On February 18, Senmiao Technology Ltd. (AIHS) filed two reports with the SEC, S- 3/A and 8-K Current Report. As per the 8-K Current Report, the company received a notification letter from Nasdaq on its failure to regain compliance. Consequently, the stock descended further in the after-hours on Friday.
The stock remained in the red with a loss of 4.29% during the regular session. AIHS closed the session at $0.2899 while 210.86K shares exchanged hands. The day’s volume remained below its average of 323.83K. Following the SEC filings, the stock went down by a further 6.66% in the after-hours session. Hence, AIHS stock was trading at $0.2706 apiece in the after-hours on Friday.
Focused on the ride-hailing industry, Senmiao Technology Ltd. facilitates automobile transactions and related services. Currently, the China-based company has a market capitalization of $17.91 million. Its 61.78 million outstanding shares have declined by 21.65% year to date while losing 84.24% last year.
AIHS’s Nasdaq Non-Compliance
As per the company’s filing of August 16, 2021, the company was notified of its non-compliance with Nasdaq listing rules. The company’s minimum bid price had been below $1 for consecutive 30 days. Nasdaq provided the company with a 180-days grace period for regaining compliance, through February 14, 2022.
Therefore, on February 15, Nasdaq notified the company of delisting its securities from the exchange due to continued non-compliance. AIHS would have been eligible for an extended 180-day grace period for regaining compliance if it were in compliance with the rest of the listing rules. But, the company is also in non-compliance with the $50,000,000 MVLS initial listing requirement.
Furthermore, the notification also provided the option of appeal by requesting a hearing before the Panel to seek continued listing. In case no appeal is requested, AISH common stock will be suspended on February 24, 2022.
Hence, on February 17, the company submitted its request for the Hearing and intends to submit a plan for regaining compliance.
Fiscal 2022 Q3 Results
On February 15, the company declared its financial results for the fiscal third quarter of 2022, which ended December 31, 2021.
In fiscal Q3 2022, the company had total revenues of $3.5 million, against $1.6 million in the year-ago quarter. This marks a YOY growth of 116%.
Moreover, AIHS had a net loss of $0.1 million from continuing operations in fiscal Q3 2022, against $3.7 million in the year-ago period.
