Earlyworks receives Nasdaq extension to meet listing requirements

Published 26/06/2025, 21:18
Earlyworks receives Nasdaq extension to meet listing requirements

TOKYO - Earlyworks Co., Ltd. (NASDAQ:ELWS), a Japanese blockchain technology company with a current market capitalization of $5.29 million, has been granted an extension by the Nasdaq Hearings Panel to maintain its listing on the Nasdaq Capital Market until September 19, 2025.

The company had previously failed to meet Nasdaq’s minimum market value requirement of $35 million for listed securities over 30 consecutive trading days and did not regain compliance during the 180-day grace period that ended April 28, 2025. According to InvestingPro data, the stock has declined over 30% in the past six months, though it maintains impressive gross profit margins of nearly 64%.

Instead of pursuing compliance with the market value standard, Earlyworks is now working to meet an alternative listing requirement of maintaining minimum stockholders’ equity of $2.5 million. InvestingPro analysis shows the company holds more cash than debt and maintains a healthy current ratio of 2.87, suggesting strong short-term liquidity. Subscribers can access 10+ additional financial insights about ELWS on InvestingPro.

To maintain its listing, Earlyworks must file public disclosure by September 19 describing transactions undertaken to achieve compliance with the equity requirement. The company must also provide income projections for the next 12 months and evidence of compliance with all applicable Nasdaq Capital Market listing criteria.

During this extension period, Earlyworks’ American Depositary Shares will continue trading on Nasdaq while the company works toward regaining full compliance.

Earlyworks operates a proprietary private blockchain technology called Grid Ledger System (GLS), which the company describes as a hybrid blockchain combining blockchain and database technology features. Despite recent market challenges, the company has demonstrated remarkable revenue growth of over 400% in the last twelve months.

This information is based on a press release statement issued by the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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