Urban One Averts NASDAQ Delisting After Reporting Q3 2023 Operating Results
On December 22, Urban One filed its Form 10-Q with the Securities and Exchange Commission for the third quarter of 2023. In it the company reports net revenue of $117.8 million for the period ended September 30, 2023, a decrease of 2.8% from the same period in 2022. It also reports a net loss of $53.7 million in Q3 2023 compared to the net income of $3.7 million it reported in Q3 of 2022. Urban One had received a delisting notice from Nasdaq Stock Market LLC for failing to file its quarterly reports with the SEC on time. As TALKERS has previously reported on this matter, the tardiness stems from the company dismissing its previous independent registered public accounting firm BDO USA, LLP and
hiring Ernst & Young LLP. Yesterday (1/4), Urban One filed the following with the SEC: “On January 4, 2024, Urban One, Inc. announced that it had received notice from the Nasdaq Stock Market, LLC confirming that it has regained compliance with Nasdaq Listing Rule 5250(c) (the “Periodic Filing Rule”) which requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission… with the company in compliance with the Periodic Filing Rule, Nasdaq has ceased any action to delist the company’s securities… Nasdaq has informed the company that it will be subject to a Mandatory Panel Monitor for a period of one year, or until December 29, 2024. If, within the one-year monitoring period, the company again fails to comply with the Periodic Filing Rule, the company will not be permitted to provide the Nasdaq Staff with a plan of compliance with respect to that deficiency, nor will the company be afforded a cure period. Instead, upon the Nasdaq Staff issuing a delist determination letter, the company would then have an opportunity to request a new hearing with the initial Hearing Panel or a newly convened Hearing Panel if the initial Hearing Panel is unavailable.”
16, 2024 to file its Form 10-Q quarterly report for the period ending September 30, 2023. As result of that filing being late, Nasdaq has begun the process of delisting Urban One stock. However, the extension gives Urban One extra time to file the report. The company says it expects to be able to file the Q3 2023 Form 10-Q on or before December 31. As TALKERS has previously reported, the late filings were the result of Urban One dismissing its previous independent registered public accounting firm BDO USA, LLP and hiring Ernst & Young LLP.
2023. Consequently, it dismissed the accounting firm BDO USA, LLP and hired Ernst & Young LLP to serve as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2023 effective as of July 12, 2023. In the filing, Urban One says, “Given the change of the Company’s independent registered public accounting firm and the work required for E&Y to re-familiarize itself with the Company, the Company’s continued assessment of its internal controls, the Company is not able to finalize the financial statements and related information for inclusion in its quarterly report on Form 10-Q for the quarter ended June 30, 2023. The company is working to complete quarter reports for the first two quarter of 2023.