Will Super Micro Computer stock be delisted from the Nasdaq? Critical deadline looms amid accounting scandal

Investors in Super Micro Computer (Nasdaq: SMCI) may be wondering this week if there is any bottom.

Shares in the storage technology giant continue to plummet on Thursday as a critical deadline that will determine its future as a publicly traded company draws near. As Fast Company reported last week, Super Micro (dba Supermicro) told investors in early November that it was out of compliance with Nasdaq’s listing rules due to its failure to deliver an annual Form 10-K with the U.S. Securities and Exchange Commission (SEC), as required by law.

Supermicro’s news release indicated that it would need to file that form—or come up with a proper compliance plan—within 60 days of receiving notice from Nasdaq on September 17. That would put the deadline at November 16, which is this Saturday. As of Thursday afternoon, the company has not said publicly whether it has submitted a plan to Nasdaq, nor has it filed a 10-K.

We’ve reached out to Supermicro and Nasdaq for comment but have not heard back. Presumably, the company could be delisted if it does not regain compliance, although Supermicro said it will have the opportunity to appeal if Nasdaq doesn’t accept its plan.

SMCI stock fell another 12% on Thursday to under $18 a share as of the time of this writing. Over the past six months, the stock has fallen a head-spinning 77%.

Why is this happening?

The stock’s downward spiral was sparked by a report in August from short-selling firm Hindenburg Research, which alleged serious “red flags” with the company’s accounting. The Wall Street Journal reported the following month that Supermicro was under investigation by the Department of Justice (DOJ).

As if that weren’t bad enough, Supermicro got more bad news in October when its accounting firm, EY, resigned. According to Supermicro, the firm said it was “unwilling to be associated” with the company’s financial statements. Supermicro released a statement saying it disagreed with EY’s decision to quit and was working hard to find a new accounting firm.

All of this has made it difficult for the company to produce routine financial data required by the SEC. In a filing this week, Supermicro reiterated that it would not be able to turn in certain required documents “in a timely manner,” and that it still hadn’t even found an accounting firm to handle its affairs.