KIT delists from NASDAQ

KIT digital says its common stock will be delisted from The NASDAQ Stock Market effective at the opening of business on December 21st 2012. Trading of the Company’s common stock is currently subject to a trading halt, which the Company does not expect to be lifted prior to the delisting of the common stock. The delisting is precipitated by the Company’s determination not to pay certain fees based on its current circumstances and outlook, which include:

– The previously disclosed listing violation for its failure to timely file its third quarter Form 10-Q

– Likely delisting in early 2013 due to failure to hold a 2012 annual meeting

– The possible failure to become compliant in SEC reporting in sufficient time to avoid delisting.

The Company does not intend to request an appeal hearing regarding NASDAQ’s delisting determination.

The company has dismissed Grant Thornton LLP as the Company’s independent auditor. The Company is in the process of engaging a new audit firm and anticipates an announcement about the appointment of a new auditor in the near future.

KIT digital is undertaking a restatement of the Company’s historical financial statements for the years ended December 31, 2009, 2010 and 2011, each of the three quarters in 2009, 2010 and 2011, and each of the quarters ended March 31, 2012 and June 30, 2012. The restatement, once completed, will be subject to audit by the Company’s independent public accounting firm.

 

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