Nasdaq Compliance Crisis Deepens: Two Tech Firms Face Delisting Over Reporting Failures

The Nasdaq stock exchange has intensified its compliance enforcement actions, with two additional technology companies facing potential delisting due to reporting failures. DIH Holding US, Inc. and ScanTech AI have both received formal deficiency notices from Nasdaq for failing to timely file their quarterly financial reports, marking a significant escalation in the ongoing market regulation crisis.

DIH Holding US, a company operating in the industrial automation and robotics sector, received its notification on August 30, 2025, for the delayed filing of its Form 10-Q quarterly report. Simultaneously, ScanTech AI, which specializes in artificial intelligence and cybersecurity solutions, announced receiving a similar deficiency letter from Nasdaq regarding its overdue financial filings.

The violations center around Nasdaq Listing Rule 5250(c)(1), which requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission. Both companies now face a 60-day period to submit a plan to regain compliance. If Nasdaq accepts their plans, the companies may receive up to 180 days from the filing due date to become compliant.

This development is particularly concerning for cybersecurity professionals and investors, as it highlights potential vulnerabilities in corporate governance and financial reporting systems. The timing of these violations, affecting companies in technology-driven sectors, raises questions about whether these incidents represent isolated cases or indicate broader systemic issues in financial compliance processes.

For cybersecurity experts, these cases underscore the critical intersection between financial compliance and data security. Delayed financial filings often signal underlying operational challenges, including potential cybersecurity incidents that may have disrupted normal business operations. Companies experiencing data breaches or cyber attacks frequently face disruptions that can impact their ability to meet regulatory filing deadlines.

The implications extend beyond the immediate companies involved. Market regulators are increasingly focusing on the cybersecurity preparedness of listed companies, recognizing that cyber incidents can materially affect financial performance and investor confidence. These deficiency notices serve as a reminder that robust cybersecurity measures are not just technical requirements but essential components of corporate compliance and governance.

Investors and industry analysts are closely watching how these companies address their compliance issues. The resolution process will test the effectiveness of their internal controls, including their cybersecurity infrastructure and incident response capabilities. Companies that successfully navigate these challenges will likely emerge with stronger governance frameworks, while those that fail may face more severe consequences, including permanent delisting.

The expanding compliance crackdown also signals Nasdaq's increased vigilance in enforcing listing standards, particularly for technology companies that may be experiencing rapid growth or operational transformations. This heightened scrutiny comes at a time when regulatory bodies worldwide are strengthening requirements for financial transparency and corporate accountability.

Cybersecurity professionals should note that these developments may lead to increased demand for compliance-related security services, including enhanced monitoring of financial systems, improved data protection measures, and more robust incident response planning. Companies seeking to avoid similar compliance issues will likely invest more heavily in cybersecurity infrastructure that supports timely and accurate financial reporting.

As the situation develops, market participants will be monitoring whether additional companies receive similar deficiency notices, potentially indicating a broader pattern of compliance challenges in the technology sector. The outcomes of these cases will set important precedents for how Nasdaq handles similar situations in the future and may influence regulatory approaches to financial reporting compliance across global markets.