AI Earnings Predictions for NexGel Inc (NXGL)

EX-99.1

2 ex99-1.htm

EX-99.1

Exhibit 99.1

NEXGEL

Reports Second Quarter 2026 Financial Results

LANGHORNE,

Pa. – August 17, 2026 – NEXGEL, Inc. (“NEXGEL” or the “Company”) (NASDAQ: “NXGL”),

a leading provider of healthcare, beauty, and over-the-counter (OTC) products including ultra-gentle, high-water-content hydrogel products for healthcare and consumer applications, today announced its second quarter 2026 financial results for the period ending June 30, 2026.

The second quarter of 2026 was a period of significant transformation and preparation for NexGel. Following the completion of our transaction with Celularity, Inc. in mid-April, the Company focused on transitioning employees, integrating sales representatives and customer relationships, and aligning our marketing, operations, and branding efforts around the newly formed BioNX Surgical division. These initiatives were designed to support commercial growth, strengthen customer engagement, and advance our strategic partnership with Sequence Life Science, Inc. While progress has been made, our rollout initiatives and expansion into the surgical channel have occurred at a slower pace than originally anticipated.

On August 4, Sequence deployed several tissue processing specialists to Celularity’s New Jersey facility as part of our previously announced plan to transfer manufacturing technology and future production capabilities to Sequence’s facility in San Antonio, Texas. This initiative was established at the outset of the acquisition to address known long-term supply chain constraints and improve manufacturing scalability. While meaningful progress has been made, these supply chain challenges have continued to impact product availability and have contributed to a current BioNX Surgical backlog of approximately $795,000.

Q2 revenue totaled $3.69 million, with a net loss of $2.87 million. The reported loss included several non-recurring or non-cash items, including $756,554 of BioNX intangible asset amortization, $273,710 of one-time transaction-related expenses, and $144,495 associated with the strategic recall of all SilverSeal inventory from Amazon.

The SilverSeal inventory recall was undertaken to support the product’s launch into the hospital market beginning in August. SilverSeal already has established reimbursement A-codes, providing coverage opportunities for both surgical and wound care applications in physician offices, ambulatory surgery centers (ASCs), and hospital settings.

Management believes the hospital channel represents a significant growth opportunity, with the potential to drive increased sales volume while generating higher gross margins than current distribution channels.

In addition, the Company recently launched BioNX Regenerative Eye Health & Aesthetics, a new commercial initiative focused on ocular and aesthetic applications. The platform includes exclusively licensed products from Sequence and is designed to expand BioNX’s presence in high-growth regenerative medicine markets. The initiative is being led by Shaun Mullen, an industry veteran with more than 20 years of experience successfully launching and scaling ophthalmic companies and technologies.

The Company’s recently completed proxy solicitation did not receive sufficient shareholder support for the proposed increase in authorized shares and reverse stock split authority. Management believes the primary reason was an unusually high level of broker non-votes. Because these otherwise routine corporate governance proposals were linked to a proposal to redomicile the Company, brokers were unable to vote uninstructed shares in accordance with management’s recommendations.

The Company intends to resolicit shareholder approval for the increase in authorized shares and reverse split authority as standalone proposals, without the redomicile component, and has engaged Alliance Advisors as proxy solicitor to assist in the process. Based on shareholder feedback and the expected reduction in broker non-votes, management believes both proposals are well-positioned for approval. The current timeline anticipates completion in late September, well within the timeframe necessary to support the Company’s strategic and capital markets objectives.

As of June 30, 2026, the Company held approximately $710,000 of restricted cash related to its prior transaction with ATW Partners. Since quarter end, those funds have been released and returned to the Company, and the Company’s business relationship with ATW has been concluded.

While the integration of the acquired businesses and associated revenue ramp have progressed more slowly than originally anticipated, management remains encouraged by opportunities entering the second half of the year.

The Company expects to host an investor update call on or around September 15, 2026, to provide shareholders with a detailed update on operational progress, commercialization initiatives, and expectations for the remainder of 2026.

About

NEXGEL, I

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UNITED

STATES

SECURITIES

AND EXCHANGE COMMISSION

Washington,

D.C. 20549

FORM

8-K

CURRENT

REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 12, 2025

NEXGEL,

INC.

(Exact name of registrant as specified in its charter)

Delaware

001-41173

26-4042544

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

2150 Cabot Boulevard West, Suite B

Langhorne, Pennsylvania

19047

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (215) 702-8550

(Former name or former address, if changed since last report)

Not Applicable

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: None

Title of each class

Trading

Symbol(s)

Name of each exchange on which

registered

Common Stock, par value $0.001

NXGL

The Nasdaq Capital Market LLC

Warrants to Purchase Common Stock

NXGLW

The Nasdaq Capital Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On August 12, 2025, NexGel, Inc. (the “Company”) issued a press release reporting the Company’s results for the quarter ended June 30, 2025, a copy of which is attached as Exhibit 99.1 hereto and is incorporated herein by reference.

Item 7.01 Regulation FD Disclosure.

On August 12, 2025, the Company began utilizing a new investor presentation, a copy of which is attached hereto as Exhibit 99.2.

The information in Items 2.02 and 7.01 of this Current Report on Form 8-K, including the information set forth in Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall Exhibits 99.1 and 99.2 filed herewith be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit

No.

Description

99.1

Press release of NexGel, Inc. issued August 12, 2025.

99.2

NexGel, Inc. Investor Presentation, dated August 2025.

104

Cover Page Interactive Data File (formatted as Inline

XBRL)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: August 12, 2025

NEXGEL, INC.

By: /s/ Adam Levy

Adam Levy

Chief Executive Officer

EX-99.1

2 ex99-1.htm

EX-99.1

Exhibit 99.1

NEXGEL

Reports First Quarter 2025 Financial Results

First quarter 2025 revenue totaled $2.81 million, an increase of 121%, as compared to $1.27 million for the

same period the prior year

Gross Profit for the quarter was 42.4%, compared to 12.6% in Q1 2024 and 37.2% in Q4 2024

LANGHORNE,

Pa. – May 13, 2025 – 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 its first quarter 2025 financial results for the period ending March 31, 2025.

First Quarter 2025 Financial Highlights:

● Net Revenue was $2.81 million, compared to $1.27 million in Q1 2024 and $3.04 million in Q4 2024.

● Gross Profit was $1.19 million, compared to $0.16 million in Q1 2024 and $1.13 million in Q4 2024.

● Gross Profit Margin was 42.4%, compared to 12.6% in Q1 2024 and 37.2% in Q4 2024.

● Net loss was $0.71 million, compared to $0.85 million in Q1 2024 and $0.85 million in Q4 2024.

●

EBITDA1,

a non-GAAP financial measure, was ($0.54) million, compared to EBITDA of ($0.84) million in Q1 2024 and an EBITDA of ($0.73) million in Q4 2024.

● Adjusted EBITDA1, a non-GAAP financial measure, was ($0.47) million, compared to Adjusted EBITDA of ($0.73) million in Q1 2024 and Adjusted EBITDA of ($0.62) million in Q4 2024.

“Revenue for the first quarter came in slightly higher than our previously issued guidance, totaling $2.81 million, an increase of 121% year-over-year. Gross margins returned to the low to mid-40’s, while our EBITDA loss continued to narrow,” Adam Levy, NEXGEL’s Chief Executive Officer, commented. “Looking forward, in contract manufacturing we have multiple shots on goal with large existing customers such as Cintas and new potential customers in our robust pipeline. Similarly, we have several growth levers in our consumer branded products with new product launches throughout the remainder of this year, heading into 2026. We remain confident in our previously issued guidance for 2025 of $13 million in revenue and to achieve positive EBITDA during the year.”

First Quarter 2025 Financial Results

For the first quarter of 2025, revenue totaled $2.81 million, an increase of 121%, as compared to $1.27 million for the first quarter of 2024. The increase in overall revenues was primarily due to sales growth in both contract manufacturing and branded products.

Cost of revenues totaled $1.62 million for the first quarter of 2025, as compared to $1.11 million for the first quarter of 2024. The increase in cost of revenues is primarily aligned with the increase in revenue growth.

Gross profit totaled $1.19 million for the first quarter of 2025, as compared to a gross profit of $0.16 million for the first quarter of 2024. Gross profit margin for the first quarter 2025 was 42.4%, as compared to 12.6% for the first quarter 2024. The increase of $1.03 in gross profit quarter over quarter was primarily due to the increase in consumer branded products.

