Quantum-Si Incorporated, a company specializing in measuring and controlling devices, has received a notice from Nasdaq regarding non-compliance with the stock exchange's minimum bid price requirement. The notification, issued on Monday (NASDAQ:MNDY), indicates that Quantum-Si's Class A common stock has been trading below the $1.00 minimum bid price for 30 consecutive business days.
The company, which is listed under the ticker NASDAQ:QSI, has been given a 180-day period until May 5, 2025, to address the issue and meet Nasdaq's continued listing criteria. During this time, the stock will remain listed on The Nasdaq Global Market. Quantum-Si's business operations and SEC reporting obligations are unaffected by this notice.
Quantum-Si must boost its stock's closing bid price to at least $1.00 for a minimum of 10 consecutive business days to regain compliance. If unable to meet the requirement by the deadline, Quantum-Si may seek an additional 180-day grace period by transferring its listing to The Nasdaq Capital Market, provided it satisfies other listing standards.
Should the company fail to comply within the allotted timeframe or be deemed unable to rectify the bid price deficiency, Nasdaq will issue a delisting notice. Quantum-Si would then have the option to appeal the decision before a Nasdaq Hearings Panel.
The company, previously known as HighCape Capital Acquisition Corp., is exploring all possible options to resolve the bid price issue and regain compliance. Nonetheless, there is no guarantee that Quantum-Si will achieve the necessary bid price or receive an extension from Nasdaq if needed.
This development is based on a recent SEC filing by Quantum-Si.
In other recent news, Quantum-Si Incorporated reported significant changes to its executive team, including new appointments and a resignation. The company also announced Q2 2024 financial results, with a revenue of $622,000 and a gross profit of $354,000, maintaining a gross margin of 57%. Amidst economic challenges, Quantum-Si managed to reduce its operating expenses to $24.4 million on an adjusted basis.
The company is set to release two new products as part of its innovation roadmap and is expanding its sales team and distribution network. Quantum-Si's cash and cash equivalents, along with investments in marketable securities, stand at $218.1 million as of June 30, 2024. For 2024, the company anticipates a revenue range of $3.7 million to $4.2 million and aims to keep net cash usage under $100 million.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Quantum-Si's financial situation amid its Nasdaq compliance challenge. The company's market capitalization stands at $133.96 million, reflecting its current valuation in the market. Despite the low stock price that triggered the Nasdaq notice, Quantum-Si has shown significant revenue growth, with a 270.81% increase over the last twelve months as of Q2 2024, and a 203.41% quarterly growth in the same period.
However, the company faces financial hurdles. An InvestingPro Tip indicates that Quantum-Si is "quickly burning through cash," which could be a concern as it navigates its stock price issues. On a positive note, another InvestingPro Tip reveals that the company "holds more cash than debt on its balance sheet," potentially providing some financial flexibility during this critical period.
The stock's volatility is evident, with a 17.72% return over the last week, contrasting sharply with a -49.76% return over the past six months. This aligns with the InvestingPro Tip stating that "stock price movements are quite volatile," which investors should consider in light of the Nasdaq compliance requirements.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Quantum-Si, providing deeper insights into the company's financial health and market position.
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