Core Insights - NEXGEL, Inc. has appointed Joseph F. McGuire as Chief Financial Officer effective January 1, 2025, while the current CFO Adam E. Drapczuk III will transition to a consulting role [1][2] - The CEO, Adam Levy, emphasized the importance of acquiring experienced professionals to support the company's growth, highlighting McGuire's extensive background in public company finance [2] - McGuire brings over 30 years of experience in financial roles across various industries, including healthcare and financial services, and has previously guided a biotechnology company through its IPO [2][3] Company Overview - NEXGEL is a provider of healthcare, beauty, and over-the-counter products, specializing in ultra-gentle, high-water-content hydrogels [3] - The company has been developing and manufacturing electron-beam, cross-linked hydrogels for over two decades and has established brands such as SilverSeal and Hexagels [3] - NEXGEL maintains strategic contract manufacturing relationships with leading consumer healthcare companies [3]

Financial Data and Key Metrics - Revenue for Q3 2024 totaled $2.94 million, a 141% YoY increase and a 104% sequential increase [6] - Gross profit margin for Q3 2024 was 43.6%, compared to 28.2% in Q3 2023 and 28.5% in Q2 2024 [7] - Adjusted EBITDA improved from a loss of $788,000 in Q2 2024 to $347,000 in Q3 2024 [8] - Net loss for Q3 2024 was $754,000, compared to a net loss of $552,000 in Q3 2023 and $979,000 in Q2 2024 [29] - Cash balance as of September 30, 2024, was approximately $1.1 million, with an additional $2 million raised through a financing round [29][23] Business Line Performance - Branded consumer revenue increased 99% sequentially, driven by the Silly George brand, which is now on a $5 million annual run rate [7][9][10] - Contract manufacturing revenue increased 103% sequentially to $864,000 in Q3 2024, following the expansion of the Texas facility [12] - The company's partnership with STADA resulted in the launch of Histasolv, a leading diamine oxidase enzyme supplement in Europe, generating over $20 million in annualized revenues [13] - A supply agreement with Cintas Corporation for the distribution of SilverSeal is expected to contribute to Q4 2024 revenue growth [14][15] Market and Strategic Developments - The company is exploring medical device applications, including a hydrogel solution for laser hair removal, with a human trial underway and top-line data expected in Q4 2024 [16][17][18][19] - The appointment of Kip Crecca to the Scientific Advisory Board brings expertise in medical device sales and management, supporting the company's R&D efforts [20] - The company expects Q4 2024 revenue to exceed $3 million, with operating cash flow approaching positive territory [22] - Revenue from the partnership with AbbVie for gel pads is expected to start in Q1 2025 [22] Management Commentary on Industry and Outlook - Management highlighted the importance of achieving cash flow positivity, which will allow the company to shift from defense to offense, potentially pursuing acquisitions and expansions [32][33] - The company is optimistic about the holiday season, particularly for the Silly George brand, which historically sees a sales boost during this period [37][38] - Expansion into European markets and retail distribution in the US is progressing, with potential deals expected to materialize in H1 2025 [39][40] Other Important Information - The company completed a $2 million financing round with participation from insiders, providing working capital for inventory and marketing [23] - As of November 13, 2024, the company had 6,790,777 shares of common stock outstanding, with an additional 772,272 shares anticipated from the recent offering [29] Q&A Session Summary Question: Strategic initiatives post cash flow positivity - The company plans to focus on acquisitions, expansion, and developing products with large customers [32][33] Question: Regulatory steps for laser hair removal hydrogel - No regulatory approval is required for the hydrogel study, which aims to demonstrate plume suppression and pain reduction [34][35] - Revenues from this application could start as early as H1 2025 [37] Question: Holiday season expectations for Silly George - The company anticipates a significant sales boost during the holiday season, particularly for Silly George products [37][38] Question: Expansion into retail and European markets - The company is in discussions with major retailers and expects to finalize European deals in H1 2025 [39][40] Question: Gross margin outlook for 2025 - Contract manufacturing gross margins are expected to improve significantly, with ranges of 35%-45% for the Texas facility and 40%-50% for the Langhorne facility [49][50] Question: Cintas distribution rollout - Cintas will distribute SilverSeal to over 1 million businesses, with significant revenue potential and brand awareness benefits [51][52] Question: Silly George acquisition success - The acquisition of Silly George has been highly successful, with the brand resonating well with consumers [53][54]

Financial Results - NexGel, Inc. reported preliminary, unaudited revenue results for Q3 2024, with figures subject to customary quarter-end adjustments[5]. - The press release detailing the financial results was issued on October 10, 2024[5]. - The financial information provided is not deemed "filed" under the Securities Exchange Act of 1934[5]. Company Classification - The company is classified as an emerging growth company under the Securities Act of 1933[3]. Report Details - The report was signed by Adam Levy, Chief Executive Officer, on October 10, 2024[6].

