NEW YORK - SCWorx Corp. (NASDAQ:WORX), a provider of data management and services for healthcare providers, has announced the engagement of a new auditing firm, Astra Audit & Advisory, LLC, following issues with its previous auditor.
The company disclosed in a recent filing that it has not met Nasdaq's Listing Rule 5250(c)(1) due to the delayed filing of its Form 10-Q for the quarter ended March 31, 2024, and its Form 10-K for the fiscal year 2023.
The non-compliance notice from Nasdaq came after SCWorx's former auditor, BF Borgers CPA PC, was barred by the SEC from practicing before the Commission. This led to the company's decision on May 7, 2024, to dismiss BF Borgers and subsequently appoint Astra Audit & Advisory on May 21, 2024. As part of the new engagement, the 2022 financial statements, previously audited by BF Borgers, will be re-audited.
SCWorx has expressed its intention to expedite the audit of its financial statements and file the overdue reports as swiftly as possible in an effort to regain compliance with Nasdaq's periodic disclosure requirements.
The company is required to submit a compliance plan to Nasdaq by June 17, 2024, and while there is no certainty that Nasdaq will accept this plan, any extension granted to SCWorx to rectify its filing delinquency would be capped at 180 calendar days from the original due date of its annual report, which is October 14, 2024.
Investors are watching closely as the company works to resolve its reporting issues. The outcome of SCWorx's efforts to regain compliance could have significant implications for its continued listing on the Nasdaq exchange. The information regarding SCWorx's non-compliance and steps towards remediation is based on a press release statement issued by the company.
InvestingPro Insights
As SCWorx Corp. (NASDAQ:WORX) navigates through its recent auditing challenges and strives to meet Nasdaq's compliance standards, potential and current investors are keeping a keen eye on the company's financial health and market performance. Here are some insights based on real-time data from InvestingPro and InvestingPro Tips that may provide a deeper understanding of SCWorx's current situation:
InvestingPro data reveals that SCWorx has a market capitalization of just 2.5 million USD, which is relatively small and can contribute to the stock's volatility. In line with this, one of the InvestingPro Tips points out that the stock price movements of SCWorx are indeed quite volatile, which could be a factor for investors to consider, especially in light of the recent auditing issues.
Another critical financial aspect is the company's profitability. SCWorx has not been profitable over the last twelve months, as indicated by the negative P/E Ratio (Adjusted) of -1.97. This metric, coupled with a negative Return on Assets of -18.45%, might raise concerns about the company's ability to generate profits from its assets.
Despite these challenges, SCWorx has shown a strong return over the last three months, with a 42.38% price total return, which could signal a positive momentum for the stock. Still, it is important to note that SCWorx does not pay a dividend to shareholders, as highlighted by one of the InvestingPro Tips. This might influence the investment decisions of those looking for regular income from their stock holdings.
For investors seeking additional insights and tips on SCWorx, there are more detailed analyses available. By visiting https://www.investing.com/pro/WORX, you can access a comprehensive list of InvestingPro Tips. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes an array of advanced financial metrics and expert insights to inform your investment strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.