Quarterly report pursuant to Section 13 or 15(d)

Business Segments

v3.24.3
Business Segments
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Business Segments

4. Business Segments

 

The Company’s CODM evaluates the financial performance of the Company’s segments based upon segment adjusted operating income or (loss) as the profitability measure. Items outside of adjusted operating income or (loss) are not reported by segment, since they are excluded from the single measure of segment profitability reviewed by the CODM.

 

Summarized financial information concerning the Company’s reportable segments for each of the quarters ended September 30, 2024 and 2023 is presented below.

 

For Quarter Ended September 30, 2024 ($ in thousands)

 

    NexGel     CGN JV     Total  
Revenue                        
Contract Manufacturing   $ 396     $ 468     $ 864  
Custom and White Label Finished Goods     -       -       -  
Branded Consumer Products     1,930       -       1,930  
Other income     109       37       146  
Total revenue     2,435       505       2,940  
                         
Cost of sales     1,155       503       1,658  
Operating expenses     1,873       197       2,070  
Loss from operations   $ (593 )   $ (195 )   $ (788 )

 

For Quarter Ended September 30, 2023 ($ in thousands)

 

    NexGel     CGN JV     Total  
Revenue                        
Contract Manufacturing   $ 223     $ 582     $ 805  
Custom and White Label Finished Goods     5       -       5  
Branded Consumer Products     356       -       356  
Other income     53       2       55  
Total revenue     637       584       1,221  
                         
Cost of sales     444       433       877  
Operating expenses     799       157       956  
Loss from operations   $ (606 )   $ (6 )   $ (612 )

 

 

For the Nine Months Ended September 30, 2024 ($ in thousands)

 

    NexGel     CGN JV     Total  
Revenue                        
Contract Manufacturing   $ 665     $ 1,225     $ 1,890  
Custom and White Label Finished Goods     42       -       42  
Branded Consumer Products     3,515       -       3,515  
Other income     156       44       200  
Total revenue     4,378       1,269       5,647  
                         
Cost of sales     2,504       1,174       3,678  
Operating expenses     4,182       500       4,682  
Loss from operations   $ (2,308 )   $ (405 )   $ (2,713 )

 

For the Nine Months Ended September 30, 2023 ($ in thousands)

 

    NexGel     CGN JV     Total  
Revenue                        
Contract Manufacturing   $ 702     $ 1,370     $ 2,072  
Custom and White Label Finished Goods     10       -       10  
Branded Consumer Products     850       -       850  
Other income     70       5       75  
Total revenue     1,632       1,375       3,007  
                         
Cost of sales     1,525       1,021       2,546  
Operating expenses     2,476       243       2,719  
Loss from operations   $ (2,369 )   $ 111     $ (2,258 )

 

As of September 30, 2024 ($ in thousands)

 

    NexGel     CGN JV     Total  
Assets:                        
Current assets:                        
Cash   $ 1,049     $ 10     $ 1,059  
Accounts receivable, net     446       448       894  
Inventory     1,186       592       1,778  
Prepaid expenses and other current assets     860       19       879  
Total current assets     3,541       1,069       4,610  
                         
Goodwill     1,124       -       1,124  
Intangibles, net     694       145       839  
Property and equipment, net     818       1,401       2,219  
Operating lease – right of use asset     1,395       290       1,685  
Other assets     95       -       95  
Total Assets   $ 7,667     $ 2,905     $ 10,572  
                         
Liabilities                        
Current liabilities:                        
Accounts payable   $ 883     $ 622     $ 1,505  
Accrued expenses and other current liabilities     583       26       609  
Deferred revenue     -       179       179  
Current portion of note payable     8       75       83  
Warrant liability     109       -       109  
Contingent consideration liability     271       -       271  
Financing lease liability, current portion     -       58       58  
Operating lease liabilities, current portion     208       26       234  
Total current liabilities     2,062       986       3,048  
                         
Financing lease liability, net of current portion     -       323       323  
Operating lease liabilities, net of current portion     1,318       271       1,589  
Notes payable, net of current portion     275       351       626  
Total liabilities   $ 3,655     $ 1,931     $ 5,586  

 

 

As of December 31, 2023 ($ in thousands)

 

    NexGel     CGN JV     Total  
Assets:                        
Current assets:                        
Cash   $ 2,458     $ 242     $ 2,700  
Accounts receivable, net     26       607       633  
Inventory     622       697       1,319  
Prepaid expenses and other current assets     312       88       400  
Total current assets     3,418       1,634       5,052  
                         
Goodwill     1,128       -       1,128  
Intangibles, net     122       204       326  
Property and equipment, net     898       601       1,499  
Operating lease – right of use asset     1,543       312       1,855  
Other assets     95       -       95  
Total Assets   $ 7,204     $ 2,751     $ 9,955  
                         
Liabilities                        
Current liabilities:                        
Accounts payable   $ 509     $ 724     $ 1,233  
Accrued expenses and other current liabilities     137       261       398  
Deferred revenue     20       -       20  
Current portion of note payable     6       74       80  
Warrant liability     146       -       146  
Contingent consideration liability     439       -       439  
Operating lease liability, current portion     207       26       233  
Total current liabilities     1,464       1,085       2,549  
                         
Operating lease liability, net of current portion     1,438       289       1,727  
Notes payable, net of current portion     272       241       513  
Total liabilities   $ 3,174     $ 1,615     $ 4,789