SunPower Receives Notification of Deficiency from Nasdaq Related to Delayed Filing of Annual Report on Form 10-K

Rhea-AI Summary

SunPower (SPWR) received a notice from Nasdaq regarding non-compliance with timely financial report filings. The company must submit a plan to regain compliance within 60 days. Nasdaq may grant an extension of up to 180 days for compliance. SunPower is working to finalize the Form 10-K for filing.

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• SunPower (SPWR) received a notice from Nasdaq indicating non-compliance with timely financial report filings, potentially affecting the company's stock performance.

Market Analyst

SunPower's notification from Nasdaq regarding non-compliance with the Listing Rule due to a delay in filing its Form 10-K is a matter of concern for investors and stakeholders. The ability to meet filing deadlines is often seen as a reflection of a company's internal processes and financial health. This development may lead to increased scrutiny from investors and analysts alike. The market often reacts to such news with caution, as delays in financial reporting can sometimes be indicative of underlying issues, such as potential financial restatements or operational inefficiencies.

Moreover, while the notice does not immediately affect the stock's listing or trading, the uncertainty surrounding the company's ability to submit a compliance plan and the potential for an extended deadline to regain compliance could introduce volatility in the stock's performance. Investors typically prefer stability and transparency and any deviation from standard regulatory practices can be perceived negatively. The market's response will likely be tied to the company's forthcoming actions and communications regarding the resolution of this issue.

Financial Analyst

From a financial perspective, the delay in filing the Form 10-K could have several implications. The Form 10-K is a comprehensive report of a company's financial performance and is highly anticipated by investors for its detailed insights into the company's operations, including revenue, expenses and profitability. The lack of timely information could impede investors' ability to make informed decisions. Additionally, it may affect analysts' projections and the company's creditworthiness in the eyes of lenders and credit rating agencies.

Investors will be closely monitoring the company's next steps, particularly how quickly SunPower can address the filing delay. The company's ability to provide a robust plan to regain compliance and avoid further regulatory sanctions will be critical in maintaining investor confidence. The financial ramifications of this event could be mitigated if the company demonstrates transparency and efficiency in resolving the issue and communicates effectively with its stakeholders.

Compliance Expert

Compliance with Nasdaq's Listing Rules is essential for maintaining investor trust and access to capital markets. The notice received by SunPower serves as a warning and initiates a process that the company must navigate carefully. The requirement to submit a plan to regain compliance is a standard procedure, but it also serves as a test of the company's governance and responsiveness to regulatory requirements.

The company's statement that it is working diligently to finalize the Form 10-K is positive, but stakeholders will expect a clear timeline and explanation for the delay. Should SunPower fail to meet the extended deadline, it risks further regulatory actions, including potential delisting. Such consequences would be detrimental not only to the company's reputation but also to its financial standing and ability to attract investment. The market will be watching for signs of the company's commitment to resolving this issue and adhering to high standards of corporate governance.

RICHMOND, Calif., March 21, 2024 /PRNewswire/ -- SunPower (NASDAQ:SPWR) received on March 20, 2024, a notice (the "Notice") from The Nasdaq Stock Market LLC ("Nasdaq") indicating that 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, as a result of not having timely filed the Form 10-K with the SEC, as described more fully in the Company's Notification of Late Filing on Form 12b-25 filed with the SEC on February 29, 2024.

The Notice has no immediate effect on the listing or trading of the Company's common stock on the 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-K due date, or until September 11, 2024, for the Company to regain compliance.

While the Company can provide no assurances as to timing, the Company is working diligently to finalize the Form 10-K and plans to file the Form 10-K as soon as practicable to regain compliance with the Listing Rule.

About SunPower

SunPower (NASDAQ:SPWR) is a leading residential solar, storage and energy services provider in North America. SunPower offers solar + storage solutions that give customers control over electricity consumption and resiliency during power outages while providing cost savings to homeowners. For more information, visit www.sunpower.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the Company's statements regarding the Company's ability to complete the filing of the Form 10-K within a specific time period and the Company's ability to regain compliance with Nasdaq listing standards. These forward-looking statements are based on our current assumptions, expectations, and beliefs and involve substantial risks and uncertainties that may cause results to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those related to the Company's ability to complete the filing of the Form 10-K within the anticipated time period; the Company's ability to regain compliance with Nasdaq listing standards; the Company's ability to realize the anticipated benefits of capital received and project financings; the Company's ability to comply with its financing agreements, including debt covenants or cure any defaults; the Company's ability to repay its obligations as they come due; the Company's liquidity, indebtedness, and ability to obtain additional financing for its projects and customers; challenges managing the Company's acquisitions, joint ventures, and partnerships, including its ability to successfully manage acquired assets and supplier relationships; the timing and execution of any restructuring plans; the Company's ability to remediate the material weakness related to the internal control over financial reporting; and the risks and other important factors discussed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K/A filed with the SEC on December 18, 2023 and the Company's other filings with the SEC. Copies of these filings are available online from the SEC or on the SEC Filings section of our Investor Relations website at investors.sunpowercorp.com. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.

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SOURCE SunPower Corp.

What notice did SunPower (SPWR) receive from Nasdaq?

SunPower (SPWR) received a notice from Nasdaq regarding non-compliance with Nasdaq Listing Rule 5250(c)(1) due to untimely filing of the Form 10-K with the SEC.

What action must SunPower (SPWR) take to regain compliance?

SunPower (SPWR) must submit a plan to regain compliance with the Listing Rule within 60 calendar days and may be granted an extension of up to 180 days by Nasdaq.

What is the deadline for SunPower (SPWR) to regain compliance?

SunPower (SPWR) has until September 11, 2024, to regain compliance with the Listing Rule after potentially receiving an extension of up to 180 days from the Form 10-K due date.

Is the Notice impacting SunPower's (SPWR) stock listing or trading?

The Notice from Nasdaq has no immediate effect on the listing or trading of SunPower's (SPWR) common stock on the Nasdaq.