ReShape Lifesciences Inc (NASDAQ:RSLS)., a pharmaceutical company based in San Clemente, California, has been notified by the Nasdaq Stock Market that it is currently not in compliance with the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market. The company, trading under the ticker NASDAQ:RSLS and currently valued at just $3.93 million in market capitalization, disclosed this information in a recent SEC filing.
In accordance with Nasdaq Listing Rule 5550(b)(1), ReShape Lifesciences has 45 calendar days from the date of the notice to submit a plan to regain compliance. If the plan is accepted by Nasdaq, the company may be granted an extension of up to 180 calendar days from the notice date to demonstrate compliance.
ReShape Lifesciences, previously known as Obalon Therapeutics (NASDAQ:OBLN_old) Inc., has indicated its intention to actively monitor its performance relative to the listing standards. The company plans to consider available options to address the deficiency and regain compliance with Nasdaq's rules.
The company, with its principal executive offices located at 18 Technology Drive, Suite 110, Irvine, CA, operates within the pharmaceutical preparations industry under the standard industrial classification code 2834. It is incorporated in Delaware and has a fiscal year-end on December 31.
This news comes as a significant compliance challenge for ReShape Lifesciences, which must now address the issue to maintain its listing on the Nasdaq Capital Market. The company's response to the notice will be closely watched by investors and market observers. The information provided is based on the company's statement in a recent press release.
In other recent news, ReShape Lifesciences has reported encouraging developments.
The company's third-quarter earnings for 2024 showed a 16.6% revenue increase over the previous quarter, and a 6.4% year-over-year growth, reaching a total of $2.3 million. The company also successfully cut operating expenses by over 40% from the previous year, leading to a gross profit margin of 62.8%.
In addition to financial growth, ReShape Lifesciences has also announced strategic mergers. One of these is with Vyome Therapeutics, and another involves an asset sale to Biorad for $5.16 million. These moves aim to enhance shareholder value and create a combined entity valued at approximately $130 million.
The company has also received a $241,000 NIH grant for their Diabetes Bloc-Stim Neuromodulation device, bringing their total NIH funding to $1.15 million. This is part of their focus on the commercial launch of the Lap-Band 2.0 FLEX, which has recently been approved by Health Canada.
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