urban-gro, Inc. Receives Nasdaq Notification of Non-Compliance with Listing Rule 5250(c)(1)
urban-gro (NASDAQ:UGRO) has received a notification from Nasdaq on April 16, 2025, regarding non-compliance with Listing Rule 5250(c)(1) due to failure to file its Annual Report (Form 10-K) for the fiscal year ended December 31, 2024. The delay stems from two main factors: the need to restate previous financial statements due to errors in accounting for deferred tax liabilities from historical share-purchase acquisitions, and turnover in the company's finance department.
The notification does not immediately affect UGRO's listing on the Nasdaq Capital Market. The company has until June 16, 2025 (60 days) to submit a compliance plan to Nasdaq. If accepted, Nasdaq may grant an extension until October 13, 2025. The company has already completed and filed the restated financial statements on February 19, 2025, and intends to file the Form 10-K as soon as possible.
urban-gro (NASDAQ:UGRO) ha ricevuto una comunicazione da Nasdaq il 16 aprile 2025 riguardante la non conformità alla Regola di Quotazione 5250(c)(1) a causa del mancato deposito del Rapporto Annuale (Modulo 10-K) per l'esercizio chiuso al 31 dicembre 2024. Il ritardo è dovuto a due fattori principali: la necessità di rettificare i bilanci precedenti a causa di errori nel trattamento contabile delle passività fiscali differite derivanti da acquisizioni storiche di azioni, e il turnover nel reparto finanziario dell'azienda.
La comunicazione non incide immediatamente sulla quotazione di UGRO al Nasdaq Capital Market. L'azienda ha tempo fino al 16 giugno 2025 (60 giorni) per presentare un piano di conformità a Nasdaq. Se accettato, Nasdaq potrà concedere una proroga fino al 13 ottobre 2025. La società ha già completato e depositato i bilanci rettificati il 19 febbraio 2025 e intende presentare il Modulo 10-K il prima possibile.
urban-gro (NASDAQ:UGRO) recibió una notificación de Nasdaq el 16 de abril de 2025 por incumplimiento de la Regla de Listado 5250(c)(1) debido a la falta de presentación de su Informe Anual (Formulario 10-K) correspondiente al año fiscal terminado el 31 de diciembre de 2024. El retraso se debe a dos factores principales: la necesidad de corregir estados financieros anteriores por errores en la contabilización de pasivos fiscales diferidos derivados de adquisiciones históricas de acciones, y la rotación en el departamento financiero de la empresa.
La notificación no afecta inmediatamente la cotización de UGRO en el Nasdaq Capital Market. La empresa tiene hasta el 16 de junio de 2025 (60 días) para presentar un plan de cumplimiento a Nasdaq. Si es aceptado, Nasdaq podría otorgar una prórroga hasta el 13 de octubre de 2025. La compañía ya completó y presentó los estados financieros corregidos el 19 de febrero de 2025 y planea presentar el Formulario 10-K lo antes posible.
urban-gro (NASDAQ:UGRO)는 2025년 4월 16일 나스닥으로부터 2024년 12월 31일 종료된 회계연도에 대한 연례보고서(Form 10-K) 제출 실패로 인해 상장규정 5250(c)(1) 위반 통보를 받았습니다. 지연 사유는 두 가지 주요 요인 때문인데, 과거 주식 매입 인수에서 발생한 이연법인세 부채 회계 오류로 재무제표를 수정해야 했고, 회사 재무부서의 인력 교체가 있었습니다.
이번 통보는 UGRO의 나스닥 자본시장 상장에 즉시 영향을 미치지 않습니다. 회사는 2025년 6월 16일까지(60일) 나스닥에 준수 계획을 제출해야 하며, 승인될 경우 2025년 10월 13일까지 연장 허가를 받을 수 있습니다. 회사는 이미 2025년 2월 19일에 수정된 재무제표를 완료하여 제출했으며, 가능한 한 빨리 Form 10-K를 제출할 계획입니다.
urban-gro (NASDAQ:UGRO) a reçu une notification de Nasdaq le 16 avril 2025 concernant le non-respect de la règle de cotation 5250(c)(1) en raison du non-dépôt de son rapport annuel (Formulaire 10-K) pour l'exercice clos le 31 décembre 2024. Ce retard est dû à deux facteurs principaux : la nécessité de retraiter les états financiers précédents en raison d'erreurs dans la comptabilisation des passifs d'impôts différés liés à des acquisitions historiques d'actions, et le renouvellement du personnel au sein du département financier de l'entreprise.
Cette notification n'affecte pas immédiatement la cotation d'UGRO sur le Nasdaq Capital Market. La société dispose jusqu'au 16 juin 2025 (60 jours) pour soumettre un plan de conformité à Nasdaq. Si celui-ci est accepté, Nasdaq pourra accorder une prolongation jusqu'au 13 octobre 2025. La société a déjà finalisé et déposé les états financiers retraités le 19 février 2025 et prévoit de déposer le Formulaire 10-K dès que possible.
urban-gro (NASDAQ:UGRO) erhielt am 16. April 2025 eine Mitteilung von Nasdaq wegen Nichteinhaltung der Listing-Regel 5250(c)(1) aufgrund der Nichtabgabe des Jahresberichts (Formular 10-K) für das am 31. Dezember 2024 endende Geschäftsjahr. Die Verzögerung resultiert aus zwei Hauptgründen: der Notwendigkeit, frühere Finanzberichte aufgrund von Fehlern bei der Bilanzierung latenter Steuerverbindlichkeiten aus historischen Aktienübernahmen zu berichtigen, und personellen Wechseln in der Finanzabteilung des Unternehmens.
