HANGZHOU, China - Nano Labs Ltd (NASDAQ:NA), a prominent fabless integrated circuit design firm in China, disclosed today that it has received a Deficiency Letter from Nasdaq's Listing Qualifications Department. The letter indicates that Nano Labs does not currently meet the Nasdaq Listing Rule 5450(b)(2)(C), which requires a minimum Market Value of Publicly Held Shares (MVPHS) of $15.0 million.
The notice, dated July 11, 2024, does not immediately affect the listing of Nano Labs' Class A ordinary shares on the Nasdaq Global Market. The company has been granted a 180-day period, ending on January 7, 2025, to regain compliance with the MVPHS criterion. Compliance can be achieved if the company's MVPHS reaches or exceeds $15.0 million for at least 10 consecutive business days within this timeframe.
Nano Labs' management is currently exploring various options to address the deficiency and maintain its listing on the Nasdaq Global Market. The announcement comes as part of the company's obligation under Nasdaq Listing Rule 5810(b) to promptly disclose the receipt of a notification of deficiency.
Nano Labs specializes in the development of high throughput and high performance computing chips, as well as smart network interface cards and vision computing chips. The company has established a comprehensive flow processing unit architecture that integrates features of both high throughput and high performance computing.
The information in this article is based on a press release statement from Nano Labs Ltd.
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On another note, Nano Labs Ltd, an integrated circuit design company, has received two Deficiency Letters from the Nasdaq Stock Market for non-compliance with Nasdaq's continued listing requirements. The company has been given 180 days to regain compliance and is expected to submit a Compliance Plan to address the market value deficiency. Nano Labs' management is actively exploring options to meet Nasdaq's listing criteria and intends to submit the required Compliance Plan promptly. These are recent developments in the financial sector.
InvestingPro Insights
In light of the recent notice from Nasdaq's Listing Qualifications Department to Nano Labs Ltd, it's crucial for investors to delve deeper into the company's financial health and market performance. According to InvestingPro data, Nano Labs has a market capitalization of 29.47 million USD, which is significantly below the Nasdaq's MVPHS requirement of 15.0 million USD. This shortfall is a clear indicator of the challenges the company faces in maintaining its listing status.
The financial metrics reveal a troubling picture: a gross profit margin of -54.49% for the last twelve months as of Q4 2023, signaling the company's struggles with profitability and cost management. Furthermore, the company's revenue has declined by a staggering 92.03% during the same period, which may raise concerns among investors regarding the company's growth trajectory and operational efficiency.
InvestingPro Tips provide additional context to these figures, highlighting that Nano Labs is quickly burning through cash and has been unprofitable over the last twelve months. These factors, coupled with the company's high price volatility and significant price decline over the last year (68.91%), may suggest a cautious approach for potential investors. Additionally, the company's short-term obligations exceeding its liquid assets is another red flag that could impact its ability to meet financial commitments.
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