NEXGEL Reports Record Second Quarter 2024 Revenue of $1.44 Million
NEXGEL (NASDAQ: NXGL) reported record Q2 2024 revenue of $1.44 million, up 23.4% year-over-year and 13.7% sequentially. The company reiterated Q3 and Q4 2024 revenue guidance of $2.2 million and $2.6 million, respectively. Key highlights include:
1. Acquisition of Silly George, contributing significantly to revenue growth
2. Partnership with STADA for Histasolv® distribution in North America
3. Agreement with Cintas for SilverSeal distribution
4. Gross profit increased to $410,000, with margin improving to 28.5%
5. Net loss widened to $979,000 due to increased marketing expenses
6. Closed $1.11 million registered direct offering post-quarter
NEXGEL expects continued growth in branded consumer products and normalization of contract manufacturing revenue in H2 2024.
NEXGEL (NASDAQ: NXGL) ha riportato un fatturato record di Q2 2024 pari a 1,44 milioni di dollari, in aumento del 23,4% rispetto all'anno precedente e del 13,7% rispetto al trimestre precedente. L'azienda ha ribadito le previsioni di fatturato per Q3 e Q4 2024 di 2,2 milioni di dollari e 2,6 milioni di dollari, rispettivamente. Tra i punti salienti ci sono:
1. Acquisizione di Silly George, che ha contribuito in modo significativo alla crescita del fatturato
2. Collaborazione con STADA per la distribuzione di Histasolv® in Nord America
3. Accordo con Cintas per la distribuzione di SilverSeal
4. Utile lordo aumentato a 410.000 dollari, con un margine in miglioramento al 28,5%
5. La perdita netta è aumentata a 979.000 dollari a causa dell'innalzamento delle spese di marketing
6. Chiusura di un'offerta diretta registrata di 1,11 milioni di dollari dopo il trimestre
NEXGEL prevede una continua crescita nei prodotti di consumo a marchio e una normalizzazione dei ricavi dalla produzione per conto terzi nella seconda metà del 2024.
NEXGEL (NASDAQ: NXGL) reportó ingresos récord en el Q2 2024 de 1,44 millones de dólares, un aumento del 23,4% interanual y del 13,7% secuencialmente. La compañía reiteró su guía de ingresos para el Q3 y Q4 de 2024 en 2,2 millones de dólares y 2,6 millones de dólares, respectivamente. Los aspectos destacados incluyen:
1. Adquisición de Silly George, contribuyendo significativamente al crecimiento de los ingresos
2. Alianza con STADA para la distribución de Histasolv® en América del Norte
3. Acuerdo con Cintas para la distribución de SilverSeal
4. Las ganancias brutas aumentaron a 410.000 dólares, con un margen en mejora al 28,5%
5. La pérdida neta se amplió a 979.000 dólares debido al aumento de los gastos de marketing
6. Cierre de una oferta directa registrada por 1,11 millones de dólares después del trimestre
NEXGEL espera un crecimiento continuo en productos de consumo de marca y la normalización de los ingresos por fabricación por contrato en la segunda mitad de 2024.
NEXGEL (NASDAQ: NXGL)은 2024년 2분기 기록적인 수익 144만 달러를 보고했으며, 이는 작년 동기 대비 23.4% 증가하고 전분기 대비 13.7% 증가한 수치입니다. 회사는 각각 220만 달러와 260만 달러의 2024년 3분기 및 4분기 수익 전망을 reiterate했습니다. 주요 요점은 다음과 같습니다:
1. Silly George 인수로 수익 성장에 크게 기여
2. 북미 지역 Histasolv®Distribution을 위한 STADA와의 파트너십
3. Cintas와 SilverSeal 배급을 위한 협정
4. 총 이익은 41만 달러로 증가했으며, 마진은 28.5%로 개선됨
5. 마케팅 비용 증가로 인해 순손실이 97만 9천 달러로 확대됨
6. 분기 후 111만 달러의 등록 직거래를 종료함
NEXGEL은 2024년 하반기 브랜드 소비자 제품의 지속적인 성장과 계약 제조 수익의 정상화를 기대하고 있습니다.
