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SEC filing reveals Daktronics facing financial distress

Daktronics is facing financial strains that raise questions about the company’s future, according to a new filing with the Securities and Exchange Commission.

Wednesday's filing shows the Brookings-based company moved to delay its earnings reports to determine whether there’s “a substantial doubt about the company’s ability to continue as a going concern.”

The filing blamed the volatility on supply chain issues and inflationary pressure. It also said the company is not certain it will have enough liquid assets to meet obligations over the next 12 months.

"In light of the substantial doubt in our ability to continue as a going concern and our related evaluation of the income tax implications of reaching this conclusion, the Company also expects to conclude that its disclosure controls and procedures and internal control over financial reporting were not effective as a result of material weaknesses," the filing stated.

More information will be released in an investor call Monday, Dec. 12.

Daktronics has not responded to a request for comment.

The company’s stock has fallen nearly 50% since the filing was made public.

Josh Chilson is the news director at South Dakota Public Broadcasting. A Florence, S.D. native, Josh graduated with a journalism degree from South Dakota State University. He has worked as a newspaper reporter and videographer, and most recently as managing editor for Dakota News Now. Josh is based out of SDPB's Sioux Falls studio.
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