• NEXGEL Reports Second Quarter 2022 Financial Results

    来源: Nasdaq GlobeNewswire / 10 8月 2022 16:05:01   America/New_York

    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., Aug. 10, 2022 (GLOBE NEWSWIRE) -- NEXGEL, Inc. (“NEXGEL” or the “Company”) (NASDAQ: “NXGL”), a leading provider of ultra-gentle, high-water-content hydrogel products for healthcare and consumer applications, today announced 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 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, Managing Director
    KCSA Strategic Communications
    212.896.1254
    valter@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 JUNE 30, 2022 AND DECEMBER 31, 2021
    (Unaudited)
    (in thousands, except share and per share data)

      June 30,  December 31, 
      2022  2021 
    ASSETS:        
    Current Assets:        
    Cash and cash equivalents $4,420  $13,350 
    Marketable securities  5,371   - 
    Accounts receivable, net  300   209 
    Inventory  381   291 
    Prepaid expenses and other current assets  313   77 
    Total current assets  10,785   13,927 
    Goodwill  311   311 
    Intangibles, net  26   33 
    Property and equipment, net  704   723 
    Operating lease - right of use asset  1,832   1,926 
    Other assets  113   63 
    Total assets $13,771  $16,983 
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Current Liabilities:        
    Accounts payable $522  $254 
    Accrued expenses and other current liabilities  85   62 
    Convertible notes payable  1,240   2,037 
    Note payable, current portion  18   10 
    Warrant liability  419   318 
    Operating lease liability, current portion  207   207 
    Total current liabilities  2,491   2,888 
    Long-Term Liabilities:        
    Operating lease liability, net of current portion  1,669   1,744 
    Notes payable, net of current portion  263   266 
    Total long-term liabilities  1,932   2,010 
    Total liabilities  4,423   4,898 
             
    Commitments and Contingencies (Note 14)        
             
    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 June 30, 2022 and December 31, 2021, respectively  6   6 
    Additional paid-in capital  19,025   18,891 
    Accumulated deficit  (9,683)  (6,812)
    Total stockholders’ equity  9,348   12,085 
    Total liabilities and stockholders’ equity $13,771  $16,983 


    NEXGEL, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021
    (Unaudited)
    (in thousands, except share and per share data)

      Three Months Ended  Six Months Ended 
      June 30,  June 30, 
      2022  2021  2022  2021 
    Revenues, net $561  $417  $956  $683 
                     
    Cost of revenues  460   413   884   722 
                     
    Gross (loss)/profit  101   4   72   (39)
                     
    Operating expenses                
    Research and development  111   10   135   17 
    Selling, general and administrative  708   547   1,467   1,017 
    Total operating expenses  819   557   1,602   1,034 
                     
    Loss from operations  (718)  (553)  (1,530)  (1,073)
                     
    Other income (expense)                
    Interest expense  (348)  (370)  (1,092)  (518)
    Loss on debt extinguishment        (150)  (25)
    Debt discount costs     (52)     (68)
    Other income  2   147   2   147 
    Changes in fair value of warrant liability  29   2   (101)  8 
    Total other income (expense)  (317)  (273)  (1,341)  (456)
    Loss before income taxes  (1,035)  (826)  (2,871)  (1,529)
    Income tax expense            
    Net loss $(1,035) $(826)  (2,871)  (1,529)
    Net loss per common share - basic $(0.19) $(0.28)  (0.52)  (0.52)
    Net loss per common share - diluted $(0.19) $(0.28)  (0.52)  (0.52)
    Weighted average shares used in computing net loss per common share - basic  5,572,234   2,939,837   5,572,234   2,918,759 
    Weighted average shares used in computing net loss per common share – diluted  5,572,234   2,939,837   5,572,234   2,918,759 


    NEXGEL, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
    FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021
    (Unaudited)
    (in thousands, except share data)

      Common Stock  Additional
    Paid-in
      Retained
    Earnings
    (Accumulated
      Total
    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 
                         
    Stock-based compensation  -   -   54   -   54 
                         
    Restricted stock vesting  -   -   25   -   25 
                         
    Net loss  -   -   -   (1,035)  (1,035)
                         
    Balance, June 30, 2022  5,572,234  $6  $19,025  $(9,683) $9,348 


      Common Stock  Additional
    Paid-in
      Retained
    Earnings
    (Accumulated
      Total
    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  -   -   21   -   21 
                         
    Issuances of common stock, net of issuance costs  101,800   -   285   -   285 
                         
    Warrants issued for debt issuance  -   -   (18)  -   (18)
                         
    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 
                         
    Stock-based compensation  -   -   74   -   74 
                         
    Restricted stock vesting  39,324   -   21   -   21 
                         
    Net loss  -   -   -   (826)  (826)
                         
    Balance, June 30, 2021  2,979,171  $3  $4,298  $(4,032) $269 


    NEXGEL, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021
    (Unaudited)
    (in thousands)

      Six Months Ended June 30, 
      2022  2021 
    Operating Activities        
    Net loss $(2,871) $(1,529)
    Adjustments to reconcile net loss to net cash used in operating activities:        
    Depreciation and amortization  57   56 
    Changes in ROU asset and operating lease liability  19   6 
    Share-based compensation  134   185 
    Changes in fair value of warrant liability  101   (8)
    Amortization of deferred financing costs  1,086   528 
    Loss on extinguishment of debt  150   24 
    Forgiveness of debt  -   (148)
    Beneficial conversion feature in excess of face value  -   51 
             
    Changes in operating assets and liabilities:        
    Accounts receivable  (91)  (146)
    Inventory  (90)  7 
    Prepaid expenses and other assets  (286)  61 
    Accounts payable  268   (67)
    Accrued expenses and other liabilities  28   (15)
    Deferred revenue  -   (38)
             
    Net Cash Used in Operating Activities  (1,495)  (1,033)
             
    Investing Activities        
    Investment in marketable securities  (5,371)  - 
    Capital expenditures  (31)  (267)
    Net Cash Used in Investing Activities  (5,402)  (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 (Used In) Financing Activities  (2,033)  1,650 
    Net Increase (Decrease) in Cash and Cash Equivalents  (8,930)  350 
    Cash and Cash Equivalents – Beginning of period  13,350   32 
    Cash and Cash Equivalents – End of period $4,420  $382 
    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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