Announcement • Apr 25
Mannatech Incorporated Receives Notice of Non-Compliance with Nasdaq Listing Rule
On April 20, 2026, Mannatech, Incorporated (the Company) received written notification (the Notice) from the Listing Qualifications Department of the Nasdaq Stock Market LLC (Nasdaq) notifying the Company that it is not in compliance with Nasdaq Listing Rule 5550(b)(1) (the Rule), which requires listed companies on the Nasdaq Capital Market to maintain minimum stockholders' equity of $2,500,000. As reported in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission, the Company's stockholders' equity (deficit) as of December 31, 2025, was ($5,223,000), which is below the minimum $2,500,000 threshold required by the Rule. This represents a deficiency of approximately $7.7 million relative to the required threshold. As of the date of this report, the Company also does not satisfy the alternative continued listing standards based on a market value of listed securities of at least $35,000,000, or net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal years. The Notice does not result in the immediate delisting of the Company's common stock from the Nasdaq Capital Market. Pursuant to Nasdaq Listing Rule 5810(c)(2), the Company has been provided 45 calendar days from the date of the Notice, or until June 4, 2026, to submit a plan to Nasdaq to regain compliance with the Rule. If Nasdaq accepts the compliance plan, Nasdaq may grant the Company an extension of up to 180 calendar days from the date of the Notice, or until October 17, 2026, to evidence compliance with the Rule. The Company intends to timely submit a compliance plan to Nasdaq. The compliance plan will describe the specific actions the Company intends to take to restore stockholders' equity to at least $2,500,000, including: intercompany balance restructuring transactions previously authorized by the Board of Directors and Audit Committee; potential equity contributions or capital transactions; and operational cost reduction measures already implemented as of the date of this report. There can be no assurance, however, that Nasdaq will accept the Company's compliance plan, that any extension will be granted, or that the Company will ultimately regain compliance with the Rule within any applicable timeframe. If Nasdaq does not accept the compliance plan, the Company will have the opportunity to appeal the determination to a Nasdaq Hearings Panel pursuant to Nasdaq Listing Rule 5815(a). During any such appeal, the Company's common stock would remain listed on the Nasdaq Capital Market, subject to the Hearings Panel's determination. Pursuant to Nasdaq Listing Rules, Nasdaq will include the Company on the list of non-compliant companies posted on Nasdaq's website beginning April 27, 2026, and an indicator reflecting the Company's non-compliance will be broadcast over Nasdaq's market data dissemination network. The Company is committed to taking all reasonable steps available to regain compliance and maintain its listing on the Nasdaq Capital Market. The Company will continue to assess available options to restore stockholders' equity to the required level and will make additional disclosures as required by applicable securities laws and regulations.
