NEXGEL, INC.
For the period ended Dec 31, 2025. Filed Mar 31, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 31, 2026
NXGL$3.60-12.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-03-27.
0001641172-25-000937
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-03-31.
0001493152-26-014377
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 52 previous paragraphs and 47 current paragraphs.
32 unchanged; 12 reworded; 1 added; 8 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 3 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
Lines of Business
Removed paragraphs (8)
Previous report
Selling, general and administrative expenses. The following table highlights selling, general and administrative expenses by type for the years ended December 31, 2024 and 2023 ($ in thousands):
Previous report
Compensation and benefits increased by $280, or 37.8%, to $1,020 for the year ended December 31, 2024, as compared to $740 for the year ended December 31, 2023. The primary increase in expense, when compared to the prior period, is the increase in contract labor with the inclusion of Silly George.
Previous report
Share-based compensation increased by $134, or 66.0%, to $337 for the year ended December 31, 2024, as compared to $203 for the year ended December 31, 2023. The increase related to the issuance of stock options and restricted awards to our officers, employees, board of directors, and advisors.
Previous report
Advertising, marketing, and Amazon fees increased by $1,780, or 404.5%, to $2,220 for the year ended December 31, 2024, as compared to $440 for the year ended December 31, 2023. The increase is due to the increased Amazon selling fees and an increase in advertising and marketing attributable to promoting Kenkoderm and Silly George.
Previous report
Investor and shareholder services decreased by $153, or 35.9%, to $273 for the year ended December 31, 2024, as compared to $426 for the year ended December 31, 2023. The decrease is due to a net reduction of investor services compared to the prior year period.
Previous report
Franchise taxes and corporate insurance decreased by $67, or 29.9%, to $157 for the year ended December 31, 2024, as compared to $224 for the year ended December 31, 2023. The vast majority of this decrease pertains to the Company’s reduction in authorized shares, which lowered its franchise tax expense. The Company enjoyed the full benefit of the reduction in authorized shares throughout 2024, as opposed to a partial benefit in 2023.
Previous report
Professional and consulting fees increased by $312, or 23.3%, to $1,651 for the year ended December 31, 2024, as compared to $1,339 for the year ended December 31, 2023. We continued to incur accounting and consulting fees associated with public company governance requirements and professional services related to branded consumer products. Additionally, consulting fees increased in 2024 with the acquisition of Silly George, which utilizes numerous consultants to assist with marketing, IT, graphic design, and various other services.
Previous report
Other expenses increased by $160, or 64.0%, to $410 for the year ended December 31, 2024 from $250 for the year ended December 31, 2023. 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 credit card processing fees. Credit card processing fees in particular increased significantly from 2023 to 2024 with the inclusion of Silly George.
Reworded paragraphs (12)
Previous wording
We manufacture high water content, electron beam cross-linked, aqueous polymer hydrogels, or gels, used for wound care, medical diagnostics, transdermal drug delivery and cosmetics. We specialize in custom gels by capitalizing on proprietary manufacturing technologies. We have historically served as a contract manufacturer, supplying our gels to third parties who incorporate them into their own products. Beginning in 2020, we created two new lines of business for the company. First, our own line of branded consumer products sold direct to consumers. Second, we expanded into custom and white label opportunities, which focuses on combining our gels with proprietary branded products and white label opportunities. All of our gel products are manufactured using proprietary and non-proprietary mixing, coating and cross-linking technologies. Together, these technologies enable us to produce gels that can satisfy rigid tolerance specifications with respect to a wide range of physical characteristics (e.g., thickness, water content, adherence, absorption, moisture vapor transmission rate [a measure of the passage of water vapor through a substance] and release rate) while maintaining product integrity. Additionally, we have the manufacturing ability to offer broad choices in the selection of liners onto which the gels are coated. Consequently, we and our customers are able to determine tolerances in moisture vapor transmission rate and active ingredient release rates while personalizing color and texture. In May 2023, we formed a joint venture with CG Laboratories, Inc. called CG Converting and Packaging, LLC, which is located in Granbury, Texas and of which we own a 50% interest, allowing us to expand our ability to deliver finished goods to our growing customer base.