Selling, general and administrative expenses totaled $1.96 for the first quarter of 2025, as compared to $1.03 for the first quarter of 2024. The increase quarter over quarter was attributable to increases in compensation and benefits, share-based compensation, advertising, marketing and Amazon fees, Professional and consulting fees, other fees, and investor and shareholder services, which was offset by a decrease in franchise taxes and corporate insurance.

EBITDA1,

a non-GAAP financial measure, totaled ($0.54) million for the first quarter of 2025 as compared to ($0.84) million for the first quarter of 2024.

Adjusted EBITDA1, a non-GAAP financial measure, totaled ($0.47) million for the first quarter 2025 as compared to ($0.73) million for the first quarter 2024.

Net loss for the first quarter of 2025 was $0.71 million, as compared to a net loss of $0.85 million for the first quarter of 2024.

As of March 31, 2025, the Company had a cash balance of approximately $1.19 million.

As of May 13, 2025, NEXGEL had 7,654,537 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.

First Quarter 2025 Financial Results Conference Call

Date: May 13, 2025

Time: 4:30 p.m. ET

Live Call: 1-800-343-4849 (U.S. Toll Free) or 1-203-518-9848 (International)

Webcast: Events and Presentations

For interested individuals unable to join the conference call, a replay will be available through May 27, 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: 11159118. 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 (OT

EX-99.1

2 ex99-1.htm

Exhibit 99.1

NEXGEL

Reports Record Fourth Quarter and Full Year 2024 Financial Results

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 – 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.

Full Year 2024 Financial Highlights:

●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.

“The fourth quarter and full year 2024 were record periods for NEXGEL across all our key financial measures. We successfully grew full year and fourth quarter revenue over 100% year-over-year for the third consecutive year Our EBITDA loss continued to narrow when compared to Q4 2023. Our growth and operational efficiency were driven by consistent performance each quarter in both branded consumer products and contract manufacturing,” Adam Levy, NEXGEL’s Chief Executive Officer, commented. “During the fourth quarter we made our first shipments of SilverSeal® to Cintas, which continues into the first quarter of 2025. Our consumer products across our entire portfolio of brands including Medagel, Silly George®, Kenkoderm®, and Histasolv, in partnership with STADA, all performed well. In an ongoing effort to optimize our brand portfolio, we are leveraging our marketing capabilities, while also launching new product offerings for our loyal customers.”

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.

Fourth Quarter and Full Year 2024 Financial Results

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

EX-99.1

2 ex99-1.htm

Exhibit 99.1

NEXGEL

Issues Letter to Shareholders and Provides Guidance for 2024 and 2025

Management expects 2024 fourth quarter revenue of approximately $3.0 million and full year 2024 of approximately $8.6 million, representing growth year-over-year of over 100% for the third consecutive year

Management expects to generate at least $13 million in revenue for 2025 and to achieve positive cash flow from operations during the year

LANGHORNE,

Pa. – January 22, 2025 — NEXGEL, Inc. (“NEXGEL” or the “Company”) (NASDAQ: “NXGL”),

a leading provider of medical and over-the-counter (OTC) products including ultra-gentle, high-water-content

hydrogels for healthcare and consumer applications, today issued a letter to its shareholders from Chief Executive Officer, Adam Levy, and is providing guidance for 2024 and 2025.

Dear Fellow NEXGEL Shareholders,

2024 was a transformative year for NEXGEL and I have high expectations for 2025. I would like to share a brief recap of our accomplishments over the past year, the current status of our business units, and several upcoming growth levers for the business.

Our revenue expectation for the fourth quarter 2024 is approximately $3.0 million, bringing total revenue for 2024 to approximately $8.6 million, representing growth year-over-year of over 100% for the third consecutive year. Looking into 2025, we expect to generate at least $13 million in full year revenue and to be cash flow positive from operations during the year.

NEXGEL

is focused on three core segments which we believe will drive significant shareholder value: (i) contract manufacturing and white label, (ii) consumer products and (iii) aspirational medical device development. These areas are key to our strategic growth and long-term success of the business.

Contract manufacturing and white label played a pivotal role in our growth in 2024 led by increased demand from existing customers and the successful onboarding of several new global corporations. This segment continues to be a major driver of our expansion and success.

Additionally, of our two new large international customers, one began generating revenue as expected in the fourth quarter of 2024 and the other is expected to begin generating revenue this quarter. Looking ahead, we have a healthy pipeline of potential new customers for 2025, including Innovative Optics. We anticipate the publication of their study of the carcinogenic plume generated by laser hair removal, as well as the effectiveness of our pads in suppressing that plume, later this quarter.

Consumer products across our entire portfolio saw remarkable expansion in 2024 driven by the continued success of our Medagel brand, the acquisitions of Kenkoderm and Silly George and our strategic partnership with Stada. This year Medagel will expand its product line with the anticipated launch of several new offerings, including a SilverSeal wound and burn kit and our moist burn pads. Kenkoderm continues to show growth, with plans to launch new products for an additional indication in the third quarter of this year.

After acquiring Silly George in May of 2024, we quickly integrated the brand onto our platform. As a result, we saw growth from its initial $2 million annual revenue run rate to over $5 million and believe the upward trajectory will continue. We have several exciting new products we anticipate launching in 2025, including a beauty under-eye patch that utilizes our own hydrogel technology.

Lastly, our partnership with Stada is progressing well and the first product, Histasolv, is exceeding projections. We are preparing for two additional product launches from Stada which we expect to occur during the second half of 2025.

There are many other applications for our high-water-content hydrogels and our aspirational medical device products, which provide our shareholders with significant upside potential. A great example is our recently completed 10 patient preclinical proof of concept study using our hydrogel patch to deliver topical apremilast. The goal of this study is to effectively target stubborn lesions that persist after systemic treatment by delivering apremilast directly to the affected areas. It also offers a potential alternative to systemic treatment for patients who do not qualify for it. We will soon be treating an additional 10 patients. Again, while this is proof of concept work, the early results are encouraging and given the potential we feel we should explore further with minimal additional cash investment by NEXGEL. Kip Crecca joined our Scientific Advisory Board to help develop and expand the applications of our gel in the surgical drape market. Overall, we believe the future is bright with many significant opportunities.

As we continue to drive innovation and growth across our key business segments, our focus remains firmly on delivering long-term value for our shareholders. With a strong foundation and significant opportunities on the horizo

EX-99.1

2 ex99-1.htm

Exhibit 99.1

NEXGEL

Reports Record Third Quarter 2024 Revenue of $2.94 Million, an Increase of 141% Year-Over-Year and 104% Sequentially

Quarterly revenue growth driven by a sequential increase of 99% in branded consumer products and 103% in contract manufacturing

Gross profit margin for the quarter was 43.6% compared to 28.2% in Q3 of 2023 and 28.5% in Q2 of 2024

LANGHORNE,

Pa. – November 13, 2024 – 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 third quarter revenue of $2.94 million, an increase of 141% year-over-year and 104% sequentially.

Third Quarter 2024 Financial Highlights:

●Net Revenue was $2.94 million, compared to $1.22 million in Q3 2023 and $1.44 million in Q2 2024.

●Gross Profit Margin was 43.6%, compared to 28.2% in Q3 2023 and 28.5% in Q2 2024.

●Net loss was $754,000, compared to $552,000 in Q3 2023 and $979,000 in Q2 2024.

●Adjusted EBITDA1 loss, a non-GAAP financial measure, was $347,000 in Q3 2024, compared to $464,000 in Q3 2023 and $788,000 in Q2 2024.

●Cash as of September 30, 2024, was $1.10 million. Subsequent to the end of the quarter, the Company closed on a registered direct offering for gross proceeds of $2 million.

“The third quarter was yet another record quarter for the Company across all our key financial measures. Revenue increased 141% year-over-year and 104% sequentially, while gross margins were 43.6% and our Non-GAAP EBITDA loss improved to $347,000. Our significant growth was driven by approximately 100% sequential growth in both branded consumer products and contract manufacturing,” Adam Levy, NEXGEL’s Chief Executive Officer, commented. “As we head into the holiday season, we expect our year-over-year and sequential revenue growth to continue in the fourth quarter and our quarterly Non-GAAP EBITDA loss to narrow even further. Additionally, in the fourth quarter, our first orders of SilverSeal® to Cintas will occur. To meet the high demand we are seeing, subsequent to the third quarter, we strengthened our balance sheet with the closing of $2 million in gross proceeds from a registered direct offering.”