Revenue Growth - Revenues for the three months ended September 30, 2024 increased by 140.8% to $2,940 thousand compared to $1,221 thousand in the same period in 2023, driven by growth in branded consumer products, including $1,373 thousand from Silly George[168] - Revenues for the nine months ended September 30, 2024 increased by 87.8% to $5,647 thousand compared to $3,007 thousand in the same period in 2023, with $1,753 thousand contributed by Silly George since its acquisition on May 15, 2024[184] Gross Profit and Margin - Gross profit for the three months ended September 30, 2024 increased to $1,282 thousand, up from $344 thousand in the same period in 2023, with gross profit margin improving to 43.6% from 28.2%[174] - Gross profit increased by $1,508 million to $1,969 million for the nine months ended September 30, 2024, compared to $461 million for the same period in 2023, driven by branded consumer products[185] - Gross profit margin improved to 34.9% for the nine months ended September 30, 2024, up from 15.3% in the same period in 2023[185] Cost of Revenues - Cost of revenues for the three months ended September 30, 2024 increased by 89.1% to $1,658 thousand, primarily due to higher sales of branded consumer products, including Silly George and Kenkoderm[175] - Cost of revenues increased by $1,132 million (44.5%) to $3,678 million for the nine months ended September 30, 2024, primarily due to higher materials and finished products costs[187] Selling, General, and Administrative Expenses - Selling, general and administrative expenses for the three months ended September 30, 2024 increased by 117.9% to $2,070 thousand, driven by higher advertising, marketing, and Amazon fees, which increased by 460.1% to $997 thousand[177][180] - Selling, general, and administrative expenses increased by $1,975 million (75.1%) to $4,604 million for the nine months ended September 30, 2024, driven by higher advertising, marketing, and Amazon fees[188] - Advertising, marketing, and Amazon fees increased by $1,255 million (286.5%) to $1,693 million for the nine months ended September 30, 2024, due to promoting Kenkoderm and Silly George[191] Research and Development Expenses - Research and development expenses decreased to $0 for the three months ended September 30, 2024, compared to $6 thousand in the same period in 2023, as the company focused on existing products[184] - Research and development expenses decreased by $12 million (13.3%) to $78 million for the nine months ended September 30, 2024[196] Acquisitions and Joint Ventures - The company expanded its product portfolio in December 2023 with the acquisition of Kenkoderm, a skincare line focused on psoriasis, marking its first venture into products unrelated to its core gel technology[164] - In May 2024, the company acquired Silly George, a beauty and cosmetics brand, further diversifying its retail sales presence beyond its core gel technology[165] - The company formed a joint venture on March 1, 2023, acquiring a 50% interest in a converting and packaging business, expanding its capacity to offer a variety of gel shapes and sizes[163][166] - The company entered into another joint venture on January 6, 2023, acquiring a 50% interest to pursue branded consumer product retail opportunities and develop new patch products[166] Cash Flow and Financial Position - Net cash used in operating activities was $3,008 million for the nine months ended September 30, 2024, compared to $2,649 million for the same period in 2023[197] - The company had $1,059 million in cash and cash equivalents as of September 30, 2024, down from $2,700 million at December 31, 2023[197] Future Plans and Expectations - The company plans to explore new product channel sales in consumer products, such as cosmetics, athletic products, and proprietary medical devices[202] - The company expects to continue incurring losses in the near-term future and may consider raising capital through equity or debt offerings to fund potential acquisitions[204]

Quarterly revenue growth driven by a sequential increase of 99% in branded consumer products and 103% in contract manufacturing Gross profit margin for the quarter was 43.6% compared to 28.2% in Q3 of 2023 and 28.5% in Q2 of 2024 LANGHORNE, Pa., Nov. 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 record third quarter revenue of $2.94 mil ...

LANGHORNE, Pa., Nov. 11, 2024 (GLOBE NEWSWIRE) -- NEXGEL, Inc. (“NEXGEL” or the “Company”) (NASDAQ: NXGL), a leading provider of medical and over-the-counter (OTC) products including ultra-gentle, high-water-content hydrogels for healthcare and consumer applications, today announced it has entered into definitive agreements for the issuance and sale of an aggregate of 727,272 of its shares of common stock and the issuance of warrants to purchase up to an aggregate of 363,636 shares of common stock for a com ...

