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Not very Zoom-like…
Zoom Technologies, Inc. (Nasdaq:ZOOM) has announced it is late in filing its Annual Report on Form 10-K for the fiscal year ended December 31, 2013 with the US Securities and Exchange Commission.
The primary cause of the delay in filing its 2013 Annual Report is attributable to a correction of an error in the application of accounting principles related to the Company’s former 50.1% investment in Portables Unlimited, LLC. While the Company has already disposed of its investment, the Company believes it necessary to properly account for its prior investment; therefore, the Company will prospectively, in its forthcoming 2013 Annual Report, revise the figures for its financial position as of December 31, 2012 and related results of operations and cash flows for the year then ended. Net income and loss per share in 2012 were unaffected by these corrective revisions.
The Company contacted Nasdaq as soon as it determined that it would not be able to timely file the 2013 Annual Report; on April 15, 2014, the Company received a Nasdaq Staff Deficiency Letter indicating that, as a result of the Company not timely filing its 2013 Annual Report on Form 10-K, the Company failed to comply with the periodic filing requirements for continued listing set forth in Rule 5250(c)(1) of the Nasdaq Listing Rules.
In accordance with Nasdaq Listing Rule 5810(c)(2), Nasdaq has provided the Company until June 14, 2014 to submit a plan to regain compliance. The Company expects to file its 2013 Annual Report in short order, and fully expects to be able to meet the June 14, 2014 deadline.
Also, on April 14, 2014, the Company received a letter from Nasdaq that it had determined that, in light of the Company’s appointment of Xinyue Jasmine Geffner on March 26, 2014, as previously disclosed in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 27, 2014, the Company has regained compliance with the audit committee requirements for continued listing set forth in Nasdaq Listing Rule 5605(c)(2).
