FEMASYS INC

FEMASYS INC. Faces Nasdaq Delisting Threat: An Investor Update

This update focuses on a critical development for FEMASYS INC.: its stock listing on Nasdaq.

1. Event Description FEMASYS has received an extension from Nasdaq to regain compliance with the exchange's minimum bid price rule. This rule requires a company's stock to trade at or above $1.00 per share to maintain its listing. FEMASYS's stock has consistently traded below this threshold for an extended period, specifically for 30 consecutive business days before its initial warning.

A stock price persistently below $1.00 often signals underlying operational or financial challenges. For FEMASYS, these issues include:

• Ongoing net losses.
• Slower-than-expected market adoption of key products.
• Difficulties securing necessary funding for its research and development pipeline.

Nasdaq enforces the $1.00 minimum bid price to ensure market stability and investor confidence. The sustained trading below this level reflects significant investor concern, eroding confidence and demand for the stock. This concern stems from factors such as declining revenue in key segments, challenges in securing new contracts, and delays in product commercialization.

2. Event Date/Timeline

• July 16, 2025: Nasdaq first warned FEMASYS that its stock had traded below $1.00 for 30 consecutive business days.
• January 12, 2026: The initial 180-day compliance period expired with the stock still below $1.00. FEMASYS then applied for an extension.
• January 13, 2026: Nasdaq granted FEMASYS a second 180-day extension.
• July 13, 2026: This is the new deadline for FEMASYS to regain compliance.

3. Impact Assessment Maintaining a Nasdaq listing is crucial for FEMASYS. It provides essential liquidity for shareholders, enhances the company's reputation, and facilitates access to capital markets for future funding.

A delisting would likely force the stock to trade on less regulated "over-the-counter" (OTC) markets. This typically makes shares harder to buy and sell, potentially further depressing their value. While the extension offers a temporary reprieve, the underlying issues persist.

This situation creates significant uncertainty, which can lead to increased stock price volatility as the market reacts to company news and progress toward compliance. A struggling stock price and potential delisting can also hinder FEMASYS's ability to raise capital for growth initiatives, attract talent, or pursue strategic partnerships vital for its long-term viability.

4. Financial Impact The potential delisting poses significant financial risks. If FEMASYS fails to regain compliance and is delisted from Nasdaq, its shares would likely trade on the over-the-counter (OTC) markets. This typically results in significantly reduced liquidity, negatively impacting the company's valuation and making it more challenging to raise capital through future equity offerings.

Furthermore, delisting could deter institutional investors, who often have mandates preventing them from investing in non-exchange-listed securities. The company may also incur administrative and legal costs associated with compliance actions, such as a reverse stock split. While the extension itself has limited immediate financial impact beyond administrative costs, the underlying threat of delisting carries substantial financial implications for the company's long-term capital structure and market perception.

5. Company's Plan to Regain Compliance FEMASYS now has until July 13, 2026, to ensure its stock closes at $1.00 or higher for at least ten consecutive business days. The company is actively evaluating various strategies, including:

• Operational Improvements: Implementing cost-reduction programs, accelerating product development timelines, focusing on higher-margin segments, and exploring new market opportunities to improve financial performance.
• Financial Restructuring: Evaluating options for capital infusion or debt refinancing to strengthen its balance sheet and fund operations.
• Reverse Stock Split: This remains a primary option. A reverse stock split reduces the number of outstanding shares and proportionally increases the share price (e.g., a 1-for-10 split means you'd own 1 share worth 10 times more for every 10 shares you previously held). While it doesn't change the total value of your investment immediately, it's often viewed as a last resort and can sometimes lead to further price declines if the underlying business issues are not resolved.

6. Key Takeaways for Investors

• High Risk, High Volatility: FEMASYS's stock will likely remain highly volatile. Investors should prepare for significant price swings as the company works toward compliance.
• Reverse Split Implications: Understand that while a reverse split can solve the immediate listing problem, it does not address the fundamental reasons for the low stock price. Its announcement or implementation can sometimes trigger further selling pressure.
• Delisting is a Real Threat: Failure to meet the July 13, 2026 deadline could lead to delisting, severely impacting liquidity and potentially the value of your investment.
• Monitor Company Performance: Pay close attention to FEMASYS's upcoming financial reports (e.g., Q1 2026 earnings) and any announcements regarding its strategic initiatives or progress toward compliance. Look for concrete signs of improved financial health and operational execution.
• Diversification and Due Diligence: This situation underscores the importance of a diversified portfolio and thorough due diligence before making investment decisions.