Eargo Announces Receipt of Nasdaq Non-Compliance Letter
14 May 2022 - 6:01AM
Eargo, Inc. (Nasdaq: EAR) (the “Company” or “Eargo”), a medical
device company on a mission to improve the quality of life of
people with hearing loss, today announced the Company received a
letter (the “Letter”) from The Nasdaq Stock Market LLC (“Nasdaq”)
notifying the Company that because it remains delinquent in filing
its Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2021 and its Annual Report on Form 10-K for the
fiscal year ended December 31, 2021, and because it is delinquent
in filing its Quarterly Report on Form 10-Q for the quarterly
period ended March 31, 2022, it has not regained compliance with
Nasdaq Listing Rule 5250(c)(1), which requires timely filing of
periodic reports with the Securities and Exchange Commission.
Previously, Nasdaq had granted the Company an extension until
May 16, 2022 to regain compliance. The Letter indicated that the
Company’s securities would be subject to delisting on May 23, 2022
as a result of the Company’s non-compliance, unless on or before
May 19, 2022 the Company requests a hearing before the Nasdaq
Hearings Panel (the “Panel”) and requests an extended stay of
suspension or delisting.
The Company intends to timely request a hearing before the
Panel, at which hearing it will present its plan to regain
compliance and request the continued listing of its securities on
Nasdaq pending its return to compliance. Such request will
automatically stay any suspension or delisting action by Nasdaq for
a period of 15 days from the date of the Company’s request. The
stay may be extended at the option of the Panel upon the Company’s
request and support of such extension, and the Company intends to
ask the Panel for a further stay concurrent with its request for a
hearing and pending the ultimate conclusion of the hearing
process.
About Eargo
Eargo is a medical device company dedicated to improving the
quality of life of people with hearing loss. Our innovative product
and go-to-market approach address the major challenges of
traditional hearing aid adoption, including social stigma,
accessibility and cost. We believe our Eargo hearing aids are the
first virtually invisible, rechargeable, completely-in-canal,
FDA-regulated, exempt Class I or Class II devices indicated to
compensate for mild to moderate hearing. Our differentiated,
consumer-first solution empowers consumers to take control of their
hearing. Consumers can purchase online or over the phone and get
personalized and convenient consultation and support from licensed
hearing professionals via phone, text, email or video chat. The
Eargo device is offered to consumers at approximately half the cost
of competing hearing aids purchased through traditional channels in
the United States.
Eargo’s sixth generation device, Eargo 6, is an FDA, Class II
exempt hearing device featuring Sound Adjust technology that
automatically optimizes the soundscape as the user moves between
environments. Eargo 6 is available for purchase here.
Related Linkshttp://eargo.com
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements other than statements of historical fact
contained in this report are forward-looking statements, including
statements regarding the Company’s intended requests of the Panel
and related Panel proceedings. Forward-looking statements are not
guarantees of future performance and are subject to risks,
uncertainties and assumptions that could cause actual results and
events to differ materially from those anticipated, including, but
not limited to, risks, uncertainties and assumptions related to:
completion of the Company’s financial closing procedures for the
periods ended September 30, 2021, December 31, 2021 and March 31,
2022 and any adjustments that may result from the completion of the
annual independent audit of its consolidated financial statements;
the extent to which the Company may be able to validate and
establish processes to support the submission of claims for
reimbursement from the Federal Employee Health Benefits program in
the future, if at all, and the Company’s ability to maintain or
increase insurance coverage of its hearing aids; the timing or
results of ongoing claims audits and medical records reviews by
third-party payors; the extent of losses from hearing aids
delivered to customers from September 21, 2021 until December 8,
2021; the Company’s ability to regain compliance with Nasdaq
Listing Rules; the Company’s ability to raise capital on acceptable
terms, if at all; the impact of the U.S. Department of Justice
investigation, third-party payor audits and the regulatory
landscape for hearing aid devices on the Company’s business and
results of operations; the Company’s expectations concerning
additional orders by existing customers; the Company’s expectations
regarding the potential market size and size of the potential
consumer populations for its products and any future products; the
Company’s ability to release new hearing aids and the anticipated
features of any such hearing aids; developments and projections
relating to the Company’s competitors and industry, including
competing products; the Company’s ability to maintain its
competitive technological advantages against new entrants in its
industry; the pricing of the Company’s hearing aids; the Company’s
expectations regarding the ability to make certain claims related
to the performance of its hearing aids relative to competitive
products; and the Company’s estimates regarding the COVID-19
pandemic, including but not limited to, its duration and its impact
on the Company’s business and results of operations. These and
other risks are described in greater detail under the section
titled “Risk Factors” contained in the Company’s Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and other filings with
the U.S. Securities and Exchange Commission. Any forward-looking
statements in this press release are made pursuant to the Private
Securities Litigation Reform Act of 1995, as amended, are based on
current expectations, forecasts and assumptions, and speak only as
of the date of this release. Except as required by law, the Company
undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Investor ContactNick LaudicoSenior Vice President of Corporate
Strategy and Investor Relationsir@eargo.com
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