Urban One Inc (UONE, Financial) announced on September 29, 2023, that it received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC notifying the company of potential delisting due to non-compliance with Nasdaq Listing Rule 5250(c)(1). This rule requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission (SEC).
Details of Non-Compliance
The company has not filed its Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2023 (the “Q1 2023 Form 10-Q”) and June 30, 2023 (the “Q2 2023 Form 10-Q”). These unfiled reports are referred to as the "Delinquent Reports". The company had previously dismissed BDO USA, LLP as its independent registered public accounting firm and appointed Ernst & Young LLP (E&Y) to serve in this capacity for the fiscal year ending December 31, 2023.
Company's Response and Future Plans
Urban One Inc (UONE, Financial) intends to request a hearing before a Nasdaq Hearings Panel to stay any suspension or delisting action. The hearing request will automatically stay any suspension or delisting action through October 20, 2023. The company is currently in the process of completing its Q1 2023 Form 10-Q and anticipates filing the Delinquent Reports as soon as practicable.
Accounting Issues Identified
During the preparation of the Q1 2023 Form 10-Q, the company identified certain errors with regard to the timing of expense recognition of non-cash stock-based compensation and the accounting for the company’s investment in the operations of its Richmond casino joint venture, RVA Entertainment Holdings, LLC. The company is currently evaluating the related accounting for these matters and their impact on its internal controls over financial reporting. Once these matters are resolved, the company anticipates filing both of the Delinquent Reports in an expedited manner.
About Urban One Inc (UONE, Financial)
Urban One Inc (UONE), together with its subsidiaries, is the largest diversified media company that primarily targets Black Americans and urban consumers in the United States. The Company owns TV One, LLC, a television network serving more than 59 million households, offering a broad range of original programming, classic series, and movies designed to entertain, inform, and inspire a diverse audience of adult Black viewers.
