Nautilus 2010 Annual Report Download - page 15

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Table of Contents
additional needed capital, we would be forced to sharply curtail our operations or pursue other strategic options.
We may become subject to delisting proceedings, which could have an adverse impact on the liquidity and market price of our common
stock and could negatively impact our supplier and customer relationships.
Our common stock currently is traded on the New York Stock Exchange (the “NYSE”). The NYSE's continued listing standards require that
listed companies maintain either an average global market capitalization of not less than $50 million over a consecutive 30 trading-
day period, or
total stockholders' equity of not less than $50 million. On September 23, 2010, we were notified by the NYSE that we were not in compliance
with this requirement for continued listing. On December 3, 2010, we were notified that the NYSE had accepted our plan demonstrating our
ability to regain compliance with the continued listing standards within an 18-month period. As of February 28, 2011, our market capitalization
was approximately $82 million, which exceeds the NYSE continued listing requirement. If we are unable to maintain compliance with the NYSE
continued listing standards within the specified period, our common stock could be delisted by the NYSE. Delisting could negatively impact us
by, among other factors, reducing the volume of trading in our common stock and the number of investors willing or able to hold or acquire our
common stock, damaging our reputation and standing with suppliers, lenders, customers and sources of consumer financing programs.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
Following is a summary of our principal properties as of December 31, 2010 :
Each of our principal properties is used by both our direct segment and our retail segment. Our properties generally are well-maintained,
adequate and suitable for their intended purposes, and we believe our existing properties will meet our operational needs for the foreseeable
future. If we require additional warehouse or office space in the future, we believe we will be able to obtain such space on commercially
reasonable terms.
Item 3. Legal Proceedings
We are party to various legal proceedings and claims arising from normal business activities. Based on the facts currently available, we do not
believe that the disposition of matters that are pending or asserted, individually or in the aggregate, will have a material adverse effect on our
future financial results. However, an adverse judgment by a court, administrative or regulatory agency, arbitrator or a settlement could adversely
impact our results of operations, financial position and cash flows.
Item 4. [Reserved]
13
Location
Primary Function(s)
Owned or
Leased
Washington
Corporate headquarters and customer call center
Leased
Oregon
Warehouse and distribution
Leased
Canada
Warehouse, distribution and showroom
Leased
China
Quality assurance and supplier relationships
Leased