# EDGAR Filing Document

**Accession Number:** 0001527352
**File Stem:** 0001829126-26-004854
**Filing Date:** 2026-5
**Character Count:** 134446
**Document Hash:** 63ba4a4b8fa734ea2659d40faa8f8fd0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001829126-26-004854.hdr.sgml**: 20260508

**ACCESSION NUMBER**: 0001829126-26-004854

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 52

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260508

**DATE AS OF CHANGE**: 20260508

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Nexalin Technology, Inc.
- **CENTRAL INDEX KEY:** 0001527352
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 275566468
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41507
- **FILM NUMBER:** 26957660

**BUSINESS ADDRESS:**
- **STREET 1:** 1776 YORKTOWN
- **STREET 2:** SUITE 550
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77056
- **BUSINESS PHONE:** (832) 260-0222

**MAIL ADDRESS:**
- **STREET 1:** 1776 YORKTOWN
- **STREET 2:** SUITE 550
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77056

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON D.C. 20549**

**FORM 10-Q**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the Quarterly Period Ended March 31, 2026**

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from _______ to _______.**

**Commission file number: <u>001-41507</u>**

**<u>NEXALIN TECHNOLOGY, INC.</u>**

**(Exact name of Registrant as specified in its charter)**

---

| | |
|:---|:---|
| **Delaware** | **27-5566468** |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **1776 Yorktown Street, Suite 550**<br> **Houston, TX** | **77056** |
| (Address of principal executive offices) | (Zip Code) |

---

**Registrant's telephone number, including area code: (832) 260-0222**

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common stock, par value $0.001 per share | NXL | The Nasdaq Capital Market |

---

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting company, and emerging growth company in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☐ Accelerated Filer ☐ <br> Non-Accelerated Filer ☒ Smaller Reporting Company ☒ <br> Emerging Growth Company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 7, 2026, there were 20,581,646 shares of the Registrant's common stock outstanding.

**<u>NEXALIN TECHNOLOGY, INC. AND SUBSIDIARIES</u>**

**FORM 10-Q**

**For the Quarter Ended March 31, 2026**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| [**PART I. FINANCIAL INFORMATION**](#a_001) | [**PART I. FINANCIAL INFORMATION**](#a_001) |  |
| [ITEM 1.](#a_002) | [Unaudited Condensed Consolidated Financial Statements](#a_002) | 1 |
|  | [Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025](#a_003) | 1 |
|  | [Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2026 and 2025](#a_004) | 2 |
|  | [Condensed Consolidated Statements of Changes in Stockholders' Equity for the three months ended March 31, 2026 and 2025](#a_005) | 3 |
|  | [Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025](#a_006) | 4 |
|  | [Notes to Unaudited Condensed Consolidated Financial Statements](#a_007) | 5 |
| [ITEM 2.](#a_008) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_008) | 16 |
| [ITEM 3.](#a_009) | [Quantitative and Qualitative Disclosures about Market Risk](#a_009) | 23 |
| [ITEM 4.](#a_010) | [Controls and Procedures](#a_010) | 24 |
| [**PART II. OTHER INFORMATION**](#a_011) | [**PART II. OTHER INFORMATION**](#a_011) |  |
| [ITEM 1.](#a_012) | [Legal Proceedings](#a_012) | 26 |
| [ITEM 1A.](#a_013) | [Risk Factors](#a_013) | 26 |
| [ITEM 2.](#a_014) | [Unregistered Sales of Equity Securities and Use of Proceeds](#a_014) | 26 |
| [ITEM 3.](#a_015) | [Defaults Upon Senior Securities](#a_015) | 26 |
| [ITEM 4.](#a_016) | [Mine Safety Disclosures](#a_016) | 26 |
| [ITEM 5.](#a_017) | [Other Information](#a_017) | 26 |
| [ITEM 6.](#a_018) | [Exhibits](#a_018) | 27 |
| [**SIGNATURES**](#a_019) | [**SIGNATURES**](#a_019) | 28 |

---

i

**PART I — FINANCIAL INFORMATION**

**Item 1. Unaudited Condensed Consolidated Financial Statements**

**NEXALIN TECHNOLOGY, INC. AND SUBSIDIARIES** 

**CONDENSED CONSOLIDATED BALANCE SHEETS**

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2026** | **December 31,<br> 2025** |
| **ASSETS** |  |  |
| **Current Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $1207895 | $654783 |
| &nbsp;&nbsp;&nbsp;Short-term investments | 1500590 | 3068429 |
| &nbsp;&nbsp;&nbsp;Accounts receivable (includes related party of $0 and $37,812, respectively) | 43004 | 81571 |
| &nbsp;&nbsp;&nbsp;Inventory | 179489 | 131473 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 359176 | 363014 |
| **Total Current Assets** | 3290154 | 4299270 |
| &nbsp;&nbsp;&nbsp;Equipment, net of accumulated depreciation of $6,790 and $0, respectively | 45169 |  |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 359310 | 336049 |
| **Total Assets** | $3694633 | $4635319 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **Current Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $168099 | $244579 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 640265 | 642754 |
| **Total Current Liabilities** | 808364 | 887333 |
| **Total Liabilities** | 808364 | 887333 |
| **Commitments and Contingencies (Note 7)** |  |  |
| **Stockholders' Equity:** |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.001 par value; 100,000,000 shares authorized; 20,581,646 and 19,186,346 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively | 20581 | 19186 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 494 | 406 |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 97829443 | 96595806 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (94964249) | (92867412) |
| **Total Stockholders' Equity** | 2886269 | 3747986 |
| **Total Liabilities and Stockholders' Equity** | $3694633 | $4635319 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**NEXALIN TECHNOLOGY, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br> March 31,** | **Three Months Ended<br> March 31,** |
|  | **2026** | **2025** |
| Revenues, net (includes related party of $0 and $3,583 for the three months ended March 31, 2026 and March 31, 2025, respectively) | $14950 | $41015 |
| Cost of revenues | 1817 | 13558 |
| Gross profit | 13133 | 27457 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Professional fees | 495296 | 367816 |
| &nbsp;&nbsp;&nbsp;Salaries and benefits | 498560 | 335358 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 792797 | 929220 |
| &nbsp;&nbsp;&nbsp;Research and development | 346382 | 406288 |
| Total operating expenses | 2133035 | 2038682 |
| Loss from operations | (2119902) | (2011225) |
| Other income, net: |  |  |
| &nbsp;&nbsp;&nbsp;Interest income, net | 34 | 1103 |
| &nbsp;&nbsp;&nbsp;Gain on sale of short-term investments | 21025 | 20119 |
| &nbsp;&nbsp;&nbsp;Other income | 2006 | 2714 |
| Total other income, net | 23065 | 23936 |
| Loss before provision for income taxes | (2096837) | (1987289) |
| Provision for income taxes |  |  |
| Loss before net loss of affiliate | (2096837) | (1987289) |
| Net loss of affiliate | - | (1048) |
| Net loss | (2096837) | (1988337) |
| Other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized gain from short-term investments | 88 | 830 |
| Comprehensive loss | $(2096749) | $(1987507) |
| Net loss per share attributable to common stockholders - Basic and Diluted | $(0.11) | $(0.15) |
| Weighted Average Shares Outstanding - Basic and Diluted | 19820910 | 13307319 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**NEXALIN TECHNOLOGY, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY**

**(Unaudited)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Accumulated Other Comprehensive**<br> **Income (Loss)** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Total<br> Stockholders'**<br>**Equity** |
| **Balance as of January 1, 2025** | 13303523 | $13304 | $(513) | $88308478 | $(86645231) | $3676038 |
| Other comprehensive gain |  |  | 830 |  |  | 830 |
| Stock compensation | 24406 | 24 |  | 636820 |  | 636844 |
| Net loss | - | - | - | - | (1988337) | (1988337) |
| **Balance as of March 31, 2025** | 13327929 | $13328 | $317 | $88945298 | $(88633568) | $2325375 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Accumulated Other Comprehensive**<br> **Income** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Total<br> Stockholders'**<br>**Equity** |
| **Balance as of January 1, 2026** | 19186346 | $19186 | $406 | $96595806 | $(92867412) | $3747986 |
| Other comprehensive gain |  |  | 88 |  |  | 88 |
| Stock compensation |  |  |  | 478611 |  | 478611 |
| Shares issued as part of ATM program | 1395300 | 1395 |  | 755026 |  | 756421 |
| Net loss | - | - | - | - | (2096837) | (2096837) |
| **Balance as of March 31, 2026** | 20581646 | $20581 | $494 | $97829443 | $(94964249) | $2886269 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**NEXALIN TECHNOLOGY, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br> March 31,** | **Three Months Ended<br> March 31,** |
|  | **2026** | **2025** |
| Cash flows from operating activities: |  |  |
| Net loss | $(2096837) | $(1988337) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Stock compensation | 478611 | 636844 |
| &nbsp;&nbsp;&nbsp;Depreciation | 4107 |  |
| &nbsp;&nbsp;&nbsp;Amortization | 6736 | 4786 |
| &nbsp;&nbsp;&nbsp;Gain on sale of short-term investments | (21025) | (20119) |
| &nbsp;&nbsp;&nbsp;Return on investment in Joint Venture |  | 864 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 755 | (1040) |
| &nbsp;&nbsp;&nbsp;Accounts receivable - related party | 37812 | (396) |
| &nbsp;&nbsp;&nbsp;Prepaid assets | 3838 | (86183) |
| &nbsp;&nbsp;&nbsp;Inventory | (48016) | (675) |
| &nbsp;&nbsp;&nbsp;Accounts payable | (76480) | 25445 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | (2489) | 2597 |
| Net cash used in operating activities | (1712988) | (1426214) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Sale of short-term investments | 5589606 | 6496000 |
| &nbsp;&nbsp;&nbsp;Purchase of short-term investments | (4000654) | (4998663) |
| &nbsp;&nbsp;&nbsp;Purchase of equipment | (49276) |  |
| &nbsp;&nbsp;&nbsp;Purchase of patents | (14065) | (20540) |
| &nbsp;&nbsp;&nbsp;Purchase of trademarks | (15932) | (3039) |
| Net cash provided by investing activities | 1509679 | 1473758 |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from ATM, net of fees | 756421 | - |
| Net cash provided by financing activities | 756421 | - |
| Net increase in cash and cash equivalents | 553112 | 47544 |
| Cash and cash equivalents - beginning of period | 654783 | 574485 |
| Cash and cash equivalents - end of period | $1207895 | $622029 |
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized gain on short-term investments | $88 | $830 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**NEXALIN TECHNOLOGY, INC. AND SUBSIDIARIES**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1 — NATURE OF THE ORGANIZATION AND BUSINESS**

*Corporate History*

Nexalin Technology, Inc. (the "Company" or "Nexalin") was formed on November 17, 2021 as a Delaware corporation.

We were originally formed as a Nevada corporation on October 19, 2010 as Nexalin Technology, Inc. ("Nexalin Nevada"). On December 1, 2021, we completed a corporate reorganization pursuant to which Nexalin Nevada merged with and into a newly incorporated Delaware company of the same name, Nexalin and, as a result, Nexalin succeeded Nexalin Nevada and each of the shareholders of Nexalin Nevada exchanged each of their shares in Nexalin Nevada for one twentieth (1/20th) of a common share of the newly formed Delaware corporation. Nexalin had nominal assets and liabilities and did not conduct any operations prior to the reorganization other than its incorporation. As a result, Nexalin Nevada became a wholly owned subsidiary of Nexalin.

The Company's principal offices are located at 1776 Yorktown, Suite 550, Houston, Texas 77056.

Our shares and warrants began trading on September 16, 2022, and continues to be traded on the Nasdaq Capital Market tier of the Nasdaq Stock Market ("Nasdaq"), under the symbols "NXL" and "NXLIW", respectively. In September 2025, the warrants expired, and were delisted. The common stock of the Company will continue to trade on the Nasdaq Capital Market under the symbol NXL.

Throughout this Report, the terms "Nexalin," "our," "we," "us," and the "Company" refer to Nexalin Technology, Inc.

