Business Context and Reporting Period
Company: EXICURE, INC.
Filing Type: Form 8-K (Current Report)
Date of Report: August 22, 2022
Reporting Period: Event date August 22, 2022; references financial data from the quarter ended June 30, 2022.
Context: The Company received a notice from The Nasdaq Stock Market LLC regarding a failure to meet continued listing standards.
Key Financial Metrics
Stockholders' Equity: The filing states that stockholders' equity, as reported in the Form 10-Q for the quarter ended June 30, 2022, is below the minimum requirement of $2,500,000. The exact equity value is not provided in this text.
Revenue, Profit, Cash Flow, Margins, Debt, Liquidity: The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity metrics beyond the equity deficiency.
Material Changes
- Listing Status: The Company failed to satisfy Nasdaq Listing Rule 5550(b)(1) due to insufficient stockholders' equity.
- Regulatory Action: Nasdaq issued a formal notice of delisting or failure to satisfy a continued listing rule.
Guidance, Outlook, and Risks
Management Plan: The Company has 45 calendar days from the notice date to submit a plan to regain compliance. Management anticipates submitting this plan timely.
Outlook: If the plan is accepted, the Company may receive an extension of up to 180 calendar days to provide evidence of compliance. If the plan is rejected or compliance is not achieved by the end of the extension, the Company may request a hearing before a Nasdaq Hearings Panel.
Risks: There is no assurance the Company will regain compliance. Risks include the ability to prepare a plan on time, Nasdaq's review of the plan, and the ability to complete necessary actions. Failure to comply could result in delisting.
Investor Verification Checklist
- Verify the exact stockholders' equity figure reported in the Form 10-Q for the quarter ended June 30, 2022.
- Monitor the submission of the compliance plan to Nasdaq within the 45-day window.
- Review the Company's strategy for raising equity or restructuring to meet the $2,500,000 threshold.
- Check for updates regarding the acceptance of the plan or the scheduling of a Nasdaq Hearings Panel.