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
record second quarter 2024 revenue of $1.44 million and is
reiterating revenue guidance for the 2024 third and fourth quarter
of $2.2 million and $2.6 million, respectively.
Adam Levy, NEXGEL’s Chief Executive Officer,
commented, “The second quarter of 2024 was a record revenue quarter
for the Company, totaling $1.44 million, an increase of 23.4%
year-over-year and 13.7% sequentially. Branded consumer product
revenue was a key growth driver during the quarter led by our Silly
George brand, which contributed revenue for approximately half the
quarter. At the time of closing on the acquisition, Silly George
was on a revenue run rate of $2 million. In July alone Silly George
sales were over $380,000 on Shopify only. We continue to be excited
with this acquisition and revenue opportunities from our
partnerships with STADA and Cintas in the back half of this
year.”
Second Quarter 2024 Business and
Operational Highlights
- Acquired Silly George, an
international beauty company with specialty in eye and eyelash
consumer products.
- Announced the first product,
Histasolv®, sold as DAOSIN® in Europe, to be distributed in
partnership with STADA Arzneimittel AG (“STADA”) in North
America.
- Signed agreement with Cintas
Corporation, a leading provider of corporate identity uniforms,
first aid and safety products and services to over 1 million
businesses across North America, to distribute SilverSeal.
Subsequent Events
- Issued revenue guidance for the
third and fourth quarters of 2024 of $2.2 million and $2.6 million,
an increase of 83% and 140% year-over-year, respectively.
- Closed on registered direct
offering led by insiders for gross proceeds of approximately $1.11
million.
- In partnership with Innovative
Optics, a leading supplier of safety products and person protective
equipment for medical, surgical, and aesthetic healthcare
facilities globally, initiated an institutional review board study
on the benefits of hydrogel application during laser hair
removal.
Second Quarter 2024 Financial
Highlights
For the quarter ended June 30, 2024, revenue
totaled $1.44 million, an increase of $273,000, or 23.4%, as
compared to $1.17 million for the quarter ended June 30, 2023. The
increase in revenue was driven by sales growth in branded consumer
products, including approximately 45 days of revenue from Silly
George, partially offset by a decrease in contract manufacturing.
Contract manufacturing revenue was impacted by CGN’s move into its
new facility and will normalize and grow in the third and fourth
quarter of 2024.
Gross profit totaled $410,000 for the three
months ended June 30, 2024, compared to a gross profit of $175,000
for the three months ended June 30, 2023. The increase of $235,000
in gross profit year-over-year was primarily due to the increase in
branded consumer products.
Gross profit margin for the second quarter of
2024 was 28.5% compared to a gross margin for the second quarter of
2023 of 15.0% and a gross profit margin of 21.9% in the first
quarter of 2024.
Cost of revenues increased by $38,000, or 3.8%,
to $1.03 million for the three months ended June 30, 2024, as
compared to $992,000 for the three months ended June 30, 2023. The
increase in cost of revenues is primarily aligned with sales of
branded consumer products, partially offset by a decrease in cost
of revenues from lower contract manufacturing revenue.
Selling, general and administrative expenses
increased by $506,000 or 57.4%, to $1.39 million for the three
months ended June 30, 2024, as compared to $882,000 for the three
months ended June 30, 2023. The increase in selling, general and
administrative expenses is primarily attributable to an increase in
advertising, marketing, and Amazon fees, attributable to promotion
of Kenkoderm and Silly George. The Company expects these costs to
increase in the third quarter with a full quarter of Silly George
revenue and with further growth in branded consumer products.
Research and development expenses increased by
$21,000 to $76,000 for the three months ended June 30, 2024, from
$55,000 for the three months ended June 30, 2023.
Net loss for the three months ended June 30,
2024, was $979,000 as compared to a net loss of $642,000 in the
three months ended June 30, 2023.
As of June 30, 2024, the Company had a cash
balance of approximately $1.1 million. Subsequent to the end of the
quarter, the Company closed on a registered direct offering of
$1.11 million, led by insiders. The use of proceeds for the
financing is for working capital and the immediate requirement for
additional inventory and marketing to meet the higher-than-expected
demand for the Silly George brand products. The Company believes it
has sufficient cash and marketable securities to operate its
business plan into 2025.
As of August 14, 2024, NEXGEL had 6,324,266
shares of common stock outstanding, which number does not include
the 444,000 shares of common stock we anticipate issuing in
connection with our recent offering.
