NeurAxis Reports Fourth Quarter and Fiscal Year 2023 Financial Results Carmel, Ind.

Reports Fourth Quarter and Fiscal Year 2023 Financial Results

Ind., April 9, 2024 (GLOBE NEWSWIRE)-NeurAxis, Inc. ("NeurAxis," or the "Company")

(NYSE American: NRXS), a medical technology company commercializing neuromodulation therapies for chronic and debilitating conditions

in children and adults, today announced results for the fourth quarter and fiscal year 2023 for the period ended December 31, 2023.

Operational Highlights

Carrico, Chief Executive Officer of NeurAxis, commented, "I am excited and pleased with the progress we have made throughout the

last year executing our philosophy that the publication of strong data will result in strong insurance medical policy coverage, which

will drive strong future revenue growth. Recently, we expanded our portfolio of publications on our proprietary neuromodulation

therapies, which have led to early insurance medical policy coverage from major insurance plans nationally.

To date, PENFS is covered for more than 16 million lives in the U.S. by multiple health insurers, an improvement from just 4 million

lives a year ago. I believe we are on track to achieve our stated goal of having medical policy coverage for at least 50 million lives

by the end of 2024, which will set the stage for a significant revenue ramp for our initial pediatric indication for FAP/IBS."

driving adoption of our IB-Stim technology for FAP/IBS, we remain on track to expand the number of indications for IB-Stim in the years

to come with further pediatric and adult clinical studies in place with expected FDA submissions over the next three years. Furthermore,

we remain excited about the commercial opportunity for our recently licensed innovative rectal expulsion device, or RED, a self-inflating

balloon expulsion test that allows for point-of-care testing to effectively identify patients with an evacuation disorder, such as constipation.

We expect the device, which has the potential to be a significant near-term revenue driver for the company, to become commercialized

in 2024," Mr. Carrico continued.

Adrian Miranda, Chief Medical Officer of NeurAxis, commented, "I

am proud of the depth and breadth of the 14 studies that we have published, which include 10 different types of research such as placebo,

long-term data, health-economic data, quality of life data, and real-world registry data. In recent months, we have announced results

for multiple studies, including our retrospective comparative study led by the University of Cincinnati and investigators at Children's

Hospital of Orange County. We are pleased with the outcomes of our studies, which have been conducted by renowned institutions, and remain

steadfast in leveraging our research publications to expand written policy coverage."

Carrico concluded, "I am excited about the opportunities we have in 2024 to further commercialize our lead pediatric indication

for IB-Stim, while advancing our development pipeline for a number of new indications leveraging our unique neuromodulation

therapy. I anticipate growth in 2024 to be driven by our expanding insurance coverage, and the commercialization of RED. With a strengthened

balance sheet through a key investment from Inspire Health Alliance and long-term investors who understand

the medical space well, I believe we are well positioned to execute our business plan in 2024."

Quarter and Fiscal Year 2023 Financial Results

in fiscal year 2023 of $2.5 million was down 8.4% compared to $2.7 million in fiscal year 2022. The decrease was primarily due to fewer

shipments to certain customers as they manage through the insurance reimbursement process. While we have made great strides in recent

months in gaining coverage, note that there is a lag between insurance coverage and order placement due to billing and coding implementation

processes unique to each of our customers. Given our recent success with new payor coverage, we expect our revenue to increase in late

quarter revenue in 2023 of $531.5 thousand was down 13.3% compared to $613.1 thousand for the same period in 2022. While revenue was

down in the quarter, we had more account accounts ordering from us and we had more patients coming to us via our Guidance and Patient

Services (GPS) assistance program.

profit margin in fiscal year 2023 was 87.7%, compared to 88.9% in fiscal year 2022. The change in gross margin was primarily due to growth

in our patient assistance program that provides discounts to patients without insurance coverage. Gross profit margin in the fourth quarter

of 2023 was 86.4%, compared to 87.7% for the same period in 2022.

expenses for fiscal year 2023 were $323.6 thousand, a decrease of 21.3% compared to $410.9 thousand for fiscal year 2022. The decrease

was primarily due to lower commission costs, with the commission rate being lowered at the beginning of 2023, and lower revenue. Selling

expenses for the fourth quarter of 2023 were $72.6 thousand, an increase of 10.1% compared to $66.0 thousand for the fourth quarter of

and development (R&D) costs for fiscal year 2023 were $169.3 thousand, a decrease of 25.0% compared to $225.6 thousand for fiscal

year 2022. The decrease was primarily due to the initiation, payment and expense of more patient trials in fiscal year 2022 as the Company

prepared for more FDA submissions. These trials continued into fiscal year 2023.

