Diffusion Pharmaceuticals Inc. received a noncompliance notice from the Nasdaq Stock Market LLC on May 23, as the company's market value of listed securities failed to meet the minimum $35 million for the previous 30 consecutive business days.

Diffusion also failed to maintain a minimum of $2.5 million in stockholders' equity as alternative requirement for continued listing on the exchange because of its failure to generate net income from continuing operations during its last fiscal year or during two of its last three fiscal years.

The company has a period of 180 calendar days, or until Nov. 20, to regain compliance with the minimum market value of listed securities requirement or the minimum stockholders' equity requirement.