Direct Digital Holdings, Inc. - DRCT STOCK NEWS

Direct Digital Holdings (Nasdaq: DRCT) has filed its Form 10-K for 2023 and Form 10-Q reports for Q1 and Q2 2024. The company believes these filings demonstrate compliance with Nasdaq Listing Rule 5250(c)(1) and awaits formal confirmation. CEO Mark D. Walker expressed satisfaction with completing the filings, while President Keith Smith addressed challenges faced, including their previous auditor's resignation and alleged misinformation attacks. The company has taken actions to address these issues, including expense reduction, debt covenant relief, and engaging BDO USA as their new auditor.

Direct Digital Holdings expects to regain Nasdaq compliance, access capital markets, and rebuild sell-side volumes. However, due to recent challenges, the company is unable to provide guidance for full-year 2024 at this time. CFO Diana Diaz reaffirmed commitment to reestablishing normal financial reporting cadence.

Colossus SSP, an inclusive supply-side advertising platform, has joined the Media Rating Council's (MRC) Digital Ad Auction Standards Working Group. This initiative aims to enhance transparency, standardization, and predictability in digital advertising auctions. The working group will focus on:

• Enhancing transparency in digital ad auction rules and practices
• Standardizing reporting of auction variables and outcomes
• Developing a framework for independent audit and verification

Colossus SSP's participation aligns with its mission to drive innovation and foster trust in the programmatic ecosystem. The company's involvement will also support its Momentum initiative, which aids underrepresented, diverse digital publishers. This collaboration is expected to provide deeper insights into MRC's accreditation framework, potentially unlocking more ad dollars and opportunities for publishers.

Colossus SSP, a subsidiary of Direct Digital Holdings (DDH), has partnered with Confiant to combat malicious advertising and enhance digital ad security. This collaboration aims to protect publishers, advertisers, and consumers by integrating Confiant's cybersecurity technology with Colossus SSP's platform.

Key outcomes of the partnership include:

• Reduction of security violations from 0.19% to less than 0.002%
• Decrease in ad quality violations from 1.57% to 0.08%
• Overall 95% reduction in security and quality issues
• Ads served through Colossus SSP are now 20x safer than industry norms

The partnership addresses the growing threat of malvertising, which has caused U.S. consumers to lose over $12.5 billion in the past year. Colossus SSP's network of 21,000+ publishers and billions of monthly impressions will benefit from enhanced protection against malicious ads and improved ad quality.

Direct Digital Holdings (DRCT) has received an additional delinquency notice from Nasdaq on August 21, 2024, due to the delayed filing of its Q2 2024 Form 10-Q. This non-compliance with Nasdaq Listing Rule 5250(c)(1) could potentially lead to delisting. The company had previously received similar notices for its 2023 Form 10-K and Q1 2024 Form 10-Q filings. Nasdaq has approved the company's compliance plan, which aims to file the delayed reports by October 14, 2024. Direct Digital Holdings must update Nasdaq on its plan to file the Q2 Form 10-Q by September 5, 2024. Despite these issues, the company's stock continues to trade on The Nasdaq Capital Market under the symbol 'DRCT'.

Direct Digital Holdings (Nasdaq: DRCT) has appointed BDO USA, P.C. as its new independent registered public accounting firm, effective June 10, 2024. BDO, a top-five global accounting firm with over 12,000 professionals in 75 U.S. offices, succeeds Marcum LLP. Diana Diaz, CFO of Direct Digital Holdings, highlighted BDO's expertise in the advertising technology sector as a key reason for their selection. The company aims to enhance its financial reporting and corporate governance, returning to a normal schedule for quarterly and annual filings soon. Direct Digital Holdings operates through subsidiaries Colossus SSP, Huddled Masses, and Orange 142, managing over 115,000 clients monthly and generating 326 billion impressions per month.

Direct Digital Holdings announced that it received a delinquency notification from the Nasdaq on May 21, 2024, due to a delay in filing its quarterly report for Q1 2024. This follows an earlier notification on April 17, 2024, for failing to file its annual report for 2023 on time. The company must submit a compliance plan by June 17, 2024, and, if accepted, could have until October 14, 2024, to regain compliance. As of now, this non-compliance has no immediate effect on the listing or trading of its stock (symbol: DRCT) on the Nasdaq Capital Market. The company is working to file the delayed reports as soon as possible.

Colossus SSP, an inclusive supply-side advertising platform and part of Direct Digital Holdings (Nasdaq: DRCT), has filed a civil lawsuit against Adalytics Research for defamation, injurious falsehood, and false advertising. The legal action follows Adalytics' publication of a paper on May 10, 2024, that accused Colossus SSP of manipulating digital data for financial gain. Colossus SSP asserts that these claims are false and that the paper has damaged its reputation and business operations. The lawsuit highlights that Colossus SSP does not control customer ID data directly and works with intermediaries that manage such transactions. The company also argues that Adalytics did not engage with them before publishing the paper, leading to substantial financial and reputational harm. Colossus SSP aims to clear its name and demonstrate its commitment to ethical business practices.

Direct Digital Holdings, Inc. received a notification from Nasdaq regarding non-compliance with Listing Rule 5250(c)(1) due to a delay in filing its Annual Report. The company has until June 16, 2024, to submit a plan to regain compliance, with a possible extension until October 14, 2024. The non-compliance does not impact the trading of the company's securities on Nasdaq. The company is working to complete the audit and file the Annual Report to meet the requirements.

Direct Digital Holdings, Inc. releases a whitepaper highlighting the significant influence of multicultural and diverse consumers, especially Gen Z, on mainstream brand choices. The report reveals that 57% of the general population is influenced by these communities, emphasizing the need for brands to connect authentically for broader sales.