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HeartSciences Inc. (NASDAQ:HSCS), a medical technology company with a market capitalization of $3.52 million, has been granted an extension by The Nasdaq Stock Market LLC to regain compliance with the Nasdaq Listing Rule 5550(b)(1). This rule requires companies listed on The Nasdaq Capital Market to maintain a minimum of $2.5 million in stockholders’ equity, or meet alternative market value or net income standards. According to InvestingPro data, the company is currently experiencing rapid cash burn and maintains a weak overall financial health score.
Previously, HeartSciences was notified by Nasdaq’s Listing Qualifications Department of its non-compliance with the Minimum Stockholders’ Equity Requirement. In response, the company submitted a plan to Nasdaq detailing how it intends to regain and sustain compliance. Nasdaq has reviewed this plan and has given HeartSciences until September 15, 2025, to complete the necessary transactions to demonstrate compliance. The stock has struggled significantly, with InvestingPro showing a 53% decline over the past year and high volatility in its price movements.Discover more comprehensive insights and 8 additional key ProTips about HeartSciences with an InvestingPro subscription.
The company must show evidence of compliance upon filing its Quarterly Report on Form 10-Q for the quarter ending October 31, 2025. Failure to do so could result in delisting. HeartSciences would then have the right to request a hearing before an independent Nasdaq Hearing Panel, which would delay any delisting action until the hearing process and any granted extension period are concluded.
HeartSciences aims to take all reasonable measures to regain compliance with Nasdaq’s continued listing requirements. However, there is no guarantee that the company will be successful in this endeavor. A suspension of trading or delisting from Nasdaq could negatively affect the liquidity and market price of HeartSciences’ common stock, limit investor interest, hinder the company’s access to equity markets and financing, and impair its ability to offer equity incentives. The company’s current ratio of 1.02 and moderate debt levels, as reported by InvestingPro, suggest limited financial flexibility to address these challenges.
This announcement is based on a press release statement and provides no assurance of the company’s future success in maintaining Nasdaq listing standards.
In other recent news, HeartSciences Inc. has received a notice from The Nasdaq Stock Market LLC regarding its non-compliance with listing rules due to insufficient stockholder equity. As of January 31, 2025, the company’s stockholders’ equity was reported at $1,786,689, falling short of the Nasdaq Listing Rule 5550(b)(1) requirement of a minimum of $2.5 million. Despite this notice, HeartSciences’ common stock and public warrants will continue to trade on Nasdaq as long as other listing requirements are met. The company has been given until May 5, 2025, to submit a plan to regain compliance. If this plan is accepted, HeartSciences could have up to 180 days from the initial notice date to meet the compliance standards. There is no guarantee that the compliance plan will be accepted or that the company will meet the requirements within the given timeframe. HeartSciences is currently evaluating options to address the deficiency and intends to submit a compliance plan by the deadline. The company aims to maintain its Nasdaq listing, which is crucial for its market liquidity and investor interest.
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