Core Insights - Dermata Therapeutics has received acceptance for its patent application in Australia for its Spongilla technology aimed at treating acne [1] - The company plans to launch a new Over-the-Counter (OTC) pharmaceutical acne kit utilizing this technology by mid-2026 [1] - Acne affects over 3.3 million individuals in Australia, indicating a significant market opportunity for Dermata's product [1] Company Summary - Dermata Therapeutics, Inc. is a leader in dermatologic solutions, focusing on science-driven approaches to skin conditions [1] - The accepted patent is titled "Compositions and methods for the treatment of skin conditions," which highlights the innovative nature of Dermata's technology [1] Industry Summary - The acne treatment market is substantial, with over 3.3 million diagnosed cases in Australia, suggesting a strong demand for effective treatment options [1]

Core Insights - Dermata Therapeutics, Inc. announced the presentation of an abstract from its Phase 3 STAR-1 clinical study of XYNGARI™ for treating moderate-to-severe acne at the EADV Congress 2025 in Paris [1] Group 1: Clinical Study Details - The abstract titled "Once Weekly Topical Treatment with DMT310 Demonstrates Significant and Early Onset of Effect in Patients with Moderate to Severe Acne Vulgaris - Results from the STAR-1 Phase 3 Study" will be presented [1] - The full abstract will be released on September 16, 2025, at 10:00 PM (PST) [1]

SAN DIEGO, Sept. 16, 2025 (GLOBE NEWSWIRE) -- Dermata Therapeutics to Present at the Life Sciences Virtual Investor Forum September 18th Dermata invites individual and institutional investors, as well as advisors and analysts, to attend online at VirtualInvestorConferences.com San Diego, CA, September 16, 2025 -- Dermata Therapeutics, Inc. (Nasdaq: DRMA; DRMAW) (“Dermata” or the “Company”), a science-driven leader in dermatologic solutions, today announced that Gerry Proehl, Founder and CEO of Dermata, will ...

SAN DIEGO, CA / ACCESS Newswire / September 10, 2025 / Dermata Therapeutics, Inc. (Nasdaq:DRMA)(Nasdaq:DRMAW) ("Dermata" or the "Company"), a science-driven leader in dermatologic solutions, today announced a bold strategic pivot to prioritize the development and distribution of over-the-counter (OTC) pharmaceutical dermatology focused products that can be sold directly to consumers. This decision was informed by the knowledge gained while developing the Company's Spongilla technology as well as current mar ...

[Part I Financial Information](index=3&type=section&id=Part%20I%20Financial%20Information) [Item 1: Financial Statements (unaudited)](index=3&type=section&id=Item%201%3A%20Financial%20Statements%20(unaudited)) This section presents the unaudited interim financial statements for Dermata Therapeutics, Inc., including the Balance Sheets, Statements of Operations, Statements of Stockholders' Equity, Statements of Cash Flows, and accompanying Notes to Financial Statements, providing a snapshot of the company's financial position and performance for the periods ended June 30, 2025 [Balance Sheets](index=4&type=section&id=Balance%20Sheets) Balance Sheets Summary | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------- | :-------------- | :------------------ | | Cash and cash equivalents | $6,480,930 | $3,161,570 | | Total assets | $6,640,516 | $3,533,888 | | Total liabilities | $1,026,265 | $1,972,794 | | Total stockholders' equity | $5,614,251 | $1,561,094 | [Statements of Operations](index=5&type=section&id=Statements%20of%20Operations) Statements of Operations Summary | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Research and development | $617,835 | $2,009,102 | $1,898,976 | $3,609,843 | | General and administrative | $1,154,896 | $874,640 | $2,213,559 | $2,477,459 | | Total operating expenses | $1,772,731 | $2,883,742 | $4,112,535 | $6,087,302 | | Net loss | $(1,701,093) | $(2,829,106) | $(4,004,680) | $(5,963,368) | | Net loss per share, basic and diluted | $(1.66) | $(41.82) | $(5.18) | $(106.44) | [Statements of Stockholders' Equity](index=6&type=section&id=Statements%20of%20Stockholders'%20Equity) - Total stockholders' equity increased significantly from **$1,561,094** at December 31, 2024, to **$5,614,251** at June 30, 2025, primarily driven by the issuance of common stock and warrants from the January 2025 PIPE and March 2025 Warrant Inducement, which generated net proceeds of **$2,254,721** and **$5,750,828** respectively, despite a net loss of **$(4,004,680)** for the six months ended June 30, 2025[16](index=16&type=chunk)[19](index=19&type=chunk)[14](index=14&type=chunk) [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) Statements of Cash Flows Summary (Six Months Ended June 30) | Cash Flow Activity | 2025 | 2024 | | :----------------- | :------------ | :------------ | | Operating activities | $(4,624,547) | $(4,830,407) | | Financing activities | $7,943,907 | $2,339,372 | | Net increase (decrease) in cash and cash equivalents | $3,319,360 | $(2,491,035) | | Cash and cash equivalents at end of period | $6,480,930 | $4,947,100 | [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Financial%20Statements) The notes provide detailed information on the company's organization, significant accounting policies, financial instruments, equity activities, commitments, and contingencies, highlighting key events such as reverse stock splits, capital raises, and clinical trial progress, along with the ongoing going concern uncertainty [1. Organization and Basis of Presentation](index=9&type=section&id=1.%20Organization%20and%20Basis%20of%20Presentation) - Dermata Therapeutics, Inc. is a clinical-stage biotechnology company focused on skin conditions, which converted to a Delaware C-corporation in March 2021[25](index=25&type=chunk) - The company effected a **1-for-10 reverse stock split** on August 1, 2025, and a **1-for-15 reverse stock split** on May 16, 2024, retroactively adjusting all share and per share amounts[26](index=26&type=chunk)[27](index=27&type=chunk) - As of June 30, 2025, the company had **$6.5 million** in cash and an accumulated deficit of **$69.7 million**, with cash expected to fund operations into Q2 2026, raising substantial doubt about its ability to continue as a going concern[28](index=28&type=chunk)[31](index=31&type=chunk) [2. Summary of Significant Accounting Policies](index=10&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) - The company operates as a single segment focused on developing and commercializing pharmaceutical candidates for skin conditions[34](index=34&type=chunk) - Research and development costs, including license fees and milestone payments without commercial value, are expensed as incurred[40](index=40&type=chunk) - All warrants issued and modified are equity-classified, recorded as a component of additional paid-in capital[46](index=46&type=chunk) Potentially Dilutive Securities (as of June 30) | Security Type | 2025 | 2024 | | :-------------- | :---------- | :-------- | | Common Stock options | 20,477 | 2,727 | | Common Stock warrants | 1,238,949 | 110,924 | | Total | 1,259,426 | 113,651 | [3. Balance Sheet Details](index=13&type=section&id=3.%20Balance%20Sheet%20Details) Prepaid Expenses and Other Current Assets | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :------------------ | | Prepaid insurance | $68,061 | $349,824 | | Prepaid research and development costs | $7,993 | $12,600 | | Prepaid other and other current assets | $83,532 | $9,894 | | **Total** | **$159,586** | **$372,318** | Accrued and Other Current Liabilities | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :------------------ | | Accrued research and development costs | $28,197 | $295,392 | | Accrued compensation and benefits | $490,703 | $731,632 | | Accrued other | $93,678 | $137,759 | | **Total** | **$612,578** | **$1,164,783** | [4. Equity Securities](index=13&type=section&id=4.%20Equity%20Securities) Equity Securities Summary (as of June 30, 2025) | Description | Authorized | Issued | Abeyance | Reserved | Outstanding | | :-------------------------- | :------------ | :-------- | :-------- | :------- | :---------- | | Common Stock | 250,000,000 | 637,757 | 388,700 | - | 637,757 | | Preferred Stock | 10,000,000 | - | - | - | - | | Warrants | - | 1,238,949 | - | - | 1,238,949 | | 2021 Omnibus Equity Incentive Plan | - | 20,568 | - | 13 | 20,477 | | **Total** | **260,000,000** | **1,897,274** | **388,700** | **13** | **1,897,183** | - In March 2025, the company received approximately **$5.7 million** in net proceeds from a warrant inducement, where a holder exercised **483,447** existing warrants at a reduced price in exchange for new Series A and B warrants[55](index=55&type=chunk)[66](index=66&type=chunk) - In January 2025, the company closed a private placement (PIPE) generating approximately **$2.2 million** in net cash proceeds from the sale of **193,539** shares of Common Stock, pre-funded warrants, and **200,785** PIPE warrants[56](index=56&type=chunk) - As of June 30, 2025, **1,238,949** warrants were outstanding, with an aggregate intrinsic value of zero, based on a closing trading price of **$5.85** per share[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) [5. Equity Incentive Plan](index=17&type=section&id=5.