aibioEnsysce receives Nasdaq notice on stockholders' equity requirement
Tickers ENSC
Nasdaq said Ensysce Biosciences must submit a plan by July 6, 2026, to regain compliance with its $2.5 million stockholders' equity requirement, or face delisting.
Key facts
- Company
- Ensysce Biosciences, Inc. (NASDAQ: ENSC)
- News type
- Listings
- Primary source
- Ensysce Biosciences, Inc. 8-K (2026-05-22)
Ensysce Biosciences, Inc. received a notice from Nasdaq stating that the company is not in compliance with the $2.5 million stockholders' equity requirement. The company reported the notice in an 8-K filed May 22, 2026 under Item 3.01, which covers notices of delisting or failure to satisfy a continued listing rule. The company received the notice on May 21, 2026, from Nasdaq's Listing Qualifications Department. The notice says the shortfall is measured as of March 31, 2026, under Nasdaq Listing Rule 5550(b)(1). The filing lists the company's principal executive office at 7946 Ivanhoe Avenue, Suite 201, La Jolla, California 92037, and its common stock, par value $0.0001 per share, under the symbol ENSC on The Nasdaq Stock Market LLC.
What Nasdaq requires
According to the filing, the company is subject to delisting unless it submits a plan to regain compliance within 45 days, or by July 6, 2026. If the plan is accepted, Nasdaq may grant an extension of up to 180 days from May 21, 2026, to regain compliance. If the plan is not accepted, the company may appeal to the Nasdaq Hearings Panel. The company said it plans to submit a timely plan to Nasdaq.
The company said it intends to actively explore options to regain compliance with Nasdaq listing requirements. It also cautioned that there can be no assurance that Nasdaq will accept the plan, that the Panel will accept it if the company appeals, or that the company will be able to evidence compliance before any extension expires.
The business
The company's annual report, filed March 30, 2026, describes Ensysce as a clinical stage pharmaceutical company seeking to develop innovative solutions for severe pain relief while reducing the potential for opioid misuse, abuse and overdose. Its primary focus has been opioid pain products and opioid use disorder products. The report says its platforms use a molecular delivery technology designed to deter prescription opioid abuse at the molecular level.
The lead candidate, PF614, is a TAAP oxycodone prodrug. The report says TAAP is designed to release clinically effective oxycodone only when the drug is ingested and exposed to trypsin, a digestive enzyme. The report says the company completed a Phase 1 trial for PF614 in February 2018, and it cites later studies completed in July 2022, October 2022, March 2023 and December 2023. The company says its MPAR platform, when combined with TAAP prodrugs, is designed not only to prevent abuse of prescription drugs but also to reduce overdose occurrences.
Financial position
The annual report shows revenue of $5.1 million for the fiscal year ended December 31, 2025, compared with $5.2 million for 2024. Research and development expense rose to $10.4 million in 2025 from $7.2 million in 2024. Cash used in operations was $7.8 million in 2025 and $7.5 million in 2024. Year-end cash and cash equivalents were $3.5 million at December 31, 2024.
The notice itself gives no financial results, so it does not explain the cause of the equity shortfall.
The risks ahead
Falling below $2.5 million in stockholders' equity is a balance-sheet warning. The filing itself says there can be no assurance that Nasdaq will accept the plan, that a hearings panel would accept it on appeal, or that the company can show compliance before any extension expires. It does not say whether the plan was accepted or whether an appeal was made, and it names no financing or other step that would restore equity.
The notice does not explain the shortfall, but the filings describe a company that spends more than it takes in. Cash used in operations was $7.8 million in 2025, research and development expense rose to $10.4 million from $7.2 million, and year-end 2024 cash and cash equivalents were $3.5 million. On the science, the report cites an efficacy study completed in December 2023 but the sources give no results from it, and the Phase 1 data described show a release profile matching OxyContin OP, not proof of pain relief.