Financial Data and Key Metrics Changes - Revenue for Q1 2025 was 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 840,000 in the same period last year [6][23] - Net loss for Q1 2025 was 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 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]
NexGel(NXGL) - 2025 Q1 - Earnings Call Transcript