Azitra gets NYSE American notice over $4 million stockholders' equity standard

Azitra, Inc. (NYSE American: AZTR) said on October 3, 2025 that it received a notice from the staff of NYSE American LLC saying the company is not in compliance with the exchange's continued listing standards under Section 1003(a)(ii) of the NYSE American Company Guide. The Branford, Connecticut company announced the notice in a press release filed as Exhibit 99.1 to a Form 8-K.

The equity standard

Section 1003(a)(ii) requires a listed company to have stockholders' equity of $4 million or more if it has reported losses from continuing operations or net losses in three of its four most recent fiscal years. The release does not give Azitra's stockholders' equity, or say by how much it falls below the standard.

The company is subject to the procedures in Section 1009 of the Company Guide. It has until October 31, 2025 to submit a plan of the actions it has taken or will take to regain compliance by April 1, 2027. Azitra says it intends to deliver the plan on time. If the exchange accepts it, the company will be notified in writing and will face periodic reviews, including quarterly monitoring for compliance with the plan.

The release says the notice has no immediate effect on the listing or trading of the common stock, and does not affect the company's business, operations or reporting obligations with the Securities and Exchange Commission.

How it plans to fix the gap

The release says Azitra is assessing and exploring multiple funding avenues and is committed to one or more transactions to meet the exchange's requirements. It names no financing, investor, placement agent, bank or adviser. Its forward-looking statements list the risk that it may fail to raise the required funding in time, which is the same gap the notice describes.

The pipeline behind the listing

The company's annual report filed on February 24, 2025 describes Azitra as an early-stage clinical biopharmaceutical company that has not commenced commercial operations. It engineers strains of Staphylococcus epidermidis to treat skin disease, drawing on a microbial library of approximately 1,500 strains that it screens with artificial intelligence and machine learning.

Its lead candidate, ATR-12, targets Netherton syndrome, a chronic and sometimes fatal skin disease that the report estimates affects about one to nine in every 100,000 people. The company dosed its first patient in a Phase 1b trial of ATR-12 in adults in August 2024 and said it expected initial safety results in the first half of 2025.

ATR-04 targets the rash that patients on EGFR inhibitor therapy can develop. The company has an open IND and Fast Track designation for it, and it expected to dose the first patient in a Phase 1/2 trial in the first half of 2025. The release says the rash affects approximately 150,000 people in the United States.

The February report also says that ATR-01, for ichthyosis vulgaris, is still at the lead optimization and IND-enabling stage, with the company planning those studies in 2025. Azitra's partnership with Bayer Consumer Care, under a joint development agreement from December 2019, has selected two strains for further development, and Bayer holds an exclusive option to license the patent rights to them.

The company describes itself as a pioneer in genetically engineering bacteria for therapeutic use in dermatology. The release lists the risks that its product candidates may not be effective, that earlier study results may not predict later stage outcomes, and that dosing delays may affect the Phase 1/2 trial. The release reports no clinical results to test those claims against.

What the record leaves open

The February report set first-half 2025 targets for the safety readout on ATR-12 and the first patient in the ATR-04 trial. The October release does not report whether either target was met. It also gives no cash, loss or equity figures.

The notice sets two dates: a plan due October 31, 2025, and a compliance deadline of April 1, 2027. Until the exchange responds to the plan, the company's equity shortfall, its funding plan and its trial timelines remain open questions that the release does not answer.

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