IRVINE, Calif. - ToughBuilt Industries, Inc. (NASDAQ:TBLT) has received a notice from the Nasdaq Stock Market indicating a non-compliance with listing rules due to delayed financial filings. The company has not submitted its Form 10-Q for the first quarter ended March 31, 2024, and remains overdue on its Form 10-K for the year ended December 31, 2023.
The notice, dated May 22, 2024, follows a previous warning from Nasdaq, as disclosed in ToughBuilt's Form 8-K filed on April 25, 2024. The company has until June 8, 2024, to present a compliance plan for the late filings. If accepted by Nasdaq, ToughBuilt may be granted an extension until October 14, 2024, to file the overdue documents.
Although the notice does not immediately affect ToughBuilt's listing, failure to regain compliance could lead to delisting from the Nasdaq exchange. The company has expressed its intention to submit the required plan by the June deadline and is actively working to complete the necessary financial reports.
ToughBuilt, known for its innovative tools and accessories for the construction industry, has experienced significant growth since it began product sales in 2013. The company's offerings include a range of goods such as soft goods, kneepads, sawhorses, and work products, designed by an in-house team.
The information in this article is based solely on a press release statement from ToughBuilt Industries, Inc. The company's future filings and compliance with Nasdaq's rules are subject to risks and uncertainties, and there are no guarantees regarding the acceptance of its compliance plan or its ability to maintain its Nasdaq listing.
InvestingPro Insights
In light of ToughBuilt Industries' recent notice from Nasdaq regarding non-compliance, a closer examination of the company's financial health through InvestingPro data reveals some challenges. ToughBuilt, with a market capitalization of just $2.24 million, reflects a significantly small enterprise value in the industry. The company's Price / Book ratio stands at a low 0.27 as of the last twelve months ending Q3 2023, suggesting that the market values the company at less than its book value, which could be indicative of investor skepticism about the firm's assets or future growth prospects.
Furthermore, ToughBuilt's revenue has shown a decline, with a -0.45% change over the last twelve months as of Q3 2023, and a more concerning -31.79% quarterly revenue growth in Q1 2023. This contraction in revenue could be a contributing factor to the delayed financial filings and the subsequent notice of non-compliance from Nasdaq.
InvestingPro Tips for ToughBuilt indicate several red flags: the company operates with a significant debt burden and may have trouble making interest payments on debt. Moreover, ToughBuilt is trading at a low revenue valuation multiple and analysts do not anticipate the company will be profitable this year. These factors are essential considerations for investors monitoring the company's ability to navigate its financial challenges and maintain its listing status.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available, offering insights such as the company's cash burn rate and stock price volatility. With a total of 16 InvestingPro Tips, investors can gain a more comprehensive understanding of ToughBuilt's financial position and risks. To access these insights, visit InvestingPro and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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