Mon, Aug 19, 10:18 AM (148 days ago)
NexGel, Inc. reported quarterly results for the period ending June 30, 2024, showing a revenue increase of 23.4% to $1,440,000 compared to $1,167,000 in Q2 2023, primarily driven by growth in branded consumer products, including Silly George. Gross profit rose significantly to $410,000 (28.5% margin) from $175,000 (15.0% margin) year-over-year. However, operating expenses surged 57.4% to $1,388,000, reflecting increased marketing costs and personnel expenses. For the six months ended June 30, 2024, total revenues increased by 51.5% to $2,706,000, with gross profit expanding to $687,000. The company incurred a net loss of $1,738,000, worsening from $1,509,000 in the same period last year. Cash flow remains a concern, as cash decreased to $1,069,000 from $2,700,000 at year-end 2023. NexGel's working capital fell to $955,000, down from $2,503,000, attributed to operational losses and asset acquisitions. Future growth strategies include expanding product channels and potential acquisitions, although the company anticipates ongoing losses. The recent capital raise of $1.1 million is expected to support operations into 2025.