Die Mitteilung hat keine unmittelbaren Auswirkungen auf die Notierung von UGRO am Nasdaq Capital Market. Das Unternehmen hat bis zum 16. Juni 2025 (60 Tage) Zeit, einen Compliance-Plan bei Nasdaq einzureichen. Wird dieser akzeptiert, kann Nasdaq eine Verlängerung bis zum 13. Oktober 2025 gewähren. Das Unternehmen hat die berichtigten Finanzberichte bereits am 19. Februar 2025 fertiggestellt und eingereicht und beabsichtigt, das Formular 10-K so bald wie möglich einzureichen.
- No immediate effect on Nasdaq listing status
- Successfully completed and filed restated financial statements by February 2025
- Received Nasdaq non-compliance notice for failing to file 2024 Annual Report
- Required restatement of previous financial statements due to accounting errors
- Experiencing turnover in finance department affecting operations
- Risk of potential delisting if compliance plan is not accepted or executed
Insights
UGRO's Nasdaq non-compliance notification creates regulatory uncertainty but offers clear remediation paths without immediate delisting threat.
urban-gro's receipt of a Nasdaq non-compliance notice represents a significant regulatory challenge that investors should monitor carefully. The company's failure to file its 2024 10-K on time follows earlier accounting errors involving deferred tax liabilities that required financial restatements - a concerning sequence of events for a micro-cap company with a
The notification triggers a structured remediation process with two critical deadlines: June 16, 2025 to submit a compliance plan and potentially until October 13, 2025 to regain full compliance if Nasdaq accepts their proposal. While there's no immediate delisting threat, this development introduces additional operational burdens when the company is already navigating finance department turnover.
The root causes merit investor scrutiny: the company attributes the delay to both the aftermath of financial restatements (completed February 2025) and staffing challenges. This combination suggests potential internal control weaknesses that could signal broader governance issues.
What distinguishes this situation from more severe scenarios is that the previously identified accounting errors have been addressed through restatements, and the current issue stems from timing rather than new financial irregularities. However, the compounding challenges of restatements, staff turnover, and missed filing deadlines create a concerning pattern that warrants close monitoring of the company's ability to resolve these regulatory hurdles.
LAFAYETTE, COLORADO / ACCESS Newswire / April 18, 2025 / urban-gro, Inc. (NASDAQ:UGRO) ("urban-gro" or the "Company"), an integrated professional services and Design-Build firm offering solutions to the Controlled Environment Agriculture ("CEA") and other commercial sectors, today announced that the Company received a notice (the "Notice") from The Nasdaq Stock Market LLC ("Nasdaq") on April 16, 2025, stating that because the Company had not yet filed its Annual Report on Form 10-K for the fiscal quarter ended December 31, 2024 (the "Form 10-K"), the Company is no longer in compliance with Nasdaq Listing Rule 5250(c)(1). Nasdaq Listing Rule 5250(c)(1) requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission.
This notification has no immediate effect on the listing of the Company's common stock on the Nasdaq Capital Market.
As disclosed in the Current Report on Form 8-K filed by the Company on August 14, 2024, the Company's audit committee, in consultation with the Company's independent public accounting firm, concluded that, as a result of inadvertent errors in the accounting for deferred tax liabilities associated with historical share-purchase acquisitions made by the Company, it was appropriate to restate the Company's previously issued financial statements for certain prior quarterly and annual periods. The restated financial statements were completed and filed by February 19, 2025. However, as a result of delays due to the preparation, review, and filing of the restatements described above, which required significant management attention and expenditures, and turnover in the Company's finance department, the Company has been delayed in its preparation and related audit of its financial statements for the fiscal year ended December 31, 2024 and the Form 10-K for that period. Consequently, the Company was unable to complete its audited consolidated financial statements and file the Form 10-K by the prescribed due date for such filing.
The Notice states that the Company has 60 calendar days from April 16, 2025, or until June 16, 2025, to submit to Nasdaq a plan to regain compliance with the Nasdaq Listing Rules. The Company intends to file the Form 10-K as soon as practicable and, if necessary, to submit a plan with Nasdaq to regain compliance. If Nasdaq accepts the Company's plan, then Nasdaq may, at its discretion, grant the Company up to 180 days from the prescribed due date for filing the Form 10-K, or until October 13, 2025, 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.
About urban-gro, Inc.
urban-gro, Inc.® (Nasdaq:UGRO) is an integrated professional services and Design-Build firm. We offer value-added architectural, engineering, and construction management solutions to the Controlled Environment Agriculture ("CEA"), industrial, healthcare, and other commercial sectors. Innovation, collaboration, and creativity drive our team to provide exceptional customer experiences. With offices across North America and in Europe, we deliver Your Vision - Built. Learn more by visiting www.urban-gro.com
Safe Harbor Statement
This press release contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this release, terms such as "believes," "will," "expects," "anticipates," "may," "projects" and similar expressions and variations as they relate to the Company or its management are intended to identify forward-looking statements. The forward-looking statements in this press release include, without limitation, the expected scope of the material misstatements identified in this press release and the expected timing of filing the Form 10-K for the Company's annual report of 2024. These and other forward-looking statements are based on the current expectations, forecasts, beliefs and assumptions of the Company's management and are subject to risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including, among others, our ability to meet the other continued listing rules of Nasdaq and whether Nasdaq exercises its discretion, if necessary, to grant an extension period based on any plan of compliance we submit. A more detailed description of these and certain other factors that could affect actual results is included in the Company's filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date hereof, except as may be required by law.
Investor Contacts:
Jeff Sonnek - ICR, Inc.
(720) 730-8160
investors@urban-gro.com
Media Contact:
Barbara Graham - urban-gro, Inc.
(720) 903-1139
media@urban-gro.com
SOURCE: urban-gro, Inc.
View the original press release on ACCESS Newswire
FAQ
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