NEXGEL, INC.
For the period ended Sep 30, 2025. Filed Nov 12, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 12, 2025
NXGL$3.60-12.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-12.
0001641172-25-023236
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-12.
0001493152-25-021738
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 73 previous paragraphs and 74 current paragraphs.
39 unchanged; 29 reworded; 5 added; 4 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
For the three months ended September 30, 2025 revenues were $2,934 and decreased by $6, or 0.20%, when compared to $2,940 for the three months ended September 30, 2024.
Current report
Cost of revenues decreased by $94, or 5.2%, to $1,691 for the three months ended September 30, 2025, as compared to $1,785 for the three months ended September 30, 2024. The decrease in cost of revenues is primarily related to a decrease in depreciation and amortization expense.
Current report
Selling, general and administrative expenses increased by $18 or 0.9%, to $1,961 for the three months ended September 30, 2025, as compared to $1,943 for the three months ended September 30, 2024. The increase in selling, general, and administrative expenses were attributable to increases in compensation and benefits, share-based compensation, professional and consulting fees, and investor and shareholder services, which was partly offset by a decrease in advertising, marketing and amazon fees and other expenses and professional fees.
Current report
Advertising, marketing, and Amazon fees decreased by $170 or 20.7%, to $650 for the three months ended September 30, 2025, as compared to $820 for the three months ended September 30, 2024. The decrease primarily pertains to a concerted effort by the Company to rationalize advertising and maximize the return on investment.
Current report
Comparison of the Nine Months ended September 30, 2025 and 2024 (in thousands)
Removed paragraphs (4)
Previous report
Cost of revenues increased by $479, or 41.8%, to $1,626 for the three months ended June 30, 2025, as compared to $1,147 for the three months ended June 30, 2024. The increase in cost of revenues is primarily aligned with sales of branded consumer products, as Silly George was acquired in May of 2024 and costs have increased $289 or 333% for this product.
Previous report
Selling, general and administrative expenses increased by $623, or 49.0%, to $1,894 for the three months ended June 30, 2025, as compared to $1,271 for the three months ended June 30, 2024. The increase in Selling, general and administrative expenses is primarily attributable to the factors described below.
Previous report
Advertising, marketing, Amazon fees increased by $296 or 91.1%, to $621 for the three months ended June 30, 2025, as compared to $325 for the three months ended June 30, 2024. The increase primarily pertains to an increase in consumer branded product sales year over year.
Previous report
Comparison of the Six Months ended June 30, 2025 and 2024 (in thousands)
Reworded paragraphs (29)
Previous wording
Other includes freight charged to customers who purchase the Company’s branded consumer products through their Spotify stores.
Current wording
Other includes freight charged to customers who purchase the Company’s branded consumer products through their Shopify stores.
Previous wording
Gross profit (loss). Our gross profit was $1,258 for the three months ended June 30, 2025 compared to a gross profit of $293 for the three months ended June 30, 2024. The increase of $965 in gross profit quarter over quarter was primarily due to the increase in consumer branded products. Gross profit was 43.6% for the three months ended June 30, 2025 compared to a gross profit of 20.3% for the three months ended June 30, 2024.
Current wording
Gross profit (loss). Our gross profit was $1,243 for the three months ended September 30, 2025 compared to a gross profit of $1,155 for the three months ended September 30, 2024. The increase of $88 in gross profit quarter over quarter was primarily due to the decrease in depreciation and amortization expense. Gross profit was 42.4% for the three months ended September 30, 2025 compared to a gross profit of 39.2% for the three months ended September 30, 2024.
Previous wording
Compensation and benefits increased by $135, or 53.6%, to $387 for the three months ended June 30, 2025, as compared to $252 for the three months ended June 30, 2024. The number of employees increased compared to the prior period and officer compensation increased in conjunction with contract renewals.
Current wording
Compensation and benefits increased by $167, or 69.9%, to $406 for the three months ended September 30, 2025, as compared to $239 for the three months ended September 30, 2024. The number of employees increased compared to the prior period and officer compensation increased in conjunction with contract renewals.
