IMAC Holdings, Inc. (NASDAQ:BACK), a healthcare company specializing in outpatient and rehabilitation services, has announced that it has successfully regained compliance with Nasdaq's minimum stockholders’ equity requirement.
This development follows a previous notification from The Nasdaq Stock Market LLC on May 31, 2023, which indicated the company's non-compliance with the stockholders’ equity threshold necessary for continued listing on the Nasdaq Capital Market.
The company received confirmation from Nasdaq on Wednesday that it now meets the required $2.5 million stockholders’ equity for continued listing, as per Listing Rule 5550(b)(1), also known as the Equity Rule. With this achievement, IMAC Holdings has addressed the deficiency and will remain listed on the Nasdaq Capital Market.
However, as part of the compliance process, IMAC Holdings will be under a one-year monitoring period by Nasdaq, referred to as a "Panel Monitor," to ensure ongoing compliance with the listing requirements. This monitoring is in line with Nasdaq Listing Rule 5815(d)(4)(B).
The news of regaining compliance is a significant step for IMAC Holdings, indicating the company's ability to meet the financial standards set by the Nasdaq exchange. This development may provide reassurance to investors regarding the company's financial stability and its commitment to maintaining the standards required for public companies.
The announcement was formally made through an 8-K filing with the United States Securities and Exchange Commission (SEC) on Thursday. The filing confirms the company's compliance status and outlines the next steps in the monitoring process.
IMAC Holdings, headquartered in Franklin, Tennessee, operates under the healthcare sector with a focus on specialty outpatient facilities. The company, initially known as IMAC Holdings LLC, underwent a name change in 2018 and has since been working to expand its presence in the healthcare market.
Investors and stakeholders of IMAC Holdings can refer to the recent 8-K filing for more detailed information regarding the company's compliance with the Nasdaq listing requirements.
In other recent news, IMAC Holdings has regained compliance with Nasdaq's minimum stockholders’ equity requirement through strategic measures. These included the acquisition of certain assets from Theralink Technologies, Inc. through a settlement of defaulted indebtedness and entering into a Settlement and Release Agreement with Theralink. This resulted in the transfer of additional assets and certain liabilities to IMAC in exchange for forgiveness of outstanding amounts due under the acquired notes.
IMAC Holdings also expanded its Board of Directors from three to five, appointing Dr. Peter Beitsch and Dr. Matthew Schwartz as new directors. Both directors bring extensive medical experience to the company. Furthermore, IMAC Holdings has made changes in its accounting practices, engaging Marcum, LLP as its new independent registered public accounting firm, replacing Salberg & Company, P.A.
These are recent developments and part of IMAC Holdings' ongoing efforts to strengthen its governance and financial oversight. Nasdaq will continue to monitor IMAC Holdings for ongoing compliance, and further developments will be reported in IMAC's next Quarterly Report on Form 10-Q.
InvestingPro Insights
As IMAC Holdings, Inc. (NASDAQ:BACK) navigates through its period of Nasdaq compliance monitoring, investors seeking a deeper understanding of the company's financial health might consider the latest metrics and analysis from InvestingPro.
With a market capitalization of just $1.92 million and a negative P/E ratio reflecting challenges in profitability, the company's financial position appears precarious. The negative adjusted P/E ratio for the last twelve months as of Q1 2024, standing at -0.66, and the gross profit margin of -$0.86 million USD further underscore the financial hurdles the company faces.
Moreover, the InvestingPro Tips suggest a cautious approach, highlighting that IMAC Holdings suffers from weak gross profit margins and that short-term obligations exceed its liquid assets. The stock's performance has been concerning, with a price total return of -45.16% over the last three months and -47.48% over the previous year as of 2024. These challenges are reflected in the fair value estimates, with the InvestingPro Fair Value calculated at $1.73 USD, closely aligning with the previous close price of $1.7 USD.
For investors considering IMAC Holdings as a potential addition to their portfolio, it may be beneficial to explore the full range of InvestingPro Tips available, which currently include six additional tips for a comprehensive analysis. For those interested in these insights, a visit to https://www.investing.com/pro/BACK can provide valuable information. Using the coupon code PRONEWS24 can secure up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering a more in-depth look at companies like IMAC Holdings and beyond.
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