Northwest Pipe Company first received a letter from Nasdaq on November 12, 2009 stating that the Company was no longer in compliance with the Listing Rules because it did not timely file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2009. After the receipt of the first letter, the Company submitted to Nasdaq a compliance plan in order to regain compliance with the Listing Rules. Nasdaq subsequently granted Northwest Pipe an exception allowing until May 10, 2010 to regain compliance.
The second letter stated that the Company is required to submit an update to the compliance plan no later than April 1, 2010, and that any additional exception allowing the Company to regain compliance with the Listing Rules will be limited to a maximum of 180 calendar days from the due date of the delinquent Form 10-Q, or May 10, 2010. The Company intends to submit to Nasdaq an update to the Compliance Plan by April 1, 2010.
The Audit Committee of the Company's Board of Directors, with the assistance of independent professionals, is conducting an ongoing internal investigation of certain accounting matters, including certain revenue recognition practices. Northwest Pipe plans to file its delinquent Form 10-Q and delinquent Form 10-K as soon as practicable after the completion of the Audit Committee's investigation, the completion of any additional accounting work required as a result of the Audit Committee's investigation, the completion of the Company's consolidated financial statements for the quarter ended September 30, 2009 and for the year ended December 31, 2009 and the completion of the quarterly review and annual audit, respectively, of such consolidated financial statements by the Company's independent registered public accountants.