Barnes & Noble Education disclosed late last week that it received a notice from the New York Stock Exchange (NYSE) on August 4 notifying the company that it could be dropped from the exchange if it doesn’t file its annual report and form 10-K soon.

In late July, B&NE notified the Securities & Exchange Commission that due to issues surrounding the way it accounts for the cost of digital sales, it would be unable to file its reports for the fiscal year ended May 3, 2025 within the proscribed 90-day period. Its filing suggested B&NE hoped to be able to make the filing within a 15-day grace period. In its new filing, however, B&NE stated it would not be able to meet the new deadline “without unreasonable effort or expense.” B&NE reported that the ongoing internal investigation by its audit committee over ineffective internal controls over financial reporting as the reason for the continuing delay in filing the 10-K.

In its notice, the NYSE informed B&NE that the company has six months from August 1, 2025 to regain compliance with the NYSE listing standards by filing the 10-K with the SEC. If the company fails to file the10-K within the six-month period, at its discretion, the NYSE may grant up to six additional months for the company to regain compliance. The notice, however, warns B&NE that it “may nevertheless commence delisting proceedings at any time if it deems that the circumstances warrant.” In its notice, B&NE said it expects to be able to make the filing within the six month extension period.

B&NE’s auditing problems came to light when on July 20 it reported that it may have a potential overstatement of up to $23 million to its accounts receivable balance as of May 3, 2025 due to erroneous reporting during fiscal 2024 and 2025. Based on results of the investigation to that point, B&NE said that it believes the mistakes were the results of actions taken by a payment processing employee who had been suspended pending the results of the audit committee investigation.

At the start of trading August 11, B&NE's stock price dipped about 1%. At the end of the day, the stock fell approximately 6%.

This story has been updated.