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Commitments and Contingencies
6 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

NOTE 8 — Commitments and Contingencies

In the normal course of business, the Company may receive inquiries or become involved in legal disputes regarding various litigation matters. In the opinion of management, any potential liabilities resulting from such claims would not have a material adverse effect on the Company’s consolidated financial statements.

Leases

The Company does not have any leases with an original term longer than 12 months as of June 30, 2023. The Company has short-term arrangements with immaterial rental obligations for office space.

Nasdaq Notifications of Noncompliance

On October 28, 2022, the Company received a letter from the staff (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) providing notification that the Company no longer complied with the $50 million in market value of listed securities standard for continued listing on the Nasdaq Global Market under Nasdaq Listing Rule 5450(b)(2)(A) and that the Company also did not comply with either of the two alternative standards of Listing Rule 5450(b), the equity standard and the total assets and total revenue standard. On April 19, 2023, Nasdaq approved the Company’s application to transfer the listing of its common stock and warrants from the Nasdaq Global Market to the Nasdaq Capital Market, effective April 21, 2023. The Company complies with the net income from continuing operations listing standard of the Nasdaq Capital Market, and the transfer of the listing resolved the October 28, 2022 noncompliance notification.

On November 2, 2022, the Company received another letter from the Staff providing notification that, for 30 consecutive business days, the bid price of the Company’s common stock had closed below the $1.00 per share minimum bid price requirement for continued listing on Nasdaq under Nasdaq Listing Rule 5450(a)(1) (the “Bid Price Requirement”). To regain compliance, the closing bid price of the Company’s common stock must have been $1.00 per share or more per share for a minimum of ten consecutive business days at any time before May 1, 2023.

On May 2, 2023, the Company received a letter from Nasdaq notifying it that the Company’s common stock would be subject to delisting from Nasdaq unless the Company timely requested a hearing before a Nasdaq Hearings Panel (the “Panel”). On May 8, 2023, the Company timely requested a hearing before the Panel, and on May 11, 2023, the Company submitted a plan of compliance and requested an extension of time to regain compliance with the Bid Price Requirement (the “Request”). On May 23, 2023, the Company received a letter from the Panel confirming that the Request was granted and that the Company has until October 17, 2023 to effect a reverse stock split and until October 30, 2023 to regain compliance with the Bid Price Requirement, subject to meeting certain milestones including obtaining stockholder approval of a reverse stock split on or before July 12, 2023. On July 12, 2023 (Note 19), at the Company’s Annual Meeting of Stockholders, the stockholders approved a proposal to effect a reverse stock split of the Company’s outstanding shares of common stock by a ratio of not less than 1 for 10 and not more than 1 for 25 at any time prior to the Company’s 2024 Annual Meeting of Stockholders, with the exact ratio to be set by the Leafly Board of Directors (the “Board”) in the future, if at all, within the above range in its sole discretion, without further approval or authorization of the Company’s stockholders. The Request stayed any further action by Nasdaq, during the remainder of the approved extension.