NeurAxis Reports Q1 2025 Financial Results with Increased Revenue but Higher Net Loss

NeurAxis, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $2.28 million, an increase from a loss of $2.12 million in the same period last year. The company's revenue for the three months ended March 31, 2025, was $895,655, marking a 38.5% increase from $646,635 in the prior year. This growth was attributed to increased sales volume from customers with full insurance reimbursement coverage and those utilizing financial assistance programs. Despite the rise in revenue, the company experienced a decrease in gross margin from 88.4% to 84.4%, primarily due to higher costs associated with manufacturing and shipping, as well as a greater proportion of discounted sales through financial assistance programs.

In terms of operational changes, NeurAxis has been focusing on expanding its product offerings and market presence. The company has developed four FDA-cleared products, including the IB-STIM device, which is aimed at treating functional abdominal pain in children. The company is also working on the Rectal Expulsion Device (RED) and other indications for its products. As of March 31, 2025, NeurAxis had cash and cash equivalents of $2.01 million, down from $3.70 million at the end of 2024, reflecting the ongoing cash burn associated with its operations.

The company’s total liabilities increased to $2.77 million as of March 31, 2025, compared to $2.69 million at the end of 2024. This rise was driven by an increase in non-current liabilities, which grew significantly due to the issuance of convertible notes and other financing arrangements. NeurAxis reported a working capital surplus of $439,823, down from $1.83 million at the end of the previous fiscal year, indicating a tightening liquidity position.

NeurAxis has also made strategic decisions to enhance its operational capabilities, including hiring additional accounting personnel to improve internal controls and compliance with U.S. GAAP. The company is actively pursuing broader insurance coverage for its products, which is critical for driving future revenue growth. Management has expressed that achieving profitability will depend on successfully marketing its products and securing purchase orders from both existing and new customers.

Looking ahead, NeurAxis anticipates continued investment in research and development to expand its product pipeline and improve market penetration. The company acknowledges the challenges it faces, including the need for significant capital to fund operations and the uncertainty surrounding the adoption of its products by insurance carriers. NeurAxis remains committed to its growth strategy, although it recognizes the inherent risks and uncertainties associated with its business model.