*Business Overview*

We are a medical device company engaged in the designs and development of innovative neurostimulation products to uniquely and effectively help combat the ongoing global mental health epidemic. We developed an easy-to-administer medical device – referred to as "Generation 1" or "Gen-1" – that utilizes bioelectronic medical technology to treat anxiety, insomnia and depression without the need for drugs or psychotherapy. While the Gen-1 device had been cleared by the FDA to treat depression, anxiety, and insomnia, because of the FDA's December 2019 reclassification of cranial electrotherapy stimulation (CES) devices, the Gen-1 device was reclassified as a Class II device for the treatment of anxiety and insomnia, and as a Class III device for the treatment of depression.

The waveform that comprises the basis of our "Generation 2" or "Gen-2", "Gen-2 SYNC" or "SYNC" and new "Generation 3" or "Gen-3", "Gen-3 HALO" or "HALO" headset devices have been in Q-submission process for review by the FDA. In October 2025, the FDA formally accepted our Q-Submission ("Q-Sub") related to the Company's Gen-2 Console ("SYNC") system for the treatment of Alzheimer's disease and dementia. The Company met with the FDA in November of 2025 and continues to develop a strategy and protocol. The acceptance of the Company's request for interaction with the FDA with respect to its Gen-2 SYNC system represents a significant step toward Nexalin's goal of achieving FDA authorization to begin U.S. clinical studies targeting Alzheimer's and dementia — two of the most urgent unmet needs in healthcare. The Q-Submission process enables structured dialogue with and feedback from the FDA to discuss proposed clinical trial design, study endpoints, and regulatory pathway for evaluating the Gen-2 SYNC system as a potential non-invasive therapy for these debilitating neurodegenerative conditions, as well as for mild to moderate cognitive impairment (MCI) associated with Alzheimer's disease.

Determinations of the safety and efficacy of our devices in the United States are solely within the authority of the FDA. We plan to conduct clinical trials for the Gen-3 HALO device in the United States and we continue to consult with the FDA as part of the pre-submission process. If and when we obtain FDA clearance for the Gen-3 HALO device, we intend to extend the development and commercialization of our devices for sale in the United States and other territories, given the potential unmet demand for the treatment of mental health conditions.

All of our products are designed to be easy to administer, physically non-invasive and undetectable to the human body. They have been developed to provide relief to those afflicted with mental health issues, including anxiety, insomnia, depression and mild traumatic brain injury (mTBI). We utilize bioelectronic medical technology to treat these mental health issues. The determination of safety and efficacy of medical devices in the United States are subject to clearance by the FDA.

*Continued Nasdaq Listing*

Our shares of our common stock are listed on the Capital Market tier of the Nasdaq Stock Market, or Nasdaq, under the symbol "NXL." Nasdaq has rules for continued listing, including, without limitation, minimum market capitalization, minimum stockholders' equity and other requirements. In order to maintain that listing, we must satisfy minimum financial and other continued listing requirements and standards, including the Minimum Bid Price Rule (as discussed below) and those regarding director independence and independent committee requirements, minimum stockholders' equity, and certain corporate governance requirements. There can be no assurances that we will be able to comply with the applicable listing standards.

*Minimum Bid Price Requirement*

We are required to maintain a minimum bid price of $1.00 per share. On January 21, 2026, the Company received a deficiency letter (the "Notice") from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that, based upon the closing bid price of the Company's common stock, par value $0.001 per share, for the last 30 consecutive business days, the Company was not currently in compliance with the requirement to maintain a minimum bid price of $1.00 per share for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Requirement").

The Notice has no immediate effect on the continued listing status of our common stock on The Nasdaq Capital Market, and, therefore, the Company's listing remains fully effective. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company is provided a compliance period of 180 calendar days from the date of the Notice, or until July 20, 2026, to regain compliance with the Minimum Bid Requirement. To regain compliance, the closing bid price of our common stock must meet or exceed $1.00 per share for a minimum of ten consecutive business days prior to July 20, 2026. If the Company is not in compliance with the Minimum Bid Requirement by July 20, 2026, the Company may be afforded a second 180 calendar day compliance period. To qualify for this additional compliance period, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the Minimum Bid Price requirement. The Company continues to evaluate all options to regain compliance with the Minimum Bid Requirement.

**NOTE 2 — LIQUIDITY AND GOING CONCERN**

The accompanying unaudited condensed consolidated financial statements have been prepared on the basis that the Company will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business. As of March 31, 2026, the Company had a significant accumulated deficit of approximately $94,964,000. For the three months ended March 31, 2026, the Company had a loss from operations of approximately $2,120,000 and negative cash flows from operations of approximately $1,713,000. While the Company had a working capital surplus as of March 31, 2026, of approximately $2,482,000, the Company's operating activities consume most of its cash resources.

The Company expects to continue to incur operating losses and negative cash flow as it executes its development plans, as well as undertaking other potential strategic and business development initiatives in 2026 and beyond. The Company previously funded these losses primarily through the sale of equity and proceeds from our ATM program. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern for at least twelve months after the date of this Report.

The Company's ability to continue as a going concern will be dependent upon our ability to execute on our business plan, including the ability to generate revenue from overseas opportunities and obtain U.S. approval for the sale of our devices in the United States, and, if necessary, our ability to raise additional capital. These plans require the Company to place reliance on several factors, including favorable market conditions, and to access additional capital in the future. These plans were therefore determined not to be sufficient to overcome the presumption of substantial doubt about the Company's ability to continue as a going concern within twelve months after the date that the unaudited condensed consolidated financial statements are issued. Additionally, management does not believe we have sufficient cash for the next twelve months from the issuance of the financial statements. The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**NOTE 3 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*Basis of Presentation*

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles in the United States ("GAAP"), for interim financial information and with the instruction for Quarterly Reports on Form 10-Q and Article 8 of Regulations S-X. Accordingly, the unaudited condensed consolidated financial statements do not include all the information and footnotes required by GAAP for complete annual financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial information includes all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company's financial position and the operating results and cash flows. Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for any other subsequent interim periods. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2025 filed on March 25, 2026. The accompanying consolidated balance sheet as of December 31, 2025 has been derived from the audited financial statements included in our previously filed Annual Report on Form 10-K.

*Principles of Consolidation*

The unaudited condensed consolidated financial statements include the accounts of Nexalin and its wholly owned subsidiaries (both which have no activity), Neuro-Health and Beijing Nexalin Neurotech Co., Ltd. Intercompany accounts and transactions have been eliminated in consolidation.

*Use of Estimates*

The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity-based transactions, revenue and expenses and disclosure of contingent liabilities at the date of the unaudited condensed consolidated financial statements. The Company bases its estimates and assumptions on historical experience, known or expected trends and various other assumptions that it believes to be reasonable. As future events and their effects cannot be determined with precision, actual results could differ from these estimates, which may cause the Company's future results to be affected.

*Patents and Trademarks*

Patents and trademarks are amortized over their useful lives and are reviewed for impairment when warranted by economic conditions. Amortization expense was approximately $6,700 and $4,800 for the three months ended March 31, 2026 and 2025, respectively.

The following table summarizes the gross carrying amount, amortization and the net carrying value as of March 31, 2026 and December 31, 2025.

---

| | | | |
|:---|:---|:---|:---|
|  | **Gross<br> Carrying<br>Amount** | **Accumulated<br>Amortization** | **Net<br> Carrying**<br> **Value** |
| **<u>March 31, 2026</u>** |  |  |  |
| Patents | $289789 | $(30821) | $258968 |
| Trademarks | 116916 | (16574) | 100342 |
| Total March 31, 2026 | $406705 | $(47395) | $359310 |
| **<u>December 31, 2025</u>** |  |  |  |
| Patents | $275724 | $(27008) | $248716 |
| Trademarks | 100984 | (13651) | 87333 |
| Total December 31, 2025 | $376708 | $(40659) | $336049 |

---

*Fair Value Measurements*

As defined in ASC 820, *Fair Value Measurements and Disclosures*, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). In determining fair value, the Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs, and considers assumptions that market participants would use in pricing the asset or liability.

ASC 820 establishes a fair value hierarchy that prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). This hierarchy applies to assets and liabilities measured at fair value on a recurring or nonrecurring basis.

● Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date.

● Level 2: Inputs are observable, either directly or indirectly, other than quoted prices included in Level 1. These inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable market data.

● Level 3: Inputs are unobservable and reflect the Company's own assumptions about the assumptions market participants would use in pricing the asset or liability.

The Company's financial assets measured at fair value on a recurring basis consist of U.S. Treasury bills and mutual funds, which are classified within Level 1 of the fair value hierarchy based on quoted prices in active markets. The Company did not have any financial assets or liabilities classified within Level 2 or Level 3 of the fair value hierarchy as of March 31, 2026 and December 31, 2025.

*Fair Value of Financial Instruments*

The carrying amounts of cash, short-term investments, accounts receivable, inventory, prepaid expenses, accounts payable and accrued expenses, and other current liabilities approximate their fair values due to the short-term nature of these instruments.

The following table summarizes the amortized cost, unrealized gain (loss) and the fair value as of March 31, 2026 and December 31, 2025.

---

| | | | |
|:---|:---|:---|:---|
|  | **Amortized<br> Cost** | **Unrealized<br> Loss** | **Fair<br> Value** |
| **<u>March 31, 2026</u>** |  |  |  |
| Short-term investments | $1500096 | $494 | $1500590 |
| **<u>December 31, 2025</u>** |  |  |  |
| Short-term investments | $3068023 | $406 | $3068429 |

---

The following table provides the carrying value and fair value of the Company's financial assets measured at fair value as of March 31, 2026 and December 31, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Carrying Value** | **Level 1** | **Level 2** | **Level 3** |
| **<u>March 31, 2026</u>** |  |  |  |  |
| U.S. Treasury Bill | $1500590 | $1500590 | $- | $- |
| Mutual Funds | - | - | - | - |
| Total March 31, 2026 | $1500590 | $1500590 | $- | $- |
| **<u>December 31, 2025</u>** |  |  |  |  |
| U.S. Treasury Bill | $2700824 | $2700824 | $- | $- |
| Mutual Funds | 367605 | 367605 | - | - |
| Total December 31, 2025 | $3068429 | $3068429 | $- | $- |

---

As defined in ASC 820, *Fair Value Measurements and Disclosures*, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). This framework applies to both initial and subsequent measurements.

*Net Loss per Common Share*

Basic loss per common share excludes dilution and is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, or otherwise resulted in the issuance of common stock that would share in the earnings of the Company.

Potentially dilutive securities are excluded from the calculation of diluted net loss per share when their effect would be anti-dilutive. Accordingly, basic and diluted loss per share are the same for all periods presented. For all periods presented, certain potentially dilutive securities were excluded from the calculation of diluted loss per share because their effect would have been anti-dilutive.

The following table summarizes the securities that would be excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive due to the Company's net loss position even though the exercise price could be less than the most recent fair value of the common shares:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br> March 31,** | **Three Months Ended<br> March 31,** |
|  | **2026** | **2025** |
| Warrants |  | 2662250 |
| Options | 4113617 | 3071635 |
| Total | 4113617 | 5733885 |

---

*Stock**-**Based Compensation*

The Company applies the provisions of ASC 718, *Compensation — Stock Compensation* (the "guidance"), which requires the measurement and recognition of compensation expense for all stock-based awards granted to employees, including stock options, in the unaudited condensed consolidated statements of operations and comprehensive loss.

For stock options issued to employees and members of the Board of Directors (the "Board"), the Company estimates the grant-date fair value of each option using the Black-Scholes option pricing model. This model requires management to make assumptions regarding the expected term of the option, the expected volatility of the Company's common stock over the expected life of the option, risk-free interest rates, and expected dividend yields. For awards subject to service-based vesting conditions, including those with graded vesting schedules, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period, which generally corresponds to the vesting term. Forfeitures are recognized as they occur, rather than being estimated at the grant date.

Pursuant to ASU 2018-07, *Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting*, the Company accounts for stock options and restricted shares issued to nonemployees in accordance with the guidance. Valuation methods and assumptions for nonemployee awards are consistent with those used for employee awards.

