Q2 2023 NEXGEL Inc Earnings Call

Speaker 1: of 2023, and we believe we are well positioned for long-term growth. With that, I would like to turn the call over to our CFO Adam Drapseck. Adam? Thank you, Adam. Today I will review financial highlights of our second quarter of 2023 results. For the second quarter of 2023, as Adam mentioned, revenue totalled 1,177.

Speaker 1: in the second quarter of 2022.

Speaker 1: This growth was primarily due to sales growth and contract manufacturing of 174% and branded products of 44% year over year.

Speaker 1: On the branded consumer side, this was our best quarter ever, reflecting strong sales on Amazon.

Speaker 1: Revenue for Q2 also included a full quarter contribution from the newly formed joint venture, DG Converting and Packaging.

Speaker 1: In the second quarter of 2023, branded product revenue was 22% versus 76% for contract manufacturing revenue.

Speaker 1: Cost of revenues was $992,000 for the quarter-ended June 30, 2023, compared to $460,000 for the quarter-ended June 30, 2022. The increase in cost of revenues is primarily aligned with the increase in revenues.

Speaker 1: That would include some costs related to increased marketing efforts that will not be recurring. Gross profit for the second quarter of 2023 was 175,000 compared to the gross profit of 101,000 for the same period in 2022.

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