Know Labs Faces Compliance Challenges with NYSE American
Compliance Notice from NYSE American
Know Labs, Inc. (NYSE American: KNW), an innovative leader in non-invasive diagnostics technology, has recently announced that it received a compliance notice from the NYSE American. This notice, dated September 27, 2024, indicates that the company is not currently meeting the continued listing standards required to maintain its position on the exchange.
Understanding the Listing Standards
The notice specifies non-compliance with two particular standards set forth in the NYSE American Company Guide. Specifically, it addresses Sections 1003(a)(ii) and 1003(a)(iii), which require companies to maintain a certain level of stockholders' equity. For companies that have reported losses from operations, maintaining stockholders' equity of at least $4 million or $6 million over certain fiscal periods is crucial.
Current Status of the Common Stock
Despite this notice, there is no immediate impact on the listing of Know Labs' common stock. The stocks will continue to be traded on the NYSE American under the symbol "KNW," though they will now carry the designation “.BC” reflecting their below-compliance status. This designation serves to inform investors of the current situation while the company works towards compliance.
Plan for Regaining Compliance
Know Labs is now tasked with developing a comprehensive compliance plan, which must be submitted by October 27, 2024. This plan will outline the steps the company intends to take to restore compliance by March 27, 2026. Preparing this plan is a significant aspect of the company’s immediate strategy.
Business Growth and Strategic Progress
Part of Know Labs' plan will leverage anticipated business progress and technological advancements. The company aims to make significant announcements regarding strategic partnerships that could enhance its market position. By highlighting potential collaborations and developments, Know Labs hopes to alleviate the pressure from short-sellers and improve its stock’s valuation.
Looking Ahead
Despite the challenges presented by the compliance notice, the outlook is hopeful. Know Labs is committed to working diligently to meet the necessary standards and assure investors of its potential. However, achieving compliance within the specified time may not be guaranteed, as various factors could influence the outcome.
About Know Labs, Inc.
Know Labs, Inc. is a public company traded on the NYSE American Exchange under the ticker symbol “KNW.” The company's cutting-edge platform utilizes spectroscopy technology to analyze various substances by capturing distinct molecular signatures. This advanced technology is set to be integrated into numerous formats, including wearable devices. Know Labs is particularly focused on developing its first application: a non-invasive glucose monitoring device aimed at delivering real-time information on blood glucose levels, pending FDA clearance.
Frequently Asked Questions
1. What does the NYSE compliance notice mean for Know Labs?
The compliance notice indicates that Know Labs is not currently meeting certain financial standards required by the NYSE American, but its stock will continue to be traded.
2. What are the specific requirements Know Labs must meet?
Know Labs must establish stockholders' equity of at least $4 million or $6 million over specific fiscal periods depending on reported losses.
3. When must Know Labs submit its compliance plan?
The compliance plan needs to be submitted by October 27, 2024, outlining how the company intends to regain compliance.
4. Will the compliance notice impact Know Labs’ operations?
No, the notice does not affect the company's ongoing business operations or reporting responsibilities.
5. What is the company’s intended product?
Know Labs is developing a non-invasive glucose monitor, aiming to provide accessible and real-time blood glucose information for users.
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