Business Context and Reporting Period
This Form 8-K was filed by EyeGate Pharmaceuticals, Inc. on April 12, 2017. The registrant is a Delaware corporation and an emerging growth company. The report addresses a notice received from The Nasdaq Stock Market regarding compliance with continued listing standards.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, or debt figures. However, it identifies the following financial deficiencies triggering the NASDAQ notice:
- Stockholders' Equity: Below the required minimum of $2.5 million.
- Market Value of Listed Securities (MVLS): Below the minimum of $35 million for the previous 30 consecutive business days.
- Net Income: The company did not report net income from continuing operations in the latest fiscal year or in two of the last three fiscal years.
Material Changes and Listing Status
On April 12, 2017, the Company received notification that it was not in compliance with NASDAQ Listing Rules 5550(b)(1), 5550(b)(2), and 5550(b)(3) as of April 5, 2017. The notice has no immediate impact on the listing of the Company's securities. The Company has been granted a 180-calendar-day compliance period, expiring on October 2, 2017, to regain compliance.
Outlook, Risks, and Management Commentary
Compliance Path: To regain compliance, the Company must either maintain an MVLS of at least $35 million for 10 consecutive business days or report stockholders' equity of at least $2.5 million at any time during the compliance period.
Risks: If the Company fails to regain compliance by October 2, 2017, its securities will be subject to delisting. The Company retains the right to appeal a delisting determination to a hearings panel.
Management Action: Management intends to actively monitor the MVLS and consider available options to resolve the deficiency.
Investor Verification Checklist
- Verify the current Market Value of Listed Securities (MVLS) to assess proximity to the $35 million threshold.
- Review the most recent audited financial statements to confirm stockholders' equity levels relative to the $2.5 million requirement.
- Monitor for any subsequent filings regarding capital raises or strategic actions intended to restore compliance before the October 2, 2017 deadline.
- Check for any updates on the Company's net income status for the relevant fiscal years.