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iCoreConnect Inc. (NASDAQ:ICCT), a provider of prepackaged software services, disclosed in a recent SEC filing that it has received a notice from Nasdaq's Listing Qualifications Department regarding non-compliance with a key listing rule.
The notice, dated August 20, 2024, indicates that iCoreConnect does not currently meet the Nasdaq's minimum stockholders' equity requirement of $2.5 million. Moreover, the company has not fulfilled the alternative compliance standards based on market value of listed securities or net income from continuing operations.
The notice does not immediately affect iCoreConnect's listing on the Nasdaq Capital Market. The company has been provided 45 calendar days, until October 4, 2024, to submit a plan to regain compliance. If the plan is accepted, Nasdaq may grant iCoreConnect up to 180 calendar days from the initial notice date to demonstrate compliance.
Should Nasdaq's staff find the compliance plan insufficient, iCoreConnect would then have the opportunity to appeal the decision before the Nasdaq Hearings Panel. However, the company has stated that there is no assurance that an appeal would result in a favorable outcome.
iCoreConnect, formerly known as FG Merger Corp., is based in Ocoee, Florida, and operates under the 06 Technology organization name. This development comes as the company faces challenges in maintaining the financial standards required for continued listing on the Nasdaq exchange. The company's leadership, including President and CEO Robert McDermott, is tasked with addressing these compliance issues in the coming months.
This report is based on information contained in a press release statement from iCoreConnect Inc. filed with the Securities and Exchange Commission.
In other recent news, iCoreConnect, the provider of software services, is facing possible NASDAQ delisting due to noncompliance with board composition requirements and minimum bid price. The company has been given 45 days to submit a plan to regain compliance following recent board changes, including the resignation of Harry Travis. In response to these changes, iCoreConnect announced the appointment of Yvonne Hyland to its board of directors.
Simultaneously, the company has been given 180 days to meet NASDAQ's minimum bid price requirement. In other developments, iCoreConnect has amended financial agreements and issued new equity securities. The company extended the maturity dates of two convertible promissory notes and issued a new convertible promissory note with a principal amount of $397,622.
As part of its growth strategy, iCoreConnect has expanded into Tennessee, securing an endorsement from the Tennessee Dental Association for seven of its software solutions. These recent developments highlight the company's ongoing efforts to address compliance issues and continue its growth trajectory.
InvestingPro Insights
As iCoreConnect Inc. (NASDAQ:ICCT) navigates the complexities of Nasdaq's compliance requirements, a glance at the company's recent financial performance and market position may offer investors additional context.
According to real-time data from InvestingPro, iCoreConnect has a market capitalization of $5.59 million and has experienced a significant revenue growth of 34.56% over the last twelve months as of Q2 2024. Despite this growth, the company's challenges are evident in its financial metrics, with an adjusted operating income margin at a concerning -168.97%.
InvestingPro Tips suggest that iCoreConnect operates with a significant debt burden and is quickly burning through cash, which aligns with the company's current non-compliance issue regarding stockholders' equity. The stock has also fared poorly over the last month, with a price total return of -29.48%, and has seen a significant decline over the last year, with a price total return of -93.8%. These figures underscore the urgency for a robust plan to regain compliance and stability.
For investors seeking a deeper analysis of iCoreConnect's financial health and stock performance, InvestingPro offers additional tips, with 10 more listed, providing a comprehensive understanding of the company's position and potential strategies for recovery. Visit InvestingPro for further insights: https://www.investing.com/pro/ICCT.
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