XCEL BRANDS, INC. Receives NASDAQ notice regarding late Form 10-Q filing

Rhea-AI Summary

Xcel Brands (NASDAQ: XELB) has received a delinquency notification from Nasdaq on November 25, 2024, for failing to file its Q3 2024 Form 10-Q on time. This non-compliance with Nasdaq Listing Rule 5250(c)(1) does not immediately affect the company's listing status. Xcel must submit a compliance plan within 60 days, and if accepted, Nasdaq may grant an extension until May 19, 2025, to regain compliance. The company plans to file the Form 10-Q within the 60-day window to maintain its listing requirements.

Positive

• None.

Negative

• Received Nasdaq non-compliance notice for late Q3 2024 filing
• Risk of potential delisting if compliance plan is not accepted or executed
• Delayed financial reporting indicating possible internal control issues

Insights

Financial Compliance Expert

This NASDAQ compliance issue raises significant red flags. Late financial filings often indicate underlying problems with financial reporting systems, internal controls, or more serious accounting concerns. For a small-cap company with a market cap of just $16.6 million, maintaining NASDAQ listing compliance is important for investor confidence and market access.

While the company has a grace period to resolve this, history shows that delayed quarterly reports can lead to increased volatility and potential delisting if not addressed promptly. The lack of explanation for the delay is particularly concerning. Investors should closely monitor whether the Form 10-Q is filed within the initial 60-day window, as requiring the full 180-day extension could signal deeper operational or accounting challenges.

NEW YORK, Nov. 27, 2024 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), today announced that on November 25, 2024, it received a delinquency notification letter from the Nasdaq Stock Market LLC ("Nasdaq") indicating that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1), because it had not timely filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 (the "Form 10-Q"). The Nasdaq notice has no immediate effect on the listing or trading of the Company's common stock on the Nasdaq Capital Market.

Nasdaq has informed the Company that it must submit a plan of compliance (the "Plan") within 60 calendar days, addressing how it intends to regain compliance with Nasdaq's listing rules and, if Nasdaq accepts the Plan, it may grant an extension of up to 180 calendar days from the Form 10-Q original filing due date, or until May 19, 2025, to regain compliance. The Company intends to file its Form 10-Q as soon as practicable and, in any event, within the 60-day period referenced above, and thereby regain compliance with the Nasdaq continued listing requirements and eliminate the need for the Company to submit a Plan.

About Xcel   Brands

Xcel Brands, Inc. (NASDAQ: XELB) is a media and consumer products company engaged in the design, licensing, marketing, live streaming, and social commerce sales of branded apparel, footwear, accessories, fine jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded in 2011 with a vision to reimagine shopping, entertainment, and social media as social commerce. Xcel owns the Halston, Judith Ripka, and C. Wonder brands, as well as the Tower Hill by Christie Brinkley co-branded collaboration, and holds noncontrolling interests in the Isaac Mizrahi brand and Orme Live. Xcel also owns and manages the Longaberger brand through its controlling interest in Longaberger Licensing LLC. Xcel is pioneering a true modern consumer products sales strategy which includes the promotion and sale of products under its brands through interactive television, digital live-stream shopping, social commerce, brick-and-mortar retail, and e-commerce channels to be everywhere its customers shop. The company’s brands have generated in excess of $5 billion in retail sales via livestreaming in interactive television and digital channels alone, and over 20,000 hours of live-stream and social commerce. Headquartered in New York City, Xcel Brands is led by an executive team with significant live streaming, production, merchandising, design, marketing, retailing, and licensing experience, and a proven track record of success in elevating branded consumer products companies. www.xcelbrands.com

For further information please contact:

Seth Burroughs
Marketing and Public Relations, Xcel Band, Inc..
347 532 5894
sburroughs@xcelbrands.com

FAQ

Why did Xcel Brands (XELB) receive a Nasdaq notice on November 25, 2024?

Xcel Brands received a Nasdaq notice for failing to timely file its Q3 2024 Form 10-Q, violating Nasdaq Listing Rule 5250(c)(1).

What is the deadline for XELB to submit its compliance plan to Nasdaq?

Xcel Brands must submit a compliance plan within 60 calendar days from receiving the notice on November 25, 2024.

When is the maximum extension date for XELB to regain Nasdaq compliance?

If Nasdaq accepts the compliance plan, XELB may receive an extension until May 19, 2025, to regain compliance.