DALLAS, TX – Blackboxstocks Inc. (NASDAQ:BLBX), a computer programming services company with a market capitalization of $7.41 million and currently trading at $2.06 per share, has reported non-compliance with two Nasdaq listing rules, potentially leading to delisting from the exchange.
The company, headquartered in Dallas, Texas, disclosed the compliance issues in a recent SEC filing. According to InvestingPro data, the company's overall financial health score is rated as weak.
The first issue pertains to Nasdaq Listing Rule 5620(a), which requires companies to hold an annual meeting of stockholders within one year of their fiscal year's end. Blackboxstocks failed to convene its 2024 annual meeting by the December 31, 2024, deadline. The meeting is now scheduled for February 7, 2025.
Additionally, the company reported non-compliance with Nasdaq Listing Rule 5605 concerning board and committee composition following the unexpected passing of director Ray Balestri on Monday. His death left the company's board without a majority of independent directors and its Audit Committee with less than the required three independent members, both of which are mandated by Nasdaq rules.
These governance challenges come as the stock has declined by 27.34% over the past six months, with a current ratio of 0.36 indicating potential liquidity concerns.
Blackboxstocks is currently considering options to regain compliance within the cure period provided by Nasdaq. The company's stock continues to trade on The NASDAQ Capital Market under the ticker BLBX, but failure to address these governance issues could result in delisting.
This news follows the company's recent name change from SMSA Ballinger Acquisition Corp, which took place on January 25, 2013. While Blackboxstocks has not provided any further details on the steps it will take to regain compliance, the situation is under review.
InvestingPro analysis suggests the stock is currently undervalued, though investors should note that analysts don't expect profitability this year. Subscribers can access 7 additional ProTips and comprehensive financial metrics on the platform.
Investors and stakeholders are awaiting further announcements as the company works to resolve these issues. All information is based on the company's latest SEC filing.
In other recent news, Blackboxstocks Inc. has made significant changes in its accounting department and set a date for its annual meeting. The company recently transitioned to a new certifying accountant, Victor Mokuolo CPA PLLC, following the dismissal of its former accounting firm, Turner Stone & Company. This change comes after the company reported a revenue decline of 18.5% in the last twelve months.
There were no disagreements between Blackboxstocks and Turner Stone & Company on any accounting principles, practices, financial statement disclosure, or auditing scope. The company also confirmed there were no consultations with Victor Mokuolo CPA PLLC regarding the audit or the company's financial statements during the two most recent fiscal years.
In addition to the accounting change, Blackboxstocks has announced December 27, 2024, as the date for its 2024 Annual Meeting of Stockholders. The record date for stockholders eligible to receive notice and vote at the meeting is set for the close of business on October 28, 2024.
The specifics regarding the time and location of the 2024 Annual Meeting will be provided in the company's proxy statement, which will be filed prior to the meeting date. These developments are a part of the recent changes within the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.