Business Context and Reporting Period
Surf Air Mobility Inc. filed a Form 8-K regarding a May 20, 2024 notice from the New York Stock Exchange (NYSE) that the company no longer met continued listing standards. The filing was signed May 24, 2024, and the attached press release is dated May 24, 2024.
The company’s common stock trades on the NYSE under the symbol SRFM. Surf Air Mobility is identified as an emerging growth company.
Key Financial and Market Metrics
| Metric | Reported amount |
|---|---|
| 30-trading-day average market capitalization as of May 17, 2024 | Approximately $40.9 million |
| Last reported stockholders’ equity as of March 31, 2024 | Approximately $(106.3) million deficit |
| NYSE listing threshold cited | Market capitalization and stockholders’ equity each at least $50 million |
The filing does not provide revenue, profit, cash flow, margins, debt, cash balance, or liquidity figures.
Material Changes Versus the Prior Comparable Period
The material development is the company’s failure to satisfy NYSE Section 802.01B, based on market capitalization below $50 million and negative stockholders’ equity. The filing does not provide comparable-period operating results or quantify changes in revenue, profitability, cash flow, debt, or liquidity.
Outlook, Risks, Contingencies, and Unusual Items
- The company stated that it will submit a plan to the NYSE within 45 days of receiving the notice, describing definitive actions intended to restore compliance within an 18-month cure period.
- The NYSE will review the plan and determine within 45 days whether the company has reasonably demonstrated its ability to regain compliance.
- If the plan is not timely submitted or accepted, the company could face delisting proceedings.
- If accepted, the company’s stock is expected to remain listed and traded during the cure period, subject to compliance with the plan and other NYSE standards. The symbol will carry a “.BC” designation indicating that the company is below applicable listing criteria.
- Failure to comply with the plan or applicable standards by the end of the cure period could result in suspension and delisting procedures.
- The notice has no immediate effect on the company’s business operations or SEC reporting obligations and does not trigger an event of default under the company’s material debt or other agreements, according to the filing.
- Key risks include the company’s ability to develop and execute a compliance plan, NYSE acceptance of the plan, continued listing compliance, and potential suspension of trading.
Important Facts for Investors to Verify
- Whether the company submitted its NYSE compliance plan within the required 45-day deadline.
- Whether the NYSE accepted the plan and the specific remediation actions required.
- Progress toward eliminating the approximately $106.3 million stockholders’ deficit and restoring market capitalization above the applicable threshold.
- Whether the “.BC” designation remains in effect and whether any suspension or delisting action is initiated.
- Updated cash, liquidity, debt, operating performance, and financing information, which are not provided in this filing.