Lyra Therapeutics, Inc. SEC Filing Summary

Event Description

Lyra Therapeutics, Inc. received a delisting notice from Nasdaq, letting them know that Nasdaq plans to delist the company's common stock from the Nasdaq Global Market. Nasdaq decided Lyra Therapeutics now qualifies as a "public shell." This is a term Nasdaq uses for companies that have pretty much stopped their main business operations, existing mostly on paper without significant ongoing assets or employees.

Nasdaq pointed to these main reasons for their decision:

• Lyra stopped developing its main drug candidate, LYR-210, after looking at its pipeline and because of big financial problems and not enough funding.
• The company laid off almost all its employees, including its CEO and CFO. These executives are now working as consultants to help wind down the company or look for other strategic options.
• Lyra didn't meet Nasdaq's rule requiring a minimum of $2.5 million in stockholders' equity, even after getting extensions and warnings.

Lyra Therapeutics has asked for a hearing with a Nasdaq Hearings Panel to appeal the delisting decision. This temporarily puts the delisting process on hold.

Event Date/Timeline

Here's a timeline of the key events that led to this situation:

• February 2, 2026: Lyra Therapeutics got the delisting notice from Nasdaq.
• January 12, 2026: The company announced it was stopping LYR-210 drug development and laying off a lot of staff.
• August 2025: Nasdaq first warned Lyra Therapeutics about not meeting its minimum stockholders' equity requirement.

Impact Assessment

This delisting notice comes with some really serious and widespread consequences:

• For the Company: Getting delisted from Nasdaq really hurts Lyra Therapeutics' reputation, its ability to raise money, and its chances of surviving long-term. It's a big sign that the company is in deep trouble, possibly about to collapse or make a huge change in direction. A major exchange no longer sees the company as a viable, operating business.
• For Investors: This news is incredibly bad for investors. Your investment faces extremely high risk, and you could potentially lose a lot, if not all, of your money. If delisted, the stock will move to less regulated "over-the-counter" (OTC) markets, which will drastically reduce how easily you can buy or sell shares.
• For Employees: Lyra already laid off most employees when it stopped drug development, which confirms just how bad things are for its workforce.
• For Patients: The suspension of LYR-210 development means patients won't see this potential new treatment move forward from Lyra.
• For Competitors: Other companies working on similar treatments might see this as one less competitor, though it also highlights how risky drug development can be.

Financial Impact

This situation has huge financial implications:

• Lyra's failure to meet Nasdaq's $2.5 million minimum stockholders' equity requirement directly led to the delisting notice, clearly showing severe financial distress.
• Lyra specifically said they stopped LYR-210 development because of big financial problems and a lack of funding, which really emphasizes their shaky financial state.
• For investors, a potential delisting would make it much harder to trade shares. This usually leads to a big, often irreversible, drop in share value, with a significant risk of losing your entire investment.
• The company's ability to raise money in the future through traditional public markets is severely damaged, further threatening its long-term financial survival.
• The company didn't provide much detail about specific financial figures beyond the stated equity deficiency in their filing.

Key Takeaways for Investors

Investors should really pay attention to these critical points:

• Extreme Caution: This development is exceptionally negative and serious. Any investment in Lyra Therapeutics right now is highly speculative and carries an extremely high risk of losing everything.
• High Delisting Risk: While Lyra is appealing, there's no guarantee they'll succeed. The appeal is generally considered a long shot in situations like this. If delisted, the stock will be much harder to trade and will likely lose a lot of its value.
• No Operating Business: Understand that the company has effectively stopped its main operations and doesn't have a viable business model or significant assets. Nasdaq sees it as a "shell."
• Liquidity Issues: If the stock moves to an OTC market, you'll find it much harder to buy or sell shares quickly at a fair price because of significantly wider bid-ask spreads and lower trading volume.
• Thorough Due Diligence: If you're thinking about doing anything with this stock, you absolutely must understand the full implications of a delisting and the company's current lack of operations. This is a distressed asset, not a typical investment scenario.