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BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) has received two deficiency notices from Nasdaq Stock Market The first notice is due to the company’s failure to timely file its Q2 2024 Form 10-Q, violating Nasdaq Listing Rule 5250(c)(1). The second notice stems from the resignations of certain board members, resulting in non-compliance with Nasdaq’s audit and compensation committee requirements under Rule 5605.
BurgerFi must submit a compliance plan for the Q2 Form 10-Q within 60 days and has until February 18, 2025, to implement it if accepted. For the board committee issue, the company has 45 days to submit a plan and until February 24, 2025, to regain compliance if the plan is accepted. The company is evaluating options but cannot guarantee submission of plans, Nasdaq acceptance, or regaining compliance within the given periods.
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) ha ricevuto due avvisi di carenza dal Nasdaq Stock Market. Il primo avviso è dovuto al mancato invio tempestivo del modulo 10-Q del secondo trimestre 2024, violando la regola di quotazione Nasdaq 5250(c)(1). Il secondo avviso deriva dalle dimissioni di alcuni membri del consiglio, comportando la non conformità ai requisiti di audit e di compensazione sotto la regola 5605.
BurgerFi deve presentare un piano di conformità per il modulo 10-Q del secondo trimestre entro 60 giorni e ha tempo fino al 18 febbraio 2025 per attuarlo se accettato. Per la questione del comitato del consiglio, l’azienda ha 45 giorni per presentare un piano e fino al 24 febbraio 2025 per ripristinare la conformità se il piano viene accettato. L’azienda sta valutando le opzioni ma non può garantire la presentazione dei piani, l’accettazione da parte del Nasdaq o il ripristino della conformità entro i tempi stabiliti.
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) ha recibido dos avisos de deficiencia del Nasdaq Stock Market. El primer aviso se debe a la falta de presentación puntual de su formulario 10-Q del segundo trimestre de 2024, violando la regla de cotización Nasdaq 5250(c)(1). El segundo aviso surge de las renuncias de ciertos miembros de la junta, lo que resulta en el incumplimiento de los requisitos del comité de auditoría y de compensación bajo la regla 5605.
BurgerFi debe presentar un plan de cumplimiento para el formulario 10-Q del segundo trimestre dentro de 60 días y tiene hasta el 18 de febrero de 2025, para implementarlo si es aceptado. En cuanto al problema del comité de la junta, la empresa tiene 45 días para presentar un plan y hasta el 24 de febrero de 2025, para recuperar la conformidad si el plan es aceptado. La empresa está evaluando opciones, pero no puede garantizar la presentación de planes, la aceptación por parte de Nasdaq o la recuperación de la conformidad dentro de los plazos establecidos.
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW)는 Nasdaq Stock Market으로부터 두 개의 결함 통지를 받았습니다. 첫 번째 통지는 2024년 2분기 10-Q 양식을 제때 제출하지 않은 것과 관련해 발생했으며, 이는 Nasdaq 상장 규칙 5250(c)(1)을 위반한 것입니다. 두 번째 통지는 특정 이사들의 사임으로 인해 발생하며, 이는 규칙 5605에 따른 Nasdaq의 감사 및 보상 위원회 요구 사항에 미달합니다.
BurgerFi는 60일 이내에 2분기 10-Q 양식에 대한 준수 계획을 제출해야 하며, 계획이 수용될 경우 2025년 2월 18일까지 이를 시행해야 합니다. 이사회 위원회 문제에 있어서는 회사가 45일 이내에 계획을 제출해야 하며, 계획이 수용될 경우 2025년 2월 24일까지 준수를 회복해야 합니다. 회사는 옵션을 평가하고 있으나, 주어진 기간 내에 계획 제출, Nasdaq의 수용 또는 준수 회복을 보장할 수는 없습니다.
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) a reçu deux avis de carence de la part du Nasdaq Stock Market. Le premier avis est dû à l’absence de soumission en temps voulu de son formulaire 10-Q pour le deuxième trimestre 2024, enfreignant la règle de cotation Nasdaq 5250(c)(1). Le deuxième avis provient des démissions de certains membres du conseil d’administration, ce qui entraîne une non-conformité avec les exigences de comité d’audit et de rémunération du Nasdaq en vertu de la règle 5605.
BurgerFi doit soumettre un plan de conformité pour le formulaire 10-Q du deuxième trimestre dans les 60 jours et a jusqu’au 18 février 2025 pour l’implémenter si celui-ci est accepté. Concernant le problème du comité du conseil, l’entreprise a 45 jours pour soumettre un plan et jusqu’au 24 février 2025 pour retrouver la conformité si le plan est accepté. L’entreprise évalue ses options mais ne peut garantir la soumission des plans, l’acceptation par le Nasdaq ou le rétablissement de la conformité dans les délais impartis.
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) hat zwei Mängelanzeigen von der Nasdaq Stock Market erhalten. Die erste Anzeige ist auf die Nichtübermittlung des Formulars 10-Q für das zweite Quartal 2024 in einem angemessenen Zeitraum zurückzuführen, was gegen die Nasdaq-Börsennotierungsregel 5250(c)(1) verstößt. Die zweite Anzeige resultiert aus den Rücktritten bestimmter Vorstandsmitglieder, was zur Nichteinhaltung der Anforderungen an den Prüfungs- und Vergütungsausschuss gemäß Regel 5605 führt.