Previous wording
Share-based compensation increased by $70, or 132.1%, to $123 for the three months ended June 30, 2025, as compared to $53 for the three months ended June 30, 2024. The share-based compensation increase is related to the issuance of stock options and restricted awards to our officers, employees, and advisors compared to the same prior year period.
Current wording
Share-based compensation increased by $57, or 39.8%, to $200 for the three months ended September 30, 2025, as compared to $143 for the three months ended September 30, 2024. The share-based compensation increase is related to the issuance of stock options and restricted awards to our officers, employees, board of directors, and advisors compared to the same prior year period.
Previous wording
Investor and shareholder services increased by $24, or 27.3%, to $112 for the three months ended June 30, 2025, as compared to $88 for the three months ended June 30, 2024. The increase is due to an increase of investor services compared to the prior year period.
Current wording
Investor and shareholder services increased by $19, or 40.4%, to $66 for the three months ended September 30, 2025, as compared to $47 for the three months ended September 30, 2024. The increase is due to an increase of investor services compared to the prior year period.
Previous wording
Franchise taxes and corporate insurance decreased by $13, or 59.1%, to $35 for the three months ended June 30, 2025, as compared to $22 thousand for the three months ended June 30, 2024.
Current wording
Franchise taxes and corporate insurance remained the same at $38 for the three months ended September 30, 2025 and the three months ended September 30, 2024.
Previous wording
Professional and consulting fees increased by $20, or 5.0%, to $421 for the three months ended June 30, 2025, as compared to $401 for the three months ended June 30, 2024. We continued to incur accounting and consulting fees associated with public company governance requirements.
Current wording
Professional and consulting fees increased by $45, or 12.0%, to $420 for the three months ended September 30, 2025, as compared to $375 for the three months ended September 30, 2024. We continued to incur accounting and consulting fees associated with public company governance requirements.
Previous wording
Other Expenses increased by $75, or 96.1%, to $153 for the three months ended June 30, 2025 from $78 for the three months ended June 30, 2024. Other Selling, general and administrative expenses generally consist of costs associated with our selling efforts and general management, including information technology, travel, training and recruiting.
Current wording
Other expenses increased by $66, or 32.4%, to $138 for the three months ended September 30, 2025 from $204 for the three months ended September 30, 2024. Other selling, general and administrative expenses generally consist of costs associated with our selling efforts and general management, including information technology, travel, training and recruiting.
Previous wording
Research and development expenses. Research and development expenses were $0 and $76 for the three months ended June 30, 2025 and June 30, 2024, respectively.
Current wording
Research and development expenses. Research and development expenses were $7 and $0 for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
For the six months ended June 30, 2025, revenues were $5,690 and increased by $2,984, or 110.3%, when compared to $2,706 for the six months ended June 30, 2024. The increase in our overall revenues was primarily due to sales growth in our branded consumer products, and the prior year period included gross revenue for a partial year from Silly George of $380 from May 15, 2024 through June 30, 2024.
Current wording
For the nine months ended September 30, 2025, revenues were $8,625 and increased by $2,978, or 52.7%, when compared to $5,647 for the nine months ended September 30, 2024. The increase in our overall revenues was primarily due to sales growth in our branded consumer products, as the prior year period included gross revenue for a partial year from Silly George from May 15, 2024 through September 30, 2025.
Previous wording
Gross profit. Our gross profit was $2,446 for the six months ended June 30, 2025, compared to a gross profit of $519 for the six months ended June 30, 2024. The increase of $1,927 in gross profit recorded for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, was primarily due to increase in branded consumer products. Gross profit was approximately 43.0% for the six months ended June 30, 2025, compared to a gross profit of 19.2% for the six months ended June 30, 2024.
Current wording
Gross profit. Our gross profit was $3,690 for the nine months ended September 30, 2025, compared to a gross profit of $1,674 for the nine months ended September 30, 2024. The increase of $2,016 in gross profit recorded for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, was primarily due to increase in branded consumer products. Gross profit was approximately 42.8% for the nine months ended September 30, 2025, compared to a gross profit of 29.6% for the nine months ended September 30, 2024.
