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urban-gro, Inc. (NASDAQ:UGRO) has received a notice from Nasdaq on August 20, 2024, stating that the company is no longer in compliance with Nasdaq listing Rule 5250(c)(1) due to not filing its Q2 2024 10-Q report on time. This non-compliance does not immediately affect UGRO’s listing on the Nasdaq Capital Market. The delay is due to the need to restate financial statements from 2022 to Q1 2024 because of errors in accounting for deferred tax liabilities related to historical share-purchase acquisitions.
The company has until October 21, 2024, to submit a compliance plan to Nasdaq. If accepted, UGRO may have until February 18, 2025, to regain compliance. urban-gro intends to file the amended reports as soon as possible and, if necessary, submit a compliance plan to Nasdaq.
urban-gro, Inc. (NASDAQ:UGRO) ha ricevuto una comunicazione da Nasdaq il 20 agosto 2024, in cui si informa che l’azienda non è più in conformità con la Regola di quotazione 5250(c)(1) di Nasdaq a causa della mancata presentazione del rapporto 10-Q per il secondo trimestre del 2024 entro i termini previsti. Questa non conformità non influisce immediatamente sulla quotazione di UGRO nel Nasdaq Capital Market. Il ritardo è dovuto alla necessità di rivedere i bilanci finanziari dal 2022 al primo trimestre del 2024 a causa di errori nella contabilizzazione delle passività fiscali differite relative ad acquisizioni azionarie storiche.
L’azienda ha tempo fino al 21 ottobre 2024 per presentare un piano di conformità a Nasdaq. Se accettato, UGRO potrebbe avere tempo fino al 18 febbraio 2025 per ripristinare la conformità. urban-gro intende presentare i rapporti modificati il prima possibile e, se necessario, inviare un piano di conformità a Nasdaq.
urban-gro, Inc. (NASDAQ:UGRO) recibió un aviso de Nasdaq el 20 de agosto de 2024, indicando que la empresa ya no cumple con la Regla de cotización 5250(c)(1) de Nasdaq debido a que no presentó su informe 10-Q del segundo trimestre de 2024 a tiempo. Esta falta de cumplimiento no afecta inmediatamente la cotización de UGRO en el Nasdaq Capital Market. El retraso se debe a la necesidad de rehacer los estados financieros de 2022 al primer trimestre de 2024 debido a errores en la contabilidad de las pasivos fiscales diferidos relacionados con adquisiciones de acciones históricas.
La empresa tiene hasta el 21 de octubre de 2024 para presentar un plan de cumplimiento a Nasdaq. Si es aceptado, UGRO podría tener hasta el 18 de febrero de 2025 para recuperar la conformidad. urban-gro tiene la intención de presentar los informes enmendados tan pronto como sea posible y, si es necesario, enviar un plan de cumplimiento a Nasdaq.
urban-gro, Inc. (NASDAQ:UGRO)는 2024년 8월 20일 Nasdaq으로부터 통지를 받았습니다. 해당 통지는 회사가 2024년 2분기 10-Q 보고서를 제때 제출하지 않아 Nasdaq 상장 규칙 5250(c)(1) 준수를 더 이상 유지할 수 없다고 알렸습니다. 이 불이행은 UGRO의 Nasdaq 자본 시장 상장에 즉시 영향을 미치지 않습니다. 지연의 원인은 역사적 주식 매입과 관련된 이연 법인세 부채의 회계 오류로 인해 2022년부터 2024년 1분기까지의 재무제표를 수정할 필요가 있었기 때문입니다.
회사는 2024년 10월 21일까지 Nasdaq에 준수 계획을 제출해야 합니다. 만약 승인된다면, UGRO는 2025년 2월 18일까지 준수를 회복할 수 있는 시간을 가질 수 있습니다. urban-gro는 가능한 한 빨리 수정된 보고서를 제출할 계획이며, 필요할 경우 Nasdaq에 준수 계획을 제출할 것입니다.
urban-gro, Inc. (NASDAQ:UGRO) a reçu un avis de Nasdaq le 20 août 2024, indiquant que la société n’est plus en conformité avec la Règle d’inscription 5250(c)(1) de Nasdaq en raison du non-respect du calendrier de dépôt de son rapport 10-Q pour le deuxième trimestre de 2024. Ce non-respect n’affecte pas immédiatement l’inscription de UGRO sur le Nasdaq Capital Market. Le retard est dû à la nécessité de revoir les états financiers de 2022 au premier trimestre de 2024 en raison d’erreurs dans la comptabilisation des passifs fiscaux différés liés à des acquisitions d’actions historiques.
