Business Context and Reporting Period
This Form 8-K was filed by REED's, INC. on April 20, 2020. The company is a Delaware corporation with its principal executive offices in Norwalk, CT, and its common stock trades on The NASDAQ Stock Market LLC under the symbol "REED".
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The report focuses exclusively on a regulatory listing status issue.
Material Changes
The material change reported is a deficiency in meeting Nasdaq Listing Rule 5550(b)(2) (the "MVLS Rule"). The company's Market Value of Listed Securities (MVLS) fell below the required minimum of $35 million based on a review of the last 30 consecutive business days.
Outlook, Risks, and Contingencies
- Compliance Period: Nasdaq has granted the company a 180-calendar-day compliance period ending October 19, 2020, to regain compliance.
- Regaining Compliance: The company must achieve an MVLS of $35 million or more for a minimum of ten consecutive business days during the compliance period to receive written confirmation of compliance.
- Delisting Risk: If the company fails to regain compliance by the deadline, its securities will be subject to delisting from the NASDAQ Stock Market.
Investor Verification Checklist
- Verify the current Market Value of Listed Securities (MVLS) to assess progress toward the $35 million threshold.
- Monitor the stock price volatility and trading volume over the next 180 days to determine the likelihood of meeting the 10-day consecutive requirement.
- Review subsequent filings for any updates on the company's plan to restore compliance or potential delisting notifications.