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BEIJING - UTime Limited (NASDAQ:WTO), a company with a market capitalization of just $3.25 million and currently showing weak financial health according to InvestingPro metrics, has received a notification from Nasdaq that it no longer complies with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market, the company announced Thursday.
According to the notification received on August 15, UTime failed to maintain the required minimum of $2,500,000 in stockholders’ equity as reported in its Form 20-F for the year ended March 31, 2025. The company’s financial challenges are reflected in its concerning current ratio of 0.48 and negative EBITDA of -$89.32 million. The company also does not meet alternative compliance criteria based on market value of listed securities or net income from continuing operations.
Nasdaq has given UTime 45 calendar days, until September 29, to submit a compliance plan. If accepted by Nasdaq, the plan could grant the company an extension of up to 180 calendar days from the notification date to regain compliance.
The notification has no immediate effect on the listing of UTime’s class A ordinary shares on Nasdaq, according to the company’s press release statement.
UTime Limited is disclosing the receipt of this notification in accordance with Nasdaq Listing Rule 5815(a).
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