TAMPA, FL - Upexi, Inc. (NASDAQ:UPXI), a diversified brand owner and aggregator, announced today that it has received a notification from Nasdaq regarding non-compliance with listing requirements due to a delay in filing its quarterly financial report. The company, which operates in sectors including health, wellness, and beauty, is addressing the issue and expects to regain compliance by filing the required Form 10-Q before the end of June.
On Monday, Nasdaq informed Upexi that it had not met the filing deadline for its financial statements for the quarter ending March 31, 2024. The delay has triggered a notice of non-compliance with Nasdaq's continued listing rules. Upexi has been given 60 days to submit a plan to regain compliance. If Nasdaq accepts the plan, Upexi could be granted an extension of up to 180 days from the original filing deadline, or until December 11, 2024, to file its 10-Q and return to compliance.
Upexi's management has been in communication with Nasdaq and is confident that the filing will occur before June 30, 2024, which would negate the need for a compliance plan. The notice from Nasdaq does not currently affect the trading of Upexi's common stock on the market.
The company, which focuses on acquiring and scaling profitable Amazon (NASDAQ:AMZN) and eCommerce businesses, emphasizes the growth of its customer database as a key factor in its year-over-year sales and profit increases. Upexi's strategy includes driving organic growth and leveraging corporate synergies to reduce costs.
In other recent news, Upexi, Inc. has made significant strides in streamlining its operations, a move projected to cut annual operating expenses by $2 to $3 million. Alongside these cost-saving efforts, the company is actively exploring strategic alternatives to boost shareholder value, including potential acquisitions, mergers, asset sales, and licensing agreements. To facilitate this process, Upexi is engaging the services of an investment bank.
The company is also prioritizing debt reduction and maintaining profitability in its core business areas, with plans for future expansion. As part of its financial transparency, Upexi has appointed GBQ Partners LLC to audit its financial statements for the fiscal years ending June 30, 2023, and 2024.
InvestingPro Insights
In light of Upexi's recent challenges with Nasdaq listing requirements, investors may be seeking additional context on the company's financial health and market position. According to real-time data from InvestingPro, Upexi is operating with a market capitalization of $9.73 million, which is reflective of the company's size within the health, wellness, and beauty sectors. Despite a notable revenue growth of 76.13% in the last twelve months as of Q2 2024, the company is also grappling with significant challenges, as indicated by a negative price-to-earnings (P/E) ratio of -0.44. This metric often suggests that investors are wary of the company's future earnings potential.
InvestingPro Tips shed further light on the situation: Upexi is currently trading at a low Price / Book multiple of 0.37, which might attract investors looking for potentially undervalued stocks. However, it's important to note that analysts are not expecting the company to turn a profit this year, and the company has been quickly burning through cash. Additionally, the stock price has seen a substantial decline over the past year, with a 1-year price total return of -80.78%, indicating a period of significant investor skepticism.
For investors considering Upexi as a potential addition to their portfolios, these insights might be crucial in making an informed decision. It is also worth noting that there are more InvestingPro Tips available that can provide deeper analysis into Upexi's financial standing and market performance. For those interested in accessing these additional tips, visit https://www.investing.com/pro/UPXI and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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