NexGel, Inc

Good afternoon. I will be your conference operator today. At this time, I would like to welcome everyone to NextGel's Shareholder Update Conference Call. I will now turn the call over to Walter Pinto, Managing Director of KCSA Strategic Communications for Introductions. Please go ahead.

Thank you, Operator. Good afternoon and welcome everyone to NextGel's Shareholder Update Conference Call. I'm joined today by Adam Levy, Chief Executive Officer. Before we begin, I'd like to remind everyone the statements made during today's conference call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995. And actual results may differ materially due to a variety of risks, uncertainties, and other factors. For a detailed discussion of some of the ongoing risks and uncertainties in the company's business, I refer you to our filings that the SEC filed periodically. The company dispends any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, unless otherwise required by law. With that, it's my pleasure to turn the call over to Mr. Adam Levy. Adam, please go ahead.

Thank you, Walter, and thank you, everyone, for joining. On today's call, I will discuss our announcement this morning regarding the closing of our transaction to acquire Cellularity's degenerative wound segment. This is a transformational step forward for our company, marking our evolution into a more scalable, diversified medical technology business, tripling our revenue run rate and immediately contributing to profitability. To close on the transaction, we successfully secured capital on more favorable terms, led by Sequence Life Science, a strategic partner with deep expertise in regenerative medicine, manufacturing, development, and commercialization. Their lead investment of $5.5 million not only strengthened the financing structure of the transaction, but also aligned us with a partner that enhances our capabilities across all of the aforementioned verticals. The financing was done through convertible notes at a $0.60 conversion price and 50% warrant coverage with a strike price of $0.80. We are excited to announce the formation of a new division, Bionics Surgical. a dedicated division focused on advanced biomaterials for tendon repair, soft tissue reconstruction, bone regeneration, and of course, wound care. The acquired portfolio includes six established regenerative biomaterial products spanning these key areas, positioning us squarely within one of the fastest growing segments of healthcare. These are not early stage assets. They are commercial stage products with more than a decade of clinical use demonstrated real-world utility, and existing reimbursement pathways. These products are already approved in approximately 500 hospitals and represent the large opportunity for bionics in non-orthopedic surgical specialties. In addition to these commercialized products, there are currently three existing 510K devices in our pipeline. These three products have $4.6 million in paid-in capital and are scheduled for 2026, Beyond the products themselves, we are also gaining an experienced commercial and scientific team. This is an important aspect of the transaction as it meaningfully expands our internal capabilities and strengthens our ability to develop and market Nextgel's own medical devices as well. This transaction will be transformative not only from a strategic standpoint but also financially. On a pro forma basis, we expect it to approximately triple our annual revenue to roughly $35 million and be immediately accreted to profitability upon closing. The strategic partnership with Sequence Life Science is incredibly important to Nextgel. In addition to providing the crucial capital for us to close on this transaction, Sequence brings an enormous wealth of expertise and skills. Sequence will act as backup manufacturer for the existing products, help us develop new products, and aid with distribution channels of their own to further expand our reach. I cannot think of a better partner for the journey we are about to take. Taken together, the acquisition and our strategic partnership with Sequence represent a step change in NextGel's trajectory. We are combining a proven hydrogel platform with a portfolio of commercial regenerative products supported by a strategic manufacturing partner occurring on favorable financing terms. This positions us to accelerate product development, broaden our commercial footprint, and pursue new opportunities within the regenerative medicine landscape. Our focus is now on execution and successfully integrating these assets and driving commercial growth. We will continue to build a platform that can generate sustained, long-term growth and profitability. With that, I'd like to open the call for questions. Operator?