NEXGEL (NASDAQ: NXGL) a rapporté des revenus record de 1,44 million de dollars pour le T2 2024, en hausse de 23,4 % par rapport à l'année précédente et de 13,7 % par rapport au trimestre précédent. L'entreprise a réaffirmé ses prévisions de revenus pour le T3 et le T4 2024 de 2,2 millions de dollars et 2,6 millions de dollars, respectivement. Les principaux points forts incluent :
1. Acquisition de Silly George, contribuant de manière significative à la croissance des revenus
2. Partenariat avec STADA pour la distribution de Histasolv® en Amérique du Nord
3. Accord avec Cintas pour la distribution de SilverSeal
4. Le bénéfice brut a augmenté à 410 000 dollars, avec une marge améliorée à 28,5 %
5. La perte nette s'est creusée à 979 000 dollars en raison de l'augmentation des dépenses de marketing
6. Clôture d'une offre directe enregistrée de 1,11 million de dollars après le trimestre
NEXGEL s'attend à une croissance continue des produits de consommation de marque et à une normalisation des revenus de fabrication sous contrat au second semestre 2024.
NEXGEL (NASDAQ: NXGL) hat einen Rekordumsatz im Q2 2024 von 1,44 Millionen Dollar gemeldet, was einem Anstieg von 23,4% im Jahresvergleich und 13,7% im Vergleich zum Vorquartal entspricht. Das Unternehmen bekräftigte die Umsatzprognose für Q3 und Q4 2024 von jeweils 2,2 Millionen Dollar und 2,6 Millionen Dollar. Wichtige Höhepunkte sind:
1. Akquisition von Silly George, die erheblich zum Umsatzwachstum beigetragen hat
2. Partnerschaft mit STADA für die Distribution von Histasolv® in Nordamerika
3. Vereinbarung mit Cintas über die Distribution von SilverSeal
4. Bruttogewinn erhöht sich auf 410.000 Dollar, mit einer Verbesserung der Marge auf 28,5%
5. Nettoverlust ausgeweitet auf 979.000 Dollar aufgrund gestiegener Marketingausgaben
6. Abschluss eines registrierten Direktangebots über 1,11 Millionen Dollar nach dem Quartal
NEXGEL erwartet weiterhin Wachstum bei markenbasierten Verbrauchermarken und die Normalisierung der Einnahmen aus Vertragsfertigung im zweiten Halbjahr 2024.
- Record Q2 2024 revenue of $1.44 million, up 23.4% year-over-year
- Strong Q3 and Q4 2024 revenue guidance of $2.2 million and $2.6 million, respectively
- Acquisition of Silly George contributing $380,000 in July sales on Shopify alone
- Gross profit margin improved to 28.5% from 15.0% in Q2 2023
- Partnerships with STADA and Cintas for product distribution
- Closed $1.11 million registered direct offering for working capital and inventory
- Net loss increased to $979,000 from $642,000 in Q2 2023
- Selling, general and administrative expenses increased by 57.4% to $1.39 million
- Contract manufacturing revenue decreased due to facility relocation
- Research and development expenses increased by $21,000 to $76,000
Insights
NEXGEL's Q2 2024 results show promising growth, with revenue reaching a record
However, the increased SG&A expenses, up
The guidance for Q3 and Q4 2024 revenue of
NEXGEL's strategic moves in Q2 2024 position it well in the growing hydrogel market. The acquisition of Silly George, an international beauty company, expands NEXGEL's consumer product portfolio and global reach. This diversification strategy could help mitigate risks associated with contract manufacturing fluctuations.
The partnership with STADA for Histasolv® (DAOSIN®) distribution in North America opens up new market opportunities. Similarly, the agreement with Cintas for SilverSeal distribution leverages Cintas' extensive business network, potentially boosting B2B sales.
The ongoing institutional review board study on hydrogel application during laser hair removal demonstrates NEXGEL's commitment to innovation and could lead to new product applications. These initiatives, combined with the projected revenue growth, indicate a company actively expanding its market presence and product offerings in the healthcare and consumer sectors.