Second Quarter 2024 Financial Results
Conference Call
Date: August 14,
2024Time: 4:30 P.M. ETLive Call:
+ 1-800-579-2543 (U.S. Toll Free) or + 1-785-424-1789
(International)Webcast: Events and
Presentations
For interested individuals unable to join the
conference call, a replay will be available through August 28,
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: 11156720. 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 Silly George®. 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, including,
without limitation, our revenue guidance for the third and fourth
quarter of 2025. 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, 2023, 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 DirectorKCSA Strategic
Communications212.896.1254Nexgel@kcsa.com
NEXGEL, INCCONDENSED
CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2024
AND DECEMBER 31, 2023 (Unaudited)(in
thousands, except share and per share data)
|
|
June 30, 2024 |
|
|
December 31, 2023 |
|
ASSETS: |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
1,069 |
|
|
$ |
2,700 |
|
Accounts receivable, net |
|
|
605 |
|
|
|
633 |
|
Inventory |
|
|
1,446 |
|
|
|
1,319 |
|
Prepaid expenses and other current assets |
|
|
467 |
|
|
|
400 |
|
Total current assets |
|
|
3,587 |
|
|
|
5,052 |
|
Goodwill |
|
|
1,128 |
|
|
|
1,128 |
|
Intangibles, net |
|
|
855 |
|
|
|
326 |
|
Property and equipment,
net |
|
|
2,368 |
|
|
|
1,499 |
|
Operating lease - right of use
asset |
|
|
1,742 |
|
|
|
1,855 |
|
Other assets |
|
|
95 |
|
|
|
95 |
|
Total assets |
|
$ |
9,775 |
|
|
$ |
9,955 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,245 |
|
|
$ |
1,233 |
|
Accrued expenses and other current liabilities |
|
|
284 |
|
|
|
398 |
|
Deferred revenue |
|
|
179 |
|
|
|
20 |
|
Current portion of note payable |
|
|
87 |
|
|
|
80 |
|
Warrant liability |
|
|
176 |
|
|
|
146 |
|
Contingent consideration liability |
|
|
370 |
|
|
|
439 |
|
Financing lease liability, current portion |
|
|
55 |
|
|
|
- |
|
Operating lease liabilities, current portion |
|
|
237 |
|
|
|
233 |
|
Total current liabilities |
|
|
2,633 |
|
|
|
2,549 |
|
Operating lease liabilities, net of current portion |
|
|
1,632 |
|
|
|
1,727 |
|
Financing lease liability, net of current portion |
|
|
339 |
|
|
|
- |
|
Notes payable, net of current portion |
|
|
645 |
|
|
|
513 |
|
Total liabilities |
|
|
5,249 |
|
|
|
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; 6,324,266 and 5,741,838
shares issued and outstanding as of June 30, 2024 and December 31,
2023, respectively |
|
|
6 |
|
|
|
6 |
|
Additional paid-in
capital |
|
|
20,614 |
|
|
|
19,406 |
|
Accumulated deficit |
|
|
(16,454 |
) |
|
|
(14,715 |
) |
Total NexGel stockholders’
equity |
|
|
4,166 |
|
|
|
4,697 |
|
Non-controlling interest in
joint venture |
|
|
360 |
|
|
|
469 |
|
Total stockholders’
equity |
|
|
4,526 |
|
|
|
5,166 |
|
Total liabilities and
stockholders’ equity |
|
$ |
9,775 |
|
|
$ |
9,955 |
|
NEXGEL, INC.CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE
THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(Unaudited)(in thousands, except share and per
share data)
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
|
June 30, |
|
|
June 30, |
|
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Revenues, net |
|
$ |
1,440 |
|
|
$ |
1,167 |
|
|
$ |
2,706 |
|
|
$ |
1,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues |
|
|
1,030 |
|
|
|
992 |
|
|
|
2,019 |
|
|
|
1,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
410 |
|
|
|
175 |
|
|
|
687 |
|
|
|
117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development |
|
|
76 |
|
|
|
55 |
|
|
|
78 |
|
|
|
84 |
|
|
Selling, general
and administrative |
|
|
1,388 |
|
|
|
882 |
|
|
|
2,534 |
|
|
|
1,679 |
|
|
Total operating
expenses |
|
|
1,464 |
|
|
|
937 |
|
|
|
2,612 |
|
|
|
1,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(1,054 |
) |
|
|
(762 |
) |
|
|
(1,925 |
) |
|
|
(1,646 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(30 |
) |
|
|
(9 |
) |
|
|
(46 |
) |
|
|
(10 |
) |
|
Interest
income |
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
Loss on sale of
assets |
