NEW YORK - Fresh2 Group Ltd. (NASDAQ: FRES), a business-to-business e-commerce and supply chain management company catering to the restaurant and food industry, disclosed Monday that it has been alerted by Nasdaq regarding non-compliance with listing rules due to a delay in filing its annual report.
The company was notified by the Listing Qualifications Department of The Nasdaq Stock Market on April 18, 2024, about its failure to file the Annual Report on Form 10-K for the fiscal year ended December 31, 2023, in a timely manner. This delay breaches Nasdaq's Listing Rule 5250(c)(1), which mandates the prompt filing of all required periodic financial reports.
In response to the notice, Fresh2 has been given 60 days to submit a plan to regain compliance. The company has announced its intention to present this plan by June 17, 2024.
If Nasdaq accepts the company's compliance plan, Fresh2 may receive an extension of up to 180 calendar days from the original due date of the Form 10-K to meet the listing rule requirements, potentially until October 14, 2024. Should Nasdaq reject the plan, Fresh2 retains the right to appeal the decision before a Hearings Panel.
Fresh2 Group Limited specializes in the online transformation of the restaurant supply industry, focusing on reducing procurement costs and enhancing operational efficiency for restaurants. The company leverages advanced supply chain management systems and digital technologies to add value to the food industry and foster a global network of digital-era restaurateurs.
The information in this news article is based on a press release statement from Fresh2 Group Ltd. and does not include any promotional content or endorsement of the company's claims. The company's forward-looking statements contained in the press release reflect management's current expectations and projections, which are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those anticipated.
InvestingPro Insights
Fresh2 Group Ltd. (NASDAQ: FRES) has faced challenges recently, as reflected in its compliance issues with Nasdaq's listing rules. While the company works on regaining its footing, an examination of its financial health and stock performance is crucial for investors. Here are key insights derived from InvestingPro data and tips that shed light on the company's current situation:
InvestingPro Data reveals a market capitalization of $8.19 million USD, indicating a relatively small player in the industry. The company's revenue growth is impressive at 94.5% for the last twelve months as of Q2 2023, showcasing a strong increase in sales. Still, this growth is overshadowed by significant operating losses, with an operating income margin of -698.85% for the same period. This suggests that despite increasing sales, profitability remains a major concern.
InvestingPro Tips highlight that analysts are expecting sales growth in the current year, which could be a positive sign for future performance. Nevertheless, the company is quickly burning through cash and has short-term obligations that exceed its liquid assets, raising questions about its financial stability. Moreover, the stock has experienced a steep decline over the last month, with a one-month price total return of -50.67%, reflecting investor concerns.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips, including insights on the company's valuation, debt levels, profitability, and dividend policy. There are 11 more InvestingPro Tips available for Fresh2 Group Ltd., which can be found at https://www.investing.com/pro/FRES. To gain access to these valuable insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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