LANGHORNE, Pa., Oct. 11, 2024 (GLOBE NEWSWIRE) -- NEXGEL, Inc. ("NEXGEL" or the "Company") (NASDAQ: "NXGL"), a leading provider of medical and over-the-counter (OTC) products including ultra-gentle, high-water-content hydrogels for healthcare and consumer applications, today announced that Adam Levy, Chief Executive Officer, is scheduled to participate in the following October 2024 investor conferences. Maxim's Healthcare Virtual Summit Date: October 15-17, 2024 Presentation Format: Fireside Chat with Naz R ...

LANGHORNE, Pa., Oct. 04, 2024 (GLOBE NEWSWIRE) -- NEXGEL, Inc. ("NEXGEL" or the "Company") (NASDAQ: "NXGL"), a leading provider of medical and over-the-counter (OTC) products including ultra-gentle, high-water-content hydrogels for healthcare and consumer applications, today announced the appointment of Kip Crecca to its Scientific Advisory Board. "We are thrilled to appoint Kip to our Scientific Advisory Board. He adds to our team a wealth of knowledge and experience as a top medical device sales professio ...

Revenue Growth - Revenue for Q2 2024 increased by 23.4% to $1.44 million compared to $1.167 million in Q2 2023, driven by growth in branded consumer products, including $380,000 from Silly George sales[136] - Revenue increased by $920K (51.5%) to $2,706K for the six months ended June 30, 2024, driven by growth in branded consumer products, including $380K from Silly George[147] Gross Profit and Margin - Gross profit for Q2 2024 rose to $410,000, a 28.5% gross margin, up from $175,000 (15.0% gross margin) in Q2 2023, primarily due to increased branded consumer product sales[139] - Gross profit rose by $570K to $687K, with a gross profit margin of 25.4% for the six months ended June 30, 2024, compared to 6.6% in the same period in 2023[147] Cost of Revenues - Cost of revenues increased by 3.8% to $1.03 million in Q2 2024, aligned with higher sales of branded consumer products, including Silly George and Kenkoderm acquisitions[141] - Cost of revenues increased by $350K (21.0%) to $2,019K, primarily due to higher materials and finished products costs aligned with branded consumer product sales[149] Selling, General, and Administrative Expenses - Selling, general, and administrative expenses increased by 57.4% to $1.388 million in Q2 2024, driven by higher compensation, advertising, and professional fees[142] - Selling, general, and administrative expenses increased by $855K (50.9%) to $2,534K, driven by higher advertising, marketing, and Amazon fees[149] Advertising and Marketing Expenses - Advertising and marketing expenses surged by 166.3% to $442,000 in Q2 2024, primarily due to promoting Kenkoderm and Silly George brands[143] - Advertising, marketing, and Amazon fees surged by $435K (167.3%) to $695K, attributed to promoting Kenkoderm and Silly George[150] Research and Development - Research and development expenses increased by 38.2% to $76,000 in Q2 2024, reflecting costs for potential new products[146] Acquisitions - The company acquired Kenkoderm in December 2023 for $546,500, with additional quarterly earn-outs of $136,625 based on performance[132][133] - The company acquired Silly George in May 2024 for $400,000 in cash and $200,000 in shares, with future earn-outs based on 20% of net profits[134] Joint Ventures and Product Expansion - The company formed joint ventures with CG Labs (March 2023) and Moiety (January 2023) to expand into converting, packaging, and branded consumer product opportunities[130][131] - The company expanded its product portfolio with Kenkoderm (skincare for psoriasis) and Silly George (beauty and cosmetics) in 2023 and 2024, respectively[130][134] Cash Flow and Working Capital - Net cash used in operating activities was $1,792K for the six months ended June 30, 2024, compared to $1,926K in the same period in 2023[153] - Cash and cash equivalents decreased to $1,069K as of June 30, 2024, from $2,700K at December 31, 2023[153] - Working capital decreased to $955K as of June 30, 2024, from $2,503K at December 31, 2023, due to operational losses and capital expenditures[155] Future Plans and Expectations - The company plans to explore new product channels, including cosmetics, athletic products, and proprietary medical devices, to expand its customer base[158] - The company expects to continue incurring losses in the near term and may consider equity or debt offerings to fund potential acquisitions[160]

NEXGEL, Inc. (NASDAQ:NXGL) Q2 2024 Earnings Conference Call August 14, 2024 4:30 PM ET Company Participants Valter Pinto - Managing Director of KCSA Strategic Communications Adam Levy - Chief Executive Officer, President and Director Adam Drapczuk - Chief Financial Officer Conference Call Participants William Odenthal - COVA Capital Partners Eric Ramos - Titan Capital Management Operator Good afternoon. I will be your conference operator today. At this time, I'd like to welcome everyone to NEXGEL's Second Q ...