ZW Data Action Technologies Inc. (NASDAQ:CNET), a Nevada-incorporated company specializing in computer programming and data processing services, announced on Thursday that it has regained compliance with NASDAQ's periodic filing requirements.
The company, formerly known as ChinaNet Online Holdings, Inc., had previously received notifications from NASDAQ’s Listing Qualifications Staff on April 17 and May 17, 2024, for failing to meet the filing requirements stipulated under NASDAQ Listing Rule 5250(c)(1). This was due to the delay in filing its annual report on Form 10-K for the year ended December 31, 2023, and its quarterly report on Form 10-Q for the period ended March 31, 2024.
However, on July 31, 2024, ZW Data Action Technologies received a letter from NASDAQ confirming that the company had filed its overdue Form 10-K on June 28, 2024, and Form 10-Q on July 29, 2024. With these filings, the company has addressed the deficiencies and is now in compliance with NASDAQ's filing requirements.
The closure of this matter removes the risk of delisting that ZW Data Action Technologies faced due to the late filings. The company's stock, traded under the ticker symbol CNET, will continue to be listed on the NASDAQ Capital Market.
In other recent news, ZW Data Action Technologies Inc. faced potential delisting from NASDAQ due to non-compliance with listing requirements. The company had failed to file its annual report for the fiscal year ended December 31, 2023, and its quarterly report for the period ended March 31, 2024, in a timely manner, leading to notifications of non-compliance from NASDAQ's Listing Qualifications Department. However, ZW Data Action Technologies has now regained compliance by submitting the overdue documents.
This development mitigates the risk of delisting that the company was previously facing. The company's management had been working diligently to complete the necessary financial statements and has now successfully met the regulatory requirements to maintain its listing status. Based on these recent developments, ZW Data Action Technologies continues to be listed on the NASDAQ Capital Market. Please note that this information is based on press release statements from the company.
InvestingPro Insights
In light of ZW Data Action Technologies Inc.'s recent compliance with NASDAQ's filing requirements, it's pertinent for investors to consider the company's financial health and market performance. According to InvestingPro data, as of the last twelve months as of Q1 2024, ZW Data Action Technologies holds a market cap of approximately 5.34 million USD. The company's revenue growth in this period was 11.65%, despite a quarterly revenue decline of 44.09%. These figures highlight a mixed growth trajectory.
InvestingPro Tips suggest that while ZW Data Action Technologies has more cash than debt on its balance sheet, it is quickly burning through cash and suffers from weak gross profit margins. Additionally, the company has not been profitable over the last twelve months, which is an important consideration for investors assessing the company's long-term viability. For those looking for deeper insights, InvestingPro offers additional tips, including analysis on the company's valuation, which implies a poor free cash flow yield, and its price performance, which has seen a significant fall over various time frames.
With the company's stock trading at 0.74 USD at the previous close, and an InvestingPro fair value estimate of 1.08 USD, investors may find this to be a key moment for evaluating their positions. For comprehensive analysis and further InvestingPro Tips, investors can visit the InvestingPro platform, which lists a total of 11 tips for ZW Data Action Technologies.
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