*Future Adoption of New Accounting Pronouncement*

In September 2025, the FASB issued ASU 2025-06, *Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software*. The guidance removes references to software development project stages so that capitalization is based on management authorization, commitment to funding, and probable completion for the intended use. The standard is effective for annual periods beginning after December 15, 2027, including interim periods, with prospective, modified, or retrospective transition methods allowed and early adoption permitted. The Company does not expect the adoption to have a material impact on its unaudited condensed consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)*, which requires additional disaggregated disclosures of certain income statement expense categories. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the effect of adopting this guidance.

All other newly issued but not yet effective accounting pronouncements are considered either not applicable or immaterial to the Company.

**NOTE 4 — ACCRUED EXPENSES**

Accrued expenses consist of the following amounts:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2026** | **December 31,<br> 2025** |
| Accrued – other | $116341 | $87581 |
| Accrued bonuses | 466571 | 488000 |
| Accrued research and development | 57353 | 67173 |
| **Total** | $640265 | $642754 |

---

Accrued bonuses include amounts earned by employees (including officers of the Company), which are expected to be paid in cash in the subsequent fiscal year. Certain amounts may be voluntarily deferred for cash management purposes.

**NOTE 5 — RELATED PARTY TRANSACTIONS**

*U.S. Asian Consulting Group, LLC*

On May 9, 2018, the Company entered into a five-year consulting agreement with U.S. Asian Consulting Group, LLC ("U.S. Asian"). The consulting agreement was extended for an additional period of eight years upon the closing of our initial public offering (expiring September 2030). The agreement was amended effective as of July 1, 2024 ("amended agreement") to expand the services. The two members of U.S. Asian are shareholders in the Company including Marilyn Elson, who is the Company's former controller and Leonard Osser.

Pursuant to the consulting agreement, U.S. Asian provides consulting services to the Company with regard to, among other things, corporate development, financing arrangements and international operations. The amended agreement calls for a monthly fee of $16,667, a one-time stock grant (of 100,000 shares of common stock, with a grant date fair value of $96,000) and a semi-annual share award equal to $100,000 with the issuance and delivery of shares to take place following the termination/expirations of the consulting agreement. Current common shares earned and not issued as of March 31, 2026 are 298,224, per the terms of the agreement. The Company recorded approximately $50,000 for the three months ended March 31, 2026 and 2025, respectively, of stock compensation related to the semi-annual stock grants earned and approximately $50,000 for the three months ended March 31, 2026 and 2025, respectively, related to the monthly cash portion of the consulting agreement.

<u>*Leases*</u>

Our principal executive office is located at 1776 Yorktown, Suite 550, Houston, Texas 77056. Under ASC 842 "*Leases*", we have a sub-lease (through IIcom Strategic Inc. controlled and owned by our Chief Executive Officer) totaling approximately 4,000 square feet of office space under an operating lease. Management and support staff are located at this location. The initial sub-lease expired in January of 2024. The Company entered into a new sublease for the same parties for additional space, which expired in February 2026, at which time the Company is paying month to month. Pursuant to the sublease, we paid the third-party landlord (not the sub landlord) all direct and indirect rent costs under the primary lease directly for the leased premises. No additional payments are made to the Chief Executive Officer or the entity controlled by him. Our lease costs for each of the three months ended March 31, 2026 and 2025 were approximately $26,000 and $14,000, respectively. The Company is currently negotiating a new lease at the same location, which will be entered into by the Company and not any related party.

**NOTE 6 — STOCKHOLDERS' EQUITY** 

<u>*Issuance of Common Stock*</u>

During the three months ended March 31, 2026, the Company issued an aggregate of 1,395,300 shares of its common stock, as follows:

● 1,395,300 shares of common stock were issued as part of our ATM program (as defined below), with net proceeds of approximately $756,000 .

The Company recognized approximately $480,000 of stock-based compensation for the three months ended March 31, 2026, approximately $170,000 related to stock options noted below and approximately $310,000 for services rendered and paid in stock in lieu of cash by outside consultants, certain employees and Board Members.

During the year three months ended March 31, 2025, the Company issued an aggregate of 24,406 shares of its common stock, as follows:

● 24,406 shares of common stock were issued for services in lieu of cash to an outside consultant.

The Company recognized approximately $635,000 of stock-based compensation for the three months ended March 31, 2025, approximately $235,000 related to stock options noted below and approximately $400,000 for services rendered and paid in stock in lieu of cash rendered by outside consultants, certain employees and Board Members.

<u>*"At-the-Market" Offering*</u>

On October 15, 2025, we entered into an Amendment No. 2 (the "Second Amendment") to that certain equity distribution agreement, dated April 29, 2025 (the "Original Agreement") as amended by that certain Amendment No. 1 to the Original Agreement, dated May 5, 2025, (the "First Amendment" and, together with the Original Agreement and the Second Amendment, the "Equity Distribution Agreement") with Maxim Group LLC ("Maxim"), under which we currently have the ability to issue and sell shares of our common stock, from time to time, through Maxim, up to an aggregate offering price of approximately $4,273,000 (the "ATM program"). During the three months ended March 31, 2026 we sold 1,395,300 shares of our common stock under the ATM program for net proceeds of approximately $756,000.

As of March 31, 2026 in total we have sold 2,086,707 shares of our common stock under the ATM program for gross proceeds of approximately $1,423,000.

<u>*Options*</u>

The Company's 2023 Equity Incentive Plan (the "2023 Plan") was approved by our stockholders on November 10, 2023. The 2023 Plan originally provided that the maximum number of shares of common stock available for the grant of awards under the 2023 Plan shall be 1,500,000, subject to adjustment for stock dividends, stock splits or similar events.

The 2023 Plan is administered by the Compensation Committee of the Board, which may in turn delegate administrative authority to one or more of our executive officers. Under the terms of the 2023 Plan, the Compensation Committee may grant equity awards, including nonqualified stock options and restricted stock to employees, officers, directors, consultants, agents, advisors and independent contractors. The 2023 Plan has been amended, most recently as of July 15, 2025, to increase the number of shares under the 2023 Plan to 9,000,000.

Under the terms of the 2023 Plan, the Compensation Committee may grant equity awards, including nonqualified stock options and restricted stock to employees, officers, directors, consultants, agents, advisors and independent contractors.

The amount expensed during the three months ended March 31, 2026 and 2025 in the unaudited condensed consolidated statements of operations and comprehensive loss related to stock options issued under the 2023 Plan was approximately $169,000 and $235,000, respectively.

On December 19, 2025, the Board and the Compensation Committee approved the grant of stock options to certain employees and Board members, subject to shareholder approval of an amendment to the 2023 Plan to increase the number of shares available for issuance. As of March 31, 2026 and the date of this report, shareholder approval had not been obtained, and therefore no grant date had occurred, and no compensation expense has been recognized. The table below does not include 2,400,000 shares underlying stock options that are contingent on the above shareholder approval.

The following table presents a summary of stock option award activity during the three months ended March 31, 2026:

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of<br> Options** | **Weighted Average<br> Exercise Price** | **Weighted Average<br> Remaining Life<br> In Years** |
| Outstanding December 31, 2025 | 4113617 | $1.12 | 5.80 |
| Issued |  |  |  |
| Exercised |  |  |  |
| Expired or cancelled | - | - | - |
| Outstanding March 31, 2026 | 4113617 | $1.12 | 5.56 |

---

The following table provides additional information about stock options that are outstanding and exercisable as of March 31, 2026:

---

| | | | |
|:---|:---|:---|:---|
| **Exercise Price** | **Outstanding<br> Number of<br> Options** | **Weighted Average<br> Remaining Life<br> In Years** | **Exercisable<br> Number of<br> Options** |
| $0.89 | 2181208 | $7.26 | 1649888 |
| 0.94 | 581250 | 2.70 | 581250 |
| 0.66 | 90620 | 3.49 | 30207 |
| 2.95 | 185000 | 3.75 | 150000 |
| 3.25 | 130000 | 2.30 | 130000 |
| 1.15 | 430435 | 4.31 | 245218 |
| 0.96 | 315104 | 4.42 | 315104 |
| $1.50 | 200000 | 4.53 | 200000 |
|  | 4113617 | $5.56 | 3301667 |

---

**NOTE 7 — COMMITMENT AND CONTINGENCIES**

From time to time, the Company may be subject to legal proceedings and claims arising in the ordinary course of business. As of March 31, 2026, the Company is not a party to any material legal proceedings and has no material commitments or contingencies requiring disclosure in the accompanying unaudited condensed consolidated financial statements.

**NOTE 8 — SEGMENT INFORMATION**

The Company operates as a single reportable segment, consisting of the design and development of innovative neurostimulation products. The Company's focus is on treating mental health conditions without reliance on drugs or psychotherapy.

Consistent with its operational structure, the Chief Executive Officer, who serves as the chief operating decision maker (CODM), manages and allocates resources on a consolidated basis. Financial performance is evaluated based on consolidated net loss, which is also the primary measure used to allocate resources, assess operational performance, set targets, forecast results, and guide strategic decisions, including investments in research and development and commercialization activities.

The CODM monitors segment performance using consolidated net loss and total consolidated assets, which are reported on the unaudited condensed consolidated statements of operations and balance sheets, respectively. Consolidated net loss is compared against budgeted amounts on a quarterly basis to evaluate performance.

The following table summarizes financial information for the Company's single reportable segment and reconciles to unaudited condensed consolidated net loss:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br> March 31,** | **Three Months Ended<br> March 31,** |
|  | **2026** | **2025** |
| Total revenues |  |  |
| &nbsp;&nbsp;&nbsp;US | $14950 | $20443 |
| &nbsp;&nbsp;&nbsp;International | - | 20572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Revenue | 14950 | 41015 |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp;Cost of revenues (excluding amortization and depreciation) | 1817 | 13558 |
| &nbsp;&nbsp;&nbsp;Research and development expense (excluding share-based compensation expense): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Clinical trials | 198445 | 61352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EDC Build | 55800 | 18050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Halo project | 88767 | 298037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SYNC project |  | 23713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other research and development<sup>(a)</sup> | 3370 | 5136 |
| &nbsp;&nbsp;&nbsp;General and administrative and salaries and benefits expense (excluding stock based compensation, depreciation and amortization expense) | 801904 | 622948 |
| &nbsp;&nbsp;&nbsp;Depreciation | 4106 |  |
| &nbsp;&nbsp;&nbsp;Amortization | 6736 | 4786 |
| &nbsp;&nbsp;&nbsp;Stock based compensation | 478611 | 636844 |
| &nbsp;&nbsp;&nbsp;Professional fees | 495296 | 367816 |
| &nbsp;&nbsp;&nbsp;Interest income, net | (34) | (1103) |
| &nbsp;&nbsp;&nbsp;Equity in net income from equity method investees |  | 1048 |
| &nbsp;&nbsp;&nbsp;Other income | (23031) | (22833) |
| Segment net loss | (2096837) | (1988337) |
| Reconciliation of net loss |  |  |
| Adjustments and reconciling items | - | - |
| Consolidated net loss | $(2096837) | $(1988337) |

---

(a) Other research and development expenses primarily consist of facilities charges, third party consultant costs, costs related to other product candidates, and other unallocated costs.

**NOTE 9 — SUBSEQUENT EVENTS**

<u>Insomnia FDA Study</u>:

On April,17, 2026, the Company entered into a Scope of Work (the "SOW") with Lindus Health Limited ("Lindus Health"), a clinical research organization based in the United Kingdom. The SOW is governed by a Master Services Agreement ("MSA") previously entered into between the parties and sets forth the terms under which Lindus Health will conduct the Company's pivotal clinical trial for its HALO Clarity device (the "Pivotal Study").

Under the SOW, the Company will pay Lindus Health direct fees in an aggregate amount of approximately $945,000, plus certain pass-through expenses. Payments of direct fees are structured on a milestone basis, and pass-through expenses are invoiced on a monthly basis.

The term of the SOW continues until completion of all services described therein, unless terminated earlier in accordance with the MSA. The SOW provides that certain changes to the Pivotal Study, such as addition of new clinical sites, increases in enrolled participants, protocol amendments after study start-up, amendments to critical analyses, extension of study duration, and requests for additional platform features or integrations, will require a change order, which may result in adjustments to the scope, budget, or timeline.

