The Nasdaq stock exchange has given Charlotte-based Swisher Hygiene another extension after threatening to stop listing its stock, as the company continues to work through an audit of its prior financial statements.
Swisher has said that it needs to restate its financial results from previous years to disclose millions of dollars in additional losses, and the company hasnt filed current financial statements in several quarters. The company is also facing a federal lawsuit from shareholders who claim the cleaning and sanitation company artificially inflated its stock price.
We remain committed to finalizing our statements as expeditiously as possible and providing our shareholders with properly reviewed, audited and current financials, Thomas Byrne, interim CEO, said in a statement.
As part of its deal with Nasdaq, Swisher will have to meet several deadlines in regards to its audit. The company must provide Nasdaq with a written update on its progress by Dec. 31, finish the field work for the audit by Jan. 15, and file its restated 2011 financial documents with the Securities and Exchange Commission by Feb. 19. By Feb. 28, the company must file all of its quarterly reports for 2012. If it fails to meet those conditions, Swishers stock could be delisted from the exchange.
The companys executives said they dont expect losses for the first three quarters will need to be increased by more than $4.6 million, a figure they previously gave for adjustments stemming from the audit. But Byrne added that the net loss for 2011 is still not known.
We are not currently able to provide estimated results for the full fiscal year 2011, and we cannot assure shareholders that the estimated adjustments for the first three quarters of 2011 will be indicative of our net loss for the year, said Byrne.
The companys stock, traded under the symbol SWSH, closed up 13 cents, or 9.3 percent, at $1.53 a share Wednesday.
Its been a tumultuous year for Swisher. Two successive chief financial officers, CEO Steve Berrard, and a senior vice president have all left the company following Swishers disclosure of the audit.
This is the second serious problem with finances faced by the company, which was founded in Charlotte by Patrick Swisher. In 2001, the company paid $400,000 in fines and penalties after the SEC accused it of accounting fraud in a civil lawsuit. And in 2002, Patrick Swisher was sentenced to 2 1/2 years in federal prison for evading federal taxes on sales of stock and lying on a mortgage application.