Revenue: As of FY2026 Q1, the actual value is USD 14.95 K, missing the estimate of USD 15 K.EPS: As of FY2026 Q1, the actual value is USD -0.11, missing the estimate of USD -0.1.EBIT: As of FY2026 Q1, the actual value is USD -2.12 M.<h3>Segment Revenue</h3>Nexalin Technology, Inc. operates as a single reportable segment. Total revenues, net, for the three months ended March 31, 2026, decreased to $14,950 from $41,015 in the same period of 2025, representing a -64% year-over-year change .<ul><li>US Revenue: $14,950 for the three months ended March 31, 2026, down from $20,443 for the same period in 2025 .</li><li>International Revenue: $0 for the three months ended March 31, 2026, down from $20,572 for the same period in 2025 .The decrease in revenue was primarily attributed to lower equipment sales to an international customer .</li></ul><h3>Operational Metrics</h3><ul><li>Cost of Revenues: Decreased to $1,817 for the three months ended March 31, 2026, from $13,558 in the prior year, an -87% change .</li><li>Gross Profit: Decreased to $13,133 for the three months ended March 31, 2026, from $27,457 in the prior year, a -52% change .</li><li>Gross Margin: Increased to 88% for the three months ended March 31, 2026, compared to 66% in the prior year, primarily due to a change in revenue mix with higher-margin licensing fees .</li><li>Total Operating Expenses: Increased by 5% to $2,133,035 for the three months ended March 31, 2026, from $2,038,682 in the prior year .<ul><li>Professional Fees: Increased by 35% to $495,296 from $367,816 .</li><li>Salaries and Benefits: Increased by 49% to $498,560 from $335,358 .</li><li>Selling, General and Administrative (SG&amp;A): Decreased by -15% to $792,797 from $929,220 .</li><li>Research and Development (R&amp;D): Decreased by -15% to $346,382 from $406,288 .</li></ul></li><li>Loss from Operations: Increased by 5% to -$2,119,902 for the three months ended March 31, 2026, from -$2,011,225 in the prior year .</li><li>Net Loss: Increased by 5% to -$2,096,837 for the three months ended March 31, 2026, from -$1,988,337 in the prior year .</li></ul><h3>Cash Flow</h3><ul><li>Net Cash Used in Operating Activities: -$1,712,988 for the three months ended March 31, 2026, compared to -$1,426,214 for the same period in 2025 .</li><li>Net Cash Provided by Investing Activities: $1,509,679 for the three months ended March 31, 2026, compared to $1,473,758 for the same period in 2025 .</li><li>Net Cash Provided by Financing Activities: $756,421 for the three months ended March 31, 2026, due to sales under the At-the-Market (ATM) program, with no such financing in the prior year .</li></ul><h3>Unique Metrics</h3><ul><li>Research and Development Expenses by Project (Q1 2026 vs Q1 2025):<ul><li>Clinical trials: $198,445 vs $61,352 .</li><li>EDC Build: $55,800 vs $18,050 .</li><li>HALO project: $88,767 vs $298,037 .</li><li>SYNC project: $0 vs $23,713 .</li><li>Other research and development: $3,370 vs $5,136 .</li></ul></li><li>ATM Program: For the three months ended March 31, 2026, Nexalin Technology, Inc. sold 1,395,300 shares of common stock for net proceeds of approximately $756,000 . As of March 31, 2026, a total of 2,086,707 shares have been sold for gross proceeds of approximately $1,423,000 under the program .</li></ul><h3>Future Outlook and Strategy</h3>Nexalin Technology, Inc. expects to continue incurring operating losses and negative cash flow in 2026 and beyond as it executes development plans and potential strategic initiatives . The company’s priorities include obtaining FDA clearance for its Gen-2 and Gen-3 devices and executing U.S. clinical trials . Management believes additional capital may be required to fund planned clinical and operating activities, including a pivotal insomnia study, beyond current cash resources .

Nexalin Tech | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 14.95 K