Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing.
On January 7, 2020, Sigma Labs, Inc. ("Sigma" or the "Company") received a
letter from Nasdaq notifying the Company that we are no longer in compliance
with the minimum stockholders' equity requirement for continued listing on the
Nasdaq Capital Market. Nasdaq Listing Rule 5550(b)(1) requires companies listed
on the Nasdaq Capital Market to maintain stockholders' equity of at least
$2,500,000. In the Company's Quarterly Report on Form 10-Q for the quarterly
period ended September 30, 2019, the Company reported stockholders' equity of
$2,104,035, which is below the minimum stockholders' equity required for
continued listing pursuant to Nasdaq Listing Rule 5550(b)(1). As of the date of
this Report, the Company does not meet the alternative Nasdaq continued listing
standards relating to the market value of listed securities or net income from
continuing operations.
In accordance with Nasdaq Listing Rules and Nasdaq's determination, Sigma has
until February 4, 2020 to submit to Nasdaq a plan to regain compliance. If our
plan is accepted, Nasdaq may grant an extension until July 8, 2020 to evidence
compliance.
The Company has developed a strategy that it believes will cause the Company to
regain compliance, and will submit its plan to Nasdaq to regain compliance with
the minimum stockholders' equity requirement. However, there can be no assurance
that the Company's plan will be accepted or that if it is, the Company will be
able to regain compliance. If the Company's plan to regain compliance is not
accepted, or if it is and the Company does not regain compliance as of July 8,
2020, or if the Company fails to satisfy another Nasdaq requirement for
continued listing, Nasdaq could provide notice that the Company's common stock
will become subject to delisting. In such event, Nasdaq rules would permit the
Company to appeal the decision to reject the Company's proposed compliance plan
or any delisting determination to a Nasdaq Hearings Panel.
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