Annual report [Section 13 and 15(d), not S-K Item 405]

Business Segments

v3.25.1
Business Segments
 12 Months Ended
Dec. 31, 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 the years ended December 31, 2024 and 2023 is presented below.

 

For Year Ended December 31, 2024 ($ in thousands)

 

    NexGel     CG Labs     Total  
Revenue                        
Contract Manufacturing   $ 863     $ 1,978     $ 2,841  
Custom and White Label Finished Goods     42       -       42  
Branded Consumer Products     5,483       -       5,483  
Other income     243       79       322  
Total revenue     6,631       2,057       8,688  
                         
Cost of sales     4,209       1,731       5,940  
                         
Research and development     78       -       78  
                         
Advertising, marketing and amazon fees     2,220       -       2,220  
General and administrative     3,409       595       4,004  
Total Selling, general and administrative     5,629       595       6,224  
Operating expenses     5,707       595       6,302  
Loss from operations   $ (3,285 )   $ (269 )   $ (3,554 )

 

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     2,092       1,623       3,715  
                         
Research and development     103               103  
                         
Advertising, marketing and amazon fees     440       -       440  
General and administrative     2,881       427       3,308  
Total Selling, general and administrative     3,321       427       3,748  
Operating expenses     3,424       427       3,851  
Loss from operations   $ (3,414 )   $ (63 )   $ (3,477 )

 

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 and Stockholders’ Equity                  
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