Silicon photonics company Rockley Photonics has filed a petition for Chapter 11 bankruptcy relief, the company disclosed in a Jan. 23 8-K filing. The move comes after Rockley received notice from the New York Stock Exchange (NYSE) last month that it was not in compliance with continued listing requirements.
Per the Jan. 23 filing, the company said that it now expects its common stock will be the subject of delisting from the NYSE. Rockley said that it does not intend to appeal a delisting.
Rockley became a publicly traded company in 2021 following its merger with a special purpose acquisition company and a going-public transaction that carried a value of over $1 billion. Since that time, the company has unveiled a silicon photonics- and spectroscopy-enabled “clinic-on-the-wrist” digital health sensor system. Last summer, Rockley said that it received the first commercial purchase order for its noninvasive biomarker-sensing wristbands.
Rockley’s on-wrist technology was widely seen as a potential addition to future editions of smartwatch technology. Rockley, which in a 2021 U.S. Securities and Exchange Commission filing claimed Apple as its largest customer, said its infrared spectrophotometer technology can detect and monitor a much wider range of biomarkers than many wearable consumer electronic devices that use green light-emitting diodes to monitor heart rate. The technology, Rockley said, could dramatically increase the functionality of wearable devices.
The company plans to continue its operations while it works to complete a proposed reorganization. Chapter 11 bankruptcy cases provide for business reorganizations, and Rockley has sought expedited approval of its plan of reorganization, as part of a comprehensive restructuring.
In its most recent quarterly earnings report, dated Nov. 10, 2022, and covering the quarter ended Sept. 30, 2022, Rockley posted total assets of $90.9 million, down from $162.8 million at year-end 2021. The company’s reported liabilities rose from $59 million to $120.7 million over the same period.