SCWorx Corp. Addresses NASDAQ Compliance Notice
On August 19, 2024, the Nasdaq Stock Market notified SCWorx Corp. (the “Company”) that it has not satisfied a standard for continued listing as per Nasdaq Listing Rule 5250(c)(1). This non-compliance is due to the Company’s failure to file its Quarterly Report on Form 10-Q for the period ended June 30, 2024 by the due date of August 14, 2024. Additionally, the Company remains delinquent in filing its Form 10-K for the period ended December 31, 2023, as well as its Form 10-Q for the quarter ended March 31, 2024.
Background on Audit Issues
The Company previously disclosed that due to the SEC’s Order denying BF Borgers CPA PC the privilege of appearing or practicing before the Commission as an accountant, the board of directors dismissed BF Borgers CPA PC from its position as the Company’s independent registered public accounting firm on May 7, 2024, which resulted in a delay in the completion of the Registrant’s periodic reports.
New Auditor Engagement
In light of these challenges, SCWorx Corp. has engaged Astra Audit & Advisory, LLC as its new auditor to facilitate the completion of the audit and review of its annual and quarterly financial statements. The Company is committed to completing these processes and filing its 10-K and 10-Q reports as swiftly as possible to regain compliance with its reporting obligations.
Plan for Regaining Compliance
The Company has presented a revised plan to Nasdaq for regaining compliance with the aforementioned standard, aiming for a resolution by October 14, 2024. The Nasdaq Staff has accepted this plan, granting the Company an extension until the specified date to fulfill its periodic reporting obligations. SCWorx Corp. is optimistic about filing all outstanding reports on or before this extended compliance date.
Commitment to Transparency
SCWorx Corp. is committed to maintaining transparency with its shareholders and stakeholders as it navigates these regulatory challenges. The Company is taking the necessary steps to ensure that it meets all its filing requirements to continue its operation on the Nasdaq Stock Market.
Contact Information
For further inquiries, interested parties can reach out via email at ir@scworx.com.
Frequently Asked Questions
What prompted the notice from Nasdaq?
SCWorx Corp. received the notice due to its failure to file the required quarterly and annual reports by specified deadlines.
Who is the new auditor for SCWorx Corp.?
The Company has engaged Astra Audit & Advisory, LLC to oversee its audit and review of financial statements.
What steps is the Company taking to regain compliance?
SCWorx Corp. has submitted a revised compliance plan to Nasdaq and has been granted an extension until October 14, 2024.
What is the significance of Nasdaq Listing Rule 5250(c)(1)?
This rule ensures that listed companies meet timely filing requirements regarding their financial reports, which is crucial for maintaining transparency and compliance in the marketplace.
How can investors stay informed about SCWorx Corp. developments?
Investors can stay informed by following the Company’s press releases and communications, as well as reaching out directly to the investor relations department.
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