SCWorx Corp. Responds to NASDAQ Compliance Notice
On August 19, 2024, SCWorx Corp. (the “Company”) received a notification from the Nasdaq Stock Market indicating that it has not met the requirements for continued listing under Nasdaq Listing Rule 5250(c)(1). This issue arises from the Company’s failure to submit its Quarterly Report on Form 10-Q for the period ending June 30, 2024, by the deadline of August 14, 2024. Furthermore, the Company is also behind in filing its Form 10-K for the year ended December 31, 2023, as well as its Form 10-Q for the quarter ending March 31, 2024.
Background on Audit Challenges
The Company had previously announced that the SEC’s Order, which denied BF Borgers CPA PC the ability to appear or practice before the Commission as an accountant, led to the board of directors dismissing BF Borgers CPA PC from its role as the Company’s independent registered public accounting firm on May 7, 2024. This decision has caused delays in the completion of the Company’s periodic reports.
Engagement of New Auditor
To address these issues, SCWorx Corp. has appointed Astra Audit & Advisory, LLC as its new auditor. This partnership aims to expedite the audit and review process for its annual and quarterly financial statements. The Company is dedicated to completing these tasks and filing its 10-K and 10-Q reports promptly to restore compliance with its reporting obligations.
Strategy for Regaining Compliance
SCWorx Corp. has put forward a revised plan to Nasdaq to regain compliance with the necessary standards, targeting a resolution by October 14, 2024. The Nasdaq Staff has accepted this plan, allowing the Company an extension until the specified date to meet its periodic reporting requirements. SCWorx Corp. is hopeful about submitting all outstanding reports by this extended compliance deadline.
Dedication to Transparency
SCWorx Corp. is committed to being transparent with its shareholders and stakeholders as it navigates these regulatory hurdles. The Company is taking all necessary measures to ensure it meets its filing obligations to continue its operations on the Nasdaq Stock Market.
Contact Information
For any further inquiries, interested individuals can contact the Company via email at ir@scworx.com.
Frequently Asked Questions
What led to the notice from Nasdaq?
SCWorx Corp. received the notice because it failed to file the required quarterly and annual reports by their respective deadlines.
Who is SCWorx Corp.'s new auditor?
The Company has appointed Astra Audit & Advisory, LLC to manage its audit and financial statement review.
What actions is the Company taking to regain compliance?
SCWorx Corp. has presented a revised compliance plan to Nasdaq and has been granted an extension until October 14, 2024.
What does Nasdaq Listing Rule 5250(c)(1) entail?
This rule mandates that listed companies adhere to timely filing requirements for their financial reports, which is essential for ensuring transparency and compliance in the market.
How can investors stay updated on SCWorx Corp.'s progress?
Investors can keep themselves informed by following the Company’s press releases and communications, or by directly contacting the investor relations department.
