Business Context and Reporting Period
This Form 8-K Current Report was filed by My Size, Inc. on November 19, 2019. The Company, incorporated in Delaware and headquartered in Israel, reports on significant corporate actions regarding its listing status on the Nasdaq Capital Market under the trading symbol MYSZ.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, or debt. The only financial metric disclosed is a regulatory threshold: the Company was non-compliant with the Nasdaq minimum stockholders' equity requirement of $2.5 million as of September 30, 2019.
Material Changes
- Reverse Stock Split: The Company implemented a 1-for-15 reverse stock split of its outstanding common shares, effective at the open of business on November 19, 2019. This action was taken to satisfy the minimum $1.00 bid price requirement and strengthen the investor base.
- Delisting Notice: On November 19, 2019, the Company received formal notice from Nasdaq regarding non-compliance with the Stockholders' Equity Rule (minimum $2.5 million equity) as of September 30, 2019, which could serve as an additional basis for delisting.
Outlook, Risks, and Management Commentary
Compliance Plans:
- Bid Price Rule: The Company previously received a deadline of January 20, 2020, to comply with the minimum $1.00 bid price requirement. The reverse split is intended to address this.
- Stockholders' Equity Rule: The Company plans to timely present a plan to regain compliance with the $2.5 million stockholders' equity requirement to the Nasdaq Hearings Panel.
Risks: The primary risk identified is the potential delisting of the Company's common stock from the Nasdaq Capital Market due to failure to meet the Stockholders' Equity Rule or the Bid Price Rule.
Investor Verification Checklist
- Verify the post-split share count and current trading price to confirm compliance with the $1.00 bid price requirement.
- Review the Company's most recent financial statements to assess the current stockholders' equity balance against the $2.5 million Nasdaq threshold.
- Monitor upcoming Nasdaq Hearings Panel decisions regarding the Company's plan to regain compliance with the Stockholders' Equity Rule.
- Confirm the effective date and ratio of the 1-for-15 reverse stock split in brokerage accounts.