XML 46 R17.htm IDEA: XBRL DOCUMENT v3.19.3
Subsequent Events
9 Months Ended
Sep. 30, 2019
Subsequent Events [Abstract]  
Subsequent Events

10.          Subsequent Events

On September 5, 2019, the board of directors declared a quarterly cash dividend in the amount of $0.15 per share on the Company’s Preferred Stock. The cash dividend was paid on November 1, 2019 to the holders of record of the Preferred Stock as of the close of business on October 14, 2019.

On January 8, 2019, the Company received a written notification from the Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Company was not in compliance with Nasdaq Listing Rule 5550(a)(2) because the minimum bid price of the Company’s shares of common stock was below $1.00 per share for the previous 30 consecutive business days. The Company was provided an initial period of 180 calendar days, or until July 7, 2019, to regain compliance with the minimum bid price rule. The Company did not regain compliance with the minimum closing bid price requirement by July 7, 2019. The Company was previously notified by Nasdaq that it might be afforded a second 180 calendar days period to regain compliance with the minimum closing bid price requirement under certain circumstances if the Company notified Nasdaq of its intent to cure the deficiency. As a result, the Company applied for an extension of the cure period, as permitted under the notification, and received an extension until January 6, 2020 to regain compliance with the minimum bid price rule. To regain compliance, the closing bid price of the Company’s shares of common stock must meet or exceed $1.00 per share for at least ten consecutive business days during this additional 180-day grace period. If the Company does not regain compliance with the minimum bid price rule by January 6, 2020, Nasdaq will provide written notification that the common stock may be delisted. At that time, the Company may appeal Nasdaq’s delisting determination to a Nasdaq hearings panel. If timely appealed, the common stock would remain listed pending the panel’s decision.

The Company’s board of directors determined that an amendment to the Company’s Amended and Restated Certificate of Incorporation to effect a reverse stock split is necessary to the continued listing of the common stock on Nasdaq, and on October 28, 2019, a Special Meeting of Stockholders was convened, and the Company’s stockholders considered and approved a proposal to adopt and approve an amendment to the Company’s Amended and Restated Certificate of Incorporation to effect a reverse stock split of the common stock, par value $0.001 per share (the “common stock”) at a ratio of not less than 1-for-5 and not greater than 1-for-20, with the exact ratio and effective time of the reverse stock split to be determined by the Company’s board of directors at any time within one year of the date of the Special Meeting (the “Split Proposal”). The Split Proposal was approved, and the reverse stock split will be effected, if at all, only upon a subsequent determination of the Company’s board of directors that such reverse stock split is in the best interests of the Company and its stockholders.