Business Context and Reporting Period
This Form 8-K is filed by Second Sight Medical Products, Inc. (trading symbol: EYES) on July 23, 2020. The filing addresses a notice received from The Nasdaq Stock Market regarding the Company's failure to meet specific continued listing standards.
Key Financial Metrics and Listing Status
The filing does not provide specific revenue, profit, cash flow, or debt figures. Instead, it details the following financial thresholds the Company failed to meet based on Nasdaq's review:
- Market Value of Listed Securities (MVLS): Failed to maintain the required minimum of $35 million over the past 30 business days.
- Stockholders' Equity: Failed to meet the requirement of at least $2.5 million.
- Net Income: Failed to meet the requirement of $500,000 from continuing operations in the most recently completed fiscal year or two of the three most recently completed fiscal years.
Material Changes and Compliance Period
Nasdaq has granted the Company a compliance period of 180 calendar days, expiring on January 19, 2021, to regain compliance. To resolve the issue, the Company must achieve an MVLS of $35 million or more for a minimum of ten consecutive business days during this period. If compliance is not achieved by the deadline, the Company's securities will be subject to delisting, at which point the Company may appeal to a Nasdaq Hearings Panel.
Outlook, Risks, and Unusual Items
The primary risk identified is the potential delisting of the Company's common stock and warrants from the Nasdaq Stock Market. An indicator will be displayed with the Company's quotation information on Nasdaq platforms, and the Company will be listed on the Nasdaq website as non-compliant starting five business days after the notice date. No other unusual items or management guidance regarding future financial performance is included in this specific filing.
Investor Verification Checklist
- Verify the current Market Value of Listed Securities (MVLS) to assess progress toward the $35 million threshold.
- Review the most recent 10-K or 10-Q filings to confirm the specific values for Stockholders' Equity and Net Income that led to the non-compliance notice.
- Monitor the Company's stock price for ten consecutive business days to determine if the $35 million MVLS requirement is met before the January 19, 2021 deadline.
- Check for any subsequent filings regarding an appeal to the Nasdaq Hearings Panel if the compliance period expires without resolution.