Previous wording
The components of cost of revenues are as follows for the six months ended June 30, 2025 and 2024 ($ in thousands):
Current wording
The components of cost of revenues are as follows for the nine months ended September 30, 2025 and 2024 ($ in thousands):
Previous wording
Cost of revenues increased by $1,057, or 48.3%, to $3,244 for the six months ended June 30, 2025, as compared to $2,187 for the six months ended June 30, 2024. The increase in cost of revenues pertains to an increase in materials and finished products. The increase in cost of revenues is primarily aligned with sales of branded consumer products and the acquisition of Silly George in the prior year period which increased by 333%.
Current wording
Cost of revenues increased by $962, or 24.2%, to $4,935 for the nine months ended September 30, 2025, as compared to $3,973 for the nine months ended September 30, 2024. The increase in cost of revenues pertains to an increase in materials and finished products. The increase in cost of revenues is primarily aligned with sales of branded consumer products and the acquisition of Silly George in the prior year period which increased by 333%.
Previous wording
Selling, general, and administrative expenses. The following table highlights selling, general, and administrative expenses by type for the six months ended June 30, 2025 and 2024 ($ in thousands):
Current wording
Selling, general, and administrative expenses. The following table highlights selling, general, and administrative expenses by type for the nine months ended September 30, 2025 and 2024 ($ in thousands):
Previous wording
Selling, general, and administrative expenses increased by $1,492, or 63.1%, to $3,858 for the six months ended June 30, 2025, as compared to $2,366 for the six months ended June 30, 2024. The increase in selling, general, and administrative expenses is primarily attributable to increased Advertising, marketing and Amazon fees, which directly correlates to our growth in branded consumer products.
Current wording
Selling, general, and administrative expenses increased by $1,511, or 35.1%, to $5,820 for the nine months ended September 30, 2025, as compared to $4,309 for the nine months ended September 30, 2024. The increase in selling, general, and administrative expenses is attributable to increased Compensation and benefits and Advertising, marketing and Amazon fees. The number of employees increased compared to the prior period and officer compensation increased in conjunction with contract renewals. The increase in Advertising, marketing and Amazon fees directly correlates to our growth in branded consumer products.
Previous wording
Compensation and benefits increased by $238, or 47.2%, to $742 for the six months ended June 30, 2025, as compared to $504 for the six months ended June 30, 2024. The number of employees increased compared to the prior period and officer compensation increased in conjunction with contract renewals.
Current wording
Compensation and benefits increased by $406, or 54.6%, to $1,149 for the nine months ended September 30, 2025, as compared to $743 for the nine months ended September 30, 2024. The number of employees increased compared to the prior period and officer compensation increased in conjunction with contract renewals.
Previous wording
Share-based compensation increased by $180, or 173.1%, to $284 for the six months ended June 30, 2025, as compared to $104 for the six months ended June 30, 2024. The increase related to the issuance of stock options and restricted awards to our officers, employees, board of directors, and advisors.
Current wording
Share-based compensation increased by $238, or 96.7%, to $484 for the nine months ended September 30, 2025, as compared to $246 for the nine months ended September 30, 2024. The increase related to the issuance of stock options and restricted awards to our officers, employees, board of directors, and advisors.
Previous wording
Advertising, marketing, Amazon fees increased by $736 or 139.7%, to $1,263 for the six months ended June 30, 2025, as compared to $527 for the six months ended June 30, 2024. The increase is due to the increased Amazon selling fees and increase in advertising and marketing attributable to promoting Kenkoderm and Silly George.
Current wording
Advertising, marketing, and Amazon fees increased by $515 or 36.8%, to $1,913 for the nine months ended September 30, 2025, as compared to $1,398 for the nine months ended September 30, 2024. The increase is due to the increased Amazon selling fees and increase in advertising and marketing attributable to promoting Kenkoderm and Silly George.
