Ability Inc. (NASDAQ:ABIL)
Ability Inc. (NASDAQ:ABIL)’s fourth quarter net loss woes have been compounded by a delisting notice from the NASDAQ. The Listing Qualifications Department (LQD) of the NASDAQ stock market has warned that the company is not in compliance with the minimum bid price. The LQD requires a company to maintain a minimum bid price of $1 a share for 30 consecutive days.
Ability Inc. (NASDAQ:ABIL) has been given 180 calendar days, until December 4, 2017, to ensure its bid price trades above the $1 a share mark for ten consecutive days. Failure to do so could result in the delisting of the stock upon completion of the Compliance Period.
The leading provider of innovative tactical communication tactical solutions has since reiterated its commitment to working with the NASDAQ to achieve the minimum listing requirement.
“At present, the Company intends to monitor the closing bid price of its ordinary shares and may, if appropriate, consider available options to regain compliance with the minimum bid price requirement, which could include effecting a reverse stock split. However, there can be no assurance that the Company will be able to regain compliance with the minimum bid price requirement,” Ability Inc. in a statement.
Net Loss Debacle
The delisting notice comes on the heels of Ability Inc. (NASDAQ:ABIL) posting a wider than expected net loss in the fourth quarter and full year ending December 31, 2016. The company attributes the loss to a decline in net revenues as well as an increase in legal and professional services fees.
Net loss for Q4 2016 totaled (-$3.8) million compared with a net loss of (-$380,000) for Q4 2015. Net loss for the full year was (-$8.1) million compared to a net income of $14.8 million for F2015. Revenues for the fourth quarter totaled $2.5 million compared to $2 million for the fourth quarter of 2015. Full year revenues, on the other hand, dropped to $16.5 million compared with $52.2 million as of the end of FY2015.
“Although the market penetration of the ULIN technology has been more challenging than we had expected, we continue to be encouraged by the great interest in ULIN around the world and we are hopeful that this interest will translate into revenues over the next quarters,” said CEO, Anatoly Hurgin.
In Tuesday’s trading session, Ability Inc. (NASDAQ:ABIL) stock was up by 19.66% to end the day at $1.40 share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.