BurgerFi muss innerhalb von 60 Tagen einen Compliance-Plan für das 10-Q-Formular für das 2. Quartal einreichen und hat bis zum 18. Februar 2025 Zeit, diesen umzusetzen, falls er akzeptiert wird. In Bezug auf das Ausschussproblem hat das Unternehmen 45 Tage Zeit, einen Plan einzureichen und bis zum 24. Februar 2025, um die Konformität wiederherzustellen, falls der Plan akzeptiert wird. Das Unternehmen prüft Optionen, kann jedoch nicht garantieren, dass es die Pläne einreicht, dass Nasdaq sie akzeptiert oder dass die Konformität innerhalb der vorgegebenen Fristen wiederhergestellt wird.
Negative
- Failure to timely file Q2 2024 Form 10-Q
- Non-compliance with Nasdaq’s audit and compensation committee requirements
- Risk of potential delisting from Nasdaq if compliance is not regained
- Uncertainty about the company’s ability to submit acceptable compliance plans
- time to address multiple compliance issues simultaneously
BurgerFi’s receipt of Nasdaq deficiency notices is a significant red flag for investors. The company’s failure to file its Q2 Form 10-Q on time suggests potential financial reporting issues or internal control weaknesses. This lack of transparency could erode investor confidence and impact stock liquidity. Moreover, the board resignations leading to non-compliance with audit and compensation committee requirements raise governance concerns. These issues could result in delisting if not addressed promptly, which would severely impact shareholder value. The February 2025 deadlines provide some runway, but the company needs to act swiftly to regain compliance and restore credibility. Investors should closely monitor BurgerFi’s progress in addressing these deficiencies and consider the heightened risk profile.
The Nasdaq deficiency notices present serious compliance challenges for BurgerFi. The company now faces tight deadlines to submit remediation plans for both financial reporting and board composition issues. Failure to meet these deadlines or gain Nasdaq acceptance could lead to delisting proceedings, potentially triggering debt covenant violations or shareholder lawsuits. The board resignations also raise questions about potential underlying issues that prompted these departures. Investors should be aware that these compliance problems may divert management’s attention and resources from core business operations. While the company has time to address these issues, the legal and regulatory risks have significantly increased, potentially impacting BurgerFi’s ability to raise capital or pursue strategic initiatives in the near term.
The deficiency notices highlight severe governance lapses at BurgerFi. The inability to file timely financial reports and maintain proper board committee structures are fundamental corporate governance failures. These issues suggest potential internal control weaknesses and raise questions about the effectiveness of the company’s oversight mechanisms. The resignations of multiple board members, particularly those serving on key committees, are concerning and may indicate deeper organizational problems or disagreements. To regain investor trust, BurgerFi must not only address the immediate compliance issues but also strengthen its overall governance framework. This may involve recruiting experienced board members, enhancing financial reporting processes and improving transparency. The company’s response to these challenges will be important in assessing its commitment to good governance and long-term sustainability.
FORT LAUDERDALE, Fla., Aug. 30, 2024 (GLOBE NEWSWIRE) — BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) (“BurgerFi” or the “Company”), owner of the high-quality, casual dining pizza brand Anthony’s Coal Fired Pizza & Wings (“Anthony’s”) and one of the nation’s leading fast-casual “better burger” dining concepts through the BurgerFi brand, has received deficiency notices from Nasdaq Stock Market LLC (“Nasdaq”) related to the Company’s failure to timely file its Quarterly Report on Form 10-Q for the quarter ended July 1, 2024 (“Q2 Form 10-Q”) and the composition of Board committees arising from the resignation of directors.
On August 27, 2024, Nasdaq provided formal notice to the Company that as a result of the Company’s failure to timely file its Q2 Form 10-Q, the Company does not comply with the continued listing requirements under the timely filing criteria outlined in Nasdaq Listing Rule 5250(c)(1). Also on August 27, 2024, Nasdaq provided formal notice to the Company that as a result of the resignations of certain members of the Company’s Board of Directors, the Company does not comply with Nasdaq’s audit committee and compensation committee requirements set forth in Nasdaq Listing Rule 5605.
The Company is required to submit to Nasdaq within 60 calendar days a plan to regain compliance with respect to the delinquent Q2 Form 10-Q, and if accepted by Nasdaq, the Company has until February 18, 2025 to implement the plan to regain compliance. The Company is required to submit to Nasdaq within 45 calendar days a plan to regain compliance with respect to the composition of its audit committee and compensation committee, and if accepted by Nasdaq, the Company has until February 24, 2025 to evidence compliance. The Company will evaluate available options to regain compliance within the compliance periods, including submission of such plans. However, there can be no assurance that the Company will submit the plans, Nasdaq will accept the plans, or the Company will regain compliance within the compliance periods or maintain compliance with the other Nasdaq listing requirements.
