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NeuroOne Medical Technologies (NMTC)
NASDAQ:NMTC
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NeuroOne Medical Technologies (NMTC) AI Stock Analysis

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NMTC

NeuroOne Medical Technologies

(NASDAQ:NMTC)

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Neutral 58 (OpenAI - 4o)
Rating:58Neutral
Price Target:
$1.00
▲(7.53% Upside)
NeuroOne Medical Technologies' overall score reflects strong revenue growth and positive earnings call sentiment, offset by challenges in profitability and valuation. The technical indicators show moderate strength, but the negative P/E ratio and lack of dividend yield weigh on the valuation. The FDA clearance is a positive development, but its impact is already considered in the earnings call analysis.

NeuroOne Medical Technologies (NMTC) vs. SPDR S&P 500 ETF (SPY)

NeuroOne Medical Technologies Business Overview & Revenue Model

Company DescriptionNeuroOne Medical Technologies Corporation operates as a medical technology company. The company focuses on the development and commercialization of thin film electrode technology for continuous electroencephalogram (cEEG) and stereoelectroencephalography (sEEG) recording, spinal cord stimulation, brain stimulation, and ablation solutions for patients suffering from epilepsy, Parkinson's disease, dystonia, essential tremors, chronic pain due to failed back surgeries, and other related neurological disorders. It has a strategic partnership with RBC Medical Innovations to develop a radio frequency ablation generator for use with NeuroOne's combination recording and ablation electrode to record brain activity and ablate brain tissue using the same electrode. The company is based in Eden Prairie, Minnesota.
How the Company Makes MoneyNeuroOne generates revenue through the sale of its medical devices and technology solutions to hospitals, clinics, and medical professionals. The company leverages a direct sales model, often partnering with distributors to reach a broader market. Key revenue streams include product sales of their thin-film electrode systems and neurostimulation devices, as well as potential licensing agreements for their proprietary technology. Additionally, strategic partnerships with healthcare providers and research institutions facilitate clinical trials and product validation, ultimately contributing to revenue growth as their products gain acceptance in the medical community.

NeuroOne Medical Technologies Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Dec 10, 2025
Earnings Call Sentiment Positive
The earnings call was notably positive, highlighting significant revenue growth, successful patient outcomes, new market expansions, and financial stability. While there were concerns about the lack of international sales, the overall progress and achievements outweighed this challenge.
Q3-2025 Updates
Positive Updates
Significant Revenue and Gross Margin Growth
Product revenue increased 105% to $1.7 million and product gross margins increased to 53.9% in the third quarter of fiscal 2025 compared to 34.1% in the third quarter of fiscal 2024.
Successful Patient Outcomes
First patient reached the 1-year seizure freedom milestone with the OneRF ablation system, showing improved quality of life.
Debt-Free Status and Financial Stability
The company remains debt-free and is funded through fiscal year 2026, aided by an oversubscribed capital raise of $8.2 million.
Expansion into New Markets
Submitted 510(k) for FDA clearance for trigeminal neuralgia treatment and pursuing opportunities in pain management and spinal cord stimulation.
Intellectual Property and Management Strengthening
Received a notice of allowance for a novel manufacturing method and granted the first international patent for spinal cord stimulation electrode.
Decreased Operating Expenses and Improved Net Loss
Total operating expenses decreased 9% in the third quarter, and net loss improved to $1.5 million compared to $2.8 million in the previous year.
Negative Updates
Lack of International Market Sales
To date, no products have been sold or commercialized in international markets, though efforts are being made to secure ISO 13485 certification to expand internationally.
Company Guidance
During the third quarter of fiscal year 2025, NeuroOne Medical Technologies Corporation provided guidance indicating a strong financial performance with product revenue increasing by 105% to $1.7 million, and gross margins improving from 34.1% in Q3 FY 2024 to 53.9%. The company reiterated its fiscal year 2025 guidance, projecting product revenue between $8 million and $10 million, marking an increase of 132% to 190% over fiscal year 2024, with gross margin expectations raised to 50-53%, up from the initial 47-51% forecast. The company remains debt-free and expects to be funded through at least fiscal year 2026, thanks to an $8.2 million oversubscribed financing raised in April. Additionally, NeuroOne highlighted its strategic initiatives in pain management, including a submitted 510(k) for trigeminal neuralgia treatment and developments in spinal cord stimulation, which could open new market opportunities. The company also indicated progress in its drug delivery system and IP portfolio, including a notice of allowance for a novel manufacturing method and its first international patent.

