The warning comes as a result of the company's stock closing below $1.00 per share for the last 30 consecutive business days. The $1.00 requirement is set out in the NASDAQ rules.
On December 6 Cyanotech's shares closed at $0.69. Their 52-week high is $1.70, and low $0.61.
For FY2004 Cyanotech reported a 23 percent drop in income from operations to $729,000. Net income was $486,000, or $0.02 per diluted share.
In the most recent quarter ended September 30 it reported a net loss of $321,000 or ($0.02) per diluted share. The company attributed this to fluctuating customer orders.
If the company fails to meet the requirement by the deadline, Nasdaq staff will review whether the company meets its initial listing criteria. If it does, a further 180 days will be granted to meet the 10 day-$1.00 requirement.
Hawaiian producer of nutritional ingredients derived from microalgae was delisted from the national market and placed on the SmallCap market in 2002. It has been under threat of delisting from the SmallCap market once before, in 2003, but was able to boost its stock price in time.
If delisting takes place this time, the company will most likely trade on the OCB (Over the Counter Bulletin) board, which is not so highly regarded.
Cyanotech is currently seeking a new financial officer after the resignation of CFO Jeffrey Sakamoto in October.