Third Quarter 2024 Financial Highlights

For the third quarter 2024, revenue totaled $2.94 million, an increase of 141%, as compared to the third quarter 2023, and an increase of 104%, as compared to the second quarter 2024. The increase year-over-year and sequentially in overall revenues was primarily due to sales growth in branded consumer products and contract manufacturing.

Gross profit totaled $1.3 million for the third quarter 2024, compared to a gross profit of $344,000 for the third quarter 2023 and gross profit of $410,000 for the second quarter 2024. The increase of $956,000 in gross profit year-over-year was primarily due to the increase in branded consumer products. The increase of $890,000 in gross profit sequentially was primarily due to the increase in branded consumer products and contract manufacturing.

Gross profit margin for the third quarter of 2024 was 43.6% compared to a gross margin for the third quarter of 2023 of 28.2% and a gross profit margin of 28.5% for the second quarter of 2024.

Cost of revenues increased by $781,000, or 89.1%, to $1.66 million for the third quarter 2024, as compared to $877,000 for the third quarter 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.

Selling, general and administrative expenses increased by $1.12 million, or approximately 118%, to $2.1 million for the third quarter 2024, as compared to $950,000 for the third quarter 2023. The increase in Selling, general and administrative expenses is primarily attributable to advertising, marketing, and Amazon fees, which increased $819,000.

Adjusted EBITDA1 loss, a non-GAAP financial measure, was approximately $347,000 as compared to an adjusted EBITDA loss of $464,000 for the third quarter of 2023 and $788,000 for the second quarter of 2024.

Net loss for the third quarter 2024 was $754,000 as compared to a net loss of $552,000 for the third quarter 2023, and a net loss of $979,000 for the second quarter 2024.

As of September 30, 2024, the Company had a cash balance of approximately $1.1 million. Subsequent to the end of the quarter, the Company closed on a registered direct offering of $2 million. The use of proceeds for the financing is for working capital and the immediate requirement for additional inventory and marketing to meet the higher-than-expected demand for the Silly George brand products.

As of November 13, 2024, NEXGEL had 6,790,777 shares of common stock outstanding, which number does not include the 727,272 shares of common stock we anticipate issuing in connection with our recent offering.

Third Quarter 2024 Financial Results Confere

EX-99.1

2 ex99-1.htm

Exhibit 99.1

NEXGEL

Preannounces Expected Record Third Quarter 2024 Revenue of

$2.85 Million, an Increase of Approximately 133% Year-Over-Year and 98% Sequentially

LANGHORNE,

Pa. – October 10, 2024 — NEXGEL, Inc. (“NEXGEL” or the “Company”) (NASDAQ: “NXGL”),

a leading provider of medical and over-the-counter (OTC) products including ultra-gentle, high-water-content

hydrogels for healthcare and consumer applications, today announced preliminary, unaudited expected record revenue for the third quarter 2024 of approximately $2.85 million, an increase of approximately 133% year-over-year and approximately 98% quarter-over-quarter, respectively, as well as an increase of approximately 30% over the Company’s previously issued July third quarter revenue guidance of $2.20 million.

“We are pleased to announce yet another record revenue quarter, surpassing our internal forecasts in both branded consumer products and contract manufacturing,” said Adam Levy, NEXGEL’s CEO. “Our branded consumer product sales have seen significant growth year-over-year and quarter-over-quarter in all three brands led by our beauty brand Silly George. Additionally, our contract manufacturing segment has returned to more normalized revenue levels following our recent expansion initiatives, which included doubling our square footage and installing state-of-the-art automated machinery and related clean room facilities. We anticipate continued positive momentum will carry into the fourth quarter during which our first order of SilverSeal will also be delivered to Cintas.”

NEXGEL

will report its financial results for the third quarter 2024 on or before November 14, 2024 and will host a conference call the same day.

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.

Preliminary Third Quarter 2024 Results

This press release sets forth certain preliminary estimates of financial and operating results that we expect to report for the third quarter ended September 30, 2024. We are currently in the process of finalizing our financial results for the September 30, 2024 third quarter, and the preliminary estimated financial information presented above reflects various assumptions and estimates based upon preliminary information available to us as of the date of this press release. This information should not be viewed as a substitute for full unaudited financial statements prepared in accordance with accounting principles generally accepted in the United States for the third quarter ended September 30, 2024. Our independent registered public accounting firm has not reviewed this preliminary estimated financial information. As a result, it remains in all cases subject to change pending finalization. Items or events may be identified or occur after issuance of these preliminary results due to the completion of operational and financial closing procedures. In addition, final adjustments and other developments may arise that would require us to make material adjustments to this preliminary financial information. Therefore, our actual results may differ materially from the current expectations expressed in this release.

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. These forward-looking statements, including but not limited to our anticipation of continued positive financial momentum in the fourth quarter of 2024, 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 Comp

EX-99.1

2 ex99-1.htm

Exhibit 99.1

NEXGEL

Reports Record Second Quarter 2024 Revenue of $1.44 Million

LANGHORNE,

Pa. – August 14, 2024 – 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 $1.44 million and is reiterating revenue guidance for the 2024 third and fourth quarter of $2.2 million and $2.6 million, respectively.

Adam Levy, NEXGEL’s Chief Executive Officer, commented, “The second quarter of 2024 was a record revenue quarter for the Company, totaling $1.44 million, an increase of 23.4% year-over-year and 13.7% sequentially. Branded consumer product revenue was a key growth driver during the quarter led by our Silly George brand, which contributed revenue for approximately half the quarter. At the time of closing on the acquisition, Silly George was on a revenue run rate of $2 million. In July alone Silly George sales were over $380,000 on Shopify only. We continue to be excited with this acquisition and revenue opportunities from our partnerships with STADA and Cintas in the back half of this year.”

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 of 83% and 140% 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 $1.44 million, an increase of $273,000, or 23.4%, as compared to $1.17 million for the quarter ended June 30, 2023. The increase in revenue was driven by sales growth in branded consumer products, including approximately 45 days of revenue from Silly George, partially offset by a decrease in contract manufacturing. Contract manufacturing revenue was impacted by CGN’s move into its new facility and will normalize and grow in the third and fourth quarter of 2024.

Gross profit totaled $410,000 for the three months ended June 30, 2024, compared to a gross profit of $175,000 for the three months ended June 30, 2023. The increase of $235,000 in gross profit year-over-year was primarily due to the increase in branded consumer products.

Gross profit margin for the second quarter of 2024 was 28.5% compared to a gross margin for the second quarter of 2023 of 15.0% and a gross profit margin of 21.9% in the first quarter of 2024.

Cost of revenues increased by $38,000, or 3.8%, to $1.03 million for the three months ended June 30, 2024, as compared to $992,000 for the three months ended June 30, 2023. The increase in cost of revenues is primarily aligned with sales of branded consumer products, partially offset by a decrease in cost of revenues from lower contract manufacturing revenue.

Selling, general and administrative expenses increased by $506,000 or 57.4%, to $1.39 million for the three months ended June 30, 2024, as compared to $882,000 for the three months ended June 30, 2023. The increase in selling, general and administrative expenses is primarily attributable to an increase in advertising, marketing, and Amazon fees, attributable to promotion of Kenkoderm and Silly George. The Company expects these costs to increase in the third quarter with a full quarter of Silly George revenue and with further growth in branded consumer products.

Research and development expenses increased by $21,000 to $76,000 for the three months ended June 30, 2024, from $55,000 for the three months ended June 30, 2023.

Net loss for the three months ended June 30, 2024, was $979,000 as compared to a net loss of $642,000 in the three months ended June 30, 2023.

As of June 30, 2024, the Company had a cash balance of approximately $1.1 million. Subsequent to the end of the quarter, the Company closed on a registered direct offering of $1.11 million, led by insiders. The use of proceeds for the financing is for working capital and the immediate requirement for additional inventory and marketing to meet the higher-than-expected demand for the Silly George brand prod

EX-99.1

2 ex99-1.htm

Exhibit 99.1

NEXGEL

Announces Preliminary Record Second Quarter 2024 Revenue of $1.4 Million and Issues Revenue Guidance for Third and Fourth Quarter of 2024 of $2.2 Million and $2.6 Million, Respectively

LANGHORNE,

Pa., July 8, 2024 — NEXGEL, Inc. (“NEXGEL” or the “Company”) (NASDAQ: NXGL), a leading provider of medical and over-the-counter (OTC) products including ultra-gentle, high-water-content hydrogels for healthcare and consumer applications, today announced preliminary, unaudited revenue for the second quarter of 2024 and has provided revenue guidance for the third and fourth quarter of 2024.

