Mitek Announces Extension of Nasdaq Stay and Hearing Date
- None.
- The company is facing potential delisting if it fails to maintain compliance with Nasdaq Listing Rule 5250(c.
- Mitek anticipates delays in filing its Quarterly Report on Form 10-Q for the period ended December 31, 2023 due to previously delayed filings.
The decision by the Nasdaq Hearings Panel to extend the stay of suspension for Mitek Systems' securities is a crucial lifeline for the company. This move allows Mitek to maintain its listing on the Nasdaq Stock Market while it works towards regaining compliance with the Nasdaq Listing Rule 5250(c), which requires timely financial reporting. From a financial perspective, the ability to trade on a major exchange like Nasdaq is vital for a company's stock liquidity and investor confidence. A delisting could significantly diminish the stock's accessibility to institutional investors and trigger a sell-off among concerned shareholders.
However, the delay in filing the Annual Report (Form 10-K) and the anticipated delay of the Quarterly Report (Form 10-Q) could raise red flags about the company's internal controls and financial health. Investors and analysts often scrutinize such delays, as they may indicate deeper issues within the company's operations or financial accounting practices. The extended timeline for compliance also suggests that the company is facing challenges that may not be resolved quickly, potentially impacting its financial performance and stock valuation in the near term.
Under Nasdaq Listing Rule 5250(c), companies are required to file periodic financial reports with the Securities and Exchange Commission (SEC) in a timely manner. Mitek Systems' failure to file its Form 10-K and the anticipated delay in filing its Form 10-Q may suggest potential legal and regulatory complications. While the Panel's decision to extend the stay of suspension provides temporary relief, it does not absolve the company from the need to address the underlying issues that led to the non-compliance.
Should Mitek fail to file the necessary reports and regain compliance within the given timeframe, the Nasdaq Listing Qualifications Department's Mandatory Panel Monitor could lead to a delisting determination. This would not only affect the company's market presence but could also result in legal challenges, including shareholder lawsuits or increased scrutiny from the SEC, which may have long-term implications for the company's legal standing and corporate governance reputation.
The uncertainty surrounding Mitek Systems' ability to maintain its Nasdaq listing status can have a tangible impact on market perception and the company's industry standing. In the digital identity and fraud prevention market, credibility and trust are paramount. The market's reaction to delays in financial reporting may extend beyond immediate stock performance, potentially affecting business partnerships, customer relationships and competitive positioning.
It is also important to consider the broader industry context. If Mitek's competitors are consistently meeting their regulatory obligations and financial reporting timelines, Mitek's delays may be perceived as a competitive disadvantage. The company's ability to swiftly resolve its reporting issues and communicate effectively with stakeholders will be critical in maintaining market confidence and minimizing any negative impact on its business operations and strategic initiatives.
Nasdaq panel maintains status quo of the Company’s securities pending hearing
As previously reported, the Company is subject to a Mandatory Panel Monitor for a period of one year, or until November 6, 2024, which requires the Nasdaq Listing Qualifications Department to promptly issue a delisting determination in the event that the Company fails to maintain compliance with Nasdaq Listing Rule 5250(c). As previously disclosed on December 18, 2023, the Company intended to appeal a determination by the Nasdaq Listing Qualifications Department to delist the Company’s securities due to the Company’s failure to timely file its Annual Report on Form 10-K for the period ended September 30, 2023 (the "Form 10-K") with the Securities and Exchange Commission. On December 26, 2023 the Company timely requested a hearing before the Panel and requested that the automatic stay of suspension be extended through the completion of the hearings process and the expiration of any additional extension period granted by the Panel following the hearing.
While the Company intends to file its Form 10-K as quickly as possible to regain compliance, it currently anticipates that, as a result of the Company's previously delayed filings, it will be delayed in filing its Quarterly Report on Form 10-Q for the period ended December 31, 2023 which is due on February 9, 2024 and which cannot be completed and filed until the Form 10-K has been filed.
About Mitek Systems, Inc.
Mitek (NASDAQ: MITK) is a global leader in digital access, founded to bridge the physical and digital worlds. Mitek’s advanced identity verification technologies and global platform make digital access faster and more secure than ever, providing companies with new levels of control, deployment ease and operation, while protecting the entire customer journey. Trusted by
Follow Mitek on LinkedIn, Twitter and YouTube, and read Mitek’s latest blog posts here.
Notice Regarding Forward-Looking Statements
Statements contained in this news release relating to the Company or its management’s intentions, hopes, beliefs, expectations or predictions of the future, including, but not limited to, statements relating to the Company or its management’s intentions, hopes, beliefs, expectations or predictions of the future, including, but not limited to, statements relating to the Company's listing status and the Company’s filing of its Annual Report on Form 10-K for the period ended September 30, 2023 and its Quarterly Report Form 10-Q for the period ended December 31, 2023 constitute forward looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks related to the Company’s ability to withstand negative conditions in the global economy, a lack of demand for or market acceptance of the Company’s products, the impact of the Company’s acquisition of HooYu Ltd. including any operational or cultural difficulties associated with the integration of the businesses of Mitek and HooYu Ltd., the Company’s ability to continue to develop, produce and introduce innovative new products in a timely manner, the Company’s ability to capitalize on a growing market, quarterly variations in revenue, the profitability of certain sectors of the Company, the performance of the Company’s growth initiatives, the outcome of any pending or threatened litigation, and the timing of the implementation and launch of the Company’s products by the Company’s signed customers.
Additional risks and uncertainties faced by the Company are contained from time to time in the Company’s filings with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240117992011/en/
Investor Contact:
Todd Kehrli or Jim Byers
MKR Investor Relations, Inc.
mitk@mkr-group.com
Source: Mitek Systems, Inc.
FAQ
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