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KIT Digital shares fall on possible delisting

NEW YORK (AP) -- A warning that KIT Digital Inc.'s beaten-down stock could be removed from the Nasdaq stock exchange weighed on the video technology company's shares Tuesday.

THE SPARK: KIT Digital said late Monday that it received a notice from Nasdaq saying that the company's stock could be delisted because it hasn't yet filed its quarterly earnings report, the "10-Q" form, for the period ending Sept. 30.

THE BIG PICTURE: KIT Digital said in November that due to errors and irregularities, it will need to restate its financial statements dating back to 2009. At the time, the company also said it would not issue its next quarterly report on time.

KIT Digital said Monday that it has until Dec. 18 to submit a plan to Nasdaq in order to stay listed at the stock exchange. KIT Digital said that it expects to file a plan by the due date, but it can't guarantee that it will regain compliance with Nasdaq's requirements.

SHARE ACTION: Down 5 cents, or 6.6 percent, to 64 cents in afternoon trading Tuesday. The shares had been peaked at a 52-week high of $12.65 in February.