UTime Limited received Nasdaq notification for non-compliance with stockholders' equity listing requirements and plans to rectify this.
Quiver AI Summary
UTime Limited announced that it received a notification from Nasdaq stating that it is not in compliance with the requirement to maintain a minimum of $2,500,000 in stockholders' equity, as reported in its Form 20-F for the year ending March 31, 2025. This non-compliance also extends to alternative requirements related to the market value of listed securities or net income. While this notification does not immediately affect the listing status of the company's shares, UTime has until September 29, 2025, to submit a plan to regain compliance. If accepted, Nasdaq may grant an extension of up to 180 days. The company will work with its advisors to address this issue and comply with Nasdaq's listing rules.
Potential Positives
- UTime has been granted 45 calendar days to submit a plan to regain compliance with Nasdaq's minimum stockholders' equity requirement, allowing the company time to strategize for its financial recovery.
- The notification has no immediate effect on the listing of UTime's class A ordinary shares traded on Nasdaq, meaning there is no immediate risk of delisting.
- By publicly disclosing its Nasdaq notification, UTime demonstrates transparency and fulfills its regulatory obligations, potentially fostering investor trust.
Potential Negatives
- The company is currently non-compliant with Nasdaq's minimum stockholders' equity requirement, which could jeopardize its listing status.
- UTime Limited must submit a compliance plan within 45 days, indicating financial distress or potential operational challenges.
- The company does not meet other listing alternatives, such as market value of listed securities or net income from continuing operations, further highlighting financial weaknesses.
FAQ
What is UTime Limited's compliance issue with Nasdaq?
UTime Limited was notified by Nasdaq that it does not meet the $2.5 million minimum stockholders’ equity requirement.
When will UTime submit its compliance plan to Nasdaq?
The Company has until September 29, 2025, to submit its plan to regain compliance with Nasdaq’s requirements.
What happens if UTime's compliance plan is accepted?
If accepted, Nasdaq may grant UTime an extension of up to 180 calendar days to meet the requirements.
Does this notification have immediate effects on UTime's shares?
No, the notification has no immediate effect on the listing of UTime's class A ordinary shares on Nasdaq.
Where can investors find more information about UTime's risks?
Investors can find more details in UTime's filings with the SEC, including the Annual Report on Form 20-F.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
Full Release
BEIJING, Aug. 21, 2025 (GLOBE NEWSWIRE) -- UTime Limited ("UTime" or the "Company") (Nasdaq: WTO), today announced that on August 15, 2025, the Company received a notification letter from the Nasdaq Listing Qualifications Staff of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that it is no longer in compliance with the requirement of maintaining a minimum of $2,500,000 in stockholders’ equity for continued listing on the Nasdaq Capital Market set forth in Nasdaq Listing Rule 5550(b)(1) based on the Company’s reported stockholders’ equity in its Form 20-F for the year ended March 31, 2025, which is below the foregoing requirement of minimum stockholders' equity. In addition, the Company does not meet the alternatives of market value of listed securities or net income from continuing operations as of August 14, 2025.
The notification received has no immediate effect on the listing of the Company's class A ordinary shares traded on Nasdaq. Nasdaq has provided the Company with 45 calendar days, or until September 29, 2025, to submit a plan to regain compliance with the minimum stockholders' equity standard. The Company will be working with its advisors to submit a plan of compliance, that if accepted by Nasdaq, can grant an extension of up to 180 calendar days from the date of the notification letter.
The Company, by filing this press release, discloses its receipt of the notification from Nasdaq in accordance with Nasdaq Listing Rule 5815(a).
Forward-Looking Statement
This press release contains "forward-looking statements." Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential," or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. None of the outcomes expressed herein are guaranteed. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our product candidates on a commercial scale on our own, or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; and (v) difficulties in securing regulatory approval to proceed to the next level of the clinical trials or to market our product candidates. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 20-F and its Current Reports on Form 6-K. Investors are urged to read these documents free of charge on the SEC's website at http://www.sec.gov . The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
This press release does not constitute an offer to sell, or the solicitation of an offer to buy any of the Company's securities, nor shall such securities be offered or sold in the United States absent registration or an applicable exemption from registration, nor shall there be any offer, solicitation or sale of any of the Company's securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
Company Contact
Hengcong Qiu
