1. (1) Registration of an issuer may not be permitted if the financial statements demonstrate the issuer to have an unsound financial condition.

2. (2) Such unsound financial condition is determined by:

   1. (a) An accumulated deficit;
   2. (b) Negative shareholders equity;
   3. (c) An inability to satisfy current obligations as they become due;
   4. (d) Negative cash flow; or
   5. (e) Financial statements that include a footnote or explanatory paragraph in the independent auditor’s report regarding the issuer’s ability to continue as a going concern.

Rulemaking Authority 517.03(1) FS. Law Implemented 517.081(3), (7) FS. History–New 10-26-97, Formerly 3E-700.026, Amended 9-22-14.