Hain Celestial Group Inc. on Sept. 1 acknowledged it was notified by the Nasdaq Stock Market that it could be de-listed from the stock exchange for failing to file an annual report and Form 10-K on time.
The report is for the fiscal year ended June 30. The filing was due, per Nasdaq rules, by Aug. 29. Two weeks earlier, Hain Celestial said it would not be able to make the filing until an independent review of its books is completed.
Questionable accounting issues were made public on Aug. 15, and the company's stock fell 30 percent in the second half of that month as a result. While the company said it may not make its earnings guidance for fiscal 2016, the accounting problems should not affect overall revenue.
Questions also have surfaced over the pay for Chairman and CEO Irwin Simon, who also founded the company. His income averaged of $18 million in the past three years, according to the New York Times, a hefty sum for a company with $2.7 billion in total sales.
The de-listing notification has no immediate effect on the listing of Hain Celestial's common stock on Nasdaq, the company points out. Under the Nasdaq rules, the company has 60 calendar days to submit a plan to regain compliance. If the plan is accepted, Hain Celestial could be granted up to 180 days from the Form 10-K's original due date to regain compliance.
