SCOTTSDALE, Ariz. - AMMO, Inc. (NASDAQ:POWW), the parent company of GunBroker.com and a prominent ammunition manufacturer, disclosed receiving a deficiency notification from the Nasdaq Stock Market due to a delay in filing its quarterly financial report. The notice, dated November 20, 2024, states that AMMO failed to file its Form 10-Q for the quarter ending September 30, 2024, on time, violating Nasdaq's Listing Rule 5250(c)(1).
The company had previously submitted a Form 12b-25 on November 13, 2024, notifying the Securities and Exchange Commission (SEC) of the late filing. The delay is attributed to an ongoing independent investigation by a law firm appointed by the company's special committee of the Board of Directors. While the specifics of the investigation are not disclosed, it has prevented the timely completion of the quarterly report.
AMMO has until January 21, 2025, to submit a plan to regain compliance with Nasdaq's listing requirements. If the plan is accepted, Nasdaq may allow up to 180 days from the original due date of the Form 10-Q, extending to May 19, 2025, for the company to file the necessary report and regain compliance.
The company has expressed its intention to file the Form 10-Q as soon as possible and is working diligently toward this goal. However, there is no guarantee that AMMO will be able to meet the compliance requirements within the given timeframe, and failure to do so could result in delisting proceedings. Nonetheless, the notice does not immediately affect the trading of AMMO's common or preferred stock on Nasdaq.
AMMO, Inc., headquartered in Scottsdale, Arizona, is known for producing a variety of ammunition and components for law enforcement, military, sport shooting, and self-defense. It is also the owner of GunBroker.com, the largest online marketplace for firearms and shooting sports industries.
This news is based on a press release statement from AMMO, Inc. and reflects the current status of the company's compliance with Nasdaq listing rules. Investors are advised to monitor this situation as it develops, considering the potential risks associated with the delay in filing and the ongoing investigation.
InvestingPro Insights
As AMMO, Inc. (NASDAQ:POWW) grapples with its Nasdaq compliance issues, recent financial data from InvestingPro sheds light on the company's current position. Despite the filing delay, AMMO's financial health shows some resilience. An InvestingPro Tip reveals that the company holds more cash than debt on its balance sheet, which could provide a financial cushion during this challenging period.
However, the company's recent performance has been mixed. InvestingPro data indicates that AMMO's revenue for the last twelve months as of Q1 2025 stood at $135.5 million, with a concerning year-over-year decline of 14.05%. This downward trend in revenue aligns with the company's current regulatory challenges and may be a factor in the ongoing investigation.
On a more positive note, another InvestingPro Tip suggests that analysts predict the company will be profitable this year. This forecast, if realized, could help AMMO navigate through its current difficulties and potentially strengthen its position with Nasdaq.
For investors seeking a comprehensive understanding of AMMO's financial situation, InvestingPro offers 7 additional tips that could provide valuable insights during this period of uncertainty. These tips, along with real-time metrics, can be crucial for assessing the company's prospects as it works to regain compliance with Nasdaq's listing requirements.
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