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NRXS NYSE AM· Neuraxis Inc
Earnings report Q3 2023

Neuraxis, Inc. Reports Decrease in Net Sales for Q3 2023

Segments of revenue

Neuraxis, Inc. reported a decrease in net sales for the three months ended September 30, 2023. Net sales decreased by $141 thousand, or 23%, from $618 thousand in the same period last year to $477 thousand. For the nine months ended September 30, 2023, net sales decreased by $143 thousand, or 6.9%, from $2,072 thousand to $1,929 thousand. The decrease in net sales was primarily attributed to the ordering patterns of the company's major customers. However, Neuraxis, Inc. expects net sales to increase as they ramp up their marketing efforts and as their IB-Stim device receives FDA clearance for other indications.

Strengths

Despite the decrease in net sales, Neuraxis, Inc. has identified strengths in their financial performance. The company believes that their net sales will improve as they increase their marketing efforts and expand the indications for their IB-Stim device. This indicates a potential for future revenue growth. Additionally, the company's gross profit for the three months ended September 30, 2023, was $410 thousand, and for the nine months ended September 30, 2023, it was $1.7 million. Although lower than the previous year, these figures demonstrate the company's ability to generate profit from its operations.

Challenges

Neuraxis, Inc. faced challenges in their latest quarter. The company reported an operating loss of $3.02 million for the three months ended September 30, 2023, compared to an operating loss of $1.20 million in the same period last year. This increase in operating loss was primarily due to higher general and administrative expenses, which amounted to $3.32 million for the quarter. Additionally, the company's net loss increased by approximately $2.8 million, or 135.8%, for the quarter compared to the previous year. These financial challenges indicate the need for cost management and efficiency improvements.

Noteworthy

Neuraxis, Inc. mentioned that their IB-Stim device is expected to receive FDA clearance for additional indications, such as functional nausea, post-concussion syndrome, and cyclic vomiting syndrome in children. This expansion of indications could potentially drive future revenue growth for the company.

Summary

Neuraxis, Inc. reported a decrease in net sales for the third quarter of 2023, primarily attributed to the ordering patterns of major customers. However, the company remains optimistic about future revenue growth as they increase their marketing efforts and expand the indications for their IB-Stim device. Despite facing challenges such as higher operating and net losses, Neuraxis, Inc. has identified strengths in their financial performance, including the ability to generate gross profit. The potential FDA clearance for additional indications for their IB-Stim device presents an opportunity for future revenue growth. Overall, Neuraxis, Inc. needs to address cost management and improve efficiency to overcome their financial challenges and drive profitability.

Source documents

Form 10-Q  filed on Nov 20, 2023
3 pages scanned

Reference data

Company financials Q3 revenue 0
Analyst estimates Q3 EPS missed by 0.00%
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