After numerous warnings, Urban One has reported the Nasdaq stock exchange “has initiated a process that could result in the delisting” of the company. The Listing Qualifications Department of Nasdaq sent Urban One the notice after it failed to file its Quarterly Reports for the periods ending March 31, 2023, and June 30, 2023.
Urban One plans to request a hearing before a Nasdaq Hearings Panel to extend the suspension of delisting action through October 20. Depending on the panel’s decision, the stay could be further extended until March 26. However, there are no guarantees that the extensions will be granted.
Minutes after the initial notice pertaining to delisting was sent, Radio Ink received a second message, pertaining to the sudden filing of Urban One’s 2023 Q1 Report with the Securities and Exchange Commission.
The issue first came to light when the Urban One Audit Committee dismissed BDO USA, LLP as its public accounting firm on July 12. They then appointed Ernst & Young LLP for the fiscal year ending December 31, 2023. During the preparation of its late reports, Urban One identified accounting errors related to non-cash stock-based compensation and its investment in RVA Entertainment Holdings, LLC. These issues are currently under review and have contributed to further delays in the company’s filing of its Q1 and Q2 2023 reports.
This is not the first time the company has faced such issues. On April 3, Nasdaq issued a notice for not being in compliance due to a delay in filing the 2022 Annual Report. Nasdaq had granted the company an extension until September 27.
