Business Context and Reporting Period
This Form 8-K is a current report filed by EyeGate Pharmaceuticals, Inc. (noted as Kiora Pharmaceuticals Inc in metadata) on March 20, 2018. The registrant is a Delaware corporation and an emerging growth company. The report addresses regulatory compliance issues with The NASDAQ Stock Market LLC regarding continued listing standards.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, or margin figures for the reporting period. However, it references historical financial deficiencies cited by NASDAQ in a prior November 2017 notice:
- Stockholders' Equity: Below the required minimum of $2.5 million.
- Market Value of Listed Securities (MVLS): Below the required minimum of $35 million for the previous 30 consecutive business days.
- Net Income: Failed to meet the requirement of at least $500,000 from continuing operations in the latest fiscal year or two of the last three fiscal years.
- Stock Price: Closing bid price was below $1.00 per share for the last 30 consecutive business days as of March 20, 2018.
Material Changes and Listing Status
The Company received a Notice Letter from NASDAQ on March 20, 2018, indicating non-compliance with Listing Rule 5550(a)(2) due to the minimum bid price requirement. This notice has no immediate effect on trading but initiates a compliance period. Additionally, the Company is currently in a compliance period for stockholders' equity and MVLS deficiencies that expires on May 21, 2018.
Outlook, Risks, and Management Commentary
Compliance Deadlines:
- Minimum Bid Price: The Company has an Initial Compliance Period of 180 calendar days, ending September 17, 2018, to regain compliance. Compliance requires a closing bid price of at least $1.00 for 10 consecutive business days.
- Equity/MVLS: The Company has until May 21, 2018, to regain compliance with stockholders' equity or MVLS standards.
Risks and Contingencies:
- If the Company fails to regain compliance within the allotted periods (including potential extensions), NASDAQ may issue a delisting notice.
- The Company may appeal a delisting determination to a hearings panel.
- Management states it will consider available options to resolve deficiencies and regain compliance with all applicable listing rules.
Investor Verification Checklist
- Verify the current closing bid price of EyeGate Pharmaceuticals common stock to assess progress toward the $1.00 threshold.
- Confirm the Company's latest stockholders' equity and Market Value of Listed Securities (MVLS) to determine status regarding the May 21, 2018 deadline.
- Monitor for any subsequent filings regarding a plan to cure deficiencies or an appeal of a potential delisting determination.
- Review the Company's capitalization table to understand the impact of potential reverse stock splits or other corporate actions often used to address bid price deficiencies.