LANGHORNE, Pa., Aug. 14, 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 second quarter 2024 revenue of
Adam Levy, NEXGEL’s Chief Executive Officer, commented, “The second quarter of 2024 was a record revenue quarter for the Company, totaling
Second Quarter 2024 Business and Operational Highlights
- Acquired Silly George, an international beauty company with specialty in eye and eyelash consumer products.
- Announced the first product, Histasolv®, sold as DAOSIN® in Europe, to be distributed in partnership with STADA Arzneimittel AG (“STADA”) in North America.
- Signed agreement with Cintas Corporation, a leading provider of corporate identity uniforms, first aid and safety products and services to over 1 million businesses across North America, to distribute SilverSeal.
Subsequent Events
- Issued revenue guidance for the third and fourth quarters of 2024 of
$2.2 million and$2.6 million , an increase of83% and140% year-over-year, respectively. - Closed on registered direct offering led by insiders for gross proceeds of approximately
$1.11 million . - In partnership with Innovative Optics, a leading supplier of safety products and person protective equipment for medical, surgical, and aesthetic healthcare facilities globally, initiated an institutional review board study on the benefits of hydrogel application during laser hair removal.
Second Quarter 2024 Financial Highlights
For the quarter ended June 30, 2024, revenue totaled
Gross profit totaled
Gross profit margin for the second quarter of 2024 was
Cost of revenues increased by
Selling, general and administrative expenses increased by
Research and development expenses increased by
Net loss for the three months ended June 30, 2024, was
As of June 30, 2024, the Company had a cash balance of approximately
As of August 14, 2024, NEXGEL had 6,324,266 shares of common stock outstanding, which number does not include the 444,000 shares of common stock we anticipate issuing in connection with our recent offering.
Second Quarter 2024 Financial Results Conference Call
Date: August 14, 2024
Time: 4:30 P.M. ET
Live Call: + 1-800-579-2543 (U.S. Toll Free) or + 1-785-424-1789 (International)
Webcast: Events and Presentations
For interested individuals unable to join the conference call, a replay will be available through August 28, 2024, by dialing + 1-844-512-2921 (U.S. Toll Free) or + 1-412-317-6671 (International). Participants must use the following code to access the replay of the call: 11156720. An archived version of the webcast will also be available for 90 days.
About NEXGEL, INC.
NEXGEL is a leading provider of healthcare, beauty, and over-the-counter (OTC) products including ultra-gentle, high-water-content hydrogels. Based in Langhorne, Pa., the Company has developed and manufactured electron-beam, cross-linked hydrogels for over two decades. NEXGEL brands include Silverseal®, Hexagels®, Turfguard®, Kenkoderm® and Silly George®. Additionally, NEXGEL has strategic contract manufacturing relationships with leading consumer healthcare companies.
Forward-Looking Statement
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs, such as “will,” “should,” “would,” “may,” and “could,” are generally forward-looking in nature and not historical facts, including, without limitation, our revenue guidance for the third and fourth quarter of 2025. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance, or achievements to be materially different from any anticipated results, performance, or achievements for many reasons. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company's forward-looking statements, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2023, including but not limited to the discussion under “Risk Factors” therein, which the Company filed with the SEC and which may be viewed at http://www.sec.gov/.
