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TOKYO - Blockchain technology company Earlyworks Co., Ltd. (NASDAQ:ELWS), currently trading at $2.43 with a market capitalization of $6.97 million, announced Tuesday it has received a final extension from the Nasdaq Hearings Panel to regain compliance with continued listing requirements by October 29, 2025. According to InvestingPro analysis, the company maintains a healthy balance sheet with more cash than debt.
The Japanese company, which operates its proprietary Grid Ledger System private blockchain technology and maintains an impressive gross profit margin of 51.57%, had previously failed to maintain the required $35 million minimum market value of listed securities under Nasdaq Listing Rule 5550(b)(2).
Earlyworks is now working to meet an alternative compliance standard under Nasdaq Listing Rule 5550(b)(1), which requires a minimum stockholders’ equity of $2.5 million.
The Panel had initially granted the company until September 19, 2025, to regain compliance. Following a request submitted by Earlyworks on September 18 detailing progress on its compliance plan, the Panel extended the deadline to October 29, representing the maximum extension period available.
During this extension, Earlyworks’ American Depositary Shares will continue trading on the Nasdaq Capital Market while the company works to complete equity financing initiatives. If unable to meet requirements by the deadline, the company’s securities will be delisted from Nasdaq.
The compliance update was shared in a company press release statement.
In other recent news, Earlyworks Co., Ltd. has received an extension from the Nasdaq Hearings Panel to maintain its listing on the Nasdaq Capital Market until September 19, 2025. The company had previously not met Nasdaq’s minimum market value requirement of $35 million for listed securities over a period of 30 consecutive trading days. Earlyworks also did not regain compliance during the 180-day grace period that concluded on April 28, 2025. This extension provides the company with additional time to meet Nasdaq’s requirements. Investors will be watching closely to see how Earlyworks addresses these listing requirements in the coming months.
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