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Temporary Nasdaq reprieve for Design Within Reach Inc
19 Oct '06
2 min read
Design Within Reach Inc announced that the Nasdaq Listing Qualifications Panel has granted the Company continued listing on The Nasdaq Global Market provided that the Company files its quarterly report on Form 10-Q for the period ended July 1, 2006 and any restatements of prior periods that may be required by November 24, 2006.
The Company previously reported that it received notice on August 17, 2006 from The Nasdaq Stock Market Inc Listing Qualifications Staff that the Company's securities were subject to potential delisting from The Nasdaq Global Market as of August 28, 2006 due to the Company's failure to file its quarterly report on Form 10-Q for the quarter ended July 1, 2006 on a timely basis.
As permitted by Nasdaq rules, Design Within Reach requested a hearing before a Nasdaq Listing Qualifications Panel to review the Nasdaq Staff Determination and request additional time to file its quarterly report on Form 10-Q.
Design Within Reach's late filing of its quarterly report on Form 10-Q for the quarter ended July 1, 2006 is due to turnover in management in the finance department and the previously disclosed material weaknesses in internal controls over financial reporting, which resulted in the Company's inability to complete the reconciliation of a difference between the accrued inventory sub-ledger and the general ledger.
The difference between the general ledger and the sub-ledger arose in connection with the implementation of the Company's IMARC inventory and sales system and inadequate training of finance personnel with respect to changes in procedures necessitated by the change in systems.
The Company's new management is devoting intense effort and resources to completing the accrued inventory account reconciliation and all other matters necessary so that its Form 10-Q for the quarter ended July 1, 2006 can be filed. While Design Within Reach believes it will be able to satisfy these requirements, there can be no assurances that it will be able to do so.
The Company previously reported that it received notice on August 17, 2006 from The Nasdaq Stock Market Inc Listing Qualifications Staff that the Company's securities were subject to potential delisting from The Nasdaq Global Market as of August 28, 2006 due to the Company's failure to file its quarterly report on Form 10-Q for the quarter ended July 1, 2006 on a timely basis.
As permitted by Nasdaq rules, Design Within Reach requested a hearing before a Nasdaq Listing Qualifications Panel to review the Nasdaq Staff Determination and request additional time to file its quarterly report on Form 10-Q.
Design Within Reach's late filing of its quarterly report on Form 10-Q for the quarter ended July 1, 2006 is due to turnover in management in the finance department and the previously disclosed material weaknesses in internal controls over financial reporting, which resulted in the Company's inability to complete the reconciliation of a difference between the accrued inventory sub-ledger and the general ledger.
The difference between the general ledger and the sub-ledger arose in connection with the implementation of the Company's IMARC inventory and sales system and inadequate training of finance personnel with respect to changes in procedures necessitated by the change in systems.
The Company's new management is devoting intense effort and resources to completing the accrued inventory account reconciliation and all other matters necessary so that its Form 10-Q for the quarter ended July 1, 2006 can be filed. While Design Within Reach believes it will be able to satisfy these requirements, there can be no assurances that it will be able to do so.
Design Within Reach Inc
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