Denver-based RFID Ltd., said Friday the cost of remaining publicly traded was too great, and it is not generating enough revenue to cover expenses, reports Denver Business Journal.
“RFID Ltd. has undergone a major resource loss of both operating capital and human capital,” the company’s written statement said, noting that the trend has hurt its ability to generate necessary revenue.
The once-flourishing company’s share price plummeted 58 percent in morning trading Monday, to 0.012 cent per share.
RFID Ltd. Inc. was formed and went public in 2005 through a reverse merger with Packaged RFID Inc. It mainly relied on contract labor. Much of its operating revenue came from the sale of shares, the company reported.
RFID Ltd.’s original aim was to help RFID manufacturers comply with standards for RFID systems established by major retailers such as Wal-Mart Stores Inc. and by the Department of Defense. Wal-Mart and many of its competitors have slowed their RFID adoption, the Journal reports.