Business Segments

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Business Segments

4. Business Segments

The Company’s Chief Executive Officer, who serves as the chief operating decision maker (“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 the years ended December 31, 2023 and 2022 is presented below.

For Year Ended December 31, 2023 ($ in thousands)

	Nexgel			CG Labs			Total
Revenue
Contract Manufacturing	$	769		$	1,979		$	2,748
Custom and White Label Finished Goods		15			-			15
Branded Consumer Products		1,242			-			1,242
Other income		76			8			84
Total revenue		2,102			1,987			4,089
Cost of sales		1,911			1,559			3,470
Operating expenses		3,604			492			4,096
Loss from operations	$	(3,413	)	$	(64	)	$	(3,477	)

For Year Ended December 31, 2022 ($ in thousands)

	Nexgel			CG Labs		Total
Revenue
Contract Manufacturing	$	1,033		$	-	$	1,033
Custom and White Label Finished Goods		34			-		34
Branded Consumer Products		815			-		815
Other income		166			-		166
Total revenue		2,048			-		2,048
Cost of sales		1,792			-		1,792
Operating expenses		3,604			-		3,604
Loss from operations	$	(3,348	)	$	-	$	(3,348	)

As of December 31, 2023 ($ in thousands)

	Nexgel		CG Labs		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		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 and Stockholders’ Equity
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