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iCoreConnect Inc. (NASDAQ:ICCT), a provider of prepackaged software services, is confronting the prospect of delisting from the NASDAQ Stock Market after failing to meet the minimum stockholders’ equity requirement, as per a recent 8-K filing with the Securities and Exchange Commission. InvestingPro data reveals the company’s precarious financial position, with an overall health score rated as "WEAK" and the stock trading at $2.05, down over 90% from its 52-week high of $35.80.
The company, headquartered in Ocoee, Florida, received a notification of non-compliance from NASDAQ’s Listing Qualifications Department on August 20, 2024. The notice highlighted that iCoreConnect did not satisfy the minimum $2.5 million stockholders’ equity threshold mandated by NASDAQ Listing Rule 5550(b), also known as the Equity Rule. The company’s financial challenges are evident in its current ratio of 0.11, indicating significant liquidity constraints, with short-term obligations exceeding liquid assets. InvestingPro subscribers can access 8 additional key financial health indicators that signal potential risks.
iCoreConnect was initially given until February 17, 2025, to regain compliance. As of that deadline, the company had not met the Equity Rule. Consequently, on Monday, NASDAQ informed iCoreConnect of its impending suspension of trading, slated to begin on February 27, 2025, unless the company files an appeal by February 25, 2025. If no appeal is filed, NASDAQ will proceed with a Form 25-NSE filing with the SEC, which will formally remove iCoreConnect’s securities from listing and registration on the exchange.
In response to this development, iCoreConnect has indicated its intention to request a hearing with NASDAQ’s Hearings Panel. This action will delay the suspension of trading and the Form 25-NSE filing until the Panel reaches a decision.
The 8-K filing, which serves as the source of this information, was signed by Robert McDermott, President and Chief Executive Officer of iCoreConnect, on February 21, 2025. The company, formerly known as FG Merger Corp., is incorporated in Delaware and has been operating under the iCoreConnect name since a name change on January 21, 2022.
This unfolding situation puts iCoreConnect in a critical position as it seeks to address the equity shortfall and maintain its listing on the NASDAQ market. The outcome of the upcoming hearing and the company’s efforts to rectify its financial standing will be closely watched by investors and market observers. With negative EBITDA of -$14.43 million and rapidly declining cash flows, monitoring the company’s financial metrics becomes crucial. Investors can track these developments in real-time with InvestingPro’s comprehensive financial health monitoring tools and instant alerts system.
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