Nasdaq Grants USAT’s Request For Periodic Filing Deadline Extension

Posted On: 9/10/2019

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MALVERN, PA -- USA Technologies Inc. has announced that it has received a letter from the Office of General Counsel of the Nasdaq Stock Market LLC informing the company that the Nasdaq Hearings Panel has granted USAT’s request to extend the exception period through Sept. 23, in order for the company to regain compliance with its periodic filing obligations.

As previously reported, on Aug. 30, the company informed the panel that it was unlikely to regain compliance with its periodic filing requirements during the exception period previously granted by the panel, due primarily to the remaining analysis required in connection with USAT’s accounting treatment of the leasing/rental contracts of Cantaloupe Systems, which USAT had acquired late in 2017. These issues are not related to the internal investigation; they were recently discovered during the audit process, and must be resolved by USAT in order for its independent auditor to complete its audit procedures

The company believes that it will be able to complete that task, finalize the closing of its fiscal year 2019 books and records, and provide its auditors with the necessary information in a time-frame that will allow completion of the audit and compliance with its periodic reporting obligations by no later than September 23.

The panel has informed USAT that, if the company does not regain compliance with its periodic reporting obligations by Sept. 23, it will issue a final delisting determination and the company’s securities will be suspended from trading on Nasdaq.

As also previously reported, on July 10, USAT received a notice from Nasdaq’s Listing Qualifications Department of Nasdaq stating that the company was not in compliance with applicable Nasdaq rules because it did not hold an annual meeting of shareholders within the 12 months following the end of its fiscal year ended June 30, 2018. On July 17, USAT submitted to the panel a written plan to regain compliance, and requested the panel to grant an exception allowing the company to hold the annual meeting after it has regained compliance with its periodic reporting requirements.

The Sept. 6 letter from the Office of General Counsel of Nasdaq indicated that the panel had declined to address that request at that time, opting to wait until USAT demonstrates compliance with its periodic reporting requirements. The company was directed to submit a new plan of compliance to the panel by no later than Sept. 23, which would accelerate the timing of the annual meeting.

USA Technologies is a cashless payments and software services company that provides end-to-end technology solutions for the self-service retail market. With nearly one million connections worldwide, USAT offers one solution for payments processing, logistics and back-office management. The company’s enterprise-wide platform is designed to increase consumer engagement and sales revenue through digital payments, digital advertising and customer loyalty programs, while providing retailers with control and visibility over their operations and their inventory. This enables USAT customers ranging from vending machine companies through operators of micromarkets, amusements, gas and car charging stations, laundromats, metered parking terminals, kiosks and more to run their businesses more proactively and competitively.