Yunhong Green CTI Ltd. Receives Non-Compliance Notification from Nasdaq Related to its Inability to File its 10-Q for the Period Ended March 31, 2024
Rhea-AI Summary
Yunhong Green CTI (Nasdaq: YHGJ) has received a non-compliance notification from Nasdaq due to its failure to file its 10-Q for the period ending March 31, 2024. The issue arose after the company's prior auditor, BF Borgers CPA PC, was suspended from practicing before the SEC, necessitating additional work by the new audit firm, Wolf & Company, PC. The company is collaborating with Wolf & Company to complete the necessary audits. Yunhong Green CTI must submit a compliance plan to Nasdaq by July 22, 2024, and an extension could be granted until November 18, 2024, if needed. Failure to meet these requirements may result in delisting.
Positive
- The company is actively working with its new audit firm, Wolf & Company, to resolve compliance issues.
- Yunhong Green CTI has a clear deadline (July 22, 2024) to submit a compliance plan, providing a structured timeline.
Negative
- Yunhong Green CTI failed to file its 10-Q for the period ending March 31, 2024, leading to a Nasdaq non-compliance notification.
- The prior auditor, BF Borgers CPA PC, was suspended from practicing, causing delays in required filings.
- The company cannot issue any filings during 2024 until the new audit is completed, potentially impacting investor confidence.
- If the compliance plan is not accepted by Nasdaq or the deadlines are not met, Yunhong Green CTI risks being delisted from the Nasdaq Capital Market.
News Market Reaction
On the day this news was published, YHGJ gained 0.87%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Prior Auditor Suspended from Practicing, Requiring Additional Work to be Performed Prior to issuing 2024 Filings
LAKE BARRINGTON, IL / ACCESSWIRE / May 28, 2024 / Yunhong Green CTI Ltd. (Nasdaq: YHGJ) ("Yunhong Green CTI" or the "Company"), a leading manufacturer of custom film products, foil and latex novelty balloons, and flexible packaging products, today announced its receipt of a May 22, 2024 notice from The Nasdaq Capital Market indicating the Company's non-compliance with Listing Standard 5250(c)(1), as the Company has not filed its 10-Q for the period ended March 31, 2024 as required.
As previously reported, BF Borgers CPA PC (BFB) was engaged as the Company's independent registered public accounting firm until The Audit Committee selected Wolf & Company, PC as the Company's independent registered public accounting firm as of April 1, 2024. On May 3, 2024, the Company became aware that BFB had agreed to be suspended from appearing or practicing before the SEC. Because of this, the Company may no longer use audit reports or consent from BFB in future filings. Without the 2023 audit report, the Company's new auditors will need to perform procedures related to 2023 balances in order to be able to perform an effective review of required 2024 filings, including the Form 10-Q for the period ended March 31, 2024. The Company is working with its new audit firm to perform this work. Until this is completed, the Company will not be able to issue filings during 2024.
The Company must present its plan to regain compliance to Nasdaq no later than July 22, 2024, at which time the Nasdaq may grant an exception to later than November 18, 2024. If the Nasdaq does not accept the Company's plan to regain compliance, the Company may appeal that decision to Hearings Panel. The Company intends to submit its plan to regain compliance no later than July 22, 2024.
About Yunhong Green CTI Ltd.
Yunhong Green CTI Ltd. is one of the leading manufacturers and marketers of foil balloons and produces laminated and printed films for commercial uses. Yunhong Green CTI also distributes balloon-inspired gift items and markets its products throughout the United States and in several other countries. For more information about our business, visit our corporate website at www.ctiindustries.com.
Company Contact:
info@ctiindustries.com
+ 1-847-382-1000
SOURCE: Yunhong Green CTI Ltd.
View the original press release on accesswire.com
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