Nexalin Technology (NXL) Registration filing summary

Company overview and business model

• Designs and develops non-invasive neurostimulation devices for mental health conditions, focusing on anxiety, insomnia, depression, and other disorders.

• Devices use proprietary 15 milliamp waveform technology, with Gen-2 for clinical use and Gen-3 as a home-use headset integrated with a virtual clinic platform.

• Revenue streams include device sales, leasing, and recurring sales of proprietary single-use electrodes.

• Joint venture in China enables marketing and sales of Gen-2 devices for insomnia and depression, with regulatory approvals in China, Oman, and Brazil.

• Plans to disrupt traditional mental health treatment by offering cost-effective, home-based, physician-supervised alternatives to drugs and psychotherapy.

Financial performance and metrics

• Reported equity method investment in the China joint venture of $100,651 as of September 30, 2024.

• Raised approximately $9.6 million in gross proceeds from a 2022 public offering.

• Completed a $5.25 million public offering in July 2024 to regain Nasdaq equity compliance.

• Management and principal stockholders collectively own about 28.88% of outstanding shares as of January 9, 2025.

Use of proceeds and capital allocation

• Will not receive proceeds from resale of shares by selling stockholders; may receive up to $11.04 million from warrant exercises.

• Any proceeds from warrant exercises will be used for working capital, capital expenditures, and product development.