Business Context and Reporting Period
This Form 8-K was filed by Dolphin Entertainment, Inc. on April 15, 2020. The report addresses a regulatory notice regarding the continued listing of the Company's common stock (DLPN) and warrants (DLPNW) on The Nasdaq Capital Market.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on compliance with Nasdaq listing standards.
Material Changes
The primary material event is the extension of the compliance period for the Company's stock listing. On October 17, 2019, the Company received notice of non-compliance with Nasdaq Listing Rule 5550(a)(2) due to the common stock's closing bid price failing to meet the $1.00 minimum for 30 consecutive business days. On April 15, 2020, Nasdaq granted an additional 180-day extension to regain compliance, moving the deadline to October 12, 2020.
Outlook, Risks, and Management Commentary
- Compliance Requirement: To regain compliance, the minimum bid price of the Common Stock must meet or exceed $1.00 per share for a minimum of ten consecutive business days during the 180-day grace period.
- Risk of Delisting: Failure to regain compliance by October 12, 2020, could result in the delisting of the Company's securities from The Nasdaq Capital Market.
- Management Action: The Company is evaluating various courses of action to regain compliance. Management explicitly states there can be no assurance that the Company will be able to regain compliance with Nasdaq's rule or other listing criteria.
Investor Verification Checklist
- Verify the current trading price of DLPN to assess proximity to the $1.00 minimum bid price requirement.
- Monitor the Company's stock price for ten consecutive business days to determine if the compliance threshold is met before the October 12, 2020 deadline.
- Review subsequent filings for any announced corporate actions (e.g., reverse stock splits) intended to address the bid price deficiency.
- Confirm whether the Company has filed for a transfer of listing to another exchange if Nasdaq compliance is not achieved.