CHRISTIANSTED, U.S. Virgin Islands - Altisource Asset Management Corporation (NYSE American: AAMC), a provider of private credit and a licensee of electric vehicle efficiency technology, has been notified by the NYSE American of its non-compliance with the exchange's continued listing standards. The notice, received on May 31, 2024, relates to stockholders' equity levels and losses over the past five fiscal years.
The company has been asked to submit a compliance plan by June 30, 2024, outlining steps to regain compliance with Sections 1003(a)(ii) and (iii) of the NYSE American Company Guide by December 1, 2024. If the plan is accepted, Altisource may continue trading during the plan period but will be closely monitored for progress.
During this period, Altisource's common stock will remain listed under the ticker symbol "AAMC" but will bear the ".BC" designation indicating its below compliance status. The notice does not currently affect trading or the company's SEC reporting requirements.
Altisource's business operations include capital provision to under-served markets and the development and licensing of a control system aimed at enhancing electric vehicle efficiency. The company's forward-looking statements, which cover strategies and potential business outcomes, are subject to risks and uncertainties that could cause actual results to differ materially.
Investors should note that this report is based on a press release statement and does not endorse any claims made by the company. The situation is developing, and the company's ability to comply with the NYSE American's listing standards within the required timeframe cannot be assured.
In other recent news, Altisource Asset Management Corporation (AAMC) is making significant strides in the commercialization of their Alpha Control System, a project aimed at enhancing electric vehicle efficiency. Developed in partnership with UK-based Seabird Limited, the system is expected to significantly boost in-city driving range by 16-24% for delivery trucks, an additional market opportunity discovered during the commercialization phase.
AAMC's chairman, Bill Erbey, has outlined the company's focus on controlling expenditures to realize the potential of its assets, including the Alpha Control System. The objective is to reduce operating costs below $2.5 million annually and to minimize risks on the balance sheet.
A demonstrator vehicle has been procured for testing the system, and an initial commercial presentation is being developed. Despite the 9-to-18-month sales timeline, AAMC warns that the integration of the Alpha system into production processes will take several years post-contract signing.
These are recent developments within the company, which primarily focuses on the development and licensing of the Alpha Control System. The company holds a non-exclusive license for a set of patents related to this control system.
InvestingPro Insights
As Altisource Asset Management Corporation (AAMC) faces the challenge of complying with the NYSE American's listing standards, recent data from InvestingPro offers a snapshot of the company's financial health. According to the latest metrics, AAMC reported a significant revenue decline over the last twelve months as of Q1 2024, with a decrease of 82.1%. This could be a contributing factor to their non-compliance notice, as sustained financial losses can affect stockholders' equity levels.
Moreover, the company's stock has experienced considerable volatility, with a substantial 12.13% return over the last week, yet a troubling 95.03% decline over the past year. This high price volatility is an essential consideration for investors, as reflected in one of the InvestingPro Tips, which notes that AAMC generally trades with high price volatility. Additionally, another tip points out that the company's stock has fared poorly over the last month, with a 15.0% negative price total return, further underscoring the challenges it faces.
For investors seeking a deeper analysis of Altisource Asset Management Corporation, InvestingPro offers additional insights. There are 16 more InvestingPro Tips available for AAMC, which can be accessed by visiting https://www.investing.com/pro/AAMC. Readers interested in leveraging these insights can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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