Reed’s Receives NYSE Deficiency Notification Regarding Stockholders’ Equity

Rhea-AI Summary

Reed’s (NYSE American: REED) received a NYSE American deficiency notice dated May 29, 2026. The exchange found the company below Sections 1003(a)(ii) and (iii) because stockholders’ equity was $2.7 million on March 31, 2026 and it recorded net losses in its five most recent fiscal years.

Reed’s is not eligible for an equity exemption and must submit a compliance plan by June 28, 2026, outlining how it will meet continued listing standards by November 29, 2027. During the 18‑month cure period, REED shares remain listed, subject to compliance with other NYSE American rules.

Positive

• 18‑month cure period to work toward NYSE American compliance
• Common stock continues trading on NYSE American during cure period

Negative

• Stockholders’ equity reported at $2.7 million on March 31, 2026
• Net losses in each of the last five fiscal years
• Non‑compliance with NYSE American Sections 1003(a)(ii) and (iii)
• Not eligible for exemptions from stockholders’ equity requirements
• Must regain compliance with continued listing standards by November 29, 2027

News Market Reaction – REED

-6.32%

1 alert

-6.32% Session close to close

$20.87M Market Cap

0.4x Rel. Volume

In the Jun 4 session, REED declined 6.32%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -6.3% in the session following this news. A negative reaction despite ongoing listin...

Analysis

The stock moved -6.3% in the session following this news. A negative reaction despite ongoing listing during the eighteen-month cure period fits the company’s history of selloffs following weak financial disclosures. The notice formalized concerns stemming from low stockholders’ equity of $2.7 million and multi-year losses. Future volatility could hinge on the feasibility of the plan due by June 28, 2026 and the path to compliance by November 29, 2027.

Key Figures

Stockholders’ equity: $2.7 million Net loss duration: 5 fiscal years Plan submission deadline: June 28, 2026 +2 more

5 metrics

Stockholders’ equity $2.7 million As of March 31, 2026 per NYSE American notice

Net loss duration 5 fiscal years Net losses in five most recent fiscal years

Plan submission deadline June 28, 2026 Date by which compliance plan must be submitted

Compliance deadline November 29, 2027 Target date to regain NYSE American compliance

Cure period length 18 months NYSE American cure period for equity deficiency

Historical Context

5 past events · Latest: May 12 (Negative)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 12	Q1 2026 earnings	Negative	-28.4%	Weaker Q1 sales, sharply lower margins, and widened net loss.
Apr 29	Earnings call setup	Neutral	-2.2%	Announcement of timing and access details for Q1 2026 call.
Apr 24	COO appointment	Positive	-5.1%	New COO named to drive manufacturing and operational efficiencies.
Mar 24	FY 2025 results	Negative	-17.7%	FY 2025 sales decline, margin compression, and wider net loss with leadership change.
Mar 11	Earnings call setup	Neutral	+8.2%	Scheduling of Q4 and full-year 2025 results conference call.

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

Pattern Detected

Recent history shows sharp negative reactions to weak financial results and occasional downside even on management or neutral updates, indicating sensitivity to balance sheet and profitability concerns.

Recent Company History

Over the past several months, Reed’s has reported declining sales, compressing margins, and widening losses, as seen in Q4 2025 and Q1 2026 results, with notable negative price reactions after earnings on Mar 24 and May 12. Management changes, including a new COO on Apr 24, and multiple conference-call announcements frame a turnaround narrative. Today’s NYSE American equity-deficiency notice directly ties back to these sustained losses and weak equity levels.

Key Terms

stockholders’ equity, listing standards, stockholders’ equity requirements, continued listing standards, +1 more

5 terms

stockholders’ equity financial

"because the Company reported stockholders’ equity of $2.7 million at March 31, 2026"

Stockholders’ equity is the portion of a company’s value that belongs to its owners after subtracting what the company owes from what it owns — like the equity in a house after paying the mortgage. For investors it shows the company’s net worth and can indicate financial strength, a cushion against losses, and the amount potentially available to support dividends or reinvestment; tracking changes helps assess whether the business is building or eroding owner value.

listing standards regulatory

"below compliance with Sections 1003(a)(ii) and (iii) of NYSE American’s listing standards"

Rules set by a stock exchange that determine which companies can be listed and what they must keep doing to stay listed, covering things like financial health, reporting, and governance. They matter to investors because they provide a baseline of transparency and quality—like building codes or club membership rules—so buyers can trust that listed companies meet minimum standards and that market information is more reliable and comparable.

