Netcapital Inc. has announced that it has regained compliance with Nasdaq's minimum bid price requirement, a crucial step for the company to maintain its listing on the exchange. This update comes after the company's stock price rose above $1.00 per share for ten consecutive business days, following a period of non-compliance that began earlier this year.
The finance services company received a notification from Nasdaq on October 7, 2026, confirming that it had met the necessary criteria after a challenging period. The company was previously notified on February 4, 2026, that it had fallen below the minimum bid price requirement due to its stock closing below $1.00 for 30 consecutive business days.
Despite this positive development, Netcapital still faces hurdles. The company remains out of compliance with Nasdaq Listing Rule 5250(c)(1) due to its failure to timely file its Annual Report on Form 10-K for the fiscal year ended April 30, 2026, and its Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2026. Netcapital has until October 23, 2026, to submit a plan to regain compliance with this rule.
On October 13, 2026, the company issued a press release announcing its regained compliance with Nasdaq Listing Rule 5550(a)(2) and also disclosed the engagement of Adeptus Partners, LLC as its new independent registered public accounting firm. This change comes after the resignation of its previous auditor, Fruci & Associates II, PLLC, which was effective August 12, 2026.
The engagement of Adeptus is significant as it will support the re-audit of the company’s financial statements for fiscal years 2022 through 2026, which have been under scrutiny. Investors have been advised not to rely on previously issued financial statements until the necessary evaluations and corrections are completed.
Netcapital's journey illustrates the challenges many companies in the finance services sector face regarding compliance with listing standards and timely financial reporting. As the company works to address its filing obligations, it remains to be seen how these developments will impact its operations and investor confidence.
Looking ahead, Netcapital's ability to submit a satisfactory compliance plan to Nasdaq will be critical. The company must also navigate the complexities of its financial reporting and auditing processes to restore trust among its investors and stakeholders.
Details were not available in the SEC filing regarding specific next steps beyond the compliance plan submission deadline.