Compliance
Super Micro receives Nasdaq grace period, financial report submission postponed to February 25, 2025
Super Micro Computer announced on Friday that Nasdaq has approved its extension request, allowing the company to postpone the submission deadline for documents such as the fiscal year 2024 10-K and the first quarter fiscal year 2025 10-Q to February 25, 2025. Previously, the company faced delisting risk due to audit issues.
At a Glance
- Super Micro Computer said on Friday that the Nasdaq stock market has approved the technology company's request for an extension, allowing it to delay the filing deadline for its fiscal 2024 10-K report and fiscal 2025 first-quarter 10-Q report to February 25, 2025, while also covering other necessary documents. This news comes from a company press release and securities filings submitted late Friday.
- The San Jose, California-based company's 10-K report for the period ending June 30 was originally due on August 29, and its 10-Q report for the period ending September 30 was originally due on November 12, according to a filing submitted to the U.S. Securities and Exchange Commission on November 20.
- In a letter to Super Micro on Friday, Nasdaq said it had granted an exemption from Listing Rule 5250(c)(1) through February 25, 2025, and noted that "if the company files all required reports by February 25, 2025, its common stock will continue to be listed, provided the company continues to comply with Nasdaq's listing rules," according to the company's filing.
Deep Dive
Super Micro's reprieve from its financial reporting troubles caps off a week that began with the company announcing that an independent special committee investigating audit committee and management integrity issues had found "no evidence of misconduct by management or the board," and that the audit committee had acted independently.
However, the final report did note some missteps, as CFO Dive previously reported. The report recommended that the company "transition" to a new chief financial officer and noted that certain processes "failed," including that the company did not notify its registered public accounting firm, Ernst & Young (EY), before signing a consulting agreement in June 2024 with its former CFO—who resigned following a 2017 investigation—an agreement that was subsequently terminated. Super Micro said it will transition to a new CFO, with current corporate controller David Weigand remaining until a successor is in place.
JPMorgan analysts reported last week that it was critical to see whether Nasdaq would approve Super Micro's extension request, and the company has now received approval. Additionally, the analysts noted that it was also key whether the company's new independent auditor, BDO, would accept the committee's findings, as CFO Dive previously reported. JPMorgan declined to comment on the extension on Monday and did not issue a new report, according to a company spokesperson.
Following the news, Super Micro shares rose as much as 5% in afternoon trading on Monday but closed at $4.16, up only 0.52% for the day. The stock remains down about 40% from six months ago, before concerns about its internal controls and delayed financial reports surfaced in August. The company is considered an artificial intelligence concept stock and is also involved in a supercomputer facility project in Memphis, Tennessee, which Elon Musk's AI startup xAI plans to expand.