NeurAxis, Inc. Q3 FY2025 earnings call

• Commercial execution and reimbursement progress: Strategy is to expand access via medical policy coverage and accelerate IV Stem utilization ahead of 01/01/2026 category one CPT code. Priority is securing medical policy coverage, with internal prior authorization team expanding. Payers are in active dialogue, and a coalition is mobilized for advocacy.
• IV Stem key elements: Insurance coverage for access and physician RVU compensation for adoption. Roughly 55 million covered lives with positive payer momentum. Commercial readiness for 2026 includes targeting children's hospitals, education/outreach, and working on adult IV Stem via trial, federal supply schedule, and limited market release.
• FDA indication expansion: IV Stem had indication expansion to functional abdominal pain associated with IBS and functional dyspepsia with associated nausea symptoms in the adult population, and label expansion for IV Stem to include 18 - 21 years old with more devices per patient. RED allows earlier, more targeted treatment for chronic constipation patients, but new CPT code impact is pending.

For IV Stem: In 2025, revenues were $811,000, up 22% compared to $677,000 in 2024. Unit deliveries increased approximately 38% due to volume growth from patients in the financial assistance program. Revenue contribution is significant as it's the main focus. For RED: It had a soft launch in 2025, but being a new technology means practice flow and physician habit changes are needed, and its revenue ramp depends on understanding CPT code reimbursement.

• Expect revenue growth to continue in the fourth quarter prior to the effective date of the new category one CPT code due to strong demand. Anticipate gross margin to recover in 2026 with the new category one CPT code as discounted device sales transition to full reimbursement. Aim for cash flow breakeven as adoption accelerates in 2026.

• Policy changes and prior authorization improvements may unfold gradually, not overnight. For adult IV Stem, medical policy coverage may not be immediate as it was based on extrapolation of adolescent data. RED's revenue ramp is affected by practice flow and physician habit changes, and the impact of the new CPT code is uncertain until clarified.

Q: How are you tracking success and incentivizing your team ahead of volume inflection next year?

A: The commercial sales force is strong, highly incentivized with a commission structure. They prioritize areas with good insurance policy coverage and accounts that have ordered previously. The team's internal forecast is within $50,000 of the 2025 revenue.

Q: Any update on engagement with payers?

A: Payers are responsive, we believe in our comprehensive approach with them, but details of specific interactions are not disclosed publicly.

Q: How do you see the revenue ramp for RED in the early innings?

A: RED changes physician practice habits and flow, taking longer to scale. We're waiting on CPT code reimbursement details, and focus is on IV Stem in children's hospitals for now.