Faraday Future has received a letter from the Nasdaq Stock Market stating that it is not in compliance with standard procedures due to the delayed filing of a financial report.
Faraday Future, the luxury electric vehicle manufacturer, has a manufacturing plant in Hanford.
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The big picture: Nasdaq informed Faraday Future that the company’s failure to file its annual report on Form 10-K puts it at risk of being delisted from the market.
- Form 10-K., required by the U.S. Securities and Exchange Commission (SEC), provides a comprehensive summary of a company’s financial performance.
- Faraday Future had previously filed Form 12b-25 with the SEC on April 2 and disclosed that it was unable to file Form 10-K on time without unreasonable effort or expense.
- The company plans to file the report by the end of April but cannot predict with certainty when the preparation and filing of the form will be completed.
The backstory: Along with its delay in filing the annual financial report, Faraday Future still faces uncertainty with its listing on Nasdaq because of its low stock price.
- Late last year Nasdaq sent a notice to Faraday Future informing the company that it needs a minimum closing share price of $1 required to maintain its listing.
- Faraday Future underwent a reverse stock split in February to reduce shares from nearly $1.4 billion to over $463 million in an attempt to boost its stock price.
- The company’s stock price hovered around $0.05 to $0.06 on Monday morning.