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*Special Note Regarding Forward-Looking Statements*

*You should read the following discussion and analysis of financial condition and operating results together with our unaudited condensed consolidated financial statements and the related notes and other financial information included elsewhere in this Report and our audited 2025 Annual Report on Form 10-K, filed with the Securities and Exchange Commission, or the SEC, on March 25, 2026.*

*Overview*

Nexalin Technology, Inc. is a medical device company focused on developing innovative neurostimulation products to address the global mental health epidemic. The Company generates limited domestic revenue primarily from legacy Gen-1 device licensing fees and electrode sales, as U.S. marketing of new Gen-1 devices has been paused following the FDA's December 2019 reclassification of cranial electrotherapy stimulation devices and international sales of our Gen-2 device and supplies. During fiscal year 2025 and the first quarter of 2026, the Company advanced its next-generation product development, with the FDA formally accepting the Company's Q-Submission for its Gen-2 SYNC system targeting Alzheimer's disease and dementia, and clinical trials for the Gen-3 HALO device for insomnia in the United States. Management's priorities include obtaining FDA clearance for its Gen-2 and Gen-3 devices and executing U.S. clinical trials. The Company faces significant challenges, including substantial doubt about its ability to continue as a going concern due to recurring losses and negative cash flows, a requirement to regain compliance with Nasdaq's minimum bid price requirement, and material weaknesses in internal control over financial reporting related to segregation of duties and IT access controls. The neurostimulation industry remains competitive and subject to rapid technological change, and the Company's success depends on its ability to obtain regulatory approvals, protect its intellectual property, and achieve market acceptance for its products.

*Recent Developments*

<u>Insomnia FDA Study</u>:

On April,17, 2026, the Company entered into a Scope of Work (the "SOW") with Lindus Health Limited ("Lindus Health"), a clinical research organization based in the United Kingdom. The SOW is governed by a Master Services Agreement ("MSA") previously entered into between the parties and sets forth the terms under which Lindus Health will conduct the Company's pivotal clinical trial for its HALO Clarity device (the "Pivotal Study").

Under the SOW, the Company will pay Lindus Health direct fees in an aggregate amount of approximately $944,820, plus certain pass-through expenses. Payments of direct fees are structured on a milestone basis, and pass-through expenses are invoiced on a monthly basis.

The term of the SOW continues until completion of all services described therein, unless terminated earlier in accordance with the MSA. The SOW provides that certain changes to the Pivotal Study, such as addition of new clinical sites, increases in enrolled participants, protocol amendments after study start-up, amendments to critical analyses, extension of study duration, and requests for additional platform features or integrations, will require a change order, which may result in adjustments to the scope, budget, or timeline.

*Results of Operations*

**Comparison of the three months ended March 31, 2026 and 2025**

Our financial results for the three months ended March 31, 2026 and 2025 are summarized as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended<br> March 31,** | **Three Months Ended<br> March 31,** | |
|  | **2026** | **2025** |<br>**Change<sup>(1)</sup>** |
|  | | | % |
| Revenues, net | $14950 | $41015) | (64%) |
| Cost of revenues | 1817 | 13558) | (87%) |
| Gross profit | 13133 | 27457) | (52%) |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;Professional fees | 495296 | 367816 | 35% |
| &nbsp;&nbsp;&nbsp;Salaries and benefits | 498560 | 335358 | 49% |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 792797 | 929220) | (15%) |
| &nbsp;&nbsp;&nbsp;Research and development | 346382 | 406288) | (15%) |
| Total operating expenses | 2133035 | 2038682 | 5% |
| Loss from operations | (2119902) | (2011225) | 5% |
| Other income, net: |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income, net | 34 | 1103) | (97%) |
| &nbsp;&nbsp;&nbsp;Gain on sale of short-term investments | 21025 | 20119 | 5% |
| &nbsp;&nbsp;&nbsp;Other income | 2006 | 2714) | (26%) |
| Total other income, net | 23065 | 23936) | (4%) |
| Loss before provision for income taxes | $(2096837) | $(1987289) | 6% |
| Provision for income taxes | - | - | 0% |
| Loss before net loss of affiliate | (2096837) | (1987289) | 6% |
| Net loss of affiliate | - | (1048) | (100%) |
| Net loss | $(2096837) | $(1988337) | 5% |
| Other comprehensive income: |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized gain from short-term investments | 88 | 830) | (89%) |
| Comprehensive loss | $(2096749) | $(1987507) | 5% |

---

(1) Percentages may not foot due to rounding.

<u>Revenues</u>

For the three months ended March 31, 2026 and 2025, we generated approximately $15,000 and $41,000, respectively, primarily derived from licensing and treatment fee agreements with our customers. Under these arrangements, we charge a monthly licensing fee for the duration of the agreement and may also collect fees based on the number of treatments performed each month. In addition, we generate revenue from equipment sales, including boards, electrodes, and patient cables used with our devices, as well as related shipping income.

The decrease in revenue for the three months ended March 31, 2026, compared to the same period in 2025, was primarily due to lower equipment sales to an international customer during the current period. We expect device and equipment-related revenue to continue to fluctuate period to period based on customer purchasing patterns, particularly with respect to international customers.

<u>Cost of Revenues and Gross Profit</u>

For the three months ended March 31, 2026 and 2025, cost of revenues was approximately $2,000 and $14,000, respectively, resulting in gross profit of approximately $13,000 and $27,000, respectively, and gross margins of 88% and 66%, respectively. The increase in gross margin was primarily attributable to changes in revenue mix, as licensing fees comprised a larger portion of total revenue in the current period and carry higher margins.

We expect gross margins to continue to be influenced by the relative proportion of licensing revenue versus device and equipment-related sales in future periods.

<u>Operating Expenses</u>

Total operating expenses for the three months ended March 31, 2026 and 2025 were approximately $2,133,000 and $2,039,000, respectively, an increase of approximately $94,000. The increase was primarily attributable to higher professional fees and increased salaries and benefits, partially offset by decreases in selling, general and administrative expenses and research and development costs.

Professional fees increased by approximately $127,000, primarily due to higher marketing and investor relations expenses of approximately $145,000, partially offset by a decrease in accounting and legal fees of approximately $38,000. The remaining increase relates to changes in other immaterial expense categories.

Salaries and benefits increased by approximately $163,000, primarily attributable to headcount additions in the latter half of 2025, accrued bonuses recognized in the first quarter of 2026, and routine increases in wages, payroll taxes, and employee benefits.

Selling, general and administrative expenses decreased by approximately $136,000, primarily due to a decrease of approximately $158,000 in stock-based compensation recognized during the three months ended March 31, 2026 compared to the same period in the prior year. Consulting expenses also decreased by approximately $53,000, reflecting reduced international consulting activity. These decreases were partially offset by increases in regulatory and compliance costs of approximately $57,000, related to compliance audits and regulatory consulting, and an increase of approximately $18,000 in travel expenses.

Research and development expenses decreased by approximately $60,000, primarily due to a reduction of approximately $209,000 in costs associated with the Halo development project, as the units have transitioned from development into production for an upcoming clinical trial, as well as a reduction of approximately $24,000 related to the SYNC Desktop project. These decreases were partially offset by an increase of approximately $137,000 in clinical trial expenses and approximately $36,000 in software development costs, including continued development of the app and EDC platform.

We expect research and development expenses to fluctuate in future periods based on the timing and scope of clinical trials, as well as continued investment in software and platform development.

<u>Other Income, Net</u>

Other income, net, for the three months ended March 31, 2026 and 2025 was approximately $23,000 and $24,000, respectively, and remained consistent between periods. Other income primarily consists of interest and dividend income, as well as gains on the sale of short-term investments.

*Liquidity and Capital Resources*

**Working Capital**

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2026** | **December 31,<br>2025** |
| Current assets | $3290154 | $4299270 |
| Current liabilities | 808364 | 887333 |
| Working capital | $2481790 | $3411937 |

---

Current assets decreased for the three months ended March 31, primarily due to decreases in short-term investments and cash and cash equivalents resulting from cash used in operating activities, partially offset by proceeds from drawdowns under our at-the-market ("ATM") program.

Current liabilities decreased for the three months ended March 31, 2026, primarily due to a decrease in accounts payable resulting from the timing of vendor payments.

We expect fluctuations in working capital in future periods to be driven by the timing of operating expenditures, vendor payments, and capital raising activities, including potential continued use of the ATM program.

***"At-the-Market" Offering***

On October 15, 2025, we entered into the Second Amendment to the Original Agreement with Maxim, under which we currently have the ability to issue and sell shares of our common stock, from time to time, through Maxim, up to an aggregate offering price of approximately $4,273,000.

For the three months ended March 31, 2026 we have sold 1,395,300 shares of our common stock under the ATM program for net proceeds of approximately $756,000.

As of March 31, 2026 we have sold a total of 2,086,707 shares of our common stock under the ATM program for gross proceeds of approximately $1,423,000.

**Cash Flows**

The following table summarizes our consolidated cash flows for the three months ended March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
| | **March 31,<br>2026** | **March 31,<br>2025** |
| Net cash used in operating activities | $(1712988) | $(1426214) |
| Net cash provided by investing activities | $1509679 | $1473758 |
| Net cash provided by financing activities | $756421 | $- |

---

<u>Net Cash Used In Operating Activities</u>

Net cash used in operating activities was approximately $1,713,000 for the three months ended March 31, 2026, as compared to approximately $1,426,000 for the respective period in 2025, an increase of approximately $287,000, which was primarily due to an increase in net loss of approximately $109,000, or approximately $262,000 adjusted for non-cash expenses. The remaining change was due to changes in operating assets and liabilities for the respective periods; a decrease in accounts payable of approximately $102,000, an increase in prepaid expenses and other current assets of approximately $90,000, decrease in inventory of approximately $47,000, a decrease in accrued expenses of approximately $5,000 and increase in accounts receivable of approximately $40,000.

<u>Net Cash Provided by Investing Activities</u>

Net cash provided by investing activities during the three months ended March 31, 2026 and 2025 was approximately $1,510,000 and $1,474,000, respectively. For the three months ended March 31, 2026 this was due to sales of short-term investments of approximately $5,590,000 offset by purchases of approximately $4,001,000 of short-term investments and the purchase of equipment, patents and trademarks of approximately $79,000. Net cash provided by investing activities during the three months ended March 31, 2025 of approximately $1,474,000 was due to sales of short-term investments of approximately $6,496,000 offset by purchases of approximately $4,999,000 of short-term investments and the purchase of patents and trademarks of approximately $24,000.

<u>Net Cash Provided by Financing Activities</u>

Net cash provided by financing activities during the three months ended March 31, 2026 and 2025 was approximately $756,000 and $0, respectively, which was due to sales under our ATM program in the three months ended March 31, 2026 period. No such financing occurred during the three months ended March 31, 2025.

**Uses and Availability of Additional Funds**

Our primary uses of capital are, and we expect will continue to be, compensation and related expenses, third-party clinical research and development services, manufacturing development costs, legal and other regulatory expenses, and general administrative costs. Although we have produced Gen-2 devices, which are selling internationally where it is approved for certain utilizations by medical practitioners, the successful development of our future products is highly uncertain. At this time, we cannot reasonably estimate or know the nature, timing and estimated costs of the efforts that will be necessary to complete the clinical development of Gen-3 and obtain regulatory approvals. We are also unable to predict when, if ever, net cash inflows from revenues will enable us to be cash flow positive. This is due to the numerous risks and uncertainties associated with developing products, including, among others, the uncertainty of:

● successful enrolment in, and completion of clinical trials;

● performing preclinical studies and clinical trials in compliance with the FDA or any comparable regulatory authority requirements;

● the ability to outsource the manufacture of our products for development, clinical trials and/ or potential commercialization;

● obtaining and maintaining patent, trademark and trade secret protection for our products;

● scaling the commercial sales of products, if and when approved, whether alone or in collaboration with others;

● acceptance of existing therapies, and future therapies, if and when approved, by healthcare providers, physicians, clinicians, patients and third-party payors;

● competing effectively with other therapies;

● obtaining and maintaining healthcare coverage and adequate reimbursement;

● protecting our rights in our intellectual property portfolio; and

● maintaining a continued acceptable safety profile of our products following approval.

