Quarterly report pursuant to Section 13 or 15(d)

Business Segments

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Business Segments
 6 Months Ended
Jun. 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 June 30, 2024 and 2023 is presented below.

For Quarter 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     705       325       1,030  
Operating expenses     1,322       142       1,464  
Loss from operations   $ (937 )   $ (117 )   $ (1,054 )

 

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

 

    NexGel     CGN JV     Total  
Revenue                        
Contract Manufacturing   $ 291     $ 596     $ 887  
Custom and White Label Finished Goods     -       -       -  
Branded Consumer Products     259       -       259  
Other income     18       3       21  
Total revenue     568       599       1,167  
                         
Cost of sales     558       434       992  
Operating expenses     884       53       937  
Loss from operations   $ (874 )   $ 112     $ (762 )

 

 

For the 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     1,348       671       2,019  
Operating expenses     2,309       303       2,612  
Loss from operations   $ (1,716 )   $ (209 )   $ (1,925 )

 

For the Six Months Ended June 30, 2023 ($ in thousands)

 

    NexGel     CGN JV     Total  
Revenue                        
Contract Manufacturing   $ 479     $ 788     $ 1,267  
Custom and White Label Finished Goods     4       -       4  
Branded Consumer Products     493       -       493  
Other income     19       3       22  
Total revenue     995       791       1,786  
                         
Cost of sales     1,081       588       1,669  
Operating expenses     1,677       86       1,763  
Loss from operations   $ (1,763 )   $ 117     $ (1,646 )

 

 

As of June 30, 2024 ($ in thousands)

 

    NexGel     CGN JV     Total  
Assets:                        
Current assets:                        
Cash   $ 1,026     $ 43     $ 1,069  
Accounts receivable, net     111       494       605  
Inventory     931       515       1,446  
Prepaid expenses and other current assets     447       21       468  
Total current assets     2,515       1,073       3,588  
                         
Goodwill     1,128       -       1,128  
Intangibles, net     688       167       855  
Property and equipment, net     852       1,516       2,368  
Operating lease – right of use asset     1,444       298       1,742  
Other assets     95       -       95  
Total Assets   $ 6,722     $ 3,054     $ 9,776  
                         
Liabilities                        
Current liabilities:                        
Accounts payable   $ 578     $ 667     $ 1,245  
Accrued expenses and other current liabilities     233       51       284  
Deferred revenue     -       179       179  
Current portion of note payable     12       75       87  
Warrant liability     176       -       176  
Contingent consideration liability     370       -       370  
Financing lease liability, current portion     -       55       55  
Operating lease liabilities, current portion     208       29       237  
Total current liabilities     1,577       1,056       2,633  
                         
Financing lease liability, net of current portion     -       339       339  
Operating lease liabilities, net of current portion     1,358       274       1,632  
Notes payable, net of current portion     274       371       645  
Total liabilities   $ 3,209     $ 2,040     $ 5,249  

 

 

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