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CARLSBAD, CA – AppTech Payments Corp., a prepackaged software services company, is confronting a potential delisting from the Nasdaq Capital Market. The company, headquartered in Carlsbad, California, disclosed today that it received a deficiency notice from Nasdaq on August 21, 2024, for failing to comply with the minimum stockholders' equity requirement.
The Nasdaq Listing Rule 5550(b)(1) mandates that a company must maintain at least $2,500,000 in stockholders’ equity to retain its listing. AppTech Payments does not meet this criterion, nor does it satisfy the alternative requirements based on market value or net income. Despite the deficiency notice, AppTech’s common stock and warrants will continue trading on Nasdaq under the tickers "APCX" and "APCXW," respectively.
AppTech Payments has been given a deadline until October 7, 2024, to submit a plan to Nasdaq outlining how it will regain compliance with the listing standards. If Nasdaq approves this plan, it could grant AppTech Payments an extension of up to 180 days from the notice date to demonstrate compliance. Should the plan be rejected, the company has the right to appeal the decision before a Nasdaq Hearings Panel.
The company, which has undergone several name changes in its history, from Natural Nutrition Inc. to CSI Business Finance, Inc., and most recently to AppTech Corp., has not indicated the specifics of its plan to address the equity shortfall.
In other recent news, AppTech Payments Corp. has announced a strategic partnership with FISB Solutions to modernize core banking systems for community banks. The collaboration aims to enhance the digital capabilities of these institutions by integrating neobank technologies. This initiative is expected to enable community banks to compete more effectively in the digital banking landscape and provide improved services to customers.
Furthermore, AppTech has announced the pricing of its public offering of 2 million shares at $1.00 each, with the aim of raising $2 million before deductions. EF Hutton LLC is managing this offering, the proceeds of which are intended for the integration of AppTech's existing business, working capital, and general corporate purposes.
InvestingPro Insights
AppTech Payments Corp. (NASDAQ: APCX), in its endeavor to address the Nasdaq's concerns, faces additional challenges highlighted by InvestingPro data and tips. With a market capitalization of $21.17 million, the company's financial health has been under scrutiny, as evidenced by a Price / Book ratio of 11.71 for the last twelve months as of Q2 2024. This ratio, while indicative of the market's valuation of the company's net asset value, also suggests a premium that investors are willing to pay for AppTech's stock, despite its financial challenges.
Moreover, the company's revenue growth presents a mixed picture. Although there was a modest year-over-year increase of 3.59% in the last twelve months as of Q2 2024, the quarterly revenue growth during the same period saw a steep decline of 43.28%, raising concerns about the company's short-term revenue trajectory. This is further complicated by the company's operational performance, with an operating income margin of -2635.28%, reflecting significant challenges in managing operational costs relative to its revenue.
InvestingPro Tips for AppTech Payments signal caution, with the stock experiencing substantial volatility and trading near its 52-week low. The stock has also seen a significant price decline over various periods, including a 17.95% drop over the last month and a 79.08% plummet over the past year, underscoring the market's reaction to the company's financial health and performance. Additionally, AppTech Payments does not pay a dividend, which may influence investment decisions for income-focused shareholders.
Investors and stakeholders can find a comprehensive list of 11 InvestingPro Tips on https://www.investing.com/pro/APCX, providing deeper insights into AppTech Payments' stock performance and financial metrics.
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