*Liquidity*

As of March 31, 2026, the Company had a significant accumulated deficit of approximately $94,964,000. For the three months ended March 31, 2026, the Company had a net loss from operations of approximately $2,120,000 and negative cash flows from operations of approximately $1,713,000. The Company will continue to service existing customers in the United States as well as sell devices and equipment overseas. The Company's operating activities consume the majority of its cash resources. The Company anticipates that it will continue to incur operating losses as it executes its development plans including clinical trials through 2026 and beyond, as well as other potential strategic and business development initiatives. Management believes that additional capital may be required to fund the Company's planned clinical and operating activities, including the pivotal insomnia study, beyond its current cash resources. In addition, the Company has had and expects to have negative cash flows from operations, at least into the near future. The Company previously funded these losses primarily through the sale of equity and utilization of our ATM program. As of March 31, 2026, the Company had cash and cash equivalents on hand of approximately $1,208,000 and short-term investments of approximately $1,501,000. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern for at least twelve months after the date of this Report.

The Company believes that the acquisition of the licensed technology noted in the recent developments above, together with the related collaboration arrangement, will support its long-term strategic objectives by enhancing its technology platform and enabling potential new product offerings. However, these initiatives may require additional capital resources to fully develop and commercialize, and there can be no assurance that the Company will achieve the anticipated benefits within the expected timeframes.

Our ability to continue as a going concern will be dependent upon our ability to execute on our business plan, including the ability to generate revenue from overseas opportunities and obtain U.S. approval for the sale of our devices in the United States, and, if necessary, our ability to raise additional capital. Although no assurances can be given as to our ability to deliver on our revenue plans or that unforeseen expenses may arise, management has evaluated the significance of the conditions as of March 31, 2026 and have concluded that we will not have sufficient cash and cash equivalents and short-term investments to satisfy our anticipated cash requirements for the next twelve months from the issuance of these unaudited condensed consolidated financial statements. These plans were therefore determined not to be sufficient to overcome the presumption of substantial doubt about the Company's ability to continue as a going concern within twelve months from the issuance of these unaudited condensed consolidated financial statements. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

*Commitments and Contingencies*

As of March 31, 2026, the Company had no material commitments or contingencies. See Note 7 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

*Critical Accounting Estimates*

We prepare our unaudited condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles, which require our management to make estimates that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the balance sheet dates, as well as the reported amounts of revenues and expenses during the reporting periods. To the extent that there are material differences between these estimates and actual results, our financial condition or results of operations would be affected. We base our estimates on our own historical experience and other assumptions that we believe are reasonable after taking account of our circumstances and expectations for the future based on available information. We evaluate these estimates on an ongoing basis.

We consider an accounting estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations. There are items within our unaudited condensed consolidated financial statements that require estimation but are not deemed critical, as defined above.

*Recent Accounting Pronouncements*

Refer to Note 3 to the unaudited condensed consolidated financial statements for a description of recently issued accounting pronouncements. Management does not anticipate a material impact on the Company's financial position or results of operations from these pronouncements.

*Off-Balance Sheet Arrangements*

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

*Minimum Bid Price Requirement*

We are required to maintain a minimum bid price of $1.00 per share. On January 21, 2026, the Company received a deficiency letter (the "Notice") from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that, based upon the closing bid price of the Company's common stock, for the last 30 consecutive business days, the Company is not currently in compliance with the requirement to maintain a minimum bid price of $1.00 per share for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Requirement").

The Notice has no immediate effect on the continued listing status of the Company's common stock on The Nasdaq Capital Market, and, therefore, the Company's listing remains fully effective. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company is provided a compliance period of 180 calendar days from the date of the Notice, or until July 20, 2026, to regain compliance with the Minimum Bid Requirement. To regain compliance, the closing bid price of the Company's common stock must meet or exceed $1.00 per share for a minimum of ten consecutive business days prior to July 20, 2026. If the Company is not in compliance with the Minimum Bid Requirement by July 20, 2026, the Company may be afforded a second 180 calendar day compliance period. To qualify for this additional compliance period, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the Minimum Bid Price requirement. The Company continues to evaluate all options to regain compliance with the Minimum Bid Requirement.

**Item 3. Quantitative and Qualitative Disclosures about Market Risk**

Not applicable. As a smaller reporting company, we are not required to provide the information required by this item under SEC rules.

**Item 4. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of the design and operation of our "disclosure controls and procedures," as such term is defined in Rule 13a-15(e) or Rule 15d-15(e) promulgated under the Exchange Act as of the end of the period covered by this Report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this Report to provide reasonable assurance that material information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms due to the material weaknesses described below.

**Material Weaknesses in Internal Control over Financial Reporting**

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Internal control over financial reporting is a process designed by, or under the supervision of, our principal executive officer and principal financial officer, or persons performing similar functions, and effected by our Board to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles. Our management evaluated, with the participation of our Chief Executive Officer and Chief Financial Officer (our "Certifying Officers"), the effectiveness of our internal control over financial reporting as of March 31, 2026, pursuant to Rule 13a-15(b) under the Exchange Act. Based upon that evaluation, our Certifying Officers concluded that, as of the evaluation date, our internal control over financial reporting was not effective due to the following material weaknesses:

● Lack of sufficient resources necessary to provide adequate segregation of duties related to the preparation and review of financial information used in financial reporting and review of controls over the financial reporting process; and

● Insufficient IT controls which are effectively designed and implemented, specifically related to user/superuser access to the Company's financial reporting system.

The deficiencies described above, if not remedied, could result in a misstatement of one or more account balances or disclosures in our annual or interim consolidated financial statements that would not be prevented or detected, and, accordingly, we determined that these control deficiencies constitute a material weakness.

**Management's Plan to Remediate the Material Weaknesses**

To address our material weaknesses, we intend to implement new financial accounting controls and processes. We intend to continue to take steps to remediate the material weakness described above through implementing enhancements and controls within our accounting systems, and by hiring qualified personnel with experience and knowledge in accounting and financial reporting, subject to budget limitations. During this year, we hired a new full-time CFO with experience and knowledge in accounting and financial reporting and anticipate hiring additional personnel as resources allow. We will not be able to remediate these control deficiencies until these steps have been completed and have been operating effectively for a sufficient period of time and Management has concluded, through testing, that the controls are operating effectively. The redesign and implementation of improvements to our accounting and proprietary systems and controls may be costly and time consuming and the cost to remediate may impair our results of operations in the future.

In light of the conclusion that our internal control over financial reporting was not effective as of March 31, 2026, we have applied particular procedures and processes as necessary to ensure the reliability of our financial reporting with respect to this Report. Accordingly, we believe, based on our knowledge that: (i) this Report does not contain any untrue statement of material fact or omit a statement of material fact necessary to make the statements made, in light of the circumstances under which they were made, not misleading with respect to the period covered by this Report; and (ii) the consolidated financial statements, and other financial information included in this Report, fairly present in all material respects our financial condition, results of operations, and cash flows as of and for the periods presented in this Report.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of our internal control over financial reporting on March 31, 2026. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission 2013 framework, in Internal Control-Integrated Framework.

This Report does not include an attestation report of our registered public accounting firm due to an exemption established by SEC rules for emerging growth companies.

**Changes in Internal Control over Financial Reporting**

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent fiscal year that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**PART II — OTHER INFORMATION**

**Item 1. Legal Proceedings**

None.

**Item 1A. Risk Factors.**

This item is not required for a smaller reporting company.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities**

None.

**Item 3. Defaults Upon Senior Securities**

None.

**Item 4. Mine Safety Disclosures**

Not applicable.

**Item 5. Other Information**

<u>Insider Trading Plans</u>

During the three months ended March 31, 2026, no director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

**Item 6. Exhibits**

***Exhibits and Financial Statement Schedules.***

(a) Exhibits.

---

| | |
|:---|:---|
| **Exhibit Number** | **Description of Document** |
| 3.1<sup>(1)</sup> | [Certificate of Incorporation, as amended and as currently in effect.](https://www.sec.gov/Archives/edgar/data/1527352/000182912622007966/nexalintechnology_ex3-1.htm) |
| 3.2<sup>(1)</sup> | [Amended and Restated Bylaws](https://www.sec.gov/Archives/edgar/data/1527352/000182912622016146/nexalin_ex3-2.htm) |
| 4.1<sup>(1)</sup> | [Form of Specimen stock certificate evidencing shares of common stock](https://www.sec.gov/Archives/edgar/data/1527352/000089109222000235/e14909ex4-1.htm) |
| 10.1<sup>(2)(4)</sup> | [Scope of Work between the Company and Lindus Health Limited entered into on April 17, 2026.](nexalintechno_ex10-1.htm) |
| 31.1<sup>(2)</sup> | [Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended](nexalintechno_ex31-1.htm) |
| 31.2<sup>(2)</sup> | [Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended](nexalintechno_ex31-2.htm) |
| 32.1<sup>(3)</sup> | [Certification of the Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](nexalintechno_ex32-1.htm) |
| 32.2<sup>(3)</sup> | [Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](nexalintechno_ex32-2.htm) |
| 101.INS<sup>(2)</sup> | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) |
| 101.SCH<sup>(2)</sup> | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL<sup>(2)</sup> | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF<sup>(2)</sup> | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB<sup>(2)</sup> | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE<sup>(2)</sup> | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL, and included in exhibit 101). |

---

(1) Previously filed as an exhibit to Form S-1 as declared effective by the SEC on September 15, 2022 (SEC File Number 333-261989).

(2) Filed as an exhibit to this Form 10-Q.

(3) Furnished herewith.

(4) Pursuant to Item 601(b)(10) of Regulation S-K, certain confidential portions of this exhibit were omitted by means of marking such portions
with an asterisk because the identified confidential portions (i) are not material and (ii) are the type that the Company treats as private
or confidential. The Company hereby agrees to furnish a copy of any redacted portion to the SEC upon request.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Nexalin Technology, Inc.** | **Nexalin Technology, Inc.** |
|  | By: | /s/ Mark White |
| Dated: May 8, 2026 |  | Mark White |
|  |  | Chief Executive Officer<br> Principal Executive Officer |

---

## Exhibit 10.1

**Exhibit 10.1**

**CERTAIN INFORMATION IDENTIFIED BY BRACKETED ASTERISKS ([\*\*\*]) HAS BEEN OMITTED<br> FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE OF INFORMATION<br> THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**SCOPE OF WORK**

This Scope of Work ("SOW"), SOW:[ID], effective as of the date of the last signature below ("Effective Date"), is made by and between Nexalin Technology, Inc. ("Sponsor") and Lindus Health Limited ("Lindus Health") and shall be governed by the Master Services Agreement ("MSA"). Sponsor and Lindus Health shall be referred to herein individually as a "Party" and collectively as "Parties". This SOW should be read alongside the MSA, and any other SOWs or SOW amendments that relate to the same project, in totality referred to as "the Lindus Health Agreement".

**1. <u>Study Information</u>**

● **Protocol / Project Title:** HALO Clarity Transcranial Alternating Current Stimulation Therapy for Adults with Moderate-to-Severe Insomnia: A Prospective, Randomized, Triple-Blind, Sham-Controlled, Decentralized, Superiority Trial ("Pivotal Study")

● **Protocol Number:** CLP004

● **Phase:** Pivotal

**2. <u>Definitions</u>**

This SOW and the Study contemplated herein is subject to the terms and provisions of the MSA. Capitalized terms used herein that are not otherwise defined in this SOW shall have the meaning ascribed to them in the MSA.

**3. <u>Scope of Services / Delegated Obligations</u>**

The Parties agree that Lindus Health will perform the Study set out in "Appendix A - Study Scope" in accordance with the terms of the Lindus Health Agreement and the Quality Agreement set out at Appendix D. The Services to be performed by Lindus Health pursuant to this SOW, including without limitation all Sponsor obligations that are to be transferred to Lindus Health, are set forth within this SOW. Lindus Health's own Standard Operating Procedures will be used to carry out Transferred Obligations.

**4. <u>Study Budget / Payment Schedule</u>**

Sponsor will make payments to Lindus Health as set forth in "Appendix B - Payment Terms, Budget, and Payment Schedule" in accordance with the MSA unless otherwise specified in Appendix B.

**5. <u>Delays/Holds</u>**

If Sponsor delays or postpones the Study, or requests that Services be delayed or put on hold, other than as a result of Lindus Health's negligence, Sponsor shall be responsible for all documented, non-cancellable costs incurred by Lindus Health, in accordance with Appendix B - Budget and Payment Schedule.

