Nexalin Technology Reports 50% Revenue Decline and Increased Operating Losses in Q3 2025

Nexalin Technology, Inc. reported its financial results for the third quarter of 2025, revealing a significant decline in revenue and an increase in operating losses compared to the same period in 2024. For the three months ended September 30, 2025, the company generated $18,149 in net revenue, a decrease of 50% from $36,031 in the prior year. The nine-month figures also showed a decline, with revenues totaling $129,752, down from $141,542 in 2024. The gross profit for the quarter was $14,201, down from $23,337, while the gross profit for the nine months was $89,408, compared to $112,445 in the previous year.

Operating expenses for the third quarter decreased slightly to $2,359,832 from $2,531,854 in 2024, primarily due to a reduction in selling, general, and administrative expenses. However, the company still reported a loss from operations of $2,345,631, a slight improvement from the loss of $2,508,517 in the same quarter last year. For the nine-month period, the loss from operations increased to $5,977,714 from $4,879,250. The net loss for the quarter was $2,276,311, compared to $2,448,257 in 2024, while the nine-month net loss rose to $5,845,635 from $4,773,907.

Nexalin's operational developments included the acceptance of its Q-Submission by the FDA for its Gen-2 SYNC system, aimed at treating Alzheimer’s disease and dementia. This marks a significant step toward initiating U.S. clinical studies for these conditions. The company is also in the process of developing its Gen-3 HALO device, which is intended for home use under physician supervision. The company’s joint venture in China continues to progress, with the Gen-2 device approved for marketing and sale for treating insomnia and depression.

As of September 30, 2025, Nexalin reported total assets of $5,125,940, up from $4,222,732 at the end of 2024, driven by an increase in short-term investments. The company’s cash and cash equivalents stood at $590,075, with a working capital surplus of approximately $4.5 million. However, the company continues to face substantial doubt about its ability to continue as a going concern, given its accumulated deficit of approximately $90.5 million and ongoing operating losses. Management indicated that future operations will depend on the successful execution of its business plan, including generating revenue from its joint venture and obtaining U.S. regulatory approvals for its devices.

Looking ahead, Nexalin anticipates continued operating losses as it executes its development plans and explores strategic initiatives. The company has indicated that it may need to raise additional capital to support its operations and growth strategies. The management's outlook remains cautious, emphasizing the need for favorable market conditions and successful regulatory interactions to achieve its business objectives.