Nexalin Technology (NXL) Q4 2025 earnings summary

Executive summary

• Focused on developing neurostimulation devices for mental health, with Gen-2 and Gen-3 products in clinical and regulatory stages targeting anxiety, insomnia, depression, and Alzheimer's disease.

• Revenue remains limited, primarily from legacy Gen-1 device licensing and international Gen-2 sales, as U.S. Gen-1 sales are paused due to FDA reclassification.

• Significant challenges include recurring losses, negative cash flows, Nasdaq minimum bid price non-compliance, and material weaknesses in internal controls.

• Ongoing efforts to obtain FDA clearance for Gen-2 and Gen-3 devices and expand clinical trials in the U.S. and internationally.

Financial highlights

• 2025 revenue: $302,000 (up 79% from $169,000 in 2024), driven by increased international device and equipment sales.

• Net loss for 2025: $8.2 million (8% higher than 2024's $7.6 million).

• Gross profit: $240,000 (80% margin), up from $132,000 (78% margin) in 2024.

• Operating expenses rose 9% to $8.6 million, mainly due to higher salaries, professional fees, and SG&A.

• Cash and equivalents at year-end: $655,000; short-term investments: $3.1 million.

• Accumulated deficit: $92.9 million as of December 31, 2025.

Outlook and guidance

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

• Plans to fund operations through at-the-market equity offerings and other financing activities.

• Focus on obtaining FDA approvals, expanding clinical trials, and launching virtual clinic and home-use models.