Reed’s Receives NYSE Deficiency Notification Regarding Stockholders’ Equity

Rhea-AI Summary

Reed’s (NYSE American: REED) disclosed that on August 12, 2026 it received a NYSE American notice that it is below compliance with Section 1003(a)(i) due to a stockholders’ deficit of $(1.5) million and losses in its five most recent fiscal years.

The company, already addressing prior non-compliance with Sections 1003(a)(ii) and 1003(a)(iii), submitted a remediation plan on June 26, 2026. NYSE American accepted this plan, requiring periodic, including quarterly, reviews. Reed’s must regain compliance by November 29, 2027 or face potential delisting, though its shares remain listed for now.

Positive

• NYSE American accepted Reed’s remediation plan submitted June 26, 2026
• REED shares remain listed and traded on NYSE American during the plan period
• Company can appeal any delisting determination under Section 1010 and Part 12

Negative

• Below NYSE American Section 1003(a)(i) with $(1.5) million stockholders’ deficit
• Reported losses from continuing operations and/or net losses in five most recent fiscal years
• Not eligible for any Section 1003(a) stockholders’ equity exemption
• Risk of NYSE American delisting after November 29, 2027 if compliance not regained or plan progress insufficient

Market Context

Reed’s prior -5.8% reaction to its Q2 earnings report adds a platform benchmark to this listing even...

Analysis

Reed’s prior -5.8% reaction to its Q2 earnings report adds a platform benchmark to this listing event. The notice’s immediate trading continuity was factual, but future compliance milestones remained the central risk; low short positioning was also recorded.

Key Figures

Stockholders’ deficit: $1.5 million Loss history: 5 fiscal years Notice received: August 12, 2026 +3 more

6 metrics

Stockholders’ deficit $1.5 million Reported for fiscal years ended December 31, 2025

Loss history 5 fiscal years Most recent fiscal years ended December 31, 2025

Notice received August 12, 2026 NYSE American deficiency notice

Plan submission date June 26, 2026 Compliance plan submitted to NYSE American

Plan acceptance date August 12, 2026 NYSE American accepted the compliance plan

Compliance deadline November 29, 2027 Deadline to regain compliance with continued listing standards

Historical Context

5 past events · Latest: Aug 11 (Negative)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 11	2Q26 earnings report	Negative	-5.8%	Lower sales and continuing losses outweighed improved margins and narrower quarterly loss.
Jul 29	Earnings call scheduling	Neutral	-1.0%	Conference call scheduled to discuss second-quarter financial results on August 12.
Jun 03	Listing deficiency notice	Negative	-6.3%	NYSE American cited stockholders’ equity and recent losses below continued listing standards.
May 12	1Q26 earnings report	Negative	-28.4%	Lower sales, compressed margins, and a wider net loss marked first-quarter results.
Apr 29	Earnings call scheduling	Neutral	-2.2%	Conference call scheduled to discuss first-quarter financial results on May 13.

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

Pattern Detected

Negative operating and listing news was followed by declines, while conference scheduling news also coincided with smaller declines.

Key Terms

stockholders’ deficit, delisting proceedings

2 terms

stockholders’ deficit financial

"the Company reported stockholders’ deficit of $(1.5) million"

Stockholders’ deficit is the situation where a company’s total liabilities exceed its total assets, so the book value attributed to shareholders is negative. Think of it like a household with more outstanding debts than the value of its house and possessions—this can signal past losses or aggressive payouts and raises the risk that shareholders may be wiped out, diluted, or face difficulty when the company needs new financing. Investors watch it as a warning about solvency and long‑term financial health.

delisting proceedings regulatory

"the NYSE American will initiate delisting proceedings as appropriate"

Delisting proceedings are the formal steps taken to remove a company’s shares from a stock exchange, either because the company chose to leave or failed to meet rules like minimum share price, reporting or solvency requirements. For investors this matters because removal usually cuts trading access and liquidity, can sharply lower the share price, and makes it harder to buy, sell or get transparent information — similar to a product being pulled off supermarket shelves.

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

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NORWALK, Conn., Aug. 14, 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 August 12, 2026, the Company received a notice (the “Notice”) from NYSE American LLC (“NYSE American”) that the Company is below compliance with Section 1003(a)(i) 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’ deficit of $(1.5) million and losses from continuing operations and/or net losses in its five most recent fiscal years ended December 31, 2025. The Company is also not currently eligible for any exemption in Section 1003(a) of the Company Guide from the stockholders’ equity requirements.

As previously announced, in connection with its non-compliance with Section 1003(a)(ii) and Section 1003(a)(iii) of the Company Guide, the Company must submit a plan (the “Plan”) to the NYSE American advising of actions it has taken or will take to regain compliance with the continued listing standards by November 29, 2027. On June 26, 2026, the Company submitted the Plan to NYSE American. On August 12, 2026, NYSE American determined to accept the Plan, and the Company will be subject to periodic reviews, including quarterly monitoring for compliance with the Plan. If the Company is not in compliance with the continued listing standards by November 29, 2027, or if the Company does not make progress consistent with the Plan, the NYSE American will initiate delisting proceedings as appropriate. The Company may appeal a staff delisting determination in accordance with Section 1010 and Part 12 of the Company Guide.

The Notice has no immediate impact on the listing of the Company’s shares of common stock, which will continue to be listed and traded on the NYSE American during this period, subject to the Company’s compliance with the other listing requirements of the NYSE American.

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 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 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 for the year ended December 31, 2025 filed on March 25, 2026, as updated by Reed’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 filed on August 12, 2026, which are 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 notice did Reed’s (REED) receive on August 12, 2026?

Reed’s received a NYSE American notice that it is below compliance with Section 1003(a)(i). According to Reed’s, this is due to a stockholders’ deficit of $(1.5) million and losses over its five most recent fiscal years.

Why is Reed’s (REED) non-compliant with NYSE American stockholders’ equity standards?

Reed’s is non-compliant because it reported a stockholders’ deficit of $(1.5) million and losses from continuing operations and/or net losses in its last five fiscal years. According to Reed’s, it also does not qualify for any Section 1003(a) exemption.

What is the deadline for Reed’s (REED) to regain NYSE American compliance?

Reed’s must regain compliance with NYSE American continued listing standards by November 29, 2027. According to Reed’s, failure to do so or to show sufficient plan progress could lead NYSE American to initiate delisting proceedings.

Did NYSE American accept Reed’s (REED) plan to regain listing compliance?

Yes, NYSE American accepted Reed’s remediation plan on August 12, 2026. According to Reed’s, the plan was submitted June 26, 2026 and the company will undergo periodic reviews, including quarterly monitoring, during the plan period.

Will Reed’s (REED) shares be delisted immediately after the NYSE notice?

No, the notice has no immediate impact on Reed’s listing. According to Reed’s, its common stock will continue to be listed and traded on NYSE American, subject to compliance with other listing requirements and progress under the accepted plan.

What happens if Reed’s (REED) does not meet NYSE standards by November 29, 2027?

If Reed’s is not in compliance by November 29, 2027, NYSE American may start delisting proceedings. According to Reed’s, delisting may also follow if plan progress is insufficient, though the company may appeal under Section 1010 and Part 12.

Can Reed’s (REED) appeal a potential NYSE American delisting?

Yes, Reed’s may appeal any staff delisting determination. According to Reed’s, such an appeal would be made in accordance with Section 1010 and Part 12 of the NYSE American Company Guide, following any future delisting decision.