Confidential Page 1 of 18

**6. <u>Approved Affiliates / Key Personnel</u>**

As provided by the MSA, all Key Personnel who may be performing the Services pursuant to this SOW are listed within this document. All inquiries and correspondence regarding this SOW, including billing and payment issues, shall be directed as set forth below:

---

| | | |
|:---|:---|:---|
| | **Name/Title** | **Email** |
| Administrative/Contractual Matters | [\*\*\*] | [\*\*\*] |
| Payment Matters | [\*\*\*] | [\*\*\*] |
| QA Matters | [\*\*\*] | [\*\*\*] |

---

**7. <u>Term and Termination</u>**

The term of this SOW shall commence on the Effective Date and shall end upon the completion of all Services described herein, unless this SOW is terminated in accordance with the MSA.

**8. <u>Amendments</u>**

No modification, amendment, or waiver of this SOW shall be effective unless in writing signed by a duly authorized representative of each Party in accordance with Section 14.3 of the MSA.

This SOW has been entered into by the Parties or their duly authorised representatives on the date of last signature below.

---

| | |
|:---|:---|
| **LINDUS HEALTH LIMITED** | **Nexalin Technology, Inc.** |
| Signature: */s/ [\*\*\*]* | Signature: */s/ Mark White* |
| Name: [\*\*\*] | Name: Mark White |
| Title: [\*\*\*] | Title: President & CEO |
| Date: 10-Apr-2026 | Date: 17-Apr-2026 |

---

Confidential Page 2 of 18

**APPENDIX A - STUDY SCOPE**

The timelines and specifications below are based on the following document(s): Nexalin Round 3 draft HALO Clarity Transcranial Alternating Current Stimulation Therapy for Insomnia.docx. Any changes to the following items will require a Change Order under Section 3 of the MSA, or an extension to the timelines below, as determined by Lindus Health in its sole discretion:

● Addition of new clinical sites;

● Increase in the total number of participants enrolled;

● Amendments to the Protocol after the Study Startup Period has commenced (pursuant to Section 3.3 of the MSA);

● Amendments to any of the primary, secondary, or safety analyses (as applicable to the Study) ()"**Critical Analyses**") after the Study Startup Period has commenced;

● Extension of the Study duration by more than [\*\*\*];

● Addition of more than [\*\*\*] new case report forms (CRFs);

● Introduction of new study endpoints or significant revisions to the statistical analysis plan;

● Receipt of COA validated licences' quote for required ePROs and ClinROs as stated in protocol;

● Requests for major additional features or integrations within the Citrus platform.

The above is not an exhaustive list of items which may require a Change Order.

Under Section 3.1.1 of the MSA, no such Change shall come into effect until the Parties have executed a Change Order unless otherwise agreed between the Parties under Section 3.1.3.

**<u>Project Timelines</u>**

---

| | | | |
|:---|:---|:---|:---|
| **Activity** | | **Estimated<br> Start** | **Estimated<br> Completion** |
| **Effective Date of Contract** | 10-Apr-26 | 10-Apr-2026 |  |
| **Kick-off Meeting** | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| **Regulatory & Ethics Submissions\*** | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| **Start Up**<br> *Includes Site Training, TMF Setup, Data Management Initiation, Participant Recruitment Campaign, Site Start up* | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| **Citrus platform configuration: eCRF/ePRO, custom logic and edit check implementation\*\*** | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| **Citrus platform: validation and UAT\*\*** | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| **Enrollment period**<br> *First participant consent to last participant in* | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| **Intervention and Follow-up:**<br> *Last participant in to last participant last visit* | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| **Study Close Out** | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| **Total Study Duration** | **14** | **10-Apr-26** | **08-Jun-27** |
| *\*Please note that the IRB/Ethics & regulatory (where applicable) submission will take place once the protocol has been finalized, with review expected to be underway in parallel with start-up activities outlined above. \*\*Any changes to the protocol or from regulatory feedback after Citrus build has begun will extend the build timeline.* | *\*Please note that the IRB/Ethics & regulatory (where applicable) submission will take place once the protocol has been finalized, with review expected to be underway in parallel with start-up activities outlined above. \*\*Any changes to the protocol or from regulatory feedback after Citrus build has begun will extend the build timeline.* | *\*Please note that the IRB/Ethics & regulatory (where applicable) submission will take place once the protocol has been finalized, with review expected to be underway in parallel with start-up activities outlined above. \*\*Any changes to the protocol or from regulatory feedback after Citrus build has begun will extend the build timeline.* | *\*Please note that the IRB/Ethics & regulatory (where applicable) submission will take place once the protocol has been finalized, with review expected to be underway in parallel with start-up activities outlined above. \*\*Any changes to the protocol or from regulatory feedback after Citrus build has begun will extend the build timeline.* |

---

Confidential Page 3 of 18

The Study Startup Period shall commence on the Business Day after both the Protocol and Critical Analyses (if applicable) have been agreed and finalized between the Parties.

**<u>Services</u>**

In addition to the Services below, Lindus Health's and other third parties' Roles and Responsibilities are set out in Appendix C.

---

| | |
|:---|:---|
| **SCOPE OVERVIEW** | **SCOPE OVERVIEW** |
| **Lindus Health services provided** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following services will be provided per Study:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Overall project and Study management<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Citrus platform for: EDC, including integrated eCOA module/CTMS/Clinical Database<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● eTMF/eISF<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Data management<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Protocol finalization based on existing draft<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Covered under SUA<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● IRB preparation/submission and reporting, including IRB and registration fees<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Regulatory preparation and submission, including protocol review<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Recruitment<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Clinical Study monitoring<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Medical monitoring<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Lindus Health virtual site<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Patient stipend<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Randomization<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Device logistics to patients (DtP)<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Biostatistics<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Medical writing (CSR)<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● COA license for validated scales<br>If Sponsor requires services not listed above under Lindus Health, a rebid will be required. |

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Confidential Page 4 of 18

---

| | |
|:---|:---|
| **Sponsor responsibility** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sponsor will provide the following per Study:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Protocol writing<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Investigational Device Approval (US pivotal)<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Study specific insurance<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Providing licensed clinicians to assess baseline data - Sponsor is responsible for participant eligibility evaluation, including ensuring adequate clinician availability to conduct assessments.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● HALO devices:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ instructions for use document<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ helpdesk/technical support to Lindus Health virtual site and participants<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ training and troubleshooting to participants<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Creation and provision of technical device documents required for regulatory submission: Instructions For Use document for HALO device<br>As per Sponsor feedback on December 17th 2025, DSMB will not be required. |
| **Service geography** | United States |
| **# of sites** | 1, Lindus Health Virtual Site |
| **# of patients enrolled** | 160 |
| **Screen failure rate** | 50% |
| **Dropout rate** | <20% |
| **SAE rate related to HALO device** | 0% UADE rate - as confirmed by Sponsor<br> In the event a UADE occurs or unrelated SAE occurance is >4 SAE events, a change order will be required. |
| **AE rate** | <5% |
| **Languages patient-facing** | English |
| **Languages site-facing** | English |
| **Study meetings** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Investigator meeting: none<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Sponsor teleconferences:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Startup: Weekly call of 1 hour<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Enrollment: Weekly call of 1 hour<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Treatment: Up to weekly call of 1 hour<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Closeout: Up to weekly call of 1 hour |

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Confidential Page 5 of 18

**<u>All deliverables below are per Study</u>**

---

| | |
|:---|:---|
| **LINDUS HEALTH DELIVERABLES** | **LINDUS HEALTH DELIVERABLES** |
| **CITRUS PLATFORM** | **CITRUS PLATFORM** |
| **Citrus EDC** | Lindus Health will be responsible for programming our EDC to capture all study endpoints and assessments including eCOAs and eCRFs, with built-in data validation. Including assessment scheduling, patient reminders via SMS, email, and phone. |
| **Citrus clinical database** | Lindus Health will be responsible for coding, building and testing of the Study database for all endpoint data by our data management team including a full UAT. All data will be stored and coded automatically in tabular format. If other data formats are required for submission (eg full SDTM or aDAM) a change order will be required. |
| **Data management** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lindus Health data management team will be responsible for support throughout the Study, including data querying, cleaning, database review before any database locks.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● This includes 2 data exports in tabular format: 1 during interim analysis and 1 after database hard lock.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● In the event Sponsor requires additional data exports/interim analysis, a rebid will be required and timelines might be extended. |
| **Citrus central monitoring** | Lindus Health will be responsible for centralized, real-time monitoring for Study endpoint, S/AEs and protocol adherence monitoring. |
| **Helpdesk/technical support** | Email support for Citrus will be available to Study patients and Sponsor during business hours. Support includes resolution of common platform user issues (such as login or other account access issues). Participants experiencing technical problems will contact Lindus health's virtual site as the first line of support. |
| **Validated COA licenses** | Lindus Health will be responsible for procuring the required Validated questionnaire licenses while cost will be treated as passthrough. |
| **Biostatistics** | **Biostatistics** |
| **Biostatistics** | Lindus Health statisticians will be responsible for the drafting of the Statistical Analysis Plan (SAP) and execution of the SAP, resulting in full statistical analysis, including tables, listings and figures. |
| **CONSENT & SOURCE** | **CONSENT & SOURCE** |
| **eConsent** | Lindus Health will be responsible for providing virtual site with a risk proportional eConsent platform (including 21 CFR Part 11 to consent participants. |
| **eSource** | Lindus Health virtual site will collect source documents electronically through Citrus. |
| **ELECTRONIC TRIAL MASTER FILE (eTMF)** | **ELECTRONIC TRIAL MASTER FILE (eTMF)** |
| **eTMF** | Lindus Health will be responsible for setting up and maintaining the eTMF to store key Study documents and allow for centralized monitoring. Lindus Health virtual site will be provided with an electronic investigator site file.<br>After Study close out, Sponsor will be responsible for TMF archiving. Sponsor will download TMF documents from Lindus Health's eTMF partner platform. |
| **RANDOMIZATION** | **RANDOMIZATION** |
| **Randomization** | Lindus Health will be responsible for randomization of patients into the specified arms through a trusted randomization partner. |

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| | |
|:---|:---|
| **CLINICAL OPERATION DELIVERY** | **CLINICAL OPERATION DELIVERY** |

| **Vendor management** | Lindus Health will be responsible for managing Lindus Health's Study vendors including randomization, logistics, questionnaire licensing and stipend distribution vendors. |
| **PATIENT RECRUITMENT** | **PATIENT RECRUITMENT** |
| **Recruitment campaign design and materials** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lindus Health will be responsible for designing custom recruitment campaign materials including:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● dedicated webpage<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● digital advertising |
| **Patient identification** | Lindus Health will be responsible for the active identification and recruitment of patients via the campaign materials detailed above. This will be centrally run by your Lindus Health Clinical Operations team. |
| **Medical records** | Patients will self-report their medical/medication history for the Study with no access to medical records requested by the Lindus Health study team. This information will be reviewed by the Investigator, along with the other screening assessments, to determine eligibility.<br>Validation of prior insomnia diagnoses and concurrent medications through medical records for the US-based pivotal study is not in scope. A change order will be required in the event Sponsor requires it. |
| **MEDICAL WRITING** | **MEDICAL WRITING** |
| **Protocol review** | Lindus Health will be responsible for reviewing and finalizing the full study protocol. |
| **CSR** | Lindus Health will be responsible for drafting the CSR. This will be based on FDA guidelines. One draft will be shared with Sponsor over a maximum [\*\*\*] time period before the document is finalized; Sponsor queries should be submitted in batches at these review timepoints. |
| **IRB & COMPETENT AUTHORITY** | **IRB & COMPETENT AUTHORITY** |
| **IRB submission** | Lindus Health will be responsible for submission and approval from the appropriate central IRB. Additional submissions will be treated as passthrough costs. |
| **Regulatory package and submission** | Lindus Health will be responsible for preparation of regulatory submission package documents, including maintenance and submission of registry listing. |

