OFA Group (NASDAQ: OFAL) received a Nasdaq Listing Qualifications Department letter dated December 11, 2025, announcing that its ordinary shares had closed below the required $1.00 minimum bid price for 30 consecutive business days from October 28 to December 10, 2025. The company disclosed the letter on December 17, 2025, and the notice grants a 180‑day compliance window that ends on June 9, 2026, during which OFA must maintain a closing bid price of at least $1.00 for a minimum of 10 consecutive business days.
The bid‑price deficiency signals a serious liquidity and investor‑confidence issue. If the company fails to meet the 10‑day threshold, Nasdaq may grant an additional 180‑day grace period, but the company would still need to satisfy all other listing standards and could be required to execute a reverse split. Failure to regain compliance would trigger delisting, severely limiting the company’s ability to raise capital and potentially eroding shareholder value.
OFA’s financial profile underscores why the stock has struggled to reach the $1.00 mark. For 2024 the company reported revenue of $202,007 and a net loss of $714,680, a 666.8% increase in losses from 2023. Operating and net margins were negative at –330.2% and –353.96%, respectively, and the company’s market capitalization stood at $8.96 million. These figures illustrate a business that is not generating sustainable earnings and is operating at a significant loss, which in turn depresses the share price and makes it difficult to meet Nasdaq’s minimum bid‑price requirement.
Management has highlighted strategic initiatives aimed at turning the company around. CEO Larry Wong emphasized the launch of a Digital Asset Treasury (DAT) as a “significant step in OFA’s evolution,” underscoring a pivot toward AI‑driven architectural services and real‑world asset tokenization. While these initiatives could create new revenue streams, they require substantial investment and carry execution risk, especially given the company’s current financial distress.
The Nasdaq letter places OFA under pressure to restore compliance within the 180‑day window. The company’s ability to meet the bid‑price threshold will depend on improving its financial performance, stabilizing its share price, and potentially restructuring its capital structure. Delisting would eliminate the company’s Nasdaq listing, limiting access to capital markets and potentially forcing a sale or liquidation of assets. The company’s management must therefore focus on cost control, revenue growth, and strategic execution to avoid a listing loss and preserve shareholder value.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.