Nasdaq issued a letter warning us about the delay in submitting its earnings report, but has not yet stated whether it will accept the compliance plan

SMCI recently received a notice from the Nasdaq Stock Exchange due to the late submission of its second and third quarterly reports for 2024, stating that the company did not comply with clause 5250(c)(1) of the Listing Rules. The letter pointed out that the company failed to comply with Nasdaq Listing Rules 5250 (c)(1), which requires companies to submit reports to the U.S. Securities and Exchange Commission (SEC) in a timely manner.The notice letter was issued due to the company's delay in submitting its first quarterly report for fiscal year 2025 (Form 10-Q) and its continued delay in submitting its annual report for fiscal year 2024 (Form 10-K).According to regulations, Form 10-K for 2024 should be filed on August 29, 2024, and Form 10-Q for the first quarter of 2025 should be filed on November 12, 2024.The company submitted delay notices (Forms 12b-25) on August 30, 2024 and November 13, 2024, respectively, on Form 10-K for 2024 and Form 10-Q for the first quarter of 2025.

Stock prices plummet, multiple crises hit confidence

Dragged down by scandals and delayed earnings reports, SuperMicro's share price fell 8.74% yesterday to close at US$25.80 per share, and has dropped nearly 90% recently.The main reasons for this crisis include:

• Allegations of accounting manipulation: Short-selling firm Hindenburg Research accused Supermicro of accounting manipulation, which greatly increased market doubts.
• Accountant changes: Former co-accountant Ernst & Young resigned in October, further exacerbating the problem of late submission of financial statements.The company appointed BDO USA as its new independent accountant on November 18 in an attempt to stabilize the situation.

Core challenges remain unresolved

The analysis pointed out that USMicro currently faces three major challenges:

• Profits deteriorated: The profitability of core businesses continues to decline, and the pressure has doubled.
• Short seller attack: Investigations by short sellers such as Hindenburg not only damage the image, but also bring legal and financial pressure.
• Financial reporting delays and crisis of trust: Financial reporting deadlines have been repeatedly missed, leaving investors with doubts about the company's integrity.