Urban One, Inc. Faces Potential NASDAQ Delisting Due to Non-Compliance

SILVER SPRING, Md. — Urban One, Inc., a leading multimedia company specializing in content for urban audiences in the United States, has received a notification of non-compliance from NASDAQ's Listing Qualifications Department. The Silver Spring-based company, known for targeting Black Americans and urban consumers, was informed that it risks being delisted for failing to meet the NASDAQ Listing Rule 5250(c)(1), which mandates timely filing of periodic financial reports with the Securities and Exchange Commission (SEC).

Notice of Non-Compliance

Urban One UONE, which operates a range of media outlets including radio, television, and digital platforms, disclosed that the NASDAQ notice does not immediately affect trading of its common stock. However, it triggers a process that, without corrective action, could lead to the suspension or delisting of the company's securities. To address the situation, Urban One plans to request a hearing before the NASDAQ Hearings Panel to prevent immediate suspension and seek additional time to regain compliance.

Extension and Compliance Efforts

The NASDAQ Hearings Panel may grant a temporary stay on any delisting actions until a certain date, allowing Urban One time to work towards meeting compliance deadlines. Despite this, there is no guarantee that the requested extension will be granted or that the company will be able to regain compliance within the given timeframe. Delays in filing have occurred due to not having submitted the Quarterly Reports on Form 10-Q for specific periods in 2023 as well as the identification of certain accounting errors.

Audit and Financial Reporting Challenges

Urban One experienced disruptions in its auditing process, leading it to appoint Ernst & Young LLP as its new independent registered public accounting firm. As the company works to finalize and submit its delinquent financial reports, it is concurrently addressing identified errors related to stock-based compensation and the accounting of a joint venture's operations. The resolution of these matters is a priority for Urban One as it strives to meet NASDAQ's requirements and maintain its listing.

Looking Forward

While Urban One addresses the accounting issues and endeavors to file the overdue reports, it reminds stakeholders that forward-looking statements involve inherent risks and uncertainties. The company emphasizes the need for caution in relying on these statements, which reflect current expectations and assumptions about future events and operational performance.

About Urban One, Inc.

Urban One, Inc. UONE, headquartered in Silver Spring, Maryland, is the largest diversified media company primarily targeting Black Americans and urban customers in the U.S. The company boasts a broad portfolio, including TV One, Radio One, and a digital platform serving African American communities. In addition to media properties, Urban One holds interests in ventures such as the MGM National Harbor resort. The company underscores its commitment to providing a dynamic and influential media platform for advertisers seeking to engage the African American and urban markets.

UrbanOne, NASDAQ, Compliance, Delisting, FinancialReports, Media, Extension, Securities, Stock, Accounting