ZÜRICH - NLS Pharmaceutics Ltd. (NASDAQ:NLSP), a biopharmaceutical company specializing in central nervous system disorders, has been notified of non-compliance with Nasdaq's stockholders' equity requirement, which could lead to delisting of its securities. The Swiss company received a staff determination letter on May 22, 2024, from Nasdaq's Listing Qualifications Department, citing a deficit in the minimum stockholders' equity of $2,500,000.
This recent notice follows a series of compliance issues for NLS Pharmaceutics. On April 19, 2024, the company was warned about its securities being at risk of delisting due to a failure to maintain the minimum $1 bid price per share over 30 consecutive business days. Previously, on January 9, 2024, NLS was informed of its non-compliance with the stockholders' equity requirement. The company had announced a plan to regain compliance on February 23, 2024.
NLS Pharmaceutics has scheduled a hearing with the Nasdaq Hearings Panel on June 4, 2024, to appeal the delisting determination and present its strategy to address the deficiencies.
The company is known for its lead product candidate, Quilience®, which is an extended-release formulation of Mazindol for the treatment of narcolepsy and other sleep-wake disorders. Quilience® has met its primary endpoint in a Phase 2a U.S. clinical trial and has received Orphan Drug Designations in the U.S. and Europe. NLS has also completed a successful Phase 2 study in the U.S. for Nolazol® in adults with ADHD.
The information in this article is based on a press release statement from NLS Pharmaceutics Ltd. It is important to note that forward-looking statements in the press release are based on current management expectations and involve risks and uncertainties that could cause actual results to differ materially.
InvestingPro Insights
In light of the recent compliance challenges faced by NLS Pharmaceutics Ltd. (NASDAQ:NLSP), a closer look at the company's financial health through InvestingPro metrics reveals a precarious position. With a market capitalization of just $8.06M, the company's valuation reflects significant investor concerns. The company's performance over the last twelve months, as of Q4 2023, has been notably poor, with an operating income adjusted to a loss of $11.81M and an EBITDA of the same magnitude. This financial strain is further highlighted by a staggering return on assets of -218.86%, underscoring the company's difficulties in generating positive returns from its asset base.
While NLSP has seen a strong return over the last month with a 38.68% price total return, this is set against a backdrop of a significant price decline over the longer term, with a -83.8% one-year price total return. This volatility is a critical factor for investors to consider, especially those looking for long-term stability.
InvestingPro Tips suggest that NLSP suffers from weak gross profit margins and is not profitable over the last twelve months. Additionally, the company does not pay dividends, which could be a deterrent for income-focused investors. With short-term obligations exceeding liquid assets, there is a liquidity risk that potential investors should be aware of. For those interested in a deeper analysis, InvestingPro offers additional tips, providing a total of 9 insights for NLSP, which can be accessed at: https://www.investing.com/pro/NLSP. To make the most of these insights, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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