Nexalin Technology (NXL) Registration filing summary

Company overview and business model

• Designs and develops neurostimulation medical devices for mental health conditions such as anxiety, insomnia, and depression, using non-drug, non-psychotherapy approaches.

• Gen-1 device is FDA-cleared for anxiety and insomnia; Gen-2 and Gen-3 devices are in regulatory review and clinical trials, with Gen-2 approved for insomnia and depression in China.

• Revenue is currently derived from legacy device licensing and consumables; new U.S. sales are paused pending regulatory clearance.

• Operates a joint venture in China (48% ownership) for device commercialization, and has a Military & Government Advisory Board targeting U.S. government and military markets.

Financial performance and metrics

• As of April 22, 2025, public float was approximately $29.3 million, with 13,327,929 shares outstanding.

• Net tangible book value as of December 31, 2024, was $3.4 million ($0.26 per share); post-offering, as adjusted net tangible book value would be $12.8 million ($0.67 per share).

• Recent public offering in July 2024 raised $5.25 million, restoring compliance with Nasdaq's minimum stockholder equity rule.

Use of proceeds and capital allocation

• Net proceeds will be used for general corporate purposes, including working capital, operating expenses, and capital expenditures.

• May allocate funds to acquisitions or investments in complementary businesses or products, though no current commitments exist.

• Unused proceeds will be invested in short-term, investment-grade, interest-bearing instruments.