Aeries Technology faces Nasdaq compliance issue By Investing.com

NEW YORK – Aeries Technology, Inc. (NASDAQ:AERT), a global professional services and technology consulting firm, is currently addressing a compliance issue with The Nasdaq Stock Market LLC. The company received a notification on Monday, September 5, 2024, concerning its failure to file required periodic financial reports on time.

Specifically, Aeries Technology did not meet the deadline for submitting its Quarterly Report for the quarter ending June 30, 2024, and remains delinquent in filing its Annual Report for the fiscal year ended March 31, 2024. These filings are mandated by Nasdaq Listing Rule 5250(c)(1), which requires timely submission of all periodic reports to the Securities and Exchange Commission (SEC).

The company has disclosed this development in its Form 12b-25 Notification of Late Filing with the SEC on August 15, 2024. In response to the deficiency notice from Nasdaq, Aeries Technology has until September 30, 2024, to present a plan to regain compliance. If the plan is accepted, Nasdaq may offer an extension up to January 13, 2025, for the company to fulfill its filing obligations.

Aeries Technology has communicated its intent to submit a compliance plan and is working to complete and file the overdue reports as soon as possible. However, the company has not provided a definitive timeline for when these reports will be filed.

Founded in 2012, Aeries Technology employs over 1,700 professionals and offers services in technology, business process management, and digital transformation. The company has been recognized as a Great Place to Work, yet it is now focused on resolving its current reporting and compliance challenges with Nasdaq.

This news is based on a recent press release statement from Aeries Technology.

In other recent news, Aeries Technology Inc. has made significant changes to its executive compensation and equity incentive plans. The company’s Board of Directors approved an increase in the total number of Class A ordinary shares authorized under the plan to 11,928,287, known as the New Share Reserve. Additionally, annual limits on awards issued to a single individual under specific sections of the plan have been removed. These recent developments require shareholder approval to take effect.

Aeries Technology has also announced a change in its independent accounting firm, with Manohar Chowdhry & Associates (MCA) replacing KNAV CPA LLP. This move was prompted by the need for more efficient auditing closer to the company’s accounting operations in India. MCA will now audit the company’s financial statements for the fiscal years ended March 31, 2024, and 2023.

The company secured a $5 million investment via private placement, a significant step in its expansion strategy. This funding is expected to play a crucial role in the company’s growth. Lastly, Aeries Technology was recognized with the Great Place to Work Certification, emphasizing its commitment to a conducive work environment.

InvestingPro Insights

As Aeries Technology, Inc. (NASDAQ:AERT) grapples with compliance issues and the aftermath of delayed financial report filings, investors may be weighing the company’s performance and market behavior. A glance at real-time data from InvestingPro reveals a market capitalization of $83.79 million for the company. Despite the challenges, Aeries Technology has demonstrated revenue growth, with a notable increase of 36.94% in the last twelve months as of Q3 2024.

However, the company’s financial health presents a mixed picture. According to an InvestingPro Tip, Aeries Technology’s short-term obligations currently exceed its liquid assets, which could raise concerns about its ability to meet immediate financial commitments. Additionally, the stock has seen a significant decline over the past year, with a one-year total price return of -81.89% as of the latest data. This is consistent with another InvestingPro Tip indicating the stock price often moves in the opposite direction of the market, which may suggest a degree of volatility or idiosyncratic risk specific to the company.

Investors considering Aeries Technology should be aware that the company operates with a moderate level of debt and has not been profitable over the last twelve months. The lack of profitability is reflected in the negative price-to-earnings (P/E) ratios, with an adjusted P/E ratio of -5.78 as of Q3 2024. It’s also worth noting that Aeries Technology does not pay a dividend, which could be a factor for income-focused investors.

For those looking to delve deeper into the financials and future prospects of Aeries Technology, there are additional InvestingPro Tips available at https://www.investing.com/pro/AERT, which may provide further insights into the company’s performance and market standing.

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