ISSC Receives Nasdaq Delisting Notice for Bid Price Non-Compliance

TL;DR

**ISSC got a delisting notice from Nasdaq for low stock price; they have until July 29 to fix it.**

AI Summary

Innovative Solutions & Support, Inc. (ISSC) announced on January 31, 2024, that it received a delisting notice from the Nasdaq Stock Market LLC because its common stock failed to maintain a minimum bid price of $1.00 for 30 consecutive business days. The company has 180 calendar days, until July 29, 2024, to regain compliance. This matters to investors because failure to meet the bid price requirement could lead to the stock being delisted from Nasdaq, potentially reducing its liquidity and appeal to institutional investors.

Why It Matters

Delisting from Nasdaq could significantly reduce the stock's visibility and trading volume, making it harder for investors to buy or sell shares.

Risk Assessment

Risk Level: high — The company faces a significant risk of delisting, which could severely impact its stock's liquidity and investor confidence.

Analyst Insight

A smart investor would closely monitor ISSC's stock performance and any announced plans to regain compliance, as failure to do so by July 29, 2024, could lead to delisting and further price depreciation.

Key Numbers

• $1.00 — Minimum Bid Price (The threshold ISSC's common stock failed to maintain for 30 consecutive business days.)
• 180 — Calendar Days (The period ISSC has to regain compliance with Nasdaq's listing rule.)

Key Players & Entities

• Innovative Solutions & Support, Inc. (company) — the registrant receiving the delisting notice
• Nasdaq Stock Market LLC (company) — the exchange from which the company received the delisting notice
• $1.00 (dollar_amount) — the minimum bid price requirement
• January 31, 2024 (date) — date of the earliest event reported (receipt of delisting notice)
• July 29, 2024 (date) — deadline to regain compliance with Nasdaq's bid price rule

Forward-Looking Statements

• ISSC will implement a reverse stock split to increase its share price above $1.00. (Innovative Solutions & Support, Inc.) — medium confidence, target: July 29, 2024
• ISSC's stock price will experience increased volatility as the compliance deadline approaches. (ISSC stock) — high confidence, target: July 29, 2024

FAQ

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share ISSC Nasdaq Stock Market LL
• $72,990 — Company having paid a consulting fee of $72,990 in November 2023 to a company in which

Filing Documents

• tm244967d1_8k.htm (8-K) — 23KB
• 0001104659-24-010027.txt ( ) — 191KB
• issc-20240131.xsd (EX-101.SCH) — 3KB
• issc-20240131_lab.xml (EX-101.LAB) — 33KB
• issc-20240131_pre.xml (EX-101.PRE) — 22KB
• tm244967d1_8k_htm.xml (XML) — 3KB

01

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. As previously disclosed, on January 29, 2024, Innovative Solutions and Support, Inc. (the " Company ") notified The Nasdaq Stock Market (" Nasdaq ") of the Company's inadvertent non-compliance with Nasdaq's audit committee composition requirements set forth in Nasdaq Listing Rule 5605(c)(2), which requires, among other things, an audit committee to consist of at least three members, each of whom is independent. The non-compliance was a result of Parizad Olver Parchi, a member of the Audit Committee, not qualifying as independent pursuant to Nasdaq Listing Rule 5605(c)(2)(A)(ii) and Rule 10A-3(b)(i) under the Securities Exchange Act of 1934, as amended (the " Act "), as a result of a wholly owned subsidiary of the Company having paid a consulting fee of $72,990 in November 2023 to a company in which Ms. Olver is the managing partner and has an ownership interest for services provided in connection with the sale of the Company's 2008 Super King Air B200GT SN BY-50. Pursuant to Rule 10A-3(b)(ii)(A) under the Act, a director will not be deemed independent for purposes of service on a company's audit committee if the director has received any compensatory fee, whether directly or indirectly. To address this matter, effective as of January 28, 2024, the Company removed Ms. Olver from the Audit Committee and appointed Mr. Stephen Belland to take her place. The notification to Nasdaq was made in accordance with Nasdaq Rule 5625, which requires a company with common securities listed on Nasdaq to report any noncompliance of Nasdaq's Rule 5600 series. This report shall not constitute an admission that the inadvertent noncompliance reported herein is material. Following such actions, on January 31, 2024, Nasdaq issued a letter to the Company acknowledging the non-compliance described above and confirming that, subject to the satisfaction of applicable disclosur

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