SRAX, Inc. (NASDAQ:) was delayed in filing its 10-K due to some accounting issues related to its former subsidiary. The company believes these items have been resolved and is in the process of completing the actions necessary to file as soon as possible.
As a result of this delay, SRAX has received notice from The Nasdaq Stock Market LLC (“Nasdaq”) stating that since the company has not yet filed its Form 10-K, the company is no longer in compliance with the rule. Nasdaq 5250(c)(1), which requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission (the “SEC”).
This notification has no immediate effect on the listing of the Company’s shares on the Nasdaq. Under Nasdaq rules, the company has 60 calendar days to submit a plan to Nasdaq to restore compliance with the Nasdaq listing rule. If Nasdaq accepts the Company’s plan, then Nasdaq may allow the Company up to 180 days from the prescribed due date to file Form 10-K to restore compliance. If the Nasdaq does not accept the Company’s plan, then the Company will have the opportunity to appeal that decision to a Nasdaq Hearing Panel.
The company is working diligently to file its Form 10-K as soon as possible, which would eliminate the need for the company to submit a formal plan to regain compliance.