Nexalin Technology Reports $8.22 Million Net Loss and 79% Revenue Growth for Fiscal Year 2025

Nexalin Technology, Inc. reported a net loss of approximately $8.22 million for the fiscal year ending December 31, 2025, compared to a loss of $7.61 million in the previous year, marking an increase of 8% year-over-year. The company's revenue for 2025 was approximately $301,647, a significant increase of 79% from $168,721 in 2024. This growth was primarily attributed to increased sales of devices and equipment, including electrodes and patient cables, as well as licensing fees from existing customers. Despite the revenue growth, Nexalin continues to face substantial financial challenges, with an accumulated deficit of approximately $92.87 million as of December 31, 2025.

The company has made strategic advancements in its product development, particularly with its Gen-2 SYNC and Gen-3 HALO devices, which are currently in the FDA review process. In October 2025, the FDA accepted Nexalin's Q-Submission for the Gen-2 SYNC system targeting Alzheimer’s disease and dementia, indicating progress in its clinical development efforts. However, Nexalin has paused marketing efforts for its Gen-1 device in the U.S. following a reclassification by the FDA in December 2019, which has impacted its revenue generation capabilities.

Operationally, Nexalin's employee count remains low, with only eight full-time employees as of December 31, 2025. The company has indicated plans to expand its workforce as it progresses through clinical trials and product development. The company also reported an increase in professional fees and salaries, contributing to a rise in total operating expenses to approximately $8.63 million, up from $7.89 million in 2024. The increase in expenses reflects the costs associated with clinical trials, regulatory compliance, and marketing efforts.

Looking ahead, Nexalin faces significant challenges, including the need to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share, as it received a deficiency notice in January 2026. The company has until July 20, 2026, to meet this requirement. Additionally, Nexalin's ability to continue as a going concern is contingent upon its success in executing its business plan and obtaining additional financing, as it anticipates ongoing operating losses and negative cash flows in the near future. The company plans to utilize its at-the-market offering facility to raise capital, although there are no guarantees regarding the availability of sufficient funds on favorable terms.