SCWorx Corp. Receives Notice from NASDAQ Stock Market Pertaining to its 10-Q for the quarter ended March 31, 2024
Rhea-AI Summary
On May 17, 2024, SCWorx Corp received a notice from Nasdaq regarding the company's failure to file its Form 10-Q for the quarter ended March 31, 2024, and its Form 10-K for the year ended December 31, 2023. This failure breaches Nasdaq Listing Rule 5250(c)(1), which mandates timely filing of required reports. The delay follows the SEC's order against their previous auditor, BF Borgers CPA PC, leading to its dismissal and the hiring of Astra Audit & Advisory, on May 21, 2024. SCWorx plans to re-audit its 2022 financial statements and submit the overdue filings promptly. The company aims to regain compliance and will submit a plan to Nasdaq by June 17, 2024. Acceptance of their compliance plan by Nasdaq is not guaranteed, and any granted exception will not extend beyond October 14, 2024.
Positive
- SCWorx has engaged a new auditor, Astra Audit & Advisory, , to address financial reporting issues.
- The company plans to re-audit the 2022 financial statements, indicating a commitment to accuracy.
- SCWorx intends to file overdue reports promptly to regain compliance with Nasdaq listing standards.
Negative
- SCWorx failed to file Form 10-Q for Q1 2024 and Form 10-K for 2023 on time.
- Non-compliance with Nasdaq Listing Rule 5250(c)(1) could lead to delisting if not resolved.
- The re-auditing process and filing delays create uncertainty about the company’s financial status.
- There is no assurance that Nasdaq will accept SCWorx's plan to regain compliance.
- Any staff exception granted by Nasdaq will only last until October 14, 2024, adding time pressure.
News Market Reaction – WORX
On the day this news was published, WORX declined 2.33%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
NEW YORK, N.Y., May 21, 2024 (GLOBE NEWSWIRE) -- On May 17, 2024, SCWorx Corp. (the “Company”) received a further notice (the “Notice”) from The Nasdaq Stock Market, LLC (“Nasdaq”) indicating that, as a result of not having timely filed its Form 10-Q for the period ended March 31, 2024, and because it remains delinquent in filing its Form 10-K for the year ended December 31, 2023, the Company has failed to satisfy a standard for continued listing, namely Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic reports with the SEC.
As previously disclosed, due to the SEC’s Order denying BF Borgers CPA PC (“BF Borgers”) the privilege of appearing or practicing before the Commission as an accountant, on May 7, 2024, the board of directors of the Company dismissed BF Borgers CPA PC as the Company’s independent registered public accounting firm.
On May 21, 2024, the Company filed a Form 8-K announcing that it has engaged a new auditor, Astra Audit & Advisory, LLC. In accordance with the SEC’s guidance to companies affected by the suspension of BF Borgers, the new auditor engagement includes re-auditing the 2022 financial statements previously audited by BF Borgers. The Company intends to complete the audit of its financial statements and file its 10K and 10Q as quickly as possible to regain compliance with its periodic disclosure obligations.
The Company intends to submit to Nasdaq a plan to regain compliance with respect to these delinquent reports no later than June 17, 2024, the due date for submitting such plan.
There is no assurance that the Nasdaq Staff will accept the Company’s plan to regain compliance. Any Staff exception to allow the Company to regain compliance, if granted, will be limited to a maximum of 180 calendar days from the due date of the Company’s 10K, or October 14, 2024.
Contacts:
ir@scworx.com
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Source: SCWorx Corp.
FAQ
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