aibioAdial Pharmaceuticals gets Nasdaq stockholders' equity notice, plan due October 2, 2026
Tickers ADIL
Nasdaq told Adial on August 18, 2026 that it no longer meets the $2,500,000 stockholders' equity requirement. The company says it anticipates regaining compliance once holders approve conversion of its Series A Non-Voting Convertible Preferred Stock.
Key facts
- Company
- Adial Pharmaceuticals, Inc (NASDAQ: ADIL)
- News type
- Listings
- Primary source
- ADIAL PHARMACEUTICALS, INC. Form 8-K filed August 21, 2026 (SEC EDGAR)
Adial Pharmaceuticals, Inc. received a Nasdaq deficiency notice on August 18, 2026 saying it no longer meets the minimum stockholders' equity requirement for continued listing on The Nasdaq Capital Market. The company disclosed the notice in a Form 8-K filed August 21, 2026. It has until October 2, 2026 to submit a plan to regain compliance. The notice has no immediate effect on the listing.
What the notice says
Nasdaq's letter said that, based on the stockholders' equity reported in Adial's Quarterly Report on Form 10-Q for the period ended June 30, 2026, the company no longer satisfies the minimum stockholders' equity requirement of $2,500,000 under Nasdaq Listing Rule 5550(b)(1). Stockholders' equity is a company's assets minus its liabilities on its balance sheet. The letter also noted that Adial does not meet either alternative standard for the Nasdaq Capital Market. Those are a market value of listed securities of $35 million, or net income from continued operations of $500,000 in the most recently completed fiscal year or in two of the last three completed fiscal years.
The company says the notice has no immediate effect on its continued listing or on trading of its common stock on the Nasdaq Capital Market, subject to compliance with the other continued listing requirements.
The compliance plan
Under Nasdaq Marketplace Rule 5810(c)(2)(C), Adial has 45 calendar days, until October 2, 2026, to submit a plan to regain compliance. If Nasdaq accepts the plan, the company can be granted an extension of up to 180 calendar days from August 18, 2026.
Adial says it currently anticipates being able to regain compliance once it receives stockholder approval of the conversion of its outstanding shares of Series A Non-Voting Convertible Preferred Stock. It intends to seek that approval at its 2026 Annual Meeting of Stockholders. The company adds that no assurances can be provided that it will satisfy the requirements or obtain the approvals. It plans to submit the compliance plan on time, monitor its stockholders' equity and, if appropriate, consider other options.
If Nasdaq does not accept the plan, or if the company fails to regain compliance within an extension, Adial has the right to a hearing before Nasdaq's Hearing Panel. A hearing request would stay any suspension or delisting action while the process runs. The company expects it would request a hearing in that case, and says its securities would remain listed and eligible for trading at least until the hearing process ends. It also says there is no assurance that the panel would grant continued listing.
About Adial
In its annual report filed March 5, 2026, Adial describes itself as a clinical-stage biopharmaceutical company focused on therapeutics for the treatment or prevention of addiction and related disorders. Its drug candidate AD04 is being developed for alcohol use disorder. AD04 was studied in a Phase 3 clinical trial called ONWARD in subjects with certain target genotypes, identified with the company's companion diagnostic genetic test. Based on its analysis of subgroup data, the company says it is now focused on completing the clinical development program for AD04 in the specified genetic subgroups.
The company reported net losses of approximately $8.0 million for 2025 and $13.2 million for 2024, and accumulated deficits of approximately $90.0 million and $82.0 million as of December 31, 2025 and 2024, respectively. It said its current cash and cash equivalents are not expected to be sufficient to fund operations for twelve months from the date of that report. It also disclosed a collaboration framework agreement entered on March 3, 2026 with a strategic partner, Molteni Farmaceutici.
Who signed
Cary J. Claiborne, President and Chief Executive Officer, signed the 8-K. The annual report was also signed by Vinay Shah as Chief Financial Officer and Kevin Schuyler as Chairman of the Board of Directors.