Things are looking bad for Atari. The company has reported a loss of US$ 11.9 million in its delayed Q1 financial report. Atari's losses have gone up more than 50 percent in the year-earlier period, when the company reported a net loss of US$ 7.3 million.

In July, NASDAQ also informed Atari that its stock was subject to delisting due to non-compliance with its periodic reporting obligations. Atari anticipates that this week's filing of its Form Q-10 will bring the company's records with NASDAQ current.

The company is still in dire straits, though. FUNimation has recently served the company with a notice to terminate its Dragon Ball Z license. Last month, Infogrames CEO Patrick Leleu gave five members of Atari's board of directors the boot as part of the recovery plan for Atari.