SAN FRANCISCO - Sonder Holdings Inc. (NASDAQ: SOND), a company operating in the hospitality sector, has been notified by Nasdaq of non-compliance with its listing rules due to the delayed filing of its annual financial report. The notification, dated April 2, 2024, pertains to the company's failure to file its Annual Report on Form 10-K for the year ended December 31, 2023, on time.
The non-compliance notice from The Nasdaq Stock Market LLC arises from Sonder's inability to meet the deadline set by Nasdaq Listing Rule 5250(c)(1), which mandates timely filing of periodic reports with the Securities and Exchange Commission (SEC). Sonder had previously acknowledged the delay in a Form 12b-25 Notification of Late Filing submitted to the SEC on March 15, 2024.
In response to the notice, Sonder has a 60-day window from the date of the notice to submit a plan to regain compliance. If Nasdaq accepts the plan, Sonder may be granted up to 180 days from the original due date of the annual report, or until September 30, 2024, to file the overdue document and comply with the listing rules.
Sonder has expressed its intention to formulate and present a compliance plan promptly and is working diligently to complete and file the pending 2023 Form 10-K. However, the company has not guaranteed a specific timeline for the filing.
Founded in 2014, Sonder is known for its tech-enabled service in the hospitality industry, offering a range of accommodations in more than 40 markets across ten countries. The company emphasizes its innovative approach to hospitality, facilitated by its mobile application, which provides guests with self-service features and round-the-clock support.
This news is based on a press release statement from Sonder Holdings Inc. The company's forward-looking statements regarding its plans to address the filing delay and regain compliance with Nasdaq's requirements are subject to risks and uncertainties, including the possibility of further delays or additional accounting adjustments.
Sonder's recent SEC filings, including its Current Report on Form 8-K filed on March 15, 2024, detail these risks.
InvestingPro Insights
Amidst the regulatory challenges faced by Sonder Holdings Inc. (NASDAQ: SOND), the company's financial health and market performance have been a focal point for investors. According to InvestingPro data, Sonder's market capitalization stands at a modest $35.69 million.
Despite a notable revenue growth of 38.94% over the last twelve months as of Q3 2023, the company's gross profit margin remains negative at -4.52%, indicating cost management issues.
Investors have experienced a rollercoaster ride with Sonder's stock price volatility, which has seen a strong return of 19.93% over the last week, yet a significant decline of 70.76% over the past year. The company's price at the previous close was $3.55, with an average daily volume over the last three months of approximately 0.06 million USD, reflecting a relatively low liquidity in the market.
Two key InvestingPro Tips for Sonder Holdings Inc. include the company's significant debt burden and the analysts' expectation that Sonder will not be profitable this year. These insights underscore the financial pressures and the challenging path to profitability that the company faces.
For a deeper analysis and more InvestingPro Tips, potential investors can explore InvestingPro, which currently lists 20 additional tips for Sonder. To access these insights, use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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