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• Advanced Wound Care Hydrogel Dressings: Therapeutic hydrogel dressings used for managing various types of acute and chronic wounds, including burns, pressure ulcers, and surgical incisions.
• Custom Hydrogel Products (OEM): Development and manufacturing of custom hydrogel products and components for other companies, primarily for applications in medical aesthetics, consumer health, and transdermal delivery.

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NexGel (NXGL) primarily sells its hydrogel materials to other companies that incorporate these materials into their own finished products.

Its major customers for the year ended December 31, 2023, accounting for approximately 73% of its net revenues, are:

• McKesson Corporation (NYSE: MCK)
• Smith & Nephew plc (NYSE: SNN)
• Cardinal Health, Inc. (NYSE: CAH)

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Adam Levy, Chief Executive Officer, President, and Director

Mr. Levy has served as NEXGEL's Chief Executive Officer and President since September 10, 2019, and as a Director since September 9, 2021. He was previously the company's Chief Financial Officer from December 31, 2019, to June 1, 2021. Before joining NEXGEL, Mr. Levy was an investment banker with Cova Capital, specializing in capital markets. Prior to his investment banking career, he was the President and CEO of Warlock Records Inc. and its related companies, which he founded in 1985. During his time at Warlock, he successfully led the turnaround of several financially distressed music companies as part of a roll-up strategy. He also built and sold a company in the music industry in 2010. Mr. Levy possesses expertise in consumer products, marketing, television/radio advertising, and direct-to-consumer sales. He has a Bachelor's degree in Business Administration from the University of California at Berkeley and an MBA from the Stanford Graduate School of Business. He is also a Certified Public Accountant.

Joseph F. McGuire, Chief Financial Officer

Mr. McGuire was appointed Chief Financial Officer, effective January 1, 2025, and has been consulting with NEXGEL since September 2, 2024. He brings over 30 years of financial and public company experience, having served as Chief Financial Officer for several privately held and publicly traded companies across the healthcare, financial services, investment, and manufacturing industries. Notably, he was a key member of the team that successfully guided a biotechnology company through its IPO, leading to its listing on the NYSE in July 2022. His responsibilities in these roles included SEC financial reporting, investor relations, corporate governance, legal and audit liaison, and team building. Mr. McGuire began his career with Price Waterhouse as a certified public accountant and held management positions with Dean Witter Reynolds and Paine Webber, Inc. He earned a Bachelor of Science in accounting from the University of Notre Dame.

Gregory J. Robb, VP, Operations

Mr. Robb has over 30 years of experience in the electron beam processing industry. He has spent the last 23 years producing electron beam cross-linked hydrogels. Mr. Robb was responsible for designing the layout, coordinating, and supervising the construction of the NEXGEL facility.

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The key risks to NexGel's (NXGL) business are primarily centered around its financial stability, market acceptance of its products, and reliance on key customer relationships.

1. Financial Health and Path to Profitability: NexGel faces significant financial challenges, characterized by negative operating and net margins. The company's Altman Z-Score of -0.6 places it in a "distress zone," indicating potential financial instability. Furthermore, as of September 30, 2025, NexGel had a limited cash runway with only approximately $938,000 in cash and equivalents, making it highly sensitive to working capital fluctuations. Analysts anticipate the company to remain unprofitable in 2025, expecting a final loss before potentially generating positive profits in 2026. Achieving its full-year revenue guidance for 2025 would require a record-breaking fourth quarter.
2. Market Acceptance and Intense Competition: The future success of NexGel is highly dependent on the market acceptance of both its existing and future products by the medical community, including hospitals, physicians, and other healthcare providers, as well as third-party payers. The company operates in an intensely competitive environment, facing the risk of new competitors entering the market. Large, established players such as 3M and Johnson & Johnson possess substantial research and development budgets and extensive distribution networks, enabling them to quickly enter or dominate new market segments, posing a significant threat to NexGel's growth and market share.
3. Customer Concentration and Partnership Reliance: NexGel's revenue stream is subject to risks associated with customer concentration and reliance on key partnerships. For instance, the timing and success of specific product launches, such as the AbbVie ReSonic product, could significantly impact revenue recognition. The company's overall business model relies on a few key partnerships and its ability to scale consumer sales effectively, making it vulnerable to the loss of a major customer or supplier or any disruptions in these relationships.