La société a jusqu’au 21 octobre 2024 pour soumettre un plan de conformité à Nasdaq. Si ce plan est accepté, UGRO pourrait avoir jusqu’au 18 février 2025 pour retrouver la conformité. urban-gro a l’intention de déposer les rapports modifiés dès que possible et, si nécessaire, de soumettre un plan de conformité à Nasdaq.
urban-gro, Inc. (NASDAQ:UGRO) hat am 20. August 2024 eine Mitteilung von Nasdaq erhalten, in der erklärt wird, dass das Unternehmen die Nasdaq-Listing-Regel 5250(c)(1) nicht mehr einhält, weil es seinen 10-Q-Bericht für das zweite Quartal 2024 nicht rechtzeitig eingereicht hat. Diese Nichterfüllung hat keine sofortigen Auswirkungen auf die Notierung von UGRO am Nasdaq Capital Market. Die Verzögerung ist auf die Notwendigkeit zurückzuführen, die Finanzberichte von 2022 bis zum ersten Quartal 2024 aufgrund von Fehlern in der Bilanzierung von aktiven latenten Steuerschulden im Zusammenhang mit historischen Aktienkäufen zu überarbeiten.
Das Unternehmen hat bis zum 21. Oktober 2024 Zeit, um einen Plan zur Einhaltung an Nasdaq einzureichen. Wenn dieser angenommen wird, könnte UGRO bis zum 18. Februar 2025 Zeit haben, um die Compliance wiederherzustellen. urban-gro beabsichtigt, die geänderten Berichte so schnell wie möglich einzureichen und gegebenenfalls einen Compliance-Plan an Nasdaq zu übermitteln.
Negative
- Non-compliance with Nasdaq listing Rule 5250(c)(1) due to delayed Q2 2024 10-Q filing
- Need to restate financial statements from 2022 to Q1 2024 due to accounting errors
- Risk of potential delisting if compliance plan is not accepted or implemented successfully
This non-compliance notification from Nasdaq is a significant red flag for investors. The need to restate financial statements for multiple periods due to accounting errors in deferred tax liabilities is concerning. It suggests potential weaknesses in urban-gro’s financial reporting processes and internal controls.
The company now faces a tight timeline to regain compliance, which could divert management’s attention from core business operations. There’s a risk of delisting if urban-gro fails to meet Nasdaq’s requirements, which could severely impact stock liquidity and investor confidence. While the immediate trading status isn’t affected, this situation adds uncertainty and may lead to increased volatility in UGRO’s stock price.
The accounting errors and subsequent need for restatements raise potential legal and regulatory concerns. Investors might question the reliability of urban-gro’s financial reporting, possibly leading to shareholder lawsuits. The SEC could also scrutinize the company’s disclosures and internal controls more closely.
urban-gro’s compliance plan will be crucial. If accepted by Nasdaq, it could provide a grace period of up to 180 days to rectify the situation. However, failure to meet the extended deadline could result in delisting proceedings. This event underscores the importance of robust financial reporting systems and the potential consequences of non-compliance with listing rules.
This development could have ripple effects across the Controlled Environment Agriculture (CEA) sector. As a key player, urban-gro’s financial reporting issues might lead to increased scrutiny of other CEA companies, potentially impacting investor sentiment towards the entire industry.
The company’s focus on resolving these accounting matters may slow down its growth initiatives and market expansion plans in the short term. Competitors could seize this opportunity to gain market share. Long-term, if urban-gro successfully addresses these issues, it could emerge with stronger financial controls, potentially rebuilding investor trust. However, the path to recovery may be challenging and time-consuming.
LAFAYETTE, CO / ACCESSWIRE / August 23, 2024 / urban-gro, Inc. (NASDAQ:UGRO) (“urban-gro” or the “Company”), an integrated professional services and Design-Build firm offering solutions to the Controlled Environment Agriculture (“CEA”) and other commercial sectors, today announced that the Company received a notice (the “Notice) from The Nasdaq Stock Market LLC (“Nasdaq”) on August 20, 2024, stating that because the Company had not yet filed its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024 (the “Form 10-Q”), the Company is no longer in compliance with Nasdaq listing Rule 5250(c)(1), which requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission.
This notification has no immediate effect on the listing of the Company’s common stock on the Nasdaq Capital Market.
