Business Context and Reporting Period
This Form 8-K is a current report filed by Daré Bioscience, Inc. on December 26, 2019, regarding events occurring on December 19, 2019. The company is an emerging growth company incorporated in Delaware with its principal executive offices in San Diego, California. Its common stock trades on the Nasdaq Capital Market under the symbol "DARE".
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, or margin data for the reporting period. However, it references a prior financial condition reported in a November 18, 2019 filing, noting that the company had less than $2.5 million in stockholders' equity as of September 30, 2019.
Material Changes and Listing Status
- Minimum Bid Price Non-Compliance: On December 19, 2019, Nasdaq notified the company that it failed to regain compliance with the Minimum Bid Price Rule (Rule 5550(a)(2)) by the December 18, 2019 deadline.
- Stockholders' Equity Non-Compliance: On December 26, 2019, Nasdaq confirmed the company also failed to regain compliance with the Stockholders' Equity Rule (Rule 5550(b)), citing the equity balance below $2.5 million.
- Delisting Notice: Without an appeal, the company's securities were scheduled to be delisted and suspended on December 30, 2019.
- Appeal Filed: The company submitted an appeal to Nasdaq on December 26, 2019. This action stays the delisting and suspension pending a decision by the Nasdaq Hearings Panel.
Outlook, Risks, and Management Commentary
Management intends to present its plans to regain compliance with both listing rules to the Nasdaq Hearings Panel. The filing explicitly states there is no assurance that the Panel will grant an extension period to regain compliance, nor that the company will be able to demonstrate compliance within any granted extension. The Panel typically issues a decision within 30 days after the hearing.
Investor Verification Checklist
- Verify the outcome of the Nasdaq Hearings Panel decision regarding the appeal.
- Confirm whether the company has secured financing or executed a reverse stock split to address the stockholders' equity deficit.
- Monitor the stock's bid price to ensure it meets the Minimum Bid Price Rule requirements.
- Check for any subsequent filings regarding the suspension or delisting of the stock if the appeal is denied.