CooTek (Cayman) Inc. (CTK) stock gained 22.15% in the after-hours, finally entering green after more than a week. The stock has been trading in the red since the company posted its Q3 earnings on December 08.
In the regular trading session, the stock lost 10.37% at the closing price of $0.4831. The tides turned in the after-hours, as the stock went up to reach $0.5901 at 1.15M shares.
Currently, the 62.28 million outstanding shares of CTK trade at a market capitalization of $36.22 million.
CTK stock Movement
The CTK stock has been in the red since a day before the company announced its Q3 earnings. The deficient earnings did nothing but plunge it further down in the red. Trading and closing below the price of $1.00 for a long time, resulted in the company receiving a non-compliance letter. Moreover, the company announced the receipt of the NYSE non-compliance letter on December 13. Hence, this news did not help the stock at all, as it continued to trade in the red. Consequently, the stock lost 25.68% in the previous five days alone.
Currently, the stock seems to be finally rebounding after being in the red for so long. CTK started trading in the green during the aftermarket on Wednesday.
Non-Compliance Letter
On December 13, CTK announced receiving a letter from the New York Stock Exchange, dated December 06. As per the letter, CTK’s American Depository Shares (ADSs) price is below the compliance standard of $1.00 or above. Further, the non-compliance letter was issued as the ADSs closed at a price below $1.00 for over 30 days consecutively. Moreover, the company has six months to bring the ADS price to or above $1.00 for regaining compliance. If CTK failed to regain compliance within the due period, NYSE will start suspension and delisting protocol.
Moreover, the company announced that it will monitor market conditions closely and overview its options.
CTK’s Financials
The company announced its third-quarter unaudited financial results on December 08, 2021. CTK had revenue of $51.1 million in the third quarter of 2021, against $105.7 million in the year-ago quarter. This shows a decrease of 52% year-over-year.
Further, the gross profit margin decreased by 58% year-over-year to $42.0 million, against $98.9 million a year ago.
In addition, the adjusted net income was $0.4 million, against $1.1 million in the previous quarter of 2021.
