SAN DIEGO--(BUSINESS WIRE)--DermTech, Inc. (NASDAQ: DMTK) (DermTech or the Company), a leader in precision dermatology enabled by a non-invasive skin genomics technology, today announced additional restructuring actions to prioritize revenue growth, streamline operations and further reduce overall operating expenses. The Company has continued to rigorously evaluate its growth opportunities and operations, while dedicating substantially all of its resources to growing reimbursed DermTech Melanoma Test (DMT) ...

SAN DIEGO--(BUSINESS WIRE)--DermTech, Inc. (NASDAQ: DMTK) (DermTech or the Company), a leader in precision dermatology enabled by a non-invasive skin genomics technology, today reported positive topline results from a study evaluating the foundational gene expression assay component of the DermTech Melanoma Test (DMT) across all skin types in the real-world clinical setting. The peer-reviewed study entitled, “ Non-invasive gene expression analysis rules out melanoma with high negative predictive value regar ...

SAN DIEGO--(BUSINESS WIRE)--DermTech, Inc. (NASDAQ: DMTK) (DermTech or the Company), a leader in precision dermatology enabled by a non-invasive skin genomics technology, today announced that it will discontinue the optional TERT promoter mutation add-on assay for its DermTech Melanoma Test (DMT) effective March 1, 2024. Multiple studies, including the Company’s recently completed Trust 2 Study, demonstrated the DMT’s negative predictive value (NPV) to be 99% or higher. A high NPV for a rule-out test provi ...

SAN DIEGO--(BUSINESS WIRE)--DermTech, Inc. (NASDAQ: DMTK) (DermTech or the Company), a leader in precision dermatology enabled by a non-invasive skin genomics technology, today reported positive topline results from its Trust 2 Study, which evaluated the foundational gene expression assay component of the DermTech Melanoma Test (DMT) in a real-world clinical setting. “ The Trust 2 Study results reaffirm the DMT’s real-world clinical utility to rule out melanoma with a negative predictive value (NPV) that i ...

DermTech, Inc. (NASDAQ:DMTK) Q3 2023 Earnings Conference Call November 2, 2023 5:00 PM ET Steve Kunszabo - Head, IR Kevin Sun - CFO Thomas Flaten - Lake Street Capital Markets Alex Nowak - Craig-Hallum Jacob Johnson - Stephens Ladies and gentlemen, thank you for standing by. Welcome to DermTech's Third Quarter 2023 Financial Results Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. Please be ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ________________________ FORM 10-Q ________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38118 ________________________ DERMTECH, INC. (Exact Name ...

Financial Data and Key Metrics Changes - The net loss for Q2 2023 was $31.4 million, compared to a net loss of $29.6 million in Q2 2022, reflecting an increase in non-cash stock-based compensation expense from $4.8 million to $7.5 million [2] - Total revenue for Q2 2023 fell 6% year-over-year to $4.0 million, primarily due to lower test revenue, but was up 14% sequentially [55] - Test revenue decreased 14% year-over-year to $3.6 million, largely due to a downward revenue adjustment of $0.3 million from prior periods [53] Business Line Data and Key Metrics Changes - Average Selling Price (ASP) was $204 per sample in Q2 2023, down 10% year-over-year but up 6% sequentially [12] - Cost of test revenue was $3.9 million, a 21% year-over-year increase, resulting in a test gross margin of negative 10% [13] - Contract revenue increased to $0.4 million in Q2 2023 from $0.1 million in the same period last year, attributed to new agreements with biopharma customers [54] Market Data and Key Metrics Changes - The proportion of billable sample volume from Medicare grew sequentially from 23% to 25% in Q2 2023 [12] - Approximately 2,420 unique ordering clinicians were recorded in Q2 2023, down 5% from the previous quarter, with a penetration of 48% of the target market of 9,000 dermatology clinicians [58] Company Strategy and Development Direction - The company is focusing on prioritizing reimbursed tests over total volume to grow revenue, with a goal to increase ASP and test revenue in 2023 compared to 2022 [60] - The company aims to expand coverage for the DermTech Melanoma Test (DMT) and sustain its cash runway, with a cash position of $89.7 million at the end of the quarter [61][62] - Legislative efforts are underway to mandate insurance coverage for genomic testing, which could positively impact volumes and ASP if passed [41][75] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about ongoing discussions with national payers and the potential for favorable coverage decisions based on recent health economic data [21] - The company anticipates that DMT volumes will remain flat in 2023 due to the focus on reimbursed tests, but expects ASP and test revenue to increase [60] - The TRUST 2 study is expected to provide additional real-world evidence to support payer discussions, with top-line results anticipated in the second half of 2023 [42][70] Other Important Information - The company has streamlined operations and reduced its sales team from approximately 70 to 60 representatives to focus on reimbursed tests [46] - Sales and marketing expenses decreased by 13% year-over-year to $13.0 million, primarily due to reduced marketing expenditures [59] Q&A Session Summary Question: How should we think about gross margins? - Management indicated that the increase in per test COGS was due to higher infrastructure costs and wages, but they are committed to reducing COGS going forward [9] Question: Can you walk through how you're restructuring the clinical teams for coverage wins? - Management noted that they are focused on increasing covered lives and ensuring a higher percentage of reimbursed tests, currently at about 45% [20] Question: What impact would biomarker bills have on volumes and ASP? - Management stated that many states are considering legislation to require insurance coverage for tests with critical biomarkers, which could enhance access and reimbursement [75] Question: Where will the reductions in operating expenses come from? - Management explained that the restructuring affected most departments, with a focus on prioritizing the DMT and reducing broad marketing initiatives [77] Question: How will the ATM facility be used going forward? - Management indicated that the ATM provides flexibility and is one of the lowest cost capital options, with careful consideration for future deployment [78]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ________________________ FORM 10-Q ________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38118 ________________________ DERMTECH, INC. (Exact Name of R ...

