DALLAS – DZS Inc. (NASDAQ:DZSI), a provider of network access solutions, could be delisted from the Nasdaq Stock Market due to non-compliance with filing requirements. The company received a Staff Delisting Determination from Nasdaq on Monday, after failing to file its required quarterly financial reports for the periods ending June 30 and September 30, 2023.
The Nasdaq Listing Rule 5250(c)(1) mandates timely submissions of periodic financial reports to the Securities and Exchange Commission (SEC). DZS had been granted an extension until February 5, 2024, to submit these reports and regain compliance. However, the company did not meet this extended deadline.
DZS intends to appeal the determination by requesting a hearing with the Nasdaq Hearings Panel, seeking to delay the suspension or delisting while the hearing process unfolds. The company also aims for an additional extension until August 3, 2024. The request for a hearing must be filed by February 13, 2024, which will automatically stay the suspension of trading for 15 days from the request date.
The hearings are expected to be scheduled within 30 to 45 days following the request. After the hearing, the Hearings Panel will make a decision, which DZS may further appeal.
The company is working to prepare its financial statements for the affected periods, including the overdue quarterly reports and the fiscal year ending December 31, 2023. These statements will undergo audit or review before DZS can file the necessary annual and quarterly reports with the SEC.
This news is based on a press release statement issued by DZS Inc.
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