Pioneer Receives Notification of Delinquency from Nasdaq

Rhea-AI Summary

Pioneer Power Solutions (Nasdaq: PPSI) has received a delinquency notification from Nasdaq due to its failure to timely file its Q2 2024 10-Q report and continued delay in filing its Q1 2024 10-Q report. This non-compliance with Nasdaq Listing Rule 5250(c)(1) does not immediately affect the company's listing on the Nasdaq Capital Market. Pioneer has until September 5, 2024, to update its compliance plan, which Nasdaq may accept and grant an extension until October 14, 2024, to file the required reports. The company previously submitted a plan and received an exception until September 20, 2024, to file the quarterly reports.

Positive

• No immediate delisting from Nasdaq Capital Market
• Opportunity to submit updated compliance plan
• Potential for additional time to regain compliance (up to October 14, 2024)

Negative

• Failure to timely file Q2 2024 10-Q report
• Continued delay in filing Q1 2024 10-Q report
• Non-compliance with Nasdaq Listing Rule 5250(c)(1)
• Risk of potential delisting if compliance is not regained

Insights

Financial Analyst

Pioneer Power Solutions' repeated failure to file quarterly reports raises significant red flags for investors. This non-compliance with Nasdaq's listing rules could lead to delisting if not resolved promptly. The company's inability to provide timely financial information suggests potential internal control issues or more serious financial problems. While Nasdaq has granted an extension, the September 5 deadline to update their compliance plan is crucial. Investors should be wary of the lack of transparency and consider the heightened risk associated with the stock. The extended period of non-compliance (spanning multiple quarters) is particularly concerning and may indicate deeper operational or financial challenges that the company is struggling to address.

Legal Expert

The notification from Nasdaq puts Pioneer in a precarious legal position. Non-compliance with listing rules can lead to severe consequences, including potential delisting. The company now faces a tight timeline to update its compliance plan by September 5. If accepted, they may receive an extension until October 14 to file the overdue reports. However, this situation exposes the company to increased regulatory scrutiny and potential shareholder lawsuits. The delay in financial reporting could be interpreted as a violation of securities laws, which require timely and accurate disclosure. Investors should be aware that this situation might trigger SEC investigations or enforcement actions, further complicating Pioneer's regulatory landscape.

Market Research Analyst

Pioneer's repeated delays in financial reporting could significantly erode investor confidence. The market typically reacts negatively to such uncertainties, potentially leading to increased stock volatility and downward pressure on share prices. This situation may also attract short-sellers who speculate on further declines. The company's position in the growing EV charging and distributed energy sectors could be overshadowed by these compliance issues, potentially impacting business relationships and future growth opportunities. Competitors might seize this moment of weakness to gain market share. Investors should closely monitor any updates to the compliance plan and subsequent market reactions, as resolution of this issue could lead to a significant stock movement in either direction.

FORT LEE, N.J.--(BUSINESS WIRE)-- Pioneer Power Solutions, Inc. (Nasdaq: PPSI) (“Pioneer” or the “Company”), a leader in the design, manufacture, service and integration of electrical power systems, distributed energy resources, power generation equipment and mobile electric vehicle (“EV”) charging solutions, today announced that on August 21, 2024, the Company received a delinquency notification letter (the “10-Q Notice”) from the Listing Qualifications Staff of the Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”) as a result of the Company's failure to timely file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 (the “Second Quarterly Report”), and its continued delay in filing its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 (the “First Quarterly Report,” and together with the Second Quarterly Report, the “Quarterly Reports”), with the Securities and Exchange Commission. The 10-Q Notice has no immediate effect on the listing of the Company’s common stock on the Nasdaq Capital Market.

The Company previously submitted a plan to Nasdaq to regain compliance with respect to the Quarterly Reports (the “Plan”), and Nasdaq granted an exception until September 20, 2024, to file the Quarterly Reports. The 10-Q Notice provides that the Company has until September 5, 2024, to update the Plan to regain compliance with respect to the filing requirements. If the Company’s plan is accepted, Nasdaq may grant the Company an additional exception of up to a maximum of 180 calendar days from the due date of the initial delinquent filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, or until October 14, 2024, to file the Quarterly Reports to regain compliance.

About Pioneer Power Solutions, Inc.

Pioneer Power Solutions, Inc. is a leader in the design, manufacture, integration, refurbishment, service and distribution of electric power systems, distributed energy resources, power generation equipment and mobile EV charging solutions for applications in the utility, industrial and commercial markets. To learn more about Pioneer, please visit its website at www.pioneerpowersolutions.com.

Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Such forward-looking statements include, without limitation, statements regarding the Company’s anticipated filing of its Quarterly Reports. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) the Company’s ability to successfully increase its revenue and profit in the future, (ii) general economic conditions and their effect on demand for electrical equipment, (iii) the effects of fluctuations in the Company’s operating results, (iv) the fact that many of the Company’s competitors are better established and have significantly greater resources than the Company, (v) the Company’s dependence on two customers for a large portion of its business, (vi) the potential loss or departure of key personnel, (vii) unanticipated increases in raw material prices or disruptions in supply, (viii) the Company’s ability to realize revenue reported in the Company’s backlog, (ix) future labor disputes, (x) changes in government regulations, (xi) the liquidity and trading volume of the Company’s common stock, (xii) an outbreak of disease, epidemic or pandemic, such as the global coronavirus pandemic, or fear of such an event, (xiii) risks associated with litigation and claims, which could impact our financial results and condition, and (xiv) the Company’s ability to regain and maintain compliance with the continued listing requirements of the Nasdaq Capital Market.

More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual and Quarterly Reports on Form 10-K and Form 10-Q, respectively. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240823113277/en/

Brett Maas, Managing Partner

Hayden IR

(646) 536-7331

brett@haydenir.com

Source: Pioneer Power Solutions, Inc.

FAQ

What notification did Pioneer Power Solutions (PPSI) receive from Nasdaq on August 21, 2024?

Pioneer Power Solutions (PPSI) received a delinquency notification from Nasdaq on August 21, 2024, indicating non-compliance with Nasdaq Listing Rule 5250(c)(1) due to failure to timely file its Q2 2024 10-Q report and continued delay in filing its Q1 2024 10-Q report.

Does the Nasdaq delinquency notification immediately affect PPSI's listing status?

No, the delinquency notification has no immediate effect on Pioneer Power Solutions' (PPSI) listing on the Nasdaq Capital Market.

What is the deadline for PPSI to update its compliance plan with Nasdaq?

Pioneer Power Solutions (PPSI) has until September 5, 2024, to update its plan to regain compliance with Nasdaq's filing requirements.

What is the maximum extension Nasdaq may grant PPSI to file its quarterly reports?

If Pioneer Power Solutions' (PPSI) plan is accepted, Nasdaq may grant an additional exception of up to 180 calendar days from the initial delinquent filing due date, or until October 14, 2024, to file the required quarterly reports.