Company Overview - NEXGEL, Inc. is a leading provider of healthcare, beauty, and over-the-counter (OTC) products, specializing in ultra-gentle, high-water-content hydrogels [3] - The company has developed and manufactured electron-beam, cross-linked hydrogels for over two decades [3] - NEXGEL's product brands include SilverSeal, Hexagels, Turfguard, Kenkoderm, and Silly George [3] - The company has established strategic contract manufacturing relationships with leading consumer healthcare companies [3] Event Participation - Adam Levy, the Chief Executive Officer of NEXGEL, will participate in the 6th Annual CEO Networking Event hosted by Semco Capital in Chicago on June 2, 2025 [1] - The event will feature a fireside chat with Scott Weis of Semco Capital [1] - The Annual CEO Networking Event aims to bring together leading microcap companies with unique business models and strong management teams [2]

NEXGEL (NXGL) Q1 2025 Earnings Call May 13, 2025 04:30 PM ET Company Participants Valter Pinto - Managing DirectorAdam Levy - CEO, President & DirectorJoseph F. McGuire - CFOEric Ramos - Student Portfolio Manager Conference Call Participants Naz Rahman - AnalystNone - Analyst Operator Good afternoon. I will be your conference operator today. At this time, I would like to welcome everyone to NextGel's First Quarter twenty twenty five Financial Results Conference Call. I will now turn the call over to Walter ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $2,810,000, representing a 121% increase year over year compared to $1,270,000 in Q1 2024 [5][21] - Gross margins normalized to 42.4%, compared to 37% in Q4 2024 and 43.6% in Q3 2024 [5][22] - EBITDA loss narrowed to negative $540,000 from negative $840,000 in the same period last year [6][23] - Net loss for Q1 2025 was $710,000, down from a net loss of $850,000 in Q1 2024 [23] Business Line Data and Key Metrics Changes - Contract manufacturing revenue increased by 58% year over year, driven by demand from existing customers and new partnerships [5] - Consumer branded products revenue surged by 189% year over year, significantly boosted by the addition of Silly George [5] - The company expects continued growth in both contract manufacturing and consumer products, with a robust pipeline for 2025 [8][11] Market Data and Key Metrics Changes - The company is seeing increased interest in U.S.-made gels due to potential tariff impacts, which may enhance competitiveness against imported products [19] - There is a growing market for hydrogel applications, particularly in laser hair removal, with significant interest from major companies [42] Company Strategy and Development Direction - The company plans to expand its product lines, including new offerings for MetaGel and Cancoderm, and is transitioning Silly George into a broader beauty brand [12][13] - The partnership with Stata is progressing well, with plans for additional product launches in 2025 and 2026 [14] - The company is strategically managing cash and R&D to ensure high ROI while pursuing growth opportunities [14] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about achieving $13,000,000 in revenue and cash flow positivity in 2025 despite external challenges [20] - The company is monitoring tariff situations closely and is prepared to adjust manufacturing strategies if necessary [16][19] - Management expressed confidence in the growth potential of their products and the overall market, despite uncertainties in the broader economic environment [60] Other Important Information - The company has a cash balance of approximately $1,190,000 as of March 31, 2025 [23] - The company has 7,654,537 shares of common stock outstanding as of May 13, 2025 [23] Q&A Session Summary Question: How much revenue was expected from AbbVie, and does the delay affect guidance? - Management indicated that not much revenue was baked in from AbbVie, so the delay should not significantly impact the $13,000,000 projection [25][26] Question: Can you provide details on the product launch with Stata? - The first product is Histosol, a digestive enzyme, with plans for additional digestive enzymes in the future [30] Question: Is there a seasonal improvement expected for Silly George? - Management expects seasonal growth, especially with new product launches planned for Q3 and Q4 [61][62] Question: Will transitioning manufacturing to Texas impact other business lines? - The company has built a new clean room with enough capacity to accommodate potential shifts in manufacturing [35][36] Question: Will the company survive on current cash reserves until EBITDA positive? - Management believes they can manage with current cash reserves until reaching EBITDA positivity [66]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 001-41173 NexGel, Inc. (Exact name of registrant as specified in its charter) | Delaware | 26-4042544 | | - ...

