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Vending machine payments provider USA Technologies Inc. reported Wednesday that The NASDAQ Stock Market LLC has accepted its plan to regain compliance with its listing rule. The company, however, still hasn’t completed an internal investigation of customer contracts that has delayed the filing of its financial reports.
The NASDAQ in early October notified USAT that it was out of compliance with the listing rule because it hadn’t yet filed an annual report with the Securities and Exchange Commission for its fiscal 2018 ended June 30. The notice gave Malvern, Pa.-based USAT until Nov. 1 to submit a compliance plan, which the company did on Oct. 30.
The acceptance means USAT’s common and preferred stock can continue trading on the NASDAQ Global Market exchange. The NASDAQ also granted an exception under which USAT now has until March 12 to submit its annual report and any delinquent quarterly reports to the SEC. If it doesn’t, USAT’s stock could be delisted.
The big questions are what exactly is USAT’s board of directors is investigating, and why the probe is taking so long. USAT has said little since first announcing Sept. 11 that it was conducting an internal investigation “relating to certain of the company’s contractual arrangements, including the accounting treatment, financial reporting, and internal controls related to such arrangements.” Wednesday press release announcing the NASDAQ action gave little new insight.
“The investigation remains ongoing, and the [board’s] Audit Committee is working closely with its advisors to complete its investigation in as timely a manner as possible,” the release says.
Once the probe is done, USAT won’t file its annual report and quarterly report for the three months ended Sept. 30 until it assesses the findings and takes any needed remedial action, according to the release.
A USAT spokesperson tells Digital Transactions News he can’t say anything about the investigation beyond the press release. USAT specializes in unattended payments services, such as for vending machines, kiosks, and car washes.
