Lithium battery maker Valence Technology Inc. said Thursday that its financial statements for the fiscal year that ended April 30 contain a "going concern" qualification from its independent auditor.
A going-concern qualification refers to a company's ability to continue to operate indefinitely. The company received a "going concern" qualification for the prior fiscal year as well.
Valence disclosed the information in compliance with Nasdaq rules.
Shares of the company rose 32 cents, or 9.6 percent, to $3.89 in afternoon trading even as the broader markets posted sharp declines.
In a phone interview, Wm Smith and Co. analyst Ed Einboden said the stock's rise "could correlate with the move in the price of oil and higher focus toward renewable energy."
Oil futures rose above $140 on Thursday.
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