Financial Performance - Net sales for Q3 2025 reached $811,414, an increase of 21.7% compared to $666,625 in Q3 2024[9] - Gross profit for the nine months ended September 30, 2025, was $2,179,890, up 30.7% from $1,667,811 in the same period of 2024[9] - Operating loss for Q3 2025 was $(2,100,085), compared to $(1,651,273) in Q3 2024, reflecting an increase in selling expenses[9] - Net loss available to common stockholders for Q3 2025 was $(2,321,503), compared to $(1,800,054) in Q3 2024[9] - Basic and diluted loss per share for Q3 2025 was $(0.24), slightly improved from $(0.25) in Q3 2024[9] - The company reported a net loss of $(6,091,898) for the nine months ended September 30, 2025, down from $(6,793,596) in the same period of 2024[9] - For the nine months ended September 30, 2025, NeurAxis reported a net loss of $6,091,898, a decrease of 10.3% compared to a net loss of $6,793,596 for the same period in 2024[12] - As of September 30, 2025, the Company reported a net loss of $2,122,796 for the three months ended, compared to a net loss of $1,755,234 for the same period in 2024, indicating an increase in losses of approximately 20.9%[36] Equity and Cash Position - Total stockholders' equity as of September 30, 2025, was $2,284,941, compared to a deficit of $(1,793,932) as of September 30, 2024[11] - Cash and cash equivalents at the end of the period increased to $4,377,109 from $260,885 at the end of September 2024, representing a significant growth[12] - The Company had stockholders' equity of $2,284,941 and cash of $4,377,109 as of September 30, 2025, indicating a strong liquidity position despite ongoing losses[53] - The company had cash of $4,377,109 and a working capital surplus of $1,840,599 as of September 30, 2025[53] Expenses and Costs - Research and development expenses for the nine months ended September 30, 2025, totaled $347,433, a 17.7% increase from $295,188 in the prior year[9] - Selling expenses for the nine months ended September 30, 2025, amounted to $414,134, a significant increase from $154,299 in the same period of 2024[25] - Selling expenses for Q3 2025 were $292,678, a significant increase from $34,468 in Q3 2024, representing a growth of 748%[25] - The company recorded expired and other inventory charges of $24,339 for the nine months ended September 30, 2025, compared to $2,030 for the same period in 2024, indicating a significant increase in inventory-related expenses[24] Inventory and Reserves - Inventory reserves totaled $28,793 as of September 30, 2025, compared to $4,454 at the end of 2024, indicating increased inventory management efforts[24] - The estimated returns reserve totaled $8,714 as of September 30, 2025, up from $5,000 as of December 31, 2024[48] Financing Activities - The company generated $5,204,211 in net cash from financing activities, compared to $4,550,198 in the same period of 2024, indicating a 14.4% increase[12] - NeurAxis raised $4,999,999 from the issuance of common shares during the nine months ended September 30, 2025, contributing to its cash flow from financing activities[12] - Common stock issued from agreements in Q3 2025 included 39,471 shares, contributing $112,493 to additional paid-in capital[11] Legal and Regulatory Matters - The Company recorded a tentative settlement of $750,000 related to ongoing litigation, with payments starting in January 2026[114] - The Company has no pending or threatened legal proceedings that could materially affect its operations[124] Future Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[9] - Future capital requirements will depend on various factors, including the ability to secure purchase orders and the adoption of insurance coverage by commercial insurance carriers, which is a top priority for the Company[54] - The Company has incurred losses and negative cash flows from operations since inception, raising substantial doubt about its ability to continue as a going concern[56] Stock and Shares - The weighted average shares of common stock outstanding for basic and diluted EPS were 9,878,020 for the three months ended September 30, 2025, compared to 7,172,229 for the same period in 2024, reflecting a 37.7% increase in shares outstanding[37] - The Company had 9,886,294 shares of common stock issued and outstanding as of September 30, 2025, an increase from 6,990,227 shares as of December 31, 2024[81] - During the nine months ended September 30, 2025, the Company issued 1,538,461 shares of common stock for gross proceeds of $4,999,999 at a price of $3.25 per share[84] Research and Development - Research and development expenses are primarily focused on clinical studies and new product development, with costs expensed as incurred[26] - The Company has developed four FDA cleared products, including the IB-STIM and the Rectal Expulsion Device (RED), with ongoing efforts to expand their indications[15] Lease and Asset Management - The Company recognized operating lease expense of $24,193 for the three months ended September 30, 2025, compared to $27,891 for the same period in 2024[79] - As of September 30, 2025, the Company reported operating lease right-of-use assets of $277,219 and operating lease liabilities of $219,933, with a total present value of lease payments amounting to $282,767[80] - The total present value of operating lease payments as of September 30, 2025, was $282,767, with total lease payments amounting to $363,523[80]
Neuraxis(NRXS) - 2025 Q3 - Quarterly Report