8-K: Wetouch Faces Nasdaq Delisting Threat Over Repeated Filing Delays

Wetouch Technology Inc. received a Nasdaq notice for failing to file its latest quarterly report, compounding previous delinquencies and risking its listing.

Summary

• Wetouch Technology Inc. (WETH) received a notice from Nasdaq on August 21, 2025, for non-compliance with Listing Rule 5250(c)(1) due to the failure to timely file its Form 10-Q for the period ended June 30, 2025.
• This new delinquency adds to previously disclosed delays in filing its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and its Quarterly Report on Form 10-Q for the period ended March 31, 2025.
• Nasdaq had previously granted an exception until October 13, 2025, for the initial delinquent filings.
• Any further exception for all delinquent filings will be limited to a maximum of 180 calendar days from the due date of the initial delinquent filing, with the current deadline being October 13, 2025.
• The company is required to submit an updated plan to regain compliance to Nasdaq by September 5, 2025.
• There is no immediate effect on the listing or trading of the company's common stock on Nasdaq.
• Wetouch is working diligently to complete and file all outstanding reports as soon as practicable to regain compliance.

Sentiment

Score: 2

Explanation: The filing indicates a severe compliance issue with Nasdaq, stemming from multiple delayed financial reports. While the company states it is working to resolve the issue, the accumulation of delinquencies and the explicit risk of delisting represent a significant negative for investor confidence and operational stability. The lack of immediate delisting is the only minor positive, but the underlying problem is critical.

Positives

• No immediate effect on the listing or trading of the company's common stock on Nasdaq.
• The company intends to submit an updated plan to regain compliance and is working diligently with auditors and advisors.

Negatives

• Received a notice of non-compliance from Nasdaq for failing to file the Form 10-Q for the period ended June 30, 2025.
• This is an additional delinquency, following previous failures to file the Form 10-K for December 31, 2024, and the Form 10-Q for March 31, 2025.
• The company faces a strict deadline of October 13, 2025, to regain compliance for all delinquent filings, with any further exception limited to 180 days from the initial delinquency's due date.
• Failure to regain compliance could lead to delisting from Nasdaq.

Risks

• Risk of delisting from Nasdaq if the company fails to regain compliance with all periodic filing requirements by October 13, 2025.
• Uncertainty regarding Nasdaq's acceptance of the company's Updated Plan to regain compliance.
• Potential for adverse impact on the company's actual results, performance, or achievements due to known or unknown risks, uncertainties, and other factors beyond its control.
• No assurance that the company will regain compliance with the Listing Rule during any compliance period or in the future.

Future Outlook

The company expects to file its delinquent Form 10-K and Form 10-Q reports and aims to regain compliance with Nasdaq listing rules. However, there is no assurance that compliance will be achieved within the specified period or in the future.

Management Comments

• "The Company is working diligently to complete its Form 10-K, the First Form 10-Q, the 2nd Form 10-Q and plans to file them as promptly as practicable to regain compliance with the Listing Rule."
• "The Company intends to submit an update to the Original Plan as soon as practicable."

Industry Context

Timely filing of periodic financial reports is a fundamental requirement for all publicly traded companies listed on major exchanges like Nasdaq. Failure to comply often signals operational or internal control issues and can lead to significant investor concern and potential delisting, impacting market credibility.

Stakeholder Impact

• Shareholders: Face increased risk of delisting, which could severely impact liquidity and the value of their investment. Uncertainty regarding the company's financial health and future.
• Regulatory Authorities: Nasdaq has issued a notice of non-compliance, indicating a failure to meet regulatory obligations.
• Investors: Potential loss of confidence due to repeated filing delays and the risk of delisting.

Next Steps

• Wetouch Technology Inc. must submit an updated plan to regain compliance to Nasdaq by September 5, 2025.
• The company plans to complete and file its delinquent Form 10-K for December 31, 2024, Form 10-Q for March 31, 2025, and Form 10-Q for June 30, 2025, as promptly as practicable.
• If Nasdaq does not accept the Updated Plan, the company will have the opportunity to appeal that decision to a Nasdaq Hearings Panel.

Key Dates

Recommendation

The company is facing a critical situation with multiple delinquent financial filings and a direct notice of non-compliance from Nasdaq, explicitly stating a risk of delisting if compliance is not regained by October 13, 2025. While there is no immediate effect on trading, the accumulation of these issues signals severe internal control and operational problems. The explicit mention of 'no assurance that the Company will regain compliance' further amplifies the risk. For a seasoned investor, the potential for delisting and the lack of transparency due to unfiled reports make this a high-risk investment with significant downside potential, warranting a strong sell recommendation.

Keywords

Wetouch Technology Inc., WETH, Nasdaq, non-compliance, delisting, SEC filings, Form 10-Q, Form 10-K, financial reporting, listing rules, corporate governance