Nexalin Technology Receives Nasdaq Delisting Notice Over Equity Shortfall

What Happened Nexalin Technology, Inc. (NXL) announced in an 8-K that on August 14, 2026 Nasdaq's Listing Qualifications Staff notified the company it no longer meets the $2,500,000 minimum stockholders’ equity requirement for continued listing on The Nasdaq Capital Market. The notice cites the Company’s reported stockholders’ equity of $1,519,423 in its Form 10-Q for the period ended June 30, 2026. This stockholders’ equity deficiency will be considered together with a previously disclosed minimum bid price deficiency; Nexalin has requested a hearing before a Nasdaq Hearing Panel scheduled for September 1, 2026 to appeal.

Key Details

• Stockholders’ equity reported: $1,519,423 (as of 6/30/2026).
• Nasdaq minimum stockholders’ equity requirement: $2,500,000 (Rule 5550(b)(1)).
• Company previously received a delisting notice for failing the minimum bid price rule (Rule 5550(a)(2)); company is not eligible for an additional bid-price compliance period because it does not meet the $5,000,000 initial listing equity requirement.
• Nasdaq Hearing Panel review scheduled: September 1, 2026; Panel may consider reverse split history, financial condition, capital structure, capital-raising activities, and other factors.

Why It Matters A Nasdaq determination to delist would materially reduce the liquidity and marketability of Nexalin’s common stock and could harm the company’s ability to raise capital. The company intends to present a plan at the hearing to regain compliance with both the minimum bid price and stockholders’ equity requirements, but the Panel has broad discretion and there is no assurance of a favorable outcome. Investors should monitor the September 1, 2026 hearing outcome and any subsequent filings for updates.