Business Context and Reporting Period
This Form 8-K Current Report was filed by Phio Pharmaceuticals Corp. on August 25, 2022. The filing addresses a regulatory matter concerning the continued listing of the Company's common stock 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 report focuses exclusively on listing compliance status rather than financial performance metrics.
Material Changes and Listing Status
- Initial Non-Compliance: On February 25, 2022, the Company received notice from Nasdaq regarding non-compliance with Listing Rule 5550(a)(2) (Minimum Bid Price Rule) due to the common stock failing to maintain a minimum closing bid price of $1.00 for 30 consecutive business days.
- Extension Granted: On August 25, 2022, Nasdaq granted the Company an additional 180 calendar days to regain compliance, extending the deadline to February 20, 2023.
- Compliance Requirement: To achieve compliance, the Company's common stock must close at $1.00 per share or more for a minimum of 10 consecutive business days prior to the new deadline.
Outlook, Risks, and Management Commentary
Management intends to actively monitor the closing bid price and evaluate available options to regain compliance. The filing explicitly states there can be no assurance that the Company will regain compliance within the additional 180-day period. If compliance is not achieved, the Company's stock will be subject to delisting, at which point the Company would be entitled to appeal the determination to a Nasdaq hearings panel.
Investor Verification Checklist
- Verify the current closing bid price of PHIO common stock to assess proximity to the $1.00 threshold.
- Monitor the stock's performance over the next 10 consecutive business days to determine if the compliance trigger is met.
- Review subsequent filings for any announcements regarding a reverse stock split or other capital structure changes intended to address the bid price deficiency.
- Confirm the final deadline of February 20, 2023, for regaining compliance to avoid potential delisting.