Quarterly report pursuant to Section 13 or 15(d)

Business Segments

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Business Segments
 3 Months Ended
Mar. 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 each of the quarters ended March 31, 2024 and 2023 is presented below.

 

For Quarter Ended March 31, 2024 ($ in thousands)

 

    NexGel     CGN JV     Total  
Revenue                        
Contract Manufacturing   $ 190     $ 448     $ 638  
Custom and White Label Finished Goods     31       -       31  
Branded Consumer Products     580       -       580  
Other income     12       5       17  
Total revenue     813       453       1,266  
                         
Cost of sales     642       347       989  
Operating expenses     987       161       1,148  
Loss from operations   $ (816 )   $ (55 )   $ (871 )

 

For Quarter Ended March 31, 2023 ($ in thousands)

 

    NexGel     CGN JV     Total  
Revenue                        
Contract Manufacturing   $ 380     $ -     $ 380  
Custom and White Label Finished Goods     4       -       4  
Branded Consumer Products     222       -       222  
Other income     14       -       14  
Total revenue     620       -       620  
                         
Cost of sales     677       -       677  
Operating expenses     826       -       826  
Loss from operations   $ (883 )   $ -     $ (883 )

 

 

As of March 31, 2024 ($ in thousands)

 

    NexGel     CGN JV     Total  
Assets:                        
Current assets:                        
Cash   $ 2,197     $ 222     $ 2,419  
Accounts receivable, net     97       642       739  
Inventory     978       391       1,369  
Prepaid expenses and other current assets     294       42       336  
Total current assets     3,566       1,297       4,863  
                         
Goodwill     1,128       -       1,128  
Intangibles, net     112       190       302  
Property and equipment, net     883       1,311       2,194  
Operating lease – right of use asset     1,494       309       1,803  
Other assets     95       -       95  
Total Assets   $ 7,278     $ 3,107     $ 10,385  
                         
Liabilities                        
Current liabilities:                        
Accounts payable   $ 479     $ 574     $ 1,053  
Accrued expenses and other current liabilities     103       8       111  
Deferred revenue     -       250       250  
Current portion of note payable     12       75       87  
Warrant liability     255       -       255  
Contingent consideration liability     439       -       439  
Financing lease liability, current portion     -       55       55  
Operating lease liabilities, current portion     207       26       233  
Total current liabilities     1,495       988       2,483  
                         
Financing lease liability, net of current portion     -       352       352  
Operating lease liabilities, net of current portion     1,398       284       1,682  
Notes payable, net of current portion     277       386       663  
Total liabilities   $ 3,170     $ 2,010     $ 5,180  

 

 

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