AppTech Payments Corp. (NASDAQ:APCX), a provider of prepackaged software services, is confronting the risk of delisting from the Nasdaq Capital Market after failing to meet the exchange's minimum bid price and stockholders' equity requirements. The company, headquartered in Carlsbad, California, was notified by Nasdaq on May 9, 2024, that its common stock had not maintained the minimum $1.00 per share bid price over the last 30 consecutive business days, as mandated by Nasdaq Listing Rule 5550(a)(2).
Subsequently, on August 21, 2024, AppTech received another notice for not complying with the Nasdaq Listing Rule 5550(b)(1), which requires maintaining a minimum of $2,500,000 in stockholders’ equity. The company was given a delisting determination letter on November 6, 2024, stating that it had not regained compliance with the minimum bid price requirement. AppTech was allowed to request an appeal before the Nasdaq Hearings Panel by November 13, 2024, which it did on November 12.
The Nasdaq Hearings Panel has scheduled an oral hearing for January 14, 2025, to review AppTech's appeal. Until the Panel issues a final written decision following the hearing, the delisting action has been stayed. AppTech plans to present a strategy to regain compliance with Nasdaq's listing requirements at the hearing.
The company's future on the Nasdaq Capital Market remains uncertain as it awaits the Panel's final decision. There is no guarantee that AppTech's compliance plan will be accepted or that it will successfully meet Nasdaq's listing standards thereafter.
In other recent news, AppTech Payments Corp. is grappling with potential delisting from Nasdaq due to non-compliance with minimum bid price and stockholders' equity requirements. These are recent developments that have seen the company actively working to address these issues of non-compliance, including requesting a hearing before the Nasdaq Hearings Panel to appeal the delisting determination.
In an effort to bolster its financial standing, AppTech has undertaken several strategic moves, including a successful warrant exercise resulting in the issuance of over half a million freely tradeable shares.
Further, the company entered into an agreement with a warrant holder, leading to the issuance of approximately 1.67 million shares at a reduced price, generating an estimated $1.17 million in gross proceeds. It also priced a public offering of 2 million shares at $1.00 each, aiming to raise $2 million before deductions, managed by EF Hutton LLC.
AppTech has also announced a strategic partnership with FISB Solutions to modernize core banking systems for community banks, marking a significant step in its business operations.
InvestingPro Insights
AppTech Payments Corp.'s (NASDAQ:APCX) struggle to maintain its Nasdaq listing is reflected in its recent financial performance and market metrics. According to InvestingPro data, the company's market capitalization stands at a modest $13.13 million, underscoring its small-cap status. The stock's recent performance has been particularly challenging, with a 36.67% decline in the past month and a substantial 73.61% drop over the last year.
These figures align with two key InvestingPro Tips: "Stock has fared poorly over the last month" and "Price has fallen significantly over the last year." These trends directly relate to AppTech's difficulty in maintaining the minimum $1.00 per share bid price required by Nasdaq.
Additionally, the company's financial health appears precarious. An InvestingPro Tip notes that "Short term obligations exceed liquid assets," which may contribute to the company's struggle to meet Nasdaq's stockholders' equity requirement. The company is also "Not profitable over the last twelve months," with a negative operating income of $11.14 million for the last twelve months as of Q3 2024.
Despite these challenges, analysts anticipate sales growth in the current year, according to another InvestingPro Tip. This could be a crucial factor in AppTech's presentation to the Nasdaq Hearings Panel as part of its compliance strategy.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide further insights into AppTech's financial situation and market position.
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