J‑Star Holding Co., Ltd. (NASDAQ: YMAT) received a Nasdaq notification letter dated December 12, 2025, confirming that the company’s closing bid price had fallen below the required $1.00 threshold for 30 consecutive business days. The company publicly disclosed receipt of the letter on December 16, 2025.
Under Nasdaq Listing Rule 5550(a)(2), a company must maintain a minimum bid price of $1.00 per share. Nasdaq granted J‑Star a 180‑day compliance period, during which the company must restore the bid price to $1.00 for at least ten consecutive business days. Failure to meet this requirement could trigger delisting from the Nasdaq Capital Market.
J‑Star, a manufacturer of carbon‑fiber and composite components for sports equipment, automotive parts, and healthcare devices, reported 2024 revenue of $17.56 million, down 26.13% from $23.78 million in 2023, and earnings of $1.10 million, a 22.16% decline from the prior year. The company’s product mix has shifted toward lower‑margin consumer goods, and supply‑chain constraints have pressured pricing, contributing to the sustained bid‑price deficiency.
Management said it is evaluating options to regain compliance, including a potential reverse stock split or other capital‑structure adjustments. The company’s IPO on July 30, 2025, and its current market position make a reverse split a likely path to restore the bid price, but recent Nasdaq rule changes may shorten the window for such remedies.
The notice underscores the fragility of J‑Star’s market valuation and signals heightened scrutiny from investors and regulators. The company’s ability to navigate the compliance period will determine whether it can remain listed and continue to access capital markets.
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