Business Context and Reporting Period
This Form 6-K filing by Farmmi, Inc. covers the period of February 2020. The registrant is a foreign private issuer based in Lishui, Zhejiang Province, People's Republic of China, with principal executive offices at No. 307, Tianning Industrial Area.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report is a current event disclosure regarding regulatory compliance rather than a financial statement.
Material Changes
The material change disclosed is the receipt of a notification from the Nasdaq Capital Market on February 3, 2020. The company failed to meet the minimum closing bid price requirement of $1.00 per share for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).
Outlook, Risks, and Contingencies
- Compliance Period: Farmmi has been granted an initial 180-day compliance period ending August 3, 2020, to regain compliance.
- Remediation Criteria: To close the matter, the closing bid price must be at least $1.00 for a minimum of 10 consecutive business days during the compliance period.
- Delisting Risk: Failure to regain compliance by August 3, 2020, may result in delisting unless the company qualifies for an additional 180-day grace period.
- Grace Period Requirements: To qualify for the second period, the company must meet all initial listing standards except the bid price requirement and may need to effect a reverse stock split.
- Trading Status: The notification does not result in immediate delisting; shares will continue to trade under the symbol "FAMI."
Investor Verification Checklist
- Verify the current closing bid price of Farmmi shares to assess progress toward the $1.00 threshold.
- Monitor for any announcements regarding a reverse stock split prior to the expiration of the second compliance period.
- Confirm whether the company has met the market value of publicly held shares requirement if seeking the second grace period.
- Review the press release filed as Exhibit 99.1 for additional management commentary on the bid price deficiency.