VSee Health, Inc. (NASDAQ:VSEE) announced on December 12, 2025 that it had regained compliance with Nasdaq’s Minimum Equity Rule, the requirement that a listed company maintain at least $2.5 million in stockholders’ equity. The company had been below the threshold after receiving a notice from Nasdaq on September 2, 2025, and was granted an extension to demonstrate compliance by December 1, 2025.
The company achieved a pro‑forma equity of approximately $9.5 million by combining the elimination of more than $5 million in legacy SPAC debt (announced October 23, 2025), the conversion of notes, and a $6.0 million private placement of common stock with warrants completed on November 25, 2025. These actions lifted equity well above the $2.5 million minimum and satisfied Nasdaq’s requirement.
Despite the compliance win, VSee Health remains in a liquidity‑tight environment. Its current ratio of 0.16 (as of December 2024) indicates that short‑term assets are far below short‑term liabilities. Net cash used in operations was $1.52 million for the nine months ended September 30, 2025, and $765,094 for the first six months of 2025, underscoring ongoing cash burn. EBITDA stood at –$5.58 million as of October 23, 2025, and the company continues to rely on additional financing or accelerated revenue from federal contracts to sustain operations.
Management emphasized that the balance‑sheet improvements provide a critical window to execute its growth strategy in telehealth, remote patient monitoring, and digital health services. Dr. Imo Aisiku said the transactions "significantly strengthened our balance sheet, eliminated substantial debt and derivative liabilities, and provided the Company with additional working capital to execute our growth strategy."
The compliance restoration averts immediate delisting and preserves access to capital markets, but the company’s low current ratio and unprofitable operating profile remain significant risks. Investors will monitor future financing activity and revenue growth from federal contracts to gauge whether the company can sustain its liquidity position.
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