Journey Medical (US:DERM)2025-11-12 21:41Revenue Performance - Total revenue for the three-month period ended September 30, 2025, increased by $3.0 million, or 21%, to $17.6 million compared to the same period in 2024[108]. - Product revenue, net for the three-month period ended September 30, 2025, was $17.0 million, reflecting a $2.4 million, or 16%, increase from $14.6 million in 2024[109]. - The U.S. commercial launch of Emrosi™ contributed $4.9 million to net product revenue in the third quarter of 2025[109]. - Total revenue for the nine-month period ended September 30, 2025, was $45.8 million, an increase of $3.3 million, or 8%, from $42.5 million in the same period of 2024[119]. - Product revenue, net for the nine-month period ended September 30, 2025, was $45.2 million, reflecting a $2.7 million, or 6%, increase from $42.5 million in the prior year, with $9.7 million attributed to the launch of Emrosi[120]. Expenses and Losses - Operating expenses for the three-month period ended September 30, 2025, totaled $19.2 million, an increase of $1.6 million, or 9%, from $17.5 million in 2024[108]. - Loss from operations improved by $1.4 million, or 47%, to a loss of $1.5 million for the three-month period ended September 30, 2025[108]. - The company reported a net loss of $2.3 million for the three-month period ended September 30, 2025, a slight improvement of $75,000, or 3%, compared to a net loss of $2.4 million in 2024[108]. - Selling, general and administrative expenses rose by $4.4 million, or 14%, to $34.5 million for the nine-month period ended September 30, 2025, compared to $30.1 million for the same period in 2024, mainly due to activities related to Emrosi's launch[128]. - Research and development expenses decreased by $555,000, or 66%, to $287,000 for the three-month period ended September 30, 2025[108]. - Research and development costs decreased by $9.3 million, or 97%, to $0.3 million for the nine-month period ended September 30, 2025, from $9.6 million in the same period of 2024, as the prior year included pre-approval project expenses for Emrosi[127]. Cash Flow and Financing - Cash and cash equivalents increased to $24.9 million as of September 30, 2025, compared to $20.3 million at December 31, 2024, with working capital rising to $16.7 million from $13.0 million[130]. - Net cash used in operating activities decreased by $5.2 million to $6.2 million for the nine-month period ended September 30, 2025, compared to $11.4 million for the same period in 2024[143]. - Net cash provided by financing activities increased by $4.4 million to $10.8 million for the nine-month period ended September 30, 2025, compared to $6.4 million for the same period in 2024[144]. - The company issued and sold 1,832,107 shares of common stock under the 2022 Shelf, generating net proceeds of $10.9 million during the nine-months ended September 30, 2025[140]. - The company received proceeds of $10.9 million from the issuance of common stock under the ATM program for the nine-month period ended September 30, 2025, compared to $1.7 million and $5.0 million in the previous year[144]. Debt and Obligations - Interest expense increased by $179,000, or 24%, to $937,000 for the three-month period ended September 30, 2025[108]. - Interest expense, net increased by $1.0 million, or 77%, to $2.3 million for the nine-month period ended September 30, 2025, from $1.3 million for the same period in 2024, primarily due to a higher principal balance under the Credit Agreement with SWK[129]. - The company is required to make regular payments under the SWK Credit Facility, with total expected payments of $32.1 million, including $25.0 million in principal and $5.9 million in interest[146]. - The maturity date of the existing Credit Facility has been extended from December 27, 2027, to June 27, 2028, and the revenue threshold for the Revenue-Based Payment provision has been lowered from $70.0 million to $60.0 million[137]. - The company is in compliance with the financial covenants under the Credit Facility as of September 30, 2025[139]. Other Revenue and Adjustments - Other revenue for the three-month period ended September 30, 2025, was $606,000, reflecting a 100% increase from no other revenue in 2024[110]. - Gross-to-net sales accruals increased by $2.4 million, or 24.5%, to $12.2 million as of September 30, 2025, compared to $9.8 million as of September 30, 2024, primarily due to the Emrosi coupon rebate allowance[112]. - Amortization of acquired intangible assets increased by $0.8 million, or 31%, to $3.2 million for the nine-month period ended September 30, 2025, driven by the addition of the Emrosi intangible asset[126]. - The company has contractual obligations for milestone and sales-based royalty payments, but the amounts cannot be reasonably predicted due to their contingent nature[146]. - The company executed a new At Market Issuance Sales Agreement in August 2025 to enhance capital structure and meet liquidity needs for Emrosi's commercialization[132].