%20Equity%20Incentive%20Plan) - The 2021 Omnibus Equity Incentive Plan was amended to increase authorized shares to **7,993** and the evergreen provision to **5%** of outstanding common stock, adding **12,588** shares as of January 1, 2025[68](index=68&type=chunk) Stock-Based Compensation Expense | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Research and development | $8,100 | $4,623 | $15,720 | $241,960 | | General and administrative | $31,134 | $14,985 | $60,702 | $364,882 | | **Total** | **$39,234** | **$19,608** | **$76,422** | **$606,842** | - As of June 30, 2025, **20,477** stock options were outstanding with a weighted-average exercise price of **$25.27**, and total unrecognized compensation cost was approximately **$0.3 million**, expected to be recognized over **2.7 years**[75](index=75&type=chunk)[78](index=78&type=chunk) [6. Commitments and Contingencies](index=19&type=section&id=6.%20Commitments%20and%20Contingencies) - The XYNGARI™ Phase 3 STAR-1 clinical trial is completed, with **$0.7 million** in R&D expense recognized for the six months ended June 30, 2025[79](index=79&type=chunk) - The company relies on an exclusive supply agreement with a Russian entity for Spongilla raw material, with sufficient quantities on hand to initiate and complete two Phase 3 studies for XYNGARI™ in acne, but future supply could be impacted by sanctions[80](index=80&type=chunk) - A license agreement with Villani, Inc. requires future milestone payments up to **$40.5 million** and single-digit royalties, but no accrual was required as of June 30, 2025, as the likelihood of achievement was not yet probable[81](index=81&type=chunk) - A Clinical Trial Collaboration Agreement with Revance Therapeutics, Inc. was entered into in January 2025 to conduct a Phase 2a clinical trial evaluating XYNGARI™ with Daxxify for primary axillary hyperhidrosis, with no expenses incurred as of June 30, 2025[83](index=83&type=chunk) [7. Segment Information](index=21&type=section&id=7.%20Segment%20Information) - The company operates as a single operating segment focused on identifying, developing, and commercializing pharmaceutical products for skin conditions, with the CEO acting as the chief operating decision maker[87](index=87&type=chunk)[88](index=88&type=chunk) Segment Expenses (Six Months Ended June 30) | Expense Category | 2025 | 2024 | | :----------------- | :------------ | :------------ | | Clinical R&D | $705,645 | $2,439,727 | | Nonclinical R&D | $311,179 | $212,034 | | Personnel related R&D | $882,152 | $958,082 | | Total R&D | $1,898,976 | $3,609,843 | | General and administrative | $2,213,559 | $2,477,459 | | Net loss | $(4,004,680) | $(5,963,368) | [8. Related Party Transaction](index=22&type=section&id=8.%20Related%20Party%20Transaction) - Company insiders, including the CEO, CFO, and board members, participated in the January 2025 PIPE financing, purchasing an aggregate of **122,047** Common Stock and warrants for approximately **$1.55 million**, at the same price as other investors[90](index=90&type=chunk) [9. Subsequent Events](index=22&type=section&id=9.%20Subsequent%20Events) - Subsequent to June 30, 2025, **43,800** abeyance shares related to the March 2025 Warrant Inducement were delivered, leaving **344,900** shares still in abeyance[91](index=91&type=chunk) - The company received a Nasdaq delisting notice for not meeting the **$1.00** minimum bid price requirement but was granted an exception until August 14, 2025, to regain compliance[92](index=92&type=chunk)[94](index=94&type=chunk) - Stockholders approved a reverse stock split, and the board set a **1-for-10** ratio, effective August 1, 2025, which retrospectively adjusted all share and per share amounts in the financial statements[95](index=95&type=chunk)[96](index=96&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202%3A%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, operational results, and liquidity for the reported periods, including an overview of its business, recent developments, critical accounting policies, and future funding requirements, emphasizing the ongoing need for capital and the associated going concern uncertainty [Cautionary Note Regarding Forward-Looking Statements](index=23&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) - The report contains forward-looking statements subject to known and unknown risks and uncertainties, which may cause actual results to differ materially from expectations[99](index=99&type=chunk) - Key risk factors include lack of operating history, significant expected operating losses, need for additional capital, dependence on product candidates in clinical development, ability to acquire raw materials, manufacturing capabilities, regulatory approvals, and intellectual property protection[100](index=100&type=chunk)[101](index=101&type=chunk) [Overview](index=24&type=section&id=Overview) - Dermata Therapeutics is a late-stage medical dermatology company developing XYNGARI™ and DMT410, both utilizing proprietary Spongilla technology for various skin conditions[103](index=103&type=chunk)[105](index=105&type=chunk) - XYNGARI™ Phase 3 STAR-1 trial for acne met all co-primary endpoints, showing statistically significant reductions in inflammatory and noninflammatory lesions and improvement in IGA at week 12[108](index=108&type=chunk) - DMT410, designed for topical delivery of botulinum toxin, demonstrated **80%** reduction in gravimetric sweat production in a Phase 1 hyperhidrosis trial, and a Phase 2a clinical trial with Revance for primary axillary hyperhidrosis is anticipated[110](index=110&type=chunk)[111](index=111&type=chunk) - The company has a limited operating history, no product revenue, and incurred net losses of **$4.0 million** for the six months ended June 30, 2025, with an accumulated deficit of **$69.7 million**[112](index=112&type=chunk)[113](index=113&type=chunk) [Recent Developments](index=27&type=section&id=Recent%20Developments) - In January 2025, the company completed a private placement (PIPE) raising approximately **$2.3 million** in net cash proceeds from the sale of common stock and warrants[116](index=116&type=chunk) - In March 2025, the company announced positive topline results for its XYNGARI™ Phase 3 STAR-1 trial, meeting all co-primary endpoints for acne treatment[117](index=117&type=chunk) - A March 2025 warrant inducement generated approximately **$5.7 million** in net proceeds from the exercise of existing warrants at a reduced price in exchange for new warrants[119](index=119&type=chunk) - As of June 30, 2025, the company has no remaining capacity under its At The Market (ATM) Offering Agreement[120](index=120&type=chunk) [Critical Accounting Policies and Use of Estimates](index=28&type=section&id=Critical%20Accounting%20Policies%20and%20Use%20of%20Estimates) - The preparation of financial statements requires management to make estimates and judgments, particularly concerning accrued research and development expenses and the classification of equity instruments like warrants[121](index=121&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) - Warrants are assessed upon issuance for proper classification, and all current warrants are equity-classified, recorded as additional paid-in capital[124](index=124&type=chunk)[125](index=125&type=chunk) [Fluctuations in Operating Results](index=29&type=section&id=Fluctuations%20in%20Operating%20Results) - Operating results have fluctuated significantly in the past and are expected to continue doing so, primarily due to the timing and expenditures related to product candidate development, making period-to-period comparisons unreliable indicators of future performance[126](index=126&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Operating Results (Three Months Ended June 30) | Metric | 2025 | 2024 | Difference | | :-------------------------- | :------------ | :------------ | :------------ | | Research and development | $617,835 | $2,009,102 | $(1,391,267) | | General and administrative | $1,154,896 | $874,640 | $280,256 | | Total operating expenses | $1,772,731 | $2,883,742 | $(1,111,011) | | Net loss | $(1,701,093) | $(2,829,106) | $1,128,013 | - Research and development expenses decreased by **$1.4 million** for the three months ended June 30, 2025, primarily due to decreased clinical expenses from the completed XYNGARI™ STAR-1 acne study[128](index=128&type=chunk) Operating Results (Six Months Ended June 30) | Metric | 2025 | 2024 | Difference | | :-------------------------- | :------------ | :------------ | :------------ | | Research and development | $1,898,976 | $3,609,843 | $(1,710,867) | | General and administrative | $2,213,559 | $2,477,459 | $(263,900) | | Total operating expenses | $4,112,535 | $6,087,302 | $(1,974,767) | | Net loss | $(4,004,680) | $(5,963,368) | $1,958,688 | - General and administrative expenses decreased by **$0.3 million** for the six months ended June 30, 2025, mainly due to decreased stock-based compensation from the cancellation of out-of-the-money stock options in Q1 2024[133](index=133&type=chunk) [Cash Flows](index=30&type=section&id=Cash%20Flows) Cash Flow Summary (Six Months Ended June 30) | Activity | 2025 | 2024 | | :-------------------------------- | :------------ | :------------ | | Net cash used in operating activities | $(4,624,547) | $(4,830,407) | | Net cash provided by financing activities | $7,943,907 | $2,339,372 | | Net increase (decrease) in cash and cash equivalents | $3,319,360 | $(2,491,035) | | Cash and cash equivalents at end of period | $6,480,930 | $4,947,100 | - Cash provided by financing activities significantly increased to **$7.9 million** in 2025 from **$2.3 million** in 2024, primarily driven by the January 2025 PIPE financing (**$2.2 million** net proceeds) and the March 2025 Inducement financing (**$5.7 million** net proceeds)[138](index=138&type=chunk)[139](index=139&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had **$6.5 million** in cash and cash equivalents and an accumulated