TEN Holdings, Inc. (NASDAQ: XHLD) will carry out a 1‑for‑15 reverse stock split of its common stock, effective at 4:30 p.m. Eastern Time on December 1, 2025. The action will reduce the number of shares outstanding from roughly 44.8 million to about 3.0 million and will change the company’s CUSIP to 880245204. Shareholders will receive a cash payment for any fractional shares that would result from the split.
The reverse split is a direct response to a Nasdaq deficiency letter issued on June 30, 2025, which noted that XHLD’s bid price had closed below the required $1.00 threshold for 30 consecutive business days. The company has until December 29, 2025 to regain compliance, and the split is intended to lift the share price above the minimum level while also improving liquidity and marketability. The move is part of a broader effort to address the company’s going‑concern warning and stabilize its capital structure.
Financially, XHLD’s most recent quarter (Q3 2025) reported revenue of $543,000 and a net loss of $1.987 million, a 1.5% year‑over‑year increase in revenue but a widening loss. The prior quarter (Q2 2025) saw revenue of $1.116 million and a net loss of $2.784 million. For the full year 2024, revenue was $3.5 million, down 5.8% from 2023. The losses are driven largely by higher operating expenses associated with public‑company costs—legal, compliance, and investor‑relations fees—as well as one‑time transaction costs and increased interest expenses. The company’s negative EBITDA of $9.08 million and a current ratio of 0.48 underscore liquidity pressures.
CEO Randolph Wilson Jones III said, "We are building a stronger, more resilient company positioned to deliver innovative solutions, expand our market reach, and create lasting value for our shareholders." The statement reflects the company’s focus on restructuring its operations and pursuing new revenue streams, such as a platform‑as‑a‑service model for event planning, production, and broadcasting services across virtual, hybrid, and physical formats.
The reverse split will consolidate the share count but does not alter the company’s authorized shares, leaving the possibility of future dilution. While the split may help XHLD maintain its Nasdaq listing, it does not resolve the underlying financial challenges. Investors will continue to monitor the company’s ability to control costs, generate revenue growth, and secure additional financing to support its long‑term strategy.
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