BEIJING - ZW Data Action Technologies Inc. (NASDAQ:CNET), a provider of online advertising, precision marketing, and data analytics services, disclosed today that it has received a notification from Nasdaq regarding non-compliance with listing requirements due to delayed filing of its quarterly financial report.
On May 17, 2024, the company was notified by the Listing Qualifications Department of The Nasdaq Stock Market LLC that it had not met the Nasdaq Listing Rule 5250(c)(1) for timely filing its Quarterly Report for the fiscal quarter ended March 31, 2024. This follows a previous notice received on April 17, 2024, for failing to file its Annual Report for the fiscal year ended December 31, 2023.
The company has been given 60 days, until June 17, 2024, to submit a compliance plan to Nasdaq. If Nasdaq accepts the plan, it may allow up to 180 calendar days from the initial due date of the Annual Report, or until October 14, 2024, to file the overdue documents and regain compliance.
Failure to comply within the granted period may result in the delisting of ZW Data Action Technologies' common stock from the Nasdaq exchange. The company's management is reportedly working diligently to complete the necessary financial statements but has stated the need for additional time to prepare, review, and finalize them.
This announcement is in line with Nasdaq Listing Rule 5810(b), which mandates prompt disclosure of any notification of deficiency.
Established in 2003 and based in Beijing, ZW Data Action Technologies serves enterprise clients with a suite of services including online advertising, precision marketing, and data analytics. It also develops blockchain-enabled applications and software solutions.
The company's future compliance with Nasdaq's rules remains uncertain, as there is no assurance that it will regain compliance within any given period or meet the conditions for continued listing on the exchange.
This news is based on a press release statement from ZW Data Action Technologies Inc.
InvestingPro Insights
As ZW Data Action Technologies Inc. (CNET) faces challenges with Nasdaq listing requirements, investors and stakeholders are closely monitoring the company's financial health and stock performance.
According to InvestingPro data, CNET has a market capitalization of $5.6 million and is trading at a low revenue valuation multiple, with a Price/Book ratio as of the last twelve months ending Q3 2023 at just 0.68. This could indicate that the stock is potentially undervalued relative to its assets.
Still, the company's financial metrics raise some concerns. CNET's gross profit margin stands at a negative 2.1% for the same period, underscoring the company's struggles with profitability. Moreover, the stock has experienced a significant decrease in price over the past week, month, and year, with a one-year price total return at -47.2% as of the latest data. These figures highlight the stock's underperformance in the market.
An InvestingPro Tip suggests that while CNET's liquid assets exceed its short-term obligations, offering some financial flexibility, the company has not been profitable over the last twelve months. This tip, along with other insights, may provide valuable context for investors considering the company's ability to meet its financial obligations and potential for future profitability.
For those interested in a deeper analysis of ZW Data Action Technologies Inc., InvestingPro offers additional tips, including the company's operating with a moderate level of debt and its stock's poor performance over the last decade. To access these insights and more, visit InvestingPro. Plus, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a total of 11 InvestingPro Tips for CNET.
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