Luna Innovations Announces Receipt of Notice from Nasdaq Regarding Late Filing of Annual Report on Form 10-K
- None.
- Risk of delisting from Nasdaq if compliance with the Rule is not regained within the specified timelines.
Insights
Luna Innovations' delay in filing its Form 10-K is a regulatory compliance issue that may affect investor confidence and the company's stock price. The requirement to file periodic financial reports is fundamental for maintaining transparency and allowing shareholders to make informed decisions based on the company's performance. The delay could be indicative of underlying financial issues, such as accounting irregularities or operational challenges, which may require a more in-depth review of the company's financial health.
Investors typically react negatively to such announcements due to the uncertainty it creates. The potential for delisting adds to the risk profile of the company's stock. Delisting can lead to reduced liquidity and investor interest, as well as increased volatility. The market may also speculate on the reasons behind the delay, which could further impact the stock price. It is important for the company to address this issue promptly to minimize the potential fallout.
Compliance with Nasdaq Listing Rule 5250(c)(1) is a legal obligation for companies listed on the exchange. The notice from Nasdaq serves as a warning and initiates a timeline for Luna Innovations to rectify the situation. The legal process for regaining compliance involves submitting a plan and, if necessary, appealing to a Nasdaq Hearings Panel. This process provides a structured pathway for the company to avoid delisting, but it also incurs legal costs and management's attention, diverting resources from other business operations.
Furthermore, the SEC requires timely filing of financial reports to protect investors and maintain fair markets. Failure to meet these obligations can lead to additional regulatory scrutiny and potential enforcement actions, which could have significant legal and financial implications for Luna Innovations.
The notice received by Luna Innovations is a signal to the market that may influence investor perception and the company's reputation. It is essential to monitor how the market reacts to such news, as it could serve as an indicator of the company's management effectiveness and operational robustness. Delays in financial reporting can also impact competitor analysis and industry benchmarking, as investors and analysts rely on the latest financial data to assess a company's market position and strategy.
Should Luna Innovations regain compliance within the given timeframe, it may mitigate the negative market impact. However, the longer-term effects on the company's market perception and its ability to attract future investments or partnerships could be more lasting, especially if the reasons behind the delay point to deeper operational issues.
This Notice has no immediate effect on the listing of the Company's shares on Nasdaq. However, if the Company fails to timely regain compliance with the Rule, the Company's common stock will be subject to delisting from Nasdaq.
The Notice provides that the Company has 60 calendar days, or until June 30, 2024, to submit to Nasdaq a plan to regain compliance with the Nasdaq Listing Rule. If Nasdaq accepts the Company's plan, then Nasdaq may grant the Company up to 180 days, or until September 30, 2024, from the prescribed due date for filing the Form 10-K to regain compliance. If Nasdaq does not accept the Company's plan, then the Company will have the opportunity to appeal that decision to a Nasdaq Hearings Panel.
The Company is working diligently to complete its Form 10-K and will provide an update once more information is available.
About Luna
Luna Innovations Incorporated (www.lunainc.com) is a leader in optical technology, providing unique capabilities in high-performance, fiber optic-based, test products for the telecommunications industry and distributed fiber optic-based sensing for a multitude of industries. Luna’s business model is designed to accelerate the process of bringing new and innovative technologies to market.
Forward-Looking Statement
The statements in this release that are not historical facts constitute “forward-looking statements” made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include the expected timing of the Company’s filing of its Annual Report on Form 10-K for the year ended December 31, 2023, the potential submission of a plan to Nasdaq and the potential for Nasdaq to accept such plan or grant the Company an exception period or the success of any hearing process, and the Company’s ability to regain compliance with the Nasdaq continued listing standards. Management cautions the reader that these forward-looking statements are only predictions and are subject to a number of both known and unknown risks and uncertainties, and actual results, performance, and/or achievements of Luna may differ materially from the future results, performance, and/or achievements expressed or implied by these forward-looking statements as a result of a number of factors. These factors include, without limitation, the investigation being overseen by the Special Committee of the Board is still ongoing, the determinations with respect to the degree of transactions and relevant financial reporting periods implicated thereby, the resulting effects on the Company’s reported financial results and the delay in the Company’s reporting of its financial results and filing of its Annual Report on Form 10-K with the SEC, the possibility that the Company is unable to regain compliance with, or thereafter continue to comply with, the Nasdaq Listing Rules, or experience violations of additional Nasdaq Listing Rules, the possibility that the Nasdaq may delist the Company’s securities, as well as the other risks and uncertainties set forth in the sections entitled “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, as well as in subsequent filings with the Securities and Exchange Commission (“SEC”). Such filings are available on the SEC’s website at www.sec.gov and on Luna’s website at www.lunainc.com. The statements made in this release are based on information available to Luna as of the date of this release and Luna undertakes no obligation to update any of the forward-looking statements after the date of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240408099162/en/
Investor Contact:
Allison Woody
Luna Innovations Incorporated
Phone: 540.769.8465
Email: woodya@lunainc.com
Media Contact:
Chris Kittredge/Stephen Pettibone
FGS Global
Email: luna@fgsglobal.com
Source: Luna Innovations Incorporated
FAQ
Why did Luna Innovations receive a notice from Nasdaq?
What is the deadline for Luna Innovations to submit a plan to regain compliance with the Nasdaq Listing Rule?
What happens if Nasdaq does not accept Luna Innovations' plan to regain compliance?
What is the potential consequence for Luna Innovations if it fails to regain compliance with the Rule?
Is the delisting of Luna Innovations' common stock immediate following the Notice?
When is the deadline for Luna Innovations to regain compliance with the Rule after submitting a plan?
What is Luna Innovations doing to address the non-compliance issue?
