BIO-key International, a company specialising in identity and access management solutions, has been issued a non-compliance notification from the Nasdaq Stock Market. The notice, which the company received recently, relates to its failure to submit its annual report on Form 10-K for the fiscal year concluding on 31st December 2023 within the stipulated timeframe.
The Nasdaq Listing Rule 5250(c)(1) mandates that all listed companies must file their periodic financial reports with the U.S. Securities and Exchange Commission (SEC) in a timely manner. BIO-key's delay in filing its annual report has triggered this formal warning from the exchange.
Upon receiving such a notice, companies are typically afforded a period to rectify the situation. In BIO-key's case, the company has been granted 60 calendar days from the date of the notice to present a plan to Nasdaq outlining how it intends to regain compliance with the listing requirements. This plan will then be reviewed by Nasdaq staff.
Should Nasdaq accept the company's plan, BIO-key could be granted an extension of up to 180 calendar days from the original due date of the Form 10-K, or until 9th September 2024, to file the overdue report. During this period, the company's shares would continue to be listed on the Nasdaq Capital Market, subject to continued compliance with other listing standards.
However, if BIO-key fails to submit an acceptable plan or does not regain compliance within any extended period, it could face the prospect of its shares being delisted from the Nasdaq Capital Market. Such an event would significantly impact the company's ability to raise capital and the liquidity of its shares for investors. While BIO-key is a US-based entity, the implications of such compliance issues on a major global exchange like Nasdaq can sometimes ripple through international investment portfolios, including those held by UK investors with exposure to US tech stocks.