$NXL

Nexalin Technology, Inc.

CIK:0001527352|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenues, net (including related party revenue of $0 and $8,275 for the three months ended June 30, 2026 and 2025, respectively, and $0 and $11,859 for the six months ended June 30, 2026 and 2025, respectively)	$ 12,161	$ 70,588	$ 27,111	$ 111,603
Cost of revenues	3,264	22,838	5,081	36,396
Gross profit	8,897	47,750	22,030	75,207
Operating expenses:
Professional fees	407,444	178,597	902,740	546,413
Salaries and benefits	501,717	370,401	1,000,277	705,759
Selling, general and administrative	782,571	893,836	1,575,368	1,823,056
Research and development	564,480	225,774	910,862	632,062
Total operating expenses	2,256,212	1,668,608	4,389,247	3,707,290
Loss from operations	(2,247,315)	(1,620,858)	(4,367,217)	(3,632,083)
Other income, net:
Interest income, net	129	4,690	163	5,793
Gain on sale of short-term investments	8,016	32,438	29,041	52,557
Other income		2,743	2,006	5,457
Total other income, net	8,145	39,871	31,210	63,807
Loss before provision for income taxes	(2,239,170)	(1,580,987)	(4,336,007)	(3,568,276)
Provision for income taxes
Loss before net loss of affiliate	(2,239,170)	(1,580,987)	(4,336,007)	(3,568,276)
Net loss of affiliate				(1,048)
Net loss	(2,239,170)	(1,580,987)	(4,336,007)	(3,569,324)
Other comprehensive income (loss):
Unrealized gain (loss) from short-term investments	(406)	513	(494)	1,343
Comprehensive loss	$ (2,239,576)	$ (1,580,474)	$ (4,336,501)	$ (3,567,981)
Net loss per share attributable to common stockholders - Basic	$ (0.11)	$ (0.10)	$ (0.21)	$ (0.25)
Net loss per share attributable to common stockholders - Diluted	$ (0.11)	$ (0.10)	$ (0.21)	$ (0.25)
Weighted Average Shares Outstanding - Basic	21,142,920	15,718,149	20,485,567	14,526,149
Weighted Average Shares Outstanding - Diluted	21,142,920	15,718,149	20,485,567	14,526,149

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (4,336,007)	$ (3,569,324)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock compensation	886,998	1,208,944
Depreciation	6,844
Amortization	27,061	9,912
Gain on sale of short-term investments	(29,041)	(52,557)
Return on investment in Joint Venture		864
Changes in operating assets and liabilities:
Accounts receivable	28,641	(49,805)
Accounts receivable - related party		3,007
Prepaid expenses and other current assets	(207,742)	50,086
Inventory	(101,989)	1,604
Accounts payable	(5,131)	84,631
Accrued expenses	215,750	(30,741)
Net cash used in operating activities	(3,514,616)	(2,343,379)
Cash flows from investing activities:
Proceeds from sales and maturities of short-term investments	8,098,254	17,701,000
Purchase of short-term investments	(5,001,190)	(20,103,127)
Purchase of equipment	(49,276)
Purchase of patents	(42,476)	(35,215)
Purchase of trademarks	(35,307)	(8,841)
Net cash provided by (used in) investing activities	2,970,005	(2,446,183)
Cash flows from financing activities:
Sale of common stock for cash, net of financing fees		4,646,397
Net proceeds from sales of common stock under ATM program	894,786
Net cash provided by financing activities	894,786	4,646,397
Net increase (decrease) in cash and cash equivalents	350,175	(143,165)
Cash and cash equivalents - beginning of period	654,783	574,485
Cash and cash equivalents - end of period	1,004,958	431,320
Non-cash investing and financing activities:
Acquisition of licensed technology through issuance of common stock and deferred share obligation	724,591
Remeasurement of deferred share consideration capitalized to acquired licensed technology	(11,721)
Unrealized gain (loss) on short-term investments	$ (406)	$ 1,343

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current Assets:
Cash and cash equivalents	$ 1,004,958	$ 654,783
Short-term investments		3,068,429
Accounts receivable, including related party receivables of $7,974 and $37,812, respectively	52,930	81,571
Inventory	233,462	131,473
Prepaid expenses and other current assets	570,756	363,014
Total Current Assets	1,862,106	4,299,270
Equipment, net of accumulated depreciation of $9,527 and $2,683, respectively	42,432
Intangible assets, net	1,099,641	336,049
Total Assets	3,004,179	4,635,319
Current Liabilities:
Accounts payable	239,448	244,579
Accrued expenses	858,504	642,754
Deferred share obligation (Note 4)	386,804
Total Current Liabilities	1,484,756	887,333
Total Liabilities	1,484,756	887,333
Stockholders’ Equity:
Common stock, $0.001 par value; 100,000,000 shares authorized; 22,003,706 and 19,186,346 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	22,003	19,186
Accumulated other comprehensive loss		406
Additional paid in capital	98,700,839	96,595,806
Accumulated deficit	(97,203,419)	(92,867,412)
Total Stockholders’ Equity	1,519,423	3,747,986
Total Liabilities and Stockholders’ Equity	$ 3,004,179	$ 4,635,319