Business Context and Reporting Period
Company: Broadway Financial Corporation (Parent of Broadway Federal Bank, f.s.b.)
Filing Date: August 20, 2012 (Reported Event Date)
Context: The Company received a deficiency letter from Nasdaq regarding non-compliance with Listing Rule 5250(c)(1) due to the failure to timely file its Form 10-Q for the second quarter of 2012.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document explicitly states that the Company is unable to complete its financial statements for the quarter ended June 30, 2012, and that previously issued financial results for the year ended December 31, 2011, and the first quarter of 2012, should no longer be relied upon.
Material Changes and Restatements
- Restatement Requirement: Management concluded that the consolidated financial statements for the year ended December 31, 2011, and the related discussion in the Form 10-K must be restated.
- Q1 2012 Revision: The previously issued earnings release and summary financial statements for the first quarter of 2012 must be revised and are no longer reliable.
- Reporting Delay: These restatement requirements caused the delay in filing the second quarter 2012 Form 10-Q.
Outlook, Risks, and Management Commentary
- Nasdaq Compliance Plan: The Company must submit a plan to Nasdaq within 60 calendar days (by October 19, 2012) to regain compliance.
- Extension Possibility: If the plan is accepted, Nasdaq may grant an exception of up to 180 calendar days from the original due date, extending the deadline to November 19, 2012.
- Expected Filing Dates: The Company expects to file its first quarter 2012 Form 10-Q by September 30, 2012.
- Risk of Delisting: Failure to regain compliance with Listing Rule 5250(c)(1) could result in the delisting of the Company's securities from the Nasdaq Small-Cap Market.
Investor Verification Checklist
- Verify the status of the restatement for the 2011 Annual Report (Form 10-K).
- Monitor the submission and acceptance of the Nasdaq compliance plan by October 19, 2012.
- Confirm the filing of the revised Q1 2012 Form 10-Q by the expected date of September 30, 2012.
- Review the final Q2 2012 Form 10-Q once filed to assess the impact of the restatements on current financial health.