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NexGel (NXGL) operates in several addressable markets with its hydrogel-based products and services:

• Scar Treatment Market: NexGel's SilverSeal wound care product is aimed at the scar treatment market, which is expected to reach $45.0 billion by 2028 globally.
• Amblyopia Market: The global amblyopia market, for which NexGel has launched products, is expected to reach $6 billion by 2027.
• Overall Hydrogel Market: The global hydrogel market was valued at $23.4 billion in 2023 and is projected to reach $45.7 billion by 2033, growing at a compound annual growth rate (CAGR) of 6.9% from 2024 to 2033. Another estimate places the global hydrogel market size at $40.87 billion in 2024, projected to reach $71.46 billion by 2032 with a CAGR of 7.2% from 2025 to 2032.
• Hydrogel Wound Care Market:
  • The global hydrogel wound care market is projected to reach $516.3 million by 2027 from $356.7 million in 2022, growing at a CAGR of 7.7%.
  • The global hydrogel dressing market was estimated at $920.32 million in 2023 and is projected to grow at a CAGR of 4.32% from 2024 to 2030. North America dominated this market in 2023 with a 45.46% share.
  • Within the broader wound gel market, North America held the largest revenue share of 44.79% in 2024, with the U.S. accounting for 77.79% of the North American market.
• Personal Care/Beauty Industry: NexGel's consumer products, such as those under the LumaGel Beauty and Silly George brands, fall within the personal care industry. The personal care industry in the U.S. grew by 2.95% in 2022 and was expected to reach $42.2 billion in 2023.

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NexGel (NASDAQ: NXGL) is positioned for future revenue growth over the next 2-3 years, driven by several key initiatives across its business segments.

Here are 3-5 expected drivers of NexGel's future revenue growth:

1. Expansion of Contract Manufacturing Business: NexGel has demonstrated significant growth in its contract manufacturing segment, which saw a 103% year-over-year increase in revenue during Q2 2025. This growth is fueled by increased demand from existing customers and the successful onboarding of new global corporations, such as Cintas and Owens & Minor. The company anticipates continued expansion in this area, with reorders from key partners like Cintas already commencing.
2. New Product Launches and Growth in Branded Consumer Products: The branded consumer products segment is a strong driver, experiencing a 95% year-over-year revenue increase in Q2 2025. This is largely attributed to the successful launch of new products under the Silly George brand, with additional beauty and skincare products expected to contribute meaningfully to revenue in Q3 and Q4 2025. Furthermore, NexGel plans to expand product lines for its Kenkoderm and MEDAGEL brands, targeting larger markets such as eczema solutions and new wound and burn kits.
3. Strategic Partnerships and Joint Product Development: NexGel is leveraging strategic partnerships to introduce new products. An expanded partnership with STADA is projected to result in new product launches as early as Q4 2025, supported by a $1 million non-dilutive funding from STADA for product launches and marketing. The company is also exploring new product channels in categories like cosmetics, athletic products, and proprietary medical devices.
4. Advancements in Medical Device Applications: The integration of NexGel's hydrogels into iRhythm's Zio® ECG heart monitor represents an impactful application of its technology. NexGel is actively developing new medical devices, including NEXDrape, an incise surgical drape for patients with impaired skin, and NEXDerm, an adhesive tape for securing central lines and medical devices. The company expects increased research and development costs in this area, signaling its commitment to growth in the medical device sector.

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Share Repurchases

• In December 2022, NEXGEL's Board of Directors authorized a share repurchase program to purchase up to $500,000 of the Company's common shares.

Share Issuance

• In December 2021, NexGel completed an initial public offering (IPO), pricing 2,585,000 units (each consisting of one share of common stock and one warrant) at $5.50 per unit, generating gross proceeds of approximately $14.2 million.
• In November 2024, NEXGEL announced a $2 million registered direct offering, issuing 727,272 shares of common stock and warrants to purchase up to 363,636 shares at a combined offering price of $2.75 per share.
• In August 2025, NEXGEL conducted a $950,000 registered direct offering, issuing 413,044 shares of common stock at $2.30 per share, alongside unregistered warrants to purchase 206,522 shares.

Inbound Investments

• In August 2025, NEXGEL received a $1 million non-dilutive advance from STADA, enhancing the company's working capital and strengthening its balance sheet.

Outbound Investments

• In December 2023, NexGel acquired the Kenkoderm brand, a skincare line developed for psoriasis treatment.
• In May 2024, NexGel acquired the Silly George brand, a beauty brand specializing in false eyelashes and other eye-related products.

Capital Expenditures

• Prior to December 2021, NexGel completed a $650,000 facility accelerator upgrade aimed at more efficient manufacturing processes.
• In January 2024, NEXGEL announced a 12,000 square foot expansion of its CG Converting and Packaging facility in Granbury, Texas, to support anticipated growth in product demand. The expansion is landlord-funded, with NexGel purchasing new, financed automation equipment.
• Research and development costs incurred were approximately $367,000 in 2022, $103,000 in 2023, and $78,000 in 2024, with expectations for increased future investment in medical device development.