Fuel Tech, Inc. (FTEK) recently came to agreement with insurance carrier upon terms which will bring in an amount of $2.6 million to the company. The proceeds will settle an outstanding claim previously reported in last year and are likely to be received by the company in Q4 2020.
Fuel Tech is a provider of advanced engineering solutions for the optimization of emission control, water treatment and combustion systems being used in domestic and industrial applications. In the Q4 2019, the company had reported an amount $2.0 million charge against charge to be received from a U.S. customer for an equipment warranty claim. Afterwards in Q2 2020, company booked an incremental net charge of $600,000 against that insurance claim. Fuel Tech I expected to be recording full amount of the insurance recovery in its financial statements of the second half of 2020.
The company early last week announced approval of its application by the NASDAQ Stock Market to transfer its listing in the Capital Market tier of the NASDAQ. The company was previously listed on platform’s Global Select tier.
To continue listing on the Capital Market tier, NASDAQ Marketplace Rule 5450(a)(1) (the “Rule”) imposes condition of compliance of the minimum bid requirement on the company. NASDAQ, with the transfer of company’s listing to Capital Market tier, also granted it an additional grace period of 180 calendar days to regain that compliance.
On January 7, 2020, Fuel Tech was notified by NASDAQ that its Common Stock’s bid price is not in compliance with the minimum bid requirement. At the time NASDAQ has granted the company with a time period of 180 calendar days to ensure compliance. Afterwards, that period was extended to September 18, 2020.
The company has now a time of until March 17, 2021 to fulfil the minimum bid requirement of NASDAQ to continue listing.