• NEXGEL Reports First Quarter 2024 Revenue of $1.27 Million, an Increase of 104% Year-Over-Year

    المصدر: Nasdaq GlobeNewswire / 13 مايو 2024 16:05:00   America/New_York

    LANGHORNE, Pa., May 13, 2024 (GLOBE NEWSWIRE) -- NEXGEL, Inc. (“NEXGEL” or the “Company”) (NASDAQ: “NXGL”), a leading provider of ultra-gentle, high-water-content hydrogel products for healthcare and consumer applications, today announced its financial results for the first quarter ended March 31, 2024.

    Adam Levy, NEXGEL’s Chief Executive Officer, commented, “Following a record year of growth in 2023, I am pleased to report our first quarter financial results that demonstrate steady growth year-over-year and preparedness for significant growth levers we expect in 2024. Revenue for the quarter grew 104% year-over-year driven by growth in both contract manufacturing and consumer branded product business segments of approximately 58% and 178%, respectively. In the first quarter and into the second quarter of this year we are investing for the growth we expect in the back half of this year. We are nearly complete with the capacity expansion of our facility in Texas along with installation of state-of-the art equipment in preparation for product launches with Abbvie and others. Additionally, we expect to launch our first batch of consumer branded products in Europe and are in the final stages of receiving the proper certifications to do so. We have a lot to be excited about regarding our future growth opportunities at NEXGEL.”

    First Quarter 2024 Financial Highlights

    For the quarter ended March 31, 2024, revenue totaled $1.27 million, an increase of $646,000, or 104%, as compared to $620,000 for the quarter ended March 31, 2023. The increase in revenue was driven by sales growth in contract manufacturing of approximately 58% and branded products of 178%.

    Gross profit totaled $277,000 for the three months ended March 31, 2024, compared to a gross profit loss of $57,000 for the three months ended March 31, 2023. The increase of $334,000 in gross profit year-over-year was primarily due to the increase in consumer branded products.

    Gross profit margin for the first quarter of 2024 was 21.9% compared to a negative gross margin for the first quarter of 2023 of 9.2% and a gross profit margin of 14.6% in the fourth quarter of 2023.

    Cost of revenues increased by $312,000, or 46.1%, to $989,000 for the three months ended March 31, 2024, as compared to $677,000 for the three months ended March 31, 2023. The increase in cost of revenues is primarily aligned with the new product line growth and an increase in compensation and benefits with the increase in revenue growth.

    Selling, general and administrative expenses increased by $349,000 or 43.8%, to $1.1 million for the three months ended March 31, 2024, as compared to $797,000 for the three months ended March 31, 2023. The increase in selling, general and administrative expenses is primarily attributable to an increase in advertising, marketing and Amazon fees, professional and consulting fees, and of compensation and benefits expense.

    Research and development expenses decreased by $27,000 to $2,000 for the three months ended March 31, 2024, from $29,000 for the three months ended March 31, 2023.

    Net loss for the three months ended March 31, 2024, was $905,000 as compared to a net loss of 807,000 in the three months ended March 31, 2023.

    As of March 31, 2024, the Company had a cash balance of $2.4 million, which includes an approximate $1 million registered direct offering led by insiders. During the quarter, there was a net usage of cash for investment due to several non-recurring key strategic investments and acquisition costs.

    As of March 31, 2024, NEXGEL had 6,227,624 shares of common stock outstanding.

    First Quarter 2024 Financial Results Conference Call
    Date: May 13, 2024
    Time: 4:30 P.M. ET
    Live Call: + 1-800-343-5419 (U.S. Toll Free) or + 1-203-518-9731 (International)
    Webcast: Events and Presentations

    For interested individuals unable to join the conference call, a replay will be available through May 27, 2024, by dialing + 1-844-512-2921 (U.S. Toll Free) or + 1-412-317-6671 (International). Participants must use the following code to access the replay of the call: 11155952. An archived version of the webcast will also be available for 90 days.

    About NEXGEL, INC.

    NEXGEL is a leading provider of healthcare, beauty, and over-the-counter (OTC) products including ultra-gentle, high-water-content hydrogels. Based in Langhorne, Pa., the Company has developed and manufactured electron-beam, cross-linked hydrogels for over two decades. NEXGEL brands include Silverseal, Hexagels, Turfguard, Kenkoderm, and Dermablock. Additionally, NEXGEL has strategic contract manufacturing relationships with leading consumer healthcare companies.

    Forward-Looking Statement

    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 (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs, such as “will,” “should,” “would,” “may,” and “could,” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance, or achievements to be materially different from any anticipated results, performance, or achievements for many reasons. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company's forward-looking statements, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2022, including but not limited to the discussion under “Risk Factors” therein, which the Company filed with the SEC and which may be viewed at http://www.sec.gov/.

