SEALSQ Corp (NASDAQ: LAES), a semiconductor and cybersecurity technology firm, announced on Wednesday that it has received a notice from Nasdaq regarding non-compliance with the stock exchange's minimum bid price rule.
The notice, dated August 1, 2024, states that SEALSQ's ordinary shares have not met the $1.00 minimum bid price requirement for the last 30 consecutive business days.
The company has been granted an initial period of 180 calendar days, until January 28, 2025, to regain compliance with the minimum bid price requirement. To achieve this, SEALSQ's ordinary shares must maintain a closing bid price of at least $1.00 for a minimum of 10 consecutive business days before the deadline.
Should SEALSQ accomplish this, Nasdaq will confirm the company's compliance and close the matter.
If SEALSQ fails to meet the requirement by January 28, 2025, it may be eligible for an additional compliance period of 180 days, provided it meets certain conditions, including the possibility of a reverse stock split.
Failure to regain compliance within this second period could result in the delisting of SEALSQ's shares, although the company would have the opportunity to appeal the decision.
SEALSQ specializes in integrated solutions based on semiconductors, PKI, and provisioning services, and is developing hardware and software products for post-quantum cryptography, which is anticipated to be resistant to quantum computer attacks.
These technologies have applications in various sectors, including medical and healthcare IT network infrastructure.
The company has stated that the receipt of the Nasdaq notice does not impact its business operations. SEALSQ intends to monitor its share price closely and evaluate options to address the noncompliance.
SEALSQ Corp has announced plans to launch Quantum-Resistant Secure Chips by Q4 2024. Despite a temporary slowdown in the first half of 2024, the company anticipates a stronger second half and aims for a return to growth in 2025.
The company's unaudited revenue for the first half of 2024 was approximately $5 million due to a decline in traditional semiconductor demand. However, SEALSQ has a new business pipeline valued at $71 million with new customers awaiting next-generation semiconductors expected to be available in 2025.
InvestingPro Insights
In the wake of SEALSQ Corp's (NASDAQ: LAES) recent notice from Nasdaq regarding minimum bid price non-compliance, InvestingPro data reveals a challenging financial landscape for the company. With a market capitalization of just $11.43 million and a negative price-to-earnings (P/E) ratio of -3.98, the company's financial health is under scrutiny. In fact, the adjusted P/E ratio for the last twelve months as of Q4 2023 stands at -2.29, which further underscores the company's earnings struggles.
SEALSQ's revenue growth has been a silver lining, with a significant 29.57% increase over the last twelve months as of Q4 2023. However, this has not translated into profitability, as evidenced by the InvestingPro Tips which highlight that analysts do not anticipate the company will be profitable this year. Additionally, the stock has experienced a precipitous decline, with a 95.37% drop in the one-year price total return as of the current date in 2024.
InvestingPro Tips also suggest that SEALSQ is trading near its 52-week low and has been quickly burning through cash. These factors, combined with the stock's poor performance over the last month, week, and six months, paint a concerning picture for potential investors. The company's liquid assets do exceed short-term obligations, which may provide some financial flexibility in the short term. Yet, with the stock in oversold territory according to the Relative Strength Index (RSI), SEALSQ faces an uphill battle to regain investor confidence and meet Nasdaq's requirements.
For those interested in a deeper dive into SEALSQ's financials and additional analyst insights, InvestingPro offers more tips on its platform, which could further inform investment decisions regarding the company's prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.