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Neuraxis, Inc. (NYSE American:NRXS), a $23 million market cap healthcare company with annual revenue of $2.93 million and impressive year-over-year growth of 27.5%, disclosed on Thursday that it has terminated its license and collaboration agreement with Masimo (NASDAQ:MASI) Corporation, originally established on April 9, 2020. According to InvestingPro analysis, the company faces profitability challenges but shows strong recent market performance. The agreement had granted Masimo exclusive, royalty-free rights to certain Neuraxis patents and trademarks related to the NSS-2 Bridge device, which is used for reducing symptoms of opioid withdrawal. Masimo marketed this product as the Masimo Bridge.
According to a press release statement, Neuraxis and Masimo entered into a termination agreement on July 1, 2025. Under the terms, Neuraxis will pay Masimo $200,000 in cash, split into two equal installments due on December 31, 2025, and June 30, 2026. InvestingPro data reveals the company is quickly burning through cash, making this payment schedule particularly significant for investors tracking its financial health. The payment covers products and assets, including the licensed trademark and associated patents. As a result of the termination, Neuraxis will no longer receive licensing payments or other revenue from the NSS-2 Bridge device.
Also on July 1, 2025, the company’s compensation committee adopted the Neuraxis, Inc. 2025 Employee Stock Purchase Plan. The plan, which became effective immediately, allows eligible employees to purchase shares of Neuraxis common stock at a 15% discount through payroll deductions. The plan authorizes the issuance of up to 100,000 shares, with an annual increase each January 1 from 2026 to 2035 by the lesser of 1% of outstanding capital stock or 100,000 shares. The board of directors may reduce or eliminate this annual increase before February 1 of any given year.
The employee stock purchase plan is intended to qualify under Section 423 of the Internal Revenue Code. Offering periods may last up to 27 months, with terms determined by the plan administrator. The plan requires stockholder approval within 12 months of July 1, 2025. With the stock currently trading at $2.60 and showing strong momentum over the past three months, InvestingPro analysis suggests the shares are slightly overvalued at current levels. Discover more insights and 6 additional ProTips for NRXS through InvestingPro’s comprehensive research platform.
All information is based on a press release statement and the company’s filing with the Securities and Exchange Commission.
In other recent news, NeurAxis Inc. reported a significant 39% increase in revenue for the first quarter of 2025, reaching $896,000. Despite this growth, the company experienced a 25% rise in operating losses, totaling $2.3 million. Additionally, NeurAxis settled a longstanding legal dispute with a $750,000 agreement, to be paid in 12 equal installments starting January 2026. The company also disclosed financial activities, including receiving approximately $1 million from warrant exercises and issuing 430,580 shares of common stock. Craig-Hallum initiated coverage on NeurAxis with a buy rating and a $7.00 price target, citing the potential of the company’s IB-Stim device for pediatric patients. The analysts noted the strong clinical data supporting the device and its inclusion in clinical guidelines. NeurAxis is also expanding its FDA label for IV Stem Technology to include a broader age range, which could enhance its market presence. These developments reflect NeurAxis’s strategic efforts to address unmet medical needs and drive growth in the pediatric market.
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