Nocera faces Nasdaq compliance issue over late annual report

Published 28/04/2025, 16:58
Nocera faces Nasdaq compliance issue over late annual report

TAIPEI - Nocera, Inc. (NASDAQ:NCRA), a sustainable seafood company specializing in land-based aquaculture systems with a current market capitalization of $13.9 million, has been notified by the Nasdaq Stock Market of non-compliance with its listing rules due to the delayed filing of its annual report. According to InvestingPro data, the company maintains a positive cash position relative to debt, though its current ratio of 0.51 indicates potential liquidity challenges. The Nasdaq notice, dated April 24, 2025, indicates that Nocera has not yet submitted its Form 10-K for the year ending December 31, 2024, as required by Nasdaq Listing Rule 5250(c)(1).

The company now has 60 days to present a plan to regain compliance. If Nasdaq approves the plan, Nocera may receive up to 180 days from the Form 10-K’s original due date, or until October 13, 2025, to file the report and meet Nasdaq’s requirements. During this period, Nocera’s common stock will continue to trade on the Nasdaq under the ticker symbol "NCRA." The stock, currently trading at $0.93, has experienced significant volatility, having declined 26% over the past six months while showing recent signs of recovery with a 17% gain year-to-date.

Nocera has stated that it is working diligently to complete the Form 10-K and plans to submit a compliance plan within the allotted timeframe. The company aims to maintain its compliance with Nasdaq’s continued listing standards by filing the Form 10-K as soon as possible. InvestingPro analysis suggests the stock is currently undervalued, despite challenging financial metrics including negative EBITDA of -$1.31 million and weak gross profit margins of less than 1%.

Nocera’s core business includes designing and producing large-scale Recirculatory Aquaculture Systems (RAS) for fish farming, offering consulting, technology transfer, and project management services for the aquaculture industry. Despite the current compliance issue, the company remains focused on its mission to provide sustainable seafood solutions. Investors seeking deeper insights into Nocera’s financial health and growth prospects can access additional analysis and 8 more exclusive ProTips through InvestingPro.

The information regarding Nocera’s non-compliance and efforts to address the issue is based on a press release statement.

In other recent news, Nocera, Inc. has announced a delay in filing its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, due to audit complexities. The company had previously extended the deadline to April 15, 2025, but has not yet completed the process, citing the need to provide comprehensive responses and documentation to finalize the audit. This delay is partly due to the inclusion of restated financial information for interim periods in 2024, related to the accounting treatment of warrant liabilities. Nocera has also disclosed that it will restate financial statements for three quarters of 2024 due to material errors in accounting for changes in the fair value of its warrant liabilities. The Board of Directors, after consulting with the company’s independent accounting firm, determined that the financial reports for those quarters cannot be relied upon. The restatement will correct an oversight that led to the warrant liability being overstated by approximately 70% and total liabilities by 35% as of September 30, 2024. These financial inaccuracies significantly affected the reported net loss for the year. Nocera is addressing a material weakness in its internal controls over financial reporting to prevent similar issues in the future.

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