Nexalin Technology (NXL) Registration filing summary

Company overview and business model

• Neurostimulation medical-device developer; Gen-1 cranial electrotherapy devices treat anxiety, insomnia and depression, with legacy revenue from licensing fees and electrode and cable sales.

• No new U.S. Gen-1 sales or marketing after the FDA’s December 2019 reclassification; new anxiety and insomnia sales require a 510(k), while depression requires Class III authorization through PMA and/or De Novo.

• Gen-2 SYNC and Gen-3 HALO use a 15-milliamp waveform; HALO insomnia trial began in Q2 2026 under the De Novo pathway, with enrollment underway.

• NeuroCare digital health platform targets patient engagement, remote monitoring, physician workflow and clinical data management; software and IP were acquired in Q2 2026.

Financial performance and metrics

• FY 2025 revenue $301,647; U.S. $111,346 and international $190,301. Six months ended June 30, 2026 revenue $27,111, all from U.S. customers.

• Net loss: FY 2025 $8.22M vs. $7.61M FY 2024; H1 2026 $4.34M vs. $3.57M H1 2025.

• At June 30, 2026: cash and equivalents $1.005M, working capital $377,000, stockholders’ equity $1.519M and accumulated deficit $97.203M.

• H1 2026 operating loss $4.367M and operating cash outflow $3.515M; management concluded available cash would not cover at least 12 months of anticipated requirements.

Use of proceeds and capital allocation

• No proceeds from selling-stockholder resales; potential gross proceeds include up to $15M from discretionary AMPA share sales and ~$604,845 from full cash exercise of Common Warrants.

• AMPA and warrant proceeds are intended for working capital and general corporate purposes; 20% of financing gross proceeds, up to the note balance, must prepay the August 2026 promissory note.

• The resale proceeds and potential AMPA proceeds are not expected to fund planned operations for at least 12 months; substantial additional capital is required.