SMSI Receives NASDAQ Delisting Notice on Dec 27, 2023

TL;DR

**SMSI got a delisting notice from NASDAQ, big trouble for stock liquidity.**

AI Summary

Smith Micro Software, Inc. (SMSI) filed an 8-K on January 2, 2024, reporting that on December 27, 2023, it received a notice from NASDAQ regarding its failure to satisfy a continued listing rule or standard. This means SMSI's common stock, traded under the symbol SMSI, is at risk of delisting from NASDAQ. This matters to investors because delisting can significantly reduce a stock's liquidity and make it harder to trade, potentially leading to a lower stock price.

Why It Matters

A potential delisting from NASDAQ could severely impact Smith Micro Software's stock liquidity and investor confidence, making shares less attractive and harder to sell.

Risk Assessment

Risk Level: high — The company's failure to meet NASDAQ's listing standards puts its stock at risk of delisting, which is a significant negative event for shareholders.

Analyst Insight

A smart investor would closely monitor Smith Micro Software, Inc.'s subsequent filings for updates on their plan to regain compliance with NASDAQ's listing standards and consider the increased risk of holding the stock given the delisting threat.

Key Players & Entities

• Smith Micro Software, Inc. (company) — the registrant filing the 8-K
• NASDAQ (company) — the exchange that issued the delisting notice
• SMSI (company) — the trading symbol for Smith Micro Software, Inc.
• December 27, 2023 (date) — date of earliest event reported, when the notice was received
• January 2, 2024 (date) — date the 8-K was filed

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share SMSI NASDAQ Indicate by che
• $1.00 m — ive business days having been below the $1.00 minimum bid price requirement for continu
• $1.00 — d price of the Common Stock is at least $1.00 per share for a minimum of ten consecut

Filing Documents

• smsi-20231227.htm (8-K) — 32KB
• 0000948708-24-000001.txt ( ) — 155KB
• smsi-20231227.xsd (EX-101.SCH) — 2KB
• smsi-20231227_lab.xml (EX-101.LAB) — 23KB
• smsi-20231227_pre.xml (EX-101.PRE) — 12KB
• smsi-20231227_htm.xml (XML) — 3KB

01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. On December 27, 2023, Smith Micro Software, Inc. (the "Company") received a letter from the Listing Qualifications Staff of The Nasdaq Stock Market ("Nasdaq") indicating that as result of the closing bid price of the Company's common stock ("Common Stock") for the last 30 consecutive business days having been below the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement") the Company was not in compliance with the Minimum Bid Price Requirement (the "Minimum Bid Price Notice"). The Minimum Bid Price Notice has no immediate effect on the continued listing status of the Company's Common Stock on The Nasdaq Capital Market, and, therefore, the Company's listing remains fully effective. Pursuant to Nasdaq Marketplace Rule 5810(c)(3)(A), the Company has been provided an initial compliance period of 180 calendar days, or until June 24, 2024, to regain compliance with the Minimum Bid Price Requirement. If at any time before June 24, 2024, the closing bid price of the Common Stock is at least $1.00 per share for a minimum of ten consecutive business days, unless Nasdaq exercises its discretion to extend this ten-day period, Nasdaq will provide written confirmation stating that the Company has achieved compliance with the Minimum Bid Price Requirement. If the Company's Common Stock does not regain compliance with the Minimum Bid Price Requirement during this initial 180-day compliance period, the Company may be eligible for an additional compliance period of 180 calendar days provided that (i) the Company satisfies Nasdaq's continued listing requirement for market value of publicly held shares and all other initial listing standards, other than the Minimum Bid Price Requirement; and (ii) the Company provides written notice to Nasdaq of its intention

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K contains forward-looking statements. Any statements about the Company's expectations, beliefs, plans, predictions, forecasts, objectives, assumptions, or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "anticipates," "believes," "can," "could," "may," "predicts," "potential," "should," "will," "estimate," "plans," "projects," "continuing," "ongoing," "expects," "intends," and similar words or phrases. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, these statements are not guarantees of future performance and involve risks and uncertainties which are subject to change based on various important factors, some of which are beyond the Company's control. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of operations. These forward-looking statements speak only as of the date of this Current Report on Form 8-K and are subject to a number of risks, uncertainties and assumptions including, without limitation, risks and factors that are described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2022 and the Company's Quarterly Reports on Form 10-Q, which are on file with the SEC and available on the SEC's website at www.sec.gov. The Company does not undertake any obligation to update any forward-looking statements made in this Current Report on Form 8-K as a result of new information, future events or otherwise.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Smith Micro Software, Inc. Date: January 2, 2024 By: /s/ James M. Kempton James M. Kempton Vice President and Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR