Zoom Technologies - Late Filing of 2013 Annual Report
April 18 2014 - 4:00PM
Zoom Technologies, Inc. (Nasdaq:ZOOM) (the "Company") today
announced it is late in filing its Annual Report on Form 10-K for
the fiscal year ended December 31, 2013 (the "2013 Annual Report")
with the US Securities and Exchange Commission. The primary cause
of the delay in filing its 2013 Annual Report is attributable to a
correction of an error in the application of accounting principles
related to the Company's former 50.1% investment in Portables
Unlimited, LLC. While the Company has already disposed of its
investment, the Company believes it necessary to properly account
for its prior investment; therefore, the Company will
prospectively, in its forthcoming 2013 Annual Report, revise the
figures for its financial position as of December 31, 2012 and
related results of operations and cash flows for the year then
ended. Net income and loss per share in 2012 were unaffected by
these corrective revisions.
The Company contacted Nasdaq as soon as it determined that it
would not be able to timely file the 2013 Annual Report; on April
15, 2014, the Company received a Nasdaq Staff Deficiency Letter
indicating that, as a result of the Company not timely filing its
2013 Annual Report on Form 10-K, the Company failed to comply with
the periodic filing requirements for continued listing set forth in
Rule 5250(c)(1) of the Nasdaq Listing Rules. In accordance with
Nasdaq Listing Rule 5810(c)(2), Nasdaq has provided the Company
until June 14, 2014 to submit a plan to regain compliance. The
Company expects to file its 2013 Annual Report in short order, and
fully expects to be able to meet the June 14, 2014 deadline.
Also, on April 14, 2014, the Company received a letter from
Nasdaq that it had determined that, in light of the Company's
appointment of Xinyue Jasmine Geffner on March 26, 2014, as
previously disclosed in the Company's Current Report on Form 8-K
filed with the Securities and Exchange Commission on March 27,
2014, the Company has regained compliance with the audit committee
requirements for continued listing set forth in Nasdaq Listing Rule
5605(c)(2).
For further details regarding the error mentioned above, please
refer to the Company's Form 8-K filed with the U.S. Securities and
Exchange Commission on April 18, 2014.
CONTACT: Investor Contact:
Investor Relations
Zoom Technologies, Inc.
+86-10-5935-9576
ir@zoom.com