Nexalin Technologies Gives 2022 Year-Finish Enterprise Update

HOUSTON, March 27, 2023 (GLOBE NEWSWIRE) — Nexalin Technologies, Inc. (the “Company” or “Nexalin”) (Nasdaq: NXL NXLIW) these days offered a enterprise update for the year ended December 31, 2022.

Mark White, CEO of Nexalin Technologies stated, “Nexalin has created considerable progress towards commencing clinical trials of our Gen-two and Gen-three neurostimulation devices in the United States. Nexalin’s enhanced neurostimulation devices combine innovation, frequencies and algorithms to deliver an unprecedented resolution for treating mental wellness problems without the need of the have to have for medication. Even though our Gen-1 device was previously cleared by the U.S. Meals and Drug Administration (FDA) to treat sufferers with anxiousness, depression, and insomnia, we think that the new devices will permit deeper penetration into the brain and deliver enhanced patient response without the need of adverse side effects. Offered alterations in FDA health-related device specifications, the Organization decided to not continue with the Gen-1 device, offered the good results of the new devices, primarily based on each research and approvals in China. In addition, we are very encouraged by the preliminary information offered by the University of California San Diego that supports the security of using our subsequent generation devices. As a outcome, we appear forward to presenting our new Gen-two and Gen-three devices to the FDA in the coming months for the therapy of anxiousness and insomnia. We are also on track to submit our PMA with the FDA for the therapy of Key Depressive Disorder (MDD) in Q3 2023. In addition, we seek to expand our neurostimulation devices into new indications, such as substance use disorder (addiction), Alzheimer’s, traumatic brain injury (TBI), PTSD and chronic discomfort. All round, we stay committed to our mission of bringing our new, helpful and drug-absolutely free therapy to sufferers with mental wellness challenges in the United States and about the planet.”

“Shortly immediately after getting the approval of our Generation two (Gen-two) health-related device by China’s National Healthcare Items Administration (NMPA) for insomnia and depression, our distributor, Wider Come Restricted, commenced sales of our Gen-two devices in China. Even though we are pleased with our income development in 2022, our sales in China have been significantly impacted by the pandemic. Regardless of this, our distributor continues to concentrate on promoting the instrument and disposables to crucial opinion leaders at top hospitals in China offered the thriving clinical research and validation by China’s NMPA in the locations of insomnia and depression. We are very encouraged by the interest and feedback in our neurostimulation technologies. Most not too long ago, our neurostimulation technologies was featured in a white paper by the Second Xiangya Hospital of Central South University, China, which additional validates that our Gen-two device has the potential to substantially enhance mental healthcare outcomes amongst sufferers impacted with generalized anxiousness disorder. As a outcome, we appear forward to advancing the industrial rollout, as properly as conducting extra clinical investigation research in China across a quantity of unique indications. The clinical trials in China have been funded in their entirety by our Chinese distributor.”

“In 2022, we succeeded in our aim of putting Nexalin in a stronger monetary position by way of the Initial Public Providing and concurrent listing on the Nasdaq. As of December 31, 2022, we had money, money equivalents and brief-term investments of $7. million, which we think delivers us adequate liquidity to execute our enterprise program. As a outcome, we think we are funded to help FDA approval in the United States.”

Monetary final results

Nexalin has filed its Report on Kind ten-K for the year ended December 31, 2022 with the Securities and Exchange Commission. A complete copy of the filing can be obtained on the SEC’s internet site at www.SEC.gov and on the Company’s internet site. We refer you to the complete filing for extra info concerning Nexalin and its monetary final results and situation. We deliver a short summary of our monetary final results for the year ended December 31, 2022 under.

Income for the year ended December 31, 2022 was $1.three million, compared to $.1 million for the year ended December 31, 2021, an enhance of $1.two million. The enhance in income for 2022 compared to 2021 was mainly due to enhanced device sales in 2022.

Gross profit was $1. million for the year ended December 31, 2022, compared to $.1 million for the year ended December 31, 2021.

Total operating costs for the years ended December 31, 2022 and 2021 have been $two.eight million and $six.1 million, respectively. The lower was mainly due to a lower in stock-primarily based compensation and expert costs. Loss from operations the years ended December 31, 2022 and 2021 have been $1.eight million and $six. million, respectively. Net loss for the years ended December 31, 2022 and 2021 have been $1.7 million or ($.30) per fundamental and diluted share, and $six.1 million or ($1.43) per fundamental and diluted share, respectively.

As of December 31, 2022, the Organization had money, money equivalents and brief-term investments of $7. million.

About Nexalin Technologies, Inc.

