The notification that Atari is subject to delisting from the Nasdaq Global Market came as a result of the company's failure to file its financial report for the past fiscal year, which left it in violation of Marketplace Rule 4310(c)14. The required report, a Form 10-K, has not been filed because Atari is still determining what accounting entries need to be made "with respect to certain severance matters."
The Nasdaq Staff Determination that the company has failed to comply with regulations will not result in the immediate delisting of Atari's common stock, as the company has requested a hearing with the Nasdaq Listing Qualifications Panel. The delisting process will be delayed pending the hearing, during which time Atari intends to file the Form 10-K, bringing it back into compliance with regulations.
This is not the first time Atari has faced delisting from the Nasdaq. In March of 2006, the company received notice of pending delisting if it failed to get its share price above $1.00 for at least 10 consecutive business days. Around the time of that notification, on March 9, the company's shares were trading at $0.77.