LANGHORNE, PA—Adam R. Levy, the Chief Executive Officer of NexGel, Inc. (NASDAQ:NXGL), has purchased 3,636 shares of the company's common stock, according to a recent SEC filing. The shares were acquired at a price of $2.75 each, totaling $9,999. This transaction took place as part of NexGel's registered direct offering on November 20, 2024.
Additionally, Levy acquired warrants to purchase 1,818 shares of common stock. These warrants were issued at no cost and have an exercise price of $4.25 per share, expiring on November 20, 2029. Following these transactions, Levy's direct ownership stands at 333,196 shares of common stock and 1,818 shares underlying the warrants.
As part of the offering agreement, Levy has committed not to sell or otherwise dispose of the newly acquired shares and the shares underlying the warrants for a period of 180 days following the transaction date.
In other recent news, NEXGEL reported a remarkable increase in revenue for Q3 2024, reaching a record $2.94 million, a 141% increase year-over-year. This significant surge in revenue was driven by the acquisition of the Silly George brand and a 103% sequential increase in contract manufacturing revenue. Despite the revenue growth, NEXGEL experienced a net loss of $754,000, a rise from the previous year's $552,000 loss.
The company also launched Histasolv in collaboration with STADA and entered a distribution agreement with Cintas (NASDAQ:CTAS) for SilverSeal. A human trial for a hydrogel application in laser hair removal is also underway. NEXGEL anticipates exceeding $3 million in revenue in Q4 2024, with potential revenue from the laser hair removal study expected in the first half of 2025.
However, despite the promising revenue growth, selling, general, and administrative expenses rose by approximately 118% to $2.07 million, largely due to increased advertising and marketing costs. The company remains optimistic about achieving cash flow positivity, which would enable strategic growth and acquisitions. These are the recent developments in the company's operations.
InvestingPro Insights
To provide additional context to Adam R. Levy's recent stock purchase, let's examine some key financial metrics and insights from InvestingPro for NexGel, Inc. (NASDAQ:NXGL).
NexGel has demonstrated impressive revenue growth, with a 90.57% increase in the last twelve months as of Q3 2024. This aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year. The company's strong performance is also reflected in its stock price, which has seen a significant 77.72% total return over the past year and is currently trading near its 52-week high at 93.52% of that peak.
Despite these positive indicators, it's important to note that NexGel is not currently profitable. The company reported an operating income margin of -58.43% in the last twelve months, and an InvestingPro Tip suggests that analysts do not anticipate the company will be profitable this year. This could explain why the CEO's recent purchase might be seen as a vote of confidence in the company's future prospects.
For investors considering NexGel, it's worth noting that InvestingPro offers 10 additional tips for this stock, providing a more comprehensive analysis of the company's financial health and market position. These insights can be particularly valuable given the company's current growth trajectory and profitability challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.