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, driven by expanded 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 and FDA clearance to expand IB-Stim's age indication from 11–18 to 8–21 years.

• Insurance coverage expanded from 4M to 35M covered lives, with expectations to surpass 50M pending additional payer decisions.

• RED (rectal expulsion device) 510(k) submission completed, with commercialization targeted for late 2024.

Financial highlights

• Q3 2024 revenue was $667,000, up 40% from $477,000 in Q3 2023; unit sales increased 50% year-over-year.

• Gross profit for Q3 2024 was $570,000, with gross margin at 85.4%, down 50 bps year-over-year due to a higher mix of discounted financial assistance units.

• Operating loss improved to $1.7M from $3M in Q3 2023; net loss was $1.8M versus $8.6M last year.

• Cash used in operations for the nine months ended September 30, 2024, was $4.3M; cash on hand at quarter-end was $261,000.

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

Outlook and guidance

• Revenue growth expected to accelerate into Q4 2024 and 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.

• Management expects continued operating losses and significant expenses as it pursues broader insurance coverage and new FDA indications.

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

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