The Wolf is having a Columbo moment you understand....Hopefully someone with knowledge can help the wolfman out. Unfortunately the Wolf only took one year of accounting in college. When I first followed this board as a stockholder, posters keep mentioning the up listing to the Nasdaq.I looked into it a few months ago and still can't understand how CVSI is going to up list to the big board. Maybe someone here can help me understand the process to reach the Nasdaq.
The Nasdaq has four sets of listing requirements. Each company must meet at least one of the four requirement sets, as well as the main rules for all companies.Listing Requirements for All Companies
Each company must have a minimum of 1,250,000 publicly traded shares upon listing, excluding those held by officers, directors or any beneficial owners of more than 10% of the company.
Also, the regular bid price at the time of listing must be $4.00, and there must be at least three market makers for the stock.
However, a company may qualify under a closing price alternative of $3.00 or $2.00 if the company meets varying requirements.
Each listing firm is also required to follow Nasdaq corporate governance rules 4350, 4351 and 4360.
Companies must also have at least 450 round lot (100 shares) shareholders, 2,200 total shareholders, or 550 total shareholders with 1.1 million average trading volume over the past 12 months.
Key Takeaways Major stock exchanges, like the Nasdaq, are exclusive clubs—their reputations rest on the companies they trade.
The Nasdaq has four sets of listing requirements. Each company must meet at least one of the four requirement sets, as well as the main rules for all companies.
In addition to these requirements, companies must meet all of the criteria under at least one of the following standards.
A company has four ways to get listed on the Nasdaq, depending on the underlying fundamentals of the company.
Standard No. 1: Earnings The company must have aggregate pre-tax earnings in the prior three years of at least $11 million, in the previous two years at least $2.2 million, and no single year in the prior three years can have a net loss.
If I recall from a few months ago the company had a net loss in fiscal year ending December 2016. correct me if I'm wrong.
The company had a net gain in 2017 and 2018. So in my understanding is that the company would have to complete 2019 with at least 11 million dollars in aggregate pre-tax earnings. So this standard is not feasible at this time.imo
The company must have a minimum aggregate cash flow of at least $27.5 million for the past three fiscal years, with no negative cash flow in any of those three years. Also, its average market capitalization over the prior 12 months must be at least $550 million, and revenues in the previous fiscal year must be $110 million, minimum.
This Standard is out because cash flow has not reached 27.5 Million in the past three years.imo
Companies can be removed from the cash flow requirement of the second standard if its average market capitalization over the past 12 months is at least $850 million and revenues over the prior fiscal year are at least $90 million.
[color=red]The average capitalization over the past 12 months has not reached the 850 million target and the revenues included have not reached the 90 million dollar threshold. So this standard is out of the loop.
Companies can eliminate the cash flow and revenue requirements, and decrease its marketing capitalization requirements to $160 million if their total assets total at least $80 million and their stockholders' equity is at least $55 million.
This is the standard that could get CVSI to the Nasdaq. but the total assets have to total 80 million dollars. According to the last 10-k filing year ending December 31, 2018,the total assets totaled 36,902 million dollars. Therefore, CVSI is 43,008 11 Million dollars short. The stockholders equity was 30,116 million dollars a shortage of 24,884 million dollars.
The total assets according to the last 10-Q is now 48,391 million dollars still short by 31609 million dollars.
The total stockholder's equity according to the last 10-Q is 30,877 million dollars. Still shy of 24,103 million dollars.
Therefore this standard is not within the standard, but the closest to listing on the Nasdaq. imo
A company has four ways to get listed on the Nasdaq, depending on the underlying fundamentals of the company. If a company does not meet certain criteria, such as the operating income minimum, it has to make it up with larger minimum amounts in another area, like revenue. This helps to improve the quality of companies listed on the exchange.
Revenue...As stated above...This could be another opportunity to up list on the Nasdaq. The catch. What is the minimum Revenue needed to up list? If someone can answer that question, please post your documentation stating the threshold needed to list on the Nasdaq. Thank you in advance... imo Wolf
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