Financial Performance - First quarter 2025 revenue totaled $2.81 million, an increase of 121% compared to $1.27 million in Q1 2024[2] - Gross profit for Q1 2025 was $1.19 million, with a gross profit margin of 42.4%, up from 12.6% in Q1 2024[7] - EBITDA loss narrowed to ($0.54) million in Q1 2025, compared to ($0.84) million in Q1 2024[9] - The net loss for Q1 2025 was $0.71 million, an improvement from a net loss of $0.85 million in Q1 2024[10] - Adjusted EBITDA for the three months ended March 31, 2025, was $(468,000), compared to $(731,000) in the same period of 2024, indicating a reduction in losses[24] Revenue Expectations - The company expects to achieve at least $13 million in revenue for 2025 and positive EBITDA during the year[4] - The increase in revenue was primarily driven by sales growth in both contract manufacturing and branded products[5] Expenses and Cash Flow - Selling, general and administrative expenses increased to $1.96 million in Q1 2025 from $1.03 million in Q1 2024[8] - Cash used in operating activities decreased to $400,000 in Q1 2025 from $1,092,000 in Q1 2024, reflecting improved cash flow management[23] - Cash at the end of the period was $1,192,000, down from $2,419,000 at the end of Q1 2024, showing a decrease in liquidity[23] - Depreciation and amortization expenses increased to $114,000 in Q1 2025 from $62,000 in Q1 2024, indicating higher asset utilization[23] - Interest expense, net for Q1 2025 was $21,000, up from $15,000 in Q1 2024, suggesting increased borrowing costs[24] Investment and Financing - The company reported a gain on investment in marketable securities of $0 in Q1 2025, compared to a loss of $34,000 in Q1 2024, reflecting improved investment performance[23] - The company had no capital expenditures in Q1 2025, compared to $152,000 in Q1 2024, indicating a pause in investment activities[23] - The net cash provided by financing activities was $(215,000) in Q1 2025, a decrease from $929,000 in Q1 2024, reflecting changes in financing strategy[23] Future Plans - The company has multiple opportunities in contract manufacturing with existing customers like Cintas and new potential customers[4] - NEXGEL plans to launch several new consumer branded products throughout the remainder of 2025 and into 2026[4] Accounts Payable - The company experienced a significant increase in accounts payable, which rose to $219,000 in Q1 2025 from a decrease of $75,000 in Q1 2024, indicating potential changes in supplier payment terms[23]

Core Insights - NEXGEL, Inc. reported a significant revenue increase of 121% year-over-year for Q1 2025, totaling $2.81 million compared to $1.27 million in Q1 2024 [1][4][10] - The gross profit margin improved to 42.4% in Q1 2025, up from 12.6% in Q1 2024, indicating enhanced profitability [6][10] - The company aims to achieve $13 million in revenue for 2025 and expects to reach positive EBITDA during the year [3][10] Financial Performance - Revenue for Q1 2025 was $2.81 million, a 121% increase from $1.27 million in Q1 2024, driven by growth in both contract manufacturing and branded products [4][10] - Gross profit for the quarter was $1.19 million, compared to $0.16 million in Q1 2024, with a gross profit margin of 42.4% [6][10] - Cost of revenues increased to $1.62 million in Q1 2025 from $1.11 million in Q1 2024, aligning with revenue growth [5][10] Operating Expenses - Selling, general and administrative expenses rose to $1.96 million in Q1 2025 from $1.03 million in Q1 2024, attributed to higher compensation, marketing, and consulting fees [7][10] - EBITDA loss narrowed to ($0.54) million in Q1 2025 from ($0.84) million in Q1 2024, while adjusted EBITDA improved to ($0.47) million from ($0.73) million [8][10] Net Loss and Cash Position - The net loss for Q1 2025 was $0.71 million, an improvement from a net loss of $0.85 million in Q1 2024 [8][10] - As of March 31, 2025, the company had a cash balance of approximately $1.19 million [9][10] Future Outlook - The CEO highlighted multiple growth opportunities in contract manufacturing with existing customers and new product launches in consumer branded products [3][10] - The company remains confident in achieving its revenue guidance for 2025 and expects to improve its EBITDA performance [3][10]

Company Overview - NEXGEL, Inc. is a leading provider of ultra-gentle, high-water-content hydrogel products for healthcare and consumer applications [3] - The company has developed and manufactured electron-beam, cross-linked hydrogels for over two decades [3] - NEXGEL's product brands include Silverseal, Hexagels, Turfguard, Kenkoderm, and Silly George [3] - The company has strategic contract manufacturing relationships with leading consumer healthcare companies [3] Financial Results Announcement - NEXGEL will report its financial results for the first quarter of 2025 after the market close on May 13, 2025 [1] - A conference call will be hosted by the company at 4:30 P.M. ET on the same day to discuss the financial results [1][2] - For those unable to join the live call, a replay will be available until May 27, 2025, with specific dial-in numbers provided [2]

Company Overview - NEXGEL, Inc. is a leading provider of medical and over-the-counter (OTC) products, specializing in ultra-gentle, high-water-content hydrogels for healthcare and consumer applications [1][3] - The company has developed and manufactured electron-beam, cross-linked hydrogels for over two decades and offers brands such as SilverSeal, Hexagels, Turfguard, Kenkoderm, and Silly George [3] Upcoming Event - Adam Levy, the Chief Executive Officer of NEXGEL, will present at the Planet MicroCap Showcase: Vegas 2025, scheduled for April 22-24, 2025, at the Paris Hotel & Casino in Las Vegas, NV [1][2] - The presentation is set for April 23, 2025, at 9:30 a.m. PT, and there will be opportunities for one-on-one investor meetings [2]

