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 /PRNewswire/ -- 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
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 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 including the impact of the COVID-19
pandemic. The Company disclaims any intention to, and undertakes no
obligation to, revise any forward-looking statements, whether as a
result of new information, a future event, or otherwise. For
additional risks and uncertainties that could impact the Company's
forward-looking statements, please see the Company's Annual Report
on Form 10-K for the year ended December 31,
2021, including but not limited to the discussion under
"Risk Factors" therein, which the Company filed with the SEC and
which may be viewed at http://www.sec.gov/.
Investor Contacts:
Valter
Pinto
KCSA Strategic Communications
212.896.1254 / 212.896.1254
valter@kcsa.com / nstaab@kcsa.com
Media Contacts:
Caitlin
Kasunich / Raquel Cona
KCSA Strategic Communications
212.896.1241 / 516.779.2630
ckasunich@kcsa.com / rcona@kcsa.com
NEXGEL,
INC CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2022 AND DECEMBER 31, 2021
(Unaudited)
(in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
ASSETS:
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash
|
|
$
|
10,520
|
|
$
|
13,350
|
Accounts receivable,
net
|
|
|
132
|
|
|
209
|
Inventory
|
|
|
280
|
|
|
291
|
Prepaid expenses and
other current assets
|
|
|
167
|
|
|
77
|
Total current
assets
|
|
|
11,099
|
|
|
13,927
|
Goodwill
|
|
|
311
|
|
|
311
|
Intangibles,
net
|
|
|
30
|
|
|
33
|
Property and
equipment, net
|
|
|
698
|
|
|
723
|
Operating lease -
right of use asset
|
|
|
1,879
|
|
|
1,926
|
Other
assets
|
|
|
63
|
|
|
63
|
Total
assets
|
|
$
|
14,080
|
|
$
|
16,983
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
183
|
|
$
|
254
|
Accrued expenses and
other current liabilities
|
|
|
57
|
|
|
62
|
Deferred
Revenue
|
|
|
—
|
|
|
—
|
Convertible notes
payable
|
|
|
894
|
|
|
2,037
|
Note payable, current
portion
|
|
|
14
|
|
|
10
|
Warrant
liability
|
|
|
449
|
|
|
318
|
Operating lease
liability, current portion
|
|
|
207
|
|
|
207
|
Total current
liabilities
|
|
|
1,804
|
|
|
2,888
|
Long-Term
Liabilities:
|
|
|
|
|
|
|
Operating lease
liability, net of current portion
|
|
|
1,707
|
|
|
1,744
|
Notes payable, net of
current portion
|
|
|
265
|
|
|
266
|
Total long-term
liabilities
|
|
|
1,972
|
|
|
2,010
|
Total
liabilities
|
|
|
3,776
|
|
|
4,898
|
|
|
|
|
|
|
|
Commitments and
Contingencies (Note 15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock, par
value $0.001 per share, 5,000,000 shares authorized, no shares
issued and outstanding
|
|
|
—
|
|
|
—
|
Common Stock, par
value $0.001 per share, 750,000,000 shares authorized;
5,572,234 shares issued and outstanding as of March 31, 2022 and
December 31, 2021, respectively
|
|
|
6
|
|
|
6
|
Additional paid-in
capital
|
|
|
18,946
|
|
|
18,891
|
Accumulated
deficit
|
|
|
(8,648)
|
|
|
(6,812)
|
Total stockholders'
equity
|
|
|
10,304
|
|
|
12,085
|
Total liabilities and
stockholders' equity
|
|
$
|
14,080
|
|
$
|
16,983
|
NEXGEL,
INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021
(Unaudited)
(in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
March 31,
|
|
|
2022
|
|
2021
|
Revenues,
net
|
|
$
|
396
|
|
$
|
267
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
418
|
|
|
309
|
|
|
|
|
|
|
|
Gross loss
|
|
|
(22)
|
|
|
(42)
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Research and
development
|
|
|
24
|
|
|
7
|
Selling, general and
administrative
|
|
|
766
|
|
|
471
|
Total operating
expenses
|
|
|
790
|
|
|
478
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(812)
|
|
|
(520)
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
Interest income
(expense), net
|
|
|
(744)
|
|
|
(148)
|
Loss on debt
extinguishment
|
|
|
(150)
|
|
|
(25)
|
Debt discount
costs
|
|
|
—
|
|
|
(17)
|
Changes in fair value
of warrant liability
|
|
|
(130)
|
|
|
6
|
Total other income
(expense)
|
|
|
(1,024)
|
|
|
(184)
|
Loss before income
taxes
|
|
|
(1,836)
|
|
|
(704)
|
Income tax
expense
|
|
|
—
|
|
|
—
|
Net loss
|
|
$
|
(1,836)
|
|
$
|
(704)
|
Net loss per common
share - basic
|
|
$
|
(0.33)
|
|
$
|
(0.25)
|
Net loss per common
share - diluted
|
|
$
|
(0.33)
|
|
$
|
(0.25)
|
Weighted average
shares used in computing net loss per common share -
basic
|
|
|
5,572,234
|
|
|
2,873,008
|
Weighted average
