INNO HOLDINGS INC. Material Event - What Happened

Hey everyone, let's break down some big news from INNO HOLDINGS INC. in a way that makes sense, without all the confusing finance talk. Think of this as me explaining it to you over coffee.

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1. What happened? (The actual event, in plain English)

Basically, INNO HOLDINGS just completed a "reverse stock split." This means they essentially swapped out a bunch of their old shares for fewer, more valuable new shares. Specifically, for every 24 shares an investor owned, they now own 1 new share.

2. When did it happen?

The company officially filed the paperwork for this on December 18, 2025, and the split became effective at 12:01 a.m. on December 22, 2025.

3. Why did it happen? (The story behind the event)

So, why did this all go down? Well, while the company didn't explicitly state the reason in this filing, companies usually do a reverse stock split to increase their stock price. Often, this is because their stock price has fallen very low, and they need to get it back above a certain level (like $1.00 per share) to meet the minimum requirements to stay listed on a major stock exchange, such as Nasdaq. By reducing the number of shares available, each remaining share becomes a larger piece of the company, theoretically increasing its price per share.

4. Why does this matter? (The "so what?" for INNO HOLDINGS)

This isn't just some small detail; it could have a real impact on INNO HOLDINGS. Here's why it's a big deal: The main goal is likely to boost their stock price to avoid being delisted from the Nasdaq stock market. If a company's stock trades below a certain price for too long, it can be removed from the exchange, which makes it harder for investors to buy and sell shares. While a reverse split doesn't change the total value of the company, it changes how that value is divided among fewer, more expensive shares. It's a way to "clean up" the stock price and make it look more appealing or meet exchange rules.

5. Who is affected? (Beyond just the company)

This event doesn't happen in a vacuum. Here's who might feel the ripple effects:

• Customers: Not directly affected by this.
• Employees: Not directly affected by this.
• Investors/Shareholders: This is where the biggest impact is.
  • If you owned 24 shares, you now own 1 share. If you owned, say, 48 shares, you now own 2.
  • The total value of your investment should remain the same immediately after the split (e.g., if your 24 shares were worth $0.50 each, totaling $12, your 1 new share should theoretically be worth $12).
  • However, the stock price per share will be much higher.
  • Fractional shares (if you owned, say, 25 shares, you'd get 1 new share and a fractional share) are being rounded up to the next whole number, which is a small benefit for those with fractional amounts.
  • The total number of outstanding shares has dramatically reduced from about 97,948,480 shares to roughly 4,081,224 shares.
• Competitors: Not directly affected.

6. What happens next? (The immediate and future implications)

So, what should we expect to see unfold from here? The split has already taken effect. Now, the market will react to the new, higher share price. Investors will be watching to see if the stock can maintain a price above the minimum listing requirements for Nasdaq. The company will also need to continue to improve its underlying business performance to justify the new share price in the long term.

7. What should investors/traders know? (Practical takeaways)

For those of you who own INNO stock or are thinking about it, here's what to keep in mind:

• Don't panic (or get overly excited) immediately: While the share price will jump, the total value of your holdings should be the same right after the split. It's not a magical way to create value.
• Look at the bigger picture: This move is often a sign that the company was struggling to maintain its stock price. While it helps meet listing requirements, it doesn't solve any underlying business problems. You'll want to see if the company's financial performance improves.
• Keep an eye on future announcements: Watch for news about the company's financial health and whether the stock price can stay above exchange minimums.
• Consider your own goals: Does this news change your personal reasons for investing in INNO? For long-term investors, this might be a necessary step for the company to remain publicly traded. For traders, the immediate price action might be volatile.

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We'll keep you updated as more information comes out. For now, that's the plain-English breakdown of what happened at INNO HOLDINGS INC.