PetMed Express Receives Notification of Deficiency from Nasdaq Related to Delayed Filing of Quarterly Report on Form 10-Q
PetMed Express, Inc. (PETS) received a notice from Nasdaq due to a delayed filing of Form 10-Q, leading to non-compliance with Nasdaq Listing Rule 5250(c)(1). The company must submit a plan to regain compliance within 60 days. The delay was caused by a financial statement restatement, detailed in a recent Form 8-K filing. PetMeds® is actively working to complete the restatement and file the Form 10-Q promptly.
The notification received by PetMed Express from Nasdaq regarding non-compliance due to the delay in filing the Form 10-Q is a significant regulatory issue that warrants attention from investors. The delay, caused by a restatement of financials, typically indicates discrepancies in past financial reports, which may result in revisions to earnings, assets, or liabilities. Such restatements can lead to volatility in the company's stock price as they may alter investor perceptions of the company's financial health and future prospects.
From a financial perspective, the restatement process can be costly and time-consuming, potentially diverting management's attention from day-to-day operations and strategic initiatives. If the company fails to regain compliance within the stipulated timeframe, it risks further sanctions from Nasdaq, including delisting. Investors should closely monitor the company's progress in addressing the issues that led to the restatement and the impact on its financial statements.
The issuance of the Notice by Nasdaq is a procedural step that follows the failure to meet the Listing Rule 5250(c)(1). While it does not immediately affect the trading of PetMed Express's stock, it does trigger a compliance process that the company must navigate. The legal implications of non-compliance can be serious, potentially leading to delisting if compliance is not regained. The company's ability to submit a comprehensive plan outlining the steps to rectify the filing delay and prevent future occurrences will be critical.
Furthermore, the restatement of financial statements may also attract scrutiny from the SEC and could result in legal proceedings if any wrongdoing is uncovered. Investors should be aware of the potential for legal risks that may arise from such restatements and the associated implications for market confidence and the company's reputation.
The restatement of financials and subsequent non-compliance notice from Nasdaq can have broader implications on the market's perception of the pet pharmaceutical industry, particularly regarding the reliability of financial reporting. Investors may become more cautious, applying increased due diligence to other companies in the sector. This could lead to a reevaluation of risk premiums associated with stocks in the industry, potentially affecting valuations.
It is also important to consider the competitive landscape. If PetMed Express is perceived as weakened by these events, competitors could capitalize on the situation by reinforcing their own market positions. Monitoring industry reactions and any shifts in market share will be important to understand the full impact of the situation on PetMed Express and the sector as a whole.
02/15/2024 - 08:30 AM
DELRAY BEACH, Fla., Feb. 15, 2024 (GLOBE NEWSWIRE) -- PetMed Express, Inc. (“PetMeds®”) (NASDAQ: PETS), received on February 13, 2024, a notice (the “Notice”) from The Nasdaq Stock Market LLC (“Nasdaq”) indicating that, as a result of not having timely filed the Form 10-Q with the SEC, the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”), which requires timely filing of all required periodic financial reports with the SEC.
The Notice has no immediate effect on the listing or trading of the Company’s common stock on Nasdaq.
The Notice indicated that the Company must submit a plan to regain compliance with the Listing Rule within 60 calendar days and, following receipt of such plan, Nasdaq may grant an extension of up to 180 calendar days from the Form 10-Q due date, or until August 7, 2024, for the Company to regain compliance. On February 9, 2024, the Company filed a Notification of Late Filing on Form 12b-25 indicating that it was unable, without unreasonable effort or expense, to file its Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2023 (the “Form 10-Q”) by the prescribed due date as a result of the restatement of certain of the Company’s financial statements (the “Restatement”). The Restatement is more fully described in the Company’s Current Report on Form 8-K filed with the SEC on February 8, 2024.
While the Company can provide no assurances as to timing, the Company is working diligently to complete the Restatement and plans to file the Form 10-Q as soon as practicable to regain compliance with the Listing Rule.
ABOUT PETMEDS
Founded in 1996, PetMeds is Your Trusted Pet Health Expert, delivering pet medications, food, health services and other products direct to the consumer at PetMeds.com and through its toll-free number (1-800-PetMeds). PetMeds aims to be the most trusted pet health expert by providing incredible care and services that are affordable to the broadest group of pet parents--because every pet deserves to live a long, happy, healthy life. For more information, please visit www.petmeds.com .
FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. Words such as “may,” “could,” “expect,” “project,” “outlook,” “strategy,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “strive,” “goal,” “continue,” “likely,” “will,” “would” and other similar words and expressions are intended to signify forward-looking statements. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain and are subject to various risks and uncertainties, including: statements regarding the Company’s ability to complete the filing of the Form 10-Q within the anticipated time period; the Company’s ability to regain compliance with Nasdaq listing standards; and the time required to complete the Restatement of the Company’s financial statements. The Company’s future results may also be impacted by other risk factors listed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”), including, but not limited to, the Company's Annual Report on Form 10-K for the year ended March 31, 2023, as well as other subsequent filings on Form 10-Q and periodic filings on Form 8-K. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release and should not be relied upon as representing the Company’s views as of any subsequent date. The Company explicitly disclaims any obligation to update any forward-looking statements, other than as may be required by law. If the Company does update one or more forward-looking statements, no inference should be made that the Company will make additional updates with respect to those or other forward-looking statements.
PETMEDS INVESTOR RELATIONS CONTACT
PETMEDS MEDIA CONTACT
Why did PetMed Express receive a notice from Nasdaq?
PetMed Express received a notice from Nasdaq due to a delayed filing of Form 10-Q, leading to non-compliance with Nasdaq Listing Rule 5250(c)(1).
What is the deadline for PetMed Express to submit a plan to regain compliance?
PetMed Express must submit a plan to regain compliance within 60 calendar days from the receipt of the Notice.
What caused the delay in filing the Form 10-Q?
The delay in filing the Form 10-Q was caused by the restatement of certain financial statements by PetMed Express.
When did PetMed Express file a Notification of Late Filing?
PetMed Express filed a Notification of Late Filing on Form 12b-25 on February 9, 2024.
What steps is PetMed Express taking to regain compliance with the Listing Rule?
PetMed Express is working diligently to complete the financial statement restatement and plans to file the Form 10-Q promptly to regain compliance with the Listing Rule.
