Failure to Satisfy Listing Rule (Form 8-K)

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On May 30, 2025, Artesian Resources Corporation (the "Company") received a written notice (the "Notice") from the Nasdaq Stock Market LLC ("Nasdaq") indicating that the Company is no longer in compliance with Nasdaq Marketplace Rule 5605(b)(1), which requires that a majority of the Company's Board of Directors (the "Board") be "independent directors" as defined in Nasdaq Marketplace Rule 5605(a)(2) (the "Majority Independent Board Requirement") and Nasdaq Marketplace Rule 5605(c)(2), which requires the Company to have an audit committee composed of at least three "independent directors" as defined in Nasdaq Marketplace Rule 5605(a)(2) (the "Audit Committee Composition Requirement").

The Notice resulted from a director resignation effective at the conclusion of the Company's 2025 annual meeting of stockholders on May 6, 2025 that was disclosed by the Company in a Form 8-K filed with the Securities and Exchange Commission on February 7, 2025.

The Governance and Nominating Committee of the Board is conducting a search to identify and appoint a qualified independent director to fill the existing vacancy on the Board and the Audit Committee of the Board as expeditiously as possible. In the meantime, the Company is relying on the cure period set forth in Nasdaq Marketplace Rule 5605(b)(1), with respect to the Majority Independent Board Requirement and the cure period set forth in Nasdaq Marketplace Rule 5605(c)(4), with respect to the Audit Committee Composition Requirement, each of which gives the Company until the earlier of its next annual meeting of stockholders or May 6, 2026 (or, if the next annual meeting of stockholders is held before November 3, 2025, then not later than November 3, 2025) to satisfy each of these Nasdaq requirements.

There can be no assurance that the Company will be able to regain compliance within the specified cure period.