Based on preliminary and unaudited review, the Company anticipates:

● Second Quarter 2024 Revenue: $1.4 million, an increase of approximately 20% year-over-year and 10% sequentially

● Third Quarter 2024 Revenue: $2.2 million, an increase of 83% year-over-year

● Fourth Quarter 2024 Revenue: $2.6 million, an increase of 140% year-over-year

Adam Levy, CEO of NEXGEL, commented, “We are pleased to deliver record revenue for the second quarter of 2024 in spite of lower-than-normal revenues at CG Converting and Packaging due to our move into our newly expanded facility. We are also pleased to provide an outlook for our expected results for the second half of this year that has exceeded our expectations for both contract manufacturing and consumer products. The growth in contract manufacturing is primarily due to new customer relationships with large global corporations. Additionally, many of our brands are also experiencing significant growth. Silly George is leading the way with strong consumer demand for our new Pop-On Lash product line released in May. While our projections for Q3 and Q4 do not yet include any revenue from our relationship with AbbVie, the growth we expect in the second half of this year positions us well to move to positive cash flow from operations.”

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.

Preliminary Second Quarter 2024 Results

This press release sets forth certain preliminary estimates of financial and operating results that we expect to report for the second quarter ended June 30, 2024. We are currently in the process of finalizing our financial results for the June 30, 2024 second quarter, and the preliminary estimated financial information presented above reflects various assumptions and estimates based upon preliminary information available to us as of the date of this press release. This information should not be viewed as a substitute for full unaudited financial statements prepared in accordance with accounting principles generally accepted in the United States for the second quarter ended June 30, 2024. Our independent registered public accounting firm has not reviewed this preliminary estimated financial information. As a result, it remains in all cases subject to change pending finalization. Items or events may be identified or occur after issuance of these preliminary results due to the completion of operational and financial closing procedures. In addition, final adjustments and other developments may arise that would require us to make material adjustments to this preliminary financial information. Therefore, our actual results may differ materially from the current expectations expressed in this release.

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. 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

EX-99.1

2 ex99-1.htm

Exhibit 99.1

NEXGEL

Reports First Quarter 2024 Revenue of $1.27 Million, an Increase of 104% Year-Over-Year

LANGHORNE,

Pa. – May 13, 2024 – 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 its financial results for the first quarter ended March 31, 2024.

Adam Levy, NEXGEL’s Chief Executive Officer, commented, “Following a record year of growth in 2023, I am pleased to report our first quarter financial results that demonstrate steady growth year-over-year and preparedness for significant growth levers we expect in 2024. Revenue for the quarter grew 104% year-over-year driven by growth in both contract manufacturing and consumer branded product business segments of approximately 58% and 178%, respectively. In the first quarter and into the second quarter of this year we are investing for the growth we expect in the back half of this year. We are nearly complete with the capacity expansion of our facility in Texas along with installation of state-of-the art equipment in preparation for product launches with Abbvie and others. Additionally, we expect to launch our first batch of consumer branded products in Europe and are in the final stages of receiving the proper certifications to do so. We have a lot to be excited about regarding our future growth opportunities at NEXGEL.”

First Quarter 2024 Financial Highlights

For the quarter ended March 31, 2024, revenue totaled $1.27 million, an increase of $646,000, or 104%, as compared to $620,000 for the quarter ended March 31, 2023. The increase in revenue was driven by sales growth in contract manufacturing of approximately 58% and branded products of 178%.

Gross profit totaled $277,000 for the three months ended March 31, 2024, compared to a gross profit loss of $57,000 for the three months ended March 31, 2023. The increase of $334,000 in gross profit year-over-year was primarily due to the increase in consumer branded products.

Gross profit margin for the first quarter of 2024 was 21.9% compared to a negative gross margin for the first quarter of 2023 of 9.2% and a gross profit margin of 14.6% in the fourth quarter of 2023.

Cost of revenues increased by $312,000, or 46.1%, to $989,000 for the three months ended March 31, 2024, as compared to $677,000 for the three months ended March 31, 2023. The increase in cost of revenues is primarily aligned with the new product line growth and an increase in compensation and benefits with the increase in revenue growth.

Selling, general and administrative expenses increased by $349,000 or 43.8%, to $1.1 million for the three months ended March 31, 2024, as compared to $797,000 for the three months ended March 31, 2023. The increase in selling, general and administrative expenses is primarily attributable to an increase in advertising, marketing and Amazon fees, professional and consulting fees, and of compensation and benefits expense.

Research and development expenses decreased by $27,000 to $2,000 for the three months ended March 31, 2024, from $29,000 for the three months ended March 31, 2023.

Net loss for the three months ended March 31, 2024, was $905,000 as compared to a net loss of 807,000 in the three months ended March 31, 2023.

As of March 31, 2024, the Company had a cash balance of $2.4 million, which includes an approximate $1 million registered direct offering led by insiders. During the quarter, there was a net usage of cash for investment due to several non-recurring key strategic investments and acquisition costs.

As of March 31, 2024, NEXGEL had 6,227,624 shares of common stock outstanding.

First Quarter 2024 Financial Results Conference Call

Date: May 13, 2024

Time:

4:30 P.M. ET

Live Call: + 1-800-343-5419 (U.S. Toll Free) or + 1-203-518-9731 (International)

Webcast: Events and Presentations

For interested individuals unable to join the conference call, a replay will be available through May 27, 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: 11155952. 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 Dermablock. 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,

EX-99.1

2 ex99-1.htm

Exhibit 99.1

NEXGEL

Reports Full Year 2023 Revenue of $4.1 Million, an Increase of 99.7% Year-Over-Year

LANGHORNE,

Pa. – April 1, 2024 – 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 its financial results for the fourth quarter and full year ended December 31, 2023.

Adam Levy, NEXGEL’s Chief Executive Officer, commented, “2023 was a record year for NEXGEL and transformational in many respects. Our nearly 100% year-over-year revenue growth in 2023 was primarily driven by our branded products and contract manufacturing. Over the course of the year and into our current first quarter, we have significantly expanded our operational infrastructure, solidified several key strategic partnerships with multi-billion-dollar corporations and made key strategic investments, that collectively have our company prepared for what we believe will be significant growth going forward. We have the right product, operational expertise and balance sheet to execute on the multiple growth levers we have including our agreements with Abbvie and STADA.”

Operational Highlights for the Full Year 2023 to Date

●Acquired a 50% interest in a JV with CG Converting and Packaging, LLC for its converting and packaging business.

●CG Converting and Packaging, executed a new supply agreement with AbbVie (NYSE: ABBV), a global biopharmaceutical company to be a supplier of gel pads with AbbVie’s Rapid Acoustic Pulse device being investigated for improvement in the appearance of cellulite.

●Announced a new strategic relationship with Enigma Health, a new joint venture company, for retail distribution and marketing services in North America.

●Acquired Kenkoderm, a privately-owned skincare produce company focused on treating the symptoms of Psoriasis, expanding the Company’s health and wellness consumer product portfolio.

●Announced a partnership with STADA Arzneimittel AG, a European leader in consumer health, to distribute and commercialize consumer health OTC products in North America in 2024.

●Began 12,000 square foot expansion of its CG Converting and Packaging facility in Texas to support the expected growth in product demand from its strategic partnerships as well as continued growth of branded products.

●Closed on a little over $1 million registered direct offering led by insiders.

Full Year and Fourth Quarter 2023 Financial Highlights

For the year ended December 31, 2023, revenue totaled $4.1 million, an increase of $2 million, or 99.7%, as compared to $2 million for the year ended December 31, 2022. The increase in revenue was primarily due to sales growth in contract manufacturing of 166% and an increase in branded product revenue by approximately $427,000, or 52.4%, to $1.24 million.

For the fourth quarter of 2023, revenue totaled $1.1 million, an increase of approximately 110% as compared to $524 thousand in the fourth quarter of 2022. For the fourth quarter of 2023, branded products revenue was $392,000, an increase of 104.2% year-over-year and 10.1% sequentially.

Gross profit totaled $619 thousand for the year ended December 31, 2023, compared to a gross profit of $256 thousand for the year ended December 31, 2022. Gross profit margin for 2023 was approximately 15.2% as compared to gross profit margin of 12.5% for 2022. The increase in the gross profit year-over-year directly correlates to our higher sales.

Gross profit for the fourth quarter of 2023 was $158 thousand compared to $36 thousand for the same period in 2022. Gross profit margin for the fourth quarter of 2023 was 14.6%.

