8-K: Vivos Therapeutics Believes It Regained Nasdaq Compliance After Capital Raise, But Future Funding Still Needed

Vivos Therapeutics believes it has regained compliance with Nasdaq's minimum stockholders' equity requirement following recent capital raises, but acknowledges the need for further funding to maintain compliance.

Summary

• Vivos Therapeutics was previously notified by Nasdaq that it needed to maintain a minimum stockholders' equity of $2.5 million to remain listed.
• The company was given until March 19, 2024, to regain compliance.
• Through capital raising activities in November 2023 and February 2024, Vivos believes it has met this requirement.
• The company has communicated with Nasdaq and is awaiting confirmation of compliance.
• Vivos anticipates Nasdaq will continue to monitor its compliance and could delist the company if it fails to maintain the minimum equity.
• The company believes it will need to raise additional equity capital to ensure ongoing compliance.
• Failure to maintain compliance and subsequent delisting would negatively impact the company's stock price, ability to raise capital, and overall reputation.

Sentiment

Score: 5

Explanation: The sentiment is neutral to slightly negative. While the company believes it has regained compliance, the need for further capital raises and the risk of delisting create uncertainty.

Positives

• Vivos Therapeutics believes it has successfully regained compliance with Nasdaq's minimum stockholders' equity requirement.
• The company has taken action through capital raises to address the compliance issue.

Negatives

• The company is not yet confirmed to be compliant by Nasdaq.
• Vivos acknowledges the need for further capital raises to maintain compliance.
• There is a risk that the company will be unable to raise sufficient capital.
• Delisting from Nasdaq would have a material adverse effect on the company.

Risks

• There is a risk that Nasdaq will not confirm that Vivos has regained compliance.
• The company may not be able to raise sufficient capital to maintain compliance.
• Delisting from Nasdaq would negatively impact the company's stock price, ability to raise capital, and reputation.
• The company's ongoing compliance will be monitored by Nasdaq and could be subject to delisting if it fails to maintain the minimum equity.

Future Outlook

The company anticipates needing to raise additional equity capital to maintain compliance with Nasdaq's minimum stockholders' equity requirement and avoid potential delisting.

Management Comments

• The Company believes that, as of the Compliance Date, it regained compliance with the Minimum Stockholders Equity Requirement.
• The Company further believes that it will need to raise additional equity capital to evidence continuing compliance with the Minimum Stockholders Equity Requirement.

Industry Context

This announcement highlights the challenges faced by smaller companies in maintaining listing requirements on major exchanges like Nasdaq, particularly in the current economic climate where access to capital can be difficult.

Comparison to Industry Standards

• Many small-cap companies face similar challenges in maintaining Nasdaq listing compliance, especially those in the biotech and medical device sectors.
• Companies like Vivos often rely on equity financing to fund operations and growth, making them vulnerable to fluctuations in market sentiment and investor appetite.
• The $2.5 million minimum equity requirement is a standard benchmark for Nasdaq Capital Market listings, and failure to meet this threshold can lead to delisting, a common issue for companies with limited operating history or profitability.

Stakeholder Impact

• Shareholders face the risk of delisting and a potential decrease in stock value.
• The company's ability to raise capital could be impacted by the delisting risk.
• The company's reputation could be damaged if it is delisted from Nasdaq.

Next Steps

• The company is awaiting confirmation from Nasdaq regarding its compliance status.
• The company will need to raise additional equity capital to maintain compliance.
• Nasdaq will continue to monitor the company's ongoing compliance.

Key Dates

Keywords

Nasdaq, compliance, stockholders' equity, capital raise, delisting, minimum equity, VVOS