Supermicro was able to reach an agreement with the bank on filing an annual report, but was unable to reach an agreement with Nasdaq

Supermicro (Super Micro Computer, SMCI) announced changes to its existing loan agreement with Cathay Bank. One of the main points is the extension of the deadline for submitting financial statements. As disclosed on Form 8-K to the SEC, the filing date of audited financial statements for fiscal 2024 ending June 30, 2024 has been postponed from October 28 to December 31, 2024. Similarly, the reporting period for the fiscal quarter ending September 30, 2024 has been extended from November 29 to December 31, 2024.

The new agreement also stipulates that Supermicro must maintain at least $150 million in available cash reserves at all times. This requirement is intended to ensure the preservation of liquidity, which is critical to the company’s ongoing operations and financial stability. This strategic move is said to reflect Supermicro’s commitment to maintaining the company’s strong financial health while adapting to changing business needs.

Back in August, Supermicro delayed filing its annual report following a Hindenburg Research report alleging alleged accounting fraud and corporate governance malfeasance. The transfer was allegedly related to the decision to conduct a full internal review. The submission of Supermicro’s audited annual report within the deadlines agreed with the bank is now in question due to the refusal of auditors Ernst & Young to work with the company.

The Nasdaq Stock Exchange warned Supermicro of possible delisting if the company does not file its annual report by November 16. NVDIA is rumored to be restructuring Supermicro’s orders to avoid potential supply chain issues. Supermicro is one of the five largest buyers of NVIDIA chips.