Earlyworks Co., Ltd. Receives Final Extension from Nasdaq Hearings Panel to Regain Compliance with Continued Listing Standards

Core Viewpoint - Earlyworks Co., Ltd. has received a final extension from the Nasdaq Hearings Panel until October 29, 2025, to regain compliance with Nasdaq's continued listing requirements [1][3]. Compliance Status - The company was previously notified on May 2, 2025, that it did not meet the Nasdaq Listing Rule 5550(b)(2), which requires a minimum market value of listed securities of $35 million [2]. - Earlyworks is pursuing compliance through an alternative standard under Nasdaq Listing Rule 5550(b)(1), which requires a minimum stockholders' equity of $2.5 million [2]. - The Panel had granted an exception until September 19, 2025, to regain compliance with the Equity Rule, subject to certain conditions [2]. Extension Details - The Panel's decision to grant a final extension allows the company to continue working on its equity financing initiatives [3]. - If compliance is not achieved by the new deadline, the company's securities will be delisted from Nasdaq [3]. Trading Status - The company's American Depositary Shares (ADSs) will remain listed and eligible for trading on the Nasdaq Capital Market during the extension period [4]. Company Overview - Earlyworks Co., Ltd. operates proprietary private blockchain technology known as the Grid Ledger System (GLS), which is designed for various applications across multiple industries [5]. - GLS features high-speed processing of 0.016 seconds per transaction, tamper-resistance, security, and zero server downtime [5]. - The company aims to enhance GLS as an infrastructure for the upcoming Web3/metaverse-like data society [5].