NeuroOne Medical Technologies Financial Statement Overview

Summary
NeuroOne Medical Technologies shows strong revenue growth but struggles with profitability, as indicated by negative net profit margins and EBIT margins. The balance sheet is stable with low leverage, but the company has negative returns on equity. Cash flow management is concerning with declining free cash flow growth and negative operating cash flow ratios.
Income Statement
45
Neutral
NeuroOne Medical Technologies shows a positive revenue growth rate of 15.11% TTM, indicating a strong upward trajectory in sales. However, the company struggles with profitability, as evidenced by negative net profit margins and EBIT margins, which reflect ongoing operational challenges. The gross profit margin has improved to 54.19% TTM, suggesting better cost management, but the overall profitability remains a concern.
Balance Sheet
50
Neutral
The balance sheet reveals a moderate debt-to-equity ratio of 0.28 TTM, indicating a relatively low level of leverage, which is a positive sign of financial stability. However, the return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio stands at 75.58%, suggesting a strong equity base relative to total assets.
Cash Flow
40
Negative
The cash flow statement highlights a decline in free cash flow growth by -17.52% TTM, pointing to potential cash management issues. The operating cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash from operations to cover its net losses. However, the free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is somewhat aligned with net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.63M3.45M1.95M171.17K178.15K1.93M
Gross Profit3.75M1.08M456.52K-70.79K-97.75K63.12K
EBITDA-4.51M-11.84M-11.76M-9.91M-9.80M-4.85M
Net Income-5.34M-12.32M-11.86M-10.00M-9.95M-13.64M
Balance Sheet
Total Assets10.82M5.37M8.10M12.82M7.94M4.76M
Cash, Cash Equivalents and Short-Term Investments8.04M1.46M5.32M11.14M6.90M4.04M
Total Debt295.72K260.16K184.40K202.90K315.67K1.32M
Total Liabilities2.64M4.55M1.85M3.22M1.38M2.69M
Stockholders Equity8.18M822.01K6.25M9.60M6.55M2.07M
Cash Flow
Free Cash Flow-4.09M-11.13M-13.27M-7.79M-8.67M-3.55M
Operating Cash Flow-3.98M-11.01M-12.89M-7.52M-8.60M-3.43M
Investing Cash Flow-108.04K-120.20K2.65M-3.24M-67.08K-122.43K
Financing Cash Flow10.51M7.27M7.40M12.02M11.53M7.32M

NeuroOne Medical Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.93
Price Trends
50DMA
0.81
Positive
100DMA
0.73
Positive
200DMA
0.81
Positive
Market Momentum
MACD
0.03
Negative
RSI
65.43
Neutral
STOCH
68.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMTC, the sentiment is Positive. The current price of 0.93 is above the 20-day moving average (MA) of 0.82, above the 50-day MA of 0.81, and above the 200-day MA of 0.81, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 65.43 is Neutral, neither overbought nor oversold. The STOCH value of 68.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NMTC.

NeuroOne Medical Technologies Risk Analysis

NeuroOne Medical Technologies disclosed 51 risk factors in its most recent earnings report. NeuroOne Medical Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

NeuroOne Medical Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
$46.50M-95.39%145.48%67.36%
42
Neutral
9.51M0.38178.66%-73.36%0.00%
41
Neutral
28.19M-0.9771.22%-26.49%-91.23%
39
Underperform
34.82M-0.580.00%0.00%6.48%
35
Underperform
31.77M-2.080.00%0.00%0.00%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NMTC
NeuroOne Medical Technologies
0.93
>-0.01
-1.06%
PAVM
PAVmed
0.44
-0.85
-65.89%
RBOT
Vicarious Surgical
5.85
0.25
4.46%
IINN
Inspira Technologies Oxy BHN
1.24
0.03
2.48%
COCH
Envoy Medical
1.31
-2.41
-64.78%
NXL
Nexalin Technology, Inc.
0.93
0.22
30.99%

NeuroOne Medical Technologies Corporate Events

Product-Related Announcements
NeuroOne Gains FDA Clearance for Nerve Ablation System
Positive
Aug 18, 2025

On August 18, 2025, NeuroOne Medical Technologies Corporation announced it received FDA 510(k) clearance for its OneRF® Trigeminal Nerve Ablation System. This clearance allows the company to market the system for creating radiofrequency lesions to treat pain or for functional neurosurgical procedures, potentially enhancing its market position and offering new solutions for stakeholders.

Private Placements and FinancingRegulatory Filings and Compliance
NeuroOne Updates Prospectus for $6.75 Million Offering
Neutral
Aug 15, 2025

On December 21, 2022, NeuroOne Medical Technologies Corporation entered into a Capital on Demand™ Sales Agreement with JonesTrading Institutional Services LLC, allowing the company to sell shares of its common stock through an ‘at the market offering.’ On August 15, 2025, the company filed an updated Prospectus Supplement for the sale of up to $6.75 million of shares, potentially impacting its financial strategy and market presence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 09, 2025