AREA FIRM FACING NASDAQ DELISTING; CINEMA RIDE TOLD TO MEET STANDARDS.

Byline: Deborah Adamson Daily News Staff Writer

Nasdaq officials are threatening to delist a Studio City maker of 3-D motion simulation rides from the small cap market within 90 days unless the company takes steps to meet minimum standards.

The warning came shortly after Cinema Ride Inc.'s warrants were delisted by Nasdaq because no active market makers were registered to trade them.

Cinema Ride said it is taking several actions, including a possible reverse stock split, to stay listed on the Nasdaq SmallCap Market.

``I'm confident that we will be able to maintain our Nasdaq listing,'' CEO Mitch Francis said Monday. ``We're working with a new investment banking firm to raise additional capital to help us in growing the company, which should clearly be reflected in the stock value. At least, we hope so.''

Nasdaq requires the market value of publicly-traded shares to be at least $1 million. Cinema Ride's market value was less than $800,000 on Monday, when its stock price closed at 16 cents.

The Valley firm also needs to increase its stock price to at least $1, a new requirement imposed by Nasdaq in August.

Separately, the company, whose rides are in such tourist havens as the Forum Shops at Caesars Palace in Las Vegas, reported a net loss of $125,892 (2 cents a share) for the third quarter ended Sept. 30, compared to a net income of $2,281 (less than a cent) a year ago.

However, the company's operations made a profit before depreciation and amortization, Francis said.

While revenues rose 20 percent to $1.2 million, expenses outpaced it with a 31 percent increase.

The company had higher operating costs because its New York City facility was open for the full third quarter of 1997 and only partially in the like period a year ago.

But the facility in New York's Times Square will be closed because the landlord decided to demolish the building. Cinema Ride is scouting for another New York City site, Francis said.

The company also disclosed that revenues at the Las Vegas location declined by 17 percent. Management believes that construction of the new wing at Caesars Palace and the opening of other casinos lowered attendance.

Cinema Ride makes 3-D motion simulation rides where films are projected from laser discs onto screens inside 15-seat capsules. The audience dons 3-D glasses as the capsule moves according to the adventure they are watching.