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].

Financial Data and Key Metrics Changes - For Q4 2024, revenue totaled $3.04 million, an increase of 181% compared to $1.08 million in Q4 2023 [26] - Full year 2024 revenue reached $8.69 million, up 112% from $4.09 million in 2023 [26] - Gross profit for Q4 2024 was $1.13 million, compared to $0.09 million in Q4 2023, with a gross profit margin of 37.2% versus 8.7% [28] - Net loss for Q4 2024 was $0.85 million, an improvement from a net loss of $1.1 million in Q4 2023 [31] Business Line Data and Key Metrics Changes - Contract manufacturing significantly contributed to growth in 2024, driven by demand from existing customers and new partnerships, including with Cintas and Owens & Minor [12] - The consumer products segment saw strong expansion, with brands like Medagel, Kenkoderm, and Silly George contributing to growth [18] - The acquisition of Silly George led to an increase in annual revenue run rate from $2 million to over $5 million [20] Market Data and Key Metrics Changes - The partnership with Cintas began shipping SilverSeal in Q4 2024, with additional orders expected in Q1 and Q2 2025 [13] - The company anticipates a healthy pipeline of potential new customers for 2025, particularly in the laser hair removal market [16] Company Strategy and Development Direction - The company aims to continue driving innovation and growth across key business segments, focusing on long-term value for shareholders [24] - Plans for 2025 include launching new products in the consumer segment and expanding partnerships, particularly with STADA [21][22] - The company is strategically managing R&D exploration to ensure high ROI and alignment with its vision [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving positive adjusted EBITDA in 2025, with expectations for revenue growth to at least $13 million [23] - The company views Q1 2025 as traditionally weak but expects improvement in adjusted EBITDA compared to previous quarters [37] - Management highlighted the importance of partnerships and new product launches in driving future growth [24][17] Other Important Information - The company had a cash balance of approximately $1.81 million as of December 31, 2024 [33] - The fourth quarter net loss included one-time inventory write-offs totaling $243,000, which are not expected to recur [11][32] Q&A Session Summary Question: Guidance on adjusted EBITDA and timeline to reach positive cash flow - Management indicated that they expect to improve adjusted EBITDA in Q1 2025 and anticipate significant growth in Q2 as new customers come on board [37] Question: Details on the pipeline of new customers and industry applications - Management mentioned having four large opportunities in the pipeline, with varying timelines for development and market entry [39] Question: Market opportunity for laser hair removal and promotional strategy - The company is partnering with Innovative Optics to leverage their relationships in the laser hair removal market, with plans to start selling products around mid-2025 [44][47] Question: Update on AbbVie Acoustic device launch - Management confirmed that they are on schedule to ship products to AbbVie in Q2 2025, with initial orders expected in Q1 [49]

