Fourth quarter 2024 revenue totaled $3.04 million, an increase of 181%, as compared to $1.08 million for the same period the prior year
Full year 2024 revenue totaled $8.69 million, an increase of 112%, as compared to $4.09 million in 2023
Over 100% full year and fourth quarter revenue growth year-over-year for third consecutive year
Company issues revenue guidance of $13 million for 2025 and expects to achieve positive EBITDA during the year
LANGHORNE, Pa., March 24, 2025 (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 fourth quarter and full year financial results for the period ending December 31, 2024.
Fourth Quarter 2024 Financial Highlights:
- Net Revenue was $3.04 million, compared to $1.08 million in Q4 2023 and $2.94 million in Q3 2024.
- Gross Profit was $1.13 million, compared to $0.09 million in Q4 2023 and $1.28 million in Q3 2024.
- Gross Profit Margin was 37.2%, compared to 8.7% in Q4 2023 and 43.6% in Q3 2024.
- Net loss for Q4 2024was $0.85 million, compared to $1.10 million in Q4 2023 and $0.69 million in Q3 2024. Q4 2024 includes a non-recurring one-time inventory write off of $0.24 million.
- EBITDA1, a non-GAAP financial measure, was ($0.73) million in Q4 2024, compared to EBITDA of ($0.97) million in Q4 2023 and an EBITDA of ($0.49) million in Q3 2024.
- Adjusted EBITDA1, a non-GAAP financial measure, was ($0.62) million in Q4 2024, compared to Adjusted EBITDA of ($0.88) million in Q4 2023 and Adjusted EBITDA of ($0.35) million in Q3 2024.
- Net Revenue was $8.69 million, compared to $4.09 million in 2023.
- Gross Profit was $2.75 million, compared to $0.37 million in 2023.
- Gross Profit Margin was 31.6%, compared to 9.2% in 2023.
- Net loss was $3.28 million, compared to $3.16 million in 2023.
- EBITDA1, a non-GAAP financial measure, was ($2.76) million, compared to EBITDA of ($2.92) million in 2023.
- Adjusted EBITDA1 loss, a non-GAAP financial measure, was ($2.43) million, compared to EBITDA ($2.80) million in 2023.
- Cash as of December 31, 2024, was $1.81 million.
Mr. Levy continued, "As we look into the first quarter 2025, which is seasonally our weakest of the year, we expect revenue to be at least $2.75 million. We also expect to generate at least $13 million in revenue for 2025 and achieve positive EBITDA during the year. Our pipeline of potential new customers in 2025 remains healthy and robust.”
2024 Operating Highlights:
- Revenue growth of over 100% year-over-year for third consecutive year.
- Acquired international beauty brand, Silly George, and successfully grew sales from an initial $2 million annual revenue run rate to over $5.0 million and growing.
- Announced supply agreement with Cintas for SilverSeal®, which began generating revenue during the fourth quarter of 2024.
- Partnered with STADA to launch leading European DAO enzyme supplement, Histasolv, in North America, which began generating revenue during the fourth quarter of 2024.
- Initiated institutional review board study with Innovative Optics US in accordance with FDA for hydrogel application during laser hair removal with expected data soon.
For the fourth quarter of 2024, revenue totaled $3.04 million, an increase of 181%, as compared to $1.08 million for the fourth quarter 2023. Revenue for the full year 2024 totaled $8.69 million, an increase of 112%, as compared to $4.09 million in 2023. The increase year-over-year in overall revenue during both periods was primarily due to sales growth in branded consumer products and contract manufacturing.
Cost of revenues totaled $1.91 million for the fourth quarter 2024, as compared to $0.99 million for the fourth quarter 2023. Cost of revenues in 2024 totaled $5.94 million, as compared to $3.72 million in 2023. The increase in cost of revenues is primarily aligned with sales of branded consumer products, as both Silly George and Kenkoderm were acquired after the comparable 2023 period.
