Business Context and Reporting Period
This Form 8-K is filed by Akers Biosciences, Inc. (Ticker: AKER), an emerging growth company incorporated in New Jersey. The report date is May 16, 2019, covering an event that occurred on May 10, 2019. The filing addresses a regulatory notice regarding the company's listing status 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 document focuses exclusively on compliance with listing standards rather than financial performance metrics.
Material Changes
The material change reported is the receipt of a notification from Nasdaq indicating that the company's common stock is subject to potential delisting. This action was triggered because the bid price of the common stock closed below the minimum $1.00 per share requirement for 30 consecutive business days, violating Nasdaq Marketplace Rule 5550(a)(2).
Outlook, Risks, and Management Commentary
- Compliance Timeline: The company has been granted an initial 180-day compliance period, ending November 6, 2019, to regain compliance.
- Regaining Compliance: To cure the deficiency, the bid price must close at $1.00 per share or more for a minimum of 10 consecutive business days before the deadline.
- Secondary Compliance Period: If the company fails to regain compliance by November 6, 2019, it may be eligible for an additional 180-day period. Qualification requires meeting the market value of publicly held shares and other initial listing standards, potentially necessitating a reverse stock split.
- Delisting Risk: Failure to qualify for or succeed in the second compliance period will result in a delisting determination, which the company may appeal to a Hearings Panel.
- Management Action: Management intends to monitor the closing bid price and may consider implementing available options, such as a reverse stock split, to regain compliance.
Investor Verification Checklist
- Verify the current closing bid price of AKER stock to assess proximity to the $1.00 threshold.
- Monitor the company's stock price for 10 consecutive business days to determine if the initial compliance period is being met.
- Review future filings for announcements regarding a potential reverse stock split if the stock price remains below $1.00.
- Check the company's market value of publicly held shares to ensure eligibility for a second compliance period if needed.