Business Context and Reporting Period
This Form 8-K is a current report filed by ReWalk Robotics Ltd. (noted as Lifeward Ltd. in metadata) on October 26, 2018. The filing addresses a notice of deficiency regarding the Company's continued listing on The Nasdaq Capital Market. The Company is an emerging growth company incorporated in Israel.
Key Financial Metrics and Listing Deficiencies
The filing details specific financial thresholds the Company failed to meet as of October 26, 2018:
- Minimum Bid Price: The closing bid price was less than $1.00 per share for 30 consecutive business days (violating Nasdaq Listing Rule 5550(a)).
- Market Value of Listed Securities (MVLS): The MVLS was below $35 million for 30 consecutive business days (violating Nasdaq Listing Rule 5550(b)).
- Shareholders' Equity and Net Income: The Company did not meet the alternative standards of $2.5 million in shareholders' equity and $500,000 in net income.
The filing text does not provide specific values for total revenue, operating profit, cash flow, or total debt for the reporting period.
Material Changes and History
The MVLS deficiency is a recurring issue. The Company previously received similar notices in November 2017 and May 2018. Compliance was temporarily cured in June 2018 following a private placement that raised the MVLS above $35 million. The current filing indicates a relapse into non-compliance as of October 26, 2018.
Outlook, Management Commentary, and Risks
Cure Period: The Company has 180 days (until April 24, 2019) to regain compliance. To satisfy Rule 5550(a), the bid price must remain at or above $1.00 for 10 consecutive business days. To satisfy Rule 5550(b), the Company must either maintain an MVLS of $35 million or demonstrate shareholders' equity of at least $2.5 million.
Management Plans: Management intends to monitor share price and MVLS closely and is considering plans to regain compliance, which may include additional capital raises. However, the Company explicitly states there can be no assurance that it will be able to regain compliance.
Delisting Risk: If the Company fails to regain compliance by the deadline, Nasdaq will notify the Company that its shares are subject to delisting. The Company retains the right to appeal any delisting determination to a Nasdaq Hearings Panel, during which shares would remain listed pending the decision.
Investor Verification Checklist
- Verify the current closing bid price of ReWalk Robotics Ltd. shares to assess progress toward the $1.00 threshold.
- Confirm the current Market Value of Listed Securities (MVLS) to determine if it has recovered above $35 million.
- Review the Company's most recent Form 10-Q or 10-K for updated shareholders' equity and net income figures to assess the alternative compliance path.
- Monitor for announcements regarding new capital raises or reverse stock splits intended to address the bid price deficiency.
- Check for any subsequent Nasdaq correspondence regarding the extension of the cure period or delisting proceedings.