8-K: CXApp Inc. Receives Nasdaq Notice of Non-Compliance Due to Late Quarterly Filing

CXApp Inc. has received a notice from Nasdaq for failing to file its quarterly report on time, adding to previous non-compliance issues.

Summary

• CXApp Inc. received a notice from Nasdaq on May 22, 2024, stating the company is not compliant with listing rules due to a delay in filing its Form 10-Q for the quarter ended March 31, 2024.
• This notice follows a previous notice received on April 19, 2024, for not filing the Annual Report on Form 10-K for the year ended December 31, 2023.
• The company has until June 17, 2024, to submit a plan to Nasdaq on how it will regain compliance.
• Nasdaq may grant the company up to 180 days from the due date of the Form 10-K, or until October 14, 2024, to regain compliance.
• CXApp intends to submit a compliance plan and file the Form 10-Q by June 17, 2024, but there are no guarantees on the timing.

Sentiment

Score: 3

Explanation: The document highlights significant issues with compliance and late filings, which are negative indicators for investors. The company is facing potential delisting, which is a major concern.

Positives

• The company intends to submit a plan to Nasdaq to regain compliance.
• The company is working to file the Form 10-Q as soon as practicable by June 17, 2024.
• Nasdaq has the discretion to grant an extension until October 14, 2024, to regain compliance.

Negatives

• CXApp Inc. is currently not in compliance with Nasdaq listing rules.
• The company has received two notices of non-compliance for late filings.
• There is no guarantee that the company will meet the deadlines or regain compliance.
• The company's stock and warrants are still trading on the Nasdaq Global Select Market, but this could change if compliance is not achieved.

Risks

• There is a risk that Nasdaq may not accept the company's compliance plan.
• The company may not be able to meet the deadlines set by Nasdaq.
• There is a risk of further delays in filing the Form 10-K and Form 10-Q.
• Additional accounting errors or corrections could be identified, causing further delays.
• The company's stock could be delisted if it fails to regain compliance.

Future Outlook

The company plans to submit a compliance plan to Nasdaq and file the Form 10-Q as soon as practicable, but there are no guarantees on the timing or outcome.

Management Comments

• The company intends to submit the Plan and take the necessary steps to regain compliance with Nasdaq's listing rules as soon as practicable.
• The company will continue to work diligently to complete and file the Form 10-Q as soon as practicable by June 17, 2024.

Industry Context

Late filings and non-compliance with listing rules can negatively impact investor confidence and potentially lead to delisting, which is a concern for any publicly traded company.

Comparison to Industry Standards

• Timely filing of financial reports is a fundamental requirement for all companies listed on major exchanges like Nasdaq.
• Companies like Microsoft, Apple, and Google consistently meet their filing deadlines, setting a high standard for compliance.
• Failure to meet these standards can lead to increased scrutiny from regulators and investors, as seen in cases of companies like Enron and WorldCom, which faced severe consequences for accounting irregularities and late filings.

Stakeholder Impact

• Shareholders are negatively impacted by the non-compliance and potential delisting.
• Employees may be concerned about the company's future.
• Creditors may be concerned about the company's financial stability.

Next Steps

• The company needs to submit a compliance plan to Nasdaq by June 17, 2024.
• The company needs to file the Form 10-Q for the quarter ended March 31, 2024, by June 17, 2024.
• The company needs to work towards regaining compliance with Nasdaq listing rules.

Key Dates

Keywords

Nasdaq, non-compliance, late filing, Form 10-Q, Form 10-K, listing rules, compliance plan, delisting, SEC, CXApp