8-K: BARK, Inc. Receives NYSE Non-Compliance Notice Due to Sub-$1.00 Stock Price

BARK, Inc. announced it received a notice from the New York Stock Exchange for non-compliance with continued listing standards due to its common stock trading below $1.00 per share for 30 consecutive days.

Summary

• BARK, Inc. received a written notice from the New York Stock Exchange (NYSE) on July 10, 2025, indicating non-compliance with Section 802.01C of the NYSE's Listed Company Manual.
• The non-compliance is due to the average closing price of BARK's common stock being less than $1.00 per share over a consecutive 30 trading-day period ended July 9, 2025.
• The notice does not result in immediate delisting of the company's common stock from the NYSE.
• BARK has a six-month cure period from July 10, 2025, to regain compliance.
• To regain compliance, the company must achieve a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of any calendar month during the cure period or the last day of the cure period.
• BARK intends to remain listed on the NYSE and is considering all available options to regain compliance, including a reverse stock split, which would be subject to stockholder approval.
• The notice is not anticipated to impact the ongoing business operations of the company or its reporting requirements with the U.S. Securities and Exchange Commission.
• A press release announcing the notice was issued on July 11, 2025.

Sentiment

Score: 3

Explanation: The company received a non-compliance notice from the NYSE due to its stock price falling below the $1.00 minimum, which is a significant negative event. However, there is no immediate delisting, and management has stated intentions to regain compliance and does not anticipate impact on business operations, which mitigates the immediate severity.

Positives

• The notice of non-compliance does not result in the immediate delisting of BARK's common stock from the NYSE.
• BARK has a six-month cure period to regain compliance with the NYSE's listing standards.
• The company intends to remain listed on the NYSE and is actively considering options to cure the deficiency.
• The notice is not anticipated to impact the ongoing business operations of BARK or its reporting requirements with the U.S. Securities and Exchange Commission.

Negatives

• BARK's common stock failed to meet the NYSE's continued listing standard, with an average closing price below $1.00 per share over a 30-day period.
• The company faces the risk of delisting if it cannot regain compliance within the six-month cure period.
• A potential reverse stock split, considered as an option to regain compliance, would require stockholder approval and could lead to a reduction in the number of outstanding shares.

Risks

• Failure to regain compliance with the NYSE's minimum stock price standard within the six-month cure period could lead to the delisting of BARK's common stock.
• The effectiveness of a reverse stock split, if pursued, is contingent on obtaining stockholder approval.
• General risks associated with implementing business plans, financing growth initiatives, and other risks disclosed in the company's annual report on Form 10-K.

Future Outlook

BARK, Inc. intends to regain compliance with the NYSE's continued listing standards within the six-month cure period and remain listed. The company is considering all available options, including a reverse stock split, subject to stockholder approval. Management does not anticipate the notice to impact ongoing business operations or SEC reporting requirements.

Management Comments

• "The Company intends to remain listed on the NYSE and is considering all available options to regain compliance with the NYSE’s continued listing standards, including, but not limited to, a reverse stock split, subject to stockholder approval."
• "The Notice is not anticipated to impact the ongoing business operations of the Company or its reporting requirements with the U.S. Securities and Exchange Commission."

Industry Context

BARK, Inc. operates in the pet industry, specifically focusing on dog products and services. The receipt of a non-compliance notice due to a low stock price is a company-specific issue related to meeting exchange listing requirements, rather than a broad industry trend. While the pet industry generally shows resilience, this situation highlights challenges faced by individual companies in maintaining market valuation.

Comparison to Industry Standards

• The $1.00 minimum average closing price over 30 trading days is a standard continued listing requirement for the New York Stock Exchange (NYSE), applicable to all listed companies, not specific to the pet industry.
• The document does not provide specific financial performance metrics (e.g., revenue, profit margins) that would allow for a direct comparison of BARK's operational results against industry peers like Chewy, Inc. (CHWY) or other pet product companies.

Stakeholder Impact

• Shareholders face potential risk of delisting if compliance is not regained, or potential dilution/share consolidation if a reverse stock split is enacted.
• Employees, customers, suppliers, and creditors are not anticipated to be immediately impacted, as the notice is not expected to affect ongoing business operations.

Next Steps

• Regain compliance with the NYSE's continued listing standards within the six-month cure period.
• Consider all available options to regain compliance, including a reverse stock split, subject to stockholder approval.

Key Dates

Recommendation

Keywords

BARK, NYSE, delisting, stock price, non-compliance, reverse stock split, common stock, listing standards, pet industry, BarkBox, Super Chewer, BARK Air