deficit of **$69.7 million**, with existing cash expected to fund operations into the second quarter of 2026[140](index=140&type=chunk) - The company anticipates continued net losses and will require additional capital to complete Phase 3 studies for XYNGARI™, continue development of other candidates, and pursue new acquisitions or licenses, raising substantial doubt about its ability to continue as a going concern[140](index=140&type=chunk)[142](index=142&type=chunk)[145](index=145&type=chunk) - Future funding requirements are highly dependent on the scope and success of drug candidate development, regulatory approvals, manufacturing costs, and the ability to establish strategic collaborations[147](index=147&type=chunk)[149](index=149&type=chunk) [Item 3: Quantitative and Qualitative Disclosures about Market Risk](index=33&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that there are no quantitative and qualitative disclosures about market risk applicable to the company for the reported period [Item 4: Controls and Procedures](index=33&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the period - The company's disclosure controls and procedures were evaluated as effective at the reasonable assurance level as of June 30, 2025[154](index=154&type=chunk) - There were no material changes in internal control over financial reporting during the period[155](index=155&type=chunk) [Part II Other Information](index=34&type=section&id=Part%20II%20Other%20Information) [Item 1: Legal Proceedings](index=34&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is not a party to any legal proceedings, nor is it aware of any threatened legal proceedings, that are expected to have a material adverse effect on its financial condition, results of operations, or liquidity [Item 1A: Risk Factors](index=34&type=section&id=Item%201A%3A%20Risk%20Factors) This section refers to the risk factors detailed in the company's Annual Report on Form 10-K for the year ended December 31, 2024, and states that no material changes to these risk factors have occurred during the six months ended June 30, 2025 [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities or use of proceeds during the period [Item 3: Defaults Upon Senior Securities](index=34&type=section&id=Item%203%3A%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities during the period [Item 4: Mine Safety Disclosures](index=34&type=section&id=Item%204%3A%20Mine%20Safety%20Disclosures) This item is not applicable to the company [Item 5: Other Information](index=34&type=section&id=Item%205%3A%20Other%20Information) The company reported that no director or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the fiscal quarter ended June 30, 2025 [Item 6: Exhibits](index=35&type=section&id=Item%206%3A%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including the Certificate of Amendment to the Amended and Restated Certificate of Incorporation, officer certifications, and XBRL documents [Signatures](index=36&type=section&id=Signatures) The report is duly signed on behalf of Dermata Therapeutics, Inc. by Gerald T. Proehl, President and Chief Executive Officer, and Kyri K. Van Hoose, Senior Vice President, Chief Financial Officer

[Executive Summary](index=1&type=section&id=Executive%20Summary) Dermata Therapeutics, a late-stage biotechnology company, announced additional positive data from its XYNGARI™ Phase 3 STAR-1 clinical trial for acne and reported raising $8.8 million in gross proceeds during the first half of 2025 [Company Introduction & Key Announcements](index=1&type=section&id=Company%20Introduction%20%26%20Key%20Announcements) Dermata Therapeutics, a late-stage biotechnology company, announced additional positive data from its XYNGARI™ Phase 3 STAR-1 clinical trial for acne and reported raising $8.8 million in gross proceeds during the first half of 2025 - Dermata Therapeutics is a late-stage biotechnology company focused on the treatment of medical skin diseases and aesthetic applications[1](index=1&type=chunk) - Announced additional positive data from its XYNGARI™ Phase 3 STAR-1 clinical trial, showing **statistically significant results** for its three co-primary endpoints at weeks 4 and 12[1](index=1&type=chunk)[2](index=2&type=chunk) - Raised **$8.8 million** in gross proceeds from a private placement and warrant inducement financings during the first half of 2025[1](index=1&type=chunk)[5](index=5&type=chunk) [Corporate Highlights & Milestones](index=1&type=section&id=Corporate%20Highlights) Dermata reported positive Phase 3 STAR-1 trial data for acne, is planning STAR-2, and secured $8.8 million in financing to extend operations into Q2 2026 [Clinical Trial Progress](index=1&type=section&id=Clinical%20Trial%20Progress) Dermata reported positive topline data from its XYNGARI™ Phase 3 STAR-1 trial for moderate-to-severe acne, meeting all primary endpoints. The company is evaluating next steps for the STAR-2 trial and collaborating with Revance on a Phase 2a study for DMT410 - XYNGARI™ Phase 3 STAR-1 trial for moderate-to-severe acne met all three primary endpoints with **highly statistically significant results** versus placebo at the end of the study and achieved statistically significant separation from placebo after just 4 weeks[2](index=2&type=chunk)[5](index=5&type=chunk) - The Company initiated additional manufacturing and is evaluating next steps for the XYNGARI™ Phase 3 STAR-2 clinical trial, which would be followed by a 9-month extension study[4](index=4&type=chunk) - Collaboration with Revance continues on the final study design and start-up procedures for the Phase 2a clinical study of XYNGARI™ with DAXXIFY® (DMT410) for the topical treatment of axillary hyperhidrosis[6](index=6&type=chunk) [Financing Activities & Liquidity Outlook](index=1&type=section&id=Financing%20Activities%20%26%20Liquidity%20Outlook) Dermata raised $8.8 million in gross proceeds during the first half of 2025, which is expected to fund operations into the second quarter of 2026 - Raised **$8.8 million** in gross proceeds during the first half of 2025[5](index=5&type=chunk) - The funds raised are expected to fund operations into the **second quarter of 2026**[5](index=5&type=chunk)[7](index=7&type=chunk) [Second Quarter 2025 Financial Results](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results) Dermata's cash increased to $6.5 million, driven by financing, while operating expenses decreased due to lower R&D, resulting in a reduced net loss [Cash Position](index=2&type=section&id=Cash%20Position) As of June 30, 2025, Dermata's cash and cash equivalents increased to $6.5 million, up from $3.2 million at December 31, 2024, primarily due to net financing proceeds offsetting operational cash usage Cash and Cash Equivalents | Metric | June 30, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | Change | | :----- | :------------------------------- | :----------------------------------- | :----- | | Cash and cash equivalents | $6,481 | $3,162 | +$3,319 | - The **$3.3 million increase** in cash and cash equivalents for the six months ended June 30, 2025, resulted from approximately **$7.9 million** of net financing proceeds offset by **$4.6 million** of cash used in operations[7](index=7&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Research and development expenses decreased significantly due to the completion of the STAR-1 study, while general and administrative expenses increased due to public company compliance and personnel costs Operating Expenses Summary | Expense Category | Q2 2025 (in thousands USD) | Q2 2024 (in thousands USD) | Change (YoY) | | :--------------- | :------------------------- | :------------------------- | :----------- | | Research and development | $618 | $2,009 | -$1,391 | | General and administrative | $1,155 | $875 | +$280 | | Total operating expenses | $1,773 | $2,884 | -$1,111 | - The **$1.4 million decrease** in research and development expenses was primarily the result of **$1.6 million** of decreased clinical expenses from the XYNGARI™ STAR-1 acne study, partially offset by **$0.1 million** of increased chemistry, manufacturing, and controls (CMC) expenses and **$0.1 million** of increased personnel costs[8](index=8&type=chunk) - The **$0.3 million increase** in general and administrative expenses resulted from **$0.2 million** of increased public company compliance costs as well as **$0.1 million** of increased personnel costs[9](index=9&type=chunk) [Net Loss and EPS](index=3&type=section&id=Net%20Loss%20and%20EPS) Dermata reported a reduced net loss for Q2 2025 compared to Q2 2024, with a significantly lower net loss per common share due to a substantial increase in weighted average common shares outstanding Net Loss and EPS Summary | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Net loss (in thousands USD) | $(1,701) | $(2,829) | +$1,128 | | Net loss per common share, basic and diluted | $(1.66) | $(41.82) | +$40.16 | | Weighted average common shares outstanding, basic and diluted | 1,026,506 | 67,654 | +958,852 | [About Dermata Therapeutics](index=2&type=section&id=About%20Dermata%20Therapeutics) Dermata Therapeutics is a late-stage biotechnology company leveraging its Spongilla technology platform for lead product candidate XYNGARI™ and second candidate DMT410 [Company Profile and Product Candidates](index=2&type=section&id=Company%20Profile%20and%20Product%20Candidates) Dermata Therapeutics is a late-stage biotechnology company focused on medical skin diseases and aesthetic applications, leveraging its Spongilla technology platform for lead product candidate XYNGARI™ and second candidate DMT410 - Dermata Therapeutics is a late-stage biotechnology company focusing on the treatment of medical skin diseases and aesthetic applications[10](index=10&type=chunk) - The Company's lead product candidate, XYNGARI™, developed from its Spongilla technology platform, is a once-weekly, topical product candidate derived from a naturally sourced freshwater sponge, and has achieved **positive data** in its first Phase 3 clinical trial for acne, also studied for psoriasis and rosacea[10](index=10&type=chunk) - The Company's second product candidate, DMT410, uses its XYNGARI™ product candidate as a new method for needle-free intradermal delivery of botulinum toxin for the treatment of multiple aesthetic applications and medical skin diseases like hyperhidrosis, acne, and rosacea[10](index=10&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section contains cautionary statements regarding future events, clinical trials, regulatory approvals, financial performance, and product development, emphasizing that actual results may differ materially from projections due to inherent risks and uncertainties in drug development - Statements in this press release that are not strictly historical in nature are forward-looking statements, based on the Company's current beliefs and expectations, and are subject to known and unknown risks, uncertainties, assumptions, and other factors[11](index=11&type=chunk) - Risks include uncertainties inherent in clinical trials (e.g., patient enrollment, completion schedule), timing and ability to initiate clinical trials and generate data, expectations regarding clinical data nature, potential partnership opportunities, sufficiency of cash to fund operations, and the success, cost, and timing of product candidate development activities for XYNGARI™ and DMT410[11](index=11&type=chunk) - Actual events or results may differ materially from those projected due to various factors, including risks and uncertainties inherent in drug development, approval, and commercialization, and the fact that past results of clinical trials may not be indicative of future trial results[11](index=11&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) The financial statements present Dermata's balance sheet showing increased assets and equity, and statements of operations reflecting a reduced net loss for Q2 2025 [Balance Sheets](index=3&type=section&id=Balance%20Sheets) The balance sheet shows a significant increase in total assets and equity as of June 30, 2025, primarily driven by an increase in cash and cash equivalents, while total liabilities decreased Consolidated Balance Sheets | Metric (in thousands USD) | June 30, 2025 | December 31, 2024 | Change | | :------------------------ | :------------ | :---------------- | :----- | | Cash and cash equivalents | $6,481 | $3,162 | +$3,319 | | Prepaid expenses and other current assets | $160 | $372 | -$212 | | **Total assets** | **$6,641** | **$3,534** | **+$3,107** | | Accounts payable | $414 | $808 | -$394 | | Accrued liabilities | $612 | $1,165 | -$553 | | **Total liabilities** | **$1,026** | **$1,973** | **-$947** | | **Equity** | **$5,614** | **$1,561** | **+$4,053** | | **Total liabilities and equity** | **$6,640** | **$3,534** | **+$3,106** | [Statements of Operations](index=3&type=section&id=Statements%20of%20Operations) For Q2 2025, Dermata reported a reduced net loss compared to the prior year, driven by lower R&D expenses, despite an increase in G&A. The net loss per share significantly decreased due to a substantial increase in outstanding shares Consolidated Statements of Operations | Metric (in thousands USD) | Quarter Ended June 30, 2025 | Quarter Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Research and development | $618 | $2,009 | $1,899 | $3,610 | | General and administrative | $1,155 | $875 | $2,214 | $2,477 | | Total operating expenses | $1,773 | $2,884 | $4,113 | $6,087 | | Loss from operations | $(1,773) | $(2,884) | $(4,113) | $(6,087) | | Interest income, net | $72 | $55 | $108 | $124 | | **Net loss** | **$(1,701)** | **$(2,829)** | **$(4,005)** | **$(5,963)** | | Net loss per common share, basic and diluted | $(1.66) | $(41.82) | $(5.18) | $(106.44) | | Weighted average common shares outstanding, basic and diluted | 1,026,506 | 67,654 | 772,397 | 56,025 | Stock-based Compensation Expense | Stock-based Compensation Expense (in thousands USD) | Quarter Ended June 30, 2025 | Quarter Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Research and development | $8 | $5 | $16 | $242 | | General and administrative | $31 | $15 | $61 | $365 |

[Filing Information](index=1&type=section&id=Filing%20Information) This section details the registrant's identification, securities listing, and emerging growth company status [Registrant Details](index=1&type=section&id=Registrant%20Details) This section provides Dermata Therapeutics, Inc.'s core identification details, including incorporation state, address, and contact information - Registrant: **Dermata Therapeutics, Inc.**[2](index=2&type=chunk) - Jurisdiction of Incorporation: **Delaware**[2](index=2&type=chunk) - Principal Executive Offices: **3525 Del Mar Heights Rd., 322, San Diego, CA 92130**[2](index=2&type=chunk) [Securities Information](index=1&type=section&id=Securities%20Information) The company's common stock and warrants are registered on The Nasdaq Capital Market, indicating their public trading status Securities Listing | Title of Each Class: | Trading Symbol | Name of Each Exchange on which Registered | | :--- | :--- | :--- | | Common Stock, par value $0.0001 per share | DRMA | The Nasdaq Capital Market | | Warrants, exercisable for one share of Common Stock | DRMAW | The Nasdaq Capital Market | [Emerging Growth Company Status](index=1&type=section&id=Emerging%20Growth%20Company%20Status) Dermata Therapeutics, Inc. identifies as an emerging growth company and has elected not to use the extended transition period for new or revised financial accounting standards - The registrant is an emerging growth company[4](index=4&type=chunk) - The registrant has elected not to use the extended transition period for complying with new or revised financial accounting standards[4](index=4&type=chunk) [Item 2.02. Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02.%20Results%20of%20Operations%20and%20Financial%20Condition) Dermata Therapeutics, Inc. disclosed Q1 2025 financial results via a May 14, 2025 press release, furnished but not filed, and exempt from Section 18 liabilities - On May 14, 2025, Dermata Therapeutics, Inc. issued a press release disclosing certain information regarding its results of operations for the quarter ended March 31, 2025[5](index=5&type=chunk) - A copy of the press release is furnished under Item 2.02 as Exhibit 99.1[5](index=5&type=chunk) - The information included in this Item 2.02 and Exhibit 99.1 shall not be deemed 'filed' for the purposes of or otherwise subject to the liabilities under Section 18 of the Securities Exchange Act of 1934[6](index=6&type=chunk) [Item 7.01. Regulation FD Disclosure](index=2&type=section&id=Item%207.01.%20Regulation%20FD%20Disclosure) This item cross-references Item 2.02, indicating that the information disclosed under Item 2.02 also satisfies the requirements for Regulation FD disclosure - This item refers to 'Item 2.02 Results of Operations and Financial Condition' above[7](index=7&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits accompanying the Form 8-K filing, which include the press release detailing Q1 2025 financial results and the interactive data file for the cover page Exhibits | Exhibit No. | Description | | :--- | :--- | | 99.1 | Press Release, dated May 14, 2025, issued by Dermata Therapeutics, Inc. entitled "Dermata Therapeutics Provides Corporate Update and Reports First Quarter 2025 Financial Results." | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | [Signature](index=3&type=section&id=Signature) The report is duly signed on behalf of Dermata Therapeutics, Inc. by Gerald T. Proehl, its Chief Executive Officer, on May 14, 2025, affirming compliance with the Securities Exchange Act of 1934 - The report was signed by Gerald T. Proehl, Chief Executive Officer of DERMATA THERAPEUTICS, INC.[12](index=12&type=chunk) - The report was dated May 14, 2025[12](index=12&type=chunk)

