Nexalin SVP exits with bonus and option perks

Q: What executive change did Nexalin Technology (NXL) announce on August 28, 2026?

Nexalin Technology announced that Carolyn Shelton departed from her role as Senior Vice President of Quality, Regulatory, and Clinical Affairs on August 28, 2026, and that her departure is governed by a negotiated separation agreement.

Q: What cash benefits does the separation agreement provide to Carolyn Shelton at NXL?

The separation agreement provides Ms. Shelton with one month of continued base salary and a 2026 bonus of $20,000. These are in addition to equity-related accommodations and benefits subsidies described in the agreement.

Q: How are Carolyn Shelton’s stock options treated under the Nexalin Technology separation agreement?

The agreement provides for accelerated vesting of Ms. Shelton’s unvested stock options and allows her up to two years to exercise her vested options, extending the time frame she has to potentially realize value from those awards.

Nexalin Technology discloses the departure of a senior vice president and details a separation package including cash, equity vesting, and benefits.

Filing Impact

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Filing Sentiment

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Form Type

8-K

Rhea-AI Filing Summary

Nexalin Technology, Inc. (NXL) reports that on August 28, 2026, Carolyn Shelton departed from her role as Senior Vice President of Quality, Regulatory, and Clinical Affairs. In connection with her departure, she entered into a separation agreement with the company.

The agreement provides one month of continued base salary, a $20,000 2026 bonus, accelerated vesting of her unvested stock options, up to two years to exercise vested options, and continued subsidy of health insurance premiums through September 30, 2026. In return, she provides a release of claims and agrees to confidentiality, non-disparagement, and cooperation provisions. The full agreement will be filed as an exhibit to Nexalin’s next periodic report.

8-K Event Classification

Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers

1 item

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers Governance

Key personnel changes including departures, elections, or appointments of directors and executive officers.

Key Figures

Executive departure date: August 28, 2026 2026 bonus under separation agreement: $20,000 Option exercise period: Up to 2 years +2 more

5 metrics

Executive departure date August 28, 2026 Date Carolyn Shelton departed as Senior Vice President of Quality, Regulatory, and Clinical Affairs

2026 bonus under separation agreement $20,000 Cash bonus payable to Carolyn Shelton as part of her separation package

Option exercise period Up to 2 years Time allowed for Ms. Shelton to exercise her vested stock options after departure

Health insurance subsidy period end September 30, 2026 End date through which the company will subsidize Ms. Shelton’s health insurance premiums

Continued base salary period 1 month Duration of continued base salary provided under the separation agreement

Key Terms

separation agreement, accelerated vesting, release of claims, non-disparagement, +1 more

5 terms

separation agreement financial

"In connection with her departure, Ms. Shelton and the Company entered into a separation agreement"

A separation agreement is a written contract that spells out the financial and legal terms when an employee and a company part ways, such as final pay, severance, continued benefits, confidentiality, and any release of claims. For investors, it matters because these agreements determine immediate costs, potential future liabilities, and whether departing staff are restricted from competing or disclosing information—factors that can affect a company’s cash flow, risk profile, and leadership continuity.

accelerated vesting financial

"provides for one month of continued base salary, a 2026 bonus of $20,000, accelerated vesting of her unvested stock options"

A contract feature that makes stock awards, options, or restricted shares become owned or exercisable earlier than the original schedule. It shortens or cancels the waiting period so recipients can sell, transfer, or exercise their equity sooner — think of a timed lock that is unlocked ahead of schedule. It matters to investors because it changes when shares enter the market, who controls them, and how much dilution or ownership concentration happens.

release of claims regulatory

"Ms. Shelton agreed to a release of claims in favor of the Company"

non-disparagement regulatory

"standard confidentiality, non-disparagement, and cooperation provisions"

A non-disparagement provision is a promise in an agreement that one party will not make negative public statements about the other, like a vow to avoid “badmouthing” a business or its leaders. Investors care because such promises protect reputation and can limit public criticism that might affect a company’s stock price, signal unresolved disputes, or introduce legal risk if enforcement leads to further costs or constrained disclosure.

Emerging Growth Company regulatory

"Emerging Growth Company"

An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What executive change did Nexalin Technology (NXL) announce on August 28, 2026?

Nexalin Technology announced that Carolyn Shelton departed from her role as Senior Vice President of Quality, Regulatory, and Clinical Affairs on August 28, 2026, and that her departure is governed by a negotiated separation agreement.

What cash benefits does the separation agreement provide to Carolyn Shelton at NXL?

The separation agreement provides Ms. Shelton with one month of continued base salary and a 2026 bonus of $20,000. These are in addition to equity-related accommodations and benefits subsidies described in the agreement.

How are Carolyn Shelton’s stock options treated under the Nexalin Technology separation agreement?

The agreement provides for accelerated vesting of Ms. Shelton’s unvested stock options and allows her up to two years to exercise her vested options, extending the time frame she has to potentially realize value from those awards.

What health insurance benefits does Nexalin Technology continue for Carolyn Shelton?

Nexalin Technology agreed to continue subsidizing Ms. Shelton’s health insurance premiums through September 30, 2026, providing a defined period of continued benefits support following her departure from the company.

What obligations does Carolyn Shelton assume under the separation agreement with NXL?

In exchange for the severance benefits, Ms. Shelton agrees to a release of claims in favor of Nexalin, along with standard confidentiality, non-disparagement, and cooperation provisions set out in the separation agreement.

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

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Available on EDGAR 09/02/2026 - 04:51 PM EDT Accepted by SEC EDGAR 09/02/2026 - 04:50 PM EDT

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 28, 2026

NEXALIN TECHNOLOGY, INC.

(Exact name of registrant as specified in its charter)

Delaware		001-41507		27-5566468
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

1776 Yorktown Street, Suite 550, Houston, Texas		77056
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (832) 260-0222

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading symbol		Name of each exchange on which registered
Common Stock, par value $0.001 per share		NXL		The Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 5.02

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On August 28, 2026, Carolyn Shelton departed from her role as Senior Vice President of Quality, Regulatory, and Clinical Affairs of Nexalin Technology, Inc. (the “Company”).

In connection with her departure, Ms. Shelton and the Company entered into a separation agreement, which provides for one month of continued base salary, a 2026 bonus of $20,000, accelerated vesting of her unvested stock options, up to two years to exercise her vested options, and continued subsidy of her health insurance premiums through September 30, 2026. In exchange, Ms. Shelton agreed to a release of claims in favor of the Company and standard confidentiality, non-disparagement, and cooperation provisions.

This summary is qualified in its entirety by the full text of the separation agreement, which will be filed as an exhibit to the Company’s next periodic report.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: September 2, 2026	NEXALIN TECHNOLOGY, INC.

	/s/ Mark White
	Mark White
	Chief Executive Officer

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

3 documents