Investor Contacts:
Valter Pinto, Managing Director
KCSA Strategic Communications
212.896.1254
Nexgel@kcsa.com
NEXGEL, INC
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2024 AND DECEMBER 31, 2023
(Unaudited)
(in thousands, except share and per share data)
| June 30, 2024 | December 31, 2023 | |||||||
| ASSETS: | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 1,069 | $ | 2,700 | ||||
| Accounts receivable, net | 605 | 633 | ||||||
| Inventory | 1,446 | 1,319 | ||||||
| Prepaid expenses and other current assets | 467 | 400 | ||||||
| Total current assets | 3,587 | 5,052 | ||||||
| Goodwill | 1,128 | 1,128 | ||||||
| Intangibles, net | 855 | 326 | ||||||
| Property and equipment, net | 2,368 | 1,499 | ||||||
| Operating lease - right of use asset | 1,742 | 1,855 | ||||||
| Other assets | 95 | 95 | ||||||
| Total assets | $ | 9,775 | $ | 9,955 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 1,245 | $ | 1,233 | ||||
| Accrued expenses and other current liabilities | 284 | 398 | ||||||
| Deferred revenue | 179 | 20 | ||||||
| Current portion of note payable | 87 | 80 | ||||||
| Warrant liability | 176 | 146 | ||||||
| Contingent consideration liability | 370 | 439 | ||||||
| Financing lease liability, current portion | 55 | - | ||||||
| Operating lease liabilities, current portion | 237 | 233 | ||||||
| Total current liabilities | 2,633 | 2,549 | ||||||
| Operating lease liabilities, net of current portion | 1,632 | 1,727 | ||||||
| Financing lease liability, net of current portion | 339 | - | ||||||
| Notes payable, net of current portion | 645 | 513 | ||||||
| Total liabilities | 5,249 | 4,789 | ||||||
| Commitments and Contingencies (Note 15) | - | - | ||||||
| Preferred stock, par value | - | - | ||||||
| Common stock, par value | 6 | 6 | ||||||
| Additional paid-in capital | 20,614 | 19,406 | ||||||
| Accumulated deficit | (16,454 | ) | (14,715 | ) | ||||
| Total NexGel stockholders’ equity | 4,166 | 4,697 | ||||||
| Non-controlling interest in joint venture | 360 | 469 | ||||||
| Total stockholders’ equity | 4,526 | 5,166 | ||||||
| Total liabilities and stockholders’ equity | $ | 9,775 | $ | 9,955 | ||||
NEXGEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(Unaudited)
(in thousands, except share and per share data)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenues, net | $ | 1,440 | $ | 1,167 | $ | 2,706 | $ | 1,786 | |||||||||||||||
| Cost of revenues | 1,030 | 992 | 2,019 | 1,669 | |||||||||||||||||||
| Gross profit | 410 | 175 | 687 | 117 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Research and development | 76 | 55 | 78 | 84 | |||||||||||||||||||
| Selling, general and administrative | 1,388 | 882 | 2,534 | 1,679 | |||||||||||||||||||
| Total operating expenses | 1,464 | 937 | 2,612 | 1,763 | |||||||||||||||||||
| Loss from operations | (1,054 | ) | (762 | ) | (1,925 | ) | (1,646 | ) | |||||||||||||||
| Other income (expense) | |||||||||||||||||||||||
| Interest expense | (30 | ) | (9 | ) | (46 | ) | (10 | ) | |||||||||||||||
| Interest income | 1 | 2 | 2 | 2 | |||||||||||||||||||
| Loss on sale of assets | (4 | ) | - | (4 | ) | - | |||||||||||||||||
| Other income | 6 | - | 6 | 4 | |||||||||||||||||||
| Gain on investments | 23 | 116 | 57 | 124 | |||||||||||||||||||
| Changes in fair value of warrant liability | 79 | 11 | 26 | 77 | |||||||||||||||||||
| Total other income (expense), net | 75 | 120 | 41 | 197 | |||||||||||||||||||
| Loss before income taxes | (979 | ) | (642 | ) | (1,884 | ) | (1,449 | ) | |||||||||||||||
| Income tax expense | - | - | - | - | |||||||||||||||||||
| Net loss | $ | (979 | ) | $ | (642 | ) | (1,884 | ) | (1,449 | ) | |||||||||||||
| Less: Income attributable to non-controlling interest in joint venture | 94 | (53 | ) | 146 | (60 | ) | |||||||||||||||||
