September 23, 2024
Orion Receives Third Nasdaq Delisting Notice in a Year
Wisconsin-based company faces ongoing challenge of maintaining stock price above $1 threshold
Orion Energy Systems, Inc. received a delisting notice from Nasdaq on September 20, marking the third time in less than a year that the Wisconsin-based provider of LED lighting products, services, and EV charging solutions has faced such a notice.
This latest action follows 29 consecutive trading days during which Orion's share price remained below Nasdaq's $1.00 minimum bid price requirement. As of the September 20 market close, the stock was trading at $0.87 per share, having fallen below the $1 mark since August 8, 2024. This drop comes after the stock traded above $1.00 for June and July, reaching a high of $1.53 on June 21, a level not seen since August 2023.
Orion's stock will continue trading on the Nasdaq Capital Market under the "OESX" symbol while the company takes steps to regain compliance. According to the notification letter, Orion has 180 calendar days, or until March 19, 2025, to achieve compliance by maintaining a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business days.
Volatile Stock Performance
This latest delisting notice follows similar warnings issued in December 2023 and April 2024. Orion initially received a non-compliance notice on Dec. 21, 2023, but successfully regained compliance by Jan. 25, 2024. However, the company once again dipped below the $1.00 threshold and received a second notice on April 5, 2024. Despite experiencing temporary improvement in stock price earlier this summer, the recent decline triggered the third notice.
Last week’s notification grants Orion a 180-day grace period, ending on March 19, 2025. If the company does not meet the minimum bid price requirement by that date, it could potentially receive a second compliance period, provided it meets the Nasdaq Capital Market's initial listing criteria (except for the bid price rule) and outlines a clear plan to resolve the deficiency, such as implementing a reverse stock split.
Financial Performance Amid Challenges
Despite ongoing challenges with its stock price, Orion maintains a significant presence in the LED lighting and EV charging markets, with fiscal 2024 revenue reported at $90.6 million. However, the company faced financial setbacks, incurring a $6.3 million loss for the most recent fiscal year. In its fiscal 2025 first quarter, which concluded on June 30, Orion saw a 13% revenue increase compared to the previous year but remains challenged profit-wise, experiencing a $0.12 loss per share.
Orion's management has affirmed its commitment to growing revenue while maintaining cost discipline. This approach, according to the company, will help it meet Nasdaq's bid price requirements in the coming months. Nevertheless, maintaining compliance remains a critical focus, especially as it confronts the possibility of implementing measures such as a reverse stock split if the share price does not rebound.
