Business Context and Reporting Period
This Form 8-K is a current report filed by iBio, Inc. on October 22, 2019, regarding an event that occurred on October 16, 2019. The Company is a Delaware corporation with its principal executive offices in New York, NY, and its common stock trades on the NYSE American under the ticker symbol "IBIO".
Key Financial Metrics
The filing discloses specific financial data related to listing compliance standards:
- Stockholders' Equity: $2.46 million as of June 30, 2019.
- Profitability: The Company reported net losses in each of its five most recent fiscal years ended June 30, 2019.
- Revenue, Cash Flow, and Debt: The filing text does not provide clear values for revenue, operating cash flow, or specific debt obligations.
Material Changes and Listing Status
On October 16, 2019, iBio, Inc. received notice from NYSE American that it is non-compliant with continued listing standards. Specifically, the Company failed to meet:
- Section 1003(a)(ii): Requires stockholders' equity of at least $4,000,000 if the company has reported losses in three of its four most recent fiscal years.
- Section 1003(a)(iii): Requires stockholders' equity of at least $6,000,000 if the company has reported losses in its five most recent fiscal years.
The Company's equity of $2.46 million and history of net losses triggered these deficiencies.
Outlook, Management Commentary, and Risks
Compliance Plan: The Company must submit a plan of compliance to the Exchange by November 15, 2019. This plan must detail actions taken or planned to regain compliance by October 16, 2020.
Delisting Risk: If the Company fails to submit a plan, or if the Exchange does not accept the plan, the Company will be subject to delisting procedures. If a plan is accepted, the Company will undergo periodic reviews and quarterly monitoring.
Management Action: Management states it is working to provide a satisfactory plan by the November 15 deadline.
Investor Verification Checklist
- Verify the submission and acceptance status of the compliance plan by the November 15, 2019 deadline.
- Monitor the Company's stockholders' equity and profitability trends to assess the feasibility of meeting the October 16, 2020 compliance target.
- Review the attached press release (Exhibit 99.1) for additional details on the Company's strategy to address the listing deficiency.
- Check for any subsequent filings regarding the outcome of the Exchange's review of the compliance plan.