aibioEnveric Biosciences gets Nasdaq stockholders' equity deficiency notice, plan due October 10, 2025
Tickers ENVB
Nasdaq says Enveric does not meet the $2,500,000 minimum stockholders' equity requirement. The company reported stockholders' equity of $2,184,769 in its latest 10-Q and has until October 10, 2025 to file a compliance plan.
Key facts
- Company
- Enveric Biosciences, Inc. (NASDAQ: ENVB)
- News type
- Listings
- Primary source
- Enveric Biosciences, Inc. Form 8-K filed August 29, 2025 (SEC EDGAR)
Enveric Biosciences, Inc. (Nasdaq: ENVB) received a deficiency letter from Nasdaq on August 26, 2025 saying it does not meet the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market. The company reported the letter in a Form 8-K filed August 29, 2025 under Item 3.01.
What Nasdaq requires
Nasdaq Listing Rule 5550(b)(1) requires companies on the Nasdaq Capital Market to keep stockholders' equity of at least $2,500,000. The company's quarterly report on Form 10-Q for the period ended June 30, 2025 showed stockholders' equity of $2,184,769, below that level. The shares trade under the symbol ENVB, and the threshold is a condition of staying on the Capital Market.
The 8-K also names the alternative standards that would have applied instead: 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 fiscal years. The company's filing says it does not meet either alternative as of the date of the 8-K.
Nasdaq gave the company 45 calendar days, until October 10, 2025, to submit a plan to regain compliance. If Nasdaq staff accept the plan, they may grant an extension of 180 calendar days from the staff notification. If staff reject it, the company may appeal to a Nasdaq Hearings Panel. The 8-K says the notice has no immediate effect on the listing, subject to the company meeting its other continued listing requirements. Enveric says it intends to submit the plan by October 10, 2025, to monitor its equity and to consider further options.
The going-concern warning
The 2024 annual report on Form 10-K says Enveric's management and its independent registered public accounting firm expressed substantial doubt about the company's ability to continue as a going concern as of December 31, 2024. The report says the company will be unable to continue operating for the foreseeable future without additional capital.
The accumulated deficit was $106,074,505 at December 31, 2024. Operating cash outflows were $7,726,139 for 2024, and the loss from operations was $9,632,266. The company says it has not generated revenue, because it is a research and development company, and that further losses are anticipated.
The pipeline
Enveric describes itself as a biotechnology company developing neuroplastogenic small-molecule therapeutics for depression, anxiety, addiction and other psychiatric disorders. The 2024 annual report names the EVM301 Series, led by EB-003, as its lead program and says it is intended to offer a first-in-class approach without inducing hallucinations. The company unveiled an EVM401 Series on February 25, 2025. The report describes its prospective product candidates as in early stages of development and gives no clinical results for EB-003.
Enveric previously developed the EVM201 Series, led by EB-002 (formerly EB-373), and has out-licensed it to MycoMedica Life Sciences, Inc. In March 2023 it selected Avance Clinical, an Australian contract research organization, for a Phase 1 study of EB-373, then its lead candidate for anxiety disorders. The report says the Avance agreement was terminated as of December 31, 2024.
Cash and early 2025 financing
At December 31, 2024 the company had cash of $2,241,026 and working capital of $1,244,848, and the annual report says cash on hand was insufficient to meet operating needs for the 12 months after the filing. In January 2025 the company raised net proceeds of approximately $4.2 million from a public stock offering. Even so, its stockholders' equity had fallen to $2,184,769 by June 30, 2025.
What comes next
The next step is the compliance plan, due October 10, 2025. If Nasdaq accepts it, the company may receive an extension of up to 180 calendar days to restore stockholders' equity above $2,500,000. If it does not, the company may appeal to a Hearings Panel. The plan must lift equity from the June 30, 2025 level, and it must do so while the going-concern warning in the 2024 annual report remains open.