Sonic Foundry had a 90-calendar grace period to raise the share price, but was unable to do so.
The company has requested a hearing before a Nasdaq Listing Qualifications Panel, appealing the decision. A hearing date has yet to be determined, but the company will continue to trade as usual until such a hearing takes place and a final determination is made. If the appeal is rejected, Sonic Foundry can transfer its listing to the Nasdaq SmallCap Market, try a reverse stock split, or both.
The news falls just a few weeks after Sonic Foundry's auditors, Ernst & Young LLP, raised doubts about the company's ability to continue as a going concern.
On December 30, Ernst & Young cited the company's working capital deficiency, and raised "substantial doubt" about the company's ability to continue as a going concern. The auditor said Sonic Foundry's convertible debt is a current obligation and the company does not have long-term credit availability.