Company Overview - NEXGEL, Inc. is a leading provider of medical and over-the-counter (OTC) products, specializing in ultra-gentle, high-water-content hydrogels for healthcare and consumer applications [1][3] - The company has developed and manufactured electron-beam, cross-linked hydrogels for over two decades and offers brands such as SilverSeal®, Hexagels®, Turfguard®, Kenkoderm®, and Silly George® [3] Upcoming Event - Adam Levy, the Chief Executive Officer of NEXGEL, will present at the Planet MicroCap Showcase: Vegas 2025, scheduled for April 22-24, 2025, at the Paris Hotel & Casino in Las Vegas, NV [1][2] - The presentation is set for April 23, 2025, at 9:30 a.m. PT, and will take place in Track 4 - Loire [2] Strategic Relationships - NEXGEL has established strategic contract manufacturing relationships with leading consumer healthcare companies, enhancing its market presence and operational capabilities [3]

Operations and Capacity - The company operates a manufacturing facility of 13,500 square feet, currently at 15% to 20% capacity, with the potential to produce approximately 1.4 billion square inches of product annually at full capacity[18]. - The company maintains a policy of sufficient inventory of raw materials to prevent production disruptions, despite some components being sourced from sole suppliers[32]. - The company has a major customer accounting for approximately 20% of its revenue for the year ended December 31, 2023, with a long-standing relationship of over 15 years[35]. - The company has formed a joint venture with CG Laboratories, Inc., allowing for expanded delivery of finished goods to its customer base[15]. - The company has established a joint venture with CG Laboratories, Inc., named CG Converting and Packaging, LLC, which is located in Granbury, Texas, and allows for expanded delivery of finished goods to customers[117]. Product Development and Innovation - The company has developed the NEXDrape, a surgical drape designed for patients with impaired skin, and has filed for a patent under the Patent Cooperation Treaty[23]. - The NEXDrape aims to provide benefits such as no skin irritation and the ability to deliver antiseptic agents, addressing a significant and growing market[24]. - The company is also developing NEXDerm, an adhesive tape for securing medical devices, which is designed to be gentle on the skin and easy to remove[25]. - The company is pursuing custom and white label opportunities, allowing other brands to incorporate its hydrogel products into their offerings[21]. - The company has launched a new consumer product brand, Kenkoderm, in December 2023, and a third brand, Silly George, in May 2024, as part of its consumer product 'roll-up' strategy[121]. Financial Performance - Revenues for the year ended December 31, 2024, were $8,688 thousand, an increase of $4,599 thousand or 112.5% compared to $4,089 thousand in 2023, driven by sales growth in branded consumer products[125]. - Gross profit for 2024 was $2,748 thousand, up $2,374 thousand from $374 thousand in 2023, resulting in a gross profit margin of approximately 31.6% compared to 9.1% in the prior year[126]. - Total cost of revenues increased by $2,225 thousand or 59.9% to $5,940 thousand in 2024, primarily due to sales of branded consumer products[127]. - Selling, general and administrative expenses rose by $2,476 thousand or 66.1% to $6,224 thousand in 2024, largely due to increased advertising and marketing expenses[128]. - The net loss attributable to NexGel stockholders for 2024 was $3,281,000, slightly higher than the loss of $3,157,000 in 2023[170]. Cash Flow and Capital Management - Net cash used in operating activities was $3,867 thousand in 2024, compared to $3,236 thousand in 2023[139]. - Cash and cash equivalents at the end of 2024 were $1,807 thousand, down from $2,700 thousand at the end of 2023[139]. - The company expects to continue incurring losses in the near term, with future capital raises potentially necessary to fund acquisitions and growth initiatives[146]. - The company has entered into subscription agreements for the sale of units at $5.50 per unit, aiming to raise approximately $2.0 million for working capital and corporate purposes[185]. Regulatory and Compliance - The company is currently registered as a device manufacturer and distributor with the FDA and plans to register as a drug facility when required, ensuring compliance with regulatory standards[40]. - The company is subject to various environmental regulations and has made significant investments to comply, although future costs remain unpredictable[41]. - The company is subject to extensive governmental regulations, which can lead to fines, product recalls, and delays in new product approvals[67]. Market and Competition - The company faces intense competition in the hydrogel manufacturing industry, which may lead to pricing pressure and challenges in achieving market acceptance[60]. - The company recognizes the importance of market acceptance for its products, which is crucial for future success and financial performance[53]. - The company relies heavily on Amazon and Shopify for sales and distribution, indicating a significant dependency on these platforms for consumer product revenue[57]. Internal Controls and Governance - The company has identified material weaknesses in its internal control over financial reporting, which could lead to misstatements in financial statements[85]. - The company is in the process of designing and implementing measures to remediate identified material weaknesses in internal controls[86]. - The company has a history of operating losses and may struggle to raise needed capital, raising doubts about its ability to continue as a going concern[74]. Employee and Organizational Structure - As of December 31, 2024, the company had 19 full-time employees, with 14 involved in manufacturing and regulatory matters, highlighting a strong operational workforce[45]. - The company is committed to developing a high-performance culture and talent management strategy to support its strategic goals[46]. Intellectual Property and Strategic Partnerships - The company aims to protect its intellectual property through patents and trademarks, but enforcement may be difficult and costly[70]. - The company is seeking to enter into strategic partnerships to expand its business, but may face challenges in identifying and completing these partnerships[77].