COMSovereign Files 10-Q For the Quarter Ended September 30, 2022 Regaining "Current Filer" Status with the Security and Exchange Commission and Nasdaq

Rhea-AI Summary

COMSovereign Holding Corp. (NASDAQ: COMS, COMSP) has filed its quarterly report for the period ended September 30, 2022, regaining compliance with SEC and Nasdaq financial reporting requirements. The company reported a 16% increase in quarterly revenue and successfully reduced total operating expenses by over 70% compared to the same quarter last year. CEO David Knight noted the significance of restoring the company's status as a current filer and highlighted the achievement of critical objectives, including debt reduction. Additionally, a shareholder-approved reverse split was executed to address Nasdaq's minimum bid rule.

Positive

• Quarterly revenue increased by approximately 16%.
• Total operating expenses reduced by over 70%.
• Achieved compliance with SEC and Nasdaq financial reporting requirements.
• Successful execution of debt reduction strategies.

Negative

• None.

- Quarterly Revenue from Continuing Operations Increases by Approximately 16% and Total Operating Expenses Reduced by Over 70% Versus Year-Ago Quarter as Business Refocusing and Cost Cutting Activities Accelerate -

TUCSON, Ariz., Feb. 27, 2023 /PRNewswire/ -- COMSovereign Holding Corp. (NASDAQ: COMS and COMSP) ("COMSovereign" or the "Company"), a U.S.-based developer of 4G LTE Advanced and 5G communication systems announced the filing of its quarterly report on Form 10-Q for the period ended September 30, 2022. The filing of the Company's most recently quarterly report brings it into compliance with Security and Exchange ("SEC") and Nasdaq Capital Markets financial reporting requirements.

"The filing of our third quarter 2022 financial report is a milestone as it restores COMSovereign's status as a 'current filer' under SEC and Nasdaq listing requirements. We are especially pleased to have produced revenue growth while dramatically reducing G&A and overall operating expenses as we executed against our streamlining and refocusing initiatives," stated David Knight, CEO and President of COMSovereign. "As we stand here today, we have achieved many of the critical objectives of our business transition plan, specifically, regaining compliance with our filing requirements, cutting operating expenses and significantly reducing our outstanding debt. These actions create a stronger foundation, supporting our team as we continue to focus on driving long-term value for our DragonWave, Fastback, Saguna, and Drone Aviation customers, our global network of partners, and our shareholders."

The Company is addressing its non-compliance with Nasdaq's $1.00 minimum bid rule by effectuating a shareholder-approved reverse split of its common shares prior to market trading on February 10, 2023.

For more information about COMSovereign, please visit www.COMSovereign.com and connect with us on Facebook and Twitter.

About COMSovereign Holding Corp.
COMSovereign Holding Corp. (Nasdaq: COMS) has assembled a portfolio of communications technology companies that enhance connectivity across the entire data transmission spectrum. Through strategic acquisitions and organic research and development efforts, COMSovereign has become a U.S.-based communications provider able to provide 4G LTE Advanced and 5G telecom solutions to network operators and enterprises. For more information about COMSovereign, please visit www.COMSovereign.com.

Forward-Looking Statements
Certain statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions, and estimates of future performance and economic conditions, and involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as "believe," "expects," "may," "looks to," "will," "should," "plan," "intend," "on condition," "target," "see," "potential," "estimates," "preliminary," or "anticipates" or the negative thereof or comparable terminology, or by discussion of strategy or goals or other future events, circumstances, or effects. Further information relating to factors that may impact the Company's results and forward-looking statements are disclosed in the Company's filings with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contacts:

Steve Gersten, Director of Investor Relations
COMSovereign Holding Corp.
813-334-9745
investors@comsovereign.com

and

Media Relations for COMSovereign Holding Corp.:
Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net

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SOURCE COMSovereign Holding Corp.

FAQ

What were the key financial results for COMSovereign in Q3 2022?

COMSovereign reported a 16% increase in quarterly revenue and reduced total operating expenses by over 70% compared to the previous year.

When did COMSovereign regain its current filer status?

COMSovereign regained its current filer status on February 27, 2023, upon filing its quarterly report.

What actions did COMSovereign take to comply with Nasdaq requirements?

COMSovereign executed a shareholder-approved reverse split of its common shares to address Nasdaq's $1.00 minimum bid rule.

How did COMSovereign manage its operating expenses?

COMSovereign managed to reduce its total operating expenses by over 70% through business refocusing and cost-cutting activities.