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

Continued listing remains conditional on meeting the stockholders’ equity requirement within the Panel’s exception period.

Rhea-AI Summary

Nexalin Technology (Nasdaq: NXL) has regained compliance with Nasdaq’s minimum bid price requirement and received permission for continued listing.

Its closing bid price remained above $1.00 per share for 21 consecutive trading days, from August 31 through September 29, 2026, following a previously announced reverse stock split. Nasdaq’s September 30 confirmation followed the Hearings Panel’s September 25 decision granting continued listing. Nexalin must still demonstrate compliance with the $2.5 million minimum stockholders’ equity requirement by January 4, 2027; continued listing remains conditional on the Panel’s terms.

Nexalin said it remains focused on commercial revenue generation following a distribution agreement covering Brazil and six additional South American markets, while advancing U.S. clinical programs, including its pivotal HALO Clarity insomnia trial, toward FDA marketing authorization.

4 points · 1 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointNasdaq Hearings Panel granted Nexalin’s request for continued listing on September 25, 2026.
• Moderate pointBid price compliance regained after 21 consecutive trading days above $1.00 per share.
• Minor pointDistribution agreement covers Brazil and six additional South American markets.
• Minor point. Forward-looking: it has not happened yet and may not happen.U.S. clinical programs remain a company focus, including the pivotal HALO Clarity insomnia trial pursuing FDA marketing authorization.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.$2.5 million minimum stockholders’ equity compliance must be demonstrated by January 4, 2027 for continued listing.
• Minor pointPanel exception terms remain subject to reconsideration by the Nasdaq Hearings Panel.

Argus 15 min delay 7 alerts

+1.40% vs previous close $4.38 last price 41.4x rel. volume Open Argus

Details

Market Reaction – NXL

+7.9% Peak in 0 min

$3.91 – $4.94 Day Range

$3.63M Market Cap

On Oct 8, the day this news came out, the latest delayed price for NXL is 1.40% above the previous close. Argus tracked a peak move of +7.9% during the session. Our momentum scanner has recorded 7 alerts for this stock so far that day. The latest delayed price is $4.38. Relative volume is exceptionally heavy at 41.4x the average.

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Key Figures

Minimum bid price: $1.00 per share Compliance period: 21 consecutive trading days Stockholders' equity requirement: $2.5 million

Minimum bid price

$1.00 per share

Nasdaq Listing Rule 5550(a)(2)

Compliance period

21 consecutive trading days

August 31 through September 29, 2026

Stockholders' equity requirement

$2.5 million

Compliance due on or before January 4, 2027

Historical Context

1 past event · Latest: Aug 27

1 event

1. Aug 27

   Reverse stock split

   24h Move

   -13.6%

   The 1-for-30 reverse split was approved to help ensure compliance with Nasdaq's bid-price rule.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

reverse stock split, minimum bid price requirement, stockholders’ equity requirement

3 terms

reverse stock split financial

"following the Company’s previously announced reverse stock split."

A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.

minimum bid price requirement regulatory

"regained compliance with the minimum bid price requirement under Nasdaq Listing Rule"

A minimum bid price requirement is a rule that a stock must trade above a set price for a specified period to stay listed on an exchange. It matters to investors because falling below that threshold can trigger warnings or removal from the exchange, which can cut liquidity, reduce visibility, and often lead to sharper declines in share value—think of it like a venue’s minimum dress code that, if not met, can bar a performer from the stage.

stockholders’ equity requirement financial

"compliance with the minimum $2.5 million stockholders’ equity requirement"

A stockholders’ equity requirement is a minimum amount of net assets — assets minus liabilities — that a company must keep on its balance sheet to meet rules set by regulators, lenders or stock exchanges. Think of it as a required safety buffer or minimum bank balance that shows the company has enough of its own capital to absorb losses; falling below it can limit dividends, trigger covenants or risk sanctions, so investors watch it as a sign of financial health and compliance.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Company remains focused on its transition toward commercial revenue generation and the advancement of its U.S. clinical programs

HOUSTON, Oct. 08, 2026 (GLOBE NEWSWIRE) -- Nexalin Technology, Inc. (Nasdaq: NXL) (the “Company” or “Nexalin”), the leader in non-invasive Deep Intracranial Frequency Stimulation (DIFS™) of the brain, today announced that it has received written confirmation from The Nasdaq Stock Market LLC (“Nasdaq”) 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 the Company’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 (the “Panel”), dated September 25, 2026, granting the Company’s request for continued listing on Nasdaq. Under the terms of the Panel’s decision, the Company 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.

“We appreciate the Panel’s decision and are pleased to have satisfied the bid price requirement,” said Mark White, Chief Executive Officer of Nexalin. “Our primary focus remains on the growing momentum across our business. We recently announced a distribution agreement covering Brazil and six additional South American markets, an important step in our transition toward commercial revenue generation, and we continue to advance our U.S. clinical programs, including our pivotal HALO™ Clarity clinical trial in insomnia, as we pursue FDA marketing authorization of our DIFS™ technology in the United States.”

