TEL AVIV - HUB Cyber Security Ltd. (NASDAQ:HUBC), an Israeli cybersecurity firm, announced today it will postpone the filing of its annual financial statements for the fiscal year ended December 31, 2023. The company cites the need for additional time to complete the audit process following its recent strategic acquisition of QPoint and ongoing debt restructuring efforts. These developments aim to strengthen HUB's financial stability and operational capabilities.
The delay has resulted in a notice from Nasdaq indicating that HUB is currently not in compliance with the Nasdaq Listing Rule 5250(c)(1). However, this does not immediately impact the listing or trading of HUB's securities on the Nasdaq market. The company will remain listed as long as it continues to meet other listing requirements.
HUB has been granted 60 calendar days, or until July 19, 2024, to submit a plan to regain compliance with Nasdaq's requirements. If the plan is accepted, Nasdaq may allow an extension of up to 180 calendar days from the original due date of the Annual Report, potentially until November 11, 2024. While there is no assurance of acceptance or an extension, HUB remains optimistic about its ability to fulfill these conditions.
Founded in 2017 by veterans of the Israeli Defense Forces' elite intelligence units, HUB specializes in cybersecurity solutions that protect sensitive commercial and government data.
InvestingPro Insights
In light of HUB Cyber Security Ltd.'s recent developments, including the delay in filing its annual financial statements and strategic acquisition, it's pertinent to examine the company's financial health and market performance through the lens of InvestingPro data and tips. HUBC's market capitalization stands at a modest $8.38 million, reflecting a very small player within the cybersecurity sector. The company's P/E Ratio (Adjusted) for the last twelve months as of Q2 2023 is notably negative at -0.1, indicating that investors have concerns about its profitability in the near term.
InvestingPro Tips suggest that HUBC operates with a significant debt burden and is quickly burning through cash, which may be contributing factors to its need for additional time to complete the audit process and ongoing debt restructuring efforts. These factors could be crucial for investors considering the potential risks associated with the company's financial stability. Additionally, the company's stock has experienced significant return over the last week, but it's important to note that it has also faced a steep decline over the past year, with a price total return of -85.45%.
Another key metric to consider is the company's revenue growth, which for the last twelve months as of Q2 2023 is at 4.47%. While this indicates some level of growth, it's juxtaposed with a quarterly revenue decline of -17.92% for Q2 2023. This mixed picture of revenue performance may be a point of concern for potential investors.
For those interested in a deeper analysis, there are currently 13 additional InvestingPro Tips available for HUBC at https://www.investing.com/pro/HUBC. These insights could provide further clarity on the company's financial predicament and market potential. Moreover, readers can utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering access to a wealth of investment data and expert analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.