On March 28, Sphere 3D Corp. (ANY) was trending actively during the regular session due to its popularity as a meme penny stock as of recently. Consequent to its huge gains during the session, the stock fell under corrections in the after-hours to shed its gains. There is no recent official announcement from the company other than March 18’s Nasdaq Notice.

As social media chatter attracted to the penny stock, ANY rallied big with a gain of 29.59% during the regular session. The volume of the day remained active at 437% of the average as 26.56 million shares exchanged hands. The stock closed the session at a price of $2.54 per share. Following the huge gains, the stock fell under corrections in the after-hours to lose 5.12%. Hence, ANY was trading at a value of $2.41 per share in the after-hours on Monday.

The data management and desktop & applications virtualization solutions provider, Sphere 3D Corp is a carbon-neutral bitcoin mining company.

What Happened?

Recently, ANY has been gaining popularity on social media sites as a meme penny stock. The stock was actively discussed on social media sites like Reddit and Twitter on Monday which caused a spike in its gains. Another factor contributing to the latest upsurge seems to be the bullish momentum of cryptocurrency. Since the company has a large role in Bitcoin mining, the recent climb in crypto added further fuel to the stock’s hike on Monday. Moreover, a number of hedge funds including Advisory Group Holdings, Citadel Advisors, Wells Fargo & Company have recently increased their holdings of the stock as well.

Ultimately, the stock was bound for corrections sooner or later after gaining big during the regular session. Thus, ANY succumbed to corrections in the after hours.

Nasdaq’s Notice to ANY

On March 18, the company announced receiving a deficiency notice from Nasdaq. According to the notice, the company is in non-compliance with Nasdaq Listing Rule 5605(c)(2)(A). The rule requires the issuers to have an audit committee of a minimum of three members within the required criteria.

The company entered into non-compliance with the rule after its unsolicited discretionary bonus payment to Patricia Trompeter outside of Board compensation. Remaining on the board as a director, Ms. Trompeter resigned from ANY’s Audit Committee on March 7, 2022. Henceforth, the company is working on a plan of compliance including the replacement of Ms. Trompeter on the Audit Committee.

ANY’s Q3 2021 Overview

In Q3 2021, the company had a net loss of $2.6 million on revenue of $1.0 million while the gross margin was 46.6%.