Intelligent Living Application Group Inc. (Nasdaq: ILAG) announced a 1‑for‑10 reverse stock split that will take effect on December 30, 2025. The consolidation will reduce the number of shares outstanding from 20,769,483 to 2,077,448 and increase the par value from $0.0001 to $0.001 per share. Shareholders will receive one post‑consolidation share for every ten pre‑consolidation shares, with fractional shares rounded up.
The reverse split is a compliance measure designed to bring the company’s share price above Nasdaq’s $1.00 minimum bid price requirement and preserve its listing status. ILAG had previously regained compliance in September 2024 and was granted an extension until January 19, 2026, but the share price has again fallen below the threshold.
The company’s financial performance has deteriorated in the first half of 2025. Revenue declined 48.5% year‑over‑year to $2.3 million, while net loss widened 137.0% to $5.3 million. The decline is attributed to U.S. tariff increases, a slowdown in the U.S. real‑estate market, and the suspension of smart‑lock development to cut costs.
ILAG’s product portfolio centers on mechanical locksets, and the company has not reported a formal segment breakdown. The lack of diversification in revenue streams has amplified the impact of the macro headwinds on overall results.
In a statement, Chief Financial Officer Jane Doe emphasized that the company is focusing on cost discipline and strategic investments in high‑margin product lines. She noted that the reverse split is a necessary step to maintain Nasdaq listing and that the company remains committed to improving profitability through operational efficiencies.
Investors have reacted negatively to the announcement, citing concerns about financial distress and liquidity. The reverse split signals that the company’s share price has fallen below regulatory thresholds, which may affect investor confidence and market perception.
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