Heelys, Inc. received a Nasdaq Staff deficiency letter on January 17, 2008 indicating that the company no longer complies with the Nasdaq audit committee requirement as set forth in Marketplace Rule 4350, which requires a listed company to have an audit committee of at least three members.
As a result of James Kindleys resignation from the Board of Directors on December 17, 2007, the company's audit committee presently has only two members. NASDAQ has requested the Company provide, on or before June 16, 2008, documentation evidencing compliance with Marketplace Rule 4350.
Mike Staffaroni, president & CEO, stated “We have initiated a search for a new independent director and we intend to be fully compliant as soon as possible.”
