Earlyworks Co., Ltd. Granted Extension by Nasdaq Hearings Panel to Regain Compliance with Continued Listing Requirements
Earlyworks (NASDAQ:ELWS), a Japanese blockchain technology company, has received an extension from the Nasdaq Hearings Panel to maintain its listing on the Nasdaq Capital Market until September 19, 2025. The company failed to meet Nasdaq's minimum market value requirement of $35 million and is now pursuing compliance through an alternative standard requiring minimum stockholders' equity of $2.5 million.
The extension is conditional upon Earlyworks filing public disclosures about compliance-achieving transactions, providing a recent balance sheet, and submitting 12-month income projections by the September deadline. The company's ADSs will continue trading on Nasdaq during this period.
Earlyworks (NASDAQ:ELWS), una società giapponese specializzata in tecnologia blockchain, ha ottenuto una proroga dal Nasdaq Hearings Panel per mantenere la sua quotazione sul Nasdaq Capital Market fino al 19 settembre 2025. L'azienda non ha raggiunto il requisito minimo di valore di mercato di 35 milioni di dollari richiesto da Nasdaq e sta ora cercando di conformarsi attraverso uno standard alternativo che richiede un patrimonio netto minimo di 2,5 milioni di dollari.
La proroga è subordinata alla presentazione da parte di Earlyworks di comunicazioni pubbliche riguardanti le operazioni che garantiranno la conformità, alla fornitura di un bilancio recente e alla presentazione di proiezioni di reddito per 12 mesi entro la scadenza di settembre. Durante questo periodo, gli ADS dell'azienda continueranno a essere negoziati sul Nasdaq.
Earlyworks (NASDAQ:ELWS), una empresa japonesa de tecnología blockchain, ha recibido una prórroga del Nasdaq Hearings Panel para mantener su cotización en el Nasdaq Capital Market hasta el 19 de septiembre de 2025. La compañía no cumplió con el requisito mínimo de valor de mercado de 35 millones de dólares establecido por Nasdaq y ahora está buscando cumplir mediante un estándar alternativo que exige un patrimonio neto mínimo de 2,5 millones de dólares.
La prórroga está condicionada a que Earlyworks presente divulgaciones públicas sobre las transacciones que permitan alcanzar la conformidad, proporcione un balance reciente y entregue proyecciones de ingresos a 12 meses antes de la fecha límite de septiembre. Durante este período, los ADS de la compañía seguirán cotizando en Nasdaq.
Earlyworks (NASDAQ:ELWS)는 일본의 블록체인 기술 회사로서, 나스닥 청문회 패널로부터 나스닥 캐피탈 마켓 상장을 2025년 9월 19일까지 유지할 수 있는 연장을 받았습니다. 회사는 나스닥이 요구하는 최소 시장 가치 3,500만 달러 요건을 충족하지 못했으며, 대신 최소 주주 자본 250만 달러를 요구하는 대체 기준을 통해 준수를 추진하고 있습니다.
이번 연장은 Earlyworks가 준수를 달성하는 거래에 대한 공개 공시, 최근 재무상태표 제출, 9월 마감일까지 12개월 수익 예측 제출을 조건으로 합니다. 이 기간 동안 회사의 ADS는 나스닥에서 계속 거래됩니다.
Earlyworks (NASDAQ:ELWS), une entreprise japonaise spécialisée dans la technologie blockchain, a obtenu une prolongation du Nasdaq Hearings Panel pour maintenir sa cotation sur le Nasdaq Capital Market jusqu'au 19 septembre 2025. La société n'a pas atteint l'exigence minimale de valeur de marché de 35 millions de dollars fixée par le Nasdaq et cherche désormais à se conformer via une norme alternative nécessitant un fonds propres minimum de 2,5 millions de dollars.
Cette prolongation est conditionnée à ce qu'Earlyworks publie des divulgations publiques concernant les transactions permettant d'atteindre la conformité, fournisse un bilan récent et soumette des projections de revenus sur 12 mois avant la date limite de septembre. Pendant cette période, les ADS de la société continueront d'être négociés sur le Nasdaq.
Earlyworks (NASDAQ:ELWS), ein japanisches Blockchain-Technologieunternehmen, hat vom Nasdaq Hearings Panel eine Verlängerung erhalten, um seine Notierung am Nasdaq Capital Market bis zum 19. September 2025 aufrechtzuerhalten. Das Unternehmen erfüllte nicht die Mindestanforderung von Nasdaq an den Marktwert von 35 Millionen US-Dollar und strebt nun die Einhaltung über einen alternativen Standard an, der ein mindestens Eigenkapital von 2,5 Millionen US-Dollar verlangt.
