Nexalin Technology (NXL) investor relations material

Executive summary

• Focused on developing neurostimulation devices for mental health, with limited revenue from legacy products and international sales as U.S. marketing is paused pending regulatory clearance.

• Advanced next-generation product development, including FDA acceptance of Gen-2 SYNC system for Alzheimer's and dementia and clinical trials for Gen-3 HALO device for insomnia.

• Faces substantial doubt about ability to continue as a going concern due to recurring losses, negative cash flows, and Nasdaq minimum bid price deficiency.

• Priorities include obtaining FDA clearance for Gen-2 and Gen-3 devices and executing U.S. clinical trials.

Financial highlights

• Revenue for Q1 2026 was $14,950, down 64% year-over-year, mainly due to lower international equipment sales.

• Gross profit was $13,133, with gross margin rising to 88% from 66% due to higher licensing fee mix.

• Operating expenses increased 5% to $2,133,035, driven by higher professional fees and salaries, partially offset by lower R&D and SG&A.

• Net loss for Q1 2026 was $2,096,837, compared to $1,988,337 in Q1 2025.

• Cash and cash equivalents at March 31, 2026 were $1,207,895, with short-term investments of $1,500,590.

Outlook and guidance

• Expects continued operating losses and negative cash flow as development and clinical trials progress through 2026 and beyond.

• Additional capital likely required to fund planned activities, including pivotal insomnia study.

• Revenue expected to fluctuate due to customer purchasing patterns and timing of international sales.