Based on the delay in filing of the Company's Form 10-K, NASDAQ notified the Company on April 5, 2005 that the Company is not in compliance with the NASDAQ listing requirements (Marketplace Rule 4310(c)(14)). In accordance with the notification and NASDAQ Marketplace Rules that outline the standard procedures to obtain a hearing in these circumstances, the Company intends to request, within seven days of the notification, a hearing with the NASDAQ Listing Qualifications Panel for continued listing on the NASDAQ National Market. The Company expects to be granted a hearing within three to four weeks of its request, during which time the Company's common stock will remain listed on the NASDAQ National Market. There can be no assurance the Panel will grant the Company's request for continued listing.
As previously announced, the delay is a result of the Company's ongoing discussions with the Securities and Exchange Commission regarding its accounting for previously issued stock options. The Company expects to restate its audited financial statements for the years ended December 31, 2003 and 2002 included in its 2004 Annual Report on Form 10-K and is evaluating whether it needs to restate its unaudited results for each of the first three quarters of 2004. The Company is also reviewing the impact of such accounting changes on the Company's historical accounting of its deferred tax assets. Inasmuch as the adjustments primarily relate to non-cash items, the resulting restatement will have no material effect on the Company's current cash position or cash flows from operations.
The Company is working expeditiously to resolve the outstanding items and file its 2004 Annual Report on Form 10-K as soon as possible.