Edgio Receives Expected Notice from NASDAQ

Rhea-AI Summary

Edgio, Inc. (Nasdaq: EGIO) received a notice from Nasdaq regarding non-compliance with the listing requirements due to the delayed filing of its Annual Report. The company is working to regain compliance within the specified timeline.

Positive

• None.

Negative

• The delay in filing the Annual Report may impact investor confidence in the company's financial transparency and governance processes.

Insights

Financial Analyst

The notice from Nasdaq to Edgio, Inc. regarding non-compliance with the Listing Rule due to delayed filing of the Annual Report is a matter of concern for investors and analysts alike. The delay, caused by the resignation of the previous accounting firm, raises questions about the internal controls and financial health of the company. Investors should monitor the situation closely as the ability of the company to file within the extended deadline will be indicative of its operational efficiency and transparency. The extended timeline provided by Nasdaq, up to September 30, 2024, offers some leeway, but continued delays could erode investor confidence and potentially affect the stock's performance.

Corporate Governance Expert

The resignation of an independent registered public accounting firm and the subsequent delay in filing financial reports can often be a red flag for underlying issues in corporate governance. The Audit Committee's response, in this case, is critical and their actions in securing a new firm and working towards compliance will be scrutinized. Stakeholders should assess the company's governance practices and transparency during this period, as they can have long-term implications for trust and the company's reputation in the market.

Market Research Analyst

While the immediate trading of Edgio's stock remains unaffected, the market's reaction to such news typically depends on the perceived risk of further compliance issues and the potential for negative findings in the delayed Annual Report. The market may also react to how quickly and effectively the company communicates its progress towards resolving the issue. It is essential for market analysts to track the company's updates and any shifts in investor sentiment, as these will influence the stock's volatility and trading volumes in the short term.

PHOENIX--(BUSINESS WIRE)-- Edgio, Inc. (Nasdaq: EGIO) (the “Company”), today announced that it received an expected notice (the “Notice”) on April 4, 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 Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual 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 March 15, 2024, that the Company was unable to file its 2023 Form 10-K within the prescribed time period due to the Company’s previous independent registered public accounting firm’s decision to resign as independent registered public accounting firm of the Company, effective December 18, 2023. The Audit Committee of the Board of Directors of the Company accepted the resignation and immediately engaged in a thorough search for a new independent registered public accounting firm. Due to the engagement of a new independent registered public accounting firm in the first quarter of 2024, the Company requires additional time to complete the procedures necessary to file its annual report on Form 10-K.

The Notice states that the Company has 60 calendar days from the date of the Notice, or until June 3, 2024, to submit a 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 to regain compliance.

The Company continues to work diligently to finalize its Annual Report and plans to file its Annual Report as promptly as possible to regain compliance with the Listing Rule.

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.edgio.com and on the SEC website at www.SEC.gov. All information provided in this release and in the attachments is as of April 5, 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, 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/20240405162443/en/

Investor relations:

Sameet Sinha

602-850-4973

ir@edg.io

Media relations:

Patti Moran, Edgio

pmoran@edg.io

Source: Edgio, Inc.

FAQ

Why did Edgio, Inc. receive a notice from Nasdaq?

Edgio, Inc. received a notice from Nasdaq due to non-compliance with the listing requirements as a result of the delayed filing of its Annual Report.

What is the deadline for Edgio, Inc. to submit a plan to regain compliance with the Listing Rule?

Edgio, Inc. has 60 calendar days from the date of the Notice, until June 3, 2024, to submit a plan to regain compliance with the Listing Rule.

What happens if Nasdaq accepts Edgio, Inc.'s plan to regain compliance?

If Nasdaq accepts Edgio, Inc.'s plan, the company may be granted up to 180 calendar days from the due date of the Annual Report, until September 30, 2024, to file the report and regain compliance.