NexGel, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company’s total assets increased to $10,572,000 from $9,955,000 at the end of 2023. However, current assets decreased to $4,610,000, down from $5,052,000, primarily due to a reduction in cash and cash equivalents, which fell to $1,059,000 from $2,700,000. Total liabilities rose to $5,586,000, compared to $4,789,000 at the end of 2023, with current liabilities increasing to $3,048,000 from $2,549,000.

NexGel's revenue for the three months ended September 30, 2024, reached $2,940,000, a substantial increase of 140.8% from $1,221,000 in the same period in 2023. For the nine months ended September 30, 2024, revenues totaled $5,647,000, an 87.8% increase from $3,007,000 in the prior year. The growth was significantly driven by branded consumer products, particularly the Silly George line, which generated $1,373,000 in gross revenue for the quarter.

Gross profit for the three months ended September 30, 2024, was $1,282,000, compared to $344,000 in 2023, resulting in a gross profit margin of 43.6%, up from 28.2%. For the nine-month period, gross profit was $1,969,000, with a margin of approximately 34.9%, compared to 15.3% in the previous year. However, selling, general, and administrative expenses rose sharply to $2,070,000 for the quarter, up from $950,000, driven by increased advertising and marketing costs. Total operating expenses for the three months were $2,070,000, compared to $956,000 in 2023.

Despite the revenue growth, NexGel reported a net loss of $754,000 for the three months ended September 30, 2024, compared to a loss of $552,000 in the same period in 2023. For the nine months, the net loss was $2,639,000, up from $2,001,000 in the prior year. The company’s cash usage in operating activities also increased, totaling $3,008,000 for the nine months, compared to $2,649,000 in 2023.

Strategically, NexGel has made recent acquisitions, including the purchase of assets from Semmens Online Pty Ltd for the Silly George brand and from Olympus Trading Company, LLC for the Kenkoderm skincare line. The company is also exploring new product channels in cosmetics and medical devices, while maintaining its contract manufacturing business. As of September 30, 2024, NexGel had $345,000 outstanding under its Margin Line of Credit, an increase from $245,000 at the end of 2023.