and administrative (G&A) costs for fiscal year 2023 were $8.3 million, an increase of 62.6% compared to $5.1 million for fiscal year

2022. Increased costs were primarily due to incremental headcount to build out market access and patient assistance teams including recruiting

costs, as well as higher insurance, investor relations and board of director costs post-IPO, one-time advisory costs and higher advertising

costs in order to expand market awareness. G&A costs for the fourth quarter of 2023 were $2.0 million, an increase of 46.1%, compared

to $1.4 million for the fourth quarter of 2022. The increase was primarily due to higher wages, higher public company expenses such as

insurance and board fees post-IPO and professional services as the Company obtains market access.

net loss in fiscal year 2023 expanded to $14.6 million, versus $4.8 million in fiscal year 2022 primarily due to non-cash charges taken

on debt conversion upon the IPO, including $4.9 million in amortization of the debt discount and deferred issuance costs and a $3.6 million

charge taken on the extinguishment of debt, and higher G&A costs. The net loss in the fourth quarter of 2023 was $5.3 million due

to higher G&A costs, significantly lower non-cash changes in the fair value of warrants and derivative financial instruments as they

were either exercised or converted upon the IPO and the extinguishment of debt.

on hand at December 31, 2023 was $78.6 thousand. Cash used by operations of $6.7 million was substantially less than our net loss of

$14.6 million for the same period primarily due to the $4.9 million non-cash debt discount charge upon conversion at the IPO and the

$3.6 million non-cash debt extinguishment charge. Although the Company had no long-term debt as of December 31, 2023, $6.1 million in

convertible note financing has been secured with $1.5 million funded as of March 31, 2023.

of Third Quarter 2023 Financial Results

Company filed a Current Report on Form 8-K today regarding a restatement of the Company's financial statements as of and for the

three and nine month periods ended September 30, 2023 that will be included in the Company's Annual Report on Form 10-K as of and

for the year ended December 31, 2023. The restatement will result, among other items, in a $3.7 million increase to the Company's

net loss and a $3.7 million increase to additional paid in capital as of and for the three and nine month periods ended September 30,

2023 and is unrelated to revenues or cash expenses. The Company's cash position as of September 30, 2023 did not change.

and Time: Tuesday, April 9, 2024, at 4:30pm ET

Webcast Information: Interested parties can access the conference call via a live webcast, which is available in the Investor Relations

section of the Company's website at https://edge.media-server.com/mmc/p/mir4a7uc or https://ir.neuraxis.com/. For

participants listening through the webcast, questions can be sent in through the portal using the "Ask a Question" link or

by emailing questions to NRXS@lythampartners.com.

Information: Interested parties can also access the live conference call by initially registering at the following link. Upon

completion of the registration link, call-in participants will receive the dial-in info and a unique PIN to join the call as well as

an email confirmation with the details.

A webcast replay will be available in the Investor Relations section of the Company's website at https://edge.media-server.com/mmc/p/mir4a7uc

or https://ir.neuraxis.com/.

Inc., is a medical technology company focused on neuromodulation therapies to address chronic and debilitating conditions in children

and adults. NeurAxis is dedicated to advancing science and leveraging evidence-based medicine to drive adoption of its IB-Stim

therapy, which is its proprietary Percutaneous Electrical Nerve Field Stimulation (PENFS) technology, by the medical, scientific, and

patient communities. IB-Stim is FDA cleared for functional abdominal pain associated with irritable bowel syndrome (IBS) in adolescents

11-18 years old. Additional clinical trials of PENFS in multiple pediatric and adult conditions with large unmet healthcare needs are

underway. For more information, please visit http://neuraxis.com.

statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended,

and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking

statements. Forward-looking statements are based on management's current assumptions and expectations of future events and trends,

which affect or may affect the Company's business, strategy, operations or financial performance, and actual results and other

events may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking

statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. There are a number of

important factors that could cause actual results, developments, business decisions or other events to differ materially from those contemplated

by the forward-looking statements in this press release. These factors include, among other things, the conditions in the U.S. and global

economy, the trading price and volatility of the Company's stock, public health issues or other events, the Company's compliance

with applicable laws, the results of the Company's clinical trials and perceptions thereof, the results of submissions to the FDA,

the results of the shareholder vote to enable the issuance of the Preferred Stock, and factors described in the Risk Factors section

of NeurAxis's public filings with the Securities and Exchange Commission (SEC). Because forward-looking statements are inherently

subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. These forward-looking