NeurAxis, Inc. Q2 FY2025 earnings call

• Achieved critical milestones in Q2 including FDA indication expansion to functional dyspepsia with nausea symptoms in children 8-21, publication of NASPGHAN academic society guidelines, and assignment of Category I CPT code.
• Revenue growth has accelerated in recent quarters, but insurance barriers still leave significant dollars on the table.
• #1 priority is securing medical policy coverage, with about 53 million covered lives reached for IB-Stim.
• Category I CPT code becomes effective January 1, 2026, bringing RVUs and improved reimbursement transparency.
• RED is in soft launch, learning about workflow and reimbursement to prepare for hard launch.

For IB-Stim, revenue in the second quarter of 2025 was $894,000, which is a 46% increase compared to the second quarter of 2024. This growth is driven by factors such as volume from patients with health insurance coverage and the company's financial assistance program. RED is still in the soft launch phase but is getting closer to a hard launch commercial effort. The absolute revenue for IB-Stim in Q2 2025 is $894,000, and RED's revenue is from its soft launch phase with ongoing learning about workflow and reimbursement.

• Expect revenue growth to accelerate meaningfully with continued increase in payer medical policy coverage and the new CPT code becoming effective.
• Goal is to reach cash flow breakeven based on catalysts of policy coverage and CPT code.
• Anticipate gross margin to recover next year as devices sold at discount transition to full revenue with insurance coverage.

• Insurance coverage barrier causing significant dollars to be left on the table.
• Prior authorization challenges with about 70% of patients getting a 'no authorization required' response, limiting treatment access.
• Potential delays in payers writing medical policy coverage or implementing interim reviews as expected.

Q: Could you share perceptions from larger insurance plans post guideline publishing?

A: Have received responses from all 12 key payers, with some showing faster responsiveness and likelihood of coverage in fall. Responsiveness has been favorable with no negative feedback.

Q: Talk about devices being paid for today, mostly cash pay?

A: 70% of patients have 'no authorization required', 30% remaining have 50-50 chance of full approval vs patient assistance program, with average selling price 65% below list price for patients via financial assistance.

Q: Speak about leveraging investments for functional dyspepsia indication?

A: Same sales force, same children's hospital call point, same physicians as for IBS, and same Category I CPT code. Functional dyspepsia is covered in many policies, nearly doubling market opportunity.

Q: Talk about current cash balance and outlook?

A: Cash on hand as of June 30, 2025, was $6 million. Raised $5 million in Q2 via equity financing and $1 million via warrant exercise. Liquidity should last into first half of 2026, with potential extension based on coverage and expense leverage.