Revenue Concentration - The company reported that three major customers accounted for approximately 78% of its revenue for the year ended December 31, 2020, with individual contributions of 45%, 22%, and 11% respectively[20] - The company has been supplying its major customers for over fifteen years and does not anticipate any change in their intentions to use its services[20] Business Strategy - The company is implementing a new strategy to transition into a consumer products business focused on proprietary branded products and white label opportunities[14] - The company has historically served as a contract manufacturer, supplying gels to third parties who incorporate them into their own products[14] Research and Development - The company did not incur any research and development costs for the years ended December 31, 2020, and 2019, and plans to commit resources to R&D only as cash resources allow[30] - The company has not incurred any research and development costs for the years ended December 31, 2020, and 2019, and plans to commit resources to R&D only as cash resources allow[30] Employee and Operations - As of December 31, 2020, the company had eight full-time employees, with five involved in manufacturing and regulatory matters[32] - The company currently has eight full-time employees, with five involved in manufacturing and regulatory matters[32] Product and Market Focus - The company specializes in high water content, electron beam cross-linked, aqueous polymer hydrogels used for various applications including wound care and drug delivery[14] - The company’s hydrogels are marketed for applications including drug delivery, moist wound dressings, and cosmetic uses[15] - The company’s hydrogels are marketed for various applications, including drug delivery, wound care, and cosmetic uses[15] Intellectual Property - The company holds patent rights to one patent in Europe, which is set to expire in September 2021, and has exclusive licenses for two issued patents related to transdermal patches[21] - The company has a patent in Europe covering the use of lignin for inhibiting restenosis and thrombosis formation, which is set to expire in September 2021[21] Supply Chain - The company relies on several principal suppliers for raw materials, including Berry Global, Inc., DeWolf Chemical, Inc., and Univar Inc.[17] Regulatory Compliance - The company is currently registered as a device manufacturer and human tissue distributor with the FDA and intends to register as a drug facility when required[26] - The company is currently registered as a device manufacturer and human tissue distributor with the FDA and intends to register as a drug facility when required[26] Inventory Management - The company maintains sufficient inventory of components to avoid significant production disruptions[17]
NexGel(NXGL) - 2020 Q4 - Annual Report