Loop Media’s Ongoing Losses Prompt Stock Listing Compliance Warning From NYSE

April 24, 2024 by Dave Haynes

The digital place-based streaming content service Loop Media, which has been cutting costs and executives amidst financial struggles, now has a letter from the NYSE American stock exchange giving it a month to come into compliance with traded stock listing standards.

LA-based Loop says it got a letter from the exchange advising the compliance issue relates to financial performance, citing “the reported stockholders’ deficit as of December 31, 2023, and losses from continuing operations and/or net losses in its five most recent fiscal years ended September 30, 2023.”

From the investor relations statement:

The Notice has no immediate impact on the listing of the Company’s shares of common stock, par value $0.0001 per share (the “Common Stock”), which will continue to be listed and traded on the NYSE American during the period mentioned below, subject to the Company’s compliance with the other listing requirements of the NYSE American. The Common Stock will continue to trade under the symbol “LPTV,” but will have an added designation of “.BC” to indicate the status of the Common Stock as “below compliance.” The Notice does not affect the Company’s ongoing business operations or its reporting requirements with the Securities and Exchange Commission (“SEC”).

The Company is required to submit a plan of compliance by May 23, 2024, addressing how the Company intends to regain compliance with Sections 1003(a)(i), (ii) and (iii) of the NYSE American Company Guide by October 23, 2025.

Section 1003(a)(i) of the NYSE American Company Guide requires a listed company’s stockholders’ equity be at least $2.0 million if it has reported losses from continuing operations and/or net losses in two of its three most recent fiscal years. Section 1003(a)(ii) of the NYSE American Company Guide requires a listed company’s stockholders’ equity be at least $4.0 million if it has reported losses from continuing operations and/or net losses in three of its four most recent fiscal years. Section 1003(a)(iii) of the NYSE American Company Guide requires a listed company’s stockholders’ equity be at least $6.0 million if it has reported losses from continuing operations and/or net losses in its five most recent fiscal years.

The Company is committed to considering available options to regain compliance with the NYSE American’s stockholders’ equity requirements. There can be no assurance that the Company will be able to achieve compliance with the NYSE American’s continued listing standards within the required time frame.

The company makes free, ad-supported content channels and digital signage functionality available to businesses via streaming apps loaded on media play-out devices or smart displays. It has been very aggressively expanding its footprint as it competes for venues and eyeballs with companies like Austin-based Atmosphere. It grew its installed base by 126% in its last fiscal year, with some 79,000 Android players in bars/restaurants, office buildings, retail businesses, college campuses and airports. Most of that footprint is in the United States, but Loop is also now in Canada, Australia, and New Zealand.