Until very recently they've talked up the advantages of this...

Until very recently they've talked up the advantages of this relationship and arrangement. Customers aren't buying their flagship product which is the simplest and most obvious application of a biofilm solution. They've mismanaged the relationship with a major distributor. The 'take or pay' arrangements sound great but realistically it's not enforceable and poor practice if you want to maintain a healthy business relationship; you can't tell a distributor to keep buying stuff they can't sell.

In my opinion, NXS probably their sales history and misled the market by timing purchases from 3M shortly before listing to present a growth story which was unrepresentative of end-customer sales. COVID donations totalling 65,000 units in 2020 shows that product wasn't moving from 3M and is nothing more than dumping stock that they were asked to purchase rather than letting it expire; the language that NXS wanted to "give back" to clinicians and the community is curious as it implies they're making big profits and have money to spend, rather than bleeding cash.

If NXS is to succeed, they have to be able to demonstrate it with this product, not the next one, or the next one, or the next one. There are no valid excuses here. BlastX has been on sale for over four years and has had millions of sales and marketing dollars behind it.

Without BlastX revenue increasing significantly they'll need another capital raise within 18 months.

Strong sell.