Serina Therapeutics, Inc.

Serina Therapeutics Faces NYSE American Delisting Threat Due to Insufficient Equity

Serina Therapeutics, Inc. faces a critical challenge after the NYSE American notified the company on January 9, 2026, that it no longer meets the exchange's continued listing standards. Publicly disclosed on January 15, 2026, this formal notice highlights Serina's failure to maintain the minimum stockholders' equity required for listing.

The Core Problem: An Eroding Financial Foundation

Stockholders' equity, which represents a company's net worth (assets minus liabilities), serves as a crucial indicator of financial health. Serina's equity has deteriorated significantly, primarily due to persistent financial losses in recent years. As of September 30, 2025, the company's stockholders' equity totaled just $1.6 million.

This amount falls below the NYSE American's minimum thresholds, which depend on a company's recent profitability:

• $2.0 million for companies reporting losses in two of their three most recent fiscal years.
• $4.0 million for companies with losses in three of their four most recent fiscal years.
• $6.0 million for companies with losses in all five of their most recent fiscal years.

Given Serina's reported losses in three of its four most recent fiscal years (up to December 31, 2024), its $1.6 million equity falls below all applicable thresholds, triggering the delisting warning.

Why This Matters: Deepening Financial and Operational Risks

This notice serves as a serious warning for Serina Therapeutics, a clinical-stage biotechnology company developing novel polymer therapeutics. Biotech companies typically incur significant R&D expenses before generating substantial revenue, making a strong financial position essential. The potential for delisting carries multiple serious implications:

• Credibility & Capital Access: Delisting from a major exchange like the NYSE American damages Serina's credibility, making it harder to raise essential capital from investors or secure partnerships to fund costly clinical trials and drug development.
• Operational Viability: Without adequate funding, Serina's ability to continue its research and development programs, including advancing its lead drug candidates, is at risk. This could delay or discontinue programs, or even cease operations.
• Investor Impact: For current investors, this signals heightened financial instability and risk. Delisting typically leads to a substantial drop in stock price and a move to less liquid, "over-the-counter" (OTC) markets, making shares harder to trade and potentially eroding value. Future institutional investment becomes highly unlikely.
• Employee & Partner Uncertainty: The company's financial struggles create significant uncertainty for employees and could deter potential collaborators or licensing partners.

The Path Forward: A Challenging Recovery Plan

Serina Therapeutics now faces a critical deadline: by February 8, 2026, it must submit a detailed plan to the NYSE American, detailing how it will regain compliance with the equity requirements. This plan must outline a credible strategy to improve its financial position.

If the NYSE American accepts Serina's plan, the exchange will grant the company an 18-month "Cure Period," until July 9, 2027, to execute its strategy and achieve compliance. During this period, Serina's stock would continue to trade on the NYSE American, but under close scrutiny.

Key Elements of a Potential Recovery Strategy (and associated risks):

• Capital Raising: Often a primary route for biotechs, Serina might attempt to raise new funds through equity offerings (selling more shares) or debt financing. However, given the delisting threat, securing favorable terms would be challenging, and equity raises would likely significantly dilute existing shareholders.
• Strategic Partnerships/Licensing: Securing a partnership or licensing deal for its drug candidates could provide non-dilutive capital. However, such deals are competitive and often contingent on strong clinical data, which may not be timely or sufficient.
• Asset Sales: Divesting non-core assets could generate cash but might also reduce the company's future potential.
• Cost Reduction: Implementing aggressive cost-cutting measures, including R&D program cuts or workforce reductions, could extend the cash runway but might also compromise future growth.
• Achieving Profitability: For a clinical-stage biotech, achieving profitability within 18 months is highly improbable without a major clinical breakthrough and rapid commercialization.

What Investors Need to Monitor Closely:

1. The Plan's Acceptance: Investors should immediately focus on whether the NYSE American accepts Serina's proposed plan by February 8, 2026. Rejection would likely trigger immediate delisting.
2. Financial Runway: Investors should scrutinize Serina's latest financial reports (10-Q and 10-K filings) for critical metrics such as:
   • Current Cash and Cash Equivalents: How much cash does the company have on hand?
   • Net Losses: The magnitude of losses in recent quarters and years.
   • Cash Burn Rate: The company's cash burn rate, which determines its "cash runway" – how long it can operate before needing more funding.
3. Strategic Execution: If the plan is accepted, investors need to track progress on any capital raises, partnership announcements, or significant cost reductions.
4. Clinical Trial Progress: While not directly addressing equity, positive clinical trial results could enhance the company's ability to raise capital or secure partnerships.

Investor Takeaway:

This situation significantly elevates Serina Therapeutics' risk profile. While the company has a chance to present a plan and work toward compliance, the filing explicitly states, "there can be no assurance that the Company will be able to achieve compliance." Investors should anticipate continued stock price volatility and consider the high probability of further dilution or, ultimately, delisting, which would severely impact the liquidity and value of their investment. Thorough due diligence into the company's financial health, strategic options, and clinical pipeline is essential.