LENEXA, KS - Digital Ally (NASDAQ:DGLY), Inc., a manufacturer of communication equipment for broadcasting, has received a notice from the Nasdaq Stock Market indicating non-compliance with the minimum bid price requirement.
Trading at $0.52 and down nearly 78% over the past six months, the company's common stock traded below the $1.00 threshold for 30 consecutive days, violating Nasdaq Listing Rule 5550(a)(2). According to InvestingPro analysis, the company's overall Financial Health Score is rated as WEAK.
The notice, dated December 20, 2024, triggers a 180-day period ending on June 18, 2025, for Digital Ally to regain compliance. The company's stock will remain listed on the Nasdaq Capital Market during this period. Compliance can be achieved if the stock's bid price closes at $1.00 or higher for at least ten consecutive business days. InvestingPro data reveals concerning metrics, including a current ratio of 0.51, indicating the company's short-term obligations exceed its liquid assets.
If compliance is not met by the deadline, Digital Ally may be eligible for a second 180-day period, provided it meets other listing requirements and submits written notice of its intent to regain compliance.
Digital Ally is considering options to address the deficiency and regain compliance, but there is no guarantee of success or assurance of an extension from Nasdaq. Failure to comply may lead to delisting, although the company would have the right to appeal any such decision.
This information is based on the latest SEC filing by Digital Ally, Inc.
In other recent news, Digital Ally, Inc. has been navigating a series of significant developments. The company reported a significant 148% increase in gross profits for fiscal year 2023, despite experiencing a 24% decrease in total revenues. Additionally, Digital Ally finalized a $5.9 million property sale to Serenity Now, LLC, and raised approximately $2.9 million through a private placement transaction facilitated by Aegis Capital Corp.
However, the company is facing an accelerated debt obligation of approximately $1.6 million due to a missed payment to Softforge Innovation, LLC. Digital Ally disputes these claims and is prepared to defend its rights through legal means. In other corporate news, the company terminated its merger agreement with Clover Leaf Capital Corp. and amended its bylaws, lowering the quorum requirement for stockholder meetings.
Digital Ally also received a delinquency notification from Nasdaq due to a delay in filing its quarterly financial report, requiring a plan to regain compliance by January 2025. Furthermore, the company corrected errors in its Articles of Incorporation, reinstating ten million shares of preferred stock into its capital structure.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.