NXLNasdaqElectromedical & Electrotherapeutic ApparatusUS GAAP · USD

Nexalin Technology, Inc.

Nexalin Technology, Inc. develops and commercializes non-invasive electrotherapy devices used in mental health and related therapeutic applications. The company sells devices, consumable supplies, and licensing or treatment-fee arrangements tied to customer use of its systems, with activity in the United States and overseas markets.

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Revenue0.3m USD
+78.8 %y/y
Operating profit (EBIT)-8.4m USD
−8.2 %y/y
EBIT margin-2,781.7%
+1,814.4 ppy/y
Net income-8.2m USD
−8.1 %y/y

Fiscal year 2025 · change from previous year

Development 2021–2025

-10-8-6-4-202m USD2021: 0.14 m USD2021: EBIT -6.0 m USD20212022: 1.3 m USD2022: EBIT -1.8 m USD20222023: 0.11 m USD2023: EBIT -5.7 m USD20232024: 0.17 m USD2024: EBIT -7.8 m USD20242025: 0.30 m USD2025: EBIT -8.4 m USD20250.30-8.4
RevenueOperating profit (EBIT)

Business

Share of revenue
Devices35 %

Electrotherapy systems sold for therapeutic use in clinical and other settings.

Equipment and Consumables40 %

Boards, electrodes, patient cables, and other hardware used with the device.

Licensing Fees15 %

Monthly licensing arrangements that allow customers to use the technology.

Treatment Fees and Supplies10 %

Usage-based treatment fees and recurring supply sales tied to installed systems.

Products

Reported · share of revenue
45.1%29.5%16.3%9.1%FY2025100 %
  • Device Sales45.1 %
  • Equipment29.5 %
  • Licensing Fee16.3 %
  • Other9.1 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Nexalin sells to customers that operate or distribute therapeutic devices, including healthcare-related users and overseas buyers of equipment and systems. Its revenue model combines one-time equipment sales with recurring licensing and treatment-based fees, so customers buy both for access to the technology and for ongoing use of the device platform.

Healthcare and therapeutic users

Buy devices and related supplies for therapeutic use and ongoing patient treatments.

International equipment customers

Purchase boards, devices, and accessories for deployment outside the U.S.

License and treatment-fee customers

Pay recurring fees for access to the technology and for each treatment performed.

Strategy

Nexalin’s strategy centers on expanding commercialization of its device platform, including overseas sales, while continuing to serve existing U.S. customers. The company also emphasizes intellectual property protection, reimbursement coverage, and maintaining product safety and regulatory acceptance, all of which are important for adoption in healthcare markets.

Commercialize overseas marketsShort term

International sales provide a path to revenue while U.S. approval and reimbursement are developed.

Obtain U.S. approval and reimbursement supportMedium term

U.S. market access and coverage are key to broader adoption in healthcare settings.

Protect intellectual property and product safetyLong term

Defending the technology and maintaining safety are central to competitive positioning and adoption.

Geography

Q1/2026

The company serves customers in the United States and also sells devices and equipment overseas. Reported revenue disclosures specifically mention shipments to China and a prior device sale to Oman, showing that international transactions can materially affect period-to-period results.

United States100 %

Risks

Nexalin faces commercialization risk because adoption depends on regulatory approval, reimbursement, and competition from other therapies. The business is also exposed to foreign trade and tariff issues because it imports components and exports products, while its small scale and recurring operating losses increase financing and going-concern risk.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Going-concern and financing risk1Tariff and trade exposure2
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Going-concern and financing riskImpact: CriticalLikelihood: High

    The company has limited cash resources and has relied on equity funding to support operations.

    Exposure: Corporate liquidity

  2. Tariff and trade exposureImpact: HighLikelihood: Low

    Imported components and exported products can be affected by tariffs or retaliatory trade actions.

    Exposure: China and other export markets

  3. Regulatory approval riskImpact: High

    U.S. device sales depend on obtaining and maintaining approval for the product.

    Exposure: U.S. market access

  4. Reimbursement and coverage riskImpact: High

    Healthcare adoption can be limited if payers do not cover the therapy adequately.

    Exposure: Healthcare commercialization

  5. Competition from alternative therapiesImpact: Medium

    Customers may choose other treatment modalities with stronger clinical or economic support.

    Exposure: Therapeutic device market

Accounting

Judgemental items
Revenue recognition across devices, licensing, and treatment fees

Different contract types may recognize revenue at different times or based on usage.

Impact: Affects reported revenue timing and quarterly comparability

Revenue mix and gross margin variability

Equipment sales, device sales, and licensing fees carry different margins.

Impact: Can move gross profit materially from period to period

Fair value changes on short-term investments

Unrealized gains flow through other comprehensive income.

Impact: Affects comprehensive loss and equity

Going-concern assessment

Liquidity assumptions and financing plans influence financial statement presentation.

Impact: Important for evaluating solvency and disclosure risk

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Last updated: 24/09/2026