Thu, Mar 27, 8:24 PM (24 days ago)
**NexGel, Inc. (NXGL) 2024 Annual Report Summary** **Company Overview:** NexGel, Inc. manufactures high water content, electron beam cross-linked, aqueous polymer hydrogels used in wound care, medical diagnostics, transdermal drug delivery, and cosmetics. The company specializes in custom gels using proprietary technologies and operates in contract manufacturing, custom and white label opportunities, branded consumer products, and medical devices. **Financial Performance (2024 vs. 2023):** - **Revenue:** $8,688,000 (2024) vs. $4,089,000 (2023), an increase of 112.5%. - **Gross Profit:** $2,748,000 (2024) vs. $374,000 (2023), an increase of 637.4%. - **Gross Margin:** 31.6% (2024) vs. 9.1% (2023). - **Operating Expenses:** $6,302,000 (2024) vs. $3,851,000 (2023). - **Net Loss:** $3,463,000 (2024) vs. $3,188,000 (2023). - **Cash Flow:** Net cash used in operating activities was $3,867,000 (2024) vs. $3,236,000 (2023). **Strategic Overview:** - **Product Lines:** NexGel operates in four distinct lines: Contract Manufacturing, Custom & White Label, Branded Consumer Products, and Medical Devices/Other. - **Acquisitions:** Acquired Kenkoderm (December 2023) and Silly George (May 2024) to expand consumer product offerings. - **Joint Ventures:** Formed CG Converting and Packaging, LLC (May 2023) for converting and packaging business. **Future Outlook:** - **Growth Strategy:** Focus on expanding consumer products, strategic partnerships, and potential acquisitions. - **Capital Raising:** Plans to raise additional capital through equity or debt offerings to support growth initiatives. - **Market Position:** Aims to increase market share in healthcare, consumer products, and medical devices. **Risk Factors:** - **Operational Risks:** Dependence on key suppliers, regulatory compliance, and market competition. - **Financial Risks:** Need for additional capital, potential going concern issues, and reliance on equity offerings. - **Market Risks:** Competition from established players, technological obsolescence, and economic conditions. **Financial Condition:** - **Liquidity:** $1,807,000 in cash and cash equivalents as of December 31, 2024. - **Working Capital:** $2,644,000 as of December 31, 2024. - **Debt:** $4,903,000 in total liabilities as of December 31, 2024. **Market Position Changes:** - **Customer Base:** No single customer accounted for 10% of revenue in 2024, but one customer accounted for 20% in 2023. - **Market Expansion:** Expanding into Europe and Asia with the Silly George acquisition. **Note:** Amounts are in thousands, 000s.