Nexalin Technology Secures Key Neurostimulation Legislative Provision & Commends U.S. House-Passed Report Language Expanding Non-Invasive Deep Brain Neurostimulation Research at the Department of Veterans Affairs for Traumatic Brain Injury
Rhea-AI Summary
Nexalin Technology (Nasdaq:NXL) highlighted U.S. House Appropriations Committee report language directing the VA to support more research into non-invasive deep brain neurostimulation for treatment-resistant traumatic brain injury (TBI). The provision, advocated by Nexalin America, aligns with Nexalin’s UC San Diego/VA DIFS™ TBI study and could expand VA research opportunities.
AI-generated analysis. Not financial advice.
Positive
- House report urges VA research on non-invasive deep brain neurostimulation for treatment-resistant TBI
- Neurostimulation directive is among few Congressional directives in $945 million VA Medical Research account
- Language distinguishes Nexalin’s DIFS™ deep brain waveform from traditional military neurostimulation devices
- Congressional language aligns with Nexalin’s UC San Diego / San Diego VA TBI clinical research program
- Second Congressional action in 2026 referencing non-invasive deep brain neurostimulation for veterans
Negative
- None.
News Market Reaction – NXL
On the day this news was published, NXL gained 19.10%, reflecting a significant positive market reaction. Argus tracked a peak move of +86.6% during that session. Argus tracked a trough of -6.1% from its starting point during tracking. Our momentum scanner triggered 16 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $1M to the company's valuation, bringing the market cap to $9.06M at that time. Trading volume was exceptionally heavy at 62.7x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
NXL was up 4.36% with modestly elevated volume, while momentum peers CODX (+16.74%) and AIMD (+6.67%) also rose without same-day news, and broader peers showed mixed moves. This points to a stock-specific reaction rather than a coordinated sector trade.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 19 | Platform acquisition | Positive | -3.0% | Closed $1.3M acquisition of AI-enabled digital health platform for trials. |
| Apr 28 | Peer-reviewed data | Positive | -8.6% | Published study showing significant insomnia improvement with DIFS treatment. |
| Apr 22 | Pivotal trial plans | Positive | +5.4% | Advanced pivotal 160‑patient HALO Clarity insomnia trial toward Q2 2026 enrollment. |
| Apr 15 | Regulatory strategy | Positive | +18.4% | Outlined FDA De Novo strategy for Alzheimer’s after Q-Submission interaction. |
| Apr 14 | Investor webinar | Neutral | -0.3% | Announced investor webinar to review DIFS evidence and U.S. initiatives. |
Recent fundamentally positive milestones have produced mixed reactions, with several strong scientific/regulatory updates selling off while others triggered sharp gains.
Over the last few months, Nexalin reported multiple advances, including a $1.3 million digital health acquisition supporting HALO™ Clarity and a planned 160-participant pivotal insomnia trial. Peer-reviewed data and regulatory interactions around its DIFS™ platform for insomnia and Alzheimer’s have also emerged. Market reactions have been inconsistent: some positive updates led to declines, while others, such as the Alzheimer’s regulatory strategy, saw gains above 18%. Today’s VA-focused legislative language extends this trajectory of growing clinical and policy validation for Nexalin’s non-invasive deep brain neurostimulation approach.
Market Pulse Summary
The stock surged +19.1% in the session following this news. A strong positive reaction aligns with growing policy and clinical validation for Nexalin’s DIFS™ technology. The company has already seen notable moves on Alzheimer’s and insomnia catalysts, with prior news producing reactions up to 18.43%. However, shares still trade far below the $2.00 52-week high and under the $0.76 200-day MA, underscoring execution, funding, and regulatory risks that could limit the durability of sharp rallies.
Key Terms
non-invasive deep brain neurostimulation medical
traumatic brain injury medical
treatment-resistant medical
post-traumatic stress disorder medical
neurostimulation medical
non-pharmacologic medical
AI-generated analysis. Not financial advice.
