iCoreConnect Inc. (NASDAQ:ICCT), a provider of prepackaged software services, is facing delisting from the NASDAQ Stock Market following recent changes to its board of directors. The company was notified on August 7, 2024, that it no longer meets NASDAQ's requirement of having a majority of independent directors on its board, as well as the necessary composition for its audit and compensation committees.
This notice of non-compliance was triggered by the resignation of Harry Travis from the board on June 30, 2024, which left iCoreConnect without the required board majority and committee independence as outlined by NASDAQ Listing Rules 5605(b)(1)(A) and 5605(c)(4). The company is no longer eligible for a cure period typically granted for regaining compliance with these rules.
iCoreConnect has 45 calendar days from the date of notification to submit a plan to NASDAQ detailing how it intends to regain compliance. If NASDAQ accepts this plan, the company may be granted an extension of up to 180 calendar days from the date of the initial notice to demonstrate compliance.
In a move that could be seen as part of its efforts to address the compliance issue, iCoreConnect announced the appointment of Yvonne Hyland to its board of directors on the same day it received the delisting notification. Hyland's appointment extends to serving on the Audit Committee, Compensation Committee, and Nominating and Governance Committee of the board. She will receive the standard compensation program for non-employee directors.
The information regarding these corporate developments is based on a press release statement and the company's recent filing with the Securities and Exchange Commission. The company, formerly known as FG Merger Corp., is headquartered in Ocoee, Florida and is incorporated in Delaware. The current business address and contact details remain unchanged from the previous report.
In other recent news, iCoreConnect Inc., a provider of prepackaged software services, has been grappling with potential NASDAQ delisting due to non-compliance with the exchange's minimum bid price requirement.
The company has been granted 180 days to meet the bid price requirement, with a possibility of an additional 180-day period if all other initial listing standards are met. In response, iCoreConnect is considering all available options to address this issue, including a potential reverse stock split.
In other recent developments, iCoreConnect has announced amendments to its financial agreements and the issuance of new equity securities. The company has extended the maturity dates of two convertible promissory notes to July 31, 2024, issuing additional shares of common stock to note holders as inducement. Additionally, a new convertible promissory note has been issued with a principal amount of $397,622.
Further, iCoreConnect has expanded into Tennessee, securing an endorsement from the Tennessee Dental Association for seven of its software solutions. This endorsement is part of iCoreConnect's growth strategy, which includes gaining product endorsements from state healthcare associations and initiating co-branded marketing campaigns.
The company currently has a portfolio of 16 SaaS enterprise solutions and over 100 product endorsements from state or regional healthcare associations in the United States.
InvestingPro Insights
In light of iCoreConnect Inc.'s (NASDAQ:ICCT) recent challenges with NASDAQ listing compliance, it's important for investors to consider the company's financial health and market performance. According to InvestingPro data, iCoreConnect operates with a small market cap of approximately $4.79 million. The company has shown revenue growth, with a 16.06% increase over the last twelve months as of Q1 2024, and a notable quarterly revenue growth of 47.98% in Q1 2024.
However, the financials also reveal some concerns: iCoreConnect is not currently profitable, posting a negative operating income margin of -132.47% and a significant EBITDA decline of -159.51% over the last twelve months as of Q1 2024. Furthermore, the stock has experienced a substantial decline, with a 95.6% drop in the one-year total return.
InvestingPro Tips suggest that the stock is in oversold territory, which could be of interest to contrarian investors. Additionally, the company's short-term obligations exceed its liquid assets, which might raise flags about its financial stability in the near future. For investors seeking more in-depth analysis, there are over 10 additional InvestingPro Tips available, which can be accessed by visiting the dedicated page for iCoreConnect on Investing.com.
These insights and tips are particularly relevant for investors who are monitoring iCoreConnect's ability to navigate through its NASDAQ compliance issues and are considering the company's financial stability and market performance as part of their investment decision-making process.
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