CLOUDASTRUCTURE, INC. 8-K

What Happened
Cloudastructure, Inc. (CSAI) filed an 8-K on Feb 20, 2026, disclosing that Nasdaq notified the company on Feb 17, 2026 that its Class A Common Stock failed to meet the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2). Nasdaq determined the deficiency existed based on the stock’s closing bid price over 30 consecutive business days from Dec 29, 2025 through Feb 10, 2026. The notice does not trigger immediate delisting.

Key Details

• Nasdaq gave a 180-calendar-day compliance period, ending Aug 17, 2026, to regain compliance.
• To cure the deficiency, the closing bid must be at least $1.00 per share for a minimum of 10 consecutive business days during the 180-day period.
• If eligible, the company may request an additional 180-day period by meeting other Nasdaq initial listing standards (except bid price) and announcing intent to cure by, if necessary, a reverse stock split.
• The company said it will monitor its stock price and consider options to regain compliance, including a reverse stock split if approved by shareholders.

Why It Matters
This notice signals a risk of Nasdaq delisting if Cloudastructure cannot restore its share price to at least $1.00 for the required period. Delisting could reduce liquidity and negatively affect shareholder value; however, there is no immediate delisting and the company has time and potential remedies (including a reverse split) to attempt to cure the deficiency. Investors should monitor the company’s stock price, communications about corrective actions, and any shareholder votes related to a reverse stock split.