KIT digital, Inc. Announces Receipt of Notice From NASDAQ

KIT digital, Inc. Announces Receipt of Notice From NASDAQ 
NEW YORK, NY -- (Marketwire) -- 12/10/12 --   KIT digital, Inc.
(NASDAQ: KITD), a leading video management software and services
company, announced today that it has received notice from The NASDAQ
OMX Group ("Nasdaq") that, because the Company has not yet filed its
Quarterly Report on Form 10-Q for the period ended September 30, 2012
(the "10-Q") with the Securities and Exchange Commission (the "SEC"),
the Company no longer complies with the continued listing
requirements under Nasdaq Marketplace Rule 5250(c)(1). 
As previously reported by the Company in its Notification of Late
Filing on Form 12b-25, filed with the SEC on November 21, 2012, the
Company was unable to file the 10-Q within the prescribed period due
to restatement of certain historical financial statements. As
previously disclosed, the restatement is due to accounting errors and
irregularities primarily related to recognition of revenue related to
certain perpetual software license agreements entered into by the
prior management team in 2010 and 2011. These errors and
irregularities were discovered in connection with the Audit
Committee's previously disclosed investigation of certain
transactions that resulted in impairment charges. The Audit Committee
has also determined that certain transactions entered into by the
Company under the prior management team during fiscal years ended
December 31, 2008 through 2011 were related party transactions and
that additional disclosure with respect to those transactions should
have been included in the footnotes to the relevant financial
statements. Because of the timing of the completion of the Audit
Committee investigation and the Company's ongoing review and
investigation of certain transactions, the Company requires
additional time to complete an analysis of the accounting treatment
for the software licenses and to determine the extent of the
corrections that may be required to its historical financial
statements. 
The Company is required to submit a plan to regain compliance with
Nasdaq's requirements for continued listing, and, under the
discretionary authority under Nasdaq Marketplace Rule 5101, in order
to expedite the review process, Nasdaq is requiring that the plan
must be
 submitted no later than December 18, 2012. If Nasdaq accepts
the plan submitted by the Company, Nasdaq can grant an exception of
up to 180 calendar days from the due date of the 10-Q to regain
compliance. The Company intends to submit to Nasdaq, on or before
December 18, 2012, a plan to regain compliance with Nasdaq's
requirements for continued listing and other requested supplemental
information. There can be no assurance that the Company will
successfully regain compliance with Nasdaq listing requirements. 
If Nasdaq does not accept the Company's plan, Nasdaq will provide
notice that the Company's common stock will be subject to delisting.
The Company would have the right to appeal a determination to delist
its common stock, and the common stock would remain listed on the
Nasdaq Global Select Market until the completion of the appeal
process. 
Important Caution Regarding Forward-Looking Statements  
This report contains certain "forward-looking statements." These
statements can be identified by the use of words or phrases such as
"believes," "estimates," "expects," "intends," "anticipates,"
"projects," "plans" and variations of these words or similar words.
Important risks, uncertainties and other important factors that could
cause actual results to differ materially include, among others: the
risk that additional information may become available in preparing
and auditing the financial statements that would require the Company
to make additional corrections, the time and effort required to
complete the restatement of the financial statements, the
ramifications of the Company's potential inability to timely file
future periodic and other reports with the SEC, including potential
delisting of the Company's common stock on Nasdaq and the risk of
litigation or governmental investigations or proceedings relating to
these matters. Certain risks and uncertainties related to the
Company's business are or will be described in greater detail in the
Company's filings with the SEC. Except as required by applicable law,
the Company is not under obligation to (and expressly disclaims any
such obligation to) update its forward-looking statements whether as
a result of new information, future events or otherwise. 
About KIT digital, Inc.
 KIT digital (NASDAQ: KITD) is a leading
video management software and services company. Cosmos and Cloud, the
Company's video asset management systems, enable leading broadband
media companies to produce, manage and deliver multiscreen
socially-enabled video experiences to audiences wherever they are.
KIT digital services nearly 2,500 clients in 50+ countries including
some of the world's biggest brands, such as Airbus, The Associated
Press, AT&T, BBC, BSkyB, Disney-ABC, Google, HP, Mediaset, MTV, News
Corp, RCS Media Group, Sky Deutschland, Sky Italia, Telecom
Argentina, Telecom Italia, Telefonica O2, Universal Studios, Verizon,
Vodafone, VRT and Volkswagen. KIT digital maintains headquarters in
New York City and offices in more than a dozen countries around the
world. Visit the company at www.kitd.com. 
KIT digital Media Contact:
Werbayne McIntyre
Director, Marketing
Tel. +44 1904 438000 
Mobile +44 7590 554 845
werbayne.mcintyre@kit-digital.com 
KIT digital Investor Contact:
Murray Arenson
Managing Director, Financial Strategy
Tel. +1-646-553-4900
Murray.Arenson@kit-digital.com 
 
 
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