Press release

USA Technologies, Inc. Announces Nasdaq Hearing Panel Grants Extension to Regain Compliance

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USA Technologies, Inc. (NASDAQ: USAT) (the “Company”), a premier digital
payment, consumer engagement and logistics service provider for the
self-service retail market, today announced that it had received a
letter from the Office of General Counsel of The Nasdaq Stock Market LLC
(“Nasdaq”) informing the Company that the Nasdaq Hearings Panel (the
“Panel”) has granted the Company’s request for continued listing of the
Company’s stock on Nasdaq. The Panel granted the Company until September
9, 2019 in order to file with the Securities and Exchange Commission
(the “SEC”) its Annual Report on Form 10-K for the fiscal year ended
June 30, 2018, its Quarterly Report on Form 10-Q for the quarter ended
September 30, 2018, its Quarterly Report on Form 10-Q for the quarter
ended December 31, 2018, as well as any other periodic report that would
be required to be filed with the SEC prior to such date (collectively,
the “Unfiled Reports”).

In addition, the Company is required to provide the Panel on May 30,
2019, June 28, 2019, July 31, 2019 and on August 15, 2019, with a
written update regarding the status of the remediation and audit
process. These updates would include a statement from the Company’s
auditor regarding the current estimate of the time needed to complete
the process and detailing any changes in scope of review or new areas of
inquiry identified since the hearing or the last update, as the case may
be, and a statement from the Board of Directors of the Company (the
“Board”) regarding the status of training and remedial measures designed
to address the corporate culture that enabled the accounting problems.
The Panel may reconsider the terms of the extension following its review
of these updates or based on any other relevant event, condition or
circumstance that exists or may develop.

If the Company does not file the Unfiled Reports by September 9, 2019,
the Panel has indicated that it will issue a final delist determination
and the Company will be suspended from trading on Nasdaq.

As previously reported, the Audit Committee of the Board (the “Audit
Committee”) has completed its internal investigation which focused
principally on certain customer transactions entered into by the Company
during fiscal years 2017 and 2018. As also previously reported, the
Board determined to restate the audited financial statements for the
fiscal year ended June 30, 2017, and the quarterly and year-to-date
unaudited financial statements for September 30, 2017, December 31,
2017, and March 31, 2018, based upon the adjustments to the previously
reported revenues proposed by the Audit Committee and its advisers. The
Company is working diligently to complete and file these restated
financial statements with the SEC as soon as practicable and anticipates
doing so no later than September 9, 2019.

About USA Technologies, Inc.

USA Technologies, Inc. is a premier payment technology service provider
of integrated cashless and mobile transactions in the self-service
retail market. The company also provides a broad line of cashless
acceptance technologies including its NFC-ready ePort® G-series, ePort
Mobile® for customers on the go, ePort® Interactive, and QuickConnect,
an API Web service for developers. Through its acquisition of Cantaloupe
Systems, Inc. (“Cantaloupe”), the company also offers logistics, dynamic
route scheduling, automated pre-kitting, responsive merchandising,
inventory management, warehouse and accounting management solutions.
Cantaloupe is a premier provider of cloud and mobile solutions for
vending, micro markets, and office coffee services.

Forward-looking Statements:

“Safe Harbor” Statement under the Private Securities Litigation Reform
Act of 1995: All statements other than statements of historical fact
included in this release are forward-looking statements. When used in
this release, words such as “anticipate,” “believe,” “estimate,”
“expect,” “intend,” and similar expressions, as they relate to the
Company or its management, identify forward looking statements. Such
forward-looking statements are based on the beliefs of the Company’s
management, as well as assumptions made by and information currently
available to the Company’s management. Actual results could differ
materially from those contemplated by the forward-looking statements as
a result of certain factors, including but not limited to, the ability
to complete the restatement of the affected financial statements and
address any material weaknesses; the timing of completion of necessary
restatements, interim reviews and audits by the Company’s independent
registered public accounting firm; risks relating to the substantial
costs and diversion of personnel’s attention and resources deployed to
address the restatement of the affected financial statements and
internal control matters; the costs and expenses relating to the Audit
Committee’s internal investigation; the impact of the internal
investigation on the Company, its management and operations; the results
of pending and potential additional litigation, derivative demands, or
regulatory action arising from the internal investigation and its
findings, from the failure to timely file the Unfiled Reports, or from
the restatement of the affected financial statements; the subsequent
discovery of additional adjustments to the Company’s previously issued
financial statements; the ability of the Company to regain and maintain
compliance with Nasdaq’s continued listing requirements; the timing of
the review by, and the conclusions of, the Company’s independent auditor
regarding the investigation and its impact on the financial statements;
possible default by the Company under its credit facility; the ability
of the Company to remediate any material weaknesses in internal control
over financial reporting; potential reputational damage that the Company
may suffer as a result of the matters under investigation, or the
restatement of the affected financial statements; the impact of the
internal investigation, and the restatement of the affected financial
statements on the value of the Company’s common and preferred stock; the
ability of the Company to successfully defend itself, and the
possibility of unfavorable outcomes, in the pending class action and
shareholder demands for derivative action; the impact of the pending
class action and shareholder demands for derivative action on the
Company’s business, reputation, results of operations and financial
condition; and the risk that the filing of the Unfiled Reports or the
restatement of the affected financial statements will take longer than
anticipated. Readers are cautioned not to place undue reliance on these
forward-looking statements. Any forward-looking statement made by us
speaks only as of the date of this release. Unless required by law, the
Company does not undertake to release publicly any revisions to these
forward-looking statements to reflect future events or circumstances or
to reflect the occurrence of unanticipated events.