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Nexalin Announces Pivotal HALO™ Clarity Trial to Support Planned De Novo FDA Submission Targeting Multi-Billion-Dollar Insomnia Market

(Neutral)

Nexalin (Nasdaq: NXL) announced a planned pivotal, randomized, triple-blinded, sham-controlled 150‑participant trial of HALO™ Clarity for moderate-to-severe insomnia to support a planned de novo submission to the U.S. FDA. The fully decentralized study uses Nexalin’s NeuroCare virtual clinic and EDC, runs four weeks of treatment plus four weeks follow-up, and is conducted with Lindus Health.

The program builds on a prior 120‑participant randomized, double‑blind, placebo‑controlled study published in the Journal of Psychiatric Research and on Nexalin’s Gen‑2 15 mA device regulatory approvals internationally.

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Positive

  • Planned pivotal 150‑patient trial to support FDA de novo submission
  • Fully decentralized design via NeuroCare virtual clinic expands patient access
  • Builds on a published 120‑participant randomized, double‑blind insomnia study
  • Gen‑2 15 mA device holds international regulatory approvals for insomnia

Negative

  • No U.S. FDA clearance yet; de novo submission is planned but not granted
  • Pivotal trial is planned and not yet executed or completed

News Market Reaction – NXL

+15.06% 2.4x vol
15 alerts
+15.06% Session close to close
+20.4% Peak Tracked
-6.9% Trough Tracked
$12.12M Market Cap
2.4x Rel. Volume

In the Feb 24 session, NXL gained 15.06%, reflecting a significant positive market reaction. Argus tracked a peak move of +20.4% during that session. Argus tracked a trough of -6.9% from its starting point during tracking. Our momentum scanner triggered 15 alerts that day, indicating notable trading interest and price volatility. Trading volume was elevated at 2.4x the daily average, suggesting notable buying interest.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock surged +15.1% in the session following this news. A strong positive reaction aligns with h...
Analysis

The stock surged +15.1% in the session following this news. A strong positive reaction aligns with how NXL has often traded around clinical-trial updates, where prior tagged events averaged moves of 19.13%. The pivotal, triple‑blinded insomnia study targets a 150‑patient population within a large, drug‑free treatment niche. Investors may still weigh balance-sheet constraints from past filings and the need for successful execution of decentralized enrollment and follow-up.

Key Figures

Planned trial size: 150 patients Prior insomnia study size: 120 participants Stimulation intensity: 15 mA +5 more
8 metrics
Planned trial size 150 patients Pivotal HALO™ Clarity insomnia trial enrollment target
Prior insomnia study size 120 participants Randomized, double-blind, placebo-controlled multicenter insomnia study cited
Stimulation intensity 15 mA Gen-2 DIFS™ device current used for insomnia and related indications
US insomnia population 30 million adults Estimated number of adults affected by insomnia in the United States
Eligible age range 22–65 years Adults to be enrolled with moderate to severe insomnia
Treatment duration 4 weeks Randomized treatment period for HALO™ Clarity vs sham
Follow-up period 4 weeks Post-treatment follow-up to evaluate durability of response
Insomnia market size Multi-billion-dollar annually Global insomnia therapeutics market opportunity mentioned

Previous Clinical trial Reports

5 past events · Latest: Oct 10 (Neutral)
Same Type Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Oct 10 Conference participation Neutral -14.7% Announced attendance and engagement plans for the 2025 Maxim Growth Summit.
Oct 08 Alzheimer’s trial data Positive +98.3% Reported statistically significant cognitive gains and connectivity changes in mild Alzheimer’s.
Apr 24 Brazil IRB approval Positive +5.7% Received IRB approval in Brazil for Phase II trial in anxiety and chronic insomnia.
Apr 23 Virtual clinic build-out Positive +0.6% Completed phases one through five of virtual clinic and digital research ecosystem.
Apr 02 UCSD trial enrollment Positive +5.8% Advanced HALO™ Clarity UCSD/VA trial into active treatment for mTBI and PTSD.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Clinical-trial–tagged updates have generally been positive for the stock, with several notable gains (including one large move) and only one meaningfully negative reaction despite broadly positive clinical narratives.