Current wording
We manufacture high water content, electron beam cross-linked, aqueous polymer hydrogels, or gels, used for wound care, medical diagnostics, transdermal drug delivery and cosmetics. We specialize in custom gels by capitalizing on proprietary manufacturing technologies. We distribute our products as a contract manufacturer, supplying our gels to third parties who incorporate them into their own products. We also have a line of branded consumer products sold direct to consumers and custom and white label opportunities, which focuses on combining our gels with proprietary branded products and white label opportunities. All of our gel products are manufactured using proprietary and non-proprietary mixing, coating and cross-linking technologies. Together, these technologies enable us to produce gels that can satisfy rigid tolerance specifications with respect to a wide range of physical characteristics (e.g., thickness, water content, adherence, absorption, moisture vapor transmission rate [a measure of the passage of water vapor through a substance] and release rate) while maintaining product integrity. Additionally, we have the manufacturing ability to offer broad choices in the selection of liners onto which the gels are coated. Consequently, we and our customers are able to determine tolerances in moisture vapor transmission rate and active ingredient release rates while personalizing color and texture. Our joint venture with CG Laboratories, Inc. called CG Converting and Packaging, LLC, which is located in Granbury, Texas in which we own a 50% interest, allowing us to expand our ability to deliver finished goods to our growing customer base.
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
For the year ended December 31, 2024 revenues were $8,688 and increased by $4,599, or 112.5%, when compared to $4,089 for the year ended December 31, 2023. The increase in our overall revenues was primarily due to sales growth in our branded consumer products, including gross revenue from Silly George of $2,889 for the period of acquisition through December 31, 2024, and an increase in Other Revenues of $238, which mostly consists of shipping revenue on our branded consumer products.
Current wording
For the year ended December 31, 2025 revenues were $11,421 and increased by $2,733, or 31.5%, when compared to $8,688 for the year ended December 31, 2024. The increase in our overall revenues was primarily due to sales growth in our branded consumer products, as the prior year period included gross revenue for a partial year from Silly George from May 15, 2024 through December 31, 2024.
Previous wording
The components of cost of revenues are as follows for the years ended December 31, 2024 and 2023 ($ in thousands):
Current wording
Cost of revenues are as follows for the years ended December 31, 2025 and 2024 ($ in thousands):
Previous wording
Cost of revenues increased by $2,225 or 59.9%, to $5,940 for the year ended December 31, 2024, as compared to $3,715 for the year ended December 31, 2023. The increase in cost of revenues is primarily aligned with sales of branded consumer products. As mentioned elsewhere, Silly George was acquired in May 2024 while Kenkoderm was acquired in December 2023.
Current wording
Cost of revenues increased by $972 or 16.4%, to $6,912 for the year ended December 31, 2025, as compared to $5,940 for the year ended December 31, 2024. 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 50.8%.
Previous wording
Our gross profit was $2,748 for the year ended December 31, 2024 compared to a gross profit of $374 for the year ended December 31, 2023 The increase of $2,374 in gross profit recorded for the year ended December 31, 2024, as compared to December 31, 2023, was primarily due to an increase in branded consumer products. Gross profit was approximately 31.6% for the year ended December 31, 2024 compared to a gross profit of 9.1% for the year ended December 31, 2023.
Current wording
Our gross profit was $4,509 for the year ended December 31, 2025 compared to a gross profit of $2,748 for the year ended December 31, 2024 The increase of $1,761 in gross profit recorded for the year ended December 31, 2025, as compared to December 31, 2024, was primarily due to an increase in branded consumer products. Gross profit was approximately 39.5% for the year ended December 31, 2025 compared to a gross profit of 31.6% for the year ended December 31, 2024.
Previous wording
Selling, general and administrative expenses increased by $2,476 or 66.1%, to $6,224 for the year ended December 31, 2024, as compared to $3,748 for the year ended December 31, 2023. The increase in Selling, general and administrative expenses is primarily attributable to the factors described below.
Current wording
Selling, general and administrative expenses increased by $1,635 or 26.3%, to $7,859 for the year ended December 31, 2025, as compared to $6,224 for the year ended December 31, 2024. The increase in Selling, general and administrative expenses is primarily attributable to an increase in compensation and benefits (including share-based benefits) of $816, advertising and marketing increases of $282, an increase in professional and consulting fees of $258, and other expense of $205.
Previous wording
Research and development expenses decreased by $25 to $78 for the year ended December 31, 2024 from $103 for the year ended December 31, 2023. Research and development expenses are related to research costs incurred for potential products for existing or new customers.
