Key Highlights

● Southland Holdings received a NYSE American noncompliance notice after a $248.2 million stockholders' Deficit as of June 30, 2026.

● The company failed minimum Equity standards under Sections 1003(a)(i) and 1003(a)(ii) of the Company Guide.

● Southland must submit a compliance plan by October 23, 2026, with a final deadline of March 23, 2028 to regain compliance.

● Trading continues unaffected on NYSE American under SLND and SLND WS while the review process plays out.

Southland Holdings, Inc. (NYSEAMERICAN:SLND), a Delaware-incorporated heavy construction contractor based in Grapevine, Texas, disclosed in an 8-K that it received a noncompliance notice from NYSE American Regulation on September 23, 2026 after reporting a $248.2 million stockholders' deficit as of June 30, 2026. The company must submit a plan to regain compliance with continued-listing standards by October 23, 2026.

The Standards Southland Failed to Meet

The notice cites two related provisions of the NYSE American Company Guide: Section 1003(a)(i), which requires stockholders' equity of at least $2.0 million for companies that have reported losses in two of their three most recent fiscal years, and Section 1003(a)(ii), which requires at least $4.0 million in stockholders' equity for companies with losses in three of their four most recent fiscal years. Southland's filing states the company reported net losses in three consecutive fiscal years, and its $248.2 million stockholders' deficit as of June 30, 2026 falls far short of either equity threshold.

What Happens Between Now and the Deadline

Southland must submit a plan by October 23, 2026 detailing how it intends to regain compliance with the equity standards. If NYSE American Regulation accepts the plan, the company can continue trading under a periodic review process while it executes on the plan, with a final compliance deadline of March 23, 2028, roughly 18 months from the notice. If the exchange rejects the plan, or if Southland fails to make progress against agreed-upon milestones, the exchange may begin delisting proceedings, though the company would retain appeal rights under Section 1010 of the NYSE American Company Guide.

No Immediate Trading Impact

The filing is explicit that the notice does not have an immediate effect on Southland's listing status: its common stock and warrants continue to trade on NYSE American under the symbols SLND and SLND WS. The notice also does not affect the company's underlying Business operations or its SEC reporting obligations, which continue as normal during the compliance review period.

Southland's Business and Emerging Growth Status

Southland Holdings is identified in the filing as a heavy construction contractor and is designated as an emerging growth company under SEC rules, a status generally available to smaller, more recently public companies that provides reduced disclosure and compliance obligations under certain securities laws. A stockholders' deficit of this magnitude at a construction contractor typically reflects cumulative losses that have run well past accumulated capital, though the filing does not break down the causes behind the deficit or discuss any turnaround initiatives beyond the compliance-plan requirement itself.

How a Continued-Listing Standard Differs From a Delisting

It's worth distinguishing this kind of notice from an immediate delisting action. NYSE American's stockholders'-equity standards are one of several financial benchmarks the exchange monitors continuously, and a company that falls short is typically given a structured, multi-step opportunity, first to submit a plan, then to execute against it under periodic exchange review, before any delisting proceeding begins. The 18-month runway to the March 2028 compliance deadline reflects that structured process rather than an imminent removal from the exchange.

The Scale of the Deficit

A $248.2 million stockholders' deficit means Southland's total liabilities exceeded its total Assets by that amount as of June 30, 2026, a Negative equity position rather than merely thin equity, and the specific figure NYSE American Regulation cited in determining the company fell short of both equity thresholds.

Key Dates for the Compliance Process

October 23, 2026 is the deadline for Southland to submit its compliance plan to NYSE American Regulation. March 23, 2028 is the outer deadline for the company to actually regain compliance with the applicable stockholders' equity standard. NYSE American Regulation's acceptance or rejection of the compliance plan will determine whether Southland continues trading under periodic review or faces delisting proceedings. The filing does not disclose specific remediation steps Southland plans to propose, such as a Capital raise or Debt restructuring.