Quarterly report [Sections 13 or 15(d)]

Business Segments

v3.25.2
Business Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Business Segments

4. Business Segments

 

The Company’s CODM evaluates the financial performance of the Company’s segments based upon segment operating income or (loss) as the profitability measure. Items outside of 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 the three and six months ended June 30, 2025 and 2024 and the balances of assets and liabilities for each segment at June 30, 2025 and December 31, 2024 is presented below.

 

Three Months Ended June 30, 2025 ($ in thousands)

 

    NexGel     CGN JV     Total  
Revenue:                        
Contract manufacturing   $ 350     $ 513     $ 863  
Custom and white label finished goods     27       -       27  
Branded consumer products     1,884       -       1,884  
Other income     72       38       110  
Total revenue     2,333       551       2,884  
                         
Cost of sales     1,283       343       1,626  
Operating expenses     1,761       133       1,894  
Income (loss) from operations   $ (711 )   $ 75     $ (636 )

 

Three Months Ended June 30, 2024 ($ in thousands)

 

    NexGel     CGN JV     Total  
Revenue:                        
Contract manufacturing   $ 78     $ 347     $ 425  
Custom and white label finished goods     11       -       11  
Branded consumer products     968       -       968  
Other income     33       3       36  
Total revenue     1,090       350       1,440  
                         
Cost of sales     822       325       1,147  
Operating expenses     1,205       142       1,347  
Loss from operations   $ (937 )   $ (117 )   $ (1,054 )

 

Six Months Ended June 30, 2025 ($ in thousands)

 

    NexGel     CGN JV     Total  
Revenue                        
Contract manufacturing   $ 517     $ 1,294     $ 1,811  
Custom and white label finished goods     27       -       27  
Branded consumer products     3,666       -       3,666  
Other income     121       65       186  
Total revenue     4,331       1,359       5,690  
                         
Cost of sales     2,326       918       3,244  
Operating expenses     3,588       271       3,859  
Income (loss) from operations   $ (1,583 )   $ 170     $ (1,413 )

 

Six Months Ended June 30, 2024 ($ in thousands)

 

    NexGel     CGN JV     Total  
Revenue                        
Contract manufacturing   $ 269     $ 757     $ 1,026  
Custom and white label finished goods     42       -       42  
Branded consumer products     1,585       -       1,585  
Other income     45       8       53  
Total revenue     1,941       765       2,706  
                         
Cost of sales     1,516       671       2,187  
Operating expenses     2,141       303       2,444  
Loss from operations   $ (1,716 )   $ (209 )   $ (1,925 )

 

 

As of June 30, 2025 ($ in thousands)

 

    NexGel     CGN JV     Total  
Assets:                        
Current assets:                        
Cash   $ 554     $ 171     $ 725  
Accounts receivable, net     294       459       753  
Inventory     1,219       602       1,821  
Prepaid expenses and other current assets     761       102       863  
Total current assets     2,828       1,334       4,162  
                         
Goodwill     1,128       -       1,128  
Intangibles, net     667       77       744  
Property and equipment, net     723       1,347       2,070  
Operating lease – right of use asset     1,244       268       1,512  
Other assets     95       -       95  
Total Assets   $ 6,685     $ 3,026     $ 9,711  
                         
Liabilities                        
Current liabilities:                        
Accounts payable   $ 752     $ 74     $ 826  
Accounts payable – related party     -       447       447  
Accrued expenses and other current liabilities     513       21       534  
Deferred revenue     2       178       180  
Current portion of note payable     10       89       99  
Warrant liability     14       -       14  
Financing lease liability, current portion     -       62       62  
Operating lease liabilities, current portion     207       27       234  
Total current liabilities     1,498       898       2,396  
                         
Operating lease liabilities, net of current portion     1,196       250       1,446  
Financing lease liability, net of current portion     -       275       275  
Notes payable, net of current portion     264       275       539  
Total liabilities   $ 2,958     $ 1,698     $ 4,656  

 

 

As of December 31, 2024 ($ in thousands)

 

    NexGel     CG Labs     Total  
Assets:                        
Current assets:                        
Cash   $ 1,781     $ 26     $ 1,807  
Accounts receivable, net     218       715       933  
Inventory     1,101       650       1,751  
Prepaid expenses and other current assets     578       45       623  
Total current assets     3,678       1,436       5,114  
Goodwill     1,128       -       1,128  
Intangibles     685       122       807  
Property and equipment, net     790       1,421       2,211  
Operating lease – right of use asset     1,345       283       1,628  
Other assets     95       -       95  
Total Assets   $ 7,721     $ 3,262     $ 10,983  
                         
Liabilities                        
Current liabilities:                        
Accounts payable   $ 560     $ 201     $ 761  
Accounts payable – related party     3       528       531  
Accrued expenses and other current liabilities     284       26       310  
Deferred revenue     -       179       179  
Current portion of note payable     12       85       97  
Warrant liability     118       -       118  
Contingent consideration liability     178       -       178  
Finance lease liability, short term     -       59       59  
Operating lease liability, current portion     207       30       237  
Total current liabilities     1,362       1,108       2,470  
                         
Operating lease liability, net of current portion     1,278       260       1,538  
Finance lease liability, long term     -       307       307  
Notes payable, net of current portion     268       320       588  
Total liabilities   $ 2,908     $ 1,995     $ 4,903