Die Verlängerung ist an die Bedingung geknüpft, dass Earlyworks öffentliche Offenlegungen zu transaktionen zur Erreichung der Compliance vorlegt, eine aktuelle Bilanz einreicht und bis zur Frist im September 12-Monats-Einkommensprognosen vorlegt. Während dieser Zeit werden die ADS des Unternehmens weiterhin an der Nasdaq gehandelt.
- Granted extension until September 19, 2025 to maintain Nasdaq listing
- Alternative compliance path available through $2.5M stockholders' equity requirement
- ADSs remain listed and trading on Nasdaq during extension period
- Failed to maintain required $35M minimum market value of listed securities
- Did not regain compliance during initial 180-day grace period
- Company needs to secure strategic financing to meet compliance requirements
Insights
Earlyworks received Nasdaq extension to meet listing requirements, switching compliance path from market value to equity standards.
Earlyworks has secured a critical extension from the Nasdaq Hearings Panel, temporarily avoiding delisting after failing to maintain the required
The company is pivoting to an alternative compliance strategy, aiming to satisfy Nasdaq Listing Rule 5550(b)(1), which requires minimum stockholders' equity of
To meet these requirements, Earlyworks is exploring strategic financing options and business alliances with external partners. By September 19, they must file comprehensive financial disclosures including:
- A recent balance sheet with pro forma adjustments reflecting compliance transactions
- Forward-looking income projections for the next 12 months
- Evidence of compliance with all Nasdaq Capital Market listing criteria
This extension provides breathing room but highlights underlying financial challenges. For investors, the continued Nasdaq listing preserves trading liquidity and market access, but the compliance struggle signals concerns about the company's financial position. The upcoming mandatory disclosures will offer critical insights into Earlyworks' strategy for sustainable compliance and future viability.
While this extension prevents immediate delisting, investors should carefully monitor the company's progress toward meeting the equity standard, as any capital-raising activities could potentially impact existing shareholdings.
TOKYO, June 26, 2025 (GLOBE NEWSWIRE) -- Earlyworks Co., Ltd. (Nasdaq: ELWS) (the “Company” or “Earlyworks”), a Japanese company operating its proprietary private blockchain technology, Grid Ledger System (“GLS”), today announced that it has received a decision from the Nasdaq Hearings Panel (the “Panel”) granting the Company an exception to enable continued listing on the Nasdaq Capital Market.
As previously disclosed on May 7, 2025, the Company received a staff determination letter dated May 2, 2025 (the “Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Company did not regain compliance with Nasdaq Listing Rule 5550(b)(2), which requires listed companies to maintain a minimum market value of listed securities of
In response, the Company timely requested a hearing before the Panel, staying the suspension of trading and delisting process. The Company also informed Nasdaq of its intent to pursue compliance through an alternative standard under Nasdaq Listing Rule 5550(b)(1), which requires a minimum stockholders’ equity of
Based on the information presented at the hearing, the Panel has granted Earlyworks an extension through September 19, 2025, to regain compliance with the continued listing standards, subject to the following conditions:
| 1. | On or before September 19, 2025, the Company must file a public disclosure describing the transactions undertaken to achieve compliance with the Equity Rule and provide an indication of its equity following those transactions. This may include: | |
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| 2. | On or before September 19, 2025, the Company must provide the Panel with: | |
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The Company’s American Depositary Shares (ADSs) will remain listed and eligible for trading on the Nasdaq Capital Market during the extension period, as Earlyworks works toward regaining full compliance.
About Earlyworks Co., Ltd.
Earlyworks Co., Ltd. is a Japanese company operating its proprietary private blockchain technology, GLS, to leverage blockchain technology in various applications in a wide range of industries. GLS is a hybrid blockchain that combines the technical advantages of blockchain and database technology. GLS features high-speed processing, which can reach 0.016 seconds per transaction, tamper-resistance, security, zero server downtime, and versatile applications. The applicability of GLS is verified in multiple domains, including real estate, advertising, telecommunications, metaverse, and financial services. The Company’s mission is to keep updating GLS and make it an infrastructure in the coming Web3/metaverse-like data society. For more information, please visit the Company’s website: https://ir.e-arly.works/.
For more information, please visit the Company’s website: https://ir.e-arly.works/.
For inquiries about this release, please contact:
Earlyworks Co., Ltd.
Contact E-MAIL: ew-ir@e-arly.works
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may,” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.
FAQ
Why is Earlyworks (ELWS) at risk of Nasdaq delisting?
What is the deadline for Earlyworks (ELWS) to regain Nasdaq compliance?
What must Earlyworks (ELWS) do to maintain its Nasdaq listing?
What alternative compliance standard is Earlyworks (ELWS) pursuing?
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