Dermata
Therapeutics, Inc. Reports Second Quarter 2021 Financial Results
and Provides Corporate Update
- Completed oversubscribed $18 million Initial Public Offering
(IPO) -
- Set to announce topline results from its DMT310 Phase 1b proof of
concept (POC) study in mild to moderate psoriasis in 4Q 2021
-
- On track to initiate DMT310 Phase 2 study for moderate to severe
rosacea in 4Q 2021 -
SAN DIEGO, September 27, 2021 – Dermata Therapeutics, Inc. (Nasdaq: DRMA)
(“Dermata” or the “Company”), a
clinical-stage biotechnology company focusing on the treatment of
medical and aesthetic skin conditions, today reported financial
results for the second quarter ended June 30, 2021 and highlighted
recent corporate progress.
“Following
the successful completion of our Nasdaq IPO, and the strengthening
of our executive team and Board of Directors, we are eager to enter
this next phase of Dermata’s development, as we further
progress our clinical pipeline,” stated Gerry Proehl,
Dermata’s Chairman, President and Chief Executive Officer.
“We are excited with our results to date and look forward to
the anticipated announcement of topline data from our DMT310 and
DMT410 trials in the fourth quarter of 2021. Both of these product
candidates leverage our unique Spongilla technology, and we believe
represent potentially new, differentiated, and convenient treatment
options to several underserved patient
populations.”
Corporate Highlights
●
Completed Oversubscribed IPO on Nasdaq.
On August 17, 2021, Dermata completed its oversubscribed IPO
issuing 2,571,428 shares of common stock and accompanying warrants
to purchase up to 2,571,428 shares of common stock, which included
the full exercise by the underwriters of their option to purchase
385,714 additional warrants. Gross proceeds to the Company were
approximately $18.0 million, before deducting underwriting
discounts and offering expenses.
●
Expanded Board of Directors. Subsequent
to the successful completion of the Company’s
IPO, Dermata appointed four experienced life science leaders
to its Board of Directors, including Steven Mento, Ph.D., Mary
Fisher, Kathleen Scott, and Andrew Sandler, M.D., joining Gerry
Proehl, David Hale, and Wendell Wierenga, Ph.D.
●
Expanded Executive Team. On September 1,
2021, Dermata appointed Kyri Van Hoose as Chief Financial Officer.
Ms. Van Hoose is a strategic and operational finance leader with
over 20 years of experience, including more than 15 years in the
life sciences industry.
●
Announced Upcoming DMT410 Presentation at the
American Society for Dermatologic Surgery (ASDS) 2021 Annual
Meeting. On