Recent Company History

Over the past year, Nexalin’s clinical-trial–tagged news has focused on expanding evidence and infrastructure for its DIFS™ platform. Updates ranged from Alzheimer’s disease results on Oct 8, 2025 with a 98.25% move, to Brazilian IRB approval for anxiety/insomnia on Apr 24, 2025 and HALO™ Clarity trial progress at UCSD on Apr 2, 2025. A Maxim conference appearance in Oct 2025 was the sole event with a double‑digit negative reaction. Today’s pivotal insomnia trial builds directly on this trajectory of clinical validation and virtual-clinic deployment.

Key Terms

triple-blinded, sham-controlled, de novo, u.s. food and drug administration, +4 more
8 terms
triple-blinded clinical
"The randomized, triple-blinded, sham-controlled study is designed to enroll..."
Triple-blinded describes a clinical trial setup in which three groups—the people receiving the treatment, the clinicians administering it, and the staff evaluating results (or the data analysts)—do not know who got the active treatment versus a placebo. Like keeping a game’s teams secret from players, coaches and referees to prevent favoritism, this reduces bias and makes outcomes more reliable, which helps investors judge whether trial results can be trusted when valuing a company.
sham-controlled clinical
"The randomized, triple-blinded, sham-controlled study is designed to enroll..."
A sham-controlled trial compares a real medical procedure or device to a fake version that looks and feels the same but has no therapeutic effect, much like a sugar pill for surgery or implants. For investors, sham control is a sign of rigorous testing because it helps separate true treatment benefits from placebo effects or patient expectations, making clinical results and regulatory prospects more reliable when assessing commercial potential.
de novo regulatory
"designed to support Nexalin’s planned de novo submission to the U.S. Food..."
De novo means “starting from scratch” — creating something new rather than buying, copying, or modifying an existing asset. For investors it signals a fresh venture or a first-time regulatory pathway where there is no operating history or precedent, which can mean higher upside if it succeeds but greater risk and uncertainty because outcomes, costs and approvals are less predictable; think of it as backing a new recipe instead of a well-known restaurant.
u.s. food and drug administration regulatory
"submission to the U.S. Food and Drug Administration."
The U.S. Food and Drug Administration is the federal agency that evaluates and enforces safety, effectiveness and labeling standards for medicines, medical devices, vaccines, food and related products before they reach consumers. For investors it matters because FDA approvals, warnings or recalls determine whether a product can be sold, how quickly it reaches the market and how costly compliance will be—changes that directly affect a company’s revenue, costs and stock value.
deep intracranial frequency stimulation medical
"the leader in Deep Intracranial Frequency Stimulation (DIFS™) of the brain..."
A medical technique that delivers patterned electrical pulses directly inside the skull to targeted brain areas, using implanted electrodes to change neural activity. Investors should care because outcomes, safety, and regulatory approval for devices and therapies using this approach can determine commercial viability, clinical adoption, and reimbursement — think of it as a precision electrical 'tune-up' for malfunctioning brain circuits that can create new markets or regulatory risks.
electronic data capture technical
"advanced Electronic Data Capture (EDC) system."
Electronic data capture (EDC) is a digital system used to collect, store and manage data from clinical trials and regulatory studies instead of paper forms. It matters to investors because EDC can speed up studies, reduce recording errors, improve regulatory compliance and lower operating costs—similar to replacing scattered paper receipts with a single, searchable spreadsheet that updates in real time and makes results easier to trust and act on.
placebo-controlled clinical
"a 120-participant randomized, double-blind, placebo-controlled, multicenter study..."
"Placebo-controlled" describes a testing method where one group receives the actual treatment or intervention, while another group receives a harmless, inactive version called a placebo. This approach helps determine whether the real treatment has genuine effects beyond psychological expectations. For investors, understanding this ensures confidence that reported benefits are real and not influenced by bias or false perceptions.
non-pharmacological medical
"offering a potential non-pharmacological treatment alternative."
Non-pharmacological describes treatments, devices or approaches that do not use drugs—examples include medical devices, surgery, physical therapy, behavioral programs, lifestyle changes and diagnostic or monitoring technologies. For investors, these options matter because they follow different regulatory paths, reimbursement rules and adoption timelines than medicines, which affects development costs, time to market and potential revenue—think of choosing a mechanical tool instead of a chemical solution.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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150-Patient, Triple-Blinded, Sham-Controlled Study Designed to be Executed in Collaboration with Lindus Health to Support Future FDA Submission for Drug-Free Insomnia Treatment

