Nexalin Technology Regains Compliance with Nasdaq Minimum Bid Price Requirement; Nasdaq Hearings Panel Grants Request for Continued Listing

Nexalin regains Nasdaq bid price compliance but faces $2.5 million equity deadline by January.

What the company is saying

Nexalin Technology, Inc. is announcing that it has received written confirmation from Nasdaq that it has regained compliance with the minimum $1.00 per share bid price requirement, following a 21-day period above this threshold from August 31 to September 29, 2026. The company frames this as a regulatory milestone achieved after a Nasdaq Hearings Panel decision on September 25, 2026, which granted continued listing subject to further conditions. CEO Mark White expresses satisfaction at meeting the bid price rule and highlights ongoing business momentum, referencing a new distribution agreement for Brazil and six additional South American markets and progress in U.S. clinical programs, including the pivotal HALO™ Clarity trial in insomnia. The announcement emphasizes the pursuit of FDA marketing authorization for its DIFS™ technology and notes that its Gen-2 15 milliamp neurostimulation device is approved in China, Brazil, Oman, and Israel. Nexalin is transparent that continued listing depends on meeting the minimum $2.5 million stockholders’ equity requirement by January 4, 2027, and that there is no assurance this will be achieved. The tone is measured, focusing on regulatory compliance and ongoing initiatives, with forward-looking statements about commercial and clinical progress.

What the data suggests

The announcement confirms that Nexalin's common stock maintained a closing bid price above $1.00 for 21 consecutive trading days, satisfying Nasdaq Listing Rule 5550(a)(2) and regaining compliance as of September 30, 2026. The company must now meet a minimum $2.5 million stockholders’ equity requirement under Nasdaq Listing Rule 5550(b)(1) by January 4, 2027, but does not disclose its current equity position or any financial statements. The only other quantitative disclosures are regulatory: the Gen-2 15 milliamp device has regulatory approval in China, Brazil, Oman, and Israel. References to a South American distribution agreement and U.S. clinical trials are qualitative, with no counterparties, contract values, or clinical milestones provided. The evidence supports that the company has resolved its immediate listing risk related to the bid price, but leaves open whether it can meet the equity requirement. No financial trajectory or operational metrics are disclosed beyond these compliance and regulatory facts.

Analysis

The announcement is primarily a factual update regarding Nexalin's compliance with Nasdaq's minimum bid price requirement, supported by specific dates and confirmation from Nasdaq. While the release references forward-looking items such as the need to meet the $2.5 million stockholders’ equity requirement by January 4, 2027, and ongoing clinical and regulatory initiatives, these are presented as requirements or ongoing processes rather than as promotional achievements. There is no exaggerated or promotional language; the tone remains measured and focused on regulatory milestones. No large capital outlay or immediate financial impact is disclosed, and the only realized progress is the bid price compliance and device approvals in certain countries. The forward-looking elements (equity compliance, clinical trials, FDA pursuit) are standard for a company in this situation and are not overstated. The data supports a neutral signal, as the announcement is routine and does not attempt to inflate the company's achievements.

Risk flags

• ●Nexalin faces a material risk of delisting from Nasdaq if it fails to demonstrate at least $2.5 million in stockholders’ equity by January 4, 2027. The company provides no information about its current equity position or plans to reach this threshold, making the likelihood of compliance uncertain.
• ●The announcement references a South American distribution agreement and ongoing U.S. clinical programs, but provides no detail on counterparties, contract terms, revenue potential, or clinical progress. This lack of transparency limits the ability to assess whether these initiatives will contribute meaningfully to financial stability or regulatory milestones in the required timeframe.
• ●The company must promptly notify the Nasdaq Panel of any significant events during the exception period that could affect compliance, and the Panel reserves the right to reconsider the terms of the exception. This introduces ongoing regulatory uncertainty, as any adverse development could jeopardize the listing.

Bottom line

Nexalin has resolved its immediate Nasdaq listing risk by regaining compliance with the $1.00 bid price rule, but now faces a more challenging hurdle: meeting the $2.5 million stockholders’ equity requirement by January 4, 2027. The company provides no balance sheet or financial data to indicate current progress toward this target, leaving investors with no visibility on its ability to remain listed. While management highlights a new South American distribution agreement and ongoing clinical and regulatory initiatives, no quantitative details are given to support claims of business momentum or near-term revenue generation. The most actionable fact is the looming equity compliance deadline, which will determine whether Nexalin maintains its Nasdaq listing. Investors should focus on whether the company discloses additional financing, equity infusions, or concrete financial results in the coming weeks, as these are critical to the company's near-term viability.

Announcement summary

(NASDAQ:NXL) Nexalin Technology, Inc. announced it has received written confirmation from The Nasdaq Stock Market LLC that the Company has regained compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2). Nasdaq confirmed that the closing bid price of Nexalin's common stock was above the $1.00 per share minimum for 21 consecutive trading days, from August 31 through September 29, 2026, following the Company's previously announced reverse stock split. The confirmation, dated September 30, 2026, follows a decision by the Nasdaq Hearings Panel dated September 25, 2026, granting Nexalin's request for continued listing on Nasdaq. Under the Panel’s decision, Nexalin was required to demonstrate compliance with the bid price requirement, which it has now satisfied, and must demonstrate compliance with the minimum $2.5 million stockholders’ equity requirement under Nasdaq Listing Rule 5550(b)(1) on or before January 4, 2027. The Company must also promptly notify the Panel of any significant events during the exception period that may affect compliance with Nasdaq’s listing requirements. The Panel has reserved the right to reconsider the terms of the exception. Nexalin recently announced a distribution agreement covering Brazil and six additional South American markets. The Company continues to advance its U.S. clinical programs, including the pivotal HALO™ Clarity clinical trial in insomnia, as it pursues FDA marketing authorization of its DIFS™ technology in the United States. The Nexalin Gen-2 15 milliamp neurostimulation device has been approved in China, Brazil, Oman, and Israel. Mark White, Chief Executive Officer of Nexalin, stated that the Company is pleased to have satisfied the bid price requirement and remains focused on business momentum. Nexalin’s continued listing on Nasdaq remains subject to the terms of the Panel’s decision, including the requirement to demonstrate compliance with the stockholders’ equity requirement on or before January 4, 2027. There can be no assurance that Nexalin will be able to demonstrate compliance with the stockholders’ equity requirement within the required timeframe, or that it will be able to maintain compliance with Nasdaq’s other continued listing requirements.

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