Fintech data and insights firm SRAX has made an executive change as it grapples with the aftermath of being delisted from Nasdaq.
Alan Urban was named the company’s chief financial officer on March 20. Urban takes over from Michael Malone, who was named to the position in December of 2018. SRAX was delisted after the close of the market on March 7.
Urban has more than 30 years of experience in corporate finance and accounting, and has served in numerous senior management positions, including as chief financial officer for Research Solutions. Urban held that position for 10 years with the company, which is a provider of software as a service solutions.
“I believe my significant past experience fits the profile of what SRAX needs at this very moment, a microcap SaaS-focused CFO to bring structure and leadership to our finance and accounting function to build the people, systems, and processes to get current on our SEC filings and ensure we never become delinquent again,” Urban said in a statement.
He noted the firm would focus on cash flow by understanding its software as a service metrics, margins and profitability.
“While I might be joining at an unfortunate point in the company’s history, I believe that at our core the Sequire platform provides great value to customers, and is a solid foundation for future growth,” he added.
According to a statement from the OTC Markets Group, the expert market “is a private market to serve broker-dealer pricing and best execution needs in securities that are restricted from public quoting or trading.” The restrictions placed on companies can be based on issuer requirements, security attributes, investor accreditation and/or suitability risks.
The company’s shares will stay on the over-the-counter market until it is current on its financials. Once current, SRAX shares will then move to the Pink market, which has no reporting requirements or financial standards. SRAX can evaluate how it would like to proceed once it is moved to the Pink market, which is the lowest and most speculative tier of the three marketplaces for the trading of over-the-counter stocks, according to Investopedia.
“SRAX had hoped that Nasdaq would allow it more time to become current on its financials, as the company is working diligently to finalize its filings,” the Westlake Village-based firm said. It added that it was “disappointed” to receive the delisting notice but is committed to regaining compliance as soon as possible.
Prior to the delisting, SRAX’s stock price hovered around $1.70 per share, but has since tumbled to about 50 cents.
SRAX produces and compiles data and insights for publicly traded companies and operates an online platform that allows companies to communicate with investors through Q&A events, profiles and more. It launched more than 20 virtual business conferences through the platform in 2022.
The company’s first-quarter earnings report from 2022, its most recent earnings report, shared that the company made $3.7 million in net income and a gross value of $15.2 million in contract bookings. The most recent financial information published by SRAX was that it added more than 25 new customers in the first quarter of this year.