Gross profit totaled $1.13 million for the fourth quarter of 2024, as compared to a gross profit of $0.09 million for the fourth quarter of 2023. Gross profit margin for the fourth quarter 2024 was 37.2%, as compared to 8.7% for the fourth quarter 2023. Gross profit for 2024 totaled $2.75 million, as compared to $0.37 million in 2023. Gross profit margin for 2024 was 31.6%, as compared to 9.2% in 2023. The increase of $2.38 million in 2024 was primarily due to an increase in branded consumer products.
Selling, general and administrative expenses totaled $1.97 for the fourth quarter 2024, as compared to $1.30 for the fourth quarter 2023. Selling, general and administrative expenses totaled $6.22 million for 2024, as compared to $3.75 million in 2023. The increase year-over-year was attributable to increases in compensation and benefits, share-based compensation, advertising, marketing and Amazon fees, professional and consulting fees, and other expenses, offset by decreases in investor and shareholder services and franchise taxes and corporate insurance.
EBITDA1, a non-GAAP financial measure, totaled ($0.73). million for the fourth quarter of 2024 as compared to ($.97) million for the fourth quarter of 2023. EBITDA for 2024 totaled ($2.76) million as compared to ($2.92) million in 2023.
Adjusted EBITDA1, a non-GAAP financial measure, totaled ($0.62) million for the fourth quarter 2024 as compared to ($0.88) million for the fourth quarter 2023. Adjusted EBITDA for 2024 totaled ($2.43) million as compared to ($2.80) million for 2023.
Net loss for the fourth quarter of 2024 was $0.85 million, as compared to a net loss of $1.10 million for the fourth quarter of 2023. Net loss for 2024 totaled $3.28 million as compared to a net loss of $3.16 million in 2023. Of note, our fourth quarter net loss includes two inventory write offs totaling $243 thousand that are one-time in nature. One write-off of $197 thousand related to high minimum order quantity inventory purchases in 2022 for SilverSeal and Turf Guard 2x3. High minimum order quantities were a significant challenge to launching new products and were one of the motivating factors for our Q1 2023 joint venture with CG Converting and Packaging, which now allows us to control the manufacturing process and, as a result, we do not expect any future write-offs. The second is for $46 thousand for additional excess and obsolete inventory.
As of December 31, 2024, the Company had a cash balance of approximately $1.81 million.
As of March 24, 2025, NEXGEL had 7,654,038 shares of common stock outstanding.
1. EBITDA and Adjusted EBITDA are a non-GAAP measures described in the section titled Non-GAAP Financial Measures” below and reconciled to the most directly comparable GAAP measures at the end of this release.
Fourth Quarter and Full Year 2024 Financial Results Conference Call
Date: March 24, 2025
Time: 4:30 p.m. ET
Live Call: 1-800-245-3047 (U.S. Toll Free) or 1-203-518-9765 (International)
Webcast: Events and Presentations
For interested individuals unable to join the conference call, a replay will be available through April 3, 2025, 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: 11158402. An archive 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.
Non-GAAP Financial Measures
Certain Non-GAAP financial measures are included in this press release. In the calculation of these measures, the Company excludes certain items, such as amortization of intangible assets, stock-based compensation, tax impact of adjustments, other unusual items and discrete items impacting income tax expense. The Company believes that excluding such items provides investors and management with a representation of the Company's core operating performance and with information useful in assessing its prospects for the future and underlying trends in the Company's operating expenditures and continuing operations. Management uses such Non-GAAP measures to evaluate financial results and manage operations. The release and the attachments to this release provide a reconciliation of each of the Non-GAAP measures referred to in this release to the most directly comparable GAAP measure. The Non-GAAP financial measures are not meant to be considered a substitute for the corresponding GAAP financial statements and investors should evaluate them carefully. These Non-GAAP financial measures may differ materially from the Non-GAAP financial measures used by other 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 expectation that our revenue will be at least $2.8 million in the first quarter of 2025 and our expectation to generate at least $13 million in revenue for 2025 and achieve positive cash flow from operations during the year. 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, 2024, 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, INC
