Edgio (NASDAQ: EGIO), a technology company, has received a formal notice from The Nasdaq Stock Market LLC on Thursday, indicating non-compliance with Nasdaq's Listing Rule 5250(c)(1) due to a delay in filing its Annual Report for 2023. The rule requires timely submission of periodic financial reports to the Securities and Exchange Commission (SEC).
The company had previously disclosed on March 15, 2024, through a Notification of Late Filing, that it was unable to file its 2023 Annual Report within the prescribed timeframe. The delay was attributed to the resignation of its former independent registered public accounting firm on December 18, 2023. This resignation prompted the Audit Committee to initiate an extensive search for a new auditor, resulting in the engagement of a new firm in the first quarter of 2024.
The additional time required to complete necessary procedures with the new accounting firm has led to the delay in filing the annual report. The notice from Nasdaq does not immediately affect the listing of Edgio's common stock on the Nasdaq Capital Market.
Edgio has been granted a 60-day period, until June 3, 2024, to submit a plan to regain compliance with Nasdaq's listing requirements. If the plan is accepted, Nasdaq may allow the company up to 180 days from the original filing deadline, or until September 30, 2024, to file the overdue report and regain compliance.
The company has expressed its intention to file the report as soon as possible to comply with the Nasdaq Rule. In the event that Nasdaq does not accept Edgio's compliance plan, the company will have the opportunity to appeal the decision before a Nasdaq Hearings Panel. The information is based on a press release statement.
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