OneMedNet Corporation (NASDAQ:ONMD), a provider of commercial physical and biological research services, has been notified by The Nasdaq Stock Market LLC of its failure to comply with several listing requirements. On Monday, the company disclosed that Nasdaq found its Market Value of Listed Securities (MVLS) below the mandated $35 million for 30 consecutive business days.
Additionally, OneMedNet does not meet the stockholders’ equity minimum of $2.5 million and the net income from continuing operations threshold of $500,000.
The notice from Nasdaq, dated October 8, 2024, serves as a warning rather than an immediate threat of delisting. OneMedNet has been granted a 180-day period, until April 7, 2025, to address these deficiencies and regain compliance. To achieve this, the company's MVLS must close at or above $35 million for at least ten consecutive business days within this timeframe.
Should OneMedNet fail to meet the requirements by April 7, 2025, Nasdaq will issue a delisting notice, although the company would have the right to appeal such a decision. OneMedNet has expressed its intention to closely monitor its MVLS and consider possible solutions to regain compliance.
This development follows the company's previous identity as Data Knights Acquisition Corp. before its name change on March 4, 2021. The company is headquartered in Eden Prairie, MN, and is incorporated in Delaware. The current situation poses a significant challenge for OneMedNet, as maintaining Nasdaq listing is crucial for its visibility and investor relations.
However, OneMedNet's management has conveyed their commitment to ensuring the company meets Nasdaq's listing criteria within the allotted compliance period. This information is based on the latest 8-K filing with the Securities and Exchange Commission.
InvestingPro Insights
Recent InvestingPro data sheds light on OneMedNet's (NASDAQ:ONMD) financial challenges, providing context to the Nasdaq compliance issues. The company's market capitalization stands at a mere $22.74 million, well below the $35 million MVLS requirement. This aligns with an InvestingPro Tip indicating that the stock has taken a significant hit recently, with a striking 14.16% decline in just the past week and a 93.95% drop over the last year.
The company's financial health appears precarious, with InvestingPro data showing a negative gross profit of $0.13 million and an alarming operating income margin of -819.68% for the last twelve months. These figures underscore OneMedNet's struggle to meet Nasdaq's net income requirements. An InvestingPro Tip also highlights that the company is not profitable over the last twelve months, further explaining its listing compliance challenges.
For investors seeking a deeper understanding of OneMedNet's situation, InvestingPro offers 5 additional tips that could provide valuable insights into the company's prospects and challenges ahead.
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