Blackboxstocks Inc., a computer programming services firm currently trading at $1.96 per share with a market capitalization of $6.74 million, has recently received notices from Nasdaq regarding non-compliance with certain listing requirements. The Dallas-based company, which trades under the ticker BLBX on the Nasdaq Capital Market, has failed to meet the standards for holding annual stockholder meetings and board independence. According to InvestingPro analysis, the company’s financial health score is rated as WEAK, with several challenges including a 29.6% decline in stock value over the past year.
On Monday, the company was notified by Nasdaq that it had not complied with the annual meeting rule, Nasdaq Listing Rule 5620(a), which mandates that listed companies hold an annual meeting of stockholders within a year of the fiscal year’s end. Blackboxstocks did not hold its 2024 annual meeting by December 31, 2024.
The company has until February 27, 2025, to submit a compliance plan, which may extend the deadline for compliance to June 30, 2025. In response, Blackboxstocks has scheduled its 2024 annual meeting for February 7, 2025, aiming to rectify the issue. This compliance challenge comes amid significant operational headwinds, with InvestingPro data showing an 18.56% revenue decline and negative EBITDA of $3.45 million in the last twelve months.
Additionally, the company is addressing another compliance matter following the passing of board member Ray Balestri. This event left Blackboxstocks short of the required majority of independent directors on its board, as well as an insufficient number of independent directors on its Audit Committee, violating Nasdaq Listing Rules 5605(b)(1) and 5605(c)(2)(A).
Consequently, Nasdaq has granted a cure period ending at the earlier of the next annual stockholder meeting or January 4, 2026, or by July 3, 2025, if the next annual meeting occurs before July 3, 2025. The company’s financial stability is also concerning, with a current ratio of 0.36 indicating potential liquidity challenges.
In other recent news, Blackboxstocks Inc. has been facing significant developments. The Dallas-based computer programming services company reported non-compliance with two Nasdaq listing rules, potentially leading to delisting from the exchange. The first issue pertains to failing to hold an annual meeting of stockholders within the stipulated timeframe. The second issue concerns board and committee composition following the unexpected passing of director Ray Balestri.
Blackboxstocks is currently considering options to regain compliance within the cure period provided by Nasdaq. Meanwhile, the company has made significant changes in its accounting department, transitioning to a new certifying accountant, Victor Mokuolo CPA PLLC, following the dismissal of its former accounting firm, Turner Stone & Company. This transition comes after the company reported a revenue decline of 18.5% in the last twelve months.
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