Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On June 29, 2012, NASDAQ notified the Escalon Medical Corp. (the "Company") that the bid price of its listed security had closed at less than $1 per share over the previous 30 consecutive business days, and, as a result, did not comply with Listing Rule 5550(a)(2) (the "Rule"). In accordance with Listing Rule 5810(c)(3)(A), the Company was provided 180 calendar days, or until December 26, 2012, to regain compliance with the Rule.

Compliance required the maintaining of a minimum bid price of $1.00 per share for ten consecutive days. The Company has not regained compliance with the Rule.

Accordingly, NASDAQ has determined that the Company's securities will be scheduled for delisting from The Nasdaq Capital Market and will be suspended at the opening of business on January 7, 2013, and a Form 25-NSE will be filed with the Securities and Exchange Commission (the "SEC"), which will remove the Company's securities from listing and registration on The Nasdaq Stock Market.

The Company intends to request an appeal of this determination. The hearing request will stay the suspension of the Company's securities and the filing of the Form 25-NSE pending the panel's decision on the Appeal. However, there can be no assurance that the panel will grant the Company's request for continued listing without the Company meeting the minimum bid price of $1.00 per share for ten consecutive trading days.

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