Staffing 360 Solutions Inc. (NASD: STAF), a staffing provider with operations in the US and UK, is no longer in compliance with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market, the company reported in an April 9 filing with the US Securities and Exchange Commission.

Nasdaq requires listed companies to maintain stockholders’ equity of at least $2.5 million. However, Staffing 360 in its 2017 annual report listed a deficiency in stockholders’ equity of more than $6.78 million. Further, as of April 3, the company did not meet the alternative compliance standards of either a market value of listed securities of at least $35 million, or net income from continuing operations of $500,000 in its last completed fiscal year or in two of the last three fiscal years.

Staffing 360 has until May 18 to submit a plan to regain compliance with the minimum stockholders’ equity standard. If the company’s plan to regain compliance is accepted, Nasdaq may grant an extension of up to 180 calendar days from the date of the notification letter to regain compliance. The company’s common stock could become subject to delisting if its plan to regain compliance is not accepted, or if it is accepted and the company does not regain compliance in the timeframe required by Nasdaq.

Staffing 360 reported it is currently evaluating options to regain compliance and intends to submit a plan to regain compliance with Nasdaq’s minimum stockholders’ equity standard.