Urban One has disclosed another letter from the Listing Qualifications Department of the Nasdaq Stock Market sent August 16, notifying the company of its non-compliance with market rules. This non-compliance stems from the company’s failure to timely file its Quarterly Reports on Form 10-Q for the periods ended March 31, 2023 and June 30, 2023 with the Securities and Exchange Commission.
This recent notification does not have an immediate effect on the listing of Urban One’s common stock on NASDAQ. However, if Urban One fails to regain compliance with the specified Rule, its common stock could again face delisting from NASDAQ.
Previously, the company received a notice from NASDAQ on April 3, for non-compliance due to a delay in filing its 2022 Annual Report on Form 10-K. A subsequent delay in filing the Q1 2023 Form 10-Q led to a second NASDAQ letter. In response, Urban One filed a plan to regain compliance for both the 2022 Form 10-K and the Q1 2023 Form 10-Q.
NASDAQ accepted the plan and granted the company an extension until September 27, 2023, to regain compliance. When Urban One filed the 2022 Form 10-K on June 30, there were references to an accounting mishap. Urban One has since switched accounting companies.
Urban One’s delay in filing the Q1 2023 Form 10-Q, along with a previously disclosed change of an independent registered public accounting firm, has also impacted the preparation and filing of its Q2 2023 Form 10-Q. The company has stated that it is in the process of completing the Q1 2023 Form 10-Q and expects to file both the Q1 and Q2 2023 Forms 10-Q on or before the September 27, 2023 deadline.
Urban One’s continued progress in meeting NASDAQ’s compliance requirements will be essential for maintaining its stock listing. The upcoming filings are crucial for the company to avoid further actions from NASDAQ and demonstrate its compliance with regulatory standards.