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| | |
|:---|:---|
| **CLINICAL and MEDICAL MONITORING** | **CLINICAL and MEDICAL MONITORING** |
| **Remote study monitoring** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Lindus Health will be responsible for the creation and execution of a centralized, study monitoring plan in line with ICH GCP and FDA guidelines.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● We assume all Study monitoring will be done remotely in line with FDA guidelines.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Scope does not include ad-hoc remote monitoring visits and will require a change order in the event Sponsor requires them. |
| **Medical monitoring** | Lindus Health will be responsible for medical monitoring and for the oversight of the safety and wellbeing of all Study patients. Monitoring, reporting and escalating any patient AEs and SAEs, in line with ICH GCP guidelines and the Study monitoring plan.<br>The Study protocol will define the type of safety events that need to be reported, which will have been agreed by Sponsor before the Study begins. The conditions for safety event collection will be based on a risk adapted approach. Each Study will use a Study specific Safety Management Plan (SMP), in conjunction with the Safety Reporting SOP. Tracking of safety events will be captured in the Citrus platform.<br>All AEs classified as Serious are recorded within 24 hours of becoming aware of the event, as an SAE in the EDC system. This includes an assessment of causality by a medically qualified doctor. We have assumed a 0% UADE rate. In case an SAE is required to be reported because it is a UADE, a change order will be required to account for reporting costs.<br>We have assumed there will be up to 4 unrelated SAEs within the trial. In the event that this is exceeded, there will be a change order.<br>Any unanticipated adverse device effect will be immediately evaluated and investigated within 5 working days after Sponsor makes that determination and within 15 working days after Sponsor first received notice of the effect if the effect presents an unreasonable risk to Study patients. |
| **Safety reporting** | Lindus Health will provide regular safety summary reports to Sponsor. |
| **Medical coding** | Lindus Health will manage the medical coding using MedDRA coding for Serious Adverse Events (to HLT), and Laboratory results and WHODrug coding for concomitant/prior medications at the deepest coding level (Chemical substance). All other coding (Adverse Event, Medical History, Study Procedures) can be done via high level protocol defined coding groups after discussions and alignment with Sponsor. |
| **LINDUS HEALTH VIRTUAL SITE** | **LINDUS HEALTH VIRTUAL SITE** |
| **Patient-facing Study staff** | Lindus' trained staff will conduct all screening, ID verification, training and tele-visits. We also provide patient concierge services for any questions or issues. Nexalin clinicians will be responsible for conducting Baseline Call alongside Lindus' virtual site staff. |
| **Device use metrics** | Lindus Health study team will not have access to app usage metrics to ensure participants complete the full session five days per week over the four-week intervention period. Sponsor's Study team will be responsible for reviewing these metrics and incorporating them into the final analysis. |
| **PATIENT PAYMENT** | **PATIENT PAYMENT** |
| **Management of patient stipend** | Lindus Health will manage and administer patient payments. |

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| | |
|:---|:---|
| **DEVICE LOGISTICS** | **DEVICE LOGISTICS** |
| **Device management** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lindus Health will manage our preferred partner responsible for device storage, distribution to patients, and return to Sponsor. We assumed the following:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Country of Study drug manufactured origin: USA<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Device will be manufactured and ready for Study at the time of Study initiation<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Receipt, storage and distribution will be under controlled room temperatures (CRT)<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● One (1) receipt of all devices to the logistics partner depot. <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Device arrives packaged, labeled, and ready for distribution.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● One (1) shipments per patient<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● One (1) return per patient |

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**APPENDIX B - PAYMENT TERMS, BUDGET, AND PAYMENT SCHEDULE** 

**1. INVOICE** 

● Lindus Health shall provide Sponsor an invoice for completed Services detailing fees and any Pass-Through Costs incurred as specified in the Payment Schedule. Invoices shall describe in detail the Services performed and expenses incurred for such Services and shall meet the requirements specified in Section 4 of the MSA. Sponsor shall submit payment to Lindus Health in full and cleared funds for all undisputed invoices within thirty (30) days following receipt of such invoices from Lindus Health. Sponsor shall pay all disputed invoices within thirty (30) days following resolution of such dispute by the parties.

● Where payment of any invoice relating to an SOW is not made in full on the due date, other than where Sponsor has notified Lindus Health in writing of Sponsor's good faith dispute of the invoice, Lindus Health reserves the right to charge interest on the outstanding amount (both before and after any judgment) at the rate of [\*\*\*]% above the base rate from time to time of Barclays Bank PLC from the due date until the outstanding amount is received by Lindus Health in full and cleared funds.

● Sponsor shall make all payments of the fees due to Lindus Health under the Lindus Health Agreement by electronic transfer into the bank account as specified in the SOW.

● Sponsor billing address for invoices: Nexalin Technology, 1776 Yorktown, Suite 550, Houston, TX 77056

● Invoices shall be sent to the following Sponsor's email address [\*\*\*], [\*\*\*]

● Invoices shall be sent to Sponsor containing the following information: P.O. Number, Study name and Ref. Number CLP004

**2. PAYMENT TERMS**

●  **<u>Study Retainer and Milestone Payments</u>:** 

● On execution of the SOW, Lindus Health will issue an invoice for the retainer fee which represents [\*\*\*]% of total fees. These will be credited back pro rata against the milestone invoices. Upon Study cancellation or closure, Lindus Health will refund Sponsor the balance of the payment that is on hand, less the price of any activities that are determined to be either fully or partially complete upon termination.

● Milestone payments will be invoiced and paid in accordance with and as outlined in the Payment Schedule table below. These payment amounts are fixed, based on the attached protocol and deliverables in this SOW.

●  **<u>Discount</u>:** Lindus Health has applied a discount of [\*\*\*]% to the core costs shown in this SOW.

●  **<u>Pass-through Costs</u>:** Estimated costs incurred by a third-party vendor, passed on to Sponsor. All pass-through costs are estimates, and may increase in accordance with the MSA. Lindus Health will invoice Sponsor for Pass-through Costs on a monthly basis, as costs are incurred. The final Pass-through Cost invoice will be issued once all third-party invoices have been received. Invoices will be combined where possible.

●  **<u>Third-party Vendors Management Fees</u>:** A [\*\*\*]% management fee for the administrative services related to the handling, oversight, and coordination of the third-party vendors will be invoiced monthly, as costs are incurred, based on the total value of the passthrough for that month.

●  **<u>Inflation</u>:** Inflation will be applied to all invoices following the first 12 month period of the Study duration, at a rate of [\*\*\*]% per annum. However, if the Consumer Price Index (CPI), calculated by the U.S. Bureau of Labor Statistics, increases or decreases by more than [\*\*\*]% of the estimated value for a consecutive [\*\*\*] period, the CPI calculated for that month will be applied to the estimated inflation rate. The Parties recognize that services may be provided by third parties (listed below) and invoiced in local currency. Prices are based on the exchange rates published on the date of Contract signature. If exchange rates fluctuate by [\*\*\*]% during the course of the Study, Lindus Health has the right to update pricing accordingly, and upon agreement by both parties.

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●  **<u>Delays/Hold</u>:** The cost estimate provided in this SOW assumes that there are no changes to Project TImelines (referenced herein) as a result of Sponsor delay. Sponsor delays include but are not limited to:

i. Delays to reviewing and approving key documentation (reasonable timeframe for reviewing will of course be given)

ii. Pausing of project

iii. Delays to any of Sponsor responsibilities as laid out in the full Division of Responsibilities

iv. Delays to provision of Study device

v. Delays to Study timelines

vi. Recruitment delays attributable to clinician unavailability

If Sponsor activity results in the extension of these timelines an additional cost of $[\*\*\*] per week of delay will be billed, to cover the cost of maintaining the project team in place.

If a delay lasts more than [\*\*\*], the Parties shall cooperate in good faith to conduct a review of this SOW and determine if any Changes are required to the Services or budget.

●  **<u>Value Added Tax</u>:** Where applicable, VAT or an equivalent sales tax shall be added to any amount stated in this SOW in accordance with Section 4.5 of the MSA.

●  **<u>Contract Currency</u>:** All amounts due under this SOW will be billed in USD (Pivotal study).

**3. STUDY BUDGET AND PAYMENT SCHEDULE** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Deliverable** | **Unit Type** | **No. Units** | **Unit Price** | **Total Price** | **Description** |
| **Study Management** | | | | **$**[\*\*\*] | |
| Study Management:<br> Protocol Development | Per month | 1 | $[\*\*\*] | $[\*\*\*] | Project oversight and beginning work on start up tasks as protocol is being developed |
| Study Management:<br> Start-up | Per month | 3 | $[\*\*\*] | $[\*\*\*] | Create and maintain the Project Plan, set-up and manage vendors, manage staff and coordinate deliverables, work with investigators as required, identify, escalate, and mitigate project issues |
| Study Management:<br> Enrollment | Per month | 5 | $[\*\*\*] | $[\*\*\*] | Project management admin oversight during the enrollment months. Includes dedicated trial manager support throughout the duration of the trial, and support from Lindus Health's medical, clinical operations teams, and key metrics reports. |
| Study Management:<br> Conduct | Per month | 2 | $[\*\*\*] | $[\*\*\*] | Project management admin oversight during the conduct months. Includes dedicated trial manager support throughout the duration of the trial, and support from Lindus Health's medical, clinical operations teams, and key metrics reports. |

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| | | | | |
|:---|:---|:---|:---|:---|
| Study Management:<br> Close-out | Per month | 4 | $[\*\*\*] | Includes end of study communication, database lock, admin oversight, and reconcile study finances. |
| Study Team Training | Per study | 1 | $[\*\*\*] | Includes as many ongoing training meetings as required |
| **Clinical Operations** |  |  | **$**[\*\*\*] |  |
| Informed Consent | Per form | 1 | $[\*\*\*] | Includes ICF development; site and local ethics-specific revisions; and translations, as required. Includes clinical and medical support and reviews. |
| Initial IRB Submissions | Per site | 1 | $[\*\*\*] |  |
| Annual IRB/Ethics Submissions | Per site per year | 2 | $[\*\*\*] |  |
| Site Management | Per site | 1 | $[\*\*\*] | Includes contact with study sites on a periodic basis to manage the general study progress and maintain essential documents. |
| **Patient Recruitment** |  |  | **$**[\*\*\*] |  |
| Recruitment initiation | Per study | 1 | $[\*\*\*] | Detailed Strategy Development, Mapping Participant Experience Mapping, flow and logic, Nurture stream development, Development of All creative materials required for the campaign, including outreach materials, build of study-specific Trial Landing Page, and digital pre-screener, Launch recruitment channels and protocol specific segmentation |
| Recruitment monthly platform fee | Per month | 5 | $[\*\*\*] | Management of Campaigns and Relationships during the enrollment period |
| Pre-screening | Per screened patient | 291 | $[\*\*\*] | Call centre services for more in-depth pre-screening after participants are deemed preliminary eligible on TLP |
| **Lindus Health Virtual Site** | **Lindus Health Virtual Site** | **Lindus Health Virtual Site** | **$**[\*\*\*] |  |
| Virtual Site Activities | Per enrolled patient | 160 | $[\*\*\*] | Includes all screening and study visits with Lindus Health's virtual site team |
| **Clinical Study Monitoring** | **Clinical Study Monitoring** | **Clinical Study Monitoring** | **$**[\*\*\*] |  |
| Central Monitoring - Off-Site | Per month | 7 | $[\*\*\*] |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Medical Monitoring** | **Medical Monitoring** | **Medical Monitoring** | **$**[\*\*\*] | |
| Medical Management Plan (MMP) | Per plan | 1 | $[\*\*\*] |  |
| Medical Monitoring Project Management | per month | 7 | $[\*\*\*] | Assumes 2, 1-hour meetings per week (internal / external) + overhead / oversight time |
| Site Interaction | Per screened patient | 291 | $[\*\*\*] | Assist sites with patient inclusion and exclusion criteria and protocol clarifications and deviations. |
| Medical Review of Study Setup Activities | Per study | 1 | $[\*\*\*] | Includes CRF and edit checks (6 hrs), MoH and local ethics/IRB submissions (2 hrs), SAP (2 hrs) |
| Review Patient Listings | Per patient | 160 | $[\*\*\*] | Review of incremental safety listings. |
| **Safety** | **Safety** | **Safety** | $[\*\*\*] |  |
| Safety Management Plan (SMP) | Per plan | 1 | $[\*\*\*] |  |
| Safety Database Set-up | Per database | 1 | $[\*\*\*] |  |
| Safety Management | Per month | 7 | $[\*\*\*] | Includes maintenance of the SMP, safety database, and general oversight. |
| SAE Handling | Per SAE | 4 | $[\*\*\*] |  |
| SAE Assessment (Causality, Seriousness, and Expectedness) | Per SAE | 4 | $[\*\*\*] |  |
| Entry of SAE in Safety Database | Per SAE | 4 | $[\*\*\*] |  |
| Patient Narrative Development | Per SAE | 4 | $[\*\*\*] |  |
| Analysis of Similar Events | Per SAE | 4 | $[\*\*\*] |  |
| SAE Query Management | Per SAE | 4 | $[\*\*\*] |  |
| SAE Reconciliation | Per SAE | 4 | $[\*\*\*] |  |
| Safety Letter Production & Distribution to Sites, Central Ethics Committees, and IRBs | Per submission | 4 | $[\*\*\*] |  |
| Final Safety Report | Per report | 1 | $[\*\*\*] |  |

