DZS receives delinquency notification letter from Nasdaq Stock Market

DZS announced that on April 1, 2024, as expected, it received a delinquency notification letter from the Nasdaq Stock Market indicating that DZS is not in compliance with the continued listing requirements under Nasdaq Listing Rule 5250(c)(1) because DZS did not timely file its Annual Report on Form 10-K for the year ended December 31, 2023. The notification letter has no immediate effect on the listing or trading of DZS common stock on the Nasdaq Capital Market. As previously reported by DZS in its Notification of Late Filing on Form 12b-25, filed with the Securities and Exchange Commission on March 18, 2024, DZS was unable to timely file the Form 10-K without unreasonable effort or expense by the prescribed due date for such filing. As previously disclosed, following failure to file its Quarterly Report on Form 10-Q for the three months ended June 30, 2023 and September 30, 2023, DZS received a Staff Delisting Determination from the Nasdaq Listing Qualifications Department indicating that, as a result of DZS’s delay in filing the Delinquent Quarterly Reports, it is not in compliance with the Rule. DZS requested a hearing regarding the Staff Determination before a Nasdaq Hearings Panel and was granted a further stay of any suspension or delisting action pending the hearing process, in accordance with the procedures set forth in the Staff Determination. As of the date of this release, DZS has not yet appeared before the Panel to appeal the determination by the Nasdaq Listing Qualifications Department and to seek an additional extension of the stay of any suspension or delisting action until August 3, 2024, the latest extension date that the Panel has the discretion to grant DZS.