FutureTech II Acquisition Corp., a special purpose acquisition company with a market capitalization of $51 million, is at risk of being delisted from The Nasdaq Stock Market LLC for failing to file its quarterly report on time. The company, which is based in New Rochelle, NY, did not submit its Form 10-Q for the quarter ending September 30, 2024, by the required deadline, violating Nasdaq’s Listing Rule 5250(c)(1). Despite these challenges, InvestingPro data shows the stock has delivered a 20% return over the past year.
On Monday, the company disclosed that it had received a notice from Nasdaq’s Hearings Panel granting it a conditional extension. The panel’s decision allows FutureTech II to remain listed, provided it files the overdue quarterly report and demonstrates compliance with Nasdaq’s Periodic Filing Rule by January 31, 2025.
The company previously indicated on December 13, 2024, that it is in the process of amending its financial statements for certain periods and expects to complete these amendments and the filing of the delayed 10-Q report by the end of January 2025. InvestingPro analysis reveals concerning liquidity metrics, with a current ratio of 0.3, indicating potential challenges in meeting short-term obligations. Subscribers can access 6 additional key risk indicators and detailed financial health metrics.
FutureTech II’s management has expressed confidence in meeting the new deadline, emphasizing efforts to rectify the filing issues and regain compliance with Nasdaq’s requirements. According to InvestingPro’s Financial Health assessment, the company maintains a "GOOD" overall rating despite current challenges.
In other recent news, FutureTech II Acquisition Corp. has been grappling with significant accounting errors leading to a restatement of its financial statements for the fiscal year ended December 31, 2023, and the first and second quarters of 2024. The errors were related to loans from its sponsor, FutureTech II Partners LLC, and potential overpayments in stockholder redemption during special meetings. The company is actively working to amend and correct these financial statements, acknowledging the existence of a material weakness in its internal control over financial reporting.
FutureTech II Acquisition Corp. is also addressing overpayment issues related to the redemption of its Class A common stock shares. The company identified miscalculations in the redemption payments made to stockholders during two special meetings. The company has committed to disclosing the recalculated redemption payments as soon as possible following the restatement of its financial statements for the affected periods.
Furthermore, FutureTech II Acquisition Corp. has been facing potential delisting from The Nasdaq Global Market due to its failure to meet the required market value threshold. The company has made several attempts to regain compliance, including changes to its corporate structure and the conversion of Class B common stock to Class A common stock. FutureTech II has also submitted an application to transfer its listing to The Nasdaq Capital Markets.
In a significant development, the company has received approval to transfer its listing from The Nasdaq Stock Market LLC to The Nasdaq Capital Market. This move is seen as crucial for FutureTech II as it ensures continued compliance with Nasdaq’s listing requirements. However, the company is still awaiting the outcome of a hearing scheduled for December 17, 2024, to determine whether it can regain compliance with Nasdaq’s listing criteria.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.