A three-pillar score (0–100) for US-listed micro-caps, designed around NASDAQ’s IM-5101-3
The Delisting Risk score summarises how many of three risk patterns appear in a company’s data: concentrated ownership, promotional language, and jurisdiction or audit red flags. Its design follows NASDAQ’s interpretive material IM-5101-3. It covers US-listed tickers (NASDAQ, NYSE and OTC); it does not cover TSX or TSX-V listings.
A higher score means more of these patterns are present in the data we have. It is not a forecast that a company will be delisted, not a rating, and not a recommendation to buy or sell.
| Pillar | Weight | What raises the pillar score |
|---|---|---|
| Float concentration | 35% | Free float below 30% (more below 15%); insider ownership above 50% (more above 70%); restricted shares above 25% (more above 50%). If ownership data is unavailable, the pillar uses a default of 50 and the result says so. |
| Promotional language | 35% | Promotional, superlative and urgency phrases, guaranteed-return wording and price targets in the press-release text analysed; denser promotional text scores higher. If no press-release text is available, this pillar is not scored and the result says so. |
| Jurisdiction and audit | 30% | An auditor or operations based in a jurisdiction on the engine’s high-risk list; a small or unknown audit firm (when the auditor is known); a reverse-merger history; shell-company status. If jurisdiction data is unavailable, a default is used and noted. |
The composite is the weighted sum of the three pillar scores: 0.35 × float + 0.35 × promotional + 0.30 × jurisdiction.
Ownership and float: the company profile from third-party market data; when the share count is missing, shares outstanding from SEC EDGAR (XBRL company facts). Operating country: the company profile. Press-release text and auditor details: as loaded or entered in the Risk Monitor. Design reference: NASDAQ IM-5101-3.