NXGLW — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-05-14

• For the three months ended March 31, 2026 revenues were $2,650 and decreased by $156, or 5.6%, when compared to $2,806 for the three months ended March 31, 2025. The decrease in our overall revenues was primarily due to a decline in our branded consumer products, partially offset by an increase in M…

• Cost of revenues are as follows for the three months ended March 31, 2026 and 2025 ($ in thousands):

• Cost of revenues decreased by $29, or 1.79%, to $1,589 for the three months ended March 31, 2026, as compared to $1,618 for the three months ended March 31, 2025. The decrease in cost of revenues is primarily aligned with decrease in sales.

• Our gross profit was $1,061 for the three months ended March 31, 2026 compared to a gross profit of $1,188 for the three months ended March 31, 2025. The decrease of $127 in gross profit recorded for the three months ended March 31, 2026, as compared to March 31, 2025, was primarily due to the decre…

• Selling, general and administrative expenses increased by $55, or 2.8%, to $2,019 for the three months ended March 31, 2026, as compared to $1,964 for the three months ended March 31, 2025. The increase in Selling, general and administrative expenses is primarily attributable to an increase in incre…

Text removed vs the prior filing · source: 10-Q · 2025-11-12

• For the three months ended September 30, 2025 revenues were $2,934 and decreased by $6, or 0.20%, when compared to $2,940 for the three months ended September 30, 2024.

• Gross profit (loss). Our gross profit was $1,243 for the three months ended September 30, 2025 compared to a gross profit of $1,155 for the three months ended September 30, 2024. The increase of $88 in gross profit quarter over quarter was primarily due to the decrease in depreciation and amortizati…

• The components of cost of revenues are as follows for the three months ended September 30, 2025 and 2024 ($ in thousands):

• Cost of revenues decreased by $94, or 5.2%, to $1,691 for the three months ended September 30, 2025, as compared to $1,785 for the three months ended September 30, 2024. The decrease in cost of revenues is primarily related to a decrease in depreciation and amortization expense.

• Total selling, general and administrative expenses $1,961 $1,943

Text added vs the prior filing · source: 10-Q · 2026-05-14

• Specifically, management has concluded that its internal control over financial reporting was not effective as of March 31, 2026 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with accounting principles gener…

• To remediate these material weaknesses, we are working to do the following: (i) implementing appropriate controls for accounting journal entry approvals, including the approval of our chief financial officer, and (ii) either actively monitoring any accounting user with elevated rights or assigning a…

Text removed vs the prior filing · source: 10-Q · 2025-11-12

• Specifically, management has concluded that its internal control over financial reporting was not effective as of September 30, 2025 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with accounting principles g…

• Additionally, we have not designed controls to ensure the financial reporting process is operating effectively. We noted improper fair value adjustments to contingent consideration, failure to record adequate inventory reserves and various balance sheet accounts not being properly reconciled. We int…

Text added vs the prior filing · source: 10-Q · 2026-05-14

• From time to time, we may become involved in lawsuits, investigations and claims that arise in the ordinary course of business. As of the date of this information statement, we are not a party to any litigation whereby the outcome of such litigation, if determined adversely to us, would materially a…

Text removed vs the prior filing · source: 10-Q · 2025-11-12

• On April 9, 2025, we filed a Complaint for Declaratory Judgment against Kiss Nail Products, Inc. (“Kiss Nail Products”) in the United States District Court for the Eastern District of Pennsylvania (NexGel, Inc. v. Kiss Nails Products, Inc.). The dispute relates a takedown notice sent by Kiss Nail Pr…

• From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. Except…

• There are no material proceedings in which any of our directors, officers or affiliates or any registered or beneficial shareholder of more than 5% of our common stock is an adverse party or has a material interest adverse to our interest.