Nexalin Technology Reports $7.6 Million Comprehensive Loss, Revenue Rises 52% to $168,721

Nexalin Technology, Inc. reported a comprehensive loss of $7.6 million for the fiscal year ending December 31, 2024, a 64% increase from the previous year's loss of $4.6 million. The company's revenue rose by 52% to $168,721, primarily driven by sales of medical devices and related supplies. Despite this increase in revenue, Nexalin's operating expenses also grew significantly, totaling $7.9 million, up 36% from $5.8 million in 2023. The rise in expenses was largely attributed to increased professional fees, salaries, and stock compensation, while research and development costs decreased by 38%.

In terms of strategic developments, Nexalin has made significant progress with its Generation 2 (Gen-2) and Generation 3 (Gen-3) devices, which utilize a new 15 milliamp waveform technology. The Gen-2 device has received regulatory approval in China for treating insomnia and depression, while the Gen-3 device is currently undergoing FDA review. The company has also established a joint venture with Wider Come Limited to facilitate the marketing and distribution of its devices in China. This joint venture is expected to enhance Nexalin's operational capabilities in the region, although it remains subject to various regulatory risks.

Operationally, Nexalin has focused on expanding its market presence and product offerings. The company has paused new sales of its Gen-1 device in the U.S. due to regulatory changes but continues to generate revenue from existing devices through licensing fees and sales of accessories. The company plans to conduct clinical trials for the Gen-3 device in the U.S., Brazil, and China, with the aim of addressing the growing demand for non-invasive mental health treatments. As of December 31, 2024, Nexalin had a working capital of approximately $3.4 million, reflecting an increase from $3 million in the previous year.

Looking ahead, Nexalin's management has expressed optimism about the potential for its new devices to disrupt traditional mental health treatment models. The company aims to leverage its advanced waveform technology to provide effective, non-invasive treatments for conditions such as anxiety, insomnia, and depression. However, the company acknowledges the ongoing challenges it faces, including the need for additional funding to support its operations and product development efforts. The management has indicated that it will continue to seek opportunities for growth while navigating the complexities of regulatory compliance and market dynamics.

Overall, Nexalin Technology, Inc. is positioned to capitalize on the increasing demand for innovative mental health solutions, although it must address significant financial and operational challenges to achieve its long-term objectives.