4. Business Segments

 

The Company’s CODM evaluates the financial performance of the Company’s segments based upon segment operating income or (loss) as the profitability measure. The Company has identified its Chief Executive Officer as the CODM. Items outside of 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, 2025 and 2024 is presented below. 

 

For Year Ended December 31, 2025 ($ in thousands)

 

   NexGel   CG Labs   Total 
Revenues   8,613    2,808    11,421 
                
Cost of sales   4,921    1,991    6,912 
                
Advertising, marketing and amazon fees   2,502    -    2,502 
General and administrative   4,815    542    5,357 
Total Selling, general and administrative   7,317    542    7,859 
                
Research and development   2    -    2 
                
Operating expenses   7,319    542    7,861 
                
Loss from operations  $(3,627)  $275   $(3,352)

 

For Year Ended December 31, 2024 ($ in thousands)

 

   NexGel   CG Labs   Total 
Revenues   6,631    2,057    8,688 
                
Cost of sales   4,209    1,731    5,940 
                
Advertising, marketing and amazon fees   2,220    -    2,220 
General and administrative   3,409    595    4,004 
Total Selling, general and administrative   5,629    595    6,224 
                
Research and development   78    -    78 
                
Operating expenses   5,707    595    6,302 
                
Loss from operations  $(3,285)  $(269)  $(3,554)

 

 As of December 31, 2025 ($ in thousands)

 

   NexGel   CG Labs   Total 
Total Assets  $6,777   $3,684   $10,461 

 

As of December 31, 2024 ($ in thousands)

 

   NexGel   CG Labs   Total 
Total Assets  $7,721   $3,262   $10,983 

 

 

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 27, 2025
2023Apr 10, 2024

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.