Cost of revenues increased by $1.7 million, or 93.6%, to $3.5 million for the year ended December 31, 2023, as compared to $1.8 million for the year ended December 31, 2022. The increase in cost of revenues pertains to an increase in materials and finished products and equipment, production, and other expenses. These increases primarily align with the increased revenues.

Cost of revenues was $924 thousand for the quarter ended December 31, 2023, an increase of $436 thousand compared to $488 thousand for the quarter ended December 31, 2022. The increase in cost of revenues was attributable to the Company’s revenue growth.

Selling, general and administrative expenses increased by $756, or 23.4%, to $4.0 million for the year ended December 31, 2023, as compared to $3.2 million for the year ended December 31, 2022. The increase in selling, general and administrative expenses is primarily attributable to an increase of compensation and benefits expense, advertising, marketing, and Amazon fees as well as the costs for professional and consulting fees. Selling, general and administrative expenses totaled $1.4 million in the fourth quarter of 2023 as compared to $778 thousand for the same period the prior year.

Research and development expenses decreased by $264 thousand to $103 thous

EX-99.1

2 ex99-1.htm

Exhibit 99.1

NEXGEL

Reports Record Third Quarter 2023 Revenue of $1.2 Million, an Increase of 115% Year-Over-Year

Gross profit margin improved sequentially to 28.2% in Q3 as compared to 15.0% in Q2

LANGHORNE,

Pa. – November 13, 2023 – 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 its financial results for the third quarter ended September 30, 2023.

Adam Levy, NEXGEL’s Chief Executive Officer, commented, “We are pleased to deliver yet another record revenue quarter of $1.2 million, an increase of 115% year-over-year, driven by growth year-over-year in both contract manufacturing and branded consumer products. Importantly, gross margins during the third quarter improved sequentially to 28.2% as compared to 15.0% in the prior second quarter. Our net loss also continued to trend lower quarter-over-quarter, in line with our goal to become profitable in 2024.”

Mr. Levy continued, “We have a lot to be excited about as we near the close of 2023 and head into the new year. Given our growth into retail with Enigma Health as well as partnerships with AbbVie and others, we have strategically invested in inventory and equipment to increase capacity and automation to meet the significant increase in demand we expect for our proprietary hydrogels. We expect our revenue growth year-over-year, margin expansion and net loss decrease trend to continue in the short term as we optimize our operations and growth opportunities come to fruition.”

Operational Highlights in 2023

●NEXGEL’s subsidiary, CG Converting and Packaging, executed a new supply agreement with AbbVie (NYSE: ABBV), a global biopharmaceutical company to be a supplier of gel pads with AbbVie’s Rapid Acoustic Pulse device being investigated for improvement in the appearance of cellulite.

●Announced a new strategic relationship with Enigma Health, a new joint venture company, for retail distribution and marketing services in North America.

Third Quarter 2023 Financial Highlights

For the third quarter of 2023, revenue totaled $1.2 million, an increase of $653 thousand or 115%, as compared to $568 thousand for the same period the year prior. The quarterly increase in overall revenues was primarily due to sales growth in contract manufacturing and branded products year-over-year, including revenue contribution from the joint venture formed with C.G. Laboratories.

Gross profit for the third quarter of 2023 was $344 thousand, compared to a gross profit of $148 thousand for the same prior year period. Gross profit margin for the third quarter of 2023 was 28.2% as compared to 26.1% for the same period the year prior. Gross profit margin increased sequentially to 28.2% during the third quarter of 2023 as compared to 15.0% during the second quarter of 2022.

Total operating expenses, including R&D and SG&A expenses, decreased to $956 thousand for the three months ended September 30, 2023, compared to $1,185 thousand for the prior year period. The year-over-year decrease was attributable to a decrease in total SG&A and the completion of development efforts of two proof of concept studies for drug delivery candidates utilizing our hydrogel technology.

Net loss for the quarter ended September 30, 2023, improved to $550 thousand or $0.10 per basic and diluted share, compared to net loss of $1.2 million or $0.22 per basic and diluted share for the same period in 2022. Net loss also improved sequentially to $550 thousand during the third quarter of 2023 as compared to $642 thousand during the second quarter of 2023.

As of September 30, 2023, NEXGEL had approximately $3.3 million of cash. The delta between our improved net loss during the quarter and net cash decrease period over period relates to an increase in account receivables, and property, plant and equipment investments.

As of November 13, 2023, NEXGEL had 5,717,629 shares of common stock outstanding.

NEXGEL

Third Quarter 2023 Financial Results Conference Call

Management will host a conference call and webcast today at 4:30 p.m. Eastern Time to discuss its operational and financial results for the third quarter 2023.

Date: November 13, 2023

Time:

4:30 P.M. ET

Live Call: +1-877-407-9208 (U.S. Toll Free) or +1-201-493-6784 (International)

Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1640412&tp_key=d1c55ca731

For interested individuals unable to join the conference call, a replay will be available through November 27, 2023, at +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: 13742264. An archived version of the webcast will also be available on NEXGEL’s Investor Relations site: https://ir.nexgel.com/.

About

NEXGEL, INC.

NEXGEL

is a leading provider of ultra-gentle, high-water-content hydrogels for healthcare and consumer applications. Base

EX-99.1

2 ex99-1.htm

Exhibit 99.1

NEXGEL

Reports Second Quarter 2023 Record Revenue of $1.17 Million, an Increase of 108% Year-Over-Year

LANGHORNE,

Pa. – August 14, 2023 – 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 financial results for the second quarter ended June 30, 2023.

Adam Levy, NEXGEL’s Chief Executive Officer, commented, “Record second quarter revenue of $1.17 million, an increase of 108% year-over-year, exceeded our projections. Our contract manufacturing line of business increased 174% year-over-year, predominately due to the full quarter contribution of our joint venture with C.G. Laboratories as well as increased demand from our existing contract customers. New and existing direct-to-consumer branded products also continued to sell through well during the quarter, increasing 44% year-over-year.”

Mr. Levy continued, “During the second quarter, we strategically invested in inventory and capital expenditure to improve equipment and increase capacity in anticipation of demand we expect during the second half of this year and beyond. Thus far the branded products sequential growth trend we saw in the first half of the year has continued into the current third quarter. Taking into account the investments we made during the quarter, we continue to have a sufficient runway of cash to operate and invest in accelerating our growth going forward.”

2023 Operational Highlights to Date

●Announced a new strategic relationship with Enigma Health, a new joint venture company, for retail distribution and marketing services in North America.

●Acquired a 50% interest in a newly formed joint venture (“JV”), CG Converting and Packaging, LLC, with C.G. Laboratories Inc. (“CG Labs”) for its converting and packaging business.

●Executed a supply agreement with a large new customer relating to a new consumer product.

●Launched advertising and marketing initiative, which has increased branded product sales.

Second Quarter 2023 Financial Highlights

For the second quarter of 2023, revenue totaled $1.17 million, an increase of $606 thousand or 108%, as compared to $561 thousand for the same period the year prior. The quarterly increase in overall revenues was primarily due to sales growth in contract manufacturing of 174% and branded products of 44% year-over-year. Revenue for the quarter included a full quarter contribution from the newly formed joint venture with C.G. Laboratories.

Gross profit for the second quarter of 2023 was $175 thousand, compared to a gross profit of $101 thousand for the same prior year period. Gross profit margin for the second quarter of 2023 was 15% as compared to 18% for the same period the year prior. The increase in gross profit was mainly due to the higher volume of contract manufacturing sales against fixed costs partially offset by higher manufacturing labor costs and increased manufacturing of promotional materials and customer product samples to support new product line growth.

Total operating expenses, including R&D and SG&A expenses, increased to $937 thousand for the three months ended June 30, 2023, compared to $819 thousand for the prior year period. The year-over-year increase was attributable to an increase in compensation and benefits and professional fees. Advertising, marketing, and Amazon fees also increased period-over-period to support new product line growth.

Net loss for the quarter ended June 30, 2023, improved to $687 thousand or $0.13 per basic and diluted share, compared to net loss of $1 million or $0.19 per basic and diluted share for the same period in 2022.

As of March 31, 2023, NEXGEL had approximately $4.3 million of cash and cash equivalents and marketable securities. During the quarter the Company invested in inventory and capital expenditures for new equipment and increase in capacity at its manufacturing facility in anticipation of increased demand in contract manufacturing during the second half of 2023.

As of June 30, 2023, NEXGEL had 5,696,064 shares of common stock outstanding.

NEXGEL

Second Quarter 2023 Financial Results Conference Call

Management will host a conference call and webcast today at 4:30 p.m. Eastern Time to discuss its operational and financial results for the second quarter 2023.

