PHOENIX, AZ - Mesa Air Group, Inc. (NASDAQ:MESA), the parent company of Mesa Airlines, disclosed today that it has received a formal notice from the Nasdaq Stock Market due to a delay in filing its quarterly financial report. The notice, dated August 16, 2024, indicates that Mesa Air has not complied with Nasdaq's Listing Rule 5250(c)(1), which requires timely filing of financial reports with the Securities and Exchange Commission (SEC).
The company was unable to file its Form 10-Q for the quarter ended June 30, 2024, on time. However, Mesa Air clarified that the delay is not related to any anticipated restatements of financial statements or disagreements with its auditors. The receipt of the notice does not immediately impact the listing or trading of Mesa Air's securities on the Nasdaq Capital Market.
Under Nasdaq's guidelines, Mesa Air has 60 days from the receipt of the notice to submit a plan to regain compliance. If the plan is accepted, Nasdaq may allow the company up to 180 days from the original due date of the Form 10-Q, or until February 10, 2025, to file the required report and regain compliance.
Mesa Air has expressed confidence in its ability to complete and file the overdue Form 10-Q well before the 60-day deadline, with the intention of returning to compliance with Nasdaq's Listing Rule. The airline, headquartered in Phoenix, Arizona, operates a fleet of 80 aircraft and provides regional passenger service to various destinations across the United States and neighboring countries.
This announcement was made in accordance with Nasdaq Listing Rule 5810(b), which mandates prompt disclosure of a deficiency notification. Mesa Air has emphasized that it is working diligently on the matter and expects to resolve the filing delay shortly. The information is based on a press release statement from Mesa Air Group, Inc.
In other recent news, Mesa Air Group has been the focal point of several noteworthy developments. The company's Annual Meeting of Shareholders saw the election of six directors to serve a one-year term and approved the compensation of the company's executive officers. The shareholders also ratified the selection of Marcum LLP as Mesa Air Group's independent registered public accounting firm for the fiscal year ending September 30, 2024.
Mesa Air Group also regained compliance with the Nasdaq's minimum bid price requirement after maintaining a closing bid price of at least $1.00 per share for 10 consecutive business days. This achievement followed a previous notification from Nasdaq, which indicated that Mesa's stock had fallen below the minimum bid price.
In addition, Mesa Air Group received a notice from Nasdaq regarding non-compliance with listing rules due to delayed filing of its financial reports. The company must file the overdue Form 10-Qs by August 12, 2024, to regain compliance, but the delays are not due to any anticipated restatements of financial statements or disagreements with auditors.
These are among the recent developments surrounding Mesa Air Group. Investors and stakeholders should note these details, which are based on press release statements from the company.
InvestingPro Insights
Mesa Air Group's recent challenges with Nasdaq compliance come at a time when the company is grappling with significant financial pressures. According to InvestingPro data, Mesa Air Group's market capitalization stands at a modest $52.05 million, reflecting the market's valuation of the company. The financial metrics also reveal a negative P/E ratio of -0.43 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at -0.63, indicating that investors are concerned about the company's profitability.
In terms of balance sheet health, one of the InvestingPro Tips highlights that Mesa Air operates with a significant debt burden, which may explain the company's trouble in making interest payments on its debt. This is particularly concerning given the company's negative return on assets of -13.86% in the last twelve months as of Q2 2024, which suggests that Mesa Air is struggling to generate earnings from its asset base.
On a positive note, another InvestingPro Tip points out that net income is expected to grow this year, offering a glimpse of potential financial improvement. This is coupled with the company's stock trading at a low Price / Book multiple of 0.34, which could attract value investors looking for underpriced shares relative to the company's book value.
Investors interested in a deeper analysis of Mesa Air Group's financial health and stock performance can find additional insights with InvestingPro, which provides a comprehensive set of InvestingPro Tips for a more informed investment decision. There are currently 16 additional tips available for Mesa Air Group at https://www.investing.com/pro/MESA.
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