LOS ANGELES - AERWINS Technologies Inc. (NASDAQ:AWIN), a company specializing in the development of FAA-compliant manned and unmanned crafts for low-altitude flight, has received an Additional Staff Delisting Determination from the Listing Qualifications Department of The Nasdaq Stock Market LLC. The notice, dated April 17, 2024, indicates that AERWINS is delinquent in filing its Form 10-K for the fiscal year ended December 31, 2023. This delay in filing could serve as a separate basis for the delisting of the company's securities from Nasdaq.
The Additional Staff Determination comes following the discontinuation of operations by AERWINS' wholly-owned indirect subsidiary, A.L.I. Technologies Inc., a Japanese corporation. A.L.I. filed for bankruptcy on December 27, 2023, and a trustee was appointed on January 10, 2024, to commence proceedings. This subsidiary's ceased operations included various ventures such as the development of the XTURISMO limited edition hoverbike and the air mobility platform COSMOS.
In light of these events, the Nasdaq Hearings Panel is set to consider the company's eligibility for continued listing on The Nasdaq Capital Market. AERWINS is expected to present its position on the additional deficiency in writing by April 24, 2024.
Despite these challenges, AERWINS Technologies is moving forward with the development of its single-seat optionally Manned Air Vehicle (MAV), aiming to meet the Federal Aviation Administration's Powered Ultra-Light Air Vehicle Category requirements. The company has announced its intention to file the overdue Form 10-K in the coming days, as stated in its Form 8-K filed with the Securities and Exchange Commission on April 23, 2024.
This news comes at a time when AERWINS is restructuring its operations and focusing on its U.S.-based initiatives. The company has not provided any guidance on the potential outcomes of the Nasdaq Panel's review or the impact of the A.L.I. bankruptcy proceedings on its overall business strategy. The information in this article is based on a press release statement from AERWINS Technologies Inc.
InvestingPro Insights
As AERWINS Technologies Inc. (NASDAQ:AWIN) faces the challenges of a Nasdaq delisting notice and the bankruptcy of its subsidiary, A.L.I. Technologies, the company's financial health comes into sharp focus. According to InvestingPro data, AERWINS has a market capitalization of only $2.55 million USD, reflecting the significant impact of recent events on the company's valuation. Furthermore, the firm's revenue has seen a decline of 11.64% over the last twelve months as of Q1 2023, with a particularly steep quarterly revenue drop of 82.15% in Q1 2023. These figures underscore the financial difficulties AERWINS is grappling with amidst its operational setbacks.
InvestingPro Tips suggest that AERWINS operates with a significant debt burden and may have trouble making interest payments on its debt. This is particularly concerning given the company's negative gross profit margin of -33.36% over the same period, indicating that it spends more on producing its goods than it earns from their sale. Additionally, the stock's price has fallen significantly over the last year, with a 1 Year Price Total Return of -96.27% as of April 2024, reflecting investor concerns over the company's performance and future prospects.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available for AERWINS, which could provide further insight into the company's financial health and stock performance. Readers interested in these insights can find them at InvestingPro. To enhance your experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With the challenges ahead, these tips could be invaluable in making informed investment decisions concerning AERWINS Technologies.
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