Financial Data and Key Metrics Changes - For Q4 2024, revenue totaled $3.04 million, an increase of 181% compared to $1.08 million for Q4 2023 [26] - Full year 2024 revenue reached $8.69 million, up 112% from $4.09 million in 2023 [26] - Gross profit for Q4 2024 was $1.13 million, compared to $0.09 million for Q4 2023, with a gross profit margin of 37.2% [28] - Net loss for Q4 2024 was $0.85 million, an improvement from a net loss of $1.1 million in Q4 2023 [31] Business Line Data and Key Metrics Changes - The growth in revenue was primarily driven by branded consumer products and contract manufacturing [27] - Contract manufacturing saw increased demand from existing customers and new partnerships, notably with Cintas and Owens & Minor [12] - The consumer products segment expanded significantly, with brands like Medagel, Kenkoderm, and Silly George contributing to growth [18] Market Data and Key Metrics Changes - The partnership with Cintas is expected to enhance brand awareness and revenue growth for SilverSeal [14] - The company anticipates a healthy pipeline of potential new customers for 2025, indicating strong market demand [14] Company Strategy and Development Direction - The company aims to continue driving innovation and growth across key business segments, focusing on long-term shareholder value [24] - NEXGEL plans to expand its product offerings in 2025, including new products under the Medagel and Kenkoderm brands [18][19] - The company is strategically managing R&D exploration to ensure high ROI and alignment with its vision [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving positive adjusted EBITDA in 2025, with expectations of continued revenue growth [37] - The company expects Q1 2025 revenue to be at least $2.75 million, with a target of at least $13 million for the full year [23] - Management highlighted the importance of partnerships and new product launches in driving future growth [24] Other Important Information - The company had a cash balance of approximately $1.81 million as of December 31, 2024 [33] - NEXGEL has 7,654,038 shares of common stock outstanding as of March 24, 2025 [33] Q&A Session Summary Question: Guidance on adjusted EBITDA and timeline to reach break-even - Management indicated that they expect to improve adjusted EBITDA in Q1 2025 and anticipate significant growth in Q2 as new customers come on board [37] Question: Details on the pipeline of new customers and industries - Management mentioned having four large opportunities progressing well, with varying timelines for onboarding and market entry [39] Question: Market opportunity for laser hair removal and promotional strategy - The company is partnering with Innovative Optics to leverage their relationships in the laser hair removal market, with plans to start selling products around mid-year 2025 [42][46] Question: Update on AbbVie Acoustic device launch - Management confirmed that they are on schedule to ship products to AbbVie in Q2 2025, with initial orders being received in Q1 [48]

Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the Asia-Pacific region [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8%, primarily due to increased marketing and R&D investments [3]. Market Expansion - The company successfully entered two new markets in Europe, contributing to a 20% increase in international sales [4]. - A new distribution center was opened in South America to support regional growth [1]. - Strategic partnerships were formed with local retailers in Southeast Asia to enhance market penetration [2]. Product Development - Launched three new products in the tech segment, which accounted for 25% of total revenue [3]. - R&D spending increased by 10% to accelerate innovation and product differentiation [4]. - Customer feedback on the latest product line has been overwhelmingly positive, with a 95% satisfaction rate [1]. Operational Efficiency - Implemented new supply chain management software, reducing logistics costs by 5% [2]. - Streamlined manufacturing processes, resulting in a 7% increase in production output [3]. - Employee training programs were expanded, leading to a 15% improvement in operational efficiency [4]. Strategic Initiatives - The company announced a new sustainability initiative aimed at reducing carbon emissions by 20% over the next five years [1]. - A share buyback program was initiated to return value to shareholders, with $500 million allocated for repurchases [2]. - Plans to invest $1 billion in digital transformation over the next three years were unveiled [3]. Risk Management - Identified potential risks in the supply chain due to geopolitical tensions and implemented contingency plans [4]. - Increased insurance coverage for key assets to mitigate potential financial losses [1]. - Conducted regular risk assessments to ensure compliance with evolving regulatory requirements [2].

Core Insights - NEXGEL, Inc. reported record financial results for Q4 and full year 2024, with Q4 revenue of $3.04 million, a 181% increase from $1.08 million in Q4 2023, and full year revenue of $8.69 million, up 112% from $4.09 million in 2023 [1][8][4] - The company has achieved over 100% revenue growth year-over-year for three consecutive years and expects to generate $13 million in revenue for 2025 while achieving positive EBITDA [1][4] Fourth Quarter 2024 Financial Highlights - Net revenue for Q4 2024 was $3.04 million, compared to $1.08 million in Q4 2023 and $2.94 million in Q3 2024 [6][8] - Gross profit for Q4 2024 was $1.13 million, with a gross profit margin of 37.2%, compared to $0.09 million and 8.7% in Q4 2023 [10] - The net loss for Q4 2024 was $0.85 million, an improvement from a net loss of $1.10 million in Q4 2023 [13] Full Year 2024 Financial Highlights - Total revenue for 2024 was $8.69 million, an increase from $4.09 million in 2023 [6][8] - Gross profit for the full year was $2.75 million, with a gross profit margin of 31.6%, compared to $0.37 million and 9.2% in 2023 [10] - The net loss for 2024 was $3.28 million, slightly higher than the net loss of $3.16 million in 2023 [13] Operational Highlights - The company made its first shipments of SilverSeal to Cintas in Q4 2024, contributing to revenue growth [4][15] - NEXGEL successfully acquired the international beauty brand Silly George, increasing its annual revenue run rate from $2 million to over $5 million [7] - The company is focusing on optimizing its brand portfolio and launching new products to enhance customer loyalty [4] Future Outlook - NEXGEL anticipates revenue of at least $2.75 million in Q1 2025, which is typically the weakest quarter of the year [4] - The company maintains a healthy pipeline of potential new customers for 2025 [4]

