SCWorx Corp. Files 8-K: Delisting Notice, New Agreement, Accountant Change

TL;DR

SCWorx 8-K: Delisting warning, new deal, and auditor switch. Big changes ahead.

AI Summary

SCWorx Corp. filed an 8-K on May 21, 2024, reporting several key events as of May 16, 2024. These include entering into a material definitive agreement, receiving a notice of delisting or failure to meet continued listing rules, and changes in its certifying accountant. The company was formerly known as Alliance MMA, Inc. and changed its name on May 10, 2016.

Why It Matters

This filing indicates potential significant operational and financial challenges for SCWorx Corp., including the risk of delisting, which could impact its stock liquidity and investor confidence.

Risk Assessment

Risk Level: high — The notice of delisting or failure to meet listing rules is a significant red flag indicating potential severe financial distress or non-compliance.

Key Players & Entities

• SCWorx Corp. (company) — Registrant
• Alliance MMA, Inc. (company) — Former company name
• May 16, 2024 (date) — Earliest event reported
• May 21, 2024 (date) — Filing date
• May 10, 2016 (date) — Date of name change

FAQ

Key Financial Figures

• $330,000 — d promissory note in the face amount of $330,000, in exchange for which it received cash
• $300,000 — which it received cash in the amount of $300,000 ("Note"). In addition to the original i
• $30,000 — ition to the original issue discount of $30,000, the note bears interest at the rate of
• $462,000 — on award in the amount of approximately $462,000. The vendor has since obtained a judgme
• $502,000 — judgment in the amount of approximately $502,000 (including interest). The Registrant in

Filing Documents

• ea0206622-8k_scworx.htm (8-K) — 28KB
• 0001213900-24-045532.txt ( ) — 195KB
• worx-20240516.xsd (EX-101.SCH) — 3KB
• worx-20240516_lab.xml (EX-101.LAB) — 33KB
• worx-20240516_pre.xml (EX-101.PRE) — 22KB
• ea0206622-8k_scworx_htm.xml (XML) — 3KB

01. ENTRY INTO A MATERIAL DEFINITIVE

ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT Amendment and Restatement of Outstanding Promissory Note As previously reported, on April 12, 2024, SCWorx Corp. (the "Registrant") issued a secured promissory note in the face amount of $330,000, in exchange for which it received cash in the amount of $300,000 ("Note"). In addition to the original issue discount of $30,000, the note bears interest at the rate of 5% per annum, is secured by all the Registrant's assets and was due and payable May 10, 2024. On May 10, 2024, the Registrant and the holder of the Note amended and restated the Note to extend the maturity date until May 17, 2024. On May 17, 2024, the Registrant and the holder of the Note amended and restated the Note to further extend the maturity date until May 24, 2024

01. NOTICE OF DELISTING FOR

ITEM 3.01. NOTICE OF DELISTING FOR FAILURE TO SATISFY A CONTINUED LISTING RULE OR STANDARD: TRANSFER OF LISTING On May 15, 2024, the Nasdaq Stock Market notified the Registrant that it has failed to satisfy a standard for continued listing, namely Nasdaq Listing Rule 5250(c)(1), because the Registrant did not file its Quarterly Report on Form 10-Q by the due date of May 15, 2024 and because it remains delinquent in filing its Form 10-K for the period ended December 31, 2023. As previously disclosed, due to the SEC's Order denying BF Borgers CPA PC ("BF Borgers") the privilege of appearing or practicing before the Commission as an accountant, on May 7, 2024, the board of directors of the Company dismissed BF Borgers CPA PC as the Registrant's independent registered public accounting firm, at which time work on the Registrant's periodic reports was delayed. The Registrant has engaged a new independent registered public accounting firm to complete the audit and review of its annual and quarterly financial statements, respectively, as expeditiously as possible, following which the Registrant will promptly file its Annual Report on Form 10-K and Quarterly Report on Form 10-Q. The Registrant intends to notify the Nasdaq of this plan to rectify the existing filing deficiencies.

01

Item 4.01. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT New independent registered public accounting firm On May 16, 2024, the Company appointed Astra Audit and Advisory, LLC ("Astra") as its new independent registered public accounting firm, effective immediately, for the fiscal years ending December 31, 2023, and 2022. This appointment was authorized and approved by the Audit Committee of the Company's Board of Directors. During the fiscal years ended December 31, 2023 and 2022 and through May 16, 2024, the Company did not consult with Astra on any accounting matter for a specified transaction, completed or proposed, or consult with Astra for the type of audit opinion that might be rendered on the Company's consolidated financial in reaching a decision as to the accounting, auditing or financial reporting issue. In addition, the Company did not consult with Astra on any "reportable events" as identified under Item 304(a)(2)(ii) of Regulation S-K. The Company expects to file (i) its Form 10-Q for the quarter ended March 31, 2024, and (ii) its Annual Report on Form 10-K for the year ended December 31, 2023 within approximately sixty days, although there can be no assurance as to this timing.

01 OTHER

ITEM 8.01 OTHER Payment of Arbitration Award As previously disclosed, the Registrant is indebted to a vendor pursuant to an arbitration award in the amount of approximately $462,000. The vendor has since obtained a judgment in the amount of approximately $502,000 (including interest). The Registrant intends to satisfy the amount of the judgment to the vendor out of capital raised or with shares of the Registrant's common stock. The vendor has agreed not to enforce its judgment until June 3, 2024. 1

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 hereunto duly authorized. SCWorx Corp. By: /s/ Timothy Hannibal Timothy Hannibal CEO Dated: May 21, 2024 2

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View this 8-K filing on SEC EDGAR