NexGel, Inc. reported significant financial growth in its latest 10-K filing for the fiscal year ending December 31, 2024, with revenues reaching $8.7 million, a 112.5% increase from $4.1 million in 2023. This surge in revenue was primarily driven by the expansion of its branded consumer products, particularly the Silly George brand, which contributed approximately $2.9 million since its acquisition in May 2024. The company's gross profit also saw a substantial rise, climbing to $2.7 million, compared to $374,000 in the previous year, resulting in a gross profit margin of 31.6%, up from 9.1%.
The company experienced a notable increase in operating expenses, which rose by 63.9% to $6.3 million, largely due to higher selling, general, and administrative costs associated with the marketing of its new product lines. Research and development expenses decreased slightly to $78,000 from $103,000 in 2023. Despite the revenue growth, NexGel reported a net loss of $3.5 million, slightly higher than the $3.2 million loss in 2023, reflecting ongoing investments in its business expansion and product development.
Strategically, NexGel has made significant moves to enhance its market position, including the acquisition of the Kenkoderm skincare line in December 2023 and the Silly George beauty brand in May 2024. These acquisitions are part of a broader strategy to diversify its product offerings and increase market share in the consumer health and beauty sectors. Additionally, the formation of a joint venture with CG Laboratories, Inc. in May 2023 aims to bolster its capabilities in converting and packaging, further supporting its growth objectives.
Operationally, NexGel's customer base has expanded, with a focus on increasing its presence in both domestic and international markets. The company reported a working capital of $2.6 million as of December 31, 2024, an increase from $2.5 million in the previous year, indicating improved liquidity. However, the company continues to face challenges, including reliance on a limited number of customers and the need for ongoing capital to support its growth initiatives. As part of its future outlook, NexGel anticipates continued investment in product development and marketing, with plans to explore additional acquisitions to enhance its portfolio and drive revenue growth.
About NEXGEL, INC.
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