Date: August 14, 2023

Time:

4:30 P.M. ET

Live Call: +1-877-300-8521 (U.S. Toll Free) or +1-412-317-6026 (International)

Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1627569&tp_key=69c361dd6d

For interested individuals unable to join the conference call, a replay will be available through August 28, 2023, at +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: 10181557. An archived version of the webcast will also be available on NEXGEL’s Investor Relations site: https://ir.nexgel.com/.

About

NEXGE

EX-99.1

2 ex99-1.htm

Exhibit 99.1

NEXGEL

Reports First Quarter 2023 Financial Results

2023 first quarter revenue increased 56.6% year-over-year to $620 thousand

Approximately $5.8 million in cash and securities at March 31, 2023

Provides second quarter 2023 revenue guidance of $1.0 million, an increase of 78.2% year-over-year

LANGHORNE,

Pa. – May 15, 2023 – 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 financial results for the first quarter ended March 31, 2023.

Adam Levy, NEXGEL’s Chief Executive Officer, commented, “For the first quarter we delivered 56.6% revenue growth year-over-year, driven by increased sales in contract manufacturing and branded consumer products. We also started to see contribution in March from our new joint venture with CG Labs. During the quarter, we launched several new products and invested strategically in sales and marketing to support those launches. We are already starting to see the financial returns from these investments in the second quarter, as well as from our new JV.”

Mr. Levy continued, “Based on the dynamic changes to our business, which include the March 1 joint venture, I feel it’s important to provide a one-time exception to our policy of not providing guidance. Based on these developments and our progress to date, we are projecting $1.0 million in revenue for the second quarter of 2023, an increase of 78.2% year-over-year. Complementing this, we had approximately $5.8 million in cash and cash equivalents at quarter-end, which gives us sufficient runway to operate and the ability to be opportunistic about further potential investments to accelerate our growth.”

First Quarter 2023 Operational Highlights

●Acquired a 50% interest in a newly formed joint venture (“JV”), CG Converting and Packaging, LLC, with C.G. Laboratories Inc. (“CG Labs”) for its converting and packaging business.

●Executed a supply agreement with a large new customer relating to a new consumer product.

●Launched advertising and marketing initiative, which has increased branded product sales.

First Quarter 2023 Financial Highlights

For the first quarter of 2023, revenue totaled $620 thousand and increased by $224 thousand, or 56.6%, compared to $396 thousand for the same period the year prior. The increase in overall revenues was primarily due to sales growth in both contract manufacturing and branded products. Revenue during the first quarter of 2023 includes one full month of revenue contribution from the Company’s newly formed joint venture with C.G. Laboratories.

Gross loss for the first quarter of 2023 was $57 thousand, compared to a gross loss of $22 thousand for the same prior year period. The increase in the loss was mainly due to the increased manufacturing of promotional materials and customer product samples to support our new product line growth. Gross margin loss was approximately 9.2% for the three months ended March 31, 2023, compared to a gross margin loss of 5.6% for the three months ended March 31, 2022.

Cost of revenues was $677 thousand for the quarter ended March 31, 2023, compared to $418 thousand for the quarter ended March 31, 2022.

Total operating expenses, including R&D and SG&A expenses, increased to $826 thousand for the three months ended March 31, 2023, compared to $790 thousand for the prior year period. The increase in the current year was attributable to new product line growth as well as an increase in compensation and benefits, Advertising and Marketing, and professional fees. This was partially offset by lower investor and shareholder services expenses, related to our 2021 uplisting to the Nasdaq.

Net loss for the quarter ended March 31, 2023, improved to $814 thousand or $0.15 per basic and diluted share, compared to net loss of $1.8 million or $0.33 per basic and diluted share for the same period in 2022.

As of March 31, 2023, NEXGEL had approximately $5.8 million of cash and cash equivalents and marketable securities, which includes an investment in U.S. treasuries of $5 million.

As of March 31, 2023, NEXGEL had 5,614,028 shares of common stock outstanding.

2023 Second Quarter Outlook

NEXGEL

currently expects to report second quarter 2023 revenue of $1.0 million, driven by organic growth of existing direct-to-consumer products, the first full quarter of sales from its recent new product launches and a full quarter benefit from its new joint venture with CG Labs.

NEXGEL

First Quarter 2023 Financial Results Conference Call

Management will host a conference call and webcast today at 4:30 p.m. Eastern Time to discuss its operational and financial results for the first quarter 2023.

Date: May 15, 2023

Time:

4:30 P.M. ET

Live Call: +1-888-886-7786 or +1-416-764-8658

Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1609433&tp_key=21ca2e040e

For interested individuals unable to join the con

EX-99.1

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Exhibit 99.1

NEXGEL

Reports Fourth Quarter and Full Year 2022 Financial Results

2022 revenue increased 32% YoY to $2.05 million, while gross profit margin improved

As of December 31, 2022, had over $6.6 million in cash and securities which is sufficient to operate through 2025

LANGHORNE,

Pa. – March 27, 2023 – 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 financial results for the fourth quarter and full year ended December 31, 2022.

Adam Levy, NEXGEL’s Chief Executive Officer, commented, “We are pleased to surpass $2 million in full year revenue for 2022, a 32% year-over-year increase, driven primarily by a 34.7% increase in contract manufacturing and a 67.0% increase in branded consumer products. At year-end, we had over $6.6 million of cash and securities, providing us with ample working capital to execute on our growth plans and operate our business plan through 2025.”

Mr. Levy continued, “As we continue through 2023, we anticipate our investments in R&D and joint ventures, new product launches, and partnerships to generate further year-over-year revenue growth. Our team has continued to navigate a challenging macroeconomic backdrop by being disciplined with cash deployment, while continuing to execute a thoughtful, multi-pronged business strategy to drive our future growth.”

Fourth Quarter 2022 Operational Highlights

●Launched Turfguard, a unique hydrogel dressing for soothing turf burn and protecting athletic wounds. Turfguard’s sterile silver patches, cleared by the U.S. Food and Drug Administration for use on turf burns, kills 99% of staph, MRSA, and strep.

●Reported positive results from proof-of-concept study comparing its diclofenac hydrogel patches designed to treat pain indications such as arthritis, joint pain, muscle aches and more against leading commercially available topical treatments.

●Developed a new, proprietary hydrogel eye patch to treat amblyopia, a type of poor vision that typically occurs in one or both eyes often referred to as lazy eye, that is much gentler on the skin and is manufactured without the use of harsh chemicals or painful adhesives.

●SAGE

Journals’ Scars, Burns and Healing publication, a peer-reviewed journal that focuses on scar and burns research, published new data from a study evaluating the impact of NEXGEL’s SilverSeal® hydrogel dressing on postoperative scarring and complications. The results demonstrated significant scar improvement in patients treated with SilverSeal.

Operational Highlights Subsequent to Fourth Quarter 2022

●Partnered with former Major League Lacrosse player and founder of The Face-off Academy, Greg “The Beast” Gurenlian, to provide athletes with a better treatment for turf burn through the use of NEXGEL’s Turfguard.

●Acquired a 50% interest in a newly formed joint venture (“JV”), CG Converting and Packaging, LLC, with C.G. Laboratories Inc. (“CG Labs”) for its converting and packaging business.

●Executed supply agreement with large new customer relating to a new consumer product.

●Appointed Scott Henry, CFA, as a new independent director to the Company’s Board of Directors as well as a member of the Board’s Audit Committee.

Fourth Quarter and Full Year 2022 Financial Highlights

For the fourth quarter of 2022, revenue totaled $524 thousand, a slight decrease as compared to $533 thousand in the fourth quarter of 2021. During the fourth quarter of 2022, branded consumer product sales as a percentage of revenue was approximately 37%, a change of approximately 4% from the third quarter of 2022 when branded consumer product sales were 41% of revenue. The decrease is predominately due to a slowdown from the Amazon marketplace and supply chain delays that delayed new product launches originally scheduled for early Q4 into late Q4 and early Q1. Contract manufacturing revenue for the fourth quarter 2022 as a percentage of revenue was 57%. In 2023, management expects branded consumer product and contract manufacturing to each contribute approximately 50% to revenue.

For the year ended December 31, 2022, revenue totaled $2.05 million, an increase of $497 thousand, or 32%, when compared to $1.55 million for the year ended December 31, 2021. The increase in overall revenues was primarily due to sales growth year-over-year in both our contract manufacturing of 34.7% and branded products of 67.0%.

