Nexalin Technology Inc. Common Stock (NXL)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable economics and honest earning power. Nexalin is an eight-employee medical device company selling neurostimulation devices for mental health. The story may be interesting, but the numbers are not. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was just $12,161 and net loss was $2.2 million, or diluted EPS of -$0.11. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $14,950 and net loss was $2.1 million. Fiscal Q2 2026 revenue fell 82.77% from fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $70,588. Fiscal 2025, the year ended 2025-12-31, had revenue of $301,647 and a net loss of $8.2 million. Fiscal 2024, the year ended 2024-12-31, had revenue of $168,721 and a net loss of $7.6 million. There is no profit history and no visible moat. Free cash flow is negative $6.3 million, and FairStock calculates an FCF yield of -10.8%. At the 2026-10-13 close of $2.64, FairStock shows P/B 1.28, ROE -240.25%, ROCE -119.22%, Piotroski 2/9, and Altman Z-score -24.10, which signals financial distress. The P/E of -0.19 simply reflects losses, so it is not a valuation anchor. Beta is 4.11, warning of extreme price volatility. A Graham investor demands a margin of safety; here I see a speculative option on future device adoption, not a proven business. The FairStock score is 47/100, and the Lynch category is none because losses occurred in each of the last four years. That does not meet my standards for investment.

In plain English: Nexalin makes medical devices that use electrical stimulation to treat mental health problems like anxiety, insomnia, and depression. The business looks weak right now: sales are very small, it loses money, and it burns cash. At the 2026-10-13 close of $2.64, the price looks speculative rather than clearly cheap because there are no profits to support it and the latest quarterly revenue was tiny.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer