MINNEAPOLIS - OneMedNet Corporation (NASDAQ:ONMD), a provider of clinical imaging and Real World Data (RWD) services, has received a notice from Nasdaq due to non-compliance with listing rules after failing to file its quarterly report on time. The Nasdaq Listing Qualifications Department issued the notice after the company did not submit its Form 10-Q for the quarter ending September 30, 2024, in a timely manner.
The company had previously been granted an extension until December 11, 2024, to file its overdue quarterly reports for the periods ending March 31 and June 30, 2024. Now, OneMedNet must also include the latest delinquent filing within this extended deadline to regain compliance with Nasdaq's Listing Rule 5250(c)(1), which mandates timely submission of periodic reports to the Securities and Exchange Commission (SEC).
OneMedNet has until December 6, 2024, to present an updated plan to Nasdaq on how it intends to comply with the listing rule. The company has stated it is working diligently to complete the delinquent filings and intends to submit them as soon as possible to maintain its listing on The Nasdaq Capital Market. However, there is no guarantee that OneMedNet will be able to regain or maintain compliance with the listing requirements.
The notice from Nasdaq does not immediately affect the trading of OneMedNet's common stock or warrants. The company specializes in managing diverse clinical data types, including electronic health records, lab results, and medical imaging, through its iRWD™ platform. OneMedNet's network consists of over 1,400 healthcare system and provider sites, and it aims to support research across various medical domains.
This news is based on a press release statement from OneMedNet Corporation and reflects the company's current situation regarding Nasdaq listing compliance.
In other recent news, OneMedNet Corporation has reported a series of significant developments. The company announced a restatement of its financial statements for the year ended December 31, 2023, due to inaccuracies in its accounting. This decision was made following the appointment of a new auditor, WithumSmith+Brown, PC, after the dismissal of its previous accounting firm, BF Borgers CPA PC.
Simultaneously, OneMedNet faces the threat of Nasdaq delisting due to non-compliance with several listing requirements, including a shortfall in its Market Value of Listed Securities and net income from continuing operations. The company has been granted a 180-day period to regain compliance, and it's also working to rectify a minimum bid price deficiency.
In the midst of these challenges, OneMedNet secured approximately $1.7 million in follow-on funding from a private placement with an affiliate of Off the Chain Capital. The funds are intended for working capital and general corporate purposes, with a portion allocated for the purchase of Bitcoin.
Furthermore, the company has seen a significant leadership transition with the appointment of Bob Golden as Chief Financial Officer, who brings over four decades of financial management experience to the role. These are the recent developments in the operations of OneMedNet.
InvestingPro Insights
OneMedNet Corporation's recent Nasdaq compliance issues are reflected in its financial performance and market valuation. According to InvestingPro data, the company's market capitalization stands at $32.15 million, indicating a relatively small-cap status that aligns with its listing on the Nasdaq Capital Market.
The company's financial health appears precarious, as highlighted by several InvestingPro Tips. OneMedNet is not profitable over the last twelve months, with a negative P/E ratio of -2.13. This unprofitability is further emphasized by the company's operating income margin of -819.68% for the last twelve months as of Q4 2023, suggesting significant operational challenges.
Despite these financial hurdles, OneMedNet has shown a significant return over the last week, with a 17.86% price total return. This recent uptick could indicate investor optimism about the company's efforts to address its Nasdaq compliance issues. However, it's important to note that the stock has fallen significantly over the last year, with a one-year price total return of -73.88%.
The company's valuation metrics present a mixed picture. While OneMedNet is trading at a high revenue valuation multiple, InvestingPro Tips suggest that its valuation implies a strong free cash flow yield. This contrast may reflect market uncertainty about the company's future prospects given its current regulatory challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide further insight into OneMedNet's financial situation and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.