Neuraxis Reports $8.2 Million Net Loss, Revenue Increases by 9.2% in Fiscal Year 2024

Neuraxis, Inc. reported a net loss of $8.2 million for the fiscal year ending December 31, 2024, a significant decrease from the $14.6 million loss recorded in the previous year. The company's revenue increased by 9.2% to $2.7 million, up from $2.5 million in 2023, primarily driven by growth in sales volume from financial assistance programs aimed at uninsured patients. Despite the increase in revenue, the gross margin slightly declined from 87.7% to 86.5%, attributed to a higher proportion of discounted sales through these assistance programs.

The company has made strategic advancements, including the launch of its Rectal Expulsion Device (RED), which is designed to evaluate neuromuscular function in patients with chronic constipation. Neuraxis has also focused on expanding its product pipeline, with ongoing clinical trials for additional indications such as functional nausea and post-concussion syndrome in children. As of December 31, 2024, Neuraxis had 21 full-time employees and had sold its IB-Stim device to approximately 77 children's hospitals across the United States.

Operationally, Neuraxis has faced challenges, including a material weakness in its internal controls over financial reporting, which management is actively working to address. The company has also experienced fluctuations in its expenses, with general and administrative costs rising due to increased legal and compliance expenses following its initial public offering (IPO) in August 2023. The total stockholders' equity as of December 31, 2024, was reported at $2.1 million, with cash reserves increasing to $3.7 million from $78,560 in the previous year.

Looking ahead, Neuraxis aims to secure broader insurance coverage for its products and continue its efforts to obtain FDA clearance for additional indications. The company acknowledges that it will require significant capital to fund its operations and growth initiatives, particularly as it seeks to expand its market presence and enhance product adoption. The management remains optimistic about the potential for future revenue growth, contingent on successful regulatory approvals and market acceptance of its innovative neuromodulation therapies.