NeurAxis, Inc. reported significant financial developments in its 10-Q filing for the third quarter of 2024, highlighting both revenue growth and ongoing challenges in profitability. For the three months ended September 30, 2024, the company achieved net sales of $666,625, a 39.6% increase from $477,460 in the same period of 2023. However, for the nine months ended September 30, 2024, net sales slightly decreased to $1,924,760, down 0.2% from $1,928,590 in the prior year. Gross profit for Q3 2024 was $569,575, reflecting a 38.9% increase from $410,173 in Q3 2023, while gross profit for the nine-month period fell to $1,667,811, a decrease of 1.8% from $1,697,590.

Despite the revenue growth, NeurAxis reported an operating loss of $(1,651,273) for Q3 2024, a significant improvement from $(3,022,339) in Q3 2023. However, the operating loss for the nine months ended September 30, 2024, increased to $(5,690,225), compared to $(5,041,290) in the same period of 2023. The net loss for Q3 2024 was $(1,755,234), a substantial reduction from $(8,625,363) in Q3 2023, while the nine-month net loss decreased to $(6,793,596) from $(13,034,385) in the previous year.

The company’s total assets surged to $1,143,269 as of September 30, 2024, compared to $509,498 at the end of 2023, primarily due to increased cash reserves, which rose to $260,885 from $78,560. However, total liabilities also increased significantly to $2,937,201 from $1,912,739, resulting in a stockholders’ deficit of $(1,793,932) compared to $(1,403,241) at the end of 2023.

Strategically, NeurAxis has focused on enhancing its product offerings, including FDA-cleared devices like IB-STIM and NSS-2 Bridge. The company has also engaged in various financing activities, including the issuance of convertible promissory notes and preferred stock, to support its operations. Notably, the company has faced challenges with its internal controls, identifying material weaknesses in financial reporting due to resource constraints, prompting a remediation plan to improve its accounting practices.

Overall, while NeurAxis has made strides in revenue generation and reducing net losses, it continues to navigate significant operational and financial hurdles as it seeks to establish a more stable footing in the medical device market.