NexGel(US:NXGL)2025-05-13 21:32Financial Data and Key Metrics Changes - Revenue for Q1 2025 totaled $2,810,000, representing a 121% increase year over year compared to $1,270,000 in Q1 2024 [4][20] - Gross margins normalized to 42.4%, compared to 37% in Q4 2024 and 43.6% in Q3 2024 [4][21] - EBITDA loss narrowed to negative $540,000 from negative $840,000 in the same period last year [5][22] - Net loss for Q1 2025 was $710,000, down from a net loss of $850,000 in Q1 2024 [22] 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 [4][5] - Consumer branded products revenue surged by 189% year over year, significantly boosted by the addition of Silly George [4] - The entire consumer products portfolio saw strong expansion, with new product launches planned for 2025 [11][12] Market Data and Key Metrics Changes - The company is experiencing increased interest in U.S.-made gels due to potential tariff impacts, which may enhance competitiveness against imported products [17][18] - There is a robust pipeline of new and potential customers for 2025, indicating strong market demand [8][19] Company Strategy and Development Direction - The company aims to expand its product lines, including new offerings for MetaGel and Cancoderm, and is transitioning Silly George into a broader beauty brand [12][13] - Strategic partnerships, such as with Stata, are expected to drive growth, with plans for additional product launches in 2025 and 2026 [14][30] - The company is monitoring tariff situations closely and is prepared to adjust manufacturing strategies if necessary [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the product launch with AbbVie, despite delays, and sees it as a substantial opportunity [8][51] - The company does not foresee any weakness in consumer product sales and maintains guidance of $13,000,000 in revenue for 2025 [19][58] - Management is optimistic about achieving cash flow positivity in 2025, supported by ongoing innovation and growth [19][22] Other Important Information - The company has a cash balance of approximately $1,190,000 as of March 31, 2025 [22] - The company is exploring various financing options but prefers to avoid debt until achieving EBITDA positivity [48][64] 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 impact the projection of $13,000,000 [25] Question: Can you provide details on the product launching 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 decline in Silly George sales? - Management noted a slight decline but emphasized that it was the most profitable quarter despite being smaller than previous quarters [57] Question: Will transitioning manufacturing to Texas impact other business lines? - Management confirmed that there is enough capacity in the new clean room to accommodate potential shifts in manufacturing [35] 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 [64]