Business Context and Reporting Period
This Form 8-K was filed by Volcon, Inc. on December 26, 2023, reporting an event occurring on December 19, 2023. The provided metadata identifies Empery Digital Inc., but the filing itself identifies the registrant as Volcon, Inc. (Nasdaq: VLCN).
Material Event
Volcon received a deficiency letter from Nasdaq’s Listing Qualifications Department because its common stock had a closing bid price below $1.00 for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).
- The deficiency had no immediate effect on the Nasdaq Capital Market listing.
- The company received 180 calendar days, through June 17, 2024, to regain compliance.
- Compliance can generally be regained if the closing bid price reaches at least $1.00 for a minimum of 10 consecutive business days.
- If necessary, the company may consider a reverse stock split.
Financial Metrics, Liquidity, and Capital Structure
The filing does not provide revenue, profit, cash flow, margin, debt, liquidity, or other financial performance metrics.
Outlook, Risks, and Contingencies
If the company fails to regain compliance by June 17, 2024, it may qualify for an additional 180-day compliance period if it satisfies Nasdaq’s other applicable initial listing standards and provides written notice of its intent to cure the deficiency. A reverse stock split may be used during a second compliance period.
If the company is not eligible for an additional period and does not regain compliance, Nasdaq may issue a delisting determination. The company would have the right to appeal to the Nasdaq Hearings Panel, but the filing states that there can be no assurance that an appeal would succeed.
Investor Verification Items
- Confirm the correct registrant, as the filing names Volcon, Inc., while the request metadata names Empery Digital Inc.
- Monitor whether the stock regained a closing bid price of at least $1.00 for 10 consecutive business days before June 17, 2024.
- Verify whether Nasdaq granted an additional compliance period or issued a delisting determination.
- Check whether the company implemented a reverse stock split or other capital-structure action.