Business Context and Reporting Period
This Form 8-K filing by Smith Micro Software, Inc. (Delaware) was submitted on May 11, 2017, reporting an event that occurred on May 8, 2017. The filing addresses a regulatory compliance issue regarding the company's continued listing on The Nasdaq Stock Market.
Key Financial Metrics
The filing discloses specific equity data but does not provide revenue, profit, cash flow, or debt figures.
- Stockholders' Equity: As of March 31, 2017, the company's stockholders' equity fell below the required minimum of $2,500,000.
- Net Income: The filing states the company does not meet the net income from continuing operations alternative for continued listing, but does not provide a specific dollar amount.
- Market Value: The filing states the company does not meet the market value of listed securities alternative, but does not provide a specific dollar amount.
Material Changes
The primary material change is the receipt of a written notification from Nasdaq on May 8, 2017, stating the company failed to comply with Marketplace Rule 5550(b)(1) due to insufficient stockholders' equity. This represents a failure to meet continued listing standards.
Outlook, Risks, and Management Commentary
Compliance Timeline: The company has 45 calendar days (until June 22, 2017) to submit a plan to regain compliance. If accepted, Nasdaq may grant an extension of up to 180 calendar days to evidence compliance.
Management Intent: Management intends to actively consider available options to resolve the deficiency and regain compliance with the minimum stockholders' equity requirement.
Risks: There is no assurance that the company's common stock will not be delisted from Nasdaq.
Investor Verification Checklist
- Verify the exact stockholders' equity balance as of March 31, 2017, in the most recent 10-Q or 10-K.
- Monitor the company's submission of a compliance plan to Nasdaq by the June 22, 2017 deadline.
- Review subsequent filings for updates on the status of the delisting risk and any capital raising activities.
- Confirm whether the company meets the alternative listing standards (market value or net income) in future reports.