JAKKS PACIFIC INC - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by JAKKS Pacific, Inc. on August 16, 2019, regarding events occurring on August 14, 2019. The Company is a Delaware corporation with its principal executive offices in Santa Monica, California, and its common stock trades on the NASDAQ Global Select Market under the symbol "JAKK".
Key Financial Metrics
The filing discloses specific financial data related to listing compliance rather than operational performance metrics such as revenue or cash flow.
- Stockholders' Equity: $1,632,000 (as reported in the Form 10-Q for the quarter ended June 30, 2019).
- Minimum Equity Requirement: $10,000,000 (Nasdaq Listing Rule 5450(b)(1)(A)).
- Minimum Bid Price Requirement: $1.00 per share (Nasdaq Listing Rule 5450(a)(1)).
The filing text does not provide clear values for revenue, profit, cash flow, margins, or debt levels.
Material Changes and Listing Status
On August 14, 2019, the Company received notice from Nasdaq that it is not in compliance with the minimum stockholders' equity requirement due to the reported equity of $1,632,000. This is a material change in the Company's listing status. Additionally, the Company remains subject to a prior notice received on June 24, 2019, regarding failure to maintain the $1.00 minimum bid price for 30 consecutive business days.
Outlook, Risks, and Contingencies
The Company has 45 calendar days from the August 14 notice to submit a plan to regain compliance with the equity requirement. If the plan is accepted, Nasdaq may grant an extension of up to 180 calendar days to achieve compliance. The Company must demonstrate compliance with the minimum bid price requirement by December 23, 2019.
Risks and Contingencies:
- There is no assurance that a compliance plan will be accepted or that an appeal to a hearings panel would be successful if the plan is rejected.
- If the Company fails to regain compliance or successfully appeal, its shares will be delisted from Nasdaq.
- The Company is currently reviewing potential actions and responses to the non-compliance notices.
Key Facts for Investor Verification
- Verify the Company's current stockholders' equity against the $10,000,000 Nasdaq requirement.
- Monitor the submission of the compliance plan within the 45-day window following August 14, 2019.
- Track the stock price to ensure it meets the $1.00 minimum bid price requirement by the December 23, 2019 deadline.
- Review the Company's Form 10-Q for the quarter ended June 30, 2019, for detailed financial context regarding the equity shortfall.