aibioNexGel signs a new employment agreement with CEO Adam Levy
Tickers NXGL
The July 23, 2026 agreement sets a $375,000 base salary, EBITDA-linked bonus tiers and an option grant of 160,000 shares at $0.647 per share.
Key facts
- Company
- NEXGEL, INC. (NASDAQ: NXGL)
- News type
- Company Updates
- Primary source
- NEXGEL, INC. 8-K (2026-07-29)
NexGel, Inc. entered into an Executive Employment Agreement with Adam Levy, its President and Chief Executive Officer, on July 23, 2026, effective the same day, according to a Form 8-K filed July 29, 2026. The agreement supersedes and replaces a 2025 Executive Employment Agreement dated December 31, 2024, which expired by its terms on December 31, 2025.
Salary and bonuses
Mr. Levy's base salary is $375,000 per year. He is eligible for a discretionary targeted cash bonus of up to $25,000 for fiscal year 2026, based on the Compensation Committee's assessment of his performance.
He is also eligible for a fiscal 2026 cash bonus, pro-rated from April 17, 2026, based on the company's achievement of specified EBITDA targets. The bonus equals 10% of his base salary if the company achieves EBITDA of at least $4 million, 30% if it achieves at least $6 million, or 50% if it achieves at least $8 million. Only one of the EBITDA tiers may be earned for fiscal 2026, and the tiers are not cumulative.
Equity and change in control
Mr. Levy received a grant of options to purchase up to 160,000 shares of common stock under the company's 2019 Long-Term Incentive Plan. The grant is treated as an incentive stock option to the extent it qualifies, and the remainder is a non-qualified stock option. It has a five-year term and a per share exercise price of $0.647.
The grant vests as follows. 40,000 shares vest on December 31, 2026. The remaining 120,000 shares vest in 36 equal monthly installments of 3,334 shares, with rounding adjustments, starting January 31, 2027. Each vesting date is subject to Mr. Levy's continued employment. Any unvested portion accelerates and becomes exercisable immediately before a Change in Control, as defined in the plan.
Severance and restrictive covenants
If the company terminates Mr. Levy's employment without cause, or he resigns for good reason, as those terms are defined in the agreement, the severance period is twelve months. The benefits consist of continued base salary for twelve months, a pro-rata portion of his target annual bonus for the year of termination, reimbursement of COBRA premiums for twelve months, and acceleration of equity awards that would have vested through the end of that period.
If the same termination occurs within twelve months after a Change in Control, Mr. Levy receives a lump sum equal to one times his then-current base salary plus 100% of his target annual bonus, twelve months of COBRA premium reimbursement, and full acceleration of all unvested equity awards.
The agreement contains customary non-competition, non-solicitation, confidentiality and assignment of inventions provisions. These include a one-year post-employment non-competition restriction in the United States, a one-year post-employment employee non-solicitation restriction, and a two-year post-employment customer and vendor non-solicitation restriction.
The company and its financial position
NexGel is based in Langhorne, Pennsylvania, and is listed on The Nasdaq Capital Market under NXGL. Its annual report on Form 10-K/A for fiscal 2025 lists 8,849,665 shares of common stock outstanding as of April 28, 2026. Revenue was $11.4 million for 2025 and $8.7 million for 2024. The net loss was $3.0 million in 2025 and $3.3 million in 2024. Cash from operations was negative $1.3 million in 2025 and negative $3.9 million in 2024. Year-end 2024 cash and cash equivalents were $1.8 million.
What comes next
The pay package arrives at a small, loss-making company. NexGel reported a net loss of $3.0 million for 2025 and used $1.3 million of cash in operations, and the options carry an exercise price of $0.647 per share. The lowest bonus tier needs EBITDA of at least $4 million, and the filing gives no EBITDA figure for 2025 to compare with it. The agreement replaces one that had already expired on December 31, 2025. The first vesting date under the option grant is December 31, 2026, when 40,000 shares vest. Monthly vesting of the remaining shares begins January 31, 2027. The 2026 EBITDA bonus depends on whether the company reaches one of the three stated EBITDA targets for fiscal 2026.