ZEO Q2 revenue falls 11% to $16.2M; net loss widens 3% as Nasdaq delisting deadline looms

Filed August 14, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 13, 2025 · ~2 min read

Key Changes

• high

  Nasdaq deficiency notice received April 2026 for failing to maintain $1 minimum bid price; company has until October 20, 2026 to regain compliance or face delisting, which would impair capital-raising ability.

  Risk Factors: Nasdaq delisting verify on EDGAR →
• high

  Material weaknesses in internal controls now detailed: deficiencies in reconciliations, journal entries, and financial statement elements across revenue, expenses, assets, and liabilities resulted in material adjustments.

  Controls and Procedures verify on EDGAR →
• high

  Gross margin compressed sharply: cost of revenues rose from 40.2% to 52.9% of revenue in Q2 (44.9% to 54.9% six-month), driven by higher material costs from domestic-content requirements.

  MD&A: Cost of Revenues verify on EDGAR →