Aclarion, Inc., a medical laboratory services provider, has been notified by The Nasdaq Stock Market LLC of a non-compliance issue regarding the minimum stockholders' equity required for continued listing on the exchange.
According to a letter received by the company on Thursday, Aclarion reported stockholders' equity of $1,642,177 in its most recent quarterly report, falling short of the Nasdaq's minimum requirement of $2,500,000.
The company, headquartered in Broomfield, Colorado, is listed under the ticker symbol NASDAQ:ACON for its common stock and NASDAQ:ACONW for its common stock warrants. Despite the notification, Aclarion's securities remain actively traded on Nasdaq, with the company's listing intact for the time being.
Aclarion has been granted until August 29, 2024, to appeal the decision. If the company does not appeal or the appeal is unsuccessful, Nasdaq will suspend trading of Aclarion's common stock at the opening of business on September 3, 2024.
An appeal would halt any suspension or delisting actions until the hearing process is concluded and any further extension granted by the hearing panel has expired.
In other recent news, Aclarion, Inc. has been making significant strides in its financial and technological advancements. The company recently issued 930 shares of Series B convertible preferred stock to accredited investors in a debt exchange, thereby managing approximately $930,000 of its outstanding debt. In addition, Aclarion secured $116,000 by selling 400,000 shares of its common stock.
On the technology front, Aclarion has secured its 23rd U.S. patent, which pertains to advanced techniques that enhance the quality of spectral data from Magnetic Resonance Spectroscopy (MRS) exams.
This patented technology is a crucial part of Aclarion's Nociscan solution, which aids physicians in non-invasively identifying the source of chronic low back pain.
The company has also released its updated Nociscan 2.7 platform, which includes user-friendly features and additional scalability and security measures. Ascendiant Capital initiated coverage on Aclarion's stock, rating it a 'Buy' and setting a price target of $1.60, highlighting the potential benefits of Aclarion's proprietary NOCISCAN technology.
InvestingPro Insights
Aclarion, Inc.'s recent notification of non-compliance with Nasdaq's minimum stockholders' equity requirement presents a critical juncture for the company. InvestingPro data provides a snapshot of Aclarion's financial health, which may be of interest to current and potential investors. The company's market capitalization stands at a modest $1.97 million, reflecting the scale of its operations and investor valuation. Aclarion's revenue over the last twelve months as of Q2 2024 was reported at $0.05 million, accompanied by a significant decline in revenue growth of -35.23%. Furthermore, the company's gross profit margin during the same period was deeply negative at -51.53%, indicating challenges in maintaining profitability.
InvestingPro Tips suggest that Aclarion holds more cash than debt, which could provide some financial flexibility in addressing the equity shortfall. However, the company is noted for weak gross profit margins and has not been profitable over the last twelve months. With a stock that has performed poorly over the last month, quarter, and year, these factors are important considerations for investors. It's also worth noting that Aclarion is a niche player in its industry and does not pay a dividend to shareholders, which might influence investment decisions.
For investors seeking a deeper analysis of Aclarion's financials and strategic positioning, InvestingPro offers additional tips. There are 9 further InvestingPro Tips available that could provide valuable insights into the company's performance and outlook. To access these insights, investors can visit InvestingPro's dedicated page for Aclarion at https://www.investing.com/pro/ACON.
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