ROANOKE, Va. - Luna Innovations (NASDAQ:LUNA) Incorporated (NASDAQ:LUNA), specializing in advanced fiber optic technology, has been notified by Nasdaq of non-compliance with listing rules due to delayed financial filings. The company received a notice on May 17, 2024, indicating that it had not filed its quarterly report for the period ending March 31, 2024, nor its annual report for the year ending December 31, 2023.
This notification does not immediately affect the trading of Luna's shares on the Nasdaq. However, the company must submit a compliance plan by June 3, 2024. If the plan is accepted, Nasdaq may grant an extension until September 30, 2024, for Luna to file the overdue reports and regain compliance. Rejection of the plan could lead to delisting, although Luna would have the right to appeal.
Luna has stated its commitment to finalizing the necessary reports and will update the public once more information becomes available. The delay in filing is due to an ongoing investigation by a Special Committee of the Board into certain transactions. The findings may require adjustments to reported financial results for the periods in question.
The company has cautioned that these forward-looking statements regarding the anticipated filing dates and compliance plans are subject to risks and uncertainties. Factors that could affect outcomes include the ongoing internal investigation and the possibility of further non-compliance with Nasdaq's continued listing standards.
Luna Innovations is recognized for its fiber optic-based test products for the telecommunications industry and distributed fiber optic sensing for various industries. The company's goal is to accelerate the introduction of innovative technologies to the market.
This news article is based on a press release statement from Luna Innovations Incorporated.
InvestingPro Insights
As Luna Innovations Incorporated navigates the challenges of delayed financial filings and the risk of non-compliance with Nasdaq listing rules, investors and market watchers are closely monitoring the company's financial health and stock performance.
According to InvestingPro data, Luna Innovations has a market capitalization of $104.78 million and a negative P/E ratio of -46.8, reflecting its current lack of profitability. The company's revenue growth remains positive, with a 14.31% increase over the last twelve months as of Q1 2023, suggesting some operational momentum despite the challenges.
Two InvestingPro Tips highlight critical aspects of Luna's financial situation. Firstly, analysts anticipate that Luna's net income is expected to grow this year, which could signal a turnaround for the company if it manages to resolve its reporting issues and capitalize on its revenue growth.
Secondly, it is important to note that the company is quickly burning through cash, which raises concerns about its financial sustainability and could impact its ability to remain compliant with Nasdaq's continued listing standards.
For those considering an investment in Luna Innovations, it's worth noting that the company's stock has experienced significant price volatility and has fallen considerably over the past year. Still, with analysts predicting profitability this year, there could be potential for recovery. Investors seeking a deeper understanding of Luna's financials and future prospects can find additional insights and tips on InvestingPro. There are currently 13 more InvestingPro Tips available, which can be accessed by visiting: https://www.investing.com/pro/LUNA. To benefit from these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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