Broadway Financial Corporation Faces Compliance Challenges After Nasdaq Filing Notification

Broadway Financial Corporation Faces Compliance Challenges After Nasdaq Filing Notification



On June 2, 2025, Broadway Financial Corporation, known as Broadway, the parent company of City First Bank, revealed it has received a notification from The Nasdaq Stock Market LLC (NASDAQ: BYFC) regarding non-compliance with its listing rules. This notification, dated May 28, 2025, indicated that Broadway's Quarterly Report on Form 10-Q, due for the quarter ending on March 31, 2025, was not submitted within the required timeframe mandated by the Securities and Exchange Commission (SEC).

Background on Compliance Notification



The notification from Nasdaq does not immediately affect the trading of Broadway's shares on the Nasdaq Capital Market; however, it does raise concerns about potential future implications. Should Broadway continue to delay in its filing of the required Form 10-Q or other financial reports, there could be adverse effects on the company’s common stock listing and trading status.

Previously, on May 16, 2025, Broadway had filed a Form 12b-25 with the SEC, which indicated its struggles to complete the Form 10-Q. The company stated it needed extra time to finalize the valuation of a Securities Purchase Option Agreement. This agreement allows Broadway the option to reacquire its Series C Preferred Stock, which was originally issued to the U.S. Treasury under the Emergency Capital Investment Program. Additionally, they need time to complete disclosures regarding fair value measurements.

Another factor contributing to the delay is the need for the independent registered public accounting firm, Crowe LLP, to have more time to conduct its review procedures related to Broadway's disclosure controls and procedures.

Compliance Plan and Timeline



Nasdaq has granted Broadway a window of 60 calendar days from May 28, 2025, to propose a plan to regain compliance with their listing rules. If Nasdaq accepts this plan, the company may be granted an extension of up to 180 days from the initial due date, effectively allowing until November 17, 2025, to file the Form 10-Q.

Broadway anticipates submitting the Form 10-Q as soon as reasonably possible, aiming to meet the 60-day deadline for the compliance plan.

About Broadway Financial Corporation



Broadway Financial Corporation operates through its wholly-owned subsidiary, City First Bank, which prides itself on being a community-focused bank serving low-to-moderate income communities in Southern California and Washington, D.C. It provides a range of financial products, including residential and commercial real estate loans, as well as various deposit offerings tailored for consumers, businesses, and nonprofit organizations.

Broadway encourages stockholders, analysts, and members of the public interested in more information to reach out directly to their Investor Relations.

Looking Ahead



The recent notification serves as a critical moment for Broadway Financial Corporation, emphasizing the need for enhanced reporting practices and adherence to regulatory requirements. The company is taking the necessary steps to rectify the situation, and stakeholders are hopeful that compliance will be achieved to maintain their standing on Nasdaq.

Cautionary Statements



The press release comes with a cautionary note regarding forward-looking statements, addressing the inherent risks involved, including the possibility that Nasdaq may reject Broadway's compliance plans or experience further delays in financial reporting. Such uncertainties underscore the unpredictable landscape within which Broadway operates.

In this ever-evolving financial environment, ongoing transparency and accountability will be paramount for Broadway Financial as it navigates these challenges while continuing to serve its community-focused mission.

Topics Financial Services & Investing)

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