Vaughan Foods Inc. announced consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported a net loss of $218,000, or $0.05 per share compared to a net loss of $1.2 million or $0.25 per share in the comparable quarter of 2008. Net sales were $24.1 million compared with $23.9 million a year ago. Operating loss was $0.08 million compared with $1.6 million a year ago. Loss before income taxes was $0.4 million compared with loss before income taxes of $1.9 million a year ago. For the nine months, the company recorded a net loss of $466,000 or $0.10 per share compared to a net loss of $2.1 million or $0.46 per share in the comparable nine month period of 2008. Net sales were $73.4 million compared with $69.1 million a year ago. Operating income was $0.03 million compared with operating loss of $2.7 million a year ago. Loss before income taxes was $0.8 million compared with loss before income taxes of $3.3 million a year ago. Net cash provided by operating activities was $1.5 million compared with $0.4 million a year ago. The company reported purchases of property and equipment of $0.4 million compared with $2.5 million a year ago.

Vaughan Foods Inc., Q3 2009 Earnings Call, Nov-06-2009

Vaughan Foods Inc. announced on September 18, 2009 that it has received a notification from NASDAQ Listing Qualifications that its common stock has failed to maintain the minimum bid price of $1.00 per share over a period of 30 consecutive trading days, as required by NASDAQ's Marketplace Rules. NASDAQ has provided Vaughan with a grace period of 180 calendar days, or until March 15, 2010, to regain compliance with this requirement or be delisted from trading on The NASDAQ Capital Market. To regain compliance, Vaughan's common stock must achieve a minimum closing bid price of at least US $1.00 for at least ten consecutive trading days unless the NASDAQ staff requires the stock to satisfy this requirement for a longer period (which would generally not be more than 20 consecutive trading days). Vaughan intends to monitor the bid price for its common stock between now and March 15, 2010. If the stock does not trade at a level that is likely to regain compliance, Vaughan's Board of Directors will consider other options available to the Company to achieve compliance. If Vaughan is unable to come into compliance with the bid price requirement by March 15, 2010, NASDAQ Listing Qualifications will provide written notification that Vaughan's common stock will be delisted, which the Company may appeal to a Listing Qualifications Panel. Alternatively, the Company may be eligible for an additional grace period if it meets the initial listing standards, with the exception of bid price, for The NASDAQ Capital Market. If it meets the initial listing criteria, Staff will notify the Company that it has been granted an additional 180 calendar day compliance period.