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Urban-gro, Inc. (NASDAQ: UGRO) has received a notification from Nasdaq indicating non-compliance with Nasdaq Listing Rule 5250(c)(1). This rule requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission (SEC).
Urban-gro’s non-compliance stems from its failure to file its Quarterly Report for the period ending March 31, 2025 (Form 10-Q), and its Annual Report for the period ending December 31, 2024 (Form 10-K), by their respective due dates.
The company attributes these delays to:
* Accounting errors in historical tax liabilities: These errors necessitated restatements of prior financial statements, which were completed in February 2025. This process required significant management attention and expenditures.
* Turnover in the finance department: Changes in personnel within the finance team further contributed to the delays.
Implications and Next Steps:
* No immediate delisting: The notification does not immediately affect the listing of Urban-gro’s common stock on the Nasdaq Capital Market.
* Compliance Plan: Urban-gro has 60 calendar days from April 16, 2025 (meaning until June 16, 2025), to submit a plan to Nasdaq to regain compliance with the listing rules.
* Potential Extension: If Nasdaq accepts the company’s compliance plan, it may grant an extension of up to 180 calendar days from the filing’s due date, potentially until October 13, 2025, to regain full compliance.
* Delisting Risk: If Urban-gro fails to file the required reports and/or its compliance plan is not accepted or executed, it faces the risk of delisting from Nasdaq. Delisting can negatively impact the liquidity of a company’s stock and investor confidence.
Urban-gro has stated its intention to file the Form 10-K as soon as practicable and, if necessary, submit a compliance plan to Nasdaq.

Video courtesy of First Bank of Nigeria

Video courtesy of First Bank of Nigeria