NEXGEL, INC. Q2 FY2024 earnings call

• Acquired Silly George in May 2024 for $600,000 in cash, common stock, plus a future earnout. July sales of Silly George on Shopify alone were over $380,000. - Completed expansion of contract manufacturing capacity in Texas, doubling square footage and investing in automated machinery and clean room facilities. - Partnership with STADA includes the launch of Histasolv (sold as DAOSIN in Europe), a top-selling Diamine Oxidase enzyme supplement. - Announced supply agreement with Cintas Corporation to distribute SilverSeal, with first order expected in Q4 2024. - Completed a financing led by insiders for gross proceeds of $1.11 million for working capital and marketing.

The second quarter of 2024 was a record revenue quarter for NEXGEL, totaling $1.44 million. Branded Consumer Products were a key growth driver, generating $968,000, which is 67.2% of the total revenue. This includes the impact of acquisitions like Kenkoderm and Silly George. Contract manufacturing revenue decreased due to the expansion of the facility in Texas, which caused a temporary shutdown, but is expected to normalize in Q3 and Q4.

• Expected Q3 revenue of $2.2 million (83% year-over-year growth) and Q4 revenue of $2.6 million (over 140% year-over-year growth). - Revenue from AbbVie partnership originally expected in Q3 but delayed to Q1 2025 due to AbbVie's console delay, with ramping expected in Q2 and full launch in Q3. - Cintas partnership revenue expected in Q4, multiple hundreds of thousands of dollars with reorder potential.

• Consumer product sales can fluctuate. - Delays in partnerships like AbbVie can impact revenue timing. - Uncertainty around cannibalistic effect of Amazon on Shopify sales for Silly George.

Q: Could you clarify Silly George's revenue trajectory and its impact on the second half?

A: Consumer products are unpredictable, but Silly George is performing well with strong July sales on Shopify, and continued growth is expected with increased marketing spend.

Q: When can we expect revenue from Cintas?

A: Revenue from Cintas will start in Q4 2024, multiple hundreds of thousands of dollars with reorder potential.

Q: What's the status with AbbVie partnership?

A: AbbVie partnership revenue was delayed to Q1 2025 due to console issues, with ramping expected in Q2 and full launch in Q3.