    Investor Contacts:
    Valter Pinto, Managing Director
    KCSA Strategic Communications
    212.896.1254
    valter@kcsa.com

    NEXGEL, INC
    CONDENSED CONSOLIDATED BALANCE SHEETS
    AS OF MARCH 31, 2024 AND DECEMBER 31, 2023
    (Unaudited)
    (in thousands, except share and per share data)

      March 31,
    2024
      December 31,
    2023
     
    ASSETS:        
    Current Assets:        
    Cash $2,419  $2,700 
    Accounts receivable, net  739   633 
    Inventory  1,369   1,319 
    Prepaid expenses and other current assets  336   400 
    Total current assets  4,863   5,052 
    Goodwill  1,128   1,128 
    Intangibles, net  302   326 
    Property and equipment, net  2,194   1,499 
    Operating lease - right of use asset  1,803   1,855 
    Other assets  95   95 
    Total assets $10,385  $9,955 
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Current Liabilities:        
    Accounts payable $1,053  $1,233 
    Accrued expenses and other current liabilities  111   398 
    Deferred revenue  250   20 
    Current portion of note payable  87   80 
    Warrant liability  255   146 
    Contingent consideration liability  439   439 
    Financing lease liability, current portion  55   - 
    Operating lease liabilities, current portion  233   233 
    Total current liabilities  2,483   2,549 
    Operating lease liabilities, net of current portion  1,682   1,727 
    Financing lease liability, net of current portion  352   - 
    Notes payable, net of current portion  663   513 
    Total liabilities  5,180   4,789 
             
    Commitments and Contingencies (Note 15)  -   - 
             
    Preferred stock, par value $0.001 per share, 5,000,000 shares authorized, no shares issued and outstanding  -   - 
    Common stock, par value $0.001 per share, 25,000,000 shares authorized; 6,227,624 and 5,741,838 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively  6   6 
    Additional paid-in capital  20,350   19,406 
    Accumulated deficit  (15,568)  (14,715)
    Total NexGel stockholders’ equity  4,788   4,697 
    Non-controlling interest in joint venture  417   469 
    Total stockholders’ equity  5,205   5,166 
    Total liabilities and stockholders’ equity $10,385  $9,955 


    NEXGEL, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023
    (Unaudited)
    (in thousands, except share and per share data)

           
      Three months ended 
      March 31, 
      2024  2023 
    Revenues, net $1,266  $620 
             
    Cost of revenues  989   677 
             
    Gross margin (loss)  277   (57)
             
    Operating expenses        
    Research and development  2   29 
    Selling, general and administrative  1,146   797 
    Total operating expenses  1,148   826 
             
    Loss from operations  (871)  (883)
             
    Other income (expense)        
    Interest income (expense), net  (15)  (1)
    Changes in fair value of warrant liability and warrant modification expense  (53)  66 
    Gain on investment in marketable securities  34   7 
    Other income     4 
    Total other income (expense), net  (34)  76 
    Loss before income taxes  (905)  (807)
    Income tax expense      
    Net loss  (905)  (807)
    Less: Income (loss) attributable to non-controlling interest in joint venture  (52)  7 
    Net loss attributable to NexGel stockholders $(853) $(814)
    Net loss per common share - basic $(0.14) $(0.15)
    Net loss per common share - diluted $(0.14) $(0.15)
    Weighted average shares used in computing net loss per common share - basic  5,982,062   5,586,326 
    Weighted average shares used in computing net loss per common share – diluted  5,982,062   5,586,326 


    NEXGEL, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023
    (Unaudited)
    (in thousands)

           
      Three Months Ended
    March 31,
     
      2024  2023 
    Operating Activities        
    Net loss $(853) $(814)
    Adjustments to reconcile net loss to net cash used in operating activities:        
    Income (loss) attributable to non-controlling interest in joint venture  (52)  7 
    Depreciation and amortization  62   31 
    Share-based compensation and restricted stock vesting  54   24 
    Gain on investment in marketable securities  (34)  7 
    Changes in fair value of warrant liability  53   (66)
    Amortization of right of use asset  52   49 
             
    Changes in operating assets and liabilities:        
    Accounts receivable  (106)  (158)
    Inventory  (50)  (466)
    Prepaid expenses and other assets  64   11 
    Accounts payable  (180)  722 
    Accrued expenses and other current liabilities  (287)  (18)
    Deferred revenue  230    
    Operating lease liability  (45)  (38)
    Net Cash Used in Operating Activities  (1,092)  (709)
             
    Investing Activities        
    Proceeds from sales of marketable securities  34   485 
    Capital expenditures  (152)  (88)
    Net Cash Provided by (Used in) Investing Activities  (118)  397 
             
    Financing Activities        
    Proceeds from rights offering, net of expenses  946    
    Principal payment on financing lease liability  (9)   
    Principal payments of notes payable  (8)  (2)
    Net Cash Provided by (Used in) Financing Activities  929   (2)
    Net Decrease in Cash  (281)  (314)
    Cash – Beginning of period  2,700   1,101 
    Cash – End of period $2,419  $787 
    Supplemental Disclosure of Cash Flows Information        
    Cash paid during the year for:        
    Interest $10  $ 
    Taxes $  $ 
             
    Supplemental Non-cash Investing and Financing activities        
    Property and equipment financed under notes payable $165  $ 
    Property and equipment financed under financing leases $416  $ 
    Property and equipment contributed as capital investment to JV $  $500 
    ROU asset and operating lease liabilities recognized upon consolidation of JV $  $334 


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