Business Context and Reporting Period
Company: Digital Ally, Inc. (Note: Metadata referenced Kustom Entertainment, Inc., but the filing text identifies Digital Ally, Inc.)
Filing Type: Form 8-K (Current Report)
Date of Report: September 13, 2011
Event: Notice of failure to satisfy a continued listing rule regarding minimum bid price on The Nasdaq Capital Market.
Key Financial Metrics
This filing is a current report regarding regulatory compliance and does not contain financial statements. Consequently, data on revenue, profit, cash flow, margins, debt, and liquidity are not provided in this document.
Material Changes
- Stock Price Non-Compliance: For the thirty consecutive business days ending September 12, 2011, the closing bid price of the Company's common stock was below $1.00 per share.
- Regulatory Status: The Company received a notice from The Nasdaq Stock Market citing non-compliance with Marketplace Rule 5550(a)(2).
- Trading Status: The notification has no immediate effect on the listing; the stock continues to trade under the symbol DGLY.
Outlook, Risks, and Contingencies
- Compliance Period: The Company has 180 calendar days (until March 12, 2012) to regain compliance.
- Remediation Requirement: To regain compliance, the closing bid price must meet or exceed $1.00 per share for at least ten consecutive business days before March 12, 2012.
- Delisting Risk: If compliance is not met by March 12, 2012, the stock will be subject to delisting notification.
- Extended Compliance: If delisting is initiated, the Company may be eligible for an additional 180-day period (until September 12, 2012) to demonstrate compliance with initial listing standards (excluding the minimum bid price) under Marketplace Rule 5505.
Investor Verification Checklist
- Verify the current closing bid price of Digital Ally, Inc. (DGLY) to assess proximity to the $1.00 threshold.
- Monitor subsequent filings for updates on the 180-day compliance period status.
- Review the Company's most recent 10-K or 10-Q filings for financial health metrics not included in this 8-K.
- Confirm whether the Company has submitted a plan to Nasdaq to regain compliance.