Zoom: Notice Of Delisting Or Failure To Satisfy A Continued Listing Rule Or Standard; Transfer Of Listing
The following excerpt is from the company's SEC filing
On April 14, 2014, Zoom Technologies, Inc. (the "Company") received a letter from The NASDAQ Stock Market
("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 Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission (the "SEC") on
March 27, 2014, the Company has regained compliance with the audit committee requirements for continued listing set forth in Nasdaq Listing
On April 15, 2014, the Company received a
Nasdaq Staff Deficiency Letter (the "Deficiency
Letter") indicating that, as a result of the Company not timely filing its Annual Report on Form 10-K for the fiscal year
ended December 31, 2013 (the "Annual Report"), 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 be able to meet that deadline.
The Company intends to separately issue a press release notifying the public of the Deficiency Letter promptly after the filing of this Current Report on Form 8-K.
During the fourth quarter of the year ended December 31, 2013, management determined that the Company's former
50.1% equity interest investment in Portables Unlimited, LLC ("Portables"), was incorrectly accounted for using the consolidation
method. The Company will prospectively correct errors in its consolidated financial position as of December 31, 2012, and its results of
operations, changes in stockholders' equity, and cash flows for the year then ended. The Company's previous consolidated financial
statements overstated the Company total assets and total liabilities by including all of the assets and liabilities of Portables; additionally, the
Company's prior results of operations included all revenues, cost of sales, operating expenses, and net other income/(expenses) from Portables.
Results of operations from Portables will be disaggregated from the Company's consolidated results of operations on an individual line item
basis, and will be carried as part of investment income (loss) with the Company's other equity method investments. Net loss for the year
ended December 31, 2012, and related loss per share are unaffected by these restatements. Net increase in cash for the period ended
December 31, 2012 will be lower than as stated in prior fillings, as the Company's ending cash position on its consolidated balance sheet at
December 31, 2012 will not include cash in Portables' accounts.
Given that the Company has completely written off its investment in Portables as July 15, 2013, and the net loss, and
related loss on a per share basis for the year ended December 31, 2012 remained unchanged, the Company has determined that the effect of
these corrections was not considered material to any of the Company's previously reported financial statements, and the Company intends to
make these corrections in its upcoming Annual Report for the fiscal year ended December 31, 2013 and in future filings with the SEC.
The Company's delinquency in filing its Annual Report for the fiscal year ended December 31, 2013, as in Item 3.01
above, is related to the unexpected contribution of time necessary to recast and review its prior financial statements for the above-referenced
changes. The Company expects to complete its Annual Report shortly, and make best efforts to regain compliance with Nasdaq's continued
listing requirements by filing a plan that includes improved internal controls over financial reporting in order to mitigate the risk of such issue
occurring again in the future.
Date: April 18, 2014
By: /s/ Patrick Wong
Chief Financial Officer and Secretary
The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here.
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Other recent filings from the company include the following:
Notification of the removal from listing and registration of matured, redeemed or retired securities - Sept. 29, 2014
Zoom Technologies Announces Intent To Voluntarily Delist From Nasdaq - Sept. 17, 2014