Dare Bioscience, Inc. - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Dare Bioscience, Inc. (DARE) on November 22, 2019, regarding events occurring on November 18, 2019. The company is an emerging growth company incorporated in Delaware with its principal executive offices in San Diego, California. Its common stock trades on the Nasdaq Capital Market.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, or cash flow data. However, it discloses the following specific metric:
- Stockholders' Equity: Less than $2.5 million as of September 30, 2019.
The filing text does not provide clear values for debt, liquidity, or operating margins.
Material Changes and Listing Deficiencies
The company faces two distinct listing deficiencies with Nasdaq:
- Stockholders' Equity Deficiency: On November 18, 2019, Nasdaq notified Dare that it failed to meet the minimum $2.5 million stockholders' equity requirement under Listing Rule 5550(b)(1) as of September 30, 2019. The company has 45 days (until January 2, 2020) to submit a plan to regain compliance. If accepted, an extension of up to 180 days (through May 18, 2020) may be granted.
- Bid Price Deficiency: As previously reported on June 27, 2019, the company does not meet the minimum $1.00 per share bid price requirement. The grace period to regain compliance expires on December 18, 2019. Failure to maintain a closing bid price of at least $1.00 for 10 consecutive trading days by this date could result in delisting.
Outlook, Risks, and Management Commentary
Management intends to timely submit a plan to Nasdaq to address the equity deficiency and requests a hearing before the Nasdaq Hearings Panel if delisting actions are initiated regarding the bid price. The company notes that a hearing request would stay any delisting action pending the conclusion of the process. There is no assurance that the plan will be accepted or that the company will regain compliance within any granted extension periods.
Key Facts for Investor Verification
- Verify the status of the plan submission to Nasdaq regarding the stockholders' equity deficiency by the January 2, 2020 deadline.
- Monitor the daily closing bid price of DARE stock to determine if the $1.00 threshold is met for 10 consecutive trading days before December 18, 2019.
- Review subsequent filings for updates on the acceptance of the compliance plan or the scheduling of a Nasdaq Hearings Panel.
- Assess the company's capitalization strategy to address the equity shortfall below $2.5 million.