COMSovereign Receives Notice from Nasdaq Regarding Delayed Quarterly Report
COMSovereign Holding Corp. (NASDAQ: COMS, COMSP) announced on August 25, 2022, that it received a notice from Nasdaq regarding non-compliance with Listing Rule 5250(c)(1) for failing to file its Quarterly Report on Form 10-Q for Q2 2022. The delay arose from complex valuations due to six acquisitions, including two outside the U.S. The company previously received an extension to file its Form 10-K by September 1, 2022. An update to its compliance plan is also required by that date following this additional filing delinquency.
- The company is actively seeking to comply with Nasdaq listing requirements by preparing a compliance plan.
- Non-compliance with Nasdaq Listing Rule 5250(c)(1) due to delayed filing of Form 10-Q for Q2 2022.
- Complex valuations from six acquisitions delayed necessary filings, potentially risking investor confidence.
DALLAS, Aug. 25, 2022 /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 and solutions, today announced that on August 17, 2022, it received a letter from the Listing Qualifications Department of the Nasdaq Stock Market ("Nasdaq") stating that the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1) (the "Rule") because the Company failed to timely file its Quarterly Report on Form 10-Q for the period ended June 30, 2022, with the Securities and Exchange Commission (the "SEC").
As previously disclosed in the Form 12b-25 filed on March 31, 2022 by the Company with the SEC, the Company was unable to file the Form 10-K by the required due date of March 31, 2022 due to the six acquisitions completed by the Company during the last fiscal year, two of which are based outside of the United States, requiring complex outside valuations and purchase price allocations in order to comply with U.S. GAAP accounting principles. In addition, the Company was obtaining appraisals of impairment of goodwill, which was taking more time than expected.
On July 22, 2022, Staff granted the Company an exception until September 1, 2022, to file its delinquent Form 10-K for the fiscal year ended December 31, 2021 (the "Form 10-K") and Form 10-Q for the period ended March 31, 2022 (the "March 31, 2022 Form 10-Q"). The Company filed its Form 10-K for the period ended December 31, 2021 on August 16, 2022. Under the terms of the exception, the Company is required to evidence compliance with all delinquent filings by September 1, 2022. As a result of this additional delinquency, the Company must submit an update by September 1, 2022 to its plan to regain compliance with respect to the filing requirement.
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. Moreover, forward-looking statements in this release include, but are not limited to, the impact of the current COVID-19 pandemic, which may limit access to the Company's facilities, customers, management, support staff, and professional advisors, and to develop and deliver advanced voice and data communications systems, demand for the Company's products and services, the availability of parts and components for the manufacture of products, economic conditions in the U.S. and worldwide, and the Company's ability to recruit and retain management, technical, and sales personnel. 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
View original content to download multimedia:https://www.prnewswire.com/news-releases/comsovereign-receives-notice-from-nasdaq-regarding-delayed-quarterly-report-301612173.html
SOURCE COMSovereign Holding Corp.
FAQ
What notice did COMSovereign receive from Nasdaq?
What is the deadline for COMSovereign to comply with Nasdaq filing requirements?
What was the reason for COMSovereign's delayed filings?
When was COMSovereign's last filing made?
What rules are COMSovereign's filings related to?
