Motorcar Parts of America Receives Notice From NASDAQ Due to Delayed Filing of Form 10-Q
21 November 2018 - 8:00AM
Motorcar Parts of America, Inc. (Nasdaq: MPAA) today announced it
received a notice from the NASDAQ Stock Market on November 15, 2018
indicating that the company is not in compliance with NASDAQ
listing rules because its Form 10-Q for its fiscal 2019 second
quarter ended September 30, 2018 was not timely filed. The notice,
which the company expected, was issued in accordance with standard
NASDAQ procedures as a result of the delayed filing. Timely filing
of periodic reports is a requirement for continued listing under
NASDAQ Marketplace Rule 5250(c)(1).
The delay in filing is due to the company’s
inability to timely process the financial information for its
fiscal 2019 second quarter, which is primarily related to a review
of accounting practices associated with the timing of recognizing
certain expenses incurred in connection with new business. These
expenses are primarily allowances for core inventory purchase
obligations at the start of a new business relationship.
The company does not believe this review of the
accounting for new business contracts will affect its liquidity,
operations or strong growth momentum.
The company continues to focus significant
efforts on completing the processing of this information and
expects to file its Form 10-Q for the fiscal 2019 second quarter
ended September 30, 2018 as soon as practicable. Upon completion of
these filings, Motorcar Parts of America will be current in its
financial reporting.
The NASDAQ notice directs the company to submit
a plan by January 14, 2019. The company expects to address
the notice by filing its Form 10-Q and submitting a required
updated compliance plan within such timeframe.
About Motorcar Parts of
America
Motorcar Parts of America, Inc.
is a remanufacturer, manufacturer and distributor of automotive
aftermarket parts -- including alternators, starters, wheel bearing
and hub assemblies, brake master cylinders, brake power boosters,
rotors, brake pads and turbochargers utilized in imported and
domestic passenger vehicles, light trucks and heavy-duty
applications. In addition, the company designs and
manufactures test equipment for performance, endurance and
production testing of alternators, starters, electric motors,
inverters and belt starter generators for both the OE and
aftermarket. Motorcar Parts of America’s products are sold to
automotive retail outlets and the professional repair market
throughout the United States and Canada, with facilities located in
California, Canada, Mexico, Malaysia and China, and administrative
offices located in California, Tennessee, Mexico, Singapore,
Malaysia and Canada. Additional information is available at
www.motorcarparts.com
The Private Securities Litigation Reform Act of
1995 provides a “safe harbor” for certain forward-looking
statements. The statements contained in this press release that are
not historical facts are forward-looking statements based on the
company’s current expectations and beliefs concerning future
developments and their potential effects on the company. These
forward-looking statements involve significant risks and
uncertainties (some of which are beyond the control of the company)
and are subject to change based upon various factors.
Reference is also made to the Risk Factors set forth in the
company’s Form 10-K Annual Report filed with the Securities and
Exchange Commission (SEC) in June 2018 and in its Forms 10-Q filed
with the SEC for additional risks and uncertainties facing the
company. The company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as the result of new
information, future events or otherwise.
CONTACT: Gary S. Maier(310)
471-1288
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