Business Context and Reporting Period
This Form 8-K is filed by Muscle Maker, Inc. (trading symbol: GRIL), a Nevada corporation, with a report date of January 31, 2023. The filing addresses a regulatory notice regarding the company's continued listing status on The Nasdaq Stock Market.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on compliance with listing standards rather than financial performance metrics.
Material Changes
The primary material event is the receipt of a delisting notice from Nasdaq due to non-compliance with the Minimum Bid Price Requirement (Rule 5550(a)(2)). As of January 31, 2023, the company's stock failed to maintain a minimum bid price of $1.00 per share. This follows a previous non-compliance notice issued on February 1, 2022, and a subsequent extension granted on August 2, 2022, which expired on January 30, 2023.
Outlook, Risks, and Management Commentary
- Appeal Process: The company intends to request a hearing before a Nasdaq Hearings Panel by 4:00 p.m. Eastern Time on February 7, 2023.
- Stay of Action: Filing the hearing request will stay further delisting action pending the hearing outcome and any potential extension period.
- Risks: Management explicitly states there is no assurance that the Panel will determine to continue the listing or that the company will timely evidence compliance with any extension terms granted.
Investor Verification Checklist
- Verify the current trading price of GRIL to assess the gap from the $1.00 minimum bid requirement.
- Monitor the outcome of the Nasdaq Hearings Panel scheduled after February 7, 2023.
- Check for subsequent filings regarding the company's plan to regain compliance or potential transfer to an alternative exchange.
- Review the company's historical stock price performance over the 30-day periods preceding the initial and extended compliance deadlines.