Nasdaq has hit Impinj with a “notice of deficiency” by Nasdaq for failing to report its quarterly earnings on time, after the maker of connected chips to track and identify billions of items disclosed an ongoing investigation by an audit committee.
Impinj, the Seattle company known for its RAIN RFID products, said last week an audit committee from the company’s board had retained legal counsel to conduct an “independent investigation” following a complaint made by a former employee. Impinj offered little detail on the investigation or the substance of the complaint but did say it wouldn’t be able to file its quarterly 10-Q earnings statement with the U.S. Securities and Exchange until the inquiry wraps up.
“Impinj cannot predict the duration or outcome of the investigation, and will not be in a position to file Form 10-Q until the Audit Committee completes its investigation,” the company said in a press release last week.
In response, Nasdaq issued the “notice of deficiency” that starts a 60-day clock for Impinj to set up a plan to issue the 10-Q. Impinj could be granted an exception of up to 180 days if it comes to an agreement with Nasdaq, which would give it a deadline of Feb. 5, 2019 to get back in compliance.
Impinj did not immediately respond to a request for further comment on the audit and Nasdaq notice.
If Impinj doesn’t meet Nasdaq’s deadlines, the stock exchange could halt trading of the company’s shares. Impinj noted in its press release that the Nasdaq notice issued today has no effect on trading.
Impinj shares remained static in after-hours trading Monday, following the announcement of the Nasdaq notice. Last week’s delayed earnings and investigation announcement, caused Impinj stock to drop 13 percent.
When it does eventually issue its quarterly financials, Impinj expects to report revenue of $28.5 million, exceeding Wall Street expectations as well as its own projections.