Urban-Gro receives non-compliance notification from Nasdaq

Urban-gro (UGRO) received a notice from Nasdaq on September 21 stating that because the company had not yet filed its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024, the company continues to not be in compliance with Nasdaq listing rules. This notification has no immediate effect on the listing of the company’s common stock on the Nasdaq Capital Market. The company’s audit committee concluded that, as a result of inadvertent errors in the accounting for deferred tax liabilities associated with historical share-purchase acquisitions made by the company, it is appropriate to restate the company’s previously issued financial statements as of and for FY22 and FY23 and interim financial statements for seven fiscal periods. Given the scope of the process for preparing the Amended Form 10-K and Amended Form 10-Q, the company was unable to complete and file the Form 10-Q by the required due date of November 14, 2024. On November 15, the company filed a Form 12b-25 Notification of Late Filing with the SEC related to the Form 10-Q. On September 27, the company submitted a plan to regain compliance with Rule 5250(c) with Nasdaq. On November 8, 2024, Nasdaq notified the company that the company must file all of its delinquent filings, including the Form 15, on or before January 31, 2025. The company would have the opportunity to appeal the delisting determination to a hearings panel.