Nexalin Shares Surge 95% After $5M Offering and SEC Filings

Company Overview

NEXALIN TECHNOLOGY INC (Nasdaq: NXL) develops non-invasive neurostimulation devices aimed at treating mental health conditions. Headquartered in Houston, Texas, the company utilizes its Deep Intracranial Frequency Stimulation (DIFS™) platform to deliver targeted bioelectronic therapy. Its Gen-2 15 milliamp device holds regulatory clearance in China, Brazil, and Oman.

Corporate Structure

With between 11 and 50 employees, Nexalin’s workforce includes specialists in clinical, regulatory, and operational roles. Key personnel include Dr. Mark Agresti, a psychiatrist applying the technology in clinical settings; Carolyn Shelton, EVP of Regulatory, Quality, and Clinical Affairs; and Ashwani Kumar, Project Manager focused on U.S. Food and Drug Administration submissions. As a publicly traded company, Nexalin adheres to SEC regulations and reports to shareholders.

Neurostimulation by David Matos

Developments and News

On May 6, 2025, Nexalin completed an underwritten public offering of 3,850,000 shares at $1.30 per share, generating approximately $5.0 million in gross proceeds for advancing its neurostimulation research and commercialization efforts.
On September 19, 2025, the company filed an SEC Form 25 notifying Nasdaq of the removal from listing and registration of its warrants expiring September 22, 2025. The following day, Nexalin submitted a Form 8-K (items 8.01 and 9.01), and on September 23, 2025, it filed an amended Form 10-K/A for fiscal 2024.
On October 8, 2025, NXL shares closed at $1.83, reflecting a 95.05% increase on a volume of 20,808,900 shares, following an opening price of $1.83 and an intraday high of $1.95.

Financial and Strategic Analysis

For the twelve months ended June 30, 2025, Nexalin reported revenue of $174,800 and a gross margin of 67.6%, while net losses resulted in a negative net margin of 5,062.9%. Trailing twelve-month EBITDA was recorded at –$8.997 million. As of October 8, 2025, Nexalin’s market capitalization was approximately $31.8 million, with 17.65 million shares outstanding and no debt reported. The company’s forward price-to-earnings ratio (NTM) was 3.91.

The $5.0 million raised in the May offering improved Nexalin’s financial position but may lead to dilution for existing shareholders. Continued reliance on equity financing highlights the need for growth in revenue from device sales or strategic partnerships. Management focuses on investing in clinical studies and regulatory filings to support U.S. commercialization and expand into additional international markets.

Market Position and Industry Context

Nexalin operates in the bioelectronic medicine segment of the mental health market, competing in areas such as transcranial magnetic stimulation and other electrical stimulation therapies. Its DIFS™ technology aims for differentiation through deeper brain penetration and offers a drug-free treatment model. Regulatory approvals in China, Brazil, and Oman support the device’s safety profile; however, entry into the U.S. market is contingent on obtaining FDA clearance. The competitive landscape includes established neuromodulation companies and emerging medical device startups. As of October 8, 2025, the company's stock exhibited high volatility (beta of 3.66) and a year-to-date price decline of 66.0%, reflecting investor caution amid operating losses and ongoing capital-raising efforts.

tl;dr

On May 6, 2025, Nexalin raised $5.0 million via a public offering at $1.30 per share. In September 2025, the company amended its 2024 Form 10-K, filed a Form 8-K, and delisted warrants set to expire on September 22. NXL shares increased by 95.05% to $1.83 on October 8, 2025, with over 20 million shares traded. Future prospects for Nexalin depend on FDA approval efforts, growth in device sales, and additional funding to support commercialization.