SRAX, Inc. (NASDAQ:SRAX) was delayed from filing its 10-K due to certain accounting matters related to its former subsidiary. The company believes said items have been resolved and is now in the process of completing the necessary actions to file as soon as possible.
As a result of this delay, SRAX received a notice from The Nasdaq Stock Market LLC ("Nasdaq") stating that because the Company has not yet filed its Form 10-K, the Company is no longer in compliance with Nasdaq Listing Rule 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 Nasdaq. Under Nasdaq rules, the Company has 60 calendar days to submit to Nasdaq a plan to regain compliance with the Nasdaq Listing Rule. If Nasdaq accepts the Company's plan, then Nasdaq may grant the Company up to 180 days from the prescribed due date for filing the Form 10-K to regain compliance. If Nasdaq does not accept the Company's plan, then the Company will have the opportunity to appeal that decision to a Nasdaq Hearings 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.