Capstone Green Energy Corp. appears at a tipping point following the resignation of its CEO, an inability to file regulatory filings on time and the possibility that the company could pursue a sale.

On Aug. 21, Capstone said NASDAQ notified it last week that required reports due to Securities and Exchange Commission (SEC) were delinquent. The microgrid company has not filed a quarterly report due for the period ending June 30 and has also failed to timely file its annual report for the fiscal year ending March 31.

Capstone’s SEC filings said the delays are attributable “in large part to the ongoing review and investigations by the [board’s] Audit Committee of financial reporting and other matters,” according to a Capstone SEC report.

On Aug. 14, the company announced that President and CEO Darren Jamison had resigned, effective Aug. 22. Robert C. Flexon, Capstone’s board chair, was appointed executive chairman and will serve as interim CEO until a successor is appointed.

SEC filings shed more light on Jamison’s reasons for stepping down.

On Aug. 8, Jamison informed the board of his resignation and “expressed that his decision … was due, in part, to a disagreement regarding the consideration of alternatives to address the company’s situation with the holder of its senior secured notes.”

The filing says that other members of the board note that the company continues to pursue a variety of possible alternatives “within or outside of bankruptcy” that will benefit its stakeholders, vendors, customers and other creditors, as well as stockholders.

“That includes an ongoing process seeking a buyer of the company or its business, in whole or in part,” the documents said.

Later on Aug. 8, Jamison also resigned from the board. In connection with Jamison’s resignation, the board approved a reduction in the size from six members to five, also effective Aug. 22.

The notification from NASDAQ doesn’t signal imminent delisting of the company and has no current effect on the listing or trading of the company's securities. Under NASDAQ rules, the company has 60 calendar days from Aug. 16 to submit a plan to regain compliance. If the plan is accepted, NASDAQ may grant an exception of up to 180 calendar days for the quarterly report, or until Feb. 12, 2024, to regain compliance.

So far this year, Capstone Green Energy’s share price has fallen 61%. The company has a market capitalization of about $10.66 million.