SCWorx Corp. Receives Notice of Non-Compliance from NASDAQ Stock Market Pertaining to its 10-Q for the quarter ended June 30, 2024

Rhea-AI Summary

SCWorx Corp. (WORX) has received a notice of non-compliance from Nasdaq due to its failure to file the Q2 2024 10-Q report by the August 14, 2024 deadline. The company is also delinquent in filing its 2023 10-K and Q1 2024 10-Q. This non-compliance stems from the dismissal of their previous auditor, BF Borgers CPA PC, following an SEC order. SCWorx has engaged a new auditor, Astra Audit & Advisory, , to complete the necessary audits and reviews.

Nasdaq has accepted SCWorx's revised compliance plan, granting an extension until October 14, 2024 to regain compliance with periodic reporting obligations. The company expects to file all delinquent reports by this extended deadline.

Positive

• Nasdaq accepted SCWorx's revised compliance plan
• Extension granted until October 14, 2024 to regain compliance
• New auditor engaged to complete financial audits and reviews
• Company expects to file all delinquent reports by the extended deadline

Negative

• Failure to file Q2 2024 10-Q report by the due date
• Delinquent in filing 2023 10-K and Q1 2024 10-Q reports
• Received notice of non-compliance from Nasdaq
• Dismissal of previous auditor due to SEC order
• Delayed work on periodic reports

NEW YORK, N.Y., Aug. 23, 2024 (GLOBE NEWSWIRE) -- On August 19, 2024, the Nasdaq Stock Market notified SCWorx Corp. (the “Company”) that it has failed to satisfy a standard for continued listing, namely Nasdaq Listing Rule 5250(c)(1) (the “Rule), because the Company did not file its June 30, 2024 Quarterly Report on Form 10-Q by the due date of August 14, 2024 and because it remains delinquent in filing its Form 10-K for the period ended December 31, 2023 and its Form 10Q  for the quarter ended March 31, 2024.

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 Company’s independent registered public accounting firm, at which time work on the Registrant’s periodic reports was delayed.

As previously announced, the Company  has engaged a new auditor, Astra Audit & Advisory, LLC to complete the audit and review of its annual and quarterly financial statements, respectively. The Company intends to complete the audit and review of its financial statements and file its 10K and 10Qs as quickly as possible to regain compliance with its periodic reporting obligations.

The Company submitted Nasdaq a revised plan to regain compliance with the Rule by no later than October 14, 2024. The Nasdaq Staff has accepted the Company’s plan, granting the Company an extension of time until October 14, 2024 to regain compliance with the Rule’s periodic reporting obligations.  The Company fully expects to file all its delinquent reports on or before this extended compliance date.

Contacts:

ir@scworx.com
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Source: SCWorx Corp.

FAQ

Why did SCWorx (WORX) receive a non-compliance notice from Nasdaq?

SCWorx (WORX) received a non-compliance notice from Nasdaq for failing to file its Q2 2024 10-Q report by the August 14, 2024 deadline and remaining delinquent in filing its 2023 10-K and Q1 2024 10-Q reports.

What caused the delay in SCWorx's (WORX) financial reporting?

The delay in SCWorx's (WORX) financial reporting was caused by the dismissal of their previous auditor, BF Borgers CPA PC, following an SEC order on May 7, 2024, which halted work on the company's periodic reports.

Who is SCWorx's (WORX) new auditor?

SCWorx (WORX) has engaged Astra Audit & Advisory, as its new auditor to complete the audit and review of its annual and quarterly financial statements.

What deadline has Nasdaq given SCWorx (WORX) to regain compliance?

Nasdaq has granted SCWorx (WORX) an extension until October 14, 2024, to regain compliance with its periodic reporting obligations.