Item 1A. Risk Factors
Item 1A. Risk Factors
Except as set forth below, there are no material changes related to risk factors from the risk factors described in Item 1A “Risk Factors” in Part I of our 2020 Annual Report.
We may fail to qualify for continued listing on NASDAQ which could make it more difficult for investors to sell their shares.
Our common stock trades on the Nasdaq Capital Market. To maintain that listing, we must satisfy the continued listing requirements of Nasdaq for inclusion in the Nasdaq Capital Market. On January 19, 2021, we received a notice from The Nasdaq Stock Market indicating that we do not meet the minimum of $2,500,000 in stockholders’ equity required by Listing Rule 5550(b)(1) for continued listing. We also do not meet the alternatives of market value of listed securities or net income from continuing operations. On February 5, 2021, we submitted a plan to regain compliance to The Nasdaq Stock Market. Under the listing rule, if the plan is accepted by The Nasdaq Stock Market, an extension of up to 180 calendar days from January 19, 2021 will be granted. A representative of The Nasdaq Stock Market advised us in late February, that they would not make a decision on whether to accept our compliance plan until after we file this quarterly report. If The Nasdaq Stock Market does not accept our plan, we will have the opportunity to appeal that decision to a Hearings Panel.
Even though we intend to regain compliance with the Rule, there can be no assurance that our plan will be accepted or that we will be able to implement our intention, regain and maintain compliance with the continued listing requirements or that our common stock will not be delisted from Nasdaq in the future. If our common stock is delisted by Nasdaq, we expect prices for our common stock to be quoted on one of the OTC Markets or the OTC Bulletin Board. Under such circumstances, stockholders may find it more difficult to sell, or to obtain accurate quotations, for our common stock, and our common stock would become substantially less attractive to certain purchasers such as financial institutions, hedge funds and other similar investors. There is no assurance, however, that prices for our common stock would be quoted on one of these other trading systems or that an active trading market for our common stock would thereafter exist, which would materially and adversely impact the market value of our common stock and your ability to sell our common stock.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
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Repurchases
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
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