Business Context and Reporting Period
This Form 8-K is filed by Akers Biosciences, Inc. (the "Company"), an emerging growth company incorporated in New Jersey, with a report date of November 7, 2019. The filing addresses a critical regulatory event regarding the Company's listing status on The Nasdaq Capital Market under the trading symbol "AKER."
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, or margin data. However, it discloses a specific liquidity and equity metric relevant to listing compliance:
- Stockholders' Equity: As of June 30, 2019, the Company's stockholders' equity fell below the required minimum of $5,000,000.
- Stock Price: The bid price of the Common Stock closed below the minimum $1.00 per share requirement for 30 consecutive business days prior to May 10, 2019.
Material Changes and Events
The primary material event is the Company's failure to satisfy Nasdaq continued listing standards:
- Initial Notification: On May 10, 2019, the Company was notified of potential delisting due to failure to meet the $1.00 minimum bid price requirement (Rule 5550(a)(2)).
- Compliance Failure: On November 7, 2019, Nasdaq notified the Company that it is not eligible for a second 180-day period to regain compliance. This denial is due to the failure to meet the minimum stockholders' equity requirement of $5,000,000 as of June 30, 2019 (Rule 5550(b)(1)).
Outlook, Management Commentary, and Risks
Management Action Plan: The Company intends to appeal the Nasdaq Staff's determination to a Nasdaq hearing panel. The appeal must be filed by 4:00 p.m. Eastern Time on November 14, 2019. The Company will request a hearing and a stay of any delisting action pending the panel's decision.
Outlook: Management believes it will be able to present a plan to regain compliance with both the bid price and stockholders' equity rules, allowing the stock to continue trading on the Nasdaq Capital Market.
Risks and Contingencies:
- There is no assurance that the hearing will be granted or that the panel will decide to continue the listing.
- There is no assurance the Company can evidence compliance within any timeframe granted by the panel.
- Forward-looking statements regarding the appeal and compliance are subject to risks and uncertainties; actual results may differ materially.
Investor Verification Checklist
- Verify the status of the appeal filed with the Nasdaq hearing panel by the November 14, 2019 deadline.
- Monitor the Company's stockholders' equity levels to determine if they have recovered above the $5,000,000 threshold.
- Track the daily closing bid price of the Common Stock to ensure it remains above $1.00.
- Review the outcome of the Nasdaq hearing panel decision for potential delisting or suspension of trading.