CarParts.com, Inc. Material Event - What Happened

Hey everyone, let's break down some recent news about CarParts.com, Inc. in a way that makes sense, without all the confusing business talk. Think of this as me explaining it to you over coffee.

---

1. What happened? (The Big News)

Okay, so CarParts.com, the online store where you can buy all sorts of car parts, just had a pretty significant event regarding its stock listing. Their stock price had fallen below Nasdaq's minimum requirement, which put them at risk of being removed from the exchange. To avoid this, they successfully applied to move their stock listing to a different segment of Nasdaq, called The Nasdaq Capital Market. This move bought them more time to get their stock price back up.

Separately, the company's Board of Directors also set the date for their 2026 annual shareholder meeting, which changed some important deadlines for shareholders who want to propose actions or nominate directors.

2. When did it happen?

This situation has been unfolding for a while:

• June 13, 2025: CarParts.com first received a warning from Nasdaq that its stock price was too low.
• December 9, 2025: The company applied to transfer its listing to The Nasdaq Capital Market.
• December 10, 2025: The Board scheduled the 2026 annual meeting.
• December 15, 2025: Nasdaq approved the transfer.
• December 16, 2025: The transfer of the stock listing officially took effect.
• They now have until June 8, 2026, to fix their stock price issue.

3. Why did it happen? (The Backstory)

So, why did this all go down? The main reason for the listing change is that CarParts.com's stock price had been trading below $1.00 per share for 30 consecutive business days. Nasdaq has a rule that companies listed on its exchange must maintain a minimum bid price of $1.00. Falling below this threshold triggers a warning and a deadline to fix it. By transferring to The Nasdaq Capital Market, CarParts.com was able to get an extension on that deadline, giving them more time to try and boost their stock price.

The change in the annual meeting date is a separate, routine corporate governance matter, but it's important for shareholders to know about the new deadlines.

4. Why does this matter? (The "So What?")

This isn't just some small detail; it could actually change things for CarParts.com.

• Avoiding Delisting: The biggest deal here is that CarParts.com avoided being delisted from Nasdaq, which would be a serious blow to the company's reputation and could make it harder for investors to trade its stock.
• Temporary Fix: While the transfer to The Nasdaq Capital Market buys them time, it's a temporary solution. The company still needs to get its stock price above $1.00 for at least 10 consecutive business days by June 8, 2026.
• Perception: Although The Nasdaq Capital Market operates similarly to The Nasdaq Global Select Market, some investors might perceive a move to a different market segment as a sign of weakness.
• Potential Reverse Stock Split: The company mentioned that it might consider a "reverse stock split" if necessary. This is when a company reduces the number of its outstanding shares, which increases the price per share. While it can help meet listing requirements, it doesn't change the overall value of the company and can sometimes be seen as a negative sign by investors.
• Shareholder Participation: The new annual meeting date means shareholders need to be aware of updated deadlines if they plan to submit proposals or nominate directors.

5. Who is affected?

A lot of people could feel the ripple effects of this:

• Customers: This event is unlikely to directly affect customers or the products they buy from CarParts.com.
• Employees: There's no immediate direct impact on employees from this listing change, but a struggling stock price can sometimes create uncertainty.
• Investors/Shareholders: People who own stock in CarParts.com are definitely the most affected. They need to pay close attention to the stock price, the upcoming deadline, and the possibility of a reverse stock split. The new annual meeting date also impacts their ability to participate in corporate governance.
• Competitors: Other companies selling car parts online will be paying attention to CarParts.com's financial health and stock performance.

6. What happens next? (Looking Ahead)

Now that this has happened, what should we expect?

• CarParts.com will be actively monitoring its stock price to ensure it meets the $1.00 minimum for 10 consecutive business days by June 8, 2026.
• We should watch for any announcements regarding their strategy to boost the stock price, including the potential for a reverse stock split.
• The 2026 annual meeting is scheduled for May 11, 2026, and the company will provide more details about it, including the exact time, location, and topics to be voted on.

7. What should investors/traders know? (Your Takeaways)

If you own CarParts.com stock, or you're thinking about buying or selling it, here's the practical stuff:

• The company is under pressure to get its stock price up. While the market transfer bought them time, the underlying issue remains.
• Be aware that a reverse stock split is a possibility. This can temporarily boost the share price but doesn't change the company's fundamental value. It's often a sign of a company facing challenges.
• This news could cause the stock price to be volatile as the deadline approaches.
• If you're an active shareholder, note the new deadlines for submitting proposals or director nominations for the 2026 annual meeting.
• Always do your own homework before making any trading decisions! Look into why the stock price has been low and what the company's long-term plans are.

---

Hopefully, that helps clear things up! We'll keep an eye on CarParts.com and let you know if anything else major happens.