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---

| | | | | |
|:---|:---|:---|:---|:---|
| **Citrus Platform Build, Maintenance and Close out** | **Citrus Platform Build, Maintenance and Close out** | **Citrus Platform Build, Maintenance and Close out** | $[\*\*\*] |  |
| Create Data Management Plan (DMP) | Per DMP | 1 | $[\*\*\*] |  |
| Citrus Platform Build, Maintenance and Close out | Study | 1 | $[\*\*\*] |  |
| Schedule of Activities Development (Visits, CRF, and ePRO) | Per Visit\* Arm | 22 | $[\*\*\*] | Includes Schedule of activities for 11 CRF and 16 ePROS. |
| ePRO development | Per ePRO | 16 | $[\*\*\*] |  |
| CRF Development | Per CRF | 11 | $[\*\*\*] |  |
| CRF/ePRO Licensing Management | Per CRF/ePRO | 5 | $[\*\*\*] |  |
| Pre-Screener Development | Per study | 1 | $[\*\*\*] |  |
| Randomization Setup | Per study | 1 | $[\*\*\*] |  |
| Demo Build | Per study | 1 | $[\*\*\*] |  |
| UAT Preparation and Oversight | Study | 1 | $[\*\*\*] | Lindus will transfer and provide all study documentation in adequate form for archiving. Includes preparation and oversight for both Visits and CRFs & ePRO. |
| Citrus Support Help Desk | Per month | 7 | $[\*\*\*] |  |
| Citrus Platform Fee | Per month | 7 | $[\*\*\*] |  |
| **Data Management** | **Data Management** | **Data Management** | $[\*\*\*] |  |
| Data Project Management | per month | 14 | $[\*\*\*] | Assumes 2, 1-hour meetings per week (internal / external) + overhead / oversight time |
| Interim Analysis | Per interim analysis | 1 | $[\*\*\*] |  |
| Data Review and Cleaning | Per query / DCF | 668 | $[\*\*\*] | Query Generation: Automatically generate queries (often in the form of DCFs) for discrepancies or data outliers that don't pass validation checks.<br> Query Management: Manage and track queries (DCF) through resolution, ensuring timely response and documentation of all changes.<br> Data Cleaning: Perform systematic cleaning of the data, resolving discrepancies and ensuring consistency across all data points. |
| Data Transfer | Per transfer | 1 | $[\*\*\*] |  |
| Database Lock | Per hard lock | 1 | $[\*\*\*] |  |
| Database Archiving | Per archive | 1 | $[\*\*\*] | Lindus will transfer and provide all study documentation in adequate form for archiving |

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---

| | | | | |
|:---|:---|:---|:---|:---|
| **Biostatistics** |  |  | $[\*\*\*] |  |
| Statistical Analysis Plan (SAP) Development | Per SAP | 1 | $[\*\*\*] |  |
| Statistical Analysis Plan (SAP) Review | Per SAP | 1 | $[\*\*\*] |  |
| Generation and QC of Tables, Figures and Listings | Default TLF number | 40 | $[\*\*\*] | Assumes 40 TLFs. Additional TLF's will be billed as incurred at $[\*\*\*] each. |
| Other Biostatistics Output (e.g. Interim Analysis, Follow-up Analysis, or Blinded Data Review) | Per Output | 1 | $[\*\*\*] |  |
| **Medical Writing** |  |  | $[\*\*\*] |  |
| Protocol Review & Feedback | Per protocol | 1 | $[\*\*\*] |  |
| Clinical Study Report (CSR) | Per report | 1 | $[\*\*\*] | This assumes a maximum of 40 TLFs and 1 Draft. Subsequent work will be billed $[\*\*\*]. |
| **Vendor Management** |  |  | $[\*\*\*] |  |
| Vendor Management | 5% of Vendor Pass Through | 1 | $[\*\*\*] | Work to select, qualify, onboard and manage vendors, and manage issue and reconcile all invoices and payments |
| **Project Meetings** |  |  | $[\*\*\*] |  |
| Study Kick-Off Meeting | Per study | 1 | $[\*\*\*] |  |
| Investigator Meeting Coordination | Per meeting | 0 | $[\*\*\*] |  |
| Teleconfences | Per week | 54 | $[\*\*\*] | Assumed 1 teleconference per week involving relevant study members. |
| **Total Direct Fees** |  |  | **$944820** |  |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| **PASSTHROUGH EXPENSES** | **PASSTHROUGH EXPENSES** | **PASSTHROUGH EXPENSES** | | |
| IRB submission | Per site | 1 | $[\*\*\*] |  |
| eTMF | Per study | 1 | $[\*\*\*] |  |
| IRT System | Per study | 1 | $[\*\*\*] | Sealed Envelope |
| Patient Payment | Per patient | 160 | $[\*\*\*] |  |
| Patient Payment Handling (Virtual Incentives) | Per study | 1 | $[\*\*\*] |  |
| US Courier - Ground Shipping | Per shipment | 160 | $[\*\*\*] |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| eConsent | Per site | 1 | $[\*\*\*] |  |
| SiteLink (eISF) | Per site | 1 | $[\*\*\*] |  |
| Asynchronous ID verification | Per pre-screened participant | 294 | $[\*\*\*] |  |
| Digital Advertising Costs | Per enrolled participant | 1 | $[\*\*\*] | Per unit quantity. Estimated passthrough cost for digital advertising per participant enrolled. |
| Insomnia Severity Index (ISI) Licensing Fee | Per study | 1 | $[\*\*\*] | ISI administration fee = €[\*\*\*]<br> MAPI service fees = €[\*\*\*] |
| Pittsburgh Sleep Quality Index (PSQI) Licensing Fee | Per study | 1 | $[\*\*\*] | Licensing fee |
| SF-36 Licensing Fee | Per study | 1 | $[\*\*\*] | Licensing fee for 3 timepoints per pt, licensing [\*\*\*] administrations (rounding up to nearest 100) |
| **TOTAL PASSTHROUGH EXPENSE** | **TOTAL PASSTHROUGH EXPENSE** |  | **$186327** |  |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| **Payment Schedule** | | | | |
| **Fee Description** | **Driver** | **Total (USD)** | **Schedule** | **Date** |
| Start Up Agreement | SUA funds already invoiced | $[\*\*\*] |  |  |
| **Fee Description** | **Driver** |  | **Schedule** |  |
| Milestone 1: Contract Execution | [\*\*\*] | $[\*\*\*] | At Contract Execution | 10-Apr-26 |
| Milestone 2: Ethics Submission | [\*\*\*] | $[\*\*\*] | After IRB/Regulatory Submission | Beginning [\*\*\*] |
| Milestone 3: First Patient In | [\*\*\*] | $[\*\*\*] | After First Patient In | [\*\*\*] |
| Milestone 4: 25% Enrolment | [\*\*\*] | $[\*\*\*] | After 25% of Patients Enrolled | [\*\*\*] |
| Milestone 5: 50% Enrolment | [\*\*\*] | $[\*\*\*] | After 50% of Patients Enrolled | [\*\*\*] |
| Milestone 6: Last Patient In | [\*\*\*] | $[\*\*\*] | After Last Patient In | [\*\*\*] |
| Milestone 7: Database Lock | [\*\*\*] | $[\*\*\*] | After Database Lock | [\*\*\*] |
| Vendor Oversight Management | [\*\*\*] | $[\*\*\*] |  | Beginning 10-Apr-2026 |
| Passthrough Expenses | [\*\*\*] | $[\*\*\*] |  | Beginning 10-Apr-2026 |
| Medical Coding | [\*\*\*] | $[\*\*\*] |  | Beginning [\*\*\*] |
| **TOTAL (Excluding SUA cost)** | **TOTAL (Excluding SUA cost)** | **$1109852** |  |  |
| *All costs are fixed unless noted as 'per unit quantity'. Lindus Health reserves the right to issue a change order if quantities of fixed cost items deviate substantially from the assumed quantities in this budget. Any line items scheduled as 'per additional' are as needed and not included in the total cost.* | *All costs are fixed unless noted as 'per unit quantity'. Lindus Health reserves the right to issue a change order if quantities of fixed cost items deviate substantially from the assumed quantities in this budget. Any line items scheduled as 'per additional' are as needed and not included in the total cost.* | *All costs are fixed unless noted as 'per unit quantity'. Lindus Health reserves the right to issue a change order if quantities of fixed cost items deviate substantially from the assumed quantities in this budget. Any line items scheduled as 'per additional' are as needed and not included in the total cost.* | *All costs are fixed unless noted as 'per unit quantity'. Lindus Health reserves the right to issue a change order if quantities of fixed cost items deviate substantially from the assumed quantities in this budget. Any line items scheduled as 'per additional' are as needed and not included in the total cost.* | *All costs are fixed unless noted as 'per unit quantity'. Lindus Health reserves the right to issue a change order if quantities of fixed cost items deviate substantially from the assumed quantities in this budget. Any line items scheduled as 'per additional' are as needed and not included in the total cost.* |

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**APPENDIX C - ABBREVIATED PROJECT ROLES AND RESPONSIBILITIES** 

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**APPENDIX D - QUALITY AGREEMENT**

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO<br> SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

**(18 U.S.C. SECTION 1350)**

I, Mark White, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Nexalin Technology, Inc.:

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: May 8, 2026 | **Nexalin Technology, Inc.** | **Nexalin Technology, Inc.** |
|  | By: | /s/ Mark White |
|  |  | Mark White |
|  |  | Chief Executive Officer |
|  |  | Principal Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO<br> SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

**(18 U.S.C. SECTION 1350)**

I, Justin Van Fleet, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Nexalin Technology, Inc.:

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: May 8, 2026 | **Nexalin Technology, Inc.** | **Nexalin Technology, Inc.** |
|  | By: | /s/ Justin Van Fleet |
|  |  | Justin Van Fleet |
|  |  | Chief Financial Officer |
|  |  | Principal Accounting Officer |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATIONS OF THE PRINCIPAL EXECUTIVE OFFICER**

**PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED**

**PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Mark White, the Chief Executive Officer (Principal Executive Officer) of Nexalin Technology, Inc., (the "Company"), hereby certify, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;1. The Quarterly Report on Form 10-Q for the period ended March 31, 2026 (the "Report") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: May 8, 2026 | **Nexalin Technology, Inc.** | **Nexalin Technology, Inc.** |
|  | By: | /s/ Mark White |
|  |  | Mark White |
|  |  | Chief Executive Officer |
|  |  | Principal Executive Officer |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATIONS OF THE PRINCIPAL FINANCIAL OFFICER**

**PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED**

**PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Justin Van Fleet, the Chief Financial Officer (Principal Financial Officer) of Nexalin Technology, Inc., (the "Company"), hereby certify, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;1. The Quarterly Report on Form 10-Q for the period ended March 31, 2026 (the "Report") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: May 8, 2026 | **Nexalin Technology, Inc.** | **Nexalin Technology, Inc.** |
|  | By: | /s/ Justin Van Fleet |
|  |  | Justin Van Fleet |
|  |  | Chief Financial Officer |
|  |  | Principal Accounting Officer |

---