Shares in healthcare diagnostics and software provider Rennova Health Inc (NASDAQ:RNVA) dived Monday after it reported unimpressive third quarter numbers.
The stock fell 23.15% to close Monday at $0.11, with 2.71 million shares changing hands.
Technically there appears to be no reprieve for the stock, which has been flat-lining below the $1 level all through 2016.
Nasdaq has granted it an additional 180 days to regain compliance with the minimum $1.00 share Rule. If at any time before March 13, 2017, the bid price of the Company’s common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, the Company will regain compliance with the Rule.
Management comments in the earnings release are gloomy, to put it mildly.
Rennova Health Inc (NASDAQ:RNVA) puts up a poor show in Q3
“Our third quarter financial results are disappointing and do not reflect the continued performance and success the Company has had in recent months in securing new customers in all divisions of our business,” said Seamus Lagan, Rennova’s chief executive officer. “Sales for the third quarter were less than the second quarter as a result of the adjustment of our model towards business for which we are more likely to secure payment, and longer onboarding and integration times to start new customers.”
Revenue for the quarter was $0.3 million, down from $5.9 million in Q3 2015. Operating expenses shot up to $12.9 million from $9.5 million a year ago. Net loss for the quarter was $12 million, compared to $1.5 million.
As at September 30 Rennova had cash of only $0.5 million.
The Company has missed two payments under a senior secured convertible debenture on which the principal amount owed is $3.0 million, and has admitted that it does not have the finance to satisfy this liability. The Company is currently in negotiations with the lender and is exploring refinancing options.