DURHAM, N.C. - Scorpius Holdings, Inc. (NYSE American: SCPX), a contract development and manufacturing organization, has been issued a notice of noncompliance by NYSE Regulation. The notice, dated April 22, 2024, indicates that Scorpius failed to file its annual report on Form 10-K for the fiscal year ending December 31, 2023, by the April 16, 2024, deadline.
The company had previously reported on April 1, 2024, that it would be unable to meet the filing deadline due to internal delays in preparing its consolidated financial statements. These delays were attributed to turnover in finance staff and the additional time needed to calculate revenue recognition for certain contracts.
Jeff Wolf, CEO of Scorpius Holdings, expressed regret over the filing delay and assured stakeholders of the company's commitment to high standards of financial reporting and corporate governance. He indicated that the company intends to file the overdue financial results promptly.
Under the NYSE American Company Guide's Section 1007, Scorpius Holdings is now in the Initial Cure Period, which lasts six months from the date of the Filing Delinquency Notification. During this period, the company must demonstrate efforts to cure the filing delinquency. If the company fails to do so, the Exchange may grant an Additional Cure Period of up to six months, depending on the company's specific circumstances.
Failure to cure the delinquency within these periods could result in suspension and delisting procedures. The Exchange retains the discretion to truncate cure periods or commence suspension and delisting procedures if it deems continued listing inadvisable or unwarranted.
Scorpius Holdings, as a contract development and manufacturing organization, specializes in advancing biologic and cell therapy programs. The company provides analytical testing, process development, and manufacturing services to pharmaceutical and biotech companies from its facilities in San Antonio, TX.
The company has stated its intention to regain compliance with the NYSE American continued listing standards, although there is no assurance that compliance will be achieved. This news is based on a press release statement from Scorpius Holdings, Inc.
InvestingPro Insights
In the wake of Scorpius Holdings, Inc.'s (NYSE American: SCPX) recent notice of noncompliance from the NYSE Regulation, investors may be seeking additional context on the company's financial health and market performance. According to InvestingPro data, SCPX currently has a market capitalization of 5.74 million USD, which may reflect investor concerns regarding the company's ability to meet its financial obligations. Furthermore, the company's P/E ratio stands at a negative -0.08, with an adjusted P/E ratio for the last twelve months as of Q3 2023 at -0.11, indicating that the market may have significant reservations about the company's earnings potential.
InvestingPro Tips suggest that SCPX operates with a significant debt burden and may have trouble making interest payments on its debt. This is particularly relevant given the company's delay in filing its annual report, which could signal deeper financial difficulties. Additionally, the company's stock is in oversold territory according to the Relative Strength Index (RSI), which could indicate a potential rebound or further reflect investor skepticism.
For investors considering SCPX, it's worth noting that the company's price has seen a notable decline over the last year, with a 79.52% drop in the one-year price total return as of the current year. This performance aligns with concerns about the company's ability to generate profit, as analysts do not anticipate SCPX will be profitable this year. These insights, along with additional InvestingPro Tips available at InvestingPro, can help investors make more informed decisions. There are 13 additional InvestingPro Tips for SCPX that could provide further guidance on the company's outlook.
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