Nexalis Therapeutics reported a widening loss of $1.83 million for 2025, reflecting increased investment in product development and marketing. Despite the loss, the company boosted its cash reserves through equity raises and borrowings.
- Loss after tax increased to $1.83 million in 2025
- Net tangible assets per share declined to negative 49 cents
- Cash balance rose to $436,900 supported by equity and borrowings
- Significant rise in product development and marketing expenses
- No dividends declared for the second consecutive year
Financial Performance Overview
Nexalis Therapeutics Ltd, formerly known as InhaleRx Limited, has released its preliminary final report for the year ended 31 December 2025, revealing a net loss of $1.83 million. This represents a 51% increase compared to the $1.21 million loss recorded in 2024. The company remains in a net liability position, with total liabilities of $2.38 million exceeding total assets of $1.21 million.
Rising Costs and Investment Focus
The increased loss is largely attributed to higher expenses in product development and marketing, which more than doubled compared to the previous year. Product development expenditure surged to $1.76 million, underscoring Nexalis’s commitment to advancing its therapeutic pipeline. Marketing expenses also rose significantly, reflecting efforts to build market presence and awareness.
Other operational costs, including consulting and corporate expenses, also increased, contributing to the overall financial pressure. Despite these outflows, the company generated higher other income, including R&D tax rebates, which rose to $762,000.
Capital Structure and Cash Position
On the capital front, Nexalis strengthened its cash position to $436,900 by year-end, up from $194,915 in 2024. This improvement was supported by equity raises totaling approximately $622,000 and borrowings of $401,000. The company issued shares to settle CEO and director fees, reflecting ongoing efforts to manage cash flow prudently.
Operating cash outflows widened to $888,000, indicating increased cash burn consistent with the company’s growth and development activities. No dividends were declared or paid during the year, maintaining a focus on reinvestment rather than shareholder returns.
Outlook and Market Implications
While the unaudited results highlight the financial challenges Nexalis faces, the increased investment in product development could position the company for future growth if clinical or commercial milestones are achieved. Investors will be watching closely for audited financials and any operational updates that clarify the path forward.
The company’s net tangible asset deficit, now at 49 cents per share, signals ongoing capital needs and potential dilution risks. However, the recent equity injections demonstrate shareholder support and a willingness to fund the company’s strategic objectives.
Bottom Line?
Nexalis’s rising losses and cash burn underscore the critical need for operational progress and funding clarity in 2026.
Questions in the middle?
- What are the key milestones Nexalis aims to achieve with its increased product development spend?
- How will the company manage its net liability position and potential dilution risks going forward?
- When can investors expect audited financial statements and updated guidance?