TOKYO - Warrantee Inc. (NASDAQ:WRNT), a Japanese technology firm specializing in marketing and market research, has disclosed receiving a non-compliance notification from the Nasdaq Stock Market due to a delay in filing its semi-annual financial report.
The notice, issued on Monday, April 4, 2024, indicates that Warrantee did not submit its interim report on Form 6-K for the period ending September 30, 2023, as required by Nasdaq Listing Rule 5250(c)(2).
The rule mandates that foreign private issuers provide an interim balance sheet and income statement for their second quarter to the U.S. Securities and Exchange Commission (SEC). Despite the notice, there is no immediate impact on the trading of Warrantee's American Depositary Shares on the Nasdaq.
Warrantee has a 60-day window to present a plan to regain compliance with Nasdaq’s requirements. If Nasdaq accepts the company's plan, Warrantee could be given up to 180 calendar days from the original due date of the report, or until September 27, 2024, to file the necessary documents and comply with the listing standards.
The company has stated that it is working diligently to complete the interim report and intends to file it as soon as possible. If Warrantee manages to file the report within the 60-day period, it will not be required to submit a formal compliance plan.
Warrantee's announcement complies with Nasdaq Listing Rule 5810(b), which obligates companies to promptly disclose the receipt of a deficiency notification. The company, founded in 2013, provides marketing campaign services based on its trinity model, which aims to connect corporate sponsors, campaign participants, and Warrantee to mutual benefit.
In its press release statement, Warrantee also included forward-looking statements, cautioning that these involve risks and uncertainties and that actual results may differ materially from those anticipated. The company emphasized that it undertakes no obligation to publicly update or revise any forward-looking statements.
Investors and media inquiries regarding Warrantee's current situation and future plans are directed to the company's investor relations contacts.
InvestingPro Insights
Amid the recent notification of non-compliance from Nasdaq, investors are eyeing Warrantee Inc. (NASDAQ:WRNT) with heightened scrutiny. Data from InvestingPro shows a market capitalization of 9.63 million USD, suggesting a relatively small player in the technology sector. The P/E ratio stands at 38.29, which could point to investor optimism about future earnings growth despite the company's current challenges.
Still, the stock has experienced significant price volatility, as indicated by a one-week total price return of -7.98% and a one-month price return of -23.73%. This reflects recent market reactions to the company's reporting delay and other factors.
On the upside, Warrantee has seen a strong return over the last three months with a 21.65% increase, hinting at some investor confidence in the company's ability to bounce back. It is also important to note that the stock is currently trading at 7.69% of its 52-week high, with a previous close price of 0.43 USD.
InvestingPro Tips highlight the stock's high price volatility and weak gross profit margins, which investors should consider when assessing the company's financial health and market position. Additionally, Warrantee does not pay a dividend, which could be a factor for income-focused investors.
For those looking for more insights, there are additional InvestingPro Tips available that can help in making a more informed decision. With the use of coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable tips.
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