NeuroOne Medical Swings to $1.44M Loss in Q1 2026 as Revenue Falls 12%

NeuroOne Medical Technologies Corporation reported a net loss of $1.44 million for the three months ended December 31, 2025, a sharp reversal from net income of $1.79 million in the same quarter a year earlier. The medical technology company posted diluted loss per share of $0.03, compared to earnings of $0.06 per share in the prior-year period. Read more earnings reports.

Revenue fell 12% to $2.89 million from $3.27 million in the quarter ended December 31, 2024. Cost of revenue declined slightly to $1.32 million from $1.35 million, bringing gross profit to $1.57 million, down from $1.93 million a year earlier. Gross margin compressed to 54% from 59%.

Operating expenses climbed to $3.28 million from $3.22 million in the prior-year quarter. Research and development spending rose 19% to $1.39 million from $1.17 million, while selling, general and administrative expenses decreased 8% to $1.89 million from $2.04 million. The company posted an operating loss of $1.71 million, compared to operating income of $1.71 million a year earlier.

Cash and cash equivalents stood at $3.56 million as of December 31, 2025, down from $6.57 million at September 30, 2025. The company burned $3.12 million in operating activities during the quarter, a marked deterioration from $208,049 in cash generated from operations in the same period last year.

Total assets declined to $8.58 million at quarter-end from $10.79 million three months earlier. Accounts receivable more than doubled to $2.66 million from $1.26 million, while inventory fell to $1.67 million from $2.23 million. Property, plant and equipment decreased slightly to $244,906 from $259,222.

Total liabilities dropped to $2.18 million from $3.71 million at the end of the prior quarter. Accounts payable fell to $552,332 from $1.01 million, and accrued liabilities declined to $706,112 from $1.29 million. Stockholders' equity stood at $6.40 million, down from $7.07 million three months prior.

The company had 50.4 million shares outstanding as of December 31, 2025, up from 50.0 million at the end of the prior quarter. Financing activities generated $147,823 during the quarter, compared to a use of $509,325 a year earlier.