Zoom Technologies - Late Filing of 2013 Annual Report
BEIJING, April 18, 2014 (GLOBE NEWSWIRE) -- Zoom Technologies, Inc.
(Nasdaq:ZOOM) (the "Company") today announced it is late in filing its Annual
Report on Form 10-K for the fiscal year ended December 31, 2013 (the "2013
Annual Report") with the US Securities and Exchange Commission. The primary
cause of the delay in filing its 2013 Annual Report is attributable to a
correction of an error in the application of accounting principles related to
the Company's former 50.1% investment in Portables Unlimited, LLC. While the
Company has already disposed of its investment, the Company believes it
necessary to properly account for its prior investment; therefore, the Company
will prospectively, in its forthcoming 2013 Annual Report, revise the figures
for its financial position as of December 31, 2012 and related results of
operations and cash flows for the year then ended. Net income and loss per
share in 2012 were unaffected by these corrective revisions.
The Company contacted Nasdaq as soon as it determined that it would not be
able to timely file the 2013 Annual Report; on April 15, 2014, the Company
received a Nasdaq Staff Deficiency Letter indicating that, as a result of the
Company not timely filing its 2013 Annual Report on Form 10-K, the Company
failed to comply with the periodic filing requirements for continued listing
set forth in Rule 5250(c)(1) of the Nasdaq Listing Rules. In accordance with
Nasdaq Listing Rule 5810(c)(2), Nasdaq has provided the Company until June 14,
2014 to submit a plan to regain compliance. The Company expects to file its
2013 Annual Report in short order, and fully expects to be able to meet the
June 14, 2014 deadline.
Also, on April 14, 2014, the Company received a letter from Nasdaq that it had
determined that, in light of the Company's appointment of Xinyue Jasmine
Geffner on March 26, 2014, as previously disclosed in the Company's Current
Report on Form 8-K filed with the Securities and Exchange Commission on March
27, 2014, the Company has regained compliance with the audit committee
requirements for continued listing set forth in Nasdaq Listing Rule
For further details regarding the error mentioned above, please refer to the
Company's Form 8-K filed with the U.S. Securities and Exchange Commission on
April 18, 2014.
CONTACT: Investor Contact:
Zoom Technologies, Inc.
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