Announcement • Aug 17
Nexalin Technology, Inc. Receives Nasdaq Notice of Non-Compliance with Continued Listing Requirements
On August 14, 2026, Nexalin Technology, Inc. (the Company) received a letter (the Letter) from the Listing Qualifications Staff (the Staff) of The Nasdaq Stock Market LLC (Nasdaq) notifying the Company that, based on the stockholders' equity of $1,519,423 reported in the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2026, the Company no longer satisfies the minimum stockholders' equity requirement of $2,500,000 for continued listing on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(b)(1) (the Stockholders' Equity Requirement). The Letter further notes that the Company does not presently satisfy either of the alternative continued listing standards under Nasdaq Listing Rule 5550(b) (such non-compliance, the Stockholders' Equity Deficiency). As previously disclosed on July 24, 2026, the Company received a Staff Determination letter from Nasdaq (the Delisting Notice) stating that the Company has not regained compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2) (the Minimum Bid Price Requirement) and is not eligible for an additional compliance period under Nasdaq Listing Rule 5810(c)(3)(A) because the Company does not meet the $5,000,000 minimum stockholders' equity initial listing requirement for The Nasdaq Capital Market (the Bid Price Deficiency). The Company timely requested a hearing before a Nasdaq Hearing Panel (the Panel) to appeal the Bid Price Deficiency, which is currently scheduled for September 1, 2026 (the Hearing). The Letter states that the Stockholders' Equity Deficiency serves as an additional basis for delisting the Company's securities from Nasdaq, and that the Panel will consider the Stockholders' Equity Deficiency, together with the Bid Price Deficiency, in rendering its determination regarding the Company's continued listing on The Nasdaq Capital Market. The Company intends to present its views with respect to the Stockholders' Equity Deficiency at the Hearing, together with its plan to evidence compliance with the Minimum Bid Price Requirement and the Stockholders' Equity Requirement. There can be no assurance that the Company will be successful in its appeal before the Panel, that the Panel will grant the Company any additional period within which to regain compliance with the Stockholders' Equity Requirement, the Minimum Bid Price Requirement, or any other applicable Nasdaq continued listing standard, or that, if any such period is granted, the Company will be able to evidence compliance with all applicable Nasdaq continued listing requirements within that period. The Panel has broad discretionary authority under Nasdaq Listing Rules to delist the Company's securities notwithstanding the Company's compliance efforts, including based on concerns regarding the Company's reverse stock split history, financial condition, capital structure, capital-raising activities, or any other factor the Panel deems appropriate. If the Panel determines to delist the Company's securities, or if the Company is otherwise unable to regain and maintain compliance with the applicable Nasdaq continued listing requirements, the Company's common stock would be subject to delisting from The Nasdaq Capital Market, which would have a material adverse effect on the liquidity and market price of the Company's common stock and on the Company's ability to raise capital.
