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Honolulu-based biopharmaceutical company Cardax Inc., which produces the anti-inflammatory dietary supplement ZanthoSyn, said Wednesday it is voluntarily suspending its reporting obligations with the U.S. Securities and Exchange Commission.
Cardax said its board of directors determined that this action is expected to be in the best interests of the company and its shareholders because “it should reduce legal and accounting expenses and allow for the reallocation of employee time to advancing core business strategies.”
The company, which trades on the over-the-counter market under the ticker symbol CDXI, said following the suspension of reporting that it anticipates its common stock will be quoted on the OTC Pink Open Market, commonly referred to as the “Pink Sheets,” although it can give no assurance that any broker will continue to make a market in the stock.
Cardax last reported for the quarter ending March 31 that its net loss widened to $1.4 million from a loss of $1 million in the year-earlier period, and that its revenue had declined 27% to $104,574 from $142,813 primarily due to its largest customer, General Nutrition Corp., closing stores amid a bankruptcy reorganization and the COVID-19 pandemic affecting store sales.
The company, which has never made a profit, said in its first-quarter report that it continues to pursue funding opportunities and during the January-March period raised $661,359 through notes and convertible notes, compared with $770,000 in the year-earlier quarter. The proceeds were used for general corporate purposes, issuance costs and debt servicing.
On July 1, Cardax said in an SEC filing that its independent accounting firm KBL LLP notified the company on June 27 that it was resigning effective June 30 for factors unrelated to the company.
Shares in Cardax rose 11.1%, or 14 cents, to $1.40 on Wednesday before the announcement, made after the stock market closed.
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