TOKYO, Sept. 23, 2025 (GLOBE NEWSWIRE) -- Earlyworks Co., Ltd. (Nasdaq: ELWS) (the “Company” or “Earlyworks”), a Japanese company operating its proprietary private blockchain technology, Grid Ledger System (“GLS”), today announced that it has received a decision from the Nasdaq Hearings Panel (the “Panel”) granting the Company a final extension through October 29, 2025, to regain compliance with the continued listing requirements for the Nasdaq Capital Market. As previously disclosed, the Company had receiv ...

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]

Core Viewpoint - Earlyworks Co., Ltd. is facing delisting from the Nasdaq Capital Market due to its market value falling below the required $35 million for 30 consecutive trading days, and it did not regain compliance during the 180-day grace period [2][3] Group 1: Delisting and Compliance - The Nasdaq determined to delist Earlyworks' securities as it failed to meet the minimum market value requirement [2] - The company has until May 9, 2025, to appeal the delisting decision, or trading of its American Depositary Shares will be suspended on May 13, 2025 [3][4] - Earlyworks is considering an appeal and has plans to request a hearing to stay the suspension and delisting process [4] Group 2: Financial Strategy and Compliance - The company is exploring options to meet the equity standard of at least $2.5 million in shareholders' equity to regain compliance with Nasdaq's listing standards [5] - Earlyworks is evaluating strategic options, including third-party allotments and business alliances, to strengthen its financial base [5] - The company is in discussions with potential investors to enhance its capital structure [7] Group 3: Business Development and Growth - Earlyworks is committed to enhancing shareholder value and is engaged in discussions with leading Japanese companies across various sectors to co-develop services powered by its Grid Ledger System (GLS) [6] - The company aims to accelerate these initiatives in the coming quarters to contribute to business growth [6] - Earlyworks is making progress in securing strategic financing to support sustainable scaling and enhance shareholder value [7] Group 4: Technology Overview - Earlyworks operates its proprietary private blockchain technology, GLS, which features high-speed processing, tamper-resistance, and versatile applications across multiple industries [8] - GLS is designed to serve as an infrastructure for the upcoming Web3/metaverse-like data society [8]