Gross profit for the fourth quarter of 2022 was $36 thousand compared to $103 thousand for the same period in 2021 reflecting a higher percentage of lower margin contract manufacturing revenue during the quarter. Gross profit margin for the fourth quarter of 2022 was 7%.

Gross profit was $256 thousand for the year ended December 31, 2022, compared to a gross profit of $8 thousand for the year ended December 31, 2021. The year-over-year increase was primarily due to the increase i

EX-99.1

2 ex99-1.htm

Exhibit 99.1

NEXGEL

Reports Third Quarter 2022 Financial Results

Revenue increased 69.6% YoY while gross profit margin improved both sequentially and YoY to 26%

LANGHORNE,

Pa. – November 8, 2022 – 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 its financial results for the third quarter ended September 30, 2022.

Adam Levy, NEXGEL Chief Executive Officer, commented, “We are pleased to report yet another quarter of year-over-year revenue growth. During the third quarter revenue grew 69.6% while our gross profit margin improved both sequentially and year-over-year, with a gross profit margin of 26% for the three months ended September 30, 2022. At quarter-end, we had $7.4 million in cash and cash equivalents and marketable securities, which provides us ample runway through 2024 and supports our strategic investments in R&D to drive future growth. We expect to grow revenue in 2023 and margins to expand as we continue to scale while realizing the benefits from our fixed facility expense structure.”

Third Quarter 2022 and Recent Operational Highlights

●Appointed Dr. Neil Chesen and Dr. Leonard Nelson to the Company’s Scientific Advisory Board.

●Launched MEDAGEL Hydroliner Pro Pads for the protection of eyelashes during cosmetic extension and lift and tint services. These under-eye pads provide powerful, yet skin-friendly adhesion aimed at isolating the lower lashes.

●Subsequent to quarter-end, NEXGEL reported positive results from its proof-of-concept study comparing its diclofenac hydrogel patches designed to treat pain indications such as arthritis, joint pain, muscle aches and more against leading commercially available topical treatment.

●Developed a new, proprietary hydrogel eye patch to treat amblyopia, a type of poor vision that typically occurs in one or both eyes often referred to as lazy eye, that is much gentler on the skin and is manufactured without the use of harsh chemicals or painful adhesives.

●SAGE

Journals’ Scars, Burns and Healing publication, a peer-reviewed journal that focuses on scar and burns research, published new data from a study evaluating the impact of NEXGEL’s SilverSeal® hydrogel dressing on postoperative scarring and complications. The results demonstrated significant scar improvement in patients treated with SilverSeal.

Third Quarter 2022 Financial Highlights

Revenue for the three months ended September 30, 2022 was $568 thousand, an increase of 69.6%, when compared to $233 thousand for the three months ended September 30, 2021. The increase in overall revenue was due to sales growth in branded consumer products.

Gross profit was $148 thousand for the three months ended September 30, 2022, representing a 26% gross profit margin, compared to a gross profit loss of $57 thousand for the same period in 2021. The improvement was primarily due to higher volume of contract manufacturing sales relative to fixed costs. The Company anticipates continued improvement in gross margins due to both increased revenue against fixed facility expenses and larger production runs on commercially proven products.

Cost of revenues was $420 thousand for the three months ended September 30, 2022, compared to $392 thousand for the three months ended September 30, 2021. The year-over-year increase reflects the higher sales generated in the current year.

Total operating expenses, including R&D and SG&A expenses, increased to $1.2 million for the three months ended September 30, 2022, compared to $553 thousand for the same period in 2021. Increased selling, general and administrative expenses during the period was primarily attributable to an increase of franchise tax expense, increased research and development investment and the costs for professional fees and other administrative expenses in the current period associated with public company governance requirements.

During the third quarter, the Company incurred $220 thousand of franchise tax expense due to the Company’s IPO and related increase in gross assets. In August 2022, the Company reduced its authorized shares at its annual meeting therefore in 2023 franchise tax liability is expected to decrease to approximately $28 thousand on a similar asset base.

Compensation and benefits increased by $31 thousand, or 35.6%, to $118 thousand for the three months ended September 30, 2022, mainly due to the larger number of employees compared to the prior year and as officer compensation increased related to contract renewals. Share-based compensation increased by $40 thousand, or 88.9%, to $85 thousand for the three months ended September 30, 2022.

Other Expenses and professional fees increased by $367 thousand, or 87.8%, to $785 thousand for the three months ended September 30, 2022, compared to $418 thousand for the same period in 2021. This was primary due to an increase in prof

EX-99.1

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Exhibit 99.1

NEXGEL

Reports Second Quarter 2022 Financial Results

Second quarter 2022 revenue increased 35% YoY and 42% sequentially to $561 Thousand

Company sees growth in its branded consumer products and launches MEDAGEL Pro Pads

LANGHORNE,

Pa. – August 10, 2022 – 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 its financial results for the second quarter ended June 30, 2022.

Adam Levy, NEXGEL Chief Executive Officer, commented, “During the second quarter of 2022, we successfully continued to grow revenue year-over-year. I am particularly pleased with our ability to generate positive gross profit during the quarter and, from an operating perspective, we increased our investment in R&D for the long-term growth opportunities of the business. Our growth is attributable to our branded products and contract manufacturing segments. Within the branded product segment, we are focused on expanding our hydrogel line and recently introduced our 11th product in July, MEDAGEL Pro Pads. We also saw increased demand within our contract manufacturing business, which continues to advance as a result of sustained use in our customers’ line extensions. We are moving forward with our plan to advance NEXDrape, our first potential medical device product, and expect clinical data before the end of the year. As of June 30, 2022, we had $9.7 million of cash and cash equivalents, including our investment in treasuries of $5.4 million, which we believe provides us with a very comfortable balance sheet to continue our planned year-over-year growth the foreseeable future and invest in the business.”

Second Quarter 2022 Financial Highlights

Revenue for the three months ended June 30, 2022 was $561 thousand, an increase of 35%, when compared to $417 thousand for the three months ended June 30, 2021, and a sequential increase of 42% as compared to $396 thousand for the first quarter ended March 30, 2022. The increase in our overall revenue was due to sales growth of new products as well as our initiatives in branded consumer products.

Gross profit was $101 thousand, yielding a 18% gross profit margin, for the three months ended June 30, 2022, as compared to a gross profit of $4 thousand for the three months ended June 30, 2021.

Cost of revenues was $460 thousand for the three months ended June 30, 2022, as compared to $413 thousand for the three months ended June 30, 2021. The increase in cost of revenues is primarily aligned with the increase in revenues in the current year.

Operating expenses, including R&D and SG&A expenses, increased by $262 thousand to $819 thousand for the three months ended June 30, 2022, as compared to $557 thousand for the three months June 30, 2021. During the quarter R&D totaled $111 thousand as compared to $10 thousand during the second quarter of 2021 and $24 thousand during the first quarter of 2022. The increase in SG&A expenses is primarily attributable to increases in compensation and benefits and costs for professional fees and other administrative expenses associated with public company governance requirements.

As of June 30, 2022, NEXGEL had $9.7 million of cash and cash equivalents, which includes an investment in treasuries of $5.4 million.

Second Quarter 2022 Operational Highlights

Launched MEDAGEL Hydroliner Pro Pads. The MEDAGEL Pro Pads are for protecting eyelashes during cosmetic extension and lift and tint services. These under-eye pads provide powerful, yet skin-friendly adhesion aimed at isolating the lower lashes.

Conference Call Details

Management will host a conference call and webcast today at 4:30 p.m. Eastern Time to discuss its quarterly operational and financial results for the second quarter 2022.

NEXGEL

Second Quarter 2022 Results Conference Call

Date: August 10, 2022

Time:

4:30 P.M. ET

Live Call: +1-877-407-9208 (U.S. Toll Free) or +1-201-493-6784 (International)

Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1562627&tp_key=63fb56d71d

For interested individuals unable to join the conference call, a replay will be available through August 17, 2022, at +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: 13732071. An archived version of the webcast will also be available on NEXGEL’s Investor Relations site: https://ir.nexgel.com/.

About

NEXGEL, INC.

NEXGEL

is a leading provider of ultra-gentle, high-water-content hydrogels for healthcare and consumer applications. Based in Langhorne, Pa., the Company has developed and manufactured electron-beam, cross-linked hydrogels for over two decades. NEXGEL has formulated more than 200 different combinations to bring natural ingredients to gentle skin patches that can be worn for long periods of time with little to no irritation.

