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Nexalin Technology, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenues to $36,031 from $24,113 in the same quarter the previous year. The increase is attributed to sales of supplies and parts.
Cost of revenues for the quarter was $12,694, representing 35% of sales, compared to 16% in the same quarter of the previous year. This increase in cost ratio is due to lower margins on supplies and parts.
The company reported a gross profit of $23,337 for the quarter, compared to $20,140 in the previous year.
Operating expenses increased to $2,531,854 from $2,435,677, primarily due to an increase in professional fees and stock compensation expenses.
Net loss for the quarter was $2,448,257, compared to $2,297,189 in the previous year.
Cash used in operating activities was $2,809,914, while cash used in investing activities was $2,205,079, and cash provided by financing activities was $4,516,184.
Nexalin had a working capital of $4,907,589 as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various business developments, including the formation of a joint venture in China and regulatory approvals in Oman and Brazil.
Nexalin continues to focus on the development and commercialization of its neurostimulation products, with ongoing efforts to obtain FDA clearance for its Gen-3 device.
The company identified material weaknesses in its internal controls over financial reporting and plans to engage an outside firm to address these issues.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Nexalin Technology Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.