Nexalin styles and develops revolutionary neurostimulation goods to uniquely and successfully enable combat the ongoing international mental wellness epidemic. All Nexalin’s goods are non-invasive and undetectable to the human physique and deliver relief to these afflicted with mental wellness challenges without the need of adverse side effects. Nexalin utilizes bioelectronic health-related technologies to treat mental wellness challenges without the need of the have to have for drugs or psychotherapy. Nexalin believes its neurostimulation health-related devices can penetrate structures deep in the mid-brain that are related with mental wellness problems. Nexalin believes the deeper penetrating waveform in its subsequent generation devices will produce enhanced patient response without the need of any adverse side effects. The Nexalin tACS device was not too long ago authorized in China by the National Healthcare Items Administration (NMPA) for the therapy of insomnia and depression. In September 2018, Nexalin entered into a series of agreements with Wider Come Restricted (“Wider”), a organization formed below the laws of the People’s Republic of China. Pursuant to this agreement, Nexalin and Wider have agreed to discover the formation of a joint venture entity to be domiciled in Hong Kong. This new entity will conduct clinical investigation and implement a enterprise distribution program for the Nexalin device in the Asia Pacific area. More info about the Organization is out there at: https://nexalin.com/.

FORWARD-Searching STATEMENTS

This press release consists of statements that constitute “forward-hunting statements,” These statements relate to future events or Nexalin’s future monetary functionality. Any statements that refer to expectations, projections or other characterizations of future events or situations or that are not statements of historical reality (like without the need of limitation statements to the impact that Nexalin or its management “believes”, “expects”, “anticipates”, “plans”, “intends” and related expressions) need to be regarded forward hunting statements that involve dangers and uncertainties which could trigger actual events or Nexalin’s actual final results to differ materially from these indicated by the forward-hunting statements. Forward-hunting statements are topic to a lot of situations, numerous of which are beyond the manage of the Organization, like these set forth in the Danger Variables section of the Company’s Report on Kind ten-K for the year ended December 31, 2022 and other filings as filed with the Securities and Exchange Commission. Copies of such filings are out there on the SEC’s internet site, www.sec.gov. Such forward-hunting statements are created as of the date hereof and may perhaps come to be outdated more than time. Such forward-hunting statements are created as of the date hereof and may perhaps come to be outdated more than time. The Organization undertakes no obligation to update these statements for revisions or alterations immediately after the date of this release, except as expected by law.

Speak to:
Crescendo Communications, LLC
Tel: (212) 671-1020
E-mail: NXL@crescendo-ir.com

NEXALIN Technologies, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS

           December 31,   2022  2021 ASSETS        Existing Assets:        Cash and money equivalents $162,743  $661,778 Short-term investments  6,831,192   – Accounts receivable  4,875   16,303 Inventory  154,370   31,410 Prepaid costs and other present assets  272,282   43,168 Total Existing Assets  7,425,462   752,659 ROU Asset  6,171   – Equipment, net of accumulated depreciation of $two,181 and $29,862, respectively  503   1,039 Total Assets $7,432,136  $753,698          LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)        Existing Liabilities:        Accounts payable (Incorporates associated celebration of $260,000 and $399,320, respectively) $658,367  $843,794 Accrued expenses  539,822   611,795 Lease liability, present portion  50,797   40,845 Loan payable – shareholder  –   37,200 Loan payable – officer  200,000   200,000 Note payable  500,000   500,000 Deferred revenue  –   130,000 Total Existing Liabilities  1,948,986   2,363,634 Lengthy-term Liabilities:        Lease liability, net of present portion  4,463   49,089 PPP Loan payable  –   22,916 Total Liabilities  1,953,449   2,435,639          Commitments and Contingencies (Note eight)                 Stockholders’ Equity (Deficit):        Common stock, $.001 par worth one hundred,000,000 shares authorized 7,286,562 and four,879,923 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively  7,287   4,880 Accumulated other extensive income  36,313   – Additional paid in capital  77,824,427   69,004,703 Accumulated deficit  (72,389,340)  (70,691,524)Total Stockholders’ Equity (Deficit)  5,478,687   (1,681,941)Total Liabilities and Stockholders’ Equity (Deficit) $7,432,136  $753,698 

NEXALIN Technologies, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS AND Complete LOSS

           Year Ended
December 31,   2022  2021 Revenues, net (Incorporates associated celebration of $1,183,367 and $26,132 for the year ended December 31, 2022 and December 31, 2021, respectively) $1,321,357  $144,065 Cost of revenues  363,212   21,442 Gross profit  958,145   122,623          Operating expenses        Professional fees  605,329   697,063 Salaries and benefits  694,108   228,738 Selling, common and administrative  1,491,739   5,215,423 Total operating expenses  2,791,176   6,141,224          Loss from operations  (1,833,031)  (six,018,601)         Other revenue (expense), net:        Interest expense, net  (59,382)  (82,319)Other income  171,681   – Forgiveness of PPP Loan  22,916   22,916 Total other revenue (expense), net  135,215   (59,403)         Net loss  (1,697,816)  (six,078,004)Other extensive revenue:        Unrealized achieve from brief-term investments  36,313   – Comprehensive loss $(1,661,503) $(six,078,004)         Net loss per share attributable to frequent stockholders – Standard and Diluted $(.30) $(1.43)         Weighted Typical Shares Outstanding – Standard and Diluted  5,572,402   4,256,360