INTELLIGENT BIO SOLUTIONS INC. Material Event - What Happened

Hey there! Let's break down some big news from INTELLIGENT BIO SOLUTIONS INC. so you can understand exactly what's going on and why it matters. Think of this as me explaining it to you over coffee, without all the confusing business talk.

---

1. What happened?

Okay, so in plain English, INTELLIGENT BIO SOLUTIONS INC. just received a warning from Nasdaq because its stock price has been too low, putting its listing on the exchange at risk. To fix this, the company immediately performed a "reverse stock split," which means they reduced the number of shares outstanding and increased the price of each share proportionally.

Basically, something significant just changed for the company. It's not just a small tweak; it's a pretty big deal that could shake things up.

2. When did it happen?

This news broke on December 15, 2025, when the company received the warning letter. The reverse stock split became effective on the same day, and the stock started trading at its new, higher price per share on December 16, 2025. So, it's fresh off the press!

3. Why did it happen?

So, what's the backstory here? Why did INTELLIGENT BIO SOLUTIONS INC. receive this warning and do a reverse stock split?

Well, it looks like Nasdaq has a rule that companies listed on its exchange must maintain a minimum closing bid price of $1.00 per share. INTELLIGENT BIO SOLUTIONS INC.'s stock price fell below this for 30 consecutive business days, triggering the warning. The reverse stock split was a direct move to get the share price back above $1.00 and avoid being delisted from Nasdaq.

Think of it as the company making a strategic move to solve a problem and remain listed on a major stock exchange.

4. Why does this matter?

This is the "so what?" question. Why should you care?

This event is a big deal because being delisted from a major exchange like Nasdaq can seriously hurt a company's reputation, make it harder to raise money, and reduce investor confidence. The reverse stock split is a way to try and prevent that, but it doesn't change the underlying value of the company – it just changes how that value is divided among fewer, more expensive shares.

It's not just a blip; it could really impact the company's ability to operate and grow if they can't maintain their listing.

5. Who is affected?

When something big like this happens, it doesn't just affect the company itself. Here's who might feel the ripple effects:

• Employees: Less direct impact, but a delisting could affect company morale or future growth prospects.
• Customers: Unlikely to be directly affected by the stock price issue or reverse split.
• Investors (that's you!): This is the most affected group. Your number of shares has been reduced (e.g., if you had 10 shares, now you have 1), but the price per share has increased proportionally, so the total value of your investment should remain the same immediately after the split. However, the underlying reason (low stock price) is a concern, and the market's reaction to the split can still impact your investment.
• Competitors: Might see this as a sign of financial weakness, but the direct impact is limited.
• Partners/Suppliers: Similar to customers, unlikely to be directly affected by the stock price issue.

6. What happens next?

So, what's the immediate follow-up, and what should we expect down the road?

Right now, the company has 180 calendar days (until June 15, 2026) to maintain a closing bid price of at least $1.00 for a minimum of 10 consecutive business days. If they don't, they might get an additional 180 days if they meet other Nasdaq requirements. If they still can't comply, their stock could face delisting.

In the future, we'll be watching for whether the stock price consistently stays above $1.00 for the required period. If it doesn't, the company might face further actions from Nasdaq, including potential delisting. It's not a one-and-done event; there will be ongoing developments.

7. What should investors/traders know?

Alright, for those of you watching the stock, here's the practical takeaway:

• Initial Reaction: The reverse stock split itself doesn't change the company's total value, so your investment value should be the same immediately after the split (fewer shares, higher price per share). However, the market often views reverse splits with caution, as they are usually a sign of a struggling stock.
• Long-Term View: While the split helps avoid delisting, it doesn't solve the underlying issues that caused the stock price to drop in the first place. The company still needs to improve its business performance to sustain a higher stock price.
• What to Watch For: Keep an eye on whether the stock price consistently stays above $1.00 for the required period. Also, look for any news about the company's financial health and business operations, as these are what will ultimately drive the stock's long-term performance.
• Your Move: Understand that a reverse split is often a technical fix, not a fundamental one. It's crucial to research why the stock price was low and whether the company's business prospects are improving before making any investment decisions.