While shareholders still wait for Urban One’s year-end financials for 2023, the company admits the string of accounting delays that has ensnared the radio operator for the past year is not over yet with a new disclosure to the SEC as it chases Nasdaq compliance.
In the new filing, dated May 10, Urban One cited the need for additional time to gather and analyze documentation necessary to complete the annual report and allow for the completion of audits by Ernst & Young. Urban One aims to file the Form 10-K by May 31.
Due to ongoing assessments and preparations related to the 2023 Form 10-K, Urban One also noted that it will not be able to finalize and file its Q1 2024 report within the standard filing period.
The company has also acknowledged the discovery of material weaknesses in its internal control over financial reporting, which will be detailed in the upcoming Form 10-K, along with remediation strategies. Despite these challenges, Urban One anticipates that its auditors will issue an unqualified opinion on its consolidated financial statements and does not foresee any changes to previously audited financial statements.
Urban One’s leadership team expressed that the financial outcomes for the fourth quarter and the full year of 2023 are expected to align with the forecasts provided in the third quarter earnings call.
Nasdaq has given Urban One until June 7 to file its 2023 10-K or present a plan to regain compliance with Nasdaq Listing Rules and may receive an extension until September 11 if Nasdaq approves the plan.
Previously at risk of Nasdaq delisting, Urban One remains under close watch. The company is monitored by a Nasdaq Mandatory Panel until December 29 to ensure ongoing compliance. Although its listing status is currently stable, failure to meet the deadlines could result in delisting, with an option for the company to appeal before a Nasdaq Hearings Panel.
Wonder if people are starting to see the house of cards that Radio/Urban One really is.