Heelys, Inc. (NASDAQ: HLYS) today announced that the Company received a
Nasdaq Staff deficiency letter on June 10, 2009 indicating that the
Company no longer complies with the Nasdaq audit committee requirement
as set forth in Listing Rule 5605, which requires a listed company to
have an audit committee of at least three members.
As a result of Richard E. Middlekauff’s resignation from the Board of
Directors on May 27, 2009, the Company’s audit committee presently has
only two members. NASDAQ has requested the Company provide, on or before
November 23, 2009, documentation evidencing compliance with Listing
Rule 5605.
Gary L. Martin, Chairman of the Board of Directors of Heelys, Inc.,
stated “We have initiated a search for a new independent director and we
intend to be fully compliant as soon as possible.”
About Heelys, Inc.
Heelys, Inc. designs, markets and distributes innovative, action
sports-inspired products under the HEELYS® brand targeted to the youth
market. The Company’s primary product, HEELYS-wheeled footwear, is
patented dual purpose footwear that incorporates a stealth, removable
wheel in the heel. HEELYS-wheeled footwear allows the user to seamlessly
transition from walking or running to rolling by shifting weight to the
heel. Users can transform HEELYS-wheeled footwear into street footwear
by removing the wheel. HEELYS-wheeled footwear provides users with a
unique combination of fun and style that differentiates it from other
footwear and wheeled sports products.
Forward Looking Statements
Certain statements in this press release and oral statements made from
time to time by representatives of the Company are “forward-looking
statements” for purposes of the safe harbor provisions of The Private
Securities Litigation Reform Act of 1995, including in particular,
statements regarding our guidance, outlook for future events, financial
performance, customer demand, growth and profitability. In some cases,
you can identify forward-looking statements by terminology such as
“subject to,” “believes,” “anticipates,” “plans,” “expects,” “intends,”
“estimates,” “may,” “will,” “should,” “can,” the negatives thereof,
variations thereon, similar expressions, or discussions of strategy. All
forward-looking statements are based upon management’s current
expectations and various assumptions, but they are inherently uncertain,
and the Company may not realize its expectations and the underlying
assumptions may not prove correct. The Company’s actual results and the
timing of events could differ materially from those described in or
implied by the forward-looking statements as a result of risks and
uncertainties, including, without limitation, the fact that
substantially all of the Company’s net sales are generated by one
product, continued changes in fashion trends and consumer preferences
and general economic conditions, the Company’s intellectual property may
not restrict competing products that infringe on its patents from being
sold, the Company’s dependence on independent manufacturers, the Company
may not be able to successfully introduce new product categories, the
outcome of lawsuits filed against the Company, which could have a
material adverse effect on us, and additional factors which are detailed
in the Company’s filings with the Securities and Exchange Commission,
including the Risk Factors contained in the Company’s Annual Report on
Form 10-K. Investors, potential investors and other readers are urged to
consider these factors carefully in evaluating the forward-looking
statements and are cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements made herein
are only made as of the date of this press release and the Company
undertakes no obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances.
Heelys, Inc.
Lisa K. Peterson/Chief Financial Officer
214-390-1831
