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ROANOKE, Va. - Luna Innovations (NASDAQ:LUNA) Incorporated (NASDAQ:LUNA), a company specializing in fiber optic-based technology, has received a notice from the Nasdaq Stock Market for non-compliance with filing requirements, the company disclosed Monday. The notice, dated August 20, 2024, indicates that Luna has not submitted its financial reports for the quarters ending June 30 and March 31, 2024, as well as the annual report for the year ended December 31, 2023.
According to the Nasdaq Listing Rule 5250(c)(1), companies are expected to file periodic financial reports timely with the Securities and Exchange Commission (SEC). Luna's failure to meet this requirement has put its stock at risk of being delisted from the Nasdaq exchange. The company had previously received warnings about non-compliance on May 17 and April 2, 2024, for its delayed quarterly and annual filings, respectively.
The current notice does not immediately affect Luna's stock listing. The company has been granted an extension until September 11, 2024, to regain compliance, following an earlier submitted plan. Luna must now update its plan by September 4, 2024, to address the additional delinquency. If Nasdaq accepts the updated plan, Luna may receive an additional grace period up to 180 days from the original due date for filing the annual report to achieve compliance.
In the event that Nasdaq rejects Luna's compliance plan, the company will have the opportunity to appeal the decision before a Nasdaq Hearings Panel. Luna is actively working to complete its delinquent filings and intends to update stakeholders when more information becomes available.
Luna Innovations is known for its high-performance, fiber optic-based test products for the telecommunications industry and distributed fiber optic sensing for various industries. The company's business model focuses on bringing innovative technologies to the market swiftly.
This news is based on a press release statement from Luna Innovations. The company has cautioned that statements regarding the anticipated timing of filings and compliance plans are forward-looking and subject to risks and uncertainties. Luna has made no commitment to update any forward-looking statements following the date of the release.
In other recent news, Luna Innovations Incorporated has announced significant changes in its board along with an extension from Nasdaq's Listing Qualifications Staff to remain listed on the stock market. Richard Roedel, the Interim Executive Chairman, Interim President, and a member of the Board of Directors, has resigned due to health reasons, with Warren B. Phelps III taking over as the non-executive Chair of the Board. These developments were outlined in a recent SEC filing, ensuring shareholders are informed about significant events.
Luna Innovations has not yet announced a new executive chairman or president to fill the vacancy left by Roedel. Furthermore, the company is set to restate its financial statements for the fiscal year ended December 31, 2022, due to revenue recognition errors, the full impact of which is yet to be determined.
The company has received an extension to file its overdue financial reports with the SEC, with a deadline set for September 11, 2024. Failure to meet this deadline may result in a delisting determination from Nasdaq. Luna Innovations has until June 3, 2024, to submit a compliance plan and regain compliance. These are the recent developments for Luna Innovations.
InvestingPro Insights
As Luna Innovations Incorporated (NASDAQ:LUNA) navigates through its compliance challenges with Nasdaq, the financial health and market performance of the company remain focal points for investors. According to InvestingPro data, Luna's market capitalization stands at $86.22 million, reflecting the scale of the business in its sector. Despite the setbacks indicated by the non-compliance notice, Luna's revenue growth over the last twelve months as of Q3 2023 is reported at 14.31%, suggesting a positive trajectory in sales.
However, the company's P/E ratio, at -38.52, and adjusted P/E ratio for the same period, at -137.17, highlight the market's concerns regarding profitability. This is in line with one of the InvestingPro Tips, which points out that Luna has not been profitable over the last twelve months. The company's stock price has experienced significant volatility, with a one-month price total return as of the date provided showing a decline of -15.17%, which may concern potential investors.
Another InvestingPro Tip worth noting is that analysts have revised their earnings estimates downwards for the upcoming period, which could signal caution regarding the company's near-term financial outlook. For those interested in a deeper analysis, InvestingPro offers a total of 13 tips for Luna Innovations, providing a more comprehensive view of the company's financial health and market expectations.
Luna's stock movements and financial metrics should be considered in the context of the company's innovative technologies and market position. With the next earnings date scheduled for August 26, 2024, stakeholders will be keenly watching for the company's financial updates and strategies to address the compliance issues with Nasdaq.
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