U.S. House Appropriations Committee report language directs VA to support additional research evaluating non-invasive deep brain neurostimulation technologies for veterans with treatment-resistant traumatic brain injury
Report language, championed through the Nexalin America division, builds on Nexalin’s ongoing UC San Diego / San Diego VA-related TBI clinical research program
Marks second Congressional action this year referencing non-invasive deep brain neurostimulation as an emerging therapy for veterans
HOUSTON, TX, May 21, 2026 (GLOBE NEWSWIRE) -- Nexalin Technology, Inc. (Nasdaq: NXL) (the “Company” or “Nexalin”), the leader in non-invasive Deep Intracranial Frequency Stimulation (DIFS™) of the brain, celebrates the inclusion of report language that Nexalin America directly advocated, that promotes additional research into non-invasive deep brain neurostimulation technologies for traumatic brain injury (“TBI”). The specific language accompanies the Fiscal Year 2027 Military Construction, Veterans Affairs, and Related Agencies Appropriations bill, which passed the U.S. House of Representatives in a 400-15 vote.
The U.S. House of Representatives-approved report language, which was secured through the Company’s Nexalin America division, includes the following report language under the “Non-Invasive Neurostimulation for Traumatic Brain Injury” section of the bill’s report:
“The Committee is aware of emerging research on non-invasive deep brain neurostimulation technologies for the treatment of traumatic brain injury (TBI) and is encouraged by early findings demonstrating potential benefits for veterans with treatment-resistant TBI. The Committee encourages the Department to support additional research evaluating the safety, efficacy, and potential clinical applications of these technologies for veterans experiencing treatment-resistant TBI.”
The Fiscal Year 2027 House Military Construction, Veterans Affairs, and Related Agencies Appropriations bill is expected to proceed to a U.S. House-Senate conference following passage of a comparable legislative product expected to emerge from the U.S. Senate. The House’s bill includes
The inclusion of this language finally makes a distinction between traditional stimulation devices currently used in the military and the new Nexalin DIFS™ waveform. Additionally, the language represents the advancement and distinction of Nexalin’s new non-invasive deep brain neurostimulation. We believe that the ability to stimulate deep brain structures associated with TBI and PTSD is the next step in advancing this therapeutic category for veterans suffering from difficult-to-treat neurological and neuropsychiatric conditions. Nexalin continues to believe the new DIFS™ waveform is a breakthrough in non-invasive deep brain stimulation.
Through Nexalin America, the Company’s division dedicated to U.S. government engagement, Nexalin is driving the awareness of the potential role of this new advanced, non-invasive neurostimulation technique used in addressing significant unmet medical needs among veterans. The Company believes the report language aligns closely with Nexalin’s ongoing clinical study evaluating its proprietary DIFS™ deep brain neurostimulation technology for the treatment of traumatic brain injury at UC San Diego.
“We are very grateful to our Congressional champions at the U.S. House of Representatives, who continue to fight each day to bring life-saving innovations to America’s veterans. We view this as a critical policy milestone for Nexalin and its unique ability to penetrate and treat the deep structures of the mid-brain. Finally, a clear distinction is made for the VA, separating Nexalin DIFS™ deep brain technology from the broader field of non-invasive neurostimulation techniques, potentially setting the stage for future and long-term adoption of Nexalin at the VA,” said Mark White, Chief Executive Officer of Nexalin Technology. “For Congress to specifically direct and encourage the VA to support research evaluating the safety, efficacy and clinical applications of non-invasive deep brain techniques for treatment-resistant TBI is, in our view, a strong validation of the category Nexalin is helping pioneer. We believe this Congressional directive expands the field and may help accelerate research pathways, expand institutional awareness and support the long-term development of innovative technologies such as Nexalin’s DIFS™ platform.”
Strategic Alignment with Nexalin’s VA-Focused Clinical Program
Nexalin believes these developments collectively demonstrate increasing federal attention on the need for innovative, non-pharmacologic approaches to treat traumatic brain injury, PTSD and other serious neurological conditions disproportionately affecting veterans. Nexalin is currently advancing clinical research evaluating its DIFS™ neurostimulation technology for the treatment of traumatic brain injury at UC San Diego. The study is designed to gather data on the impact of Nexalin’s DIFS™ technology in treating mental health conditions, particularly for veterans and other patient populations who often face limited treatment options.
