As RBR+TVBR previously reported, Urban One has not yet released its first quarter 2023 fiscal results. It is now known that the Q1 and Q2 2023 results will likely not arrive from the African American-focused multimedia company for perhaps another six weeks.
The delay is directly linked to the decision by the Audit Committee of Urban One’s Board of Directors to part ways with BDO as the company’s independent registered public accounting firm, effective July 12.
That action came after Urban One realized that initial accounting underestimated the value of its now-concluded MGM National Harbor Casino investment. This was revealed on May 10, just weeks after Urban One sold its interest in the Prince George’s County, Md., gaming resort for cash proceeds of approximately $136.8 million.
That understatement forced Urban One to review and, ultimately rework, its quarterly earnings. And, that led to a Nasdaq noncompliance warning as its SEC filings were tardy. With shares at $5.65 with 35 minutes remaining in Friday’s trading, UONE’s noncompliance is in no way tied to a minimum share value failure.
With BDO’s dismissal, the Audit Committee appointed Ernst & Young LLP (EY) to serve as its new independent registered public accounting firm for FY 2023, effective immediately. But, EY needs time to rework all of the financial figures for Urban One. As such, Urban One anticipates filing both its first-half 2023 quarterly reports “on or about September 30.”
Given this delay, Urban One anticipates that it will receive another letter from the Nasdaq Listing Qualifications Department notifying the company that it will not be in compliance with requirements of Nasdaq Listing Rule 5250(c)(1), as a result of not having timely filed its Q1 or Q2 2023 Form 10-Q reports with the SEC.
It is expected that Nasdaq will permit Urban One to file the reports by September 27, in accordance with the terms of its current compliance plan.
