Warrantee Inc. Receives Notification of Deficiency from Nasdaq Regarding Timely Filing of Interim Report on Form 6-K
- None.
- The non-compliance notice could potentially impact investor confidence in the company's governance and financial reporting practices.
Insights
The notice of non-compliance received by Warrantee Inc. from Nasdaq due to the delay in filing its interim report indicates potential operational or internal control issues. Investors often scrutinize such delays as they may hint at underlying problems such as financial discrepancies, management inefficiency, or audit complications. While the immediate impact on the trading of Warrantee's American Depositary Shares is stated to be non-existent, the market's reaction could differ. Share prices can be sensitive to perceptions of a company's administrative competence and transparency.
Historically, companies that fail to meet filing deadlines are subjected to increased scrutiny and may face a lack of investor confidence, leading to a decline in share value. The 60-day window provided to Warrantee to submit a compliance plan is critical. A well-structured and timely plan can mitigate negative market reactions. Conversely, failure to address the issue promptly could result in further regulatory actions and potential de-listing, which typically has a substantial negative impact on stock prices.
From a financial perspective, the delay in Warrantee's interim report filing could be indicative of several issues, including potential revisions to financial statements or unexpected financial results. This delay introduces uncertainty, which financial markets generally dislike. Investors and analysts rely on interim reports to gauge a company's financial health and make informed decisions. The absence of this information can lead to speculation and volatility in the company's stock.
Furthermore, the company's ability to regain compliance within the Nasdaq's stipulated period will be closely monitored by investors as an indicator of management's capability to resolve reporting issues. If Warrantee manages to file within the 60-day period, the negative impact may be limited. However, extended delays could suggest deeper financial or operational issues, potentially affecting long-term investor sentiment and the company's cost of capital.
The legal implications of Warrantee's non-compliance with Nasdaq's Listing Rule 5250(c)(2) are significant. Nasdaq's rules are designed to maintain fair and orderly markets and to protect investors and the public interest. Non-compliance can lead to several legal outcomes, including the submission of a compliance plan, additional reporting requirements, or in severe cases, de-listing.
It is essential for Warrantee to address the non-compliance issue swiftly to avoid further legal complications. The company's proactive disclosure in line with Nasdaq Listing Rule 5810(b) demonstrates an awareness of regulatory obligations, which may be viewed positively by regulators. However, continued non-compliance could lead to enforcement actions by the SEC, which could be detrimental to the company's reputation and legal standing.
Tokyo, Japan, April 10, 2024 (GLOBE NEWSWIRE) -- Warrantee Inc. (Nasdaq: WRNT) (the “Company” or “Warrantee”), a Japanese marketing and market research technology company, today announced that it received a notice of non-compliance from Nasdaq Stock Market LLC (“Nasdaq”) on April 4, 2024 stating that, as a result of not having timely filed its interim report on Form 6-K for the six months ended September 30, 2023, the Company is not in compliance with Nasdaq Listing Rule 5250(c)(2), which requires each foreign private issuer to submit on a Form 6-K an interim balance sheet and income statement as of the end of its second quarter to the U.S. Securities and Exchange Commission. This notice has no immediate effect on the listing or trading of the Company's American Depositary Shares on Nasdaq.
Under Nasdaq’s listing rules, the Company has 60 calendar days to submit a plan to regain compliance. If the plan is accepted by Nasdaq, the Company can be granted up to 180 calendar days from the interim report’s due date, or until September 27, 2024, to regain compliance.
The Company is working diligently to complete the interim report and will file the report as soon as practicable. If the Company files the interim report for the six months ended September 30, 2023 within the 60-day period described above, it will not need to submit a formal plan to regain compliance.
This announcement is made in compliance with Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a deficiency notification.
About Warrantee Inc.
Founded in Japan in 2013, Warrantee is a Japanese marketing and market research technology company that helps corporate sponsors unlock value through targeted marketing campaigns while providing its corporate sponsors' potential customers who participate in its campaigns with extended warranty coverage on durables or certain healthcare benefits sponsored by its corporate sponsors. Warrantee focuses on developing a suite of specialized marketing and market research services and these services are designed to collect and leverage targeted and specialty data of its corporate sponsors' potential customers to provide proprietary market insights to its corporate sponsors and promote the sales of their products. At the core of Warrantee's current business of providing marketing campaign services is its trinity model, which connects three stakeholders: corporate sponsors, campaign participants, whom Warrantee also refers to as users, and Warrantee, and is designed to benefit all three stakeholders. For more information, please visit the Company's website: https://warrantee.com/ir/.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “may,” “will,” “should,” “believe,” “expect,” “could,” “intend,” “plan,” “anticipate,” “estimate,” “continue,” “predict,” “project,” “potential,” “target,” “goal,” or other similar expressions in this prospectus. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the U.S. Securities and Exchange Commission.
For investor and media inquiries, please contact:
Warrantee Inc.
Investor Relations Department
Email: info@warrantee.co.jp
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
FAQ
Why did Warrantee Inc. (WRNT) receive a notice of non-compliance from Nasdaq?
What is the deadline for Warrantee Inc. (WRNT) to submit a plan to regain compliance?
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What happens if Warrantee Inc. (WRNT) files the interim report within the 60-day period?