About Nexalin Technology, Inc.
Nexalin designs and develops innovative neurostimulation products to uniquely help combat the ongoing global mental health epidemic. Nexalin’s medical devices are non-invasive and undetectable to the human body. Nexalin products are developed to provide relief to those afflicted with mental health issues using frequency based bioelectronic medical technology. 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, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). These forward-looking statements relate to future events, future performance, or management’s current expectations, beliefs, assumptions, plans, estimates, intentions, or projections relating to the future, and are not guarantees of future performance. Any statements that are not statements of historical fact, or that refer to expectations, projections, or other characterizations of future events or circumstances (including, without limitation, statements containing the words “believes,” “expects,” “anticipates,” “plans,” “intends,” “will,” “may,” “could,” “should,” “would,” “designed to,” “positioned to,” “potential,” “targeted,” “seeking,” “continues,” “strategy,” “opportunity,” “estimates,” “projects,” “forecasts,” “predicts,” “outlook,” “guidance,” or similar expressions, or the negative of such terms), are forward-looking statements. These statements are based on Nexalin’s current expectations, assumptions, and beliefs and are subject to several risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this press release.
Forward-looking statements in this press release include, but are not limited to, statements regarding: whether there is or will be a potentially expanded opportunity within the VA for non-invasive deep brain neurostimulation technologies such as Nexalin; whether the U.S. Senate will pass a comparable legislative product and, if so, whether final legislation will be passed into law; the validation, mechanism of action, and differentiation of Nexalin’s DIFS™ platform; the broader relevance and clinical applicability of the Company’s technology across multiple indications, including chronic insomnia and other neuropsychiatric conditions; the design, enrollment, timing, progress, results, and potential outcomes of the HALO™ Clarity pivotal program and other future clinical trials; the potential for future development, regulatory progress (including any planned De Novo FDA submission), and commercialization of the Company’s products and technology; the Company’s beliefs regarding its competitive position, market opportunity, and value proposition; management’s expectations regarding future regulatory submissions, clearances, and approvals; and the Company’s strategic plans, business prospects, and capital needs. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors that may cause the Company’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. No assurance can be given that future studies will be initiated or completed on a timely basis or at all, that published findings will be replicated in larger or controlled trials, or that the Company’s technology will receive regulatory clearance or approval for any particular indication or on any anticipated timeline.
Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the Company’s control. Such risks include, but are not limited to: uncertainties regarding the design, enrollment, execution, timing, results, and completion of clinical trials, including the HALO™ Clarity pivotal program; the ability to obtain regulatory clearance or approval from the U.S. Food and Drug Administration (the “FDA”) or other regulatory bodies, including with respect to any planned De Novo submission; the sufficiency of clinical and non-clinical data to support regulatory submissions; the potential for adverse events, safety concerns, or product performance issues; market acceptance of, and reimbursement for, the Company’s products; the Company’s ability to protect and enforce its intellectual property rights; competition from existing and new treatment alternatives; the Company’s reliance on third-party manufacturers, suppliers, and clinical investigators; the Company’s ability to secure adequate funding on acceptable terms to complete its planned clinical, regulatory, and commercial programs; and general economic, political, regulatory, and market conditions. Additional risks and uncertainties that could cause actual results to differ materially are described under the heading “Risk Factors” in the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2025, and in the Company’s subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings the Company makes from time to time with the U.S. Securities and Exchange Commission (the “SEC”). Copies of these filings are available free of charge on the SEC’s website at www.sec.gov and on the Company’s investor relations website. New risk factors emerge from time to time, and it is not possible for the Company to predict all such risk factors or to assess the impact of all such risk factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
All forward-looking statements in this press release are qualified in their entirety by this cautionary statement and the risk factors and other disclosures referenced above, and speak only as of the date they are made. Except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances, or otherwise, after the date of this press release.
Contact:
Crescendo Communications, LLC
Tel: (212) 671-1020
Email: NXL@crescendo-ir.com
