Business Context and Reporting Period
Company: REED's, INC.
Filing Type: Form 8-K (Current Report)
Date of Report: May 29, 2026 (Event Date); June 3, 2026 (Filing Date)
Context: The Company received a notice from the NYSE American LLC regarding non-compliance with continued listing standards due to insufficient stockholders' equity relative to reported losses.
Key Financial Metrics
This filing does not provide specific revenue, profit, cash flow, or debt figures. However, it discloses the following financial conditions triggering the listing notice:
- Stockholders' Equity: Below the required threshold of $4.0 million (for companies with losses in 3 of the last 4 fiscal years) and $6.0 million (for companies with losses in 5 of the last 5 fiscal years).
- Profitability: The Company has reported losses from continuing operations and/or net losses in three of its four most recent fiscal years and in its five most recent fiscal years.
- Market Capitalization: Does not exceed $50 million, rendering the Company ineligible for certain exemptions.
Material Changes and Listing Status
Listing Status Change:
- The Company's common stock (Symbol: REED) will continue to trade on the NYSE American but will carry a ".BC" designation indicating "below compliance."
- The notice has no immediate impact on the ability to trade shares, provided other listing requirements are met.
- Plan Submission Deadline: June 28, 2026.
- Compliance Target Date: November 29, 2027.
- Consequences: Failure to submit an acceptable plan or failure to regain compliance by the target date will result in delisting proceedings.
Outlook, Risks, and Management Commentary
Management Intent: The Company is committed to achieving compliance and intends to submit a plan to the NYSE American by June 28, 2026. Management states the notice does not affect ongoing business operations or SEC reporting requirements.
Risks and Uncertainties:
- There is no assurance the Company will achieve compliance within the required timeframe.
- Risks include the timely submission of the plan, acceptance of the plan by the NYSE American, and the ability to meet equity standards by November 29, 2027.
- Forward-looking statements are subject to risks detailed in the Company's Form 10-K filed on March 25, 2026.
Investor Verification Checklist
- Verify the specific stockholders' equity amount and net loss figures in the most recent Form 10-K (filed March 25, 2026) to understand the magnitude of the deficit.
- Monitor the submission of the compliance plan by the June 28, 2026 deadline.
- Track the stock symbol for the ".BC" designation indicating below-compliance status.
- Review the Company's strategy for raising equity or improving profitability to meet the $4.0 million or $6.0 million thresholds by November 29, 2027.