Annual report pursuant to Section 13 and 15(d)

Subsequent Event

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Subsequent Event
12 Months Ended
Dec. 31, 2019
Subsequent Event  
Subsequent Event

12. Subsequent Event

On November 25, 2019 the Company received notification (the “Deficiency Letter”) from the NYSE American LLC (the “NYSE American”) that it was not in compliance with certain NYSE American continued listing standards relating to stockholders’ equity as of September 30, 2019. Specifically, the Deficiency Letter stated that the Company is not in compliance with Section 1003(a)(i) (requiring stockholders’ equity of $2.0 million or more if it has reported losses from continuing operations and/or net losses in two of its three most recent fiscal years), Section 1003(a)(ii) (requiring stockholders’ equity of $4.0 million or more if it has reported losses from continuing operations and/or net losses in three of its four most recent fiscal years), and Section 1003(a)(iii) (requiring stockholders’ equity of $6.0 million or more if it has reported losses from continuing operations and/or net losses in its five most recent fiscal years). The Deficiency Letter noted that the Company had a stockholders’ equity of $4,930,000 as of September 30, 2019, and has reported net losses in its five most recent fiscal years. The Company was required to submit a plan to the NYSE American by December 26, 2019 advising of actions it has taken or will take to regain compliance with the continued listing standards by November 25, 2020.

On February 7, 2020, the Company received notice from the NYSE American that it had accepted the Company’s plan and granted a plan period through November 25, 2020. During the plan period the Company will be subject to periodic review to determine if it is making progress consistent with the plan. If the Company does not regain compliance with the NYSE American listing standards by November 25, 2020, or if the Company does not make sufficient progress consistent with its plan, then the NYSE American may initiate delisting proceedings.