Current wording
Research and development expenses decreased by $76 to $2 for the year ended December 31, 2025 from $78 for the year ended December 31, 2024. Research and development expenses are related to research costs incurred for potential products for existing or new customers.
Previous wording
As of December 31, 2024, we had $1,807 thousand of cash and cash equivalents compared to $2,700 thousand of cash and cash equivalents at December 31, 2023. Net cash used in operating activities was $3,867 thousand and $3,236 thousand for the years ended December 31, 2024 and 2023, respectively.
Current wording
As of December 31, 2025, we had $317 of cash and cash equivalents and $741 of restricted cash compared to $1,807 thousand of cash and cash equivalents at December 31, 2024. Net cash used in operating activities was $1,311 thousand and $3,867 thousand for the years ended December 31, 2025 and 2024, respectively.
Previous wording
Net cash used in investing activities was $775 thousand and net cash provided by investing activities was $4,456 thousand for the year ended December 31, 2024 and 2023, respectively, consisting of the sales of marketable securities of $68 thousand, offset by purchases of capital equipment of $443 thousand and the investment in the subsidiary Semmens Online of $400 thousand for the year ended December 31, 2024 while the sales of marketable securities of $5,699 thousand, offset by purchases of capital equipment of $696 thousand and the Kenkoderm acquisition of $547 thousand were for the year ended December 31, 2023.
Current wording
Net cash used in investing activities was $68 thousand and $775 thousand for the years ended December 31, 2025 and 2024, respectively. Net cash used in investing activities for 2025 was attributable to the purchases of capital equipment while net cash used in investing activities for 2024 was attributable to the sales of marketable securities of $68 thousand, offset by purchases of capital equipment of $443 thousand and the investment in the subsidiary Semmens Online of $400 thousand.
Previous wording
Net cash provided by financing activities for year ended December 31, 2024 was $3,749 thousand which is attributable to the proceeds from rights offering of $3,772 thousand, proceeds from non-controlling interest of $38 thousand, and proceeds from margin line of credit of $345 thousand, offset by principal payments of notes payments of $77 thousand, and change in contingent consideration of $279 thousand made on the operating lease liability, and $50 thousand of principal payment of financing lease liability. Net cash provided by financing activities for year ended December 31, 2023 was $379 thousand which is attributable to the proceeds of equipment notes payable of $315 thousand, proceeds from margin line of credit of $245 thousand, offset by principal payments of notes payments of $6 thousand and payments of $175 thousand made on the operating lease liability.
Current wording
Net cash provided by financing activities for year ended December 31, 2024 was $3,749 thousand which is attributable to the proceeds from rights offering of $3,772 thousand, proceeds from non-controlling interest of $38 thousand, and proceeds from margin line of credit of $345 thousand, offset by principal payments of notes payments of $77 thousand, and change in contingent consideration of $279 thousand made on the operating lease liability, and $50 thousand of principal payment of financing lease liability.
Previous wording
At December 31, 2024, current assets totaled $5,114 thousand and current liabilities totaled $2,470 thousand, as compared to current assets totaling $5,052 thousand and current liabilities totaling $2,549 thousand at December 31, 2023. As a result, we had working capital of $2,644 thousand at December 31, 2024, compared to a working capital of $2,503 thousand at December 31, 2023. The increase in the working capital as of December 31, 2024 is primarily attributable to the loss from operations of $3,554 thousand and proceeds from rights offering of $3,772 thousand.
Current wording
At December 31, 2025, current assets totaled $4,477 thousand and current liabilities totaled $3,095 thousand, as compared to current assets totaling $5,114 thousand and current liabilities totaling $2,470 thousand at December 31, 2024. As a result, we had working capital of $1,382 thousand at December 31, 2025, compared to a working capital of $2,644 thousand at December 31, 2024. The decrease in the working capital as of December 31, 2025 is primarily attributable to the loss from operations of $3,352 thousand and proceeds from rights offering of $963 thousand and proceeds from Stada of $1,000 thousand.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Selling, general and administrative expenses. Selling, general and administrative expenses are as follows for the years ended December 31, 2025 and 2024 ($ in thousands):
Current report — wording carried from elsewhere
Net cash provided by financing activities for year ended December 31, 2025 was $630 thousand which was attributable to the proceeds from rights offering of $963 thousand, offset by principal payments of notes payments of $97 thousand, and change in contingent consideration of $177 thousand made on the operating lease liability, and $59 thousand of principal payment of financing lease liability.