PART I. FINANCIAL INFORMATION This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis Item 1. Condensed Consolidated Financial Statements (unaudited) Unaudited consolidated financial statements and notes are presented, showing a net loss of $7.9 million for H1 2025 Unaudited Condensed Consolidated Balance Sheets This section presents the company's financial position, detailing assets, liabilities, and equity at specific reporting dates Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------- | :------------ | :---------------- | :--------- | :--------- | | Cash and cash equivalents | $20,293 | $20,305 | $(12) | -0.06% | | Total current assets | $51,268 | $48,179 | $3,089 | 6.41% | | Total assets | $81,158 | $80,241 | $917 | 1.14% | | Total current liabilities | $40,481 | $35,175 | $5,306 | 15.09% | | Total liabilities | $61,912 | $60,172 | $1,740 | 2.89% | | Total stockholders' equity | $19,246 | $20,069 | $(823) | -4.10% | Unaudited Condensed Consolidated Statements of Operations This section outlines the company's financial performance, including revenues, expenses, and net loss over specific periods Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------------------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Product revenue, net | $15,009 | $14,855 | $154 | 1.04% | $28,148 | $27,885 | $263 | 0.94% | | Total operating expenses | $17,885 | $17,782 | $103 | 0.58% | $34,348 | $40,902 | $(6,554) | -16.02% | | Loss from operations | $(2,876) | $(2,927) | $51 | -1.74% | $(6,200) | $(13,017) | $6,817 | -52.37% | | Net loss | $(3,796) | $(3,361) | $(435) | 12.94% | $(7,869) | $(13,803) | $5,934 | -43.00% | | Basic and diluted net loss per common share | $(0.16) | $(0.17) | $0.01 | -5.88% | $(0.34) | $(0.69) | $0.35 | -50.72% | Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity This section details changes in the company's equity, reflecting transactions affecting capital and accumulated earnings/losses Condensed Consolidated Statements of Changes in Stockholders' Equity Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------- | :------------ | :---------------- | :--------- | :--------- | | Total Shareholders' Equity | $19,246 | $20,069 | $(823) | -4.10% | | Additional Paid-in Capital | $114,140 | $107,094 | $7,046 | 6.58% | | Accumulated Deficit | $(94,896) | $(87,027) | $(7,869) | 9.04% | - Share-based compensation for the six months ended June 30, 2025, was $2.659 million14 - Issuance of common stock from ATM offering, net of costs, generated $4.048 million for the six months ended June 30, 202514 Unaudited Condensed Consolidated Statements of Cash Flows This section reports the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Net cash used in operating activities | $(3,774) | $(10,195) | $6,421 | -62.98% | | Net cash provided by financing activities | $3,762 | $6,668 | $(2,906) | -43.58% | | Net change in cash | $(12) | $(3,527) | $3,515 | -99.66% | | Cash at the end of the period | $20,293 | $23,912 | $(3,619) | -15.13% | - Cash paid for interest increased from $756k in 2024 to $1,591k in 2025 for the six-month period22 NOTE 1. ORGANIZATION AND PLAN OF BUSINESS OPERATIONS This note describes the company's business, operational structure, and financial viability considerations - Journey Medical Corporation is a commercial-stage pharmaceutical company focused on FDA-approved prescription dermatological products in the U.S., with a portfolio of eight drugs23 - The Company is a majority-owned subsidiary of Fortress Biotech, Inc24 - Cash and cash equivalents were $20.3 million at June 30, 2025, consistent with December 31, 2024. Working capital decreased from $13.0 million to $10.8 million25 - Substantial doubt exists about the Company's ability to continue as a going concern due to recurring losses28 NOTE 2. BASIS OF PRESENTATION This note explains the accounting principles, consolidation policies, and significant estimates used in preparing the financial statements - The Company's consolidated financial statements include the accounts of Journey Medical Corporation and its wholly-owned subsidiary, JG Pharma, Inc29 - Amortization of acquired intangible assets was reclassified from 'Cost of goods sold' to a separate line item in the consolidated statement of operations, with no impact on previously reported financial results30 - The Company is an emerging growth company and has elected the extended transition period for complying with new or revised accounting standards31 - Significant estimates include provisions for coupons, chargebacks, rebates, product returns, inventory realization, valuation of intangible assets, useful lives of amortizable intangible assets, and share-based compensation32 NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This note references the company's detailed accounting policies and ongoing evaluations of new accounting standards - Significant accounting policies are described in Note 2 of the Company's 2024 Form 10-K35 - The Company is evaluating ASU No. 2023-09 (Income Taxes) and ASU No. 2024-03 (Income Statement Expenses) for their potential impact on disclosures3637 NOTE 4. INVENTORY This note provides a breakdown of the company's inventory, including finished goods, work-in-process, raw materials, and reserves Inventory Composition (in thousands) | Inventory Category | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------- | :------------ | :---------------- | :--------- | :--------- | | Finished goods | $9,526 | $11,381 | $(1,855) | -16.30% | | Work-in-process | $369 | $367 | $2 | 0.54% | | Raw materials | $3,66
Journey Medical (DERM) - 2025 Q2 - Quarterly Report