- Company Works to File its Delinquent Quarterly
Reports for 2023 as it Continues its Business Transition Plan
Including Cost-Cutting and Streamlining its Corporate Structure
-
TUCSON,
Ariz., Dec. 7, 2023 /PRNewswire/ -- COMSovereign
Holding Corp. (NASDAQ: COMS and COMSP) ("COMSovereign" or the
"Company"), a U.S.-based developer of 4G LTE Advanced and 5G
communication systems and solutions, announced the filing of its
annual report on Form 10-K for the year ended December 31, 2022.
"When I joined the Company a year ago, we developed and
implemented a comprehensive business transition designed to address
the significant operational and accounting challenges COMSovereign
faced. Foremost among these challenges was a complex portfolio of
16 operating units, each of which required extensive, individual
audits and appraisal of goodwill and intangibles. That is why the
filing of the 10-K is just one of the many accomplishments our team
has achieved as we work to move the business forward," said
David Knight, CEO and President of
COMSovereign. "Importantly, in 2023, we have successfully
transformed the business, creating a single, focused, and unified
reporting entity that is better able to support our core wireless
connectivity and aerial platform businesses. It is this integrated
and streamlined focus which will be a key enabler for us as we
continue serving the needs of our customers and partners today and
into the future," stated David
Knight.
Business Transition Achievements and Recent
Highlights
The Company has successfully completed a number
of activities under its business transition plan including:
- Continued product sales and support of new and existing
customers and expanded is partner network, including the recent
deployment of Fastback's Intelligent Backhaul Radios Deployed at
the nation's leading travel stop network and new a reseller
agreement with SIFF.IO to provide enhanced wireless network
monitoring and compliance software-as-a-service capability.
- The sale and disposition of certain non-core assets,
streamlining and re-focusing its operations, reducing annual
G&A and overhead expenses including a 75% reduction in
headcount.
- Greatly simplified the Company's operating structure,
significantly eliminating complexities and inefficiencies,
successfully consolidating the business into a single reporting
entity in 2023, eliminating many of the challenges which caused the
delayed in its financial reporting.
"With the filing of our 10-K behind us, we are committed to a
goal of completing our outstanding quarterly reports for the first,
second and third quarters of 2023 as soon as possible as we
continue our work to ultimately return the Company to a
current-filer status. As we approach the start of 2024, our team
continues to focus on supporting the needs of our customers and on
the ways we can best maximize the value of our product portfolio,
technologies, and intellectual property. We anticipate updating our
shareholders on our planned developments early next year as we
position the Company for continued progress," added Mr. Knight.
As announced on October 20, 2023,
the Company received notice from the Nasdaq Listing Qualifications
Staff (the "Staff") indicating that the Staff had determined to
delist the Company's securities from Nasdaq unless the Company
timely requests a hearing before the Nasdaq Hearings Panel (the
"Panel") for its non-compliance with the filing requirement set
forth in Nasdaq Listing Rule 5250(c)(1) because it had not yet
filed its Form 10-K for the year ended December 31, 2022, and Forms
10-Q for the periods ended March 31, 2023, and June 30, 2023. The
Panel has granted the Company's request for a hearing at which it
will present its plan to evidence compliance with Nasdaq's filing
requirements and other matters. The Company is currently addressing
its non-compliance with Nasdaq's timely quarterly filings due to
the delayed completion of its Form 10-K Annual Report.
For more information about COMSovereign, please visit
www.COMSovereign.com and connect with us on Facebook and
Twitter.
About COMSovereign Holding Corp.
COMSovereign Holding
Corp. (Nasdaq: COMS) has assembled a portfolio of communications
technology companies that enhance connectivity across the entire
data transmission spectrum. Through strategic acquisitions and
organic research and development efforts, COMSovereign has become a
U.S.-based communications provider able to provide 4G LTE Advanced
and 5G telecom solutions to network operators and enterprises. For
more information about COMSovereign, please visit
www.COMSovereign.com.
Forward-Looking Statements
Certain statements in this
press release that are not historical facts are forward-looking
statements that reflect management's current expectations,
assumptions, and estimates of future performance and economic
conditions, and involve risks and uncertainties that could cause
actual results to differ materially from those anticipated by the
statements made herein. Forward-looking statements are generally
identifiable by the use of forward-looking terminology such as
"believe," "expects," "may," "looks to," "will," "should," "plan,"
"intend," "on condition," "target," "see," "potential,"
"estimates," "preliminary," or "anticipates" or the negative
thereof or comparable terminology, or by discussion of strategy or
goals or other future events, circumstances, or effects. Further
information relating to factors that may impact the Company's
results and forward-looking statements are disclosed in the
Company's filings with the SEC. The forward-looking statements
contained in this press release are made as of the date of this
press release, and the Company disclaims any intention or
obligation, other than imposed by law, to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Contacts:
Steve Gersten, Director of
Investor Relations
COMSovereign Holding Corp.
813-334-9745
investors@comsovereign.com
and
Media Relations for COMSovereign Holding Corp.:
Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net
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SOURCE COMSovereign Holding Corp.