Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing.
On May 14, 2009, Hythiam, Inc. (the "Company") received a Staff Deficiency
Letter from the Nasdaq Stock Market ("Nasdaq") for not maintaining a minimum of
$10 million in stockholders' equity in accordance with Nasdaq Listing
Rule 5450(b)(1)(A). For the period ended March 31, 2009 and as reported in the
Company's quarterly form 10Q filing, the Company's stockholder's equity was
$5,702,000.
Under Nasdaq Rules, the Company has 15 calendar days to submit a plan that
defines how the Company will regain compliance. The Company will respond by
submitting an appropriate plan to Nasdaq within the 15 day deadline. If the plan
is accepted by Nasdaq, the Company will receive an extension of up to 105
calendar days from May 14, 2009, or until August 27, 2009, to establish evidence
of compliance. If the plan is not accepted, the Company will receive written
notice from Nasdaq that the Company's securities will be delisted. Upon receipt
of that notice, the Company may appeal the Nasdaq staff's determination to
delist the Company's securities to a Listing Qualifications Panel.
On May 19, 2009, the Company issued a press release announcing its receipt of
the Nasdaq Staff Deficiency Letter and its plans to respond with a plan of
action. A copy of the Company's press release is attached hereto as Exhibit 99.1
and is incorporated into this Item 3.01 by this reference.
Item 9.01 Financial Statements and Exhibits.
(a) Exhibits.
99.1 Press Release dated May 19, 2009
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