NeurAxis Reports 46.2% Revenue Growth but Faces Net Loss in Latest Quarter

NeurAxis, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company achieved net sales of $894,086 for the three months ended June 30, 2025, marking a 46.2% increase from $611,500 in the same period last year. For the six months ending June 30, 2025, net sales reached $1,789,741, up 42.3% from $1,258,135 in the prior year. Despite this revenue growth, NeurAxis reported a net loss of $1,690,418 for the quarter, a decrease from a loss of $2,917,710 in the previous year, and a total net loss of $3,969,102 for the six months, down from $5,038,361.

The company’s financial position improved, with total assets increasing to $7,087,999 as of June 30, 2025, compared to $4,757,572 at the end of 2024. Cash and cash equivalents also rose to $5,988,456 from $3,696,870. NeurAxis's stockholders' equity increased significantly to $4,253,294, up from $2,067,748, reflecting a successful capital raise through the issuance of common stock and the exercise of warrants. The company’s total liabilities rose slightly to $2,834,705 from $2,689,824, primarily due to an increase in non-current liabilities.

Strategically, NeurAxis has made notable changes, including the termination of its license agreement for the NSS-2 Bridge device with Masimo, which allows the company to regain rights to its trademark and patent applications. The company also launched its Rectal Expulsion Device (RED) in 2025, contributing to the revenue growth. Operationally, NeurAxis reported an increase in customer engagement, with a focus on expanding insurance coverage for its IB-STIM device, which is critical for driving future sales.

The company’s operational metrics indicate a growing customer base, with increased sales volume attributed to both full health insurance reimbursement and financial assistance programs for uninsured patients. However, the gross margin decreased from 88.0% to 83.6% due to higher discounts offered through these assistance programs and expired inventory. NeurAxis continues to face challenges, including ongoing operating losses and the need for substantial capital to support its growth initiatives and R&D efforts.

Looking ahead, NeurAxis remains focused on expanding its market presence and achieving profitability. The company plans to continue its efforts to secure insurance coverage for its products and pursue FDA clearance for additional indications. However, management has expressed concerns about its ability to continue as a going concern, emphasizing the need for ongoing capital to fund operations and strategic initiatives. The company’s future performance will depend on its ability to convert its sales pipeline into actual revenue and manage its operational costs effectively.