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Nexalin Technology Inc. (NXL-9.45%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details Nexalin's ongoing operations and financial results, highlighting a net loss of $7,607,182 for the year, compared to a net loss of $4,648,709 in the previous year. The increase in net loss is attributed to higher operating expenses, including professional fees and stock compensation.
Total revenues for 2024 were $168,721, an increase from $110,748 in 2023, primarily driven by sales of devices and supplies. Despite the revenue increase, the company continues to face challenges in achieving profitability.
Operating expenses rose to $7,886,774 in 2024 from $5,781,356 in 2023. This increase was mainly due to higher professional fees, salaries, and stock-based compensation expenses.
Nexalin's cash and cash equivalents as of December 31, 2024, were $574,485, with an additional $2,905,438 in short-term investments. The company raised approximately $4.5 million through a public offering during the year.
The company continues to focus on the development and commercialization of its Generation 2 and Generation 3 neurostimulation devices. These devices are in various stages of regulatory review and clinical trials in the United States, China, and other regions.
Nexalin's joint venture in China is progressing, with the Gen-2 device approved for marketing and sale for the treatment of insomnia and depression. The joint venture is expected to enhance the company's market presence in Asia.
The company acknowledges the need for additional capital to fund its operations and development plans. Management is exploring strategic options and potential partnerships to support its financial needs.
Nexalin's management has identified material weaknesses in internal controls over financial reporting and is taking steps to address these issues. The company plans to enhance its financial accounting controls and processes to improve its reporting capabilities.
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. annual 10-K report dated March 14, 2025. To report an error, please email earnings@qz.com.