Ammo, Inc., the owner of GunBroker.com, the online marketplace serving the firearms and shooting sports industries and a vertically integrated manufacturer of performance ammunition and components, announced on February 27 that it received an expected additional deficiency notification letter from the Listing Qualifications Staff of The Nasdaq Stock Market LLC on February 19, 2025.
The Notice indicated that Ammo, Inc. was not in compliance with Nasdaq Listing Rule 5250(c)(1) as a result of its failure to timely file its Quarterly Report on Form 10-Q for the quarter ended December 31, 2024, as described more fully in the company’s Form 12b-25 Notification of Late Filing filed with the Securities and Exchange Commission on February 10, 2025. The Listing Rule requires Nasdaq-listed companies to file all required periodic financial reports with the SEC in a timely manner.
As reported in Form 12b-25, Form 10-Q cannot be filed within the prescribed period without unreasonable effort or expense because
- In consultation with the company’s management, the Board of Directors Audit Committee determined that the financial statements for certain historical periods must be restated.
- An independent investigation conducted by a law firm retained by a Special Committee of the Board of Directors of the company, while nearing its conclusion, is still ongoing.
The company has until March 6, 2025, to submit an updated plan to regain compliance with the Listing Rule. The company intends to submit the Updated Plan timely. Pursuant to the Notice, if Nasdaq accepts the Updated Plan, Nasdaq has the discretion to grant the company an exception of up to 180 calendar days, the compliance period, from the due date of the company’s initial delinquent filing or until May 19, 2025, to regain compliance with the Listing Rule.
While the company is not able to provide specific timing regarding the filing of Form 10-Q, the company continues to work to complete Form 10-Q and intends to file the form as soon as practicable to regain compliance with the Listing Rule within the Compliance Period.
The company has given no assurance that it will be able to regain compliance with the Listing Rule or maintain compliance with the other continued listing requirements outlined in the Nasdaq Listing Rules.
If the company does not regain compliance with the Listing Rule within the Compliance Period, Nasdaq could provide notice that the company’s securities will become subject to delisting. If the company receives notice that its securities will be delisted, Nasdaq rules permit the company to appeal any delisting determination by Nasdaq staff to a hearings panel.
The Notice does not immediately affect the listing of the company’s common stock or preferred stock on Nasdaq.
Image courtesy Ammo, Inc.