Part I: Financial Information This section presents the company's unaudited financial statements, management's discussion, market risk, and internal controls for the quarter [Item 1: Financial Statements (unaudited)](index=3&type=section&id=Item%201%3A%20Financial%20Statements%20(unaudited)) This section presents Dermata Therapeutics' unaudited Q1 2025 financial statements, detailing financial position, performance, and cash flows, highlighting equity financing and reduced net loss [Balance Sheets](index=4&type=section&id=Balance%20Sheets) This section provides a snapshot of the company's assets, liabilities, and stockholders' equity as of March 31, 2025, and December 31, 2024 | Metric | March 31, 2025 | December 31, 2024 | | :---------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $9,719,268 | $3,161,570 | | Prepaid expenses and other current assets | $285,739 | $372,318 | | **Total assets** | **$10,005,007** | **$3,533,888** | | Accounts payable | $1,395,313 | $808,011 | | Accrued and other current liabilities | $1,308,472 | $1,164,783 | | **Total liabilities** | **$2,703,785** | **$1,972,794** | | Common Stock | $603 | $252 | | Additional paid-in capital | $75,279,545 | $67,236,181 | | Accumulated deficit | $(67,978,926) | $(65,675,339) | | **Total stockholders' equity** | **$7,301,222** | **$1,561,094** | | **Total liabilities and stockholders' equity** | **$10,005,007** | **$3,533,888** | - Total assets increased significantly to **$10.0 million** as of March 31, 2025, from **$3.5 million** at December 31, 2024, primarily driven by an increase in cash and cash equivalents[12](index=12&type=chunk) - Total stockholders' equity rose to **$7.3 million** as of March 31, 2025, from **$1.6 million** at December 31, 2024, largely due to increased additional paid-in capital from equity issuances[12](index=12&type=chunk) [Statements of Operations](index=5&type=section&id=Statements%20of%20Operations) This section details the company's revenues, expenses, and net loss for the three months ended March 31, 2025, and 2024 | Operating Expenses/Income | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------- | :---------------------------------- | :---------------------------------- | | Research and development | $1,281,141 | $1,600,741 | | General and administrative | $1,058,662 | $1,602,819 | | **Total operating expenses** | **$2,339,803** | **$3,203,560** | | Loss from operations | $(2,339,803) | $(3,203,560) | | Interest income | $36,216 | $69,298 | | **Net loss** | **$(2,303,587)** | **$(3,134,262)** | | Net loss per share, basic and diluted | $(0.45) | $(7.06) | | Weighted-average basic and diluted Common Stock | 5,154,698 | 443,998 | - Net loss decreased to **$(2.3) million** for the three months ended March 31, 2025, from **$(3.1) million** in the prior year period, primarily due to lower operating expenses[15](index=15&type=chunk) - Total operating expenses decreased by **$863,757**, from **$3.2 million** in Q1 2024 to **$2.3 million** in Q1 2025[15](index=15&type=chunk) [Statements of Stockholders' Equity](index=6&type=section&id=Statements%20of%20Stockholders'%20Equity) This section outlines changes in stockholders' equity, including stock-based compensation and equity issuances, for Q1 2025 | Change in Equity | Three Months Ended March 31, 2025 | | :-------------------------------------------------- | :-------------------------------- | | Balance at December 31, 2024 | $1,561,094 | | Stock-based compensation | $37,189 | | Issuance of Common Stock and warrants from January 2025 PIPE, net | $2,254,721 | | Issuance of Common Stock upon exercise of pre-funded warrants | $977 | | Issuance of Common Stock and warrants from March 2025 Warrant Inducement, net | $5,750,828 | | Net loss | $(2,303,587) | | **Balance at March 31, 2025** | **$7,301,222** | - Total stockholders' equity increased from **$1,561,094** at December 31, 2024, to **$7,301,222** at March 31, 2025, largely driven by proceeds from equity and warrant issuances[17](index=17&type=chunk) - Additional paid-in capital saw significant increases from the January 2025 PIPE (**$2,254,528**) and March 2025 Warrant Inducement (**$5,750,768**)[17](index=17&type=chunk) [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) This section presents the company's cash inflows and outflows from operating, investing, and financing activities for Q1 2025 and 2024 | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :---------------------------------- | :---------------------------------- | | Net cash used in operating activities | $(1,934,066) | $(2,704,454) | | Net cash provided by financing activities | $8,491,764 | $- | | Net increase (decrease) in Cash and cash equivalents | $6,557,698 | $(2,704,454) | | Cash and cash equivalents at beginning of period | $3,161,570 | $7,438,135 | | **Cash and cash equivalents at end of period** | **$9,719,268** | **$4,733,681** | - Net cash provided by financing activities was **$8.5 million** in Q1 2025, a substantial increase from **$0** in Q1 2024, primarily from equity and warrant issuances[23](index=23&type=chunk) - Cash used in operating activities decreased to **$(1.9) million** in Q1 2025 from **$(2.7) million** in Q1 2024[23](index=23&type=chunk) [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Financial%20Statements) This section provides detailed explanations and additional information supporting the unaudited financial statements - The company is a **clinical-stage biotechnology company** focused on medical and aesthetic skin conditions and diseases[26](index=26&type=chunk) - **Substantial doubt** exists about the company's ability to continue as a going concern due to an accumulated deficit and expected future losses, with cash expected to fund operations only into Q1 2026[28](index=28&type=chunk)[30](index=30&type=chunk) - **Significant equity financing activities** occurred in Q1 2025, including a January 2025 PIPE and a March 2025 Warrant Inducement, generating substantial net proceeds[54](index=54&type=chunk)[56](index=56&type=chunk)[65](index=65&type=chunk) - **Positive topline results** for the XYNGARI™ Phase 3 STAR-1 clinical trial were announced in Q1 2025, meeting all co-primary endpoints[80](index=80&type=chunk)[112](index=112&type=chunk) [Note 1: Organization and Basis of Presentation](index=9&type=section&id=Note%201%3A%20Organization%20and%20Basis%20of%20Presentation) This note describes the company's business, reverse stock split, and going concern considerations - Dermata Therapeutics, Inc. is a clinical-stage biotechnology company focused on treating medical and aesthetic skin conditions and diseases[26](index=26&type=chunk) - The company effected a **1-for-15 reverse stock split** on May 16, 2024, with all share and per share amounts retroactively adjusted[27](index=27&type=chunk) - As of March 31, 2025, the company had **$9.7 million** in cash and cash equivalents and an accumulated deficit of **$68.0 million**, raising substantial doubt about its ability to continue as a going concern beyond Q1 2026[28](index=28&type=chunk) - Management plans to raise additional capital through equity or debt offerings, or product development/licensing transactions, but cannot assure availability on favorable terms[30](index=30&type=chunk) [Note 2: Summary of Significant Accounting Policies](index=10&type=section&id=Note%202%3A%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and policies applied in preparing the financial statements - The company operates as a single operating segment focused on developing and commercializing pharmaceuticals for skin conditions[33](index=33&type=chunk) - Research and development costs, including upfront and milestone payments for licensed technology, are expensed as incurred[39](index=39&type=chunk) - All issued and modified warrants are classified as **equity instruments**[45](index=45&type=chunk) | Potentially Dilutive Securities | As of March 31, 2025 | As of March 31, 2024 | | :------------------------------ | :------------------- | :------------------- | | Common Stock options | 204,841 | 27,341 | | Common Stock warrants | 12,389,769 | 557,246 | | **Total potentially dilutive securities** | **12,594,610** | **584,587** | - The company is evaluating the impact of recent accounting pronouncements ASU 2023-09 (Income Taxes) and ASU 2024-03 (Disaggregation of Income Statement Expenses)[50](index=50&type=chunk)[51](index=51&type=chunk) [Note 3: Balance Sheet Details](index=13&type=section&id=Note%203%3A%20Balance%20Sheet%20Details) This note provides disaggregated information for prepaid expenses and accrued liabilities on the balance sheet | Account | March 31, 2025 | December 31, 2024 | | :---------------------------------- | :------------- | :---------------- | | **Prepaid expenses and other current assets:** | | | | Prepaid insurance | $208,228 | $349,824 | | Prepaid research and development costs | $2,000 | $12,600 | | Prepaid other and other current assets | $75,511 | $9,894 | | **Total prepaid expenses and other current assets** | **$285,739** | **$372,318** | | **Accrued and other current liabilities:** | | | | Accrued research and development costs | $158,353 | $295,392 | | Accrued compensation and benefits | $961,759 | $731,632 | | Accrued other | $188,360 | $137,759 | | **Total accrued and other current liabilities** | **$1,308,472** | **$1,164,783** | - Total prepaid expenses and other current assets decreased to **$285,739** as of March 31, 2025, from **$372,318** at December 31, 2024[52](index=52&type=chunk) - Total accrued and other current liabilities increased to **$1,308,472** as of March 31, 2025, from **$1,164,783** at December 31, 2024, mainly due to higher accrued compensation and benefits[52](index=52&type=chunk) [Note 4: Equity Securities](index=13&type=section&id=Note%204%3A%20Equity%20Securities) This note details the company's common stock, preferred stock, warrants, and equity incentive plan activities | Description | Authorized | Issued | Outstanding | | :---------------------------------- | :----------- | :------- | :---------- | | Common Stock, par value $0.0001 | 250,000,000 | 6,032,648 | 6,032,648 | | Preferred Stock | 10,000,000 | - | - | | Warrants | - | 12,389,769 | 12,389,769 | | 2021 Omnibus Equity Incentive Plan | - | 205,755 | 204,841 | | **Total equity securities** | **260,000,000** | **18,628,172** | **18,627,258** | - The company completed a March 2025 Inducement Letter agreement, where a holder exercised **4,834,470** existing warrants at a reduced price of **$1.284 per share**, generating approximately **$5.8 million** in net proceeds and resulting in the issuance of **4,980,806** new Series A Warrants and **4,688,134** new Series B Warrants[54](index=54&type=chunk)[65](index=65&type=chunk) - In January 2025, the company closed a private placement (PIPE) selling **1,935,412** shares of Common Stock, pre-funded warrants, and **2,007,880** warrants, yielding approximately **$2.3 million** in