The Company’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 and to promptly notify the Panel of any significant events during the exception period that may affect the Company’s compliance with Nasdaq’s listing requirements. The Panel has reserved the right to reconsider the terms of the exception. There can be no assurance that the Company 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.

About Nexalin Technology, Inc.

Nexalin designs and develops innovative neurostimulation products to uniquely help combat the ongoing global mental health epidemic. Nexalin’s medical devices are non-invasive and undetectable to the human body.  Nexalin products are developed to provide relief to those afflicted with mental health issues using frequency based bioelectronic medical technology. Nexalin believes its neurostimulation medical devices can penetrate structures deep in the mid-brain that are associated with mental health disorders. Nexalin believes the deeper-penetrating waveform in its next-generation devices will generate enhanced patient response without any adverse side effects. The Nexalin Gen-2 15 milliamp neurostimulation device has been approved in China, Brazil, Oman and Israel. Additional information about the Company is available at: https://nexalin.com/.

FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). These forward-looking statements relate to future events, future performance, or management’s current expectations, beliefs, assumptions, plans, estimates, intentions, or projections relating to the future, and are not guarantees of future performance. Any statements that are not statements of historical fact, or that refer to expectations, projections, or other characterizations of future events or circumstances (including, without limitation, statements containing the words “believes,” “expects,” “anticipates,” “plans,” “intends,” “will,” “may,” “could,” “should,” “would,” “designed to,” “positioned to,” “potential,” “targeted,” “seeking,” “continues,” “strategy,” “opportunity,” “estimates,” “projects,” “forecasts,” “predicts,” “outlook,” “guidance,” or similar expressions, or the negative of such terms), are forward-looking statements.

Forward-looking statements in this press release include, but are not limited to, statements regarding: the Company’s ability to demonstrate compliance with the minimum stockholders’ equity requirement on or before January 4, 2027; the Company’s ability to maintain compliance with the minimum bid price requirement and Nasdaq’s other continued listing requirements; the Company’s ability to maintain the listing of its common stock on Nasdaq; the Company’s planned initiatives to strengthen its balance sheet; the Company’s transition toward commercial revenue generation; the execution and anticipated benefits of its South American distribution agreement; the advancement of its U.S. clinical programs, including its pivotal HALO™ Clarity clinical trial in insomnia; the Company’s pursuit of FDA marketing authorization; and the Company’s beliefs regarding the ability of its devices to penetrate deep brain structures and the anticipated patient response and safety profile of its next-generation devices. These statements are based on Nexalin’s current expectations and assumptions as of the date hereof and are subject to significant risks, uncertainties, and other factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those expressed or implied.

Such risks include, but are not limited to: the Company’s ability to complete the financing or other transactions necessary to satisfy the minimum stockholders’ equity requirement, on acceptable terms or at all; the discretion of the Panel to reconsider, modify, or terminate the terms of the exception; the trading price of the Company’s common stock and general market conditions; the ability of the distributor under the Company’s South American distribution agreement (the “Distributor”) to meet its purchase, payment, and other contractual obligations; the Company’s or the Distributor’s ability to obtain and maintain regulatory approvals required to market the Company’s products in South American markets other than Brazil; market acceptance of the Company’s products and the timing and realization of commercial revenue; delays in clinical trial enrollment or completion, unfavorable clinical results, and the Company’s ability to obtain necessary regulatory approvals, including FDA marketing authorization; the risk that the Company’s devices, including its next-generation devices, may not demonstrate the anticipated efficacy or may be associated with adverse events; the Company’s ability to secure adequate funding on acceptable terms; and the risk that the Company’s common stock could be delisted from Nasdaq if the Company fails to satisfy the terms of the Panel’s decision. Additional risks and uncertainties are described under the heading “Risk Factors” in the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2025, and in the Company’s subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings the Company makes from time to time with the U.S. Securities and Exchange Commission (the “SEC”), available free of charge at www.sec.gov. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update any forward-looking statement, except as required by law.

Contact:
Crescendo Communications, LLC
Tel: (212) 671-1020
Email: NXL@crescendo-ir.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Why did Nexalin regain Nasdaq minimum bid price compliance?

Nexalin’s closing bid price was above $1.00 per share for 21 consecutive trading days, from August 31 through September 29, 2026. This followed its previously announced reverse stock split. Nasdaq confirmed compliance in writing on September 30, 2026.

What Nasdaq listing requirement must Nexalin meet by January 4, 2027?

Nexalin must demonstrate compliance with the $2.5 million minimum stockholders’ equity requirement on or before January 4, 2027. Meeting the bid price requirement does not remove this remaining condition of the Hearings Panel’s continued-listing decision.

What must Nexalin report to the Nasdaq Hearings Panel during its listing exception period?

Nexalin must promptly notify the Panel of significant events during the exception period that may affect compliance with Nasdaq’s listing requirements. The Panel has reserved the right to reconsider the exception’s terms.