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LAFAYETTE, COLORADO - urban-gro, Inc. (NASDAQ:UGRO), a professional services and Design-Build firm for Controlled Environment Agriculture (CEA), has received a notice from Nasdaq regarding non-compliance with its listing rules due to delayed financial reporting. The notice, dated May 21, 2025, indicates that urban-gro has not filed its required Quarterly Report for the period ending March 31, 2025, and its Annual Report for the period ending December 31, 2024. According to InvestingPro data, the company’s financial health score stands at a concerning 1.31, labeled as WEAK, with the stock trading near its 52-week low of $0.36, down 76% over the past year.
The Nasdaq Listing Rule 5250(c)(1) mandates that listed companies must file periodic financial reports in a timely manner with the Securities and Exchange Commission (SEC). Despite the notice, there is no immediate impact on the listing of urban-gro’s common stock on the Nasdaq Capital Market.
urban-gro disclosed in an August 14, 2024, filing that due to errors in accounting for deferred tax liabilities from past acquisitions, it had to restate its financial statements for certain previous periods. These restatements were filed by February 19, 2025. Further delays in filing the Form 10-K and Form 10-Q were attributed to the extensive management resources and costs involved in the restatement process, as well as turnover in the finance department. InvestingPro analysis reveals concerning metrics, including a current ratio of 0.74 and significant revenue decline of 17% in the last twelve months. InvestingPro subscribers have access to 18 additional key insights about UGRO’s financial position.
The company has been given until June 16, 2025, to submit a plan to regain compliance with Nasdaq’s listing rules. urban-gro intends to file the overdue Form 10-K as soon as possible and, if necessary, will submit a compliance plan to Nasdaq. If the plan is accepted, Nasdaq may allow up to 180 days from the original filing deadline, or until October 13, 2025, for urban-gro to achieve compliance. Should the plan be rejected, urban-gro will have the opportunity to appeal the decision before a Nasdaq Hearings Panel.
urban-gro specializes in providing architectural, engineering, and construction management solutions to the CEA, industrial, healthcare, and other commercial sectors. The company operates across North America and Europe, focusing on delivering client-centered projects. With a market capitalization of just $4.55 million and mounting financial challenges, investors seeking deeper insights can access the comprehensive Pro Research Report available on InvestingPro, which provides detailed analysis of the company’s operational and financial performance.
The information in this article is based on a press release statement from urban-gro, Inc.
In other recent news, urban-gro, Inc. has announced several significant developments. The company secured a contract to construct a new Fogo de Chão restaurant in Tigard, Oregon, with most of the revenue expected by the third quarter of 2025. Additionally, urban-gro has expanded its partnership with Fogo de Chão by securing contracts for new locations in Murray, Utah, and as a construction manager in Las Vegas, Nevada, and Rancho Cucamonga, California. The revenue from these projects is also anticipated by the third quarter of 2025. In another development, urban-gro has entered into an amendment with Gemini Finance Corp., extending the loan agreement period to January 1, 2026, and adjusting the interest rate to 1.75% per month. The company issued 150,000 shares as an amendment fee. Furthermore, urban-gro has signed a $1.2 million deal with the Muscogee County School District in Georgia to enhance school safety through architectural design services. urban-gro also announced a new contract to design a hospital in the southeastern United States, with phase one valued at approximately $4 million. The majority of the revenue from this hospital project is expected to be recognized within the current year.
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