Neonode (NASDAQ: NEON) faces Nasdaq notice over $1 minimum bid price
Rhea-AI Filing Summary
Neonode Inc. received a notice from Nasdaq on August 6, 2026 stating that its common stock no longer satisfies the $1.00 per share Minimum Bid Price Requirement because the bid price closed below $1.00 for 30 consecutive business days. The stock continues to trade on the Nasdaq Capital Market under the symbol NEON.
Under Nasdaq Listing Rule 5810(c)(3)(A), Neonode has a 180-day grace period, until February 2, 2027, to regain compliance by maintaining a closing bid of at least $1.00 for a minimum of ten consecutive business days. If compliance is not regained, the company may qualify for an additional 180-day period if other listing standards are met and it notifies Nasdaq it intends to cure the deficiency, potentially through a reverse stock split. Failing that, its shares could be subject to delisting, though the company could appeal to a Nasdaq Hearings Panel.
Positive
- None.
Negative
- Nasdaq non-compliance and delisting risk: Neonode’s stock traded below the $1.00 minimum bid for 30 consecutive business days, triggering a Nasdaq notice and starting a grace period that could ultimately lead to delisting if compliance is not regained.
8-K Event Classification
Item 3.01 — Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
1 item
Item 3.01
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Securities
The company received a delisting notice or transferred its listing to a different exchange.
Key Figures
Consecutive days below minimum bid: 30 business days
Minimum bid price requirement: $1.00 per share
Initial grace period length: 180 calendar days
+3 more
6 metrics
Consecutive days below minimum bid
30 business days
Bid price closed below $1.00 for 30 consecutive business days, triggering Nasdaq notice
Minimum bid price requirement
$1.00 per share
Nasdaq Listing Rule 5550(a)(2) requires a minimum $1.00 per share closing bid
Initial grace period length
180 calendar days
Granted under Nasdaq Listing Rule 5810(c)(3)(A) to regain bid price compliance
Initial grace period end date
February 2, 2027
Deadline to regain compliance with the Minimum Bid Price Requirement
Days of required compliant bids
10 consecutive business days
Closing bid must be at least $1.00 for a minimum of ten consecutive business days
Potential additional grace period
180 calendar days
Possible second compliance period if other initial listing standards are met
Key Terms
Minimum Bid Price Requirement, Nasdaq Listing Rule 5550(a)(2), Nasdaq Listing Rule 5810(c)(3)(A), Nasdaq Hearings Panel
4 terms
Minimum Bid Price Requirement regulatory
"compliance with the requirement for continued listing on Nasdaq under the Minimum Bid Price Requirement"
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.
Nasdaq Listing Rule 5550(a)(2) regulatory
"requirement for continued listing on Nasdaq under Nasdaq Listing Rule 5550(a)(2)"
Nasdaq Listing Rule 5810(c)(3)(A) regulatory
"Under Nasdaq Listing Rule 5810(c)(3)(A), the Company has been granted a 180 calendar day grace"
Nasdaq Hearings Panel regulatory
"the Company may appeal the Staff’s delisting determination to a Nasdaq Hearings Panel"
A Nasdaq hearings panel is a group of experts that reviews cases when a company's stock listing is at risk of being removed from the exchange. They evaluate whether the company has met certain standards and determine if it can keep trading on Nasdaq. This process matters to investors because it can affect a company's ability to raise money and maintain credibility in the market.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What Nasdaq notice did Neonode (NEON) receive in August 2026?
Neonode received a Nasdaq notice on August 6, 2026 stating its common stock no longer meets the $1.00 minimum bid price requirement after 30 consecutive business days below that level, putting its Nasdaq Capital Market listing at risk if compliance is not restored.
How long does Neonode (NEON) have to regain Nasdaq bid price compliance?
Neonode has a 180 calendar day grace period, until February 2, 2027, to regain compliance. It must achieve a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days within that period.
What must Neonode (NEON) do to meet Nasdaq’s Minimum Bid Price Requirement?
To regain compliance, Neonode’s common stock must have a closing bid price of at least $1.00 per share for at least ten consecutive business days during the 180-day grace period ending February 2, 2027, as required by Nasdaq Listing Rule 5550(a)(2).
Can Neonode (NEON) get an additional grace period from Nasdaq?
Neonode may qualify for a second 180-day grace period if, by February 2, 2027, it meets Nasdaq’s initial listing standards other than bid price and notifies Nasdaq it intends to cure the deficiency, potentially by effecting a reverse stock split.
What happens if Neonode (NEON) still fails the $1.00 bid price after the grace period?
If Neonode does not regain compliance and is ineligible for, or fails, any second grace period, Nasdaq staff may move to delist the common stock. Neonode could then appeal to a Nasdaq Hearings Panel, but there is no assurance an appeal would succeed.