|
|
(4 |
) |
|
|
- |
|
|
|
(4 |
) |
|
|
- |
|
|
Other income |
|
|
6 |
|
|
|
- |
|
|
|
6 |
|
|
|
4 |
|
|
Gain on
investments |
|
|
23 |
|
|
|
116 |
|
|
|
57 |
|
|
|
124 |
|
|
Changes in fair
value of warrant liability |
|
|
79 |
|
|
|
11 |
|
|
|
26 |
|
|
|
77 |
|
|
Total other income
(expense), net |
|
|
75 |
|
|
|
120 |
|
|
|
41 |
|
|
|
197 |
|
|
Loss before income
taxes |
|
|
(979 |
) |
|
|
(642 |
) |
|
|
(1,884 |
) |
|
|
(1,449 |
) |
|
Income tax
expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net loss |
|
$ |
(979 |
) |
|
$ |
(642 |
) |
|
|
(1,884 |
) |
|
|
(1,449 |
) |
|
Less: Income
attributable to non-controlling interest in joint venture |
|
|
94 |
|
|
|
(53 |
) |
|
|
146 |
|
|
|
(60 |
) |
|
Net loss
attributable to NexGel stockholders |
|
|
(885 |
) |
|
|
(695 |
) |
|
|
(1,738 |
) |
|
|
(1,509 |
) |
|
Net loss per
common share - basic |
|
$ |
(0.14 |
) |
|
$ |
(0.12 |
) |
|
|
(0.28 |
) |
|
|
(0.27 |
) |
|
Net loss per
common share - diluted |
|
$ |
(0.14 |
) |
|
$ |
(0.12 |
) |
|
|
(0.28 |
) |
|
|
(0.27 |
) |
|
Weighted average
shares used in computing net loss per common share - basic |
|
|
6,254,659 |
|
|
|
5,662,338 |
|
|
|
6,118,212 |
|
|
|
5,624,275 |
|
|
Weighted average
shares used in computing net loss per common share – diluted |
|
|
6,254,659 |
|
|
|
5,662,338 |
|
|
|
6,118,212 |
|
|
|
5,624,275 |
|
|
NEXGEL, INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX
MONTHS ENDED JUNE 30, 2024 AND 2023
(Unaudited)(in thousands)
|
|
Six Months EndedJune 30, |
|
|
|
2024 |
|
|
2023 |
|
Operating
Activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,738 |
) |
|
$ |
(1,509 |
) |
Adjustments to
reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Income (loss) attributable to non-controlling interest in joint
venture |
|
|
(146 |
) |
|
|
60 |
|
Depreciation and amortization |
|
|
144 |
|
|
|
68 |
|
Changes in ROU asset and operating lease liability |
|
|
21 |
|
|
|
21 |
|
Share-based compensation and restricted stock vesting |
|
|
118 |
|
|
|
53 |
|
Gain on investment in marketable securities |
|
|
(57 |
) |
|
|
124 |
|
Changes in fair value of warrant liability |
|
|
(26 |
) |
|
|
(77 |
) |
|
|
|
|
|
|
|
|
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
28 |
|
|
|
(728 |
) |
Inventory |
|
|
(127 |
) |
|
|
(577 |
) |
Prepaid expenses and other assets |
|
|
(67 |
) |
|
|
(226 |
) |
Accounts payable |
|
|
13 |
|
|
|
793 |
|
Accrued expenses and other current liabilities |
|
|
(114 |
) |
|
|
— |
|
Deferred revenue |
|
|
159 |
|
|
|
72 |
|
Net Cash
Used in Operating Activities |
|
|
(1,792 |
) |
|
|
(1,926 |
) |
|
|
|
|
|
|
|
|
|
Investing
Activities |
|
|
|
|
|
|
|
|
Proceeds from sales of marketable securities |
|
|
57 |
|
|
|
4,772 |
|
Capital expenditures |
|
|
(361 |
) |
|
|
(253 |
) |
Net cash paid for asset acquisition |
|
|
(400 |
) |
|
|
- |
|
Net Cash
Provided by (Used in) Investing Activities |
|
|
(704 |
) |
|
|
4,519 |
|
|
|
|
|
|
|
|
|
|
Financing
Activities |
|
|
|
|
|
|
|
|
Proceeds from equity offering, net of expenses |
|
|
946 |
|
|
|
— |
|
Investment by joint venture partner |
|
|
37 |
|
|
|
— |
|
Principal payment on financing lease liability |
|
|
(22 |
) |
|
|
— |
|
Change in contingent consideration liability |
|
|
(69 |
) |
|
|
— |
|
Principal payments of notes payable |
|
|
(27 |
) |
|
|
(3 |
) |
Net Cash
Provided by (Used in) Financing Activities |
|
|
865 |
|
|
|
(3 |
) |
Net
Decrease in Cash |
|
|
(1,631 |
) |
|
|
2,590 |
|
Cash – Beginning
of period |
|
|
2,700 |
|
|
|
1,101 |
|
Cash – End of period |
|
$ |
1,069 |
|
|
$ |
3,691 |
|
Supplemental Disclosure of Cash Flows
Information |
|
|
|
|
|
|
|
|
Cash paid during
the year for: |
|
|
|
|
|
|
|
|
Interest |
|
$ |
27 |
|
|
$ |
— |
|
Taxes |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Supplemental
Non-cash Investing and Financing activities |
|
|
|
|
|
|
|
|
Shares issued in conjunction with asset acquisition |
|
$ |
200 |
|
|
$ |
— |
|
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 |
|
NexGel (NASDAQ:NXGL)
Gráfica de Acción Histórica
De Jul 2024 a Ago 2024
NexGel (NASDAQ:NXGL)
Gráfica de Acción Histórica
De Ago 2023 a Ago 2024