Perfect Moment Receives Notice of Non-Compliance

Rhea-AI Summary

Perfect Moment (NYSE American: PMNT) has received a notice of non-compliance from NYSE American due to insufficient stockholders' equity. The company reported stockholders' equity of $2.7 million, below the required $4.0 million minimum for companies with losses in three of four recent fiscal years. Perfect Moment has until January 10, 2025, to submit a compliance plan and must achieve compliance by June 11, 2026.

If the NYSE American accepts the plan, PMNT can maintain its listing during the compliance period with quarterly monitoring. The notice does not immediately affect stock listing or trading, nor does it impact business operations or SEC reporting requirements.

Positive

• No immediate impact on stock listing or trading
• Company has opportunity to submit compliance plan
• Extended compliance deadline until June 2026 if plan is accepted

Negative

• Stockholders' equity of $2.7M below required $4.0M minimum
• Reported losses in three most recent fiscal years
• Risk of potential delisting if compliance plan is not accepted
• Non-compliance with NYSE American listing standards

Insights

Financial Analyst

The notice of non-compliance from NYSE American is a significant red flag for Perfect Moment. With stockholders' equity of only $2.7 million against the required $4.0 million threshold and losses in three consecutive fiscal years, the company's financial health is concerning. The June 11, 2026 compliance deadline provides a substantial runway, but the company must demonstrate a viable path to profitability. The immediate risk of delisting is mitigated by the opportunity to submit a compliance plan by January 10, 2025. However, investors should closely monitor the acceptance of this plan and subsequent quarterly reviews. The low market capitalization of $19.2 million combined with persistent losses suggests significant challenges ahead in meeting equity requirements and achieving sustainable operations.

Legal Expert

This NYSE American compliance issue presents material regulatory concerns for Perfect Moment. The company must navigate Section 1009 of the Company Guide requirements, with the critical deadline of January 10, 2025, for submitting a remediation plan. While stockholders have protection through the appeal process under Section 1010 and Part 12 if delisting is initiated, the company's continued listing status remains precarious. The maintenance of SEC reporting obligations regardless of listing status provides some transparency assurance for investors. However, the combination of inadequate stockholders' equity and persistent losses creates significant corporate governance and compliance challenges that require immediate strategic attention.

LONDON--(BUSINESS WIRE)-- Perfect Moment Ltd. (the “Company”) (NYSE American: PMNT), a high-performance, luxury skiwear and lifestyle brand that fuses technical excellence with fashion-led designs, received a notification (“Letter”) from the NYSE American LLC (the “NYSE American”) stating that the Company is not in compliance with the minimum stockholders’ equity requirements of Sections 1003(a)(ii) of the NYSE American Company Guide (the “Company Guide”) requiring stockholders’ equity of $4.0 million or more if the Company has reported losses from continuing operations and/or net losses in three of the four most recent fiscal years. As of September 30, 2024, the Company had stockholders’ equity of $2.7 million and has had losses in its three most recent fiscal years ended March 31, 2024.

The Company is now subject to the procedures and requirements of Section 1009 of the Company Guide. The Company has until January 10, 2025, to submit a plan (the “Plan”) of actions it has taken or will take to regain compliance with the continued listing standards by June 11, 2026. The Company intends to submit a plan to regain compliance with NYSE American listing standards. If the NYSE American accepts the Plan, the Company will be able to continue its listing during the Plan period and will be subject to periodic reviews including quarterly monitoring for compliance with the Plan until it has regained compliance. If the Plan is not accepted by the NYSE American, the Letter stated that delisting proceedings will commence. The Company may appeal a staff delisting determination in accordance with Section 1010 and Part 12 of the Company Guide.

The Letter has no immediate effect on the listing or trading of the Company’s common stock on the NYSE American. The Company’s receipt of the Letter from the NYSE American does not affect the Company’s business, operations or reporting requirements with the U.S. Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241217113452/en/

Company Contact

Jeff Clayborne, CFO

Perfect Moment

Tel +44 (0)204 558 8849

Email contact

Investor Contact

Ronald Both or Grant Stude

CMA Investor Relations

Tel (949) 432-7566

Email contact

Source: Perfect Moment Ltd.

FAQ

What is Perfect Moment's (PMNT) current stockholders' equity and why is it problematic?

Perfect Moment's stockholders' equity is $2.7 million, which is below the NYSE American's minimum requirement of $4.0 million for companies with losses in three of four recent fiscal years.

When must PMNT submit its compliance plan to NYSE American?

Perfect Moment must submit its compliance plan by January 10, 2025.

What is the deadline for PMNT to regain compliance with NYSE American listing standards?

Perfect Moment must regain compliance with NYSE American listing standards by June 11, 2026.

What happens if NYSE American doesn't accept PMNT's compliance plan?

If NYSE American doesn't accept the compliance plan, delisting proceedings will commence, though the company can appeal this determination.

Does the NYSE American notice affect PMNT's current trading status?

No, the notice has no immediate effect on the listing or trading of Perfect Moment's stock on NYSE American.