Nasdaq pressure mounts on SOBR Safe (NASDAQ: SOBR) listing
Rhea-AI Filing Summary
SOBR Safe, Inc. (SOBR) reported that on August 21, 2026 it received an additional Nasdaq staff determination letter stating that stockholders’ equity reported in its June 30, 2026 Form 10-Q is below the $2,500,000 minimum required by Nasdaq Listing Rule 5550(b)(1). Nasdaq also noted SOBR does not meet alternative market value or net income standards, adding a further basis for potential delisting alongside its existing deficiency under the $1.00 Bid Price Requirement.
Nasdaq had previously granted continued listing until September 15, 2026, conditioned on completing a proposed business combination with Clean World Ventures, Inc. and meeting Nasdaq Initial Listing Rules. SOBR’s shares remain listed on the Nasdaq Capital Market under “SOBR.” The company may present its position on the equity deficiency to the Hearings Panel by August 28, 2026. Separately, director Ford Fay resigned from the Board effective August 21, 2026, citing no disagreement with the company.
Positive
- None.
Negative
- Nasdaq listing at risk on two fronts: SOBR now faces deficiencies for both the $2,500,000 stockholders’ equity requirement and the $1.00 bid price standard, and the company itself notes these create substantial concern about maintaining its Nasdaq Capital Market listing.
- Continued listing conditional on business combination: Nasdaq’s Hearings Panel allowed listing only until September 15, 2026, conditioned on completing the proposed business combination with Clean World Ventures, Inc. and demonstrating compliance with Nasdaq Initial Listing Rules.
8-K Event Classification
3 items: 3.01, 5.02, 9.01
3 items
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, failed to satisfy a continued-listing rule or standard, or transferred its listing.
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Minimum stockholders’ equity requirement: $2,500,000
Bid Price Requirement: $1.00 per share
Reverse stock split ratio (October 2, 2024): 1-for-110
+5 more
8 metrics
Minimum stockholders’ equity requirement
$2,500,000
Nasdaq Listing Rule 5550(b)(1) threshold for continued inclusion on the Nasdaq Capital Market
Bid Price Requirement
$1.00 per share
Minimum closing bid price under Nasdaq Listing Rule 5550(a)(2)
Reverse stock split ratio (October 2, 2024)
1-for-110
Reverse stock split effected on October 2, 2024
Reverse stock split ratio (April 4, 2025)
1-for-10
Reverse stock split effected on April 4, 2025
Cumulative reverse stock split ratio
1-for-1100
Cumulative effect of the October 2, 2024 and April 4, 2025 reverse stock splits
Continued listing deadline
September 15, 2026
Date through which Nasdaq Hearings Panel granted continued listing, subject to conditions
Response deadline on equity deficiency
August 28, 2026
Deadline to present views on stockholders’ equity deficiency to Nasdaq Hearings Panel
Director resignation date
August 21, 2026
Effective date of director Ford Fay’s resignation from the Board
Key Terms
Nasdaq Capital Market, stockholders’ equity, Bid Price Requirement, reverse stock split, +2 more
6 terms
Nasdaq Capital Market market
"minimum stockholders’ equity requirement of $2,500,000 for continued inclusion on the Nasdaq Capital Market"
The Nasdaq Capital Market is a platform where smaller, emerging companies can list their shares for trading by investors. It provides these companies with access to funding and visibility, helping them grow, much like a local marketplace where new vendors can introduce their products to potential customers. For investors, it offers opportunities to discover early-stage companies with growth potential.
stockholders’ equity financial
"the Company’s stockholders’ equity reported on its Quarterly Report on Form 10-Q"
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.
Bid Price Requirement regulatory
"below the minimum $1.00 per share requirement for continued inclusion on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Requirement”)"
A bid price requirement is a rule that specifies the minimum price a buyer must offer per share when making an official purchase proposal, tender offer, auction bid, or similar transaction. It matters to investors because it sets a floor for negotiations and valuation—like a reserve price in an auction—ensuring bids meet regulatory, contract or market standards and helping shareholders and markets judge whether an offer is fair or likely to succeed.
reverse stock split financial
"the Company effected a 1-for-110 reverse stock split on October 2, 2024, and a 1-for-10 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.
Nasdaq Initial Listing Rules regulatory
"complete the proposed business combination with Clean World Ventures, Inc., and demonstrate compliance with Nasdaq’s Initial Listing Rules"
Hearings Panel regulatory
"the Company filed a request for a hearing with the Nasdaq Hearings Panel"
A hearings panel is a review body at a stock exchange that hears the case when the exchange has decided a company no longer qualifies to keep its shares listed. The company presents a plan to regain compliance, and the panel decides whether the listing continues, on what conditions, and for how long. The decision can keep a stock trading or end its listing.
FAQ
Why did SOBR Safe, Inc. (SOBR) receive an additional Nasdaq deficiency notice?
Nasdaq staff notified SOBR that stockholders’ equity reported in its June 30, 2026 Form 10-Q fell below the $2,500,000 minimum required by Nasdaq Listing Rule 5550(b)(1). Nasdaq also stated SOBR does not meet the alternative market value of listed securities or net income standards.
What Nasdaq listing standards is SOBR (SOBR) currently failing to meet?
SOBR is deficient under the $2,500,000 stockholders’ equity requirement in Listing Rule 5550(b)(1) and the $1.00 Bid Price Requirement in Listing Rule 5550(a)(2). Nasdaq indicated these deficiencies provide additional bases for delisting from the Nasdaq Capital Market.
How long can SOBR (SOBR) remain listed on Nasdaq under the current Hearings Panel decision?
The Nasdaq Hearings Panel granted SOBR continued listing on the Nasdaq Capital Market until September 15, 2026. This is conditioned on completing the proposed business combination with Clean World Ventures, Inc. and demonstrating compliance with Nasdaq Initial Listing Rules by that date.
What prior reverse stock splits has SOBR (SOBR) undertaken?
SOBR effected a 1-for-110 reverse stock split on October 2, 2024 and a 1-for-10 reverse stock split on April 4, 2025, resulting in a cumulative reverse stock split ratio of 1-for-1100 over two years. Nasdaq cited this cumulative ratio in determining grace-period eligibility.
Can SOBR (SOBR) appeal the new equity deficiency determination?
Yes. The additional Nasdaq letter allows SOBR to present its views on the stockholders’ equity deficiency to the Nasdaq Hearings Panel by August 28, 2026. Management and the Board are considering possible courses of action regarding this deficiency.
What Board change did SOBR (SOBR) disclose in this filing?
On August 21, 2026, Ford Fay resigned from SOBR’s Board of Directors effective immediately. The company stated his resignation was not related to any disagreement with SOBR on matters relating to its operations, policies, or practices.
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