| Net loss attributable to NexGel stockholders | (885 | ) | (695 | ) | (1,738 | ) | (1,509 | ) | |||||||||||||||
| Net loss per common share - basic | $ | (0.14 | ) | $ | (0.12 | ) | (0.28 | ) | (0.27 | ) | |||||||||||||
| Net loss per common share - diluted | $ | (0.14 | ) | $ | (0.12 | ) | (0.28 | ) | (0.27 | ) | |||||||||||||
| Weighted average shares used in computing net loss per common share - basic | 6,254,659 | 5,662,338 | 6,118,212 | 5,624,275 | |||||||||||||||||||
| Weighted average shares used in computing net loss per common share – diluted | 6,254,659 | 5,662,338 | 6,118,212 | 5,624,275 | |||||||||||||||||||
NEXGEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(Unaudited)
(in thousands)
| Six Months Ended June 30, | ||||||||||||
| 2024 | 2023 | |||||||||||
| Operating Activities | ||||||||||||
| Net loss | $ | (1,738 | ) | $ | (1,509 | ) | ||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Income (loss) attributable to non-controlling interest in joint venture | (146 | ) | 60 | |||||||||
| Depreciation and amortization | 144 | 68 | ||||||||||
| Changes in ROU asset and operating lease liability | 21 | 21 | ||||||||||
| Share-based compensation and restricted stock vesting | 118 | 53 | ||||||||||
| Gain on investment in marketable securities | (57 | ) | 124 | |||||||||
| Changes in fair value of warrant liability | (26 | ) | (77 | ) | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | 28 | (728 | ) | |||||||||
| Inventory | (127 | ) | (577 | ) | ||||||||
| Prepaid expenses and other assets | (67 | ) | (226 | ) | ||||||||
| Accounts payable | 13 | 793 | ||||||||||
| Accrued expenses and other current liabilities | (114 | ) | — | |||||||||
| Deferred revenue | 159 | 72 | ||||||||||
| Net Cash Used in Operating Activities | (1,792 | ) | (1,926 | ) | ||||||||
| Investing Activities | ||||||||||||
| Proceeds from sales of marketable securities | 57 | 4,772 | ||||||||||
| Capital expenditures | (361 | ) | (253 | ) | ||||||||
| Net cash paid for asset acquisition | (400 | ) | - | |||||||||
| Net Cash Provided by (Used in) Investing Activities | (704 | ) | 4,519 | |||||||||
| Financing Activities | ||||||||||||
| Proceeds from equity offering, net of expenses | 946 | — | ||||||||||
| Investment by joint venture partner | 37 | — | ||||||||||
| Principal payment on financing lease liability | (22 | ) | — | |||||||||
| Change in contingent consideration liability | (69 | ) | — | |||||||||
| Principal payments of notes payable | (27 | ) | (3 | ) | ||||||||
| Net Cash Provided by (Used in) Financing Activities | 865 | (3 | ) | |||||||||
| Net Decrease in Cash | (1,631 | ) | 2,590 | |||||||||
| Cash – Beginning of period | 2,700 | 1,101 | ||||||||||
| Cash – End of period | $ | 1,069 | $ | 3,691 | ||||||||
| Supplemental Disclosure of Cash Flows Information | ||||||||||||
| Cash paid during the year for: | ||||||||||||
| Interest | $ | 27 | $ | — | ||||||||
| Taxes | $ | — | $ | — | ||||||||
| Supplemental Non-cash Investing and Financing activities | ||||||||||||
| Shares issued in conjunction with asset acquisition | $ | 200 | $ | — | ||||||||
| Property and equipment financed under notes payable | $ | 165 | $ | — | ||||||||
| Property and equipment financed under financing leases | $ | 416 | $ | — | ||||||||
| Property and equipment contributed as capital investment to JV | $ | — | $ | 500 | ||||||||
| ROU asset and operating lease liabilities recognized upon consolidation of JV | $ | — | $ | 334 | ||||||||
FAQ
What was NEXGEL's revenue for Q2 2024?
What is NEXGEL's revenue guidance for Q3 and Q4 2024?
How did the acquisition of Silly George impact NEXGEL's revenue?
What was NEXGEL's gross profit margin in Q2 2024?
How much capital did NEXGEL raise in its recent offering?
