Micropolis Holding Company Announces Receipt of Audit Opinion with Going Concern Explanation

Rhea-AI Summary

Micropolis Holding Company (NYSE: MCRP), a leader in unmanned ground vehicles and AI security solutions, disclosed that its audited financial statements for FY2024 received an audit opinion with a going concern explanation from its independent auditors. The announcement, made in compliance with NYSE American LLC Company Guide Sections 401(h) and 610(b), relates to information previously reported in the company's Annual Report Form 20-F filed on May 8, 2025. The going concern explanation raises questions about the company's ability to continue operations under current circumstances. This disclosure does not represent any changes or amendments to the company's financial statements or 2024 Annual Report.

Positive

• None.

Negative

• Auditors expressed substantial doubt about the company's ability to continue as a going concern
• Potential financial instability and liquidity concerns indicated by the going concern opinion
• Risk of potential delisting or further regulatory scrutiny due to financial condition

Insights

Financial Restructuring Specialist

Micropolis received a "going concern" audit opinion, signaling significant doubts about the company's ability to continue operations.

Micropolis Holding Company has disclosed receipt of a "going concern" audit opinion in its 2024 annual report. This represents a serious red flag for investors. A going concern qualification occurs when auditors have substantial doubt about a company's ability to continue operating for the foreseeable future - typically the next 12 months.

This disclosure indicates Micropolis is likely facing severe liquidity challenges or other financial difficulties that threaten its operational viability. While the press release doesn't detail the specific issues, such opinions typically stem from factors like unsustainable cash burn rates, inability to service debt obligations, or operational losses without clear paths to profitability.

The company emphasizes this announcement is merely procedural, required by NYSE American listing rules (Sections 401(h) and 610(b)), and doesn't represent any new information beyond what was already disclosed in their May 8th annual report. However, this mandated public announcement ensures broader awareness of this critical financial situation.

Investors should recognize that companies receiving going concern opinions face heightened risks of bankruptcy if they cannot secure additional funding or significantly improve their financial position. The fact that this information was previously disclosed in the annual report but now requires specific announcement underscores the severity of the situation from a regulatory perspective.

DUBAI, United Arab Emirates, June 09, 2025 (GLOBE NEWSWIRE) -- Micropolis Holding Company (“Micropolis” or the “Company”) (NYSE American: MCRP), a pioneer in unmanned ground vehicles and AI-driven security solutions, today announced that, as previously disclosed in its Annual Report on Form 20-F for the fiscal year ended December 31, 2024, which was filed on May 8, 2025 with the Securities and Exchange Commission (the “2024 Annual Report”), the Company’s audited financial statements contained an audit opinion from its independent registered public accounting firm that included an explanatory paragraph related to the Company’s ability to continue as a going concern. See further discussion in Note 3 to the Company’s financial statements included in the 2024 Annual Report. This announcement is made pursuant to NYSE American LLC Company Guide Sections 401(h) and 610(b), which requires public announcement of the receipt of an audit opinion containing a going concern paragraph. This announcement does not represent any change or amendment to the Company’s financial statements or to its 2024 Annual Report.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “will”, “should”, “can have”, “likely” and other words and terms of similar meaning. Forward-looking statements represent Micropolis’ current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

About Micropolis Holding Company

Micropolis is a UAE-based company specializing in the design, development, and manufacturing of unmanned ground vehicles (UGVs), AI systems, and smart infrastructure for urban, security, and industrial applications. The Company’s vertically integrated capabilities cover everything from mechatronics and embedded systems to AI software and high-level autonomy.

For more information please visit www.micropolis.ai.

Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
PH: (212) 896-1254
Valter@KCSA.com

Media Contact:
Jessica Starman
media@elev8newmedia.com

FAQ

What does the going concern warning mean for Micropolis (MCRP) stock?

A going concern warning indicates auditors have substantial doubt about the company's ability to continue operations, suggesting significant financial challenges that could affect stock value and investor confidence.

Why did Micropolis (MCRP) receive a going concern opinion from auditors?

The going concern opinion was included in Micropolis' FY2024 financial statements, indicating auditors' concerns about the company's ability to continue operations, though specific financial details weren't disclosed in the announcement.

What are the NYSE American requirements for MCRP regarding the going concern announcement?

NYSE American LLC Company Guide Sections 401(h) and 610(b) require public companies to announce when they receive an audit opinion containing a going concern paragraph.

What is Micropolis (MCRP)'s response to the going concern warning?

Micropolis stated this announcement doesn't represent any changes to their financial statements or 2024 Annual Report, and referred investors to their SEC filings for detailed risk factors.

What are the potential consequences for Micropolis (MCRP) after receiving a going concern warning?

Potential consequences include increased scrutiny from investors and regulators, possible difficulty securing financing, and risk of stock price volatility or delisting if financial conditions don't improve.