USA Technologies Provides Update On Nasdaq Notification Of Deficiency

Posted On: 11/27/2018

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MALVERN, PA -- USA Technologies Inc. said it received a notice from The Nasdaq Stock Market LLC notifying the company that, as a result of its failure to timely file its quarterly report for the fiscal quarter ended Sept. 30, the company is noncompliant with Nasdaq’s listing rule.
The rule requires listed companies to file all required periodic financial reports with the Securities and Exchange Commission in a timely manner. The company had previously received an original notice from Nasdaq of noncompliance with the rule due to its failure to file its annual report o for the fiscal year ended June 30 in a timely manner.
Pursuant to the original notice, the company had submitted to Nasdaq a plan to regain compliance. On Nov. 13, Nasdaq notified the company that it had accepted the plan and had granted USAT until March 12, in order to file the quarterly report and the annual report with the SEC.
The notice also requires USAT to submit to Nasdaq an update to the plan by no later than Dec. 3. Neither the notice nor the original notice has any immediate effect on the listing or trading of the company’s common stock or preferred stock, and the common stock and preferred stock will continue to trade on the Nasdaq Global Market under the symbols “USAT” and “USATP,” respectively.
As previously reported, the company was unable to file its annual and quarterly reports on time due to an internal investigation being conducted by the audit committee of its board of directors into certain of the company’s contractual arrangements. The investigation remains ongoing.
Once the investigation has been completed, USAT said it plans to file the reports “as soon as practicable.” This can only happen once its independent auditor assesses the results of the investigation and the company implements any remedial actions that may be deemed necessary by its board.