NXLHIGH SIGNALFINANCIAL10-K

NXL's share count increased substantially to 20.6M shares while the company removed specific FDA regulatory language regarding its Gen-2 and Gen-3 headset devices.

The dramatic increase in outstanding shares from 13.3M to 20.6M suggests significant dilution, likely from equity raises or warrant exercises as the cash-burning company seeks funding. The removal of language about FDA Q-submission process for their core medical device technology raises questions about regulatory progress and could signal setbacks in their key product development timeline.

Comparing 2026-03-25 vs 2025-03-14View on EDGAR →
FINANCIAL ANALYSIS

While revenue grew notably year-over-year with corresponding gross profit expansion, the company's cash burn intensified with operating cash flow declining meaningfully to -$5.0M. The balance sheet shows increased liquidity pressure with current liabilities rising substantially to $887K, though cash position improved modestly to $655K. The overall financial picture reflects a development-stage company struggling with cash flow while attempting to commercialize early-stage medical device technology.

FINANCIAL STATEMENT CHANGES
Gross Profit
P&L
+81.8%
$132K→$240K

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Revenue
P&L
+78.8%
$169K→$302K

Strong top-line growth of 78.8% — accelerating demand or successful expansion into new markets.

Total Liabilities
Balance Sheet
+62.3%
$547K→$887K

Liabilities grew 62.3% — significant increase in debt or obligations, assess impact on financial flexibility.

Current Liabilities
Balance Sheet
+62.3%
$547K→$887K

Current liabilities surged 62.3% — significant near-term obligations; verify ability to meet short-term debt.

Operating Cash Flow
Cash Flow
-25.7%
-$3.9M→-$5.0M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Inventory
Balance Sheet
-24.7%
$175K→$131K

Inventory reduced 24.7% — lean inventory management or demand outpacing supply.

Cash & Equivalents
Balance Sheet
+14%
$574K→$655K

Cash grew 14% — improving liquidity position supports investment and shareholder returns.

LANGUAGE CHANGES
NEW — 2026-03-25
PRIOR — 2025-03-14
ADDED
As of March 23, 2026 there were 20,581,646 shares of the Registrant s common stock outstanding.
Forward-looking statements may be characterized by terminology such as believe, continue, anticipate, aim, expect, could, should, may, might, objective, intend, plan, will, estimates, projects, strategy and similar expressions.
These forward-looking statements represent our intentions, plans, expectations, assumptions, and beliefs about future events and are subject to risks, uncertainties, and other factors, including unpredictable or unanticipated factors that we have not discussed in this Report.
As a result of these factors, we cannot assure you that the forward-looking statements in this Report will prove to be accurate.
Furthermore, if the forward-looking statements prove to be inaccurate, the inaccuracy may be material.
Considering the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all.
The forward-looking statements in this Report represent our views as of the date of this Report.
We anticipate that subsequent events and developments will cause our views to change; however, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by U.S.
You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this Report.
ii RISK FACTORS SUMMARY The following is a summary of the principal risks that could materially adversely affect our business, results of operations and financial condition, all of which are more fully described in Item 1A, Risk Factors.
REMOVED
As of March 12, 2025 there were 13,303,523 shares of the Registrant s common stock outstanding.
All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including projections of financial performance; statements of plans, strategies and objectives of management for future operations; any statement concerning developments, performance or industry rankings relating to products or services; any statements regarding future economic conditions or performance; any statements of assumptions underlying any of the foregoing; and any other statements that address activities, events or developments that Nexalin Technology, Inc.
and its subsidiaries ( Nexalin or the Company and also referred to as we, us and our ) intends, expects, projects, believes or anticipates will or may occur in the future.
Forward-looking statements may be characterized by terminology such as believe, anticipate, expect, should, intend, plan, will, estimates, projects, strategy and similar expressions.
The Company disclaims any duty to update such forward-looking statements, all of which are expressly qualified by the foregoing, except as may be required by law.
The waveform that comprises the basis of our Generation 2 or Gen-2 and new Generation 3 or Gen-3 headset devices is in Q-submission process for review by the FDA.
We plan to conduct clinical trials for the Gen-3 device in the U.S.
If and when we obtain FDA clearance for the Gen-3 device, we intend to extend the development and commercialization of our devices for sale in the U.S.
Our Technology We have designed and developed a new advanced waveform technology to be emitted at 15 milliamps through new and improved medical devices referred to as Gen-2 and Gen-3.
The Nexalin regulatory team has made a strategic decision to develop strategies for pilot trials and/or pivotal trials in various mental health disease states.
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