Previous wording
Investor and shareholder services increased by $26 or 17.3%, to $176 for the six months ended June 30, 2025, as compared to $150 for the six months ended June 30, 2024. The increase is due to a net increase of investor services compared to the prior year period.
Current wording
Investor and shareholder services increased by $45 or 22.8%, to $242 for the nine months ended September 30, 2025, as compared to $197 for the nine months ended September 30, 2024. The increase is due to a net increase of investor services compared to the prior year period.
Previous wording
Franchise taxes and corporate insurance decreased by $16 or 20.0%, to $64 for the six months ended June 30, 2025, as compared to $80 for the six months ended June 30, 2024. In the prior year period, a non-recurring adjustment resulted in an decrease in franchise taxes.
Current wording
Franchise taxes and corporate insurance decreased by $16 or 13.6%, to $102 for the nine months ended September 30, 2025, as compared to $118 for the nine months ended September 30, 2024. In the prior year period, a non-recurring adjustment resulted in a decrease in franchise taxes.
Previous wording
Professional and consulting fees increased by $162 or 21.2% to $927 for the six months ended June 30, 2025, as compared to $765 for the six months ended June 30, 2024. We continued to incur accounting and consulting fees associated with public company governance requirements. Additionally, we incurred significant expenses related to our European Medical Device Regulation project in preparation for entering European markets.
Current wording
Professional and consulting fees increased by $207 or 18.2% to $1,347 for the nine months ended September 30, 2025, as compared to $1,140 for the nine months ended September 30, 2024. We continued to incur accounting and consulting fees associated with public company governance requirements. Additionally, we incurred significant expenses related to our European Medical Device Regulation project in preparation for entering European markets.
Previous wording
Other expenses increased by $165, or 107.8%, to $318 for the six months ended June 30, 2025 from $153 for the six months ended June 30, 2024. Other Selling, general and administrative expenses generally consist of normal costs associated with our selling efforts and general management, including information technology, travel, training and recruiting.
Current wording
Other expenses increased by $100, or 28.0%, to $457 for the nine months ended September 30, 2025 from $357 for the nine months ended September 30, 2024. Other selling, general and administrative expenses generally consist of normal costs associated with our selling efforts and general management, including information technology, travel, training and recruiting.
Previous wording
Research and development expenses. Research and development expenses decreased by $77, or 98.7% to $1 for the six months ended June 30, 2025 from $78 for the six months ended June 30, 2024. Research and development expenses are related to research costs incurred for potential products for existing or new customers.
Current wording
Research and development expenses. Research and development expenses decreased by $70, or 89.7% to $8 for the nine months ended September 30, 2025 from $78 for the nine months ended September 30, 2024. Research and development expenses are related to research costs incurred for potential products for existing or new customers.
Previous wording
As of June 30, 2025, we had $725 of cashand cash equivalents, compared to $1,807 of cash and cash equivalents at December 31, 2024. Net cash used in operating activities was $807 and $1,792 for the six months ended June 30, 2025 and 2024, respectively.
Current wording
As of September 30, 2025, we had $938 of cash and cash equivalents and $920 in restricted cash, compared to $1,807 of cash and cash equivalents at December 31, 2024. Net cash used in operating activities was $1,592 and $3,008 for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Net cash used in investing activities was $20 and net cash used in investing activities was $704 for the six months ended June 30, 2025 and 2024, respectively, consisting of purchases of capital equipment of $20 for the six months ending June 30, 2025 andconsisting of the sales of marketable securities of $57, the purchase of capital equipment of $361 and the acquisition of $400 for six months ended June 30, 2024
Current wording
Net cash used in investing activities was $28 and net cash used in investing activities was $712 for the nine months ended September 30, 2025 and 2024, respectively, consisting of purchases of capital equipment of $28 for the nine months ending September 30, 2025 and consisting of the sales of marketable securities of $62, the purchase of capital equipment of $374 and the acquisition of $400 for nine months ended September 30, 2024
Previous wording
Net cash used in financing activities for the six months ended June 30, 2025 was $255 is attributable to the principal payments of notes payable and principal payments of financing lease liabilities and payment of contingent consideration of $178. Net cash provided by financing activities for the six months ended June 30, 2024 was $865 consisting of net proceeds from the RDO of $946 and an investment of $37 by a joint venture partner, offset by principal payments of notes payable of $27, a change in contingent consideration liability of $69, and by principal payment on financing lease liability of $22.
