Agrify today announced that on August 16, 2023, it received a letter from the Listing Qualifications Department of the Nasdaq Stock Market notifying Agrify that it was not in compliance with requirements of Nasdaq Listing Rule 5250(c)(1) as a result of not having timely filed its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2023, with the Securities and Exchange Commission.
This notification has no immediate effect on the listing of Agrify’s common stock on the Nasdaq. However, if Agrify fails to timely regain compliance with the Nasdaq Listing Rule, Agrify’s common stock will be subject to delisting from Nasdaq.
As disclosed in the current report on Form 8-K filed by the company on April 17, 2023, Agrify’s audit committee concluded that, as a result of errors in the accounting for warrants previously issued by Agrify, it is appropriate to restate Agrify’s previously issued unaudited condensed consolidated financial statements as of and for the fiscal periods ended March 31, 2022, June 30, 2022 and September 30, 2022 in amended quarterly reports for the affected periods. Given the scope of the process for preparing the amended quarterly reports, Agrify was unable to complete and file the Form 10-K for the fiscal year ended December 31, 2022 and the Form 10-Q for the fiscal quarter ended March 31, 2023 by their respective due dates.
Nasdaq has previously granted the Company an exception until September 30, 2023, to file its Form 10-K for the fiscal year ended December 31, 2022 and Form 10-Q for the fiscal quarter ended March 31, 2023. Nasdaq requires the Company to update its original plan to regain compliance with the filing requirement, including the Company’s plans to file the Form 10-Q for the fiscal quarter ended June 30, 2023, and indicate the progress the Company has made towards implementing the plan submitted in connection with the Form 10-K for the fiscal year ended December 31, 2022.
The company is working diligently and expects to file its Form 10-Q within the prescribed period, which would eliminate the need for the Company to submit a formal plan to regain compliance.