The Nasdaq stock exchange notified Dentsply Sirona that it was no longer compliant for failing to file its quarterly report.
Dentsply Sirona received written notification from The Nasdaq Stock Market on May 12, 2022, that the company is no longer in compliance with the Nasdaq Listing Rules since the company has not yet filed its quarterly report on Form 10-Q for the period ended March 31, 2022.
Nasdaq Listing Rule 5250(c)(1) requires Nasdaq-listed companies to file all periodic reports in a timely manner. The company has up to 60 days to either cure the deficiency or submit a plan to Nasdaq to show how it intends to regain compliance.
If the plan is accepted, Nasdaq can grant an extension of the grace period for shares of the company’s common stock to remain listed for up to 180 calendar days from the quarterly report’s due date to regain compliance.
This notice from Nasdaq has no immediate effect on the listing of the company’s common stock on Nasdaq.
Dentsply Sirona was unable to file the 10-Q within the prescribed period because the company’s Audit and Finance Committee, together with independent outside counsel, is investigating the company’s use of incentives to sell products to distributors in the third and fourth quarters of 2021.
The audit is also looking into whether the incentives were appropriately accounted for and if the impact of those sales was adequately disclosed in the company’s periodic reports filed with the Commission.
Dentsply Sirona expects to file the quarterly report as soon as practicable.