Builds on Prior Peer-Reviewed Clinical Data and International Regulatory Approvals

HOUSTON, TX, Feb. 24, 2026 (GLOBE NEWSWIRE) -- Nexalin Technology, Inc. (Nasdaq: NXL) (the “Company” or “Nexalin”), the leader in Deep Intracranial Frequency Stimulation (DIFS™) of the brain, today announced continued advancement toward its planned pivotal clinical trial evaluating HALO™ Clarity for the treatment of moderate to severe insomnia, designed to support Nexalin’s planned de novo submission to the U.S. Food and Drug Administration. The study is being conducted in collaboration with Lindus Health, a full-service clinical research organization engaged to oversee trial execution, regulatory preparation, and patient recruitment.

The randomized, triple-blinded, sham-controlled study is designed to enroll a minimum of 150 participants across the United States. Structured as a fully decentralized trial, participants are expected to complete treatments and assessments remotely within Nexalin’s recently launched NeuroCare virtual clinic and its advanced Electronic Data Capture (EDC) system. The NeuroCare virtual clinic is designed to eliminate traditional site visit requirements, while expanding access to a broader patient population.

The pivotal study is designed to support the planned de novo insomnia submission to the U.S. Food and Drug Administration and represents a key milestone in the execution of Nexalin’s global strategy to expand its DIFS™ platform into high-prevalence neuropsychiatric indications.

The pivotal study to support Nexalin’s planned FDA submission builds on Nexalin’s previously reported and published clinical results in chronic insomnia, including a 120-participant randomized, double-blind, placebo-controlled, multicenter study published in the Journal of Psychiatric Research. In that study, Nexalin reported clinically meaningful and statistically significant improvements across key sleep parameters compared to placebo, with no significant adverse effects reported. Nexalin’s Gen-2 15 mA device has also received regulatory approvals internationally for insomnia and related indications.

Insomnia affects approximately 30 million adults in the United States, with many patients reporting dissatisfaction with existing treatment options due to concerns regarding dependency, tolerability, or long-term use. The global insomnia therapeutics market represents a multi-billion-dollar annual opportunity and continues to grow as awareness and diagnosis increase.

HALO™ Clarity leverages Nexalin’s proprietary 15 mA DIFS™ technology, which is engineered to target deeper brain structures associated with sleep regulation and other mental health conditions. Unlike conventional transcranial stimulation approaches primarily targeting cortical regions, DIFS™ is engineered to modulate deeper neural circuits implicated in sleep architecture, offering a potential non-pharmacological treatment alternative.

Under the collaboration, Lindus Health is expected to provide comprehensive clinical research services, including protocol finalization, regulatory preparation and submission support, patient recruitment strategy, study management, data oversight, biostatistics, and medical writing.

The planned study will include adults aged 22 to 65 with moderate to severe insomnia, who are expected to be randomized to receive either active HALO™ Clarity therapy or sham treatment for four weeks, followed by a four-week follow-up period to evaluate durability of response.

“This planned pivotal trial marks an important milestone for Nexalin,” said Mark White, Chief Executive Officer of Nexalin Technology. “Insomnia is a large and underserved market where millions of patients are seeking drug-free treatment options. Advancing HALO™ Clarity toward a fully powered pivotal study designed to support our planned FDA submission reflects the maturity of our DIFS™ platform and our commitment to expanding its clinical reach. We believe successful execution of this study and continued advancement along the FDA pathway will position Nexalin to pursue regulatory clearance in a high-demand market, further validate the broader potential of our technology, and support our ongoing efforts to expand regulatory pathways across additional indications.”

“We are pleased to collaborate with Nexalin in the advancement of this important study,” said Michael Young, Co-CEO of Lindus Health. “Our team looks forward to supporting the execution of a rigorous, patient-centric trial designed to evaluate this novel approach to insomnia treatment.”

Nexalin continues to focus on strengthening the clinical and regulatory foundation of its DIFS™ platform as it advances toward potential commercialization across multiple neuropsychiatric indications.

