0001829126-26-002673
SEC filingNexalin Technology, Inc. (NXL) reported FY 2025 revenues of $302K, up 79% YoY from $169K in 2024, driven by increased device sales ($136K vs $56K) and equipment ($89K vs $38K), including related party revenue of $50K. Gross profit rose 82% to $240K, with gross margin improving to 80% from 78%. However, total operating expenses increased 9% to $8.6M, leading to a loss from operations of -$8.4M, up 8% from -$7.8M. Net loss widened slightly to -$8.2M from -$7.6M, with EPS improving to -$0.50 from -$0.83 due to higher shares outstanding (16.4M vs 9.2M). Cash used in operations was -$5.0M, offset by $5.2M financing inflows, resulting in cash increase to $655K and short-term investments of $3.1M. Total assets stood at $4.6M with equity $3.7M. The company advanced FDA interactions for Gen-2 SYNC and Gen-3 HALO devices, but faces going concern doubts amid ongoing losses and Nasdaq compliance issues.
Nexalin reported FY 2025 revenues of $302K, a 79% YoY increase from $169K, primarily from device sales ($136K) and equipment ($89K), with related party contributions of $50K. Gross profit improved 82% to $240K at 80% margin (vs 78%). Operating expenses rose 9% to $8.6M (professional fees $1.3M, salaries $1.9M, SG&A $4.4M, R&D $1.1M), driving operating loss to -$8.4M from -$7.8M. Other income $170K resulted in net loss of -$8.2M (vs -$7.6M), EPS -$0.50 (vs -$0.83) on 16.4M weighted shares (vs 9.2M). Balance sheet shows $4.6M assets, $4.3M current assets (cash $655K, investments $3.1M), liabilities $887K, equity $3.7M.
Revenues totaled $302K, up 79% YoY: devices $136K (+145%), equipment $89K (+135%), licensing $49K (-29%), other $27K. US sales $111K (37%), international/China $190K (63%). Single reportable segment: neurostimulation products. Growth from international device/electrode sales to distributor (related party $50K revenue). Legacy Gen-1 licensing continues; new Gen-2 sales paused pending FDA clearance.
Gross margin expanded to 80% from 78% on higher-margin device/equipment mix (COGS $61K, +68%). Operating margin deeply negative at -2,786% (-$8.4M loss on $302K rev), worsening from prior due to 9% op ex rise (stock comp $3.1M). No profitability; ongoing R&D ($1.1M, -9%) and SG&A ($4.4M, +4%) pressure amid low revenue scale.
Operating cash use -$5.0M (net loss -$8.2M + stock comp $3.1M). Investing -$132K (net investments flat at $3.1M, intangibles $97K). Financing $5.2M (stock sales $4.6M + ATM $524K). Net cash +$80K to $655K. Current ratio strong (4.3M/0.9M), but going concern noted due to losses. Equity $3.7M; accumulated deficit -$92.9M.
Priorities: FDA clearance for Gen-2 SYNC (Q-Sub accepted Oct 2025 for Alzheimer's) and Gen-3 HALO (insomnia trials 2026). Plans: US/Brazil/China trials, virtual clinic, military/gov partnerships. Risks: regulatory delays, China JV exposure, Nasdaq bid price non-compliance (180-day cure to Jul 2026), need additional funding amid -$5M annual cash burn.