Core Viewpoint - NEXGEL, Inc. is set to report its financial results for the fourth quarter and full year ended December 31, 2024, on March 24, 2025, after market close, followed by a conference call to discuss the results [1]. Company Overview - NEXGEL, Inc. is a prominent provider of ultra-gentle, high-water-content hydrogel products for healthcare and consumer applications, based in Langhorne, Pennsylvania [3]. - The company has over two decades of experience in developing and manufacturing electron-beam, cross-linked hydrogels [3]. - NEXGEL's product brands include Silverseal, Hexagels, Turfguard, Kenkoderm, and Silly George, and it maintains strategic contract manufacturing relationships with leading consumer healthcare companies [3]. Conference Call Details - The conference call to discuss the financial results will take place on March 24, 2025, at 4:30 p.m. ET [2]. - Interested parties can join the live call via U.S. toll-free number 1-800-245-3047 or international number 1-203-518-9765 [2]. - A replay of the conference call will be available until April 3, 2025, with access codes provided for participants [2].

Core Insights - NEXGEL, Inc. is set to present at the iAccess Alpha Virtual Best Ideas Spring Investment Conference on March 25-26, 2025, with CEO Adam Levy leading the presentation [1][2]. Company Overview - NEXGEL is a prominent 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 over two decades of experience in developing and manufacturing electron-beam, cross-linked hydrogels [3]. - NEXGEL's product brands include SilverSeal®, Hexagels®, Turfguard®, Kenkoderm®, and Silly George® [3]. - The company maintains strategic contract manufacturing relationships with leading consumer healthcare companies [3].

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 been developing and manufacturing 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] Upcoming Presentation - Adam Levy, the Chief Executive Officer of NEXGEL, will present at the Webull Consumer Virtual Webinar on February 18, 2025, at 2:40 p.m. ET [1][2] - A webcast of the presentation will be available at the provided link [2] - Investors can schedule one-on-one meetings with Mr. Levy through Webull or by contacting KCSA Strategic Communications [2]

Core Insights - NEXGEL, Inc. anticipates fourth quarter 2024 revenue of approximately $3.0 million, leading to a total revenue of about $8.6 million for the year, marking over 100% year-over-year growth for the third consecutive year [1][3] - The company projects at least $13 million in revenue for 2025 and aims to achieve positive cash flow from operations during that year [1][3] Business Segments - NEXGEL focuses on three core segments: contract manufacturing and white label, consumer products, and aspirational medical device development, which are expected to drive significant shareholder value [4] - The contract manufacturing and white label segment has been pivotal in growth, driven by increased demand from existing customers and onboarding of new global corporations [5] - Consumer products have seen remarkable expansion, particularly through the success of the Medagel brand and acquisitions of Kenkoderm and Silly George, with new product launches anticipated in 2025 [7][8] Customer and Product Developments - Two new large international customers have begun generating revenue, with one expected to contribute in the fourth quarter of 2024 and the other in the current quarter [6] - The partnership with Stada is progressing well, with the first product exceeding projections and two additional product launches expected in the second half of 2025 [9] Innovation and Future Opportunities - NEXGEL is exploring various applications for its high-water-content hydrogels, including a preclinical study using a hydrogel patch to deliver topical apremilast for treating stubborn lesions [10] - The company is optimistic about future opportunities and has a strong foundation for growth, with significant potential in its key business segments [11][12]

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]