View in glossary

stockholders’ equity requirements regulatory

"not currently eligible for any exemption in Section 1003(a) of the Company Guide from the stockholders’ equity requirements"

Stockholders’ equity requirements are the minimum amount of net assets a company must keep on its balance sheet — the difference between what the company owns and what it owes — either because of law, lender covenants, or internal policy. Think of it as a required minimum account balance or safety cushion that protects creditors and signals financial strength; falling below it can limit dividends, trigger lender actions, or raise investor concern about solvency.

continued listing standards regulatory

"regain compliance with the continued listing standards by November 29, 2027"

Ongoing rules a stock exchange requires a listed company to meet to keep its shares trading publicly, such as minimum share price, market value, timely financial reports, and governance practices. Think of it as a membership checklist for a club: falling short can lead to warnings or removal from the exchange, which can sharply reduce liquidity, investor confidence, and a stock’s value. Investors watch these standards to gauge regulatory risk and the stability of their holdings.

cure period regulatory

"During the eighteen-month cure period, the Company’s common stock will continue to be listed"

A cure period is a set amount of time given to a borrower, counterparty, or contracting party to fix a missed payment, breach, or other problem before more serious consequences—like penalties, higher interest, or contract termination—kick in. For investors, it matters because it creates a short grace window that can prevent immediate losses and influence the timing and likelihood of recovery; think of it like a few extra days to pay a bill before a service is cut off.

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

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NORWALK, Conn., June 03, 2026 (GLOBE NEWSWIRE) -- Reed’s, Inc. (NYSE American: REED) (“Reed’s” or the “Company”), owner of the nation’s leading portfolio of handcrafted, natural ginger beverages, announced that on May 29, 2026, the Company received a notice (the “Notice”) from NYSE American LLC (“NYSE American”) that the Company is below compliance with Sections 1003(a)(ii) and (iii) of NYSE American’s listing standards set forth in Part 10 of the NYSE American Company Guide (the “Company Guide”) because the Company reported stockholders’ equity of $2.7 million at March 31, 2026 and had net losses in its five most recent fiscal years. The Company is also not currently eligible for any exemption in Section 1003(a) of the Company Guide from the stockholders’ equity requirements.

In connection with its non-compliance with Sections 1003(a)(ii) and (iii) of the Company Guide, the Company must submit a plan by June 28, 2026, advising of actions it has taken or will take to regain compliance with the continued listing standards by November 29, 2027. During the eighteen-month cure period, the Company’s common stock will continue to be listed and traded on NYSE American, subject to the Company’s continued compliance with the NYSE American’s other applicable listing rules.

About Reed’s, Inc.

Reed’s is an innovative company and category leader that provides the world with high quality, premium and better-for-you sodas. Established in 1989, Reed's is a leader in craft beverages under the Reed’s^®, Virgil’s^® and Flying Cauldron^® brand names. The Company’s beverages are now sold in over 32,000 stores nationwide.

Forward Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical are forward-looking statements. These forward-looking statements may be identified by terms such as ““believe,”“ “expect,” “intends,” “outlook,” “may,” “will” and similar expressions. Forward-looking statements include, but are not limited to, statements herein with respect to implied or express statements regarding the Company’s expectations surrounding the submission of a plan and regaining compliance with the NYSE American’s continued listing standards, and actions of the Company and/or the NYSE American to be taken with respect to matters discussed in the Notice. These forward-looking statements are based on current expectations. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties, and assumptions, many of which involve factors or circumstances that are beyond our control. These risks could cause actual results to differ materially from those discussed in such forward-looking statements.

The risks and uncertainties referred to above include, but are not limited to: Reed’s ability to timely submit its plan to NYSE American, the acceptance of its plan by NYSE American and Reed’s ability to regain compliance with the listing standards set forth in the Company Guide by November 29, 2027, and other risks detailed from time to time in Reed’s public filings, including Reed’s annual report on Form 10-K filed on March 25, 2026, which will be available on the Securities and Exchange Commission’s web site at www.sec.gov. These forward-looking statements are based on current expectations and speak only as of the date hereof. Reed’s assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

Investor Relations Contact

Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
ir@reedsinc.com
(720) 330-2829

FAQ

What NYSE American deficiency notice did Reed’s (REED) receive on May 29, 2026?

Reed’s received a NYSE American notice stating it is below certain continued listing standards. According to Reed’s, this relates to Sections 1003(a)(ii) and (iii) after reporting $2.7 million in stockholders’ equity and net losses in its last five fiscal years.

Why is Reed’s (REED) non-compliant with NYSE American Sections 1003(a)(ii) and (iii)?

Reed’s is non-compliant because its March 31, 2026 stockholders’ equity was $2.7 million and it had net losses in its five most recent fiscal years. According to Reed’s, these factors place it below the equity-related continued listing thresholds in those sections.

What deadlines did NYSE American set for Reed’s (REED) to regain compliance?

Reed’s must submit a compliance plan to NYSE American by June 28, 2026. According to Reed’s, the plan must describe actions to meet continued listing standards by November 29, 2027, within an eighteen-month cure period during which its stock remains listed.

Will Reed’s (REED) shares continue trading on NYSE American after the deficiency notice?

Yes, Reed’s common stock will continue trading on NYSE American during the eighteen-month cure period. According to Reed’s, continued listing is subject to the company maintaining compliance with NYSE American’s other applicable listing rules throughout this timeframe.

Is Reed’s (REED) eligible for any NYSE American equity requirement exemptions?

Reed’s is currently not eligible for any exemptions from NYSE American stockholders’ equity requirements. According to Reed’s, the company does not qualify for the exemptions outlined in Section 1003(a), so it must rely on its submitted plan to regain full compliance.