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HUB Security Provides an Update on the 2023 Annual Report

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HUB Cyber Security announced they need more time to complete the audit of their annual financial statements and file their Annual Report for the fiscal year ended December 31, 2023. This delay is due to the recent acquisition of QPoint and efforts to finalize debt restructuring. HUB received a notice from Nasdaq indicating non-compliance with listing rules but this does not affect their current listing or trading. HUB has until July 19, 2024, to submit a compliance plan and may receive an extension until November 11, 2024, if Nasdaq approves. HUB remains optimistic about meeting these requirements.

Positive
  • The strategic acquisition of QPoint is expected to enhance HUB's operational capabilities.
  • Efforts to finalize debt restructuring aim to bolster HUB's financial stability.
  • Despite the notice, HUB's securities will continue trading on Nasdaq.
Negative
  • HUB received a non-compliance notice from Nasdaq due to the delay in filing the Annual Report.
  • There is uncertainty whether Nasdaq will accept HUB's compliance plan or grant an extension.
  • The delay in completing the audit may raise concerns among investors.

HUB Cyber Security Ltd.'s delay in filing its Annual Report is a noteworthy development for investors. The delay is largely attributed to the recent strategic acquisition of QPoint and the company's ongoing debt restructuring efforts. These activities have evidently complicated the audit process. It's important to understand that such delays can signal challenges within the company, though they are not uncommon and can also reflect a period of transition and potential growth.

The acquisition of QPoint is a significant event. Acquisitions can provide access to new technologies, customer bases and market opportunities, potentially enhancing HUB's competitive position in the cybersecurity market. However, they also come with integration risks and financial burdens that need to be managed effectively.

The debt restructuring indicates an attempt to improve the company's financial stability. Successfully restructuring debt can lead to better cash flow and a stronger balance sheet, but it also highlights existing financial pressures. Investors should monitor how HUB manages these aspects in the coming months to gauge the true impact on its financial health.

Non-compliance with Nasdaq's listing rule is a concern, but the company's securities will continue to trade as long as other requirements are met. This situation introduces some uncertainty, but HUB has up to 180 days to regain compliance, provided Nasdaq grants an extension. Investors should watch for updates on HUB's compliance plan and Nasdaq's response to it.

Overall, while there are risks associated with the delay and non-compliance notice, the strategic moves could position HUB for future growth if managed well.

TEL AVIV, Israel, May 23, 2024 (GLOBE NEWSWIRE) -- via IBN – HUB Cyber Security Ltd. (Nasdaq: HUBC), a developer of confidential computing cybersecurity solutions and advanced data services ("HUB" or the "Company"), today announced that it requires additional time to complete the audit of its annual financial statements and file its Annual Report on Form 20-F for the fiscal year ended December 31, 2023 (the “Annual Report”) with the Securities and Exchange Commission (“SEC”).

Additional time is required primarily due to the recent strategic acquisition of QPoint and the Company’s efforts to finalize a debt restructuring. These milestones are expected to bolster the Company’s financial stability and enhance its operational capabilities.

The Company has received a notice from The Nasdaq Stock Market LLC (“Nasdaq”) indicating non-compliance with Nasdaq Listing Rule 5250(c)(1) due to the delay. Importantly, this notice does not immediately affect the listing or trading of HUB’s securities, which will continue on Nasdaq as long as other listing requirements are met.

Under the Nasdaq Listing Rules, the Company has 60 calendar days, or until July 19, 2024, to submit a plan to regain compliance. If Nasdaq accepts the Company’s plan, then it may grant an exception of up to 180 calendar days from the original due date of the Annual Report or until November 11, 2024. While there is no guarantee that Nasdaq will accept the plan or grant an extension, the Company is optimistic about meeting these requirements.

For further information or inquiries, please contact: info@hubsecurity.com

About HUB Cyber Security Ltd. 

HUB Cyber Security Ltd. ("HUB Security") was established in 2017 by veterans of the elite intelligence units of the Israeli Defense Forces. The Company specializes in unique cyber security solutions protecting sensitive commercial and government information. The Company debuted an advanced encrypted computing solution to prevent hostile intrusions at the hardware level while introducing a novel set of data theft prevention solutions. HUB Security operates in over 30 countries and provides innovative cybersecurity computing appliances and a wide range of cybersecurity services worldwide. 

Forward-Looking Statements 

This press release contains forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995, including statements about the anticipated benefits of the transaction, and the financial condition, results of operations, earnings outlook and prospects of the combined company. Forward-looking statements are typically identified by words such as "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "future," "forecast," "project," "continue," "could," "may," "might," "possible," "potential," "predict," "seem," "should," "will," "would" and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking. 

The forward-looking statements are based on the current expectations of the management of HUB Security, as applicable, and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in public filings made with the SEC by HUB Security and the following: (i) significant uncertainty regarding the adequacy of HUB Security’s liquidity and capital resources and its ability to pay its obligations as they become due; (ii) the war between Israel and Hamas commenced in October 2023 and the potential expansion of hostilities to other fronts may harm Israel’s economy and HUB Security’s business; (iii) the outcome of any legal or regulatory proceedings against HUB Security in connection with our previously announced internal investigation or otherwise; (iv) the ability to cure and meet stock exchange continued listing standards; (v) the risk that the consummation of the business combination in February 2023 will disrupt HUB Security's operations and future plans; (vi) the ability of HUB Security to retain its management and key employees; and (vii) other risks and uncertainties set forth in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in HUB Security’s Annual Report on Form 20-F filed on August 15, 2023. 

Should one or more of these risks or uncertainties materialize or should any of the assumptions made by the management of HUB Security prove incorrect, actual results may vary in material respects from those expressed or implied in these forward-looking statements. 

All subsequent written and oral forward-looking statements concerning the business combination or other matters addressed in this press release and attributable to HUB Security or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in the press release. Except to the extent required by applicable law or regulation, HUB Security undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release to reflect the occurrence of unanticipated events. 

Wire Service Contact:

IBN
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com


FAQ

Why did HUB Cyber Security delay filing their 2023 Annual Report?

HUB Cyber Security delayed filing their Annual Report due to the recent acquisition of QPoint and efforts to finalize debt restructuring.

What is the Nasdaq compliance issue involving HUBC?

HUB Cyber Security received a non-compliance notice from Nasdaq for failing to file their Annual Report on time, but their securities will still trade as long as other requirements are met.

When does HUBC need to submit their compliance plan to Nasdaq?

HUB Cyber Security has until July 19, 2024, to submit a compliance plan to Nasdaq.

What could happen if HUBC's compliance plan is not accepted by Nasdaq?

If Nasdaq does not accept HUB Cyber Security's compliance plan, or if they fail to meet the requirements, they risk delisting.

How long could HUBC potentially extend their deadline to file the Annual Report?

If Nasdaq accepts their compliance plan, HUB Cyber Security could extend their filing deadline to November 11, 2024.

HUB Cyber Security Ltd.

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