Greenwave reports loss, seeks to maintain Nasdaq listing

Chesapeake, Virginia-based Greenwave Technology Solutions, which operates about a dozen metals recycling facilities in Virginia, North Carolina and Ohio, has reported another money-losing financial quarter and continues to face hurdles to maintaining its stock listing on the Nasdaq exchange.

In mid-November, Greenwave received a Staff Determination Letter from the Nasdaq Listing Qualifications Staff pertaining to the company’s tardiness in filing quarterly reports.

The day after receiving that letter, Greenwave filed its Form 10-Q financial statement with the Securities and Exchange Commission (SEC) for the first quarter of this year. The company says it is actively working toward the filing of the quarterly reports for the second and third quarters of this year to ensure full compliance with the filing rule.

Greenwave previously maneuvered to maintain its Nasdaq listing when notified that its stock price had remained below a $1 per share threshold. In two such cases, Greenwave executed reverse stock splits to bring its share price to more than $1 per share.

In its first-quarter earnings statement, Greenwave indicates it suffered a net loss of more than $4.6 million while garnering revenue of more than $7.3 million.

The metals recycling company, which often operates under the Empire Services name, has an auto shredder in Kelford, North Carolina, and has announced the installation of another shredder in Carrollton, Virginia.

However, it has struggled to turn its processing investments into profits. According to its 10-Q filings, Greenwave might not have had a profitable financial quarter since the fourth quarter of 2021.

As have previous SEC filings, the one for the first quarter of this year includes a comment that some of its financial conditions raise "substantial doubt" about the company’s ability to continue as a going concern for one year from the issuance of the unaudited condensed consolidated financial statements.

Greenwave now has $5.5 million in cash on hand, a larger amount than in some previous filings. However, the firm also cites a working capital deficit of nearly $7.5 million and an accumulated deficit as of March 31 of more than $500 million.