Forward-Looking

Statement

This

EX-99.1

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EXHIBIT 99.1

Exhibit 99.1

NEXGEL

Reports First Quarter 2022 Financial Results

First quarter 2022 revenue increased 48% YoY to $396 Thousand

Company launched two new consumer OTC products using its HYDROGEL Technology: The MEDAGEL ClearComfort Hydrogel Patch and The MEDAGEL Bug Bite Relief Patch

LANGHORNE, Pa. – May 12, 2022 – 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 its financial results for the first quarter ended March 31, 2022.

Adam Levy, NEXGEL Chief Executive Officer, commented, “We are pleased with our financial results for the quarter. We have remained focused on our growth strategy within each of our core business segments - branded products, contract manufacturing, and medical devices. Our consumer segment had a strong start to the year with the launch of two new OTC products, The MEDAGEL ClearComfort Hydrogel Patch and The MEDAGEL Bug Bite Relief Patch. MEDAGEL now has 10 SKUs available on Amazon, and the products continue to be a steady contributor to our revenue growth. In our contract manufacturing segment, we are making progress on growing the business through our new offering that allows OTC brands to leverage our hydrogel products for line extensions for their products. We are making progress with this strategy and are focused on expanding the business. Lastly, we remain committed our medical device segment and continue to make advancements on our first product, NEXDrape, which is in the research and development phase. We expect our revenue growth year-over-year trend to continue for the foreseeable future.”

First Quarter 2022 Financial Highlights

Revenue for the three months ended March 31, 2022, was $396 thousand, an increase of $129 thousand, or 48%, when compared to $267 thousand for the three months ended March 31, 2021. The increase in our overall revenue was due to sales growth of new products as well as our initiatives in branded consumer products.

Gross loss for the first quarter of 2022 was $22 thousand, compared to a gross loss of $42 thousand for the three months ended March 31, 2021.

Cost of revenues increased by $109 thousand, or 35%, to $418 thousand for the three months ended March 31, 2022, as compared to $309 thousand for the three months ended March 31, 2021. The increase in cost of revenues is primarily aligned with the new product line growth in the current year.

Operating expenses, including research and development and selling, general and administrative expenses, increased by $312 thousand to $790 thousand for the three months ended March 31, 2022, as compared to $478 thousand for the three months ended March 31, 2021. The increase in Selling, general and administrative expenses is primarily attributable to costs for professional fees and other administrative expenses in the current period associated with public company governance requirements.

Cash and cash equivalents as of March 31, 2022 was $10.50 million as compared to $13.4 million as of December 31, 2021, primarily due to the Company’s principle payments of notes payable in the amount of approximately $2 million.

First Quarter 2022 Operational Highlights

Launched MEDAGEL ClearComfort Hydrogel Patch. MEDAGEL patches use NEXGEL's advanced hydrogel technology to prevent and treat foot blisters by comfortably insulating the skin from friction caused by rubbing and chafing in shoes. They are available in a variety of shapes, including a customizable sheet that allows consumers to cut and create a perfect fit for their specific shoe needs. The product is available for sale on Amazon.com.

Launched MEDAGEL Bug Bite Relief Patch. Made in the USA, the MEDAGEL Bug Bite Relief Patches are skin-friendly and infused with skin-calming Arnica flower and pain-reducing Lidocaine to help reduce discomfort. The product is available for sale on Amazon.com.

Conference Call Details

Management will host a conference call and webcast today at 4:30 p.m. Eastern Time to discuss its quarterly operational and financial results for the first quarter 2022.

Event: NEXGEL First Quarter 2022 Results Conference Call

Date: May 12, 2022

Time:

4:30 P.M. ET

Live Call: 1-877-270-2148 (U.S. Toll Free) or + 1-412-902-6510 (International)

Webcast: https://services.choruscall.com/mediaframe/webcast.html?webcastid=jP97vpF5

For interested individuals unable to join the conference call, a replay will be available through August 12, 2022, at + 1-877-344-7529 (U.S. Toll Free) or 1-412-317-0088 (International). Participants must use the following code to access the replay of the call: 9940170. An archived version of the webcast will also be available on NEXGEL's Investor Relations site: https://ir.nexgel.com/.

About NEXGEL, INC.

NEXGEL is a leading provider of ultra-gentle,

high-water-content hydrogels for healthcare and consumer applications. Based in Lang

EX-99.1

2 tm2210038d1_ex99-1.htm

EXHIBIT 99.1

Exhibit 99.1

NEXGEL

Reports Fourth Quarter and Full Year 2021 Financial Results

Full year 2021 revenue increased 130% YoY to $1.55 million

As of December 31, 2021, the Company had $13.35 million in cash

LANGHORNE, Pa. – March 21, 2022 – 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 its financial results for the fourth quarter and full year periods ended December 31, 2021.

“2021 was a milestone year for NEXGEL – we completed a $14.2 million initial public offering and began trading on NASDAQ under the ticker symbol NXGL. Furthermore, we brought on new leadership with deep experience in commercializing healthcare assets with the appointment of Miranda Toledano to the Board of Directors and Adam Drapczuk as Chief Financial Officer,” said Adam Levy, NEXGEL Chief Executive Officer.

Mr. Levy continued, “We believe we have growth opportunities in all three new operating verticals – medical devices, branded products, and white/custom label manufacturing, each of which leverage our unique and proprietary hydrogel manufacturing capabilities. We developed concrete milestones to execute on these opportunities and already have seen rapid growth in our branded products and white/custom label manufacturing verticals. We are pleased with the 130% and 428% year-over-year revenue growth for the 2021 full year and fourth quarter, respectively, and fully expect to continue to enjoy year-over-year revenue growth in 2022 while we prudently manage operating expenses. As of December 31, 2021, we had $13.35 million in cash, which is sufficient working capital to accelerate our growth going forward.”

Fourth Quarter and Full Year 2021 Financial Highlights

·Revenue for the full year 2021 was $1.55 million, an increase of $877 thousand compared to revenue of $674 thousand for the year ago period. Revenue for the three months ended December 31, 2021 was $533 thousand, up $432 thousand compared to the three months ended December 31, 2020. The increase in fourth quarter and full year revenue was due to sales growth in our proprietary branded products and white/custom label manufacturing vertical.

·Gross profit for the twelve months ended December 31, 2021 was $9 thousand compared to a gross loss of $291 thousand for the year ended December 31, 2020. Gross profit reported for the quarter ended December 31, 2021 was $104 thousand, an increase of $242 thousand compared to the year ago quarter. The increase in gross profit for both periods was primarily due to the higher volume of sales against fixed facility and labor costs.

·Cost of revenue increased by $577 thousand to $1.5 million for the year ended December 31, 2021, as compared to $965 thousand for the year ended December 31, 2020. Cost of revenue reported for the quarter ended December 31, 2021 was $429 thousand, an increase of $190 thousand compared to the year ago quarter. The increase in quarterly and full year cost of revenue was attributable to the new product line growth.

·Operating Expenses, including Research and Development and Selling, General and Administrative expenses, increased by $610 thousand to $2.58 million for the year ended December 31, 2021, as compared to $1.97 million for the year ended December 31, 2020. Operating expenses for the three months ended December 31, 2021 were $991 thousand, an increase of $454 thousand compared to the three months ended December 31, 2020. The increase in operating expenses was primarily attributable to our costs for professional fees, driven by one-time costs associated with the NASDAQ listing, executive compensation, share-based compensation and other administrative expenses.

·Reported an EBITDA loss of $2.27 million for the year ended December 31, 2021 compared to an EBITDA loss of $2.20 million for the year ended December 31, 2020.

·Reported $13.35 million of cash at December 31, 2021.

Fourth Quarter and Full Year 2021 Operational Highlights

1)Closed $14.2 million IPO and initiated trading of NEXGEL common stock and warrants on The Nasdaq Capital Market on December 22, 2021, under the symbols "NXGL" and "NXGLW," respectively.

2)Appointed Miranda Toledano to its Board of Directors. Ms. Toledano brings over 20 years of biotech, principal investment and capital markets experience to NEXGEL. Since its founding in 2018, Ms. Toledano served as Chief Operating Officer, Chief Financial Officer and Board member at TRIGR Therapeutics, a clinical stage immuno-oncology biotech company, recently acquired by Compass Therapeutics.

3)Appointed Steven Glassman and Yaakov Spinrad to its Board of Directors. Mr. Glassman and Mr. Sprinrad have extensive capital markets networks and years of executive leadership experience across various industries.

4)Closed $1.62 million private placement led by the Board of Directors.

5)Appointed Adam Drapczuk