Tivic Health Systems, Inc. Nasdaq Deficiency Notice: What Investors Need to Know

Let's talk about Tivic Health Systems, Inc. (the company behind the ClearUP device). Tivic Health is a commercial-stage health technology company. They create bioelectronic medicine. Their main product, ClearUP, is FDA-cleared. This non-invasive, drug-free device treats sinus pain and congestion. It uses special microcurrent technology. I have important news to share. I'll explain it simply, without finance jargon. Think of this as a friendly chat.

1. What happened? Here's the big news. Tivic Health received a warning letter from Nasdaq. Nasdaq is a major stock exchange. The letter, a "deficiency notice," says Tivic Health isn't following a rule. Nasdaq Rule 5550(a)(2) requires a stock price of at least $1.00 per share. Tivic Health's stock closed below $1.00 for 30 business days. They are not meeting Nasdaq's basic listing rules.

2. When did it happen? Tivic Health received this notification letter on March 19, 2026. The 30-business-day period ended just before this date. During this time, the stock traded below $1.00.

3. Why did it happen? This happened because the company's stock price consistently traded below $1.00. Nasdaq sets rules for listed companies. These rules ensure financial health and investor interest. One rule requires the stock price to stay above $1.00. This minimum price rule (Nasdaq Rule 5550(a)(2)) ensures companies have a certain value. It also builds investor confidence. It protects investors from risky or hard-to-sell stocks. Trading below $1.00 for too long triggers this warning. It signals investors do not value the shares highly. This often comes from worries about the company's finances. Concerns include profit, the company's total market value, or more shares issued. More shares issued reduces your ownership percentage.

4. Why does this matter? This is a serious issue.

• For the company: If Tivic Health's stock price stays low, Nasdaq could remove it. This is called "delisting." Its shares would no longer trade on a major exchange. This makes buying and selling shares much harder. It hurts the company's reputation. It reduces its total market value. Raising money for the company becomes harder and more expensive. Large investors often avoid stocks not on major exchanges or below $1.00.
• For investors (that's you!): A delisting notice is a major warning. It signals potential financial trouble or low investor trust. If delisted, the stock moves to less regulated markets. These are called "over-the-counter" (OTC) markets, like OTCQB or Pink Sheets. These markets are riskier. They offer less clear information and fewer rules. Trading activity is much lower. This makes selling your shares difficult, or even impossible, at a fair price. You could lose most, or all, of your investment.

5. Who is affected?

• Customers: They are less directly affected now. But a delisted company might have less money for ClearUP's research or marketing. This could impact future products or support.
• Tivic Health Employees: They may worry about job security. Their stock options or company shares could become worthless. These shares might also be hard to sell if the stock is delisted.
• Investors (that's you!): This directly affects you. Your investment is at significant risk. The company must fix its stock price. Delisting can severely drop stock value. It also makes shares hard to sell. You might face big losses if you try to sell.
• The Company Itself: Its ability to operate is threatened. Raising money, attracting talent, and keeping its public image are also at risk.

6. What happens next? Tivic Health now has time to fix the problem.

• 180-Day Deadline: They have 180 calendar days from March 19, 2026. This deadline is September 15, 2026. They must meet the minimum stock price rule again.
• How to fix it: The stock's closing price must be $1.00 or higher. This must last for at least 10 business days. This needs to happen during the 180-day period.
• Possible Extension: If they don't fix it, Nasdaq might give them another 180 days. This usually happens if they meet other listing rules. They also need to formally state their plan to fix the issue.
• Delisting Risk: If the price doesn't rise, Nasdaq will decide to delist the stock. Tivic Health could appeal this to a Nasdaq panel. But winning is not guaranteed. The appeal process is costly and takes time.
• Company's Plan: Tivic Health will watch its stock price closely. They are exploring "available options." These often include boosting ClearUP's sales or cutting costs. They might also consider business deals. A "reverse stock split" is common. This combines many old shares into one new one. For example, 10 shares become 1. This raises the share price. It does not change the company's total value. It also doesn't change your total investment value. Nasdaq Rule 5810(c)(3)(A)(iv) requires this split 10 business days before the deadline. A reverse split fixes the price issue. But it doesn't fix underlying business problems. Investors sometimes view it negatively.

7. What should investors/traders know?

• Serious Risk: This is a serious situation. Delisting is a major negative for any public company. It puts your investment at significant risk. You could lose all your money.
• Watch the Stock Price: Keep a close eye on Tivic Health's stock price. If it consistently stays below $1.00, the delisting risk grows. This risk increases as the deadline nears.
• Potential for Price Swings: The company might try strategies to raise the price. A reverse stock split is one example. These actions could cause short-term price swings. Expect increased volatility.
• Do Your Homework (Again!): This news adds significant risk. Understand what delisting means before trading. Evaluate the company's ability to recover. Can they fix business issues and the stock price? This is a "buyer beware" situation. Current investors should consider shares becoming hard to sell. Also, expect further loss of value.