shares used in computing net loss per common share –
diluted
|
|
|
5,572,234
|
|
|
2,873,008
|
NEXGEL,
INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS'
EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021
(Unaudited)
(in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained
|
|
|
|
|
|
|
|
|
|
Additional
|
|
Earnings
|
|
Total
|
|
|
Common Stock
|
|
Paid-in
|
|
(Accumulated
|
|
Stockholders'
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Deficit)
|
|
Equity
(Deficit)
|
Balance, January 1,
2022
|
|
5,572,234
|
|
$
|
6
|
|
$
|
18,891
|
|
$
|
(6,812)
|
|
$
|
12,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
—
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,836)
|
|
|
(1,836)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
March 31, 2022
|
|
5,572,234
|
|
$
|
6
|
|
$
|
18,946
|
|
$
|
(8,648)
|
|
$
|
10,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained
|
|
|
|
|
|
|
|
|
|
Additional
|
|
Earnings
|
|
Total
|
|
|
Common Stock
|
|
Paid-in
|
|
(Accumulated
|
|
Stockholders'
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Deficit)
|
|
Equity
(Deficit)
|
Balance, January 1,
2021
|
|
2,838,047
|
|
$
|
3
|
|
$
|
2,570
|
|
$
|
(2,502)
|
|
$
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
—
|
|
|
—
|
|
|
69
|
|
|
—
|
|
|
69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted stock
vesting
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuances of common
stock, net of issuance costs
|
|
101,800
|
|
|
—
|
|
|
285
|
|
|
—
|
|
|
285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrants issued for
debt issuance
|
|
—
|
|
|
—
|
|
|
(17)
|
|
|
—
|
|
|
(17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beneficial conversion
and warrant features of convertible debt
|
|
—
|
|
|
—
|
|
|
1,276
|
|
|
—
|
|
|
1,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(704)
|
|
|
(704)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
March 31, 2021
|
|
2,939,847
|
|
$
|
3
|
|
$
|
4,203
|
|
$
|
(3,206)
|
|
$
|
1,000
|
NEXGEL,
INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021
(Unaudited)
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
Operating
Activities
|
|
|
|
|
|
|
Net loss
|
|
$
|
(1,836)
|
|
$
|
(704)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
28
|
|
|
27
|
Changes in ROU asset
and operating lease liability
|
|
|
10
|
|
|
—
|
Share-based
compensation
|
|
|
55
|
|
|
90
|
Changes in fair value
of warrant liability
|
|
|
130
|
|
|
(6)
|
Amortization of
deferred financing costs
|
|
|
741
|
|
|
108
|
Loss on
extinguishment of debt
|
|
|
150
|
|
|
25
|
Beneficial conversion
feature in excess of face value
|
|
|
—
|
|
|
51
|
|
|
|
|
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
77
|
|
|
(23)
|
Inventory
|
|
|
11
|
|
|
(19)
|
Prepaid expenses and
other assets
|
|
|
(90)
|
|
|
121
|
Accounts
payable
|
|
|
(71)
|
|
|
(14)
|
Accrued expenses and
other liabilities
|
|
|
(2)
|
|
|
(1)
|
Net Cash Used in
Operating Activities
|
|
|
(797)
|
|
|
(345)
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
—
|
|
|
(267)
|
Net Cash Used in
Investing Activities
|
|
|
—
|
|
|
(267)
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
Issuance of common
stock, net of issuance costs
|
|
|
—
|
|
|
285
|
Proceeds from notes
payable
|
|
|
—
|
|
|
15
|
Principle payment of
notes payable
|
|
|
(2,033)
|
|
|
(15)
|
Proceeds from notes
payable (PPP)
|
|
|
—
|
|
|
128
|
Proceeds from
convertible notes
|
|
|
—
|
|
|
1,337
|
Principal payment on
convertible notes
|
|
|
—
|
|
|
(100)
|
Net Cash Provided
by Financing Activities
|
|
|
(2,033)
|
|
|
1,650
|
Net Increase in
Cash
|
|
|
(2,830)
|
|
|
1,038
|
Cash – Beginning of
period
|
|
|
13,350
|
|
|
32
|
Cash – End of
period
|
|
$
|
10,520
|
|
$
|
1,070
|
Supplemental
Disclosure of Cash Flows Information
|
|
|
|
|
|
|
Cash paid during the
year for:
|
|
|
|
|
|
|
Interest
|
|
|
—
|
|
|
—
|
Taxes
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
Supplemental Non-cash
Investing and Financing activities
|
|
|
|
|
|
|
Fair value of
beneficial conversion and warrant features of Convertible Notes
Payable
|
|
$
|
—
|
|
$
|
1,276
|
Original issue
discounts recognized on Convertible Notes Payable
|
|
$
|
—
|
|
$
|
343
|
Warrants issued for
debt and equity financing costs
|
|
$
|
—
|
|
$
|
130
|
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multimedia:https://www.prnewswire.com/news-releases/nexgel-reports-first-quarter-2022-financial-results-301546564.html
SOURCE NEXGEL