Business Context and Reporting Period
This Form 8-K was filed by CHF Solutions, Inc. (trading symbol: CHFS) on December 17, 2019. The registrant is incorporated in Delaware and its common stock is listed on the Nasdaq Capital Market. The report addresses a regulatory notice received from the Nasdaq Stock Market regarding compliance with listing standards.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The only financial metric disclosed is the stock price performance, noting that the closing bid price of the common stock fell below $1.00 per share for 30 consecutive business days prior to the notice date.
Material Changes
The material event reported is the failure to satisfy the Nasdaq Minimum Bid Price Rule (Rule 5550(a)(2)). Consequently, the company has been notified of its non-compliance status as of December 17, 2019.
Outlook, Risks, and Contingencies
- Compliance Period: The company has been granted 180 calendar days, until June 15, 2020, to regain compliance.
- Remediation Requirement: To regain compliance, the closing bid price must be $1.00 per share or more for a minimum of 10 consecutive business days before the deadline.
- Delisting Risk: If compliance is not achieved by June 15, 2020, and the company is not eligible for a second 180-day period, the stock will be subject to delisting.
- Second Compliance Period: Eligibility for an additional 180-day period requires meeting the market value of publicly held shares requirement, satisfying other initial listing standards (except bid price), and providing written notice of intent to cure the deficiency, potentially via a reverse stock split.
- Appeal Rights: The company retains the right to appeal a delisting determination if it fails to regain compliance.
Investor Verification Checklist
- Verify the current closing bid price of CHFS common stock to assess progress toward the $1.00 threshold.
- Monitor the company's announcement regarding a potential reverse stock split to cure the deficiency.
- Check for any subsequent filings regarding the company's market value of publicly held shares to determine eligibility for a second compliance period.
- Track the June 15, 2020 deadline for regaining compliance to avoid potential delisting.