NEW YORK - SCWorx Corp. (NASDAQ:WORX), a provider of data management and workflow solutions, has been granted an extension by the Nasdaq Stock Market to regain compliance with its listing requirements. The company was notified on Monday that it had failed to meet Nasdaq's filing standards after not submitting its financial reports for the periods ending December 31, 2023, March 31, 2024, and June 30, 2024, on time.
The specific rule SCWorx failed to comply with is the Nasdaq Listing Rule 5250(c)(1), which mandates timely filing of periodic financial reports. The company's inability to file the required reports was primarily due to the dismissal of its former independent registered public accounting firm, BF Borgers CPA PC, on May 7, 2024. This action was taken following an SEC order that denied BF Borgers the privilege of appearing or practicing before the Commission as an accountant, which subsequently delayed the company's financial reporting process.
In response to the delay, SCWorx has appointed a new auditor, Astra Audit & Advisory, LLC, to complete the necessary audits and reviews. The company has communicated its intention to expedite the completion of these financial statements and regain compliance with Nasdaq's periodic reporting obligations.
To address the issue, SCWorx submitted a revised plan to Nasdaq, outlining steps to achieve compliance by no later than October 14, 2024. Nasdaq has accepted this plan and granted SCWorx an extension until the proposed date to file all delinquent reports.
SCWorx has expressed confidence in its ability to meet the new deadline and fulfill its reporting obligations. The acceptance of the compliance plan by Nasdaq allows SCWorx to maintain its listing on the exchange, provided it adheres to the timeline set forth in the plan.
Investors and stakeholders have been watching the company's progress closely, as maintaining compliance with exchange listing requirements is crucial for continued public trading of its stock. The information regarding SCWorx's compliance status and plans is based on a press release statement from the company.
InvestingPro Insights
Amidst the challenges faced by SCWorx Corp. (NASDAQ:WORX) in meeting Nasdaq's listing requirements, the company's financial metrics and stock performance provide a broader context for investors monitoring the situation. According to InvestingPro data, SCWorx has a market capitalization of 1.31 million USD, which reflects the scale of the company in the current market. Despite the difficulties, the company showed a significant return over the last week, with an 8.82% increase in price total return. This could indicate a positive investor response to SCWorx's efforts to resolve its compliance issues.
InvestingPro Tips suggest that SCWorx is trading at a low revenue valuation multiple, with a Price / Book ratio of just 0.22 as of the last twelve months ending Q3 2023. This metric might appeal to value-oriented investors seeking opportunities in companies potentially undervalued relative to their book value. However, the company's stock price movements have been quite volatile, with a 40.96% drop in the three-month price total return, which is a consideration for risk-averse investors.
Furthermore, SCWorx does not pay a dividend to shareholders, which could influence the investment decisions of those seeking regular income streams from their stock holdings. On the InvestingPro platform, there are additional tips available that delve deeper into SCWorx's financial health and market performance, providing a comprehensive analysis for investors looking to make informed decisions.
For investors interested in a more detailed analysis, there are 5 more InvestingPro Tips available at: https://www.investing.com/pro/WORX, offering further insights into SCWorx's financial stability and market position.
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