SPAR Group, Inc. Receives Nasdaq Delisting Notice Due to Failure to Meet Minimum Stockholders’ Equity Requirement

Key Points:

• SPAR Group, Inc. (SGRP) has received a formal notification from the Nasdaq Stock Market LLC (Nasdaq) regarding non-compliance with the continued listing standards.
• The issue is the company’s failure to maintain the required minimum stockholders’ equity of \$2,500,000 for continued listing on the Nasdaq Capital Market.
• As of December 31, 2025, SPAR Group reported stockholders’ equity of only \$622,000, significantly below the required threshold.
• SGRP also does not currently meet alternative requirements for continued listing—either a minimum market value of listed securities of \$35 million or a minimum net income from continuing operations of \$500,000 in the most recently completed fiscal year or in two of the last three fiscal years.
• The company has 45 calendar days from the date of the Nasdaq notification (April 2, 2026) to submit a plan to regain compliance.
• If Nasdaq accepts the plan, SGRP could be granted an extension of up to 180 calendar days from the date of notification to evidence compliance.

Detailed Overview

SPAR Group, Inc. (“SGRP” or the “Company”), whose common stock is traded under the symbol SGRP on Nasdaq, disclosed in a recent SEC Form 8-K that it received a notification letter from Nasdaq on April 2, 2026. The notice states that the Company’s stockholders’ equity as reported in its Form 10-K for the year ended December 31, 2025, totaled \$622,000—far below the Nasdaq Capital Market’s minimum requirement of \$2,500,000.

Nasdaq’s letter explained that, beyond the equity requirement, SGRP also does not satisfy the alternatives for continued listing:

• Market value of listed securities must be at least \$35 million, or
• Net income from continuing operations must be at least \$500,000 in the most recently completed fiscal year, or in two of the last three years.

SGRP has failed these alternative tests as well.

What Happens Next?

According to the Nasdaq notification, SGRP has 45 calendar days to submit a plan to regain compliance. If the plan is accepted, Nasdaq may grant an extension of up to 180 calendar days from the letter’s date (i.e., until around late September 2026) to demonstrate compliance. The plan should be as definitive as possible and may include financial projections, sale or financing agreements, letters of intent, contracts, and a clear timeline for execution.

Potential Impact on Investors and Share Price

This development is clearly material and price sensitive. Delisting from Nasdaq would significantly reduce the liquidity and visibility of SGRP’s shares and could lead to a sharp decline in share price. The company’s current financial position—specifically, its low stockholders’ equity—raises concerns about its ongoing viability as a publicly traded entity. Investors should monitor closely for:

• Any updates or filings from SGRP regarding its compliance plan or new financing arrangements.
• Potential asset sales, capital raises, or other strategic actions intended to boost equity above the \$2.5 million threshold.
• Further non-compliance risks, including minimum bid price, timely filing of reports, and other Nasdaq rules, as alluded to in the company’s disclosure.

SGRP also included a forward-looking statements disclaimer, emphasizing that the company’s plans and expectations are subject to risks, uncertainties, and that actual results may differ materially from current expectations.

Signature

The report was signed by Steve Hennen, Chief Financial Officer, Secretary, and Treasurer, on behalf of SPAR Group, Inc., dated April 8, 2026.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence and consult with their financial advisors before making any investment decisions. The information provided is based on public filings as of the date listed and may be subject to change without notice.

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