NeurAxis (NRXS) Q3 2024 earnings summary

Executive summary

• Revenues grew 40% year-over-year to $667,000 in Q3 2024, marking the strongest quarter in company history and driven by increased insurance coverage and higher unit sales.

• Net loss narrowed to $1.76M for Q3 2024 from $8.63M in Q3 2023, reflecting higher sales and lower G&A expenses post-IPO.

• Secured a permanent Category 1 CPT billing code effective January 2026, streamlining reimbursement and billing.

• Received FDA clearance to expand IB-Stim's age indication from 11–18 to 8–21 years, nearly doubling the addressable market.

• Advanced commercialization plans for RED, a new device targeting chronic constipation, with FDA clearance expected late 2024.

Financial highlights

• Q3 2024 revenue was $667,000, up 40% from $477,000 in Q3 2023; gross profit grew to $570,000 with an 85.4% margin.

• Operating loss improved to $1.7M from $3M in Q3 2023; net loss narrowed to $1.8M from $8.6M year-over-year.

• Cash on hand at September 30, 2024, was $261,000, with $5M in new funding expected to close mid-November.

• No long-term debt as of September 30, 2024; $148,000 in short-term debt for insurance premium financing.

• Cash used in operations for the nine months ended September 30, 2024, was $4.3M.

Outlook and guidance

• Expects continued revenue growth in Q4 2024 and into 2025, driven by expanded insurance coverage and RED commercialization.

• Targeting cash flow break-even and profitability in 2025, supported by strong gross margins and increased sales volume.

• Anticipates meaningful RED revenues in 2025, with a soft launch planned post-FDA clearance.

• Multiple pipeline indications are in clinical or regulatory stages, with anticipated FDA clearances and expanded insurance coverage through 2027.

• Substantial doubt exists about the ability to continue as a going concern without additional funding.