Asset Entities Faces Nasdaq Delisting Warning

TL;DR

Nasdaq's coming for Asset Entities' stock - they might get delisted.

AI Summary

Asset Entities Inc. announced on May 23, 2024, that it received a notice from the Nasdaq Stock Market indicating a failure to meet continued listing requirements. The company is currently evaluating its options to regain compliance and avoid delisting.

Why It Matters

This notice from Nasdaq could lead to the delisting of Asset Entities' stock, potentially impacting its liquidity and investor confidence.

Risk Assessment

Risk Level: high — Receiving a delisting notice from a major stock exchange like Nasdaq significantly increases the risk for investors due to potential loss of market access and reduced liquidity.

Key Numbers

• 001-41612 — SEC File Number (Identifies the company's filings with the SEC.)
• 88-1293236 — IRS Employer Identification No. (Company's tax identification number.)

Key Players & Entities

• Asset Entities Inc. (company) — Registrant
• Nasdaq Stock Market (company) — Exchange issuing delisting notice
• May 23, 2024 (date) — Date of earliest event reported
• 001-41612 (other) — SEC File Number
• 88-1293236 (other) — IRS Employer Identification No.

FAQ

Key Financial Figures

• $0.0001 — hich registered Class B Common Stock, $0.0001 par value per share ASST The Nasdaq
• $2,500,000 — g Rule 5550(b) to maintain a minimum of $2,500,000 in stockholders' equity for continued l
• $1,862,255 — ompany reported stockholders' equity of $1,862,255 in its Quarterly Report on Form 10-Q fo
• $2.5 m — any's stockholders' equity is now above $2.5 million, and pending Nasdaq review, belie
• $5,000,000 m — ly, the Company did not comply with the $5,000,000 minimum stockholders' equity initial list
• $1.00 — stock split and, thereafter, maintain a $1.00 closing bid price for a minimum of ten
• $3,000,000 — Stock"), for maximum gross proceeds of $3,000,000. Pursuant to the Purchase Agreement, th
• $1,500,000 — g on May 24, 2024 for gross proceeds of $1,500,000. As a result of this transaction, the C
• $2.5 million — Company's stockholders' equity is above $2.5 million and it meets the requirement under the

Filing Documents

• ea0207210-8k_asset.htm (8-K) — 29KB
• 0001213900-24-048521.txt ( ) — 202KB
• asst-20240523.xsd (EX-101.SCH) — 3KB
• asst-20240523_lab.xml (EX-101.LAB) — 33KB
• asst-20240523_pre.xml (EX-101.PRE) — 22KB
• ea0207210-8k_asset_htm.xml (XML) — 4KB

01

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. On May 23, 2024, Asset Entities Inc., a Nevada corporation (the "Company"), received a written notification (the "Notice") from the Listing Qualifications Department (the "Staff") of The Nasdaq Stock Market LLC ("Nasdaq") informing the Company that it no longer complies with the requirement under Nasdaq Listing Rule 5550(b) to maintain a minimum of $2,500,000 in stockholders' equity for continued listing on The Nasdaq Capital Market (the "Stockholders' Equity Rule") because the Company reported stockholders' equity of $1,862,255 in its Quarterly Report on Form 10-Q for the period ended March 31, 2024, and, as of the date of the Notice, the Company did not meet the alternatives of market value of listed securities or net income from continuing operations. Accordingly, the Notice indicates that this matter serves as an additional basis for delisting the Company's securities from Nasdaq. However, as a result of the financing transaction described below, the Company's stockholders' equity is now above $2.5 million, and pending Nasdaq review, believes it exceeds the requirement under the Stockholders' Equity Rule as of the date of this filing. The Notice provides that it is formal notification that the Nasdaq Hearings Panel (the "Panel") will consider this matter in their decision regarding the Company's continued listing on The Nasdaq Capital Market, and that the Company should present its views with respect to this additional deficiency to the Panel in writing no later than May 30, 2024. The Notice is in addition to the previously-disclosed prior written notification that the Company received from the Staff on September 28, 2023 notifying the Company that it was not in compliance with the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market (the "Bid Price Rule") . In accordance with

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: May 31, 2024 ASSET ENTITIES INC. /s/ Arshia Sarkhani Name: Arshia Sarkhani Title: Chief Executive Officer and President 2

View Full Filing

View this 8-K filing on SEC EDGAR