Current wording
Net cash provided by financing activities for the nine months ended September 30, 2024 was $2,079 consisting of net proceeds from the February Offering and August Offering of $1,950, an investment of $37 by a joint venture partner, and from the margin line of credit of $345, offset by principal payments of notes payable of $36, a change in contingent consideration liability of $164, and by principal payment on financing lease liability of $53.
Previous wording
At June 30, 2025, current assets totaled $4,162 and current liabilities totaled $2,396, as compared to current assets totaling $5,114 and current liabilities totaling $2,470 at December 31, 2024. As a result, we had working capital of $1,766 at June 30, 2025, compared to a working capital of $2,644 at December 31, 2024. The change in the working capital as of June 30, 2025 is primarily attributable to the loss from operations of $1,413.
Current wording
At September 30, 2025, current assets totaled $5,602 and current liabilities totaled $3,308, as compared to current assets totaling $5,114 and current liabilities totaling $2,470 at December 31, 2024. As a result, we had working capital of $2,294 at September 30, 2025, compared to a working capital of $2,644 at December 31, 2024. The change in the working capital as of September 30, 2025 is primarily attributable to the loss from operations of $2,138.
Previous wording
Management is exploring new product channel sales in consumer products, such as cosmetics, athletic products, and proprietary medical devices. The Company has increased its focus on sales and developing a sales pipeline for potential customers. This customer base expansion will enable us to provide financial stability for the foreseeable future, expand our current processes, and position us for long-term shareholder value creation.
Current wording
Management is exploring new product channel sales in consumer products, such as cosmetics, athletic products, and proprietary medical devices. The Company has increased its focus on sales and the develop of a sales pipeline for potential customers. This customer base expansion will enable us to provide financial stability for the foreseeable future, expand our current processes, and position us for long-term shareholder value creation.
Previous wording
Our recent August Financing provides working capital necessary to continue our strategic objectives (discussed further within Note 20). We intend to maintain and attempt to grow our existing contract manufacturing business. We also plan to continue building and developing our catalogue of consumer products for sale to branding partners and to use our in-house capabilities to create and test market additional branded products. These products will be target marketed and sold online through social media, television and online marketplaces. Furthermore, the Company plans to develop its own proprietary medical devices and explore drug delivery programs for its technology. Additionally, the Company continues to evaluate strategic initiatives (e.g., acquisitions) and additional capital raises through debt or equity may be necessary to achieve these objectives.
Current wording
Our recent August Financing provides working capital necessary to continue our strategic objectives (see Note 13). We intend to maintain and attempt to grow our existing contract manufacturing business. We also plan to continue building and developing our catalogue of consumer products for sale to branding partners and to use our in-house capabilities to create and test market additional branded products. These products will be target marketed and sold online through social media, television and online marketplaces. Furthermore, the Company plans to develop its own proprietary medical devices and explore drug delivery programs for its technology. Additionally, the Company continues to evaluate strategic initiatives (e.g., acquisitions) and additional capital raises through debt or equity may be necessary to achieve these objectives.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Net cash used in financing activities for the nine months ended September 30, 2025 was $1,671 is attributable to the proceeds from rights offerings and stock issuances of $963, proceeds from STADA of $1,000, offset by principal payments of notes payable of $71, principal payments of financing lease liabilities of $43, and payment of contingent consideration of $178.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
For the three months ended June 30, 2025 revenues were $2,884 and increased by $1,444, or 100.3%, when compared to $1,440 for the three months ended June 30, 2024. The increase in our overall revenues was primarily due to sales growth in both our contract manufacturing and branded products.