CLPS Incorporation (NASDAQ: CLPS) received a notification from Nasdaq on May 27 indicating the company's stock fell below $1.00 per share for 30 consecutive trading days, violating listing requirements.

The Hong Kong-based company's closing bid price remained under the minimum threshold from April 14 through May 26, according to the press release. Nasdaq Listing Rule 5450(a)(1) requires securities to maintain a minimum bid price of $1.00 per share.

The notification does not immediately affect CLPS's current listing or trading on the Nasdaq Global Market. The company has been granted a 180-day compliance period until November 23 to regain compliance by achieving a closing bid price of at least $1.00 per share for 10 consecutive business days.

If CLPS fails to meet the requirement by the deadline, it may receive an additional 180-day period by transferring to the Nasdaq Capital Market, provided it meets listing requirements and notifies Nasdaq of its intent to implement a reverse stock split if necessary. Alternatively, the company could face delisting.

CLPS stated it intends to monitor its stock price and take measures to regain compliance, including potentially implementing a reverse share split. The company operates across 10 countries with regional hubs in Shanghai, Singapore, and California, providing services in fintech, e-commerce, education, and tourism sectors.

The notification letter will not impact the company's business operations, according to the statement.