Earlier in May, Urban One announced continued delays in its financial reporting, revealing to the SEC that it needed more time to complete its 2023 year-end financials. Now it appears the company will take longer than initially stated to meet Nasdaq compliance.
Before the long Memorial Day weekend, Urban One reported receiving a second notification from the Nasdaq Listing Qualifications Department regarding non-compliance. This notice stems from the company’s failure to timely file its 2024 first-quarter earnings report along with the previously owed annual report with the SEC.
In its May 10 filing, Urban One indicated it would file its Form 10-K for 2023 by May 31. On May 24, Urban One said it is actively working to file the delayed reports by June 7, potentially avoiding the need for a formal compliance plan.
According to Nasdaq rules, Urban One has until June 7 to file these delayed reports or submit a compliance plan. If Nasdaq accepts the plan, the company could receive an extension until September 30 to regain compliance. However, failure to meet the compliance deadline could result in the stock being delisted.
This situation currently does not affect the listing of Urban One’s common stock on Nasdaq.
The delays are due to the need for additional documentation and audits by Ernst & Young. The broadcaster discovered material weaknesses in its internal financial controls, which will be addressed, along with remediation plans, in the upcoming reports. Despite these issues, Urban One expects no changes to previously audited statements.
Urban One’s leadership maintains that financial outcomes for Q4 and the full year 2023 should align with previous forecasts. Nasdaq has given Urban One until June 7 to file its 2023 10-K or submit a compliance plan, with a possible extension until September 11 if approved.
The company remains under Nasdaq’s close watch and must comply by December 29 to avoid potential delisting, though it can appeal if necessary.