About BurgerFi International (Nasdaq: BFI, BFIIW)
BurgerFi International, Inc. is a leading multi-brand restaurant company that develops, markets, and acquires fast-casual and premium-casual dining restaurant concepts around the world, including corporate-owned stores and franchises. BurgerFi International, Inc. is the owner and franchisor of the two following brands with a combined 162 locations.
Anthony’s. Anthony’s is a premium pizza and wing brand with 60 restaurants (59 corporate-owned casual restaurant locations and one dual brand franchise location), as of April 1, 2024. Known for serving fresh, never frozen and quality ingredients, Anthony’s is centered around a 900-degree coal-fired oven with menu offerings including “well-done” pizza, coal-fired chicken wings, homemade meatballs, and a variety of handcrafted sandwiches and salads. Anthony’s was named “The Best Pizza Chain in America” by USA Today’s Great American Bites, “Top 3 Best Major Pizza Chain” by Mashed in 2021, “The Absolute Best Wings in the U.S.” by Mashed in 2022, and named in “America’s Favorite Restaurant Chains of 2022” by Newsweek.
BurgerFi. BurgerFi is among the nation’s fast-casual better burger concepts with 102 BurgerFi restaurants (75 franchised and 27 corporate-owned) as of April 1, 2024. BurgerFi is chef-founded and committed to serving fresh, all-natural and quality food at all locations, online and via first-party and third-party deliveries. BurgerFi uses 100% American Angus Beef with no steroids, antibiotics, growth hormones, chemicals or additives. BurgerFi’s menu also includes high-quality Wagyu Beef Blend Burgers, All-Natural Chicken offerings, Hand-Cut Sides, and Frozen Custard Shakes. BurgerFi was named “The Very Best Burger” at the 2023 edition of the nationally acclaimed SOBE Wine and Food Festival and “Best Fast Food Burger” in USA Today’s 10Best 2023 Readers’ Choice Awards for its BBQ Rodeo Burger, “Best Fast Casual Restaurant” in USA Today’s 10Best 2023 Readers’ Choice Awards for the third consecutive year, QSR Magazine’s Breakout Brand of 2020 and Fast Casual’s 2021 #1 Brand of the Year. In 2021, Consumer Reports awarded BurgerFi an “A Grade Angus Beef” rating for the third consecutive year. To learn more about BurgerFi or to find a full list of locations, please visit www.burgerfi.com. BurgerFi® is a Registered Trademark of BurgerFi IP, LLC, a wholly-owned subsidiary of BurgerFi.
Forward-Looking Statements
This press release may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding the Company’s expectation about any or all of the following: (i) the intent and plan of the Company to submit a plan of compliance with respect to, and regain compliance with, Nasdaq Listing Rule 5250(c)(1) and Nasdaq Listing Rule 5605, and (ii) the anticipated actions by the Staff and the Company’s responses and their anticipated outcomes. Forward-looking statements generally can be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “will be,” “will continue,” “will likely result,” and similar expressions. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, our ability to submit and have accepted plans of compliance with The Nasdaq Stock Market LLC, our ability to regain compliance with Nasdaq Listing Rule 5250(c)(1) and Nasdaq Listing Rule 5605 and otherwise maintain our listing with The Nasdaq Stock Market LLC along with those risks and uncertainties described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on April 10, 2024, the Company’s Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission on May 16, 2024, and in any other filings made by the Company with the U.S. Securities and Exchange Commission, which are available at www.sec.gov. All subsequent written and oral forward-looking statements attributable to BurgerFi or persons acting on BurgerFi’s behalf are expressly qualified in their entirety by the cautionary statements included in this press release. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
Investor Relations:
ICR
Michelle Michalski
IR-BFI@icrinc.com
646-277-1224
Company Contact:
BurgerFi International Inc.
IR@burgerfi.com
Media Relations Contact:
Ink Link Marketing
Kim Miller
Kmiller@inklinkmarketing.com
FAQ
What Nasdaq deficiency notices did BurgerFi (BFI) receive on August 27, 2024?
BurgerFi received two deficiency notices from Nasdaq: one for failing to timely file its Q2 2024 Form 10-Q, and another for non-compliance with Nasdaq’s audit and compensation committee requirements due to director resignations.
What is the deadline for BurgerFi (BFI) to submit a compliance plan for its Q2 2024 Form 10-Q?
BurgerFi has 60 calendar days from August 27, 2024, to submit a plan to regain compliance with Nasdaq regarding the timely filing of its Q2 2024 Form 10-Q.
When is the deadline for BurgerFi (BFI) to regain compliance with Nasdaq’s board committee requirements?
If Nasdaq accepts BurgerFi’s compliance plan, the company has until February 24, 2025, to evidence compliance with Nasdaq’s audit and compensation committee requirements.
What are the potential consequences if BurgerFi (BFI) fails to regain compliance with Nasdaq requirements?
If BurgerFi fails to regain compliance within the given periods or maintain compliance with other Nasdaq listing requirements, the company risks potential delisting from the Nasdaq stock exchange.
