On March 21 Cumulus received the notification from the NASDAQ that it is not in compliance. Cumulus’ stockholders’ equity, as of December 31, 2016, no longer exceeded the $2,500,000 minimum listing requirement for the NASDAQ. The notice also indicated that the Company did not meet the alternative continued listing standards of either a market value of listed securities of at least $35.0 million, or net income from continuing operations of at least $0.5 million for the most recently completed fiscal year, or two of the three most recently completed fiscal years.
Cumulus has 45 days, or until May 5, 2017, to submit a plan to regain compliance. If a plan is submitted and accepted, the Company may be granted an extension of up to 180 calendar days from the date of the notification letter to evidence compliance.
Cumulus says the decline in the company’s stockholders’ equity, and the company’s net income from continuing operations resulted from the recognition of one-time non-cash impairment charges, related to goodwill, of $605.0 million and $584.9 million during the years ended December 31, 2016 and 2015. And absent either of these impairment charges, the Company would be in compliance with the Rule.
