Annual report pursuant to Section 13 and 15(d)

Business Segments

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Business Segments
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Business Segments

4. Business Segments

 

The Company’s Chief Executive Officer, who serves as the chief operating decision maker (“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 the years ended December 31, 2023 and 2022 is presented below.

 

For Year Ended December 31, 2023 ($ in thousands)

 

    Nexgel     CG Labs     Total  
Revenue                        
Contract Manufacturing   $ 769     $ 1,979     $ 2,748  
Custom and White Label Finished Goods     15       -       15  
Branded Consumer Products     1,242       -       1,242  
Other income     76       8       84  
Total revenue     2,102       1,987       4,089  
                         
Cost of sales     1,911       1,559       3,470  
Operating expenses     3,604       492       4,096  
Loss from operations   $ (3,413 )   $ (64 )   $ (3,477 )

 

For Year Ended December 31, 2022 ($ in thousands)

 

    Nexgel     CG Labs     Total  
Revenue                        
Contract Manufacturing   $ 1,033     $ -     $ 1,033  
Custom and White Label Finished Goods     34       -       34  
Branded Consumer Products     815       -       815  
Other income     166       -       166  
Total revenue     2,048       -       2,048  
                         
Cost of sales     1,792       -       1,792  
Operating expenses     3,604       -       3,604  
Loss from operations   $ (3,348 )   $ -     $ (3,348 )

 

As of December 31, 2023 ($ in thousands)

 

    Nexgel     CG Labs     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     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 and Stockholders’ Equity                  
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