MeritValue

Nexalin Technology, Inc.

NXLdata completeness 75%5 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'totalDebt'; no data for concept 'incomeTaxExpense'

The thesis, from the filings

Nexalin Technology, Inc. earns about -181% on invested capital, but has diluted owners by 236% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$144,0651$1.32M2$110,7483$168,7214$301,6474
Net income−$6.08M5−$1.7M6−$4.65M7−$7.61M8−$8.22M8
Operating cash flow−$1.08M9−$2.22M10−$3.84M11−$3.94M12−$4.96M12
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$661,77813$162,74314$580,23015$574,48516$654,78316
Diluted shares4.9M5.6M7.4M9.2M16.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$2.29
your share of equity
Profit it earned you last year
−$5.02
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $2.29 of net worth that earned you −$5.02 last year.

iii. Is this a good business?
Moat signal · return on invested capital
-181% avg · 5y
FY21 —FY22 —FY23 -139%FY24 -194%FY25 -210%

It earned an average -181% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+236% shares · 5y

Share count is up 236% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001829126-23-002259 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001829126-24-001935 (Revenues)
  3. 10-K/A · period ending 2023-12-31 · accession 0001829126-25-007610 (Revenues)
  4. 10-K · period ending 2024-12-31 · accession 0001829126-26-002673 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0001829126-23-002259 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001829126-24-001935 (NetIncomeLoss)
  7. 10-K/A · period ending 2023-12-31 · accession 0001829126-25-007610 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001829126-26-002673 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001829126-23-002259 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001829126-24-001935 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K/A · period ending 2023-12-31 · accession 0001829126-25-007610 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001829126-26-002673 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001829126-23-002259 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0001829126-24-001935 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K/A · period ending 2023-12-31 · accession 0001829126-25-007610 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-12-31 · accession 0001829126-26-002673 (CashAndCashEquivalentsAtCarryingValue)