Pasithea receives Nasdaq extension to regain bid price compliance

Pasithea Therapeutics Corp. (Nasdaq: KTTA) said in a current report filed on August 21, 2026 that Nasdaq had granted it a 180-day extension to regain compliance with its minimum bid price requirement. The extension runs to February 16, 2027. Nasdaq sent the letter on August 20, 2026, according to the filing.

How the deficiency arose

The compliance problem started with a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC dated February 20, 2026. That letter said the closing bid price of the company's common stock had been below $1.00 for the prior 30 consecutive business days. On that basis the company was not in compliance with Nasdaq Listing Rule 5550(a)(2).

Under Nasdaq Listing Rule 5810(c)(3)(A), the company received a grace period of 180 days, until August 19, 2026, to regain compliance. The August 20 letter extended that period to February 16, 2027, which the company described as a 180-day extension.

What the company says it may do

The company said it will continue to monitor the closing bid price of its common stock. It also said it may, if appropriate, consider available options to regain compliance, including a reverse stock split of its outstanding securities.

If the company does not regain compliance within the allotted period, Nasdaq will provide notice that the common stock will be subject to delisting. The company would then be entitled to appeal that determination to a Nasdaq hearings panel. The company also said there can be no assurance it will regain compliance during the 180-day extension.

The company and its pipeline

Pasithea describes itself as a clinical-stage biotechnology company focused on the discovery, research and development of treatments for RASopathies, MAPK pathway-driven tumors and other diseases, including central nervous system disorders. Its two therapeutic product candidates include PAS-004, which the annual report calls its lead candidate, a next-generation macrocyclic MEK inhibitor with potential use in neurofibromatosis type 1, MAPK pathway-driven tumors and other conditions.

The annual report says the company received a study may proceed letter for its first-in-human Phase 1 trial of PAS-004 after the FDA cleared the investigational new drug application in December 2023. The company is conducting that study at four clinical sites in the U.S. and three sites in Eastern Europe, and it expects to complete the study in 2028. The primary objective is to assess safety and tolerability. The cover page of the current report checks the box for emerging growth company status. The common stock and the warrants (KTTAW) are both registered under Section 12(b) on The Nasdaq Capital Market. The company's principal executive offices are at 1111 Lincoln Road, Suite 500, Miami Beach, Florida.

Financial position

According to the XBRL data for the annual report, research and development expense was $8.0 million for 2025, up from $7.2 million for 2024. The net loss was $20.4 million in 2025 and $13.9 million in 2024. Cash from operations was negative $15.2 million in 2025 and negative $13.9 million in 2024.

The same data set includes a figure from the quarterly report on Form 10-Q filed August 14, 2026: $45.7 million in cash and cash equivalents at June 30, 2026.

The risks ahead

The stock has until February 16, 2027 to close at or above $1.00, and the company says there can be no assurance it will. It says it is monitoring the price and may consider a reverse stock split. If compliance is not regained, Nasdaq will give notice that the stock is subject to delisting, and the company could appeal to a hearings panel. Pasithea reported a net loss of $20.4 million for 2025 and negative operating cash flow of $15.2 million, and its lead candidate is in a Phase 1 study that it expects to complete in 2028.

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