of circumstances that make it questionable to the AMEX as to whether the Company will be able to continue its current operations and meet ongoing obligations.
At March 31, 2003, the company had a working capital deficiency of $2,930,000 and stockholder's equity
of $1,890,000 compared to a working capital deficiency of $3,720,000 and stockholder's equity
of $1,320,000 at December 31, 2002.
A consequence of the Company's share repurchase, undertaken over a year earlier when the Net Tangible Assets listing standard was in place, is that the Company's stockholders' equity fell short of the Nasdaq National Market's new Stockholder's Equity
5 million stockholder's equity
requirement for continued listing.