Business Context and Reporting Period
This Form 6-K filing by National Energy Services Reunited Corp. (NESR) covers the month of May 2022, with the report dated May 11, 2022. The filing addresses a regulatory compliance issue regarding the company's listing status on the Nasdaq Capital Market.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on regulatory compliance and reporting delays rather than financial performance data.
Material Changes and Compliance Status
- Nasdaq Non-Compliance Notice: On May 6, 2022, NESR received a notice from Nasdaq indicating non-compliance with Listing Rule 5250(c)(1) due to the failure to timely file its annual report on Form 20-F for the year ended December 31, 2021.
- Reason for Delay: The delay is attributed to the need for additional time to complete a restatement of consolidated financial statements for the fiscal years ended December 31, 2018, 2019, and 2020.
- Current Listing Status: The notice has no immediate impact on the listing; securities continue to trade on Nasdaq pending compliance with other requirements.
Guidance, Outlook, and Management Commentary
Management has submitted a Form 12b-25 on May 3, 2022, stating that filing the Form 20-F by the prescribed due date would require unreasonable effort and expense. The company is required to submit a plan to regain compliance by July 5, 2022. If accepted, Nasdaq may grant up to 180 calendar days from the original due date, extending the deadline to October 31, 2022. Management states it is working diligently to complete the Form 20-F as soon as possible.
Investor Verification Checklist
- Verify the status of the financial restatement for fiscal years 2018, 2019, and 2020.
- Monitor the submission and acceptance of the compliance plan by the July 5, 2022 deadline.
- Confirm the final filing date of the Form 20-F for the year ended December 31, 2021, to ensure it occurs before the October 31, 2022 potential deadline.
- Review any subsequent communications regarding the risk of delisting if the compliance plan is rejected or deadlines are missed.