If a company fails to meet the continued listing standards of the NASDAQ, the exchange will send a deficiency notice to the company. Upon receiving this notice, the company generally has 180 calendar days to regain compliance, although the specifics can vary depending on the exact nature of the deficiency.

For example, if a company's bid price closes below $1.00 per share for 30 consecutive business days, NASDAQ will send a deficiency notice. The company then has an initial period of 180 calendar days to regain compliance, which can be achieved by having a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days during the 180-day compliance period.

If the company does not regain compliance in the initial 180-day period, it may be eligible for an additional 180-day compliance period if it meets certain requirements. These requirements typically include meeting the continued listing requirement for market value of publicly held shares and all other initial listing standards for the NASDAQ Capital Market, and providing NASDAQ with a written notice of its intention to cure the deficiency during the second 180-day compliance period.

If the company is unable to regain compliance during the prescribed compliance period(s), NASDAQ will provide notice that the company's securities will be delisted. The company can appeal this determination to a hearings panel.

Most microcaps can cure the $1 minimum bid price through a reverse split. The shareholder equity requirement can be cured through subsequent equity offerings or an accounting transaction that reduces liabilities such that the shareholder's equity increases above the $2.5m minimum.