The Nasdaq said on Friday that it halted trading in
Applied Digital Solutions
( ADSX) while it waits on "additional information requested" from the technology security company.
The news comes a day after
, a telemedicine company of which Applied Digital Solutions is the majority shareholder, said that its auditor had resigned over conflicts with Applied Digital's management.
Applied Digital refused to accept auditor Grant Thornton's decision that the company must recognize a one-time noncash expense item of about $14 million relating to the merger of Digital Angel with Medical Advisory Systems. ADS said it would request an interpretation of the issue from the
Securities and Exchange Commission
, prompting Grant Thornton's immediate resignation.
In a press release, the company said, "No matter how the issue is ultimately resolved, it will have no effect on our operations or our ability to continue with our business plan."
The Nasdaq halted trading on Applied Digital at $1.07 until the company complies fully with the exchange's information request.