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On Monday, iCoreConnect Inc., a provider of prepackaged software services, received a notice from NASDAQ's Listing Qualifications Department regarding non-compliance with the exchange's minimum bid price requirement. The company's common stock had closed below the requisite $1.00 per share for 32 consecutive business days, triggering a potential delisting from the NASDAQ Capital Market.
The notice, however, does not immediately affect the listing of iCoreConnect's stock. The company has been granted 180 calendar days, until January 6, 2025, to meet the bid price requirement. Compliance can be achieved if the stock's closing bid price reaches $1.00 or above for at least 10 consecutive business days within this period.
Should iCoreConnect fail to comply by the deadline, it may be eligible for a second 180-day period to regain compliance, provided it meets all other initial listing standards for the NASDAQ Capital Market, with the exception of the bid price. The company might have to notify NASDAQ of its intent to correct the deficiency, potentially through measures such as a reverse stock split.
In the event of non-compliance and ineligibility for an additional period, NASDAQ will issue a written notification of delisting, which iCoreConnect can appeal to the NASDAQ Listing Qualifications Panel.
The company, headquartered in Ocoee, Florida, and incorporated in Delaware, is considering all available options to address the bid price shortfall. This could include a reverse stock split, though there is no guarantee of returning to compliance.
InvestingPro Insights
In light of iCoreConnect's recent notification of non-compliance with NASDAQ's minimum bid price requirement, an analysis of the company's financial data and stock performance can offer additional context. According to InvestingPro data, iCoreConnect currently operates with a market capitalization of $8.85 million and has experienced a revenue growth of 16.06% over the last twelve months as of Q1 2024. Despite the growth, the company faces significant challenges, evidenced by a negative P/E ratio of -0.41 and an operating income margin of -132.47% for the same period.
An InvestingPro Tip highlights that iCoreConnect is quickly burning through cash, which could be a concern for investors considering the company's efforts to regain compliance with NASDAQ's listing standards. Additionally, the company's stock has been trading near its 52-week low and has seen a substantial price decline over the last year, with a 91.83% drop in its 1 Year Price Total Return as of the date provided.
For investors seeking a deeper analysis, InvestingPro offers additional tips on iCoreConnect, including insights into the company's debt burden and liquidity issues. Readers interested in these insights can find more information at InvestingPro's dedicated page for iCoreConnect and can take advantage of a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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