Earlyworks Co., Ltd. Granted Extension by Nasdaq Hearings Panel to Regain Compliance with Continued Listing Requirements

Core Points - Earlyworks Co., Ltd. has received an exception from the Nasdaq Hearings Panel to continue its listing on the Nasdaq Capital Market [1] - The company failed to meet the minimum market value requirement of $35 million for 30 consecutive trading days and did not regain compliance during the 180-day grace period [2] - Earlyworks is pursuing compliance through an alternative standard that requires a minimum stockholders' equity of $2.5 million [3] Compliance Extension - The Nasdaq Hearings Panel has granted Earlyworks an extension until September 19, 2025, to regain compliance with listing standards [4] - During this extension, the company's American Depositary Shares (ADSs) will remain listed and eligible for trading [4] Compliance Requirements - By September 19, 2025, the company must file a public disclosure detailing transactions undertaken to achieve compliance with the Equity Rule, including a balance sheet and an affirmative statement of compliance [7] - The company is also required to provide income projections for the next 12 months and evidence of compliance with all applicable criteria for continued listing [7] Company Overview - Earlyworks operates proprietary private blockchain technology known as the Grid Ledger System (GLS), which features high-speed processing, tamper-resistance, and versatile applications across various industries [5] - The company's mission is to enhance GLS and establish it as an infrastructure for the emerging Web3/metaverse data society [5]