Even as mobile health converges with other technologies and becomes a more integral part of healthcare delivery as a whole, not everybody in this sector is prospering. The latest evidence comes from Authentidate Holding Corp., parent company of home telehealth service provider ExpressMD Solutions, was forced to reverse-split of its stock last week to avoid delisting from the Nasdaq Capital Market.
Authentidate, based in Berkeley Heights, N.J., executed a 1-for-2 reverse split of its shares after the markets closed Aug. 30 because the stock had closed below $1 every day since Sept. 16, 2011. The company still faces Nasdaq delisting if split-adjusted shares do not remain above that threshold for the 10 consecutive trading days ending Sept. 17, 2012. Authentidate, which uses the ticker symbol ADAT, ended Wednesday at $1.40, up 4 cents from the morning's open but exactly where it was at the time of the reverse split.
Authentidate's board had considered a reverse split of as much as 1-to-5 but settled on the halving of the number of shares issued, according to a company statement.
Authentidate provides remote monitoring technology to several major provider organizations, including the Premier hospital alliance and the U.S. Department of Veterans Affairs. The company's products include the Electronic House Call vitals monitoring device with FDA 510(k) clearance.
Authentidate was one of three companies Robert Bosch Healthcare Systems sued in January over alleged patent infringements related to Bosch's Health Buddy telehealth platform. While Bosch settled with one defendant, Waldo Networks, the suit against Authentidate is still pending.