• by Ray Schultz , January 2, 2023

Lee Enterprises has not yet filed its annual report for the fiscal year that ended September 25, 2022. 

The publisher revealed on Monday that it has been notified by the Listing Qualifications Department of The Nasdaq Stock Market LLC that it is not in compliance with the Nasdaq Listing Rule 5250(c)(1).

Lee has until February 27 to file a plan of compliance. Nasdaq may grant an extension of up to 180 days from the original filing date—to June 26—if it accepts the plan. 

The company expects to file the required 2022 Form 10-K within the 60-day period, eliminating the need to provide a plan. 

Lee says it is is “working diligently to complete the internal controls evaluation described in its Form 8-K filing on December 12 and file its 10-K for fiscal 2022.”Lee says it is working diligently to complete the internal controls evaluation described in its Form 8-K filing on December 12 and file its 10-K for fiscal 2022. 

However, failure to regain compliance would lead to a delisting of the company's common stock 

The filing should not have any impact on the company’s financials, which were released on December 8, 2022.

The firm, which now bills itself as a digital-first subscription platform, reported total digital revenue of $65 million in Q4, a 31% increase YoY. In contrast, overall revenue was flat at $194 million.

The results were similar for fiscal 2022: Total operating revenue was $781 million, down 2% from  the prior year. But digital revenue grew by 27% to $240 million. 

And, pointing to a new publishing model, the company reports that digital advertising and marketing services hit $181 million, a 28% increase over the prior year, and 50% of total ad revenue.

Last year, Lee fended off an attempted hostile takeover by Alden Global Capital.