net cash proceeds[56](index=56&type=chunk) | Warrant Description | Quantity Outstanding (March 31, 2025) (warrants) | Exercise Price ($) | | :------------------------------------------ | :------------------------------------ | :------------- | | Pre-IPO Series 1a Warrants | 279 | $4,920.00 | | IPO Warrants | 12,320 | $1,680.00 | | IPO Underwriter Warrants | 535 | $1,932.00 | | March 2023 Offering Placement Agent Warrants | 7,549 | $57.94 | | May 2023 PIPE Placement Agent Warrants | 3,736 | $42.84 | | November 2023 Placement Agent Warrants | 16,202 | $12.21 | | May 2024 Series A Common Warrants | 23,340 | $4.91 | | May 2024 Series B Common Warrants | - | $4.91 | | May 2024 Placement Agent Warrants | 36,144 | $6.45 | | September 2024 PIPE Series A Common Warrants | - | $1.58 | | September 2024 PIPE Series B Common Warrants | - | $1.58 | | September 2024 PIPE Placement Agent Warrants | 133,880 | $2.29 | | January 2025 PIPE Warrants | 2,007,880 | $1.27 | | January 2025 PIPE Placement Agent Warrants | 140,552 | $1.59 | | March 2025 Warrant Inducement Series A Warrants | 4,980,806 | $1.284 | | March 2025 Warrant Inducement Series B Warrants | 4,688,134 | $1.284 | | March 2025 Warrant Inducement Placement Agent Warrants | 338,412 | $1.605 | | **Total warrants outstanding** | **12,389,769** | | [Note 5: Equity Incentive Plan](index=16&type=section&id=Note%205%3A%20Equity%20Incentive%20Plan) This note describes the company's stock option activity and stock-based compensation expense - The 2021 Omnibus Equity Incentive Plan was amended to increase authorized shares and implement a **5% evergreen provision**, resulting in an additional **125,888 shares** issuable as of January 1, 2025[67](index=67&type=chunk) | Stock-based Compensation Expense | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------- | :---------------------------------- | :---------------------------------- | | Research and development | $7,620 | $237,337 | | General and administrative | $29,569 | $349,897 | | **Total** | **$37,189** | **$587,234** | | Stock Option Activity | Number of Options Outstanding (March 31, 2025) (options) | Weighted Average Exercise Price ($) | | :-------------------- | :--------------------------------------------- | :------------------------------ | | Balance at December 31, 2024 | 52,341 | $6.03 | | Options granted | 152,500 | $1.38 | | **Balance at March 31, 2025** | **204,841** | **$2.57** | | Options exercisable at March 31, 2025 | 29,629 | $5.24 | - Total unrecognized compensation cost related to stock options was approximately **$0.3 million** as of March 31, 2025, expected to be recognized over **2.6 years**[79](index=79&type=chunk) [Note 6: Commitments and Contingencies](index=18&type=section&id=Note%206%3A%20Commitments%20and%20Contingencies) This note outlines the company's contractual obligations, clinical trial agreements, and potential milestone payments - The XYNGARI™ Phase 3 STAR-1 clinical trial has a total contract amount of approximately **$7.2 million**, with **$0.7 million** recognized as R&D expense in Q1 2025[80](index=80&type=chunk) - The company has an exclusive supply agreement for Spongilla raw material with a Russian entity, which could be negatively impacted by sanctions[81](index=81&type=chunk) - License agreement with Villani, Inc. includes future milestone payments up to **$40.5 million** and **single-digit royalties**, but no accrual is required as of March 31, 2025, as the likelihood of achievement is not yet probable[82](index=82&type=chunk) - A Clinical Trial Collaboration Agreement was entered into with Revance Therapeutics, Inc. on January 17, 2025, to conduct a Phase 2a clinical trial evaluating XYNGARI™ with Daxxify for primary axillary hyperhidrosis[83](index=83&type=chunk) [Note 7: Segment Information](index=20&type=section&id=Note%207%3A%20Segment%20Information) This note confirms the company operates as a single segment focused on developing pharmaceutical products for skin conditions - The company operates as a single operating segment, focused on identifying, developing, and commercializing pharmaceutical products for skin conditions[87](index=87&type=chunk) - The CEO, as the chief operating decision maker, manages and allocates resources on an entity-wide basis, using net loss as the measure of segment profit or loss[88](index=88&type=chunk) | Segment Expense | Quarters Ended March 31, 2025 | Quarters Ended March 31, 2024 | | :---------------------- | :---------------------------- | :---------------------------- | | Research and development | $1,281,141 | $1,600,741 | | General and administrative | $1,058,662 | $1,602,819 | | Interest income | $36,216 | $69,298 | | Net loss | $(2,303,587) | $(3,134,262) | [Note 8: Related Party Transaction](index=21&type=section&id=Note%208%3A%20Related%20Party%20Transaction) This note discloses the participation of company insiders in the January 2025 PIPE financing - Company insiders, including the CEO, CFO, and board members, participated in the January 2025 PIPE financing, purchasing **1,220,476 shares** of Common Stock and warrants for an aggregate of **$1.55 million**[90](index=90&type=chunk) - The purchase price and accompanying warrant terms for insiders were identical to those paid by other investors in the January 2025 PIPE[90](index=90&type=chunk) [Note 9: Subsequent Events](index=21&type=section&id=Note%209%3A%20Subsequent%20Events) This note reports events occurring after March 31, 2025, including share delivery and a Nasdaq non-compliance notification - Subsequent to March 31, 2025, **345,470 abeyance shares** related to the March 2025 Warrant Inducement were delivered to the holder, leaving **3,887,000 shares** still in abeyance[91](index=91&type=chunk) - On March 25, 2025, the company received a Nasdaq notification for non-compliance with the **minimum stockholders' equity requirement (Rule 5550(b)(1))**, with a deadline of **May 9, 2025**, to regain compliance or submit a plan[92](index=92&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202%3A%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition, operations, and liquidity for Q1 2025, covering business overview, recent developments, and future funding needs - The company is a **late-stage medical dermatology company** developing XYNGARI™ and DMT410, both utilizing proprietary Spongilla technology[99](index=99&type=chunk)[101](index=101&type=chunk) - XYNGARI™ Phase 3 STAR-1 trial met all **co-primary endpoints**, showing statistically significant improvements in acne treatment[104](index=104&type=chunk)[112](index=112&type=chunk) - The company has not generated revenue and incurred **significant operating losses**, with an accumulated deficit of **$68.0 million** as of March 31, 2025[108](index=108&type=chunk)[109](index=109&type=chunk) - **Additional financing is required** to support operations and complete clinical development, with existing cash expected to fund operations only into Q1 2026[110](index=110&type=chunk)[131](index=131&type=chunk)[135](index=135&type=chunk) [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=22&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This note advises that the report contains forward-looking statements subject to risks and uncertainties, with no obligation to update - The report contains forward-looking statements that involve known and unknown risks, uncertainties, and other factors beyond the company's control[95](index=95&type=chunk) - Key risk factors include lack of operating history, expectation of significant operating losses, need for additional capital, dependence on product candidates in clinical development, and ability to obtain regulatory approvals[96](index=96&type=chunk)[102](index=102&type=chunk) - The company expressly disclaims any obligation to update, revise, or correct any forward-looking statements[98](index=98&type=chunk) [Overview](index=23&type=section&id=Overview) This section provides a general business description, product pipeline, and financial outlook, including accumulated deficit and funding needs - Dermata Therapeutics is a **late-stage medical dermatology company** developing XYNGARI™ and DMT410, both based on proprietary Spongilla technology for topical treatment of skin conditions[99](index=99&type=chunk)[101](index=101&type=chunk) - XYNGARI™ Phase 3 STAR-1 trial for acne met all **co-primary endpoints**, demonstrating rapid and sustained therapeutic effects in reducing inflammatory and noninflammatory lesions and improving investigator's global assessment (IGA)[104](index=104&type=chunk) - DMT410 aims for topical delivery of botulinum toxin, with a Phase 1 POC trial showing **80% of hyperhidrosis patients** achieving **>50% sweat reduction**[106](index=106&type=chunk) - The company has an accumulated deficit of **$68.0 million** as of March 31, 2025, and expects to incur significant operating losses for the foreseeable future, requiring additional financing[109](index=109&type=chunk)[110](index=110&type=chunk) [Recent Developments](index=26&type=section&id=Recent%20Developments) This section highlights key events, including recent financing activities and positive clinical trial results for XYNGARI™ - On January 21, 2025, the company closed a private placement (PIPE) generating approximately **$2.3 million** in net cash proceeds from the sale of common stock and warrants[111](index=111&type=chunk) - On March 27, 2025, positive topline results were announced for the XYNGARI™ Phase 3 STAR-1 trial, meeting all **co-primary endpoints** with high statistical significance[112](index=112&type=chunk) - Also on March 27, 2025, a warrant inducement agreement