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Neuraxis, Inc. (NYSE American:NRXS), a Delaware-based company specializing in electromedical and electrotherapeutic apparatus with a market capitalization of $16.4 million and impressive gross profit margins of 85%, has entered into a settlement agreement resolving multiple lawsuits initiated by Ritu Bhambhani, M.D., Sudhir Rao, M.D., and other associated parties. InvestingPro analysis shows the company operates with moderate debt levels while maintaining a current ratio of 1.21. The settlement, dated May 15, 2025, requires Neuraxis to pay a total of $750,000 in 12 equal monthly installments starting in January 2026. According to InvestingPro data, this settlement comes at a challenging time as the company is quickly burning through cash, with negative EBITDA of $7 million in the last twelve months. For deeper insights into Neuraxis’s financial health and 10+ additional ProTips, consider exploring InvestingPro’s comprehensive analysis.
The legal dispute dates back to February 2019, with the final settlement reached this week. Under the terms of the agreement, the plaintiffs, referred to as the Releasing Parties, have agreed to dismiss all claims and liabilities against Neuraxis and other Released Parties, including Acclivity Medical (TASE:BLWV) LLC and several individuals.
In addition to the settlement, Neuraxis disclosed financial activities from May 20 to May 21, 2025, which included receiving approximately $1 million from warrant exercises and issuing 430,580 shares of common stock. Furthermore, three holders of the company’s Series B Preferred Stock converted their holdings into 342,016 shares of common stock.
All newly issued shares, both from the warrant exercises and the Series B conversions, were distributed without restrictive legends, as permitted by the company’s effective registration statement.
The details of the settlement agreement have been filed with the SEC and are included as exhibit 10.1 in the company’s latest 8-K filing. This agreement has created a direct financial obligation for Neuraxis, which is reflected in the company’s financial statements.
The information in this article is based on a press release statement from Neuraxis, Inc. and the company’s SEC filings. Recent market data shows the stock has demonstrated strong momentum with a 41% return over the past week, though InvestingPro’s Fair Value analysis suggests the stock is currently trading near its fair value. Investors seeking detailed analysis can access the comprehensive Pro Research Report, available for Neuraxis and 1,400+ other US stocks through InvestingPro.
In other recent news, Neuraxis Inc. reported a 39% increase in revenue for the first quarter of 2025, reaching $896,000, supported by a significant rise in unit sales. Despite this revenue growth, the company faced a 25% rise in operating losses, totaling $2.3 million. Neuraxis remains optimistic about its strategic initiatives, including the expansion of FDA labels and insurance coverage, now reaching 51 million lives. The company also highlighted the FDA label expansion for its IV Stem Technology to include a broader age range. Neuraxis is focused on achieving cash flow breakeven and anticipates accelerated revenue growth with the upcoming implementation of a Category One CPT Code in early 2026. The company is currently debt-free and holds $2 million in cash on hand. Additionally, Neuraxis is preparing for the publication of guidelines expected by the end of May, which could further support market expansion. The company continues to face challenges, including increased operating losses and declining gross margins, but remains committed to its growth objectives.
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