China Electric Motor (CELM)
Company Profile: China Electric Motor sells micro motor products used in consumer electronics, cars, power tools, toys and household appliances.Current Share Price: $2.91 (March 30) Listing Violation: Delinquent. China Electric Motor failed to file its annual 10-K report with the SEC in a timely manner. Received Nasdaq Notice: April 6 Management's Expected Action: On March 31, China Electric Motor delayed the filing of its annual report, citing "possible discrepancies concerning the company's banking statements that were very recently identified by the company's auditors." The company's auditor, MaloneBailey, recently fired more than a third of its Chinese-company clients after allegedly discovering evidence of forged bank documents during the audits of most of those dismissed clients. China Electric Motor said it had until April 21 to submit a plan to Nasdaq to secure an extension until Sept. 27 to regain compliance. The company said it is working with advisors to resolve issues discovered during the audit. At the same time, China Electric Motor also disclosed that the SEC has initiated a formal, nonpublic investigation into whether the company violated federal securities laws. China Electric Motor said it is committed to cooperating with the SEC.
Celsion (CLSN) Company Profile: Celsion is an oncology drug-development company. Current Share Price: $2.64 (April 26) Listing Violation: Market value/equity/net income. Celsion does not comply with the minimum $35 million market value of listed securities requirement for continued listing on the Nasdaq. Received Nasdaq Notice: April 6 Management's Expected Action: Celsion has until Oct. 3 to regain compliance with the listing requirement, which means the company's market value of listed securities must close at $35 million or more for a minimum of 10 consecutive trading days. Celsion said it is evaluating all possible means by which the company may regain sustained compliance with the rule.