generated approximately **$5.8 million** in net proceeds from the exercise of existing warrants at a reduced price, leading to the issuance of new Series A and B warrants[113](index=113&type=chunk) - No shares were sold under the At The Market (ATM) Agreement during Q1 2025, and no remaining capacity exists[116](index=116&type=chunk) [Critical Accounting Policies and Use of Estimates](index=28&type=section&id=Critical%20Accounting%20Policies%20and%20Use%20of%20Estimates) This section discusses management's judgments and estimates in financial reporting, particularly for R&D expenses and warrant classification - The preparation of financial statements requires management to make estimates and judgments, particularly concerning accrued research and development expenses[117](index=117&type=chunk) - Research and development expense estimates are based on the estimated progress towards completion of projects, patient enrollment, and milestones achieved by third-party service providers[119](index=119&type=chunk) - Warrants are assessed for proper classification (equity vs. liability) upon issuance; all company warrants are equity-classified[120](index=120&type=chunk)[121](index=121&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) This section analyzes the company's operating expenses, interest income, and net loss for Q1 2025 compared to Q1 2024 | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Difference | | :-------------------------- | :---------------------------------- | :---------------------------------- | :--------- | | Research and development | $1,281,141 | $1,600,741 | $(319,600) | | General and administrative | $1,058,662 | $1,602,819 | $(544,157) | | Total operating expenses | $2,339,803 | $3,203,560 | $(863,757) | | Loss from operations | $(2,339,803) | $(3,203,560) | $863,757 | | Interest income | $36,216 | $69,298 | $(33,082) | | **Net loss** | **$(2,303,587)** | **$(3,134,262)** | **$830,675** | - Research and development expenses decreased by **$0.3 million**, primarily due to decreased clinical expenses from the STAR-1 study and reduced stock-based compensation[124](index=124&type=chunk) - General and administrative expenses decreased by **$0.5 million**, mainly due to decreased stock-based compensation and audit fees[125](index=125&type=chunk) [Cash Flows](index=29&type=section&id=Cash%20Flows) This section details cash flows from operating and financing activities for Q1 2025 and Q1 2024 | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :---------------------------------- | :---------------------------------- | | Net cash used in operating activities | $(1,934,066) | $(2,704,454) | | Net cash provided by financing activities | $8,491,764 | $- | | **Net increase (decrease) in Cash and cash equivalents** | **$6,557,698** | **$(2,704,454)** | - Cash provided by financing activities was **$8.5 million** in Q1 2025, resulting from the January 2025 PIPE (**$2.3 million**) and March 2025 Inducement financing (**$6.2 million**)[130](index=130&type=chunk) - Net cash used in operating activities decreased to **$1.9 million** in Q1 2025 from **$2.7 million** in Q1 2024[128](index=128&type=chunk)[129](index=129&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, accumulated deficit, and future capital requirements, noting going concern doubts - As of March 31, 2025, cash and cash equivalents totaled **$9.7 million**, with an accumulated deficit of **$68.0 million**[131](index=131&type=chunk) - Existing cash resources are expected to fund operations only into the **first quarter of 2026**, raising substantial doubt about the company's ability to continue as a going concern[131](index=131&type=chunk)[135](index=135&type=chunk) - The company requires additional capital to complete Phase 3 studies for XYNGARI™ for acne, continue DMT410 development, and pursue in-licenses or acquisitions[135](index=135&type=chunk) - Future funding requirements depend on factors such as the number and characteristics of drug candidates, scope and costs of R&D and clinical trials, regulatory approvals, manufacturing costs, and strategic collaborations[140](index=140&type=chunk) [Contractual Obligations and Commitments](index=31&type=section&id=Contractual%20Obligations%20and%20Commitments) This section addresses the company's material non-cancelable obligations under its various agreements - The company does not have material non-cancelable obligations under its contracts with contract research organizations and other service providers, as these agreements generally provide for termination upon notice[138](index=138&type=chunk) [JOBS Act Accounting Election](index=31&type=section&id=JOBS%20Act%20Accounting%20Election) This section states the company's election not to use the extended transition period for new accounting standards - As an emerging growth company, Dermata Therapeutics has irrevocably elected not to use the extended transition period for complying with new or revised accounting standards[139](index=139&type=chunk) - The company will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies[139](index=139&type=chunk) [Recent Accounting Pronouncements](index=32&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to Note 2 for a discussion of recently issued accounting standards - Refer to Note 2 – Summary of Significant Accounting Policies for a discussion of recent accounting pronouncements, including ASU 2023-09 (Income Taxes) and ASU 2024-03 (Disaggregation of Income Statement Expenses)[141](index=141&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) [Item 3: Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that there are no quantitative and qualitative disclosures about market risk applicable to the company for the reported period - This item is not applicable to the company[142](index=142&type=chunk) [Item 4: Controls and Procedures](index=32&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Disclosure controls and procedures were evaluated as **effective** at the reasonable assurance level as of March 31, 2025[144](index=144&type=chunk) - No material changes in internal control over financial reporting occurred during the period[145](index=145&type=chunk) Part II: Other Information This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Item 1: Legal Proceedings](index=33&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is not involved in any material legal proceedings and is unaware of any threatened actions that would adversely affect its financials - The company is not a party to any material legal proceedings[147](index=147&type=chunk) [Item 1A: Risk Factors](index=33&type=section&id=Item%201A%3A%20Risk%20Factors) This section refers to the Annual Report on Form 10-K for risk factors and confirms no material changes occurred during Q1 2025 - No material changes to the risk factors described in the Annual Report on Form 10-K occurred during the quarter ended March 31, 2025[148](index=148&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports that there were no unregistered sales of equity securities or use of proceeds to disclose for the period - None to report for the period[149](index=149&type=chunk) [Item 3: Defaults Upon Senior Securities](index=33&type=section&id=Item%203%3A%20Defaults%20Upon%20Senior%20Securities) This section indicates that there were no defaults upon senior securities to report for the period - None to report for the period[150](index=150&type=chunk) [Item 4: Mine Safety Disclosures](index=33&type=section&id=Item%204%3A%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the company - This item is not applicable to the company[151](index=151&type=chunk) [Item 5: Other Information](index=33&type=section&id=Item%205%3A%20Other%20Information) This section details the 2025 Annual Meeting of Stockholders and confirms no Rule 10b5-1 trading plans were adopted or terminated by insiders - The 2025 Annual Meeting of Stockholders is set for July 15, 2025[152](index=152&type=chunk) - The new deadline for stockholder proposals under Rule 14a-8 for the 2025 Annual Meeting is May 22, 2025[153](index=153&type=chunk) - No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the fiscal quarter ended March 31, 2025[156](index=156&type=chunk) [Item 6: Exhibits](index=34&type=section&id=Item%206%3A%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including various warrant forms, agreements, and certifications - Exhibits include forms of January 2025 PIPE Pre-Funded Warrants, January 2025 PIPE Warrants, March 2025 New Warrants, Clinical Trial Collaboration Agreement, and Registration Rights Agreement[157](index=157&type=chunk) - Certifications of the Principal Executive Officer and Chief Financial Officer are filed herewith[157](index=157&type=chunk) [Signatures](index=35&type=section&id=Signatures) This section contains the official signatures of the authorized officers of Dermata Therapeutics, Inc., confirming the due authorization and filing of the report - The report is signed by Gerald T. Proehl, President and Chief Executive Officer, and Kyri K. Van Hoose, Senior Vice President, Chief Financial Officer[163](index=163&type=chunk)

- XYNGARI™ achieved its primary endpoints, demonstrating highly statistically significant and clinically meaningful improvement in acne -- XYNGARI™ is the first once-weekly topical product candidate to demonstrate clinical benefit in a Phase 3 clinical trial for moderate-to-severe acne -- Over 30 million acne patients seek treatment in the U.S. each year -SAN DIEGO, March 26, 2025 /PRNewswire/ -- Dermata Therapeutics, Inc. (Nasdaq: DRMA, DRMAW) ("Dermata" or the "Company"), a late-stage biotechnology compan ...

