Nexalin Technology Reports 163% Revenue Increase but Faces $1.58M Net Loss in Q2 2025

Nexalin Technology, Inc. reported its financial results for the quarter ending June 30, 2025, revealing a significant increase in revenue compared to the same period last year. The company generated $70,588 in net revenue, a 163% increase from $26,840 in the second quarter of 2024. This growth was primarily attributed to a large shipment of boards to China, which contributed to a gross profit of $47,750, up from $19,593 in the prior year. However, the company continues to face challenges, posting a net loss of $1,580,987, which is a 23% increase from the loss of $1,284,493 reported in the same quarter last year.

For the first half of 2025, Nexalin's total revenue reached $111,603, a modest increase of 6% from $105,511 in the first half of 2024. The cost of revenues also rose significantly, leading to a gross profit decline to $75,207 from $89,108. Operating expenses surged to $3,707,290, a 51% increase compared to $2,459,841 in the previous year, driven by higher salaries, research and development costs, and increased stock-based compensation. The company reported a loss from operations of $3,632,083 for the six-month period, compared to $2,370,733 in the same period last year.

Nexalin has made strategic advancements, including the ongoing development of its Generation 2 (Gen-2) and Generation 3 (Gen-3) medical devices, which utilize a new 15 milliamp waveform technology. These devices are currently in the FDA's Q-submission process, aimed at obtaining regulatory approval for commercialization. The company has also established a joint venture in Hong Kong to facilitate the clinical development and distribution of its devices in China and other regions. As of June 30, 2025, Nexalin had 17,417,929 shares of common stock outstanding, reflecting its efforts to raise capital through equity offerings.

Operationally, Nexalin's customer base remains concentrated, with two customers accounting for 85% of revenues in the latest quarter. The company continues to face liquidity challenges, with cash and cash equivalents of approximately $431,000 and short-term investments of $5.4 million as of June 30, 2025. The management has expressed concerns about the company's ability to continue as a going concern, emphasizing the need for additional capital to support ongoing operations and development plans. Looking ahead, Nexalin aims to leverage its joint venture and product advancements to enhance its market position and address the growing demand for mental health solutions.