Edgio, Inc. Receives Expected Notice from NASDAQ

Rhea-AI Summary

Edgio (Nasdaq: EGIO) has received an expected notice from Nasdaq on August 21, 2024, stating the company's non-compliance with Nasdaq Listing Rule 5250(c)(1). This is due to Edgio's failure to file its Q2 2024 Quarterly Report with the SEC. The notice does not immediately affect Edgio's listing on the Nasdaq Capital Market. Edgio must update its compliance action plan to regain compliance. If Nasdaq accepts the plan, Edgio may have until September 30, 2024, to file its Annual Report, Q1 Quarterly Report, and Q2 Quarterly Report to maintain its listing.

Positive

• None.

Negative

• Failure to file Q2 2024 Quarterly Report on time
• Non-compliance with Nasdaq Listing Rule 5250(c)(1)
• Risk of potential delisting if compliance is not regained by September 30, 2024

Insights

Financial Analyst

Edgio's receipt of a non-compliance notice from Nasdaq is a red flag for investors. The delay in filing the Q2 Quarterly Report suggests potential financial reporting issues or internal control weaknesses. This situation could lead to:

• Increased scrutiny from regulators and auditors
• Potential loss of investor confidence
• Risk of delisting if compliance is not achieved

The extended deadline until September 30, 2024, provides some breathing room, but the company must act swiftly to address the underlying issues. Investors should closely monitor Edgio's progress in filing the overdue reports and any subsequent restatements or material weaknesses disclosed. This event may impact the company's ability to raise capital and its overall market perception.

Legal Expert

The non-compliance notice from Nasdaq raises significant legal and regulatory concerns for Edgio. Key points to consider:

• Potential violations of SEC reporting requirements
• Risk of shareholder lawsuits alleging inadequate disclosure
• Increased scrutiny from the SEC and other regulatory bodies

The company must navigate a complex legal landscape to regain compliance. This includes not only filing the overdue reports but also ensuring the accuracy and completeness of the financial statements. Any material misstatements or omissions could lead to severe legal consequences. Investors should be wary of the potential for regulatory investigations and the associated legal costs that may impact Edgio's financial position.

Corporate Governance Expert

Edgio's failure to file its Q2 Quarterly Report on time indicates potential weaknesses in corporate governance and internal controls. This situation raises several concerns:

• Possible inadequacies in financial reporting processes
• Questions about the effectiveness of the audit committee
• Potential gaps in risk management and oversight

The company's board and management must take swift and decisive action to address these issues. This may involve strengthening internal controls, enhancing the finance team, or making changes to the board composition. Investors should look for transparency in Edgio's communications about the causes of the delay and the specific steps being taken to prevent future occurrences. The company's response to this situation will be important in rebuilding trust with stakeholders and ensuring long-term compliance.

PHOENIX--(BUSINESS WIRE)-- Edgio, Inc. (Nasdaq: EGIO) (the “Company”), today announced that it received an expected notice (the “Notice”) on August 21, 2024 from The Nasdaq Stock Market LLC (“Nasdaq”) stating that the Company is not in compliance with the requirements for continued listing under Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”) because the Company has not yet filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 (the “Q2 Quarterly Report”) with the Securities and Exchange Commission (the “SEC”). The Notice has no immediate effect on the listing or trading of the Company’s common stock on the Nasdaq Capital Market.

The Company previously reported in its Notification of Late Filing on Form 12b-25, filed with the SEC on August 12, 2024, that the Company was unable to file its Q2 Quarterly Report within the prescribed time period.

The Notice states that the Company must update its previously submitted compliance action plan to regain compliance with the Listing Rule. If Nasdaq accepts the Company’s plan to regain compliance, then Nasdaq may grant the Company up to 180 calendar days from the prescribed due date of the Annual Report, or until September 30, 2024, to file the Annual Report, Q1 Quarterly Report and the Q2 Quarterly Report to regain compliance.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These statements include, among others, statements regarding the Company’s current expectations and intentions with respect to the filing of its Annual Report. Our expectations and beliefs regarding these matters may not materialize. It is very difficult to predict the effect of known factors, and the Company cannot anticipate all factors that could affect actual results that may be important to an investor. All forward-looking information should be evaluated in the context of these risks, uncertainties, and other factors, including those factors disclosed in our SEC filings, including our most recent reports on Form 10-K and 10-Q, particularly under the heading “Risk Factors.” Copies of these filings are available online on our investor relations website at investors.edg.io and on the SEC website at www.SEC.gov. All information provided in this release and in the attachments is as of August 28, 2024, and we undertake no duty to update this information in light of new information or future events, unless required by law.

About Edgio

Edgio (NASDAQ: EGIO) helps companies deliver online experiences and content faster, safer, and with more control. Our developer-friendly, globally scaled edge network, combined with our fully integrated application and media solutions, provide a single platform for the delivery of high-performing, secure web properties and streaming content. Through this fully integrated platform and end-to-end edge services, companies can deliver content quicker and more securely, thus boosting overall revenue and business value. To learn more, visit edg.io and follow us on Twitter, LinkedIn and Facebook.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240826809771/en/

Investor relations:

Sameet Sinha

602-850-4973

ir@edg.io

Source: Edgio, Inc.

FAQ

Why did Edgio (EGIO) receive a notice from Nasdaq on August 21, 2024?

Edgio received a notice from Nasdaq due to non-compliance with Listing Rule 5250(c)(1) for failing to file its Q2 2024 Quarterly Report with the SEC on time.

What is the deadline for Edgio (EGIO) to regain compliance with Nasdaq listing requirements?

If Nasdaq accepts Edgio's compliance plan, the company may have until September 30, 2024, to file its Annual Report, Q1 Quarterly Report, and Q2 Quarterly Report to regain compliance.

Will Edgio (EGIO) be immediately delisted from Nasdaq due to the non-compliance notice?

No, the notice has no immediate effect on Edgio's listing or trading on the Nasdaq Capital Market. The company has an opportunity to submit a compliance plan and regain compliance.

What must Edgio (EGIO) do to address the Nasdaq non-compliance notice received on August 21, 2024?

Edgio must update its previously submitted compliance action plan to regain compliance with Nasdaq Listing Rule 5250(c)(1) by filing its overdue financial reports.