BOCA RATON, Fla. - VSee Health, Inc. (NASDAQ:VSEE), a telehealth company, disclosed on Monday that it received a notice from Nasdaq for not filing its quarterly financial report on time, which is a non-compliance with the exchange's listing requirements.
The notification, dated September 6, 2024, indicates that VSee Health has not submitted its Form 10-Q for the quarter ended June 30, 2024. As a result, the company is currently not in compliance with Nasdaq Listing Rule 5250(c)(1), which mandates the timely filing of periodic financial reports with the Securities and Exchange Commission (SEC).
Despite this setback, there is no immediate impact on the trading of VSee Health's common stock or its public warrants on the Nasdaq Capital Market. The company has been given a deadline until November 5, 2024, to present a plan to Nasdaq outlining how it intends to regain compliance. If Nasdaq approves the plan, VSee Health could be granted an extension of up to 180 days from the original due date of the Form 10-Q, potentially until February 18, 2025, to file the overdue report and comply with the listing rules.
VSee Health has expressed its intention to comply with Nasdaq's requirements and plans to file the delayed Form 10-Q as soon as it is able to do so. The company's management is actively working to address the situation and ensure future compliance with all necessary regulatory obligations.
Investors are cautioned to consider the risks and uncertainties that could affect the company's ability to meet these compliance deadlines, as outlined in VSee Health's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the SEC. These documents are publicly available on the SEC's website.
The information in this article is based on a press release statement from VSee Health, Inc.
In other recent news, VSEE Health, Inc. has made significant strides in expanding its governance and amending its financial agreements. The health services company recently expanded its Board of Directors, appointing Cydonii V. Fairfax and David L. Wickersham as new Class III directors. Both Fairfax and Wickersham meet the independence criteria as defined by Nasdaq rules, contributing legal expertise and emergency response management experience, respectively.
In financial developments, VSEE Health has amended the terms of its convertible promissory note with an institutional investor, extending the maturity date to June 30, 2026, and guaranteeing eighteen months of interest. The company also issued an Equity Purchase Commitment Note of $500,000, payable in company shares at an initial price of $10 per share.
The company's Board of Directors approved an updated Code of Ethics and Conduct, reflecting the company's name change from Digital Health Acquisition Corp. to VSEE Health, Inc. This new code applies to all directors, officers, and employees.
VSEE Health also announced the launch of a new program through its subsidiary iDoc Telehealth Solutions, Inc., in collaboration with the United States Federal Bureau of Prisons. This initiative aims to deliver outpatient specialty medical services to inmates across several federal prisons. These are the latest developments in VSEE Health's operations.
InvestingPro Insights
Amidst the challenges faced by VSee Health, Inc. (NASDAQ:VSEE) with its recent Nasdaq notification for delayed filing, the company's stock performance and financial metrics provide a broader perspective on its market position. As of the latest data, VSee Health's market capitalization stands at approximately $24.83 million, reflecting the size and scale of the company within the telehealth industry. Despite a significant return over the last week, with a 45.69% price total return, the company's stock has experienced a notable decline over the past year, with a 1-year price total return of -85.68%.
Investors should note that VSee Health operates with a moderate level of debt and has not been profitable over the last twelve months. This is echoed in their negative operating income margin and return on assets, which are -14.13% and -137.62% respectively, as of the last twelve months ending Q1 2024. These financial indicators suggest that the company is currently facing operational challenges that may be contributing to the stock's high price volatility, an InvestingPro Tip that potential investors should consider.
Moreover, another InvestingPro Tip highlights that VSee Health's stock price often moves in the opposite direction of the market, which could be a point of interest for investors looking for non-correlated assets in their portfolios. However, with the stock's price being only 5.11% of its 52-week high and the InvestingPro fair value estimate at $0.8, current and potential shareholders may want to keep a close eye on the company's forthcoming financial reports and regulatory compliance efforts.
For those looking to delve deeper into VSee Health's financials and stock performance, there are additional InvestingPro Tips available that provide further insights into the company's market behavior and financial health. Visit InvestingPro for a comprehensive list of tips and metrics that can aid in making more informed investment decisions.
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