Loading...
Loading...
Chat is set up on each filing report page.
Ask about this filing, its industry, or sector trends.
AI responses are generated from filing and peer context and may contain errors.
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factorsRisk factors that affect our business and financial results are discussed in Part I, Item 1A. Risk Factors, in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 30, 2026, as the same may be updated (Annual Report). Except as set forth below, there have been no material changes in our risk factors from time to timehose previously disclosed in our Annual Report. You should carefully consider the risks described in our Annual Report, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K may are not be the only risks we facing use. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and/or operating results.
As a smalle If any of the risks actually occur, our business, financial condition, and/or reporting company, tsults of operations could be negatively affected.
Risks Relating to Our Capital Structure and Nasdaq Listing
We are currently listed on The Nasdaq Capital Market. If we are unable to maintain listing of our securities on Nasdaq or any stock exchange, our stock price could be adversely affected and the Coliquidity of our stock and our ability to obtain financing could be impany is not reqired and it may be more difficult for our shareholders to sell their securities.
We are currently listed on the Nasdaq Capital Market, a national securities exchange. Nasdaq requireds companies desiring to disclose material changes to tlist their common stock to meet certain listing criteria including total number of shareholders: minimum stock price, total value of public float, and in some cases total shareholders equity and market capitalization. Our failure to meet such applicable listing criteria could prevent us from listing our common stock on Nasdaq. In the risk factors that were contained in tevent we are unable to have our shares traded on Nasdaq, our common stock could potentially trade on the OTCQX or the OTCQB, each of which is generally considered less liquid and more volatile than Nasdaq. Our failure to have our shares traded on the Nasdaq could make it more difficult for you to trade our shares, could prevent our common stock trading on a frequent and liquid basis and could result in the Companys Annual Repvalue of our common stock being less than it would be if we were able to list our shares on Nasdaq.
As previously disclosed on a Current Report on Form 8-K filed by us on April 17, 2026, we received a notification from The Nasdaq Stock Market, LLC (Nasdaq) notifying us that we were not in compliance with the minimum bid price requirement set fort on Form 10-K for th in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market. Specifically, Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of $1.00 per share, and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the year ended deficiency continues for a period of 30 consecutive business days. Therefore, in accordance with Listing Rule 5810(c)(3)(A), we were provided 180 calendar days, or until December 3124, 2025, as the same may be updated from time to time.
to regain compliance with the Rule. Subsequently, on December 24, 2025, Nasdaq determined the Company was eligible for an additional 180 calendar days, or until October 12, 2026, to regain compliance with the Rule. If we fail to regain compliance during the second 180-day period, then Nasdaq will notify us of its determination to delist our common stock, at which as will have an opportunity to appeal the delisting determination to a Hearings Panel.
If we are unable to regain compliance with the Nasdaq minimum bid price requirement and Nasdaq delists our common stock and warrants and we are unable to obtain listing on another national securities exchange, a reduction in some or all of the following may occur, each of which could have a material adverse effect on our shareholders:
|
| the liquidity of our common stock; |
|
|
|
|
| the market price of our common stock; |
|
|
|
|
| our ability to obtain financing for the continuation of our operations; |
|
|
|
|
| the number of investors that will consider investing in our common stock; |
|
|
|
|
| the number of market makers in our common stock; |
|
|
|
|
| the availability of information concerning the trading prices and volume of our common stock; and |
|
|
|
|
| the number of broker-dealers willing to execute trades in shares of our common stock. |
44