Neuronetics , Inc. (NASDAQ:STIM), a medical device company, has announced it regained compliance with Nasdaq's minimum bid price requirement. The company, which specializes in surgical and medical instruments and apparatus, received a notification from the Nasdaq Listing Qualifications Department confirming that the issue concerning its stock price has been resolved and the matter closed.
The compliance issue arose when Neuronetics' common stock did not meet the $1.00 per share minimum bid price requirement for continued listing on The Nasdaq Global Market. According to Nasdaq Listing Rule 5550(a)(2), known as the Bid Price Rule, the company's stock needed to maintain a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business days.
Neuronetics achieved this requirement by November 11, 2024, ensuring its common stock remained listed on the Nasdaq Global Market. This development followed an earlier notice of non-compliance that the company disclosed in a Current Report on Form 8-K filed on October 4, 2024.
This announcement is based on information from a recent SEC filing by Neuronetics, Inc.
In other recent news, Neuronetics reported a dip in second-quarter revenue to $16.5 million, attributed to altered purchasing patterns influenced by a cyberattack. Nevertheless, an 18% growth in the utilization of local consumables suggests robust demand for its treatments. Following these results, William Blair downgraded Neuronetics' stock rating from Outperform to Market Perform.
The company is preparing for a merger with Greenbrook TMS, anticipated to generate revenue and cost synergies, potentially extending insurance payor contracts to other customers, and boosting brand recognition for NeuroStar TMS therapy. In parallel, Neuronetics is investing in its Better Me Guarantee Program and launching a television advertising campaign in Tampa Bay, Florida.
Furthermore, the company presented data at the American Academy of Child and Adolescent Psychiatry Annual Meeting, showcasing the benefits of its NeuroStar Transcranial Magnetic Stimulation System for treating major depressive disorder in adolescents and young adults.
Despite recent challenges, Neuronetics reaffirmed its full-year 2024 revenue guidance, set between $78 million and $80 million, reflecting its strategic steps to navigate current challenges, intending to achieve positive cash flow in 2025.
InvestingPro Insights
While Neuronetics has regained compliance with Nasdaq's minimum bid price requirement, recent InvestingPro data reveals some challenges for the company. The stock has experienced significant volatility, with a 42.02% decline in the past week and a 73.05% drop over the last six months. This aligns with the InvestingPro Tip that the "stock has taken a big hit over the last six months."
Despite these setbacks, Neuronetics maintains a revenue of $72.06 million for the last twelve months as of Q2 2024, with a 6.22% revenue growth. However, the company is not currently profitable, as indicated by its negative operating income of -$26.66 million and an EBITDA of -$24.65 million for the same period.
InvestingPro Tips also highlight that Neuronetics is "quickly burning through cash" and that "analysts do not anticipate the company will be profitable this year." These insights provide context to the company's recent compliance issues and suggest ongoing financial challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Neuronetics, providing a deeper understanding of the company's financial position and market performance.
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