As disclosed in the Current Report on Form 8-K filed by the Company on August 14, 2024, the Company’s audit committee, in consultation with the Company’s independent public accounting firm, concluded that, as a result of inadvertent errors in the accounting for deferred tax liabilities associated with historical share-purchase acquisitions made by the Company, it is appropriate to restate the Company’s previously issued financial statements as of and for the fiscal years ended December 31, 2022 and December 31, 2023 and condensed consolidated interim financial statements as of and for the fiscal periods ended March 31, 2022, June 30, 2022, September 30, 2022, March 31, 2023, June 30, 2023, September 30, 2023, and March 31, 2024 in a comprehensive amended Annual Report on Form 10-K (the “Amended Form 10-K”) for the fiscal year ended December 31, 2023 with expanded financial information and other disclosures in lieu of filing separate amended annual and quarterly reports for the affected periods during the fiscal years ended December 31, 2022 and December 31, 2023 and in an amended Quarterly Report on Form 10-Q for the three months ended March 31, 2024 (the “Amended Form 10-Q”). Given the scope of the process for preparing the Amended Form 10-K and Amended Form 10-Q, the Company was unable to complete and file the Form 10-Q by the required due date of August 15, 2024. On August 14, 2024, the Company filed a Form 12b-25 Notification of Late Filing with the SEC related to the Form 10-Q.
The Notice states that the Company has 60 calendar days from August 20, 2024, or until October 21, 2024, to submit to Nasdaq a plan to regain compliance with the Nasdaq Listing Rules. The Company intends to file the Amended Form 10-K, the Amended Form 10-Q, and Form 10-Q as soon as practicable and, if necessary, to submit a plan with Nasdaq to regain compliance. If Nasdaq accepts the Company’s plan, then Nasdaq may, at its discretion, grant the Company up to 180 days from the prescribed due date for filing the Form 10-Q, or until February 18, 2025, to regain compliance. If Nasdaq does not accept the Company’s plan, then the Company will have the opportunity to appeal that decision to a Nasdaq Hearings Panel.
About urban-gro, Inc.
urban-gro, Inc.® (Nasdaq:UGRO) is an integrated professional services and Design-Build firm. We offer value-added architectural, engineering, and construction management solutions to the Controlled Environment Agriculture (“CEA”), industrial, healthcare, and other commercial sectors. Innovation, collaboration, and creativity drive our team to provide exceptional customer experiences. With offices across North America and in Europe, we deliver Your Vision – Built. Learn more by visiting www.urban-gro.com
Safe Harbor Statement
This press release contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this release, terms such as “believes,” “will,” “expects,” “anticipates,” “may,” “projects” and similar expressions and variations as they relate to the Company or its management are intended to identify forward-looking statements. The forward-looking statements in this press release include, without limitation, the expected scope of the material misstatements identified in this press release and the expected timing of filing restated periodic reports and the Form 10-Q for the Company’s second fiscal quarter of 2024. These and other forward-looking statements are based on the current expectations, forecasts, beliefs and assumptions of the Company’s management and are subject to risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including, among others, our ability to meet the other continued listing rules of Nasdaq and whether Nasdaq exercises its discretion, if necessary, to grant an extension period based on any plan of compliance we submit. A more detailed description of these and certain other factors that could affect actual results is included in the Company’s filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date hereof, except as may be required by law.
Investor Contacts:
Jeff Sonnek – ICR, Inc.
(720) 730-8160
investors@urban-gro.com
Media Contact:
Barbara Graham – urban-gro, Inc.
(720) 903-1139
media@urban-gro.com
SOURCE: urban-gro, Inc.
View the original press release on accesswire.com
FAQ
Why did urban-gro (UGRO) receive a non-compliance notice from Nasdaq?
urban-gro (UGRO) received a non-compliance notice from Nasdaq on August 20, 2024, because it failed to file its Q2 2024 10-Q report on time, violating Nasdaq listing Rule 5250(c)(1).
What is the deadline for urban-gro (UGRO) to submit a compliance plan to Nasdaq?
urban-gro (UGRO) has until October 21, 2024, to submit a plan to Nasdaq to regain compliance with the listing rules.
What caused the delay in urban-gro’s (UGRO) Q2 2024 10-Q filing?
The delay in urban-gro’s (UGRO) Q2 2024 10-Q filing was caused by the need to restate financial statements from 2022 to Q1 2024 due to errors in accounting for deferred tax liabilities related to historical share-purchase acquisitions.
Will urban-gro (UGRO) be immediately delisted from Nasdaq due to this non-compliance?
No, urban-gro (UGRO) will not be immediately delisted. The non-compliance notice has no immediate effect on the company’s listing on the Nasdaq Capital Market.