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
| December 31, 2024 | December 31, 2023 | |||||||
| ASSETS: | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 1,807 | $ | 2,700 | ||||
| Accounts receivable, net | 933 | 633 | ||||||
| Inventory | 1,751 | 1,319 | ||||||
| Prepaid expenses and other current assets | 623 | 400 | ||||||
| Total current assets | 5,114 | 5,052 | ||||||
| Goodwill | 1,128 | 1,128 | ||||||
| Intangibles, net | 807 | 326 | ||||||
| Property and equipment, net | 2,211 | 1,499 | ||||||
| Operating lease - right of use asset | 1,628 | 1,855 | ||||||
| Other assets | 95 | 95 | ||||||
| Total assets | $ | 10,983 | $ | 9,955 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 761 | $ | 579 | ||||
| Accounts payable - related party | 531 | 654 | ||||||
| Accrued expenses and other current liabilities | 310 | 398 | ||||||
| Deferred revenue | 179 | 20 | ||||||
| Current portion of note payable | 97 | 80 | ||||||
| Warrant liability | 118 | 146 | ||||||
| Contingent consideration liability | 178 | 439 | ||||||
| Finance lease liability, short term | 59 | - | ||||||
| Operating lease liability, current portion | 237 | 233 | ||||||
| Total current liabilities | 2,470 | 2,549 | ||||||
| Operating lease liability, net of current portion | 1,538 | 1,727 | ||||||
| Finance lease liability, long term | 307 | - | ||||||
| Notes payable, net of current portion | 588 | 513 | ||||||
| Total liabilities | 4,903 | 4,789 | ||||||
| Commitments and Contingencies (Note 17) | ||||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Preferred stock, par value $0.001 per share, 5,000,000 shares authorized, no shares issued and outstanding | - | - | ||||||
| Common stock, par value $0.001 per share, 25,000,000 shares authorized; 7,638,497 and 5,741,838 shares issued and outstanding as of December 31, 2024 and 2023, respectively | 8 | 6 | ||||||
| Additional paid-in capital | 23,743 | 19,406 | ||||||
| Accumulated deficit | (17,996 | ) | (14,715 | ) | ||||
| Total NexGel stockholders' equity | 5,755 | 4,697 | ||||||
| Non-controlling interest in joint venture | 325 | 469 | ||||||
| Total stockholders' equity | 6,080 | 5,166 | ||||||
| Total liabilities and stockholders' equity | $ | 10,983 | $ | 9,955 | ||||
NEXGEL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
| Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenues, net | $ | 8,688 | $ | 4,089 | ||||
| Cost of revenues | 5,940 | 3,715 | ||||||
| Gross profit | 2,748 | 374 | ||||||
| Operating expenses | ||||||||
| Research and development | 78 | 103 | ||||||
| Selling, general and administrative | 6,224 | 3,748 | ||||||
| Total operating expenses | 6,302 | 3,851 | ||||||
| Loss from operations | (3,554 | ) | (3,477 | ) | ||||
| Other income (expense) | ||||||||
| Change in fair value of warrant liability, net of warrant modification expense | 28 | 96 | ||||||
| Realized gain on investments in marketable securities | 68 | 191 | ||||||
| Interest expense, net | (81 | ) | (15 | ) | ||||
| Change in fair value of contingent consideration | (18 | ) | - | |||||
| Other expense | (4 | ) | (2 | ) | ||||
| Other income | 98 | 19 | ||||||
| Total other income (expense), net | 91 | 289 | ||||||
| Loss before income taxes | (3,463 | ) | (3,188 | ) | ||||
| Income tax expense | - | - | ||||||
| Net loss | (3,463 | ) | (3,188 | ) | ||||
| Less: Loss attributable to non-controlling interest in joint venture | 182 | 31 | ||||||
| Net loss attributable to NexGel stockholders | $ | (3,281 | ) | $ | (3,157 | ) | ||
| Net loss per common share - basic and diluted | $ | (0.50 | ) | $ | (0.56 | ) | ||
| Weighted average shares used in computing net loss per common share - basic and diluted | 6,511,574 | 5,671,842 | ||||||
NEXGEL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Year Ended December 31, | |||||||||
| 2024 | 2023 | ||||||||
| Operating Activities | |||||||||
| Net loss | $ | (3,281 | ) | $ | (3,157 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||
| Loss attributable to non-controlling interest in joint venture | (182 | ) | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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