About Nexalin Technology, Inc.

Nexalin designs and develops innovative neurostimulation products to uniquely help combat the ongoing global mental health epidemic. All of Nexalin's products are believed to be non-invasive and undetectable to the human body and are developed to provide relief to those afflicted with mental health issues. Nexalin utilizes bioelectronic medical technology to treat mental health issues. Nexalin believes its neurostimulation medical devices can penetrate structures deep in the mid-brain that are associated with mental health disorders. Nexalin believes the deeper-penetrating waveform in its next-generation devices will generate enhanced patient response without any adverse side effects. The Nexalin Gen-2 15 milliamp neurostimulation device has been approved in China, Brazil, Oman and Israel. Additional information about the Company is available at: https://nexalin.com/.

FORWARD-LOOKING STATEMENTS

This press release contains 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. These statements relate to future events or Nexalin’s future financial performance. Any statements that refer to expectations, projections, or other characterizations of future events or circumstances or that are not statements of historical fact (including without limitation statements containing the words “believes,” “expects,” “anticipates,” “plans,” “intends,” “will,” “designed to,” “positioned to,” “potential,” “targeted,” “seeking,” or similar expressions) should be considered forward-looking statements. Such statements involve risks and uncertainties that could cause actual events or Nexalin’s actual results to differ materially from those indicated by the forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release.

References to "FDA pivotal study," "FDA pivotal clinical trial," or similar terminology in this press release describe the Company’s intended purpose for the study and do not indicate FDA endorsement, sponsorship, approval, or oversight of the study design, protocol, or execution. No assurance can be given that the planned study will be initiated, enrolled, completed, or produce favorable results, or that any regulatory submission will result in FDA clearance or approval.

Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the control of the Company. Such risks include, but are not limited to: uncertainties regarding the design, enrollment, execution, timing, and completion of clinical trials; the ability to obtain regulatory clearance or approval from the FDA or other regulatory bodies; the Company’s reliance on third-party collaborators, including Lindus Health; the sufficiency of clinical data to support regulatory submissions; the potential for adverse events or safety concerns; market acceptance of the Company’s products; competition from existing and new treatment alternatives; and the Company’s ability to secure adequate funding to complete its planned clinical and regulatory programs. Additional risks are set forth in the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and other filings with the Securities and Exchange Commission. Copies of such filings are available on the SEC’s website at www.sec.gov.

Such forward-looking statements are made as of the date hereof and may become outdated over time. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contact:

Crescendo Communications, LLC
Tel: (212) 671-1020
Email: NXL@crescendo-ir.com


FAQ

What is Nexalin (NXL) announcing on February 24, 2026 about HALO™ Clarity?

Nexalin announced a planned randomized, triple‑blinded 150‑patient pivotal trial to support a de novo FDA submission. According to the company, the fully decentralized study will use the NeuroCare virtual clinic and Lindus Health for execution.

How large and how long is the HALO™ Clarity pivotal study for NXL?

The study is designed to enroll a minimum of 150 participants with four weeks of treatment and four weeks follow-up. According to the company, adults aged 22–65 with moderate-to-severe insomnia will be randomized to active or sham.

Will Nexalin’s HALO™ Clarity trial be conducted remotely for NXL shareholders?

Yes, the pivotal trial is structured as a fully decentralized study using Nexalin’s NeuroCare virtual clinic and EDC systems. According to the company, the design aims to eliminate traditional site visits and broaden access.

What prior clinical evidence supports Nexalin’s (NXL) HALO™ Clarity program?

Nexalin cites a published 120‑participant randomized, double‑blind, placebo‑controlled study showing clinically meaningful improvements versus placebo. According to the company, that study reported no significant adverse effects.

Does Nexalin (NXL) currently have regulatory approvals for its device outside the U.S.?

Yes, Nexalin’s Gen‑2 15 mA device has received international regulatory approvals for insomnia and related indications. According to the company, those approvals complement the planned U.S. de novo pathway.

What clinical and operational partner will manage Nexalin’s HALO™ Clarity pivotal trial (NXL)?

Lindus Health will oversee trial execution, regulatory preparation, and patient recruitment for the study. According to the company, Lindus will provide protocol finalization, biostatistics, medical writing, and study management services.