Majesco's American arm faces potential delisting from the Nasdaq stock exchange if it fails to improve its share price.
The publisher has been given 180 days to bring its share price above $1 and maintain that for 10 consecutive days of trading. It will then be able to appeal the Nasdaq Listings Qualifications Panel, or request a further 180 days.
The warning was issued after Majesco's share price fell below $1 for 30 consecutive days. It also follows disappointing Q4 results, in which the publisher reported a $7.2 million loss.
Majesco was previously threatened with delisting in 2007, after it failed to comply with a $35 million market cap requirement.