Urban One‘s annual report for fiscal year 2022 hasn’t been filed with the SEC as of yet. The company’s Q1 2023 earnings report hasn’t been submitted to the regulatory commission yet, either.
Urban One has explained why, but that hasn’t stopped the Nasdaq from issuing a noncompliance warning.
As RBR+TVBR first reported on May 10, an adjustment to Urban One financial statements as of January 1, 2021 are needed.
This came after the multimedia company superserving African American consumers shared on April 7 that, in connection with the preparation of its financial statements for 2022, company management, in consultation with its independent registered public accounting firm, re-evaluated its accounting for the valuation of its investment interest in MGM National Harbor.
Urban One’s on April 21 sold its interest in the Prince George’s County, Md., casino resort for cash proceeds of approximately $136.8 million.
But, Urban One explained, understatements in the value of its MGM Interest forced the company to delay those financial statements. There’s more: further review of the company’s accounting for its MGM interest led to the determination that adjustments are required to the company’s financial statements as of January 1, 2021. Thus, adjustments are required for each of the annual and interim periods ended December 31, 2021 and September 30, 2022.
For Nasdaq, the reasons why neither the 10K filing with the fiscal 2022 earnings report or the Q1 2023 earnings have been submitted are inconsequential. The fact that these actions were not done means Urban One has failed to meet the requirements of Nasdaq Listing Rule 5250(c)(1).
Importantly, the notification has no immediate impact on Urban One shares, which were trading at $7.24 in immediate after-hours trading on Tuesday.
However, should Urban One fail to “timely regain compliance” with the rule, the company’s common stock will be subject to delisting from NASDAQ.
As of today, Urban One has until Friday, June 2 to submit a plan to file both delinquent reports or to submit a plan to regain compliance with respect to the delinquent reports.
Should Nasdaq accept the company’s plan, Nasdaq may grant Urban One up to 180 days from the due date, or September 27, 2023, for filing the delinquent reports to regain compliance.
In the event NASDAQ does not accept the company’s plan, then Urban One will have the opportunity to appeal that decision to a Nasdaq Hearings Panel.
This is unlikely, as Urban One said it intends to submit its plan to regain compliance with respect to the delinquent reports on or before June 2.