[Company Overview and Recent Developments](index=1&type=section&id=Company%20Overview%20and%20Recent%20Developments) Dermata Therapeutics' corporate update covers recent achievements and upcoming milestones, including clinical trial progress and financing activities [Introduction and CEO Commentary](index=1&type=section&id=Introduction%20and%20CEO%20Commentary) CEO Gerry Proehl highlighted anticipated XYNGARI™ Phase 3 data and a new collaboration with Revance for DMT410 topical botulinum toxin program - Dermata Therapeutics is a late-stage biotechnology company specializing in medical skin diseases and aesthetic applications[2](index=2&type=chunk) - Topline data from the **XYNGARI™ Phase 3 STAR-1 trial** is anticipated by the end of March 2025[3](index=3&type=chunk) - A collaboration agreement with Revance was signed to advance the **DMT410 topical botulinum toxin program** for hyperhidrosis, acne, and rosacea[3](index=3&type=chunk) [Corporate Highlights](index=1&type=section&id=Corporate%20Highlights) Dermata achieved significant operational milestones in late 2024 and early 2025, including completing enrollment for its lead Phase 3 trial, securing a strategic collaboration, and raising capital to extend its operational runway [Key Achievements](index=1&type=section&id=Key%20Achievements) Dermata completed enrollment for XYNGARI™ Phase 3 STAR-1 trial, initiated a collaboration with Revance for DMT410, and raised **$7.8 million** in gross proceeds - Enrollment for the **XYNGARI™ Phase 3 STAR-1 clinical trial** in moderate-to-severe acne was completed in November 2024[7](index=7&type=chunk) - A Clinical Trial Collaboration Agreement was signed with Revance in January 2025 for a **Phase 2a trial of DMT410 with DAXXIFY®** for axillary hyperhidrosis[7](index=7&type=chunk) - The company raised **$7.8 million** in gross proceeds during 2024[7](index=7&type=chunk) [Anticipated Upcoming Milestones](index=1&type=section&id=Anticipated%20Upcoming%20Milestones) Upcoming milestones include **XYNGARI™ Phase 3 STAR-1 topline results** by March 2025, initiation of STAR-2, and continued DMT410 Phase 2a preparations, supported by **$2.55 million** financing - Topline results from the **XYNGARI™ Phase 3 STAR-1 clinical trial** are expected by the end of March 2025[6](index=6&type=chunk)[7](index=7&type=chunk) - Plans to initiate the **XYNGARI™ Phase 3 STAR-2 clinical trial** for moderate-to-severe acne, contingent on positive STAR-1 results[7](index=7&type=chunk) - Preparation continues for the **DMT410 Phase 2a clinical study** with Revance for axillary hyperhidrosis[7](index=7&type=chunk) - A private placement financing in January 2025 raised **$2.55 million** in gross proceeds, extending funding into Q3 2025[6](index=6&type=chunk) [Full Year 2024 Financial Results](index=2&type=section&id=Full%20Year%202024%20Financial%20Results) Dermata Therapeutics' full year 2024 financial results detail cash position, operating expenses, and net loss performance [Cash and Liquidity](index=2&type=section&id=Cash%20and%20Liquidity) Cash and cash equivalents decreased to **$3.2 million** by year-end 2024, with current resources expected to fund operations into Q3 2025 Cash and Cash Equivalents (Year-End) | Metric | Dec 31, 2024 | Dec 31, 2023 | Change | | :----------------------- | :----------- | :----------- | :----- | | Cash and cash equivalents | $3.2 million | $7.4 million | -$4.2 million | - The cash decrease was primarily due to **$11.1 million** used in operations, partially offset by **$6.9 million** in net financing proceeds[8](index=8&type=chunk) - Current cash resources, including **$2.55 million** from a January 2025 PIPE financing, are projected to fund operations into the third quarter of 2025[8](index=8&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Total operating expenses increased significantly in 2024, driven primarily by a substantial rise in research and development costs related to the Phase 3 STAR-1 clinical trial [Research and Development Expenses](index=2&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses increased by **$4.1 million** to **$8.2 million** in 2024, primarily due to higher clinical trial costs for XYNGARI™ Phase 3 STAR-1 Research and Development Expenses | Metric | 2024 | 2023 | Change | | :----------------------- | :----------- | :----------- | :----- | | R&D Expenses | $8.2 million | $4.1 million | +$4.1 million | - The increase was primarily driven by **$4.9 million** in clinical trial expenses for the **XYNGARI™ Phase 3 STAR-1 clinical trial**[9](index=9&type=chunk) - This was partially offset by **$0.2 million** decreased non-clinical expenses and **$0.6 million** decreased CMC expenses[9](index=9&type=chunk) [General and Administrative Expenses](index=2&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses increased to **$4.3 million** in 2024, primarily due to **$0.3 million** in increased audit-related fees General and Administrative Expenses | Metric | 2024 | 2023 | Change | | :----------------------- | :----------- | :----------- | :----- | | G&A Expenses | $4.3 million | $4.0 million | +$0.3 million | - The increase was primarily attributable to **$0.3 million** in increased audit-related fees following a change in auditors in late 2023[10](index=10&type=chunk) [Net Loss and Per Share Data](index=3&type=section&id=Net%20Loss%20and%20Per%20Share%20Data) Net loss increased to **$12.29 million** in 2024, while net loss per common share decreased to **$(8.03)** due to increased shares outstanding Net Loss and Per Share Data | Metric | 2024 (in thousands USD) | 2023 (in thousands USD) | Change (in thousands USD) | | :------------------------------------ | :---------------------- | :---------------------- | :------------------------ | | Net loss | $(12,287) | $(7,795) | $(4,492) | | Net loss per common share, basic and diluted | $(8.03) | $(39.99) | $31.96 | | Weighted average common shares outstanding, basic and diluted | 1,529,772 | 194,928 | 1,334,844 | [About Dermata Therapeutics](index=2&type=section&id=About%20Dermata%20Therapeutics) Dermata Therapeutics' profile, strategic focus, and product candidates, including XYNGARI™ and DMT410, are detailed [Company Profile and Focus](index=2&type=section&id=Company%20Profile%20and%20Focus) Dermata Therapeutics is a late-stage biotechnology company headquartered in San Diego, California, specializing in the development of treatments for medical skin diseases and aesthetic applications - Dermata Therapeutics operates as a late-stage biotechnology company[11](index=11&type=chunk) - The company focuses on treating medical skin diseases and aesthetic applications[11](index=11&type=chunk) - Dermata is headquartered in San Diego, California[11](index=11&type=chunk) [Product Candidates and Technology Platform](index=2&type=section&id=Product%20Candidates%20and%20Technology%20Platform) XYNGARI™, a once-weekly topical treatment, is the lead candidate for acne, psoriasis, and rosacea, while DMT410 uses it for needle-free botulinum toxin delivery - **XYNGARI™** is the lead product candidate, developed from the Spongilla technology platform[11](index=11&type=chunk) - **XYNGARI™** is a once-weekly topical product candidate derived from a freshwater sponge, studied for acne, psoriasis, and rosacea[11](index=11&type=chunk) - **DMT410** is the second product candidate, utilizing XYNGARI™ for needle-free intradermal botulinum toxin delivery for various skin conditions[11](index=11&type=chunk) [Financial Statements](index=2&type=section&id=Financial%20Statements) Dermata Therapeutics' financial statements provide detailed balance sheet and statements of operations data for the reported periods [Balance Sheets](index=2&type=section&id=Balance%20Sheets) Total assets decreased to **$3.53 million** by year-end 2024, while total liabilities increased to **$1.97 million**, and equity significantly declined Balance Sheet Data (in thousands USD) | Metric | Dec 31, 2024 | Dec 31, 2023 | Change | | :-------------------------------- | :----------- | :----------- | :----- | | Cash and cash equivalents | $3,162 | $7,438 | $(4,276) | | Prepaid expenses and other current assets | $372 | $541 | $(169) | | **Total assets** | **$3,534** | **$7,979** | **$(4,445)** | | Accounts payable | $808 | $866 | $(58) | | Accrued liabilities | $1,165 | $757 | $408 | | **Total liabilities** | **$1,973** | **$1,623** | **$350** | | **Equity** | **$1,561** | **$6,356** | **$(4,795)** | | **Total liabilities and equity** | **$3,534** | **$7,979** | **$(4,445)** | [Statements of Operations](index=3&type=section&id=Statements%20of%20Operations) Net loss for 2024 increased to **$12.29 million**, driven by higher research and development expenses of **$8.20 million** and increased G&A costs Statements of Operations Data (in thousands USD, except per share data) | Metric | 2024 | 2023 | Change | | :------------------------------------ | :----------- | :----------- | :----- | | Research and development | $8,204 | $4,070 | $4,134 | | General and administrative | $4,309 | $3,972 | $337 | | **Total operating expenses** | **$12,513** | **$8,042** | **$4,471** | | Loss from operations | $(12,513) | $(8,042) | $(4,471) | | Interest income | $226 | $247 | $(21) | | **Net loss** | **$(12,287)** | **$(7,795)** | **$(4,492)** | | Net loss per common share, basic and diluted | $(8.03) | $(39.99) | $31.96 | | Weighted average common shares outstanding, basic and diluted | 1,529,772 | 194,928 | 1,334,844 | Stock-Based Compensation Expense Included | Expense Type | 2024 (in thousands USD) | 2023 (in thousands USD) | | :----------------------- | :---------------------- | :---------------------- | | Research and development | $251 | $194 | | General and administrative | $406 | $328 | [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section outlines the cautionary nature of forward-looking statements, emphasizing inherent risks and uncertainties in projections [Disclaimer and Risk Factors](index=2&type=section&id=Disclaimer%20and%20Risk%20Factors) Forward-looking statements are subject to known and unknown risks, uncertainties, and assumptions, with actual results potentially differing materially from projections - Statements not strictly historical are forward-looking, based on current beliefs and expectations[12](index=12&type=chunk) - Forward-looking statements are subject to known and unknown risks, uncertainties, and factors, including regulatory timing, clinical trials, partnerships, and funding[12](index=12&type=chunk) - Actual results may differ materially from projections due to inherent factors in drug development, approval, and commercialization[12](index=12&type=chunk) - Dermata undertakes no obligation to revise or update this press release, except as required by law[12](index=12&type=chunk)