KIT digital, Inc. Announces Receipt of Notice From NASDAQ
December 10 2012 - 4:10PM
Marketwired
KIT digital, Inc. (NASDAQ: KITD), a leading video management
software and services company, announced today that it has received
notice from The NASDAQ OMX Group ("Nasdaq") that, because the
Company has not yet filed its Quarterly Report on Form 10-Q for the
period ended September 30, 2012 (the "10-Q") with the Securities
and Exchange Commission (the "SEC"), the Company no longer complies
with the continued listing requirements under Nasdaq Marketplace
Rule 5250(c)(1).
As previously reported by the Company in its Notification of
Late Filing on Form 12b-25, filed with the SEC on November 21,
2012, the Company was unable to file the 10-Q within the prescribed
period due to restatement of certain historical financial
statements. As previously disclosed, the restatement is due to
accounting errors and irregularities primarily related to
recognition of revenue related to certain perpetual software
license agreements entered into by the prior management team in
2010 and 2011. These errors and irregularities were discovered in
connection with the Audit Committee's previously disclosed
investigation of certain transactions that resulted in impairment
charges. The Audit Committee has also determined that certain
transactions entered into by the Company under the prior management
team during fiscal years ended December 31, 2008 through 2011 were
related party transactions and that additional disclosure with
respect to those transactions should have been included in the
footnotes to the relevant financial statements. Because of the
timing of the completion of the Audit Committee investigation and
the Company's ongoing review and investigation of certain
transactions, the Company requires additional time to complete an
analysis of the accounting treatment for the software licenses and
to determine the extent of the corrections that may be required to
its historical financial statements.
The Company is required to submit a plan to regain compliance
with Nasdaq's requirements for continued listing, and, under the
discretionary authority under Nasdaq Marketplace Rule 5101, in
order to expedite the review process, Nasdaq is requiring that the
plan must be submitted no later than December 18, 2012. If Nasdaq
accepts the plan submitted by the Company, Nasdaq can grant an
exception of up to 180 calendar days from the due date of the 10-Q
to regain compliance. The Company intends to submit to Nasdaq, on
or before December 18, 2012, a plan to regain compliance with
Nasdaq's requirements for continued listing and other requested
supplemental information. There can be no assurance that the
Company will successfully regain compliance with Nasdaq listing
requirements.
If Nasdaq does not accept the Company's plan, Nasdaq will
provide notice that the Company's common stock will be subject to
delisting. The Company would have the right to appeal a
determination to delist its common stock, and the common stock
would remain listed on the Nasdaq Global Select Market until the
completion of the appeal process.
Important Caution Regarding Forward-Looking
Statements
This report contains certain "forward-looking statements." These
statements can be identified by the use of words or phrases such as
"believes," "estimates," "expects," "intends," "anticipates,"
"projects," "plans" and variations of these words or similar words.
Important risks, uncertainties and other important factors that
could cause actual results to differ materially include, among
others: the risk that additional information may become available
in preparing and auditing the financial statements that would
require the Company to make additional corrections, the time and
effort required to complete the restatement of the financial
statements, the ramifications of the Company's potential inability
to timely file future periodic and other reports with the SEC,
including potential delisting of the Company's common stock on
Nasdaq and the risk of litigation or governmental investigations or
proceedings relating to these matters. Certain risks and
uncertainties related to the Company's business are or will be
described in greater detail in the Company's filings with the SEC.
Except as required by applicable law, the Company is not under
obligation to (and expressly disclaims any such obligation to)
update its forward-looking statements whether as a result of new
information, future events or otherwise.
About KIT digital, Inc. KIT digital
(NASDAQ: KITD) is a leading video management software and services
company. Cosmos and Cloud, the Company's video asset management
systems, enable leading broadband media companies to produce,
manage and deliver multiscreen socially-enabled video experiences
to audiences wherever they are. KIT digital services nearly 2,500
clients in 50+ countries including some of the world's biggest
brands, such as Airbus, The Associated Press, AT&T, BBC, BSkyB,
Disney-ABC, Google, HP, Mediaset, MTV, News Corp, RCS Media Group,
Sky Deutschland, Sky Italia, Telecom Argentina, Telecom Italia,
Telefonica O2, Universal Studios, Verizon, Vodafone, VRT and
Volkswagen. KIT digital maintains headquarters in New York City and
offices in more than a dozen countries around the world. Visit the
company at www.kitd.com.
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KIT digital Media Contact: Werbayne McIntyre Director,
Marketing Tel. +44 1904 438000 Mobile +44 7590 554 845 Email
Contact KIT digital Investor Contact: Murray Arenson
Managing Director, Financial Strategy Tel. +1-646-553-4900 Email
Contact
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