Financial Data and Key Metrics Changes - Test revenues for Q1 2023 were $3.4 million, a 3% decrease year-over-year but a 27% increase sequentially [61] - Average Selling Price (ASP) was $192 per sample in Q1 2023, down 22% year-over-year but up 25% sequentially [62] - Net loss for Q1 2023 was $31.3 million, compared to a net loss of $30.1 million in Q1 2022 [65] - Cash burn for Q1 2023 was under $22 million, the lowest in the last four quarters, compared to over $26 million in Q1 2022 [90] Business Line Data and Key Metrics Changes - Billable sample volumes increased by 24% year-over-year and 2% sequentially to approximately 17,800 [61] - The proportion of Medicare in total DMT volumes was 23% in Q1 2023, compared to 24% in the same period last year [70] Market Data and Key Metrics Changes - The company added approximately 35 million covered lives since the end of 2022, bringing the total to approximately 126 million covered lives in the U.S. [42] - The company is making progress with Medi-Cal, California's Medicaid program, which serves over 12 million members [45] Company Strategy and Development Direction - The company is focusing on improving ASP and generating more reimbursed test volumes, shifting away from total test volume growth [56] - The company is targeting additional demand-based and discretionary savings in cash operating expenses for 2023 [65] - The TRUST 2 study is expected to provide additional evidence to support payer discussions, with top-line results anticipated in the second half of 2023 [51][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for ASP improvement and the impact of recent payer wins on revenue [72] - The company is not providing specific revenue guidance until there is better visibility on ASP and payment rates from recent coverage wins [72] - Management noted that the economic assessments being conducted by affordability groups related to national plans are looking favorable [47] Other Important Information - The company has completed its CLIA laboratory move, which is expected to enhance operational efficiency [39] - The company is working on a plan to reintroduce testing for pediatric patients and certain Fitzpatrick Skin Types [55] Q&A Session Summary Question: What are the characteristics expected of the new CEO? - Management indicated that details will be shared upon the announcement of the final candidate [74] Question: How many territories were dissolved, and what is the impact on sales reps? - Approximately 5 sales reps were reduced, and territories were merged to focus on reimbursed samples [75] Question: What is the outlook for revenue given flat volumes and ASP increases? - Management suggested that it is reasonable to expect revenue to be slightly up, but definitive guidance is not yet provided [77] Question: What is the timing for updates from the two large payers? - Management stated that updates are expected in the second half of the year, with favorable economic analyses being conducted [81] Question: How does the company plan to achieve positive gross margins? - The company plans to improve gross margins by increasing ASP and achieving better absorption of costs in the new laboratory [93]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38118 ________________________ DERMTECH, INC. WASHINGTON, DC 20549 ________________________ FORM 10-Q ________________________ Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 (Exact Name of R ...