Financial Performance - Net sales for the three months ended September 30, 2024, were $666,625, a 39.6% increase from $477,460 in the same period of 2023[6] - Gross profit for the nine months ended September 30, 2024, was $1,667,811, compared to $1,697,590 for the same period in 2023, reflecting a slight decrease of 1.8%[6] - The operating loss for the three months ended September 30, 2024, was $(1,651,273), an improvement from $(3,022,339) in the same period of 2023[6] - The net loss for the nine months ended September 30, 2024, was $(6,793,596), compared to $(13,034,385) for the same period in 2023, indicating a reduction of 47.8%[6] - The company reported a basic and diluted loss per share of $(0.25) for the three months ended September 30, 2024, compared to $(2.38) for the same period in 2023[6] - Net loss for September 2024 was $6,793,596, a decrease from $13,034,385 in September 2023, representing a 48.1% improvement[21] - The Company reported a net loss of $1,755,234 for the three months ended September 30, 2024, compared to a net loss of $8,625,363 for the same period in 2023[46] - Net loss decreased by $6,870,129, or 79.7%, from $8,625,363 for the three months ended September 30, 2023, to $1,755,234 for the three months ended September 30, 2024[176] Cash Flow and Liquidity - Cash used by operating activities was $4,340,097 in September 2024, compared to $4,064,419 in September 2023, indicating a 6.8% increase[21] - The company reported net cash provided by financing activities of $4,550,198 in September 2024, slightly down from $4,627,710 in September 2023, a decrease of 1.7%[21] - Cash on hand decreased from $761,249 as of September 30, 2023, to $260,885 as of September 30, 2024[178] - The company recognized a right of use asset valued at $284,339 during the period[21] - The company incurred $30,756 in cash paid for interest during the period[21] Research and Development - Research and development expenses for the three months ended September 30, 2024, were $72,422, up 61.2% from $44,950 in the same period of 2023[6] - Research and development expenses increased by $27,472, or 61.1%, from $44,950 for the three months ended September 30, 2023, to $72,422 for the three months ended September 30, 2024[170] Stockholder Equity and Liabilities - Total liabilities and stockholders' deficit increased to $1,143,269 as of September 30, 2024, from $509,498 at the end of 2023[6] - The accumulated deficit as of September 30, 2023, was $(46,965,813), reflecting ongoing financial challenges[7] - The total stockholders' deficit as of September 30, 2023, was $(1,061,087), indicating a deterioration in financial position[7] - As of September 30, 2024, the Company had a stockholders' deficit of $1,793,932 and a working capital deficit of $2,032,284[60] - The total liabilities as of September 30, 2024, were $55,351,706, reflecting ongoing financial obligations[20] Capital Management - The company completed an IPO on August 9, 2023, raising gross proceeds of $6,592,002 from the sale of 1,098,667 shares at $6.00 per share[25] - The company entered into a $5,000,000 investment agreement with a life sciences fund, replacing a $3,200,000 reduction in committed funding from an existing investor[154] - The company issued common stock from agreements totaling 798,929 shares, reflecting an increase in capital[15] - The company issued 1,260,504 shares of Series B Convertible Preferred Stock for an aggregate purchase price of $3,000,000, with payments commencing on January 10, 2024[73] Operating Expenses - Selling expenses increased by $31,220, or 48.6%, from $64,210 for the three months ended September 30, 2023, to $95,430 for the same period in 2024[169] - General and administrative expenses decreased by $1,270,356, or 38.2%, from $3,323,352 for the three months ended September 30, 2023, to $2,052,996 for the three months ended September 30, 2024[171] - Other expense decreased by $5,499,063, or 98.1%, from $5,603,024 for the three months ended September 30, 2023, to $103,961 for the three months ended September 30, 2024[174] Future Outlook - Management believes that increased sales and acceptance of their product by insurance providers will allow the Company to achieve profitability in the near term[63] - The company expects to incur significant expenses and operating losses as it seeks FDA clearance for additional indications of the IB-Stim device[156] - The company anticipates gross profit to increase in the foreseeable future as net sales grow through broader insurer acceptance of the IB-Stim device[161] Shareholder Agreements and Compensation - The total base salaries for nine key employees under employment agreements are $1,920,000 per year, with additional special incentive payments totaling $1,100,000[140] - The company has recorded a backpay amount of $417,390, which was paid in 2023, as part of the special incentive payments[140] - The company anticipates that the special options bonuses of $14,821,830 will be recorded when paid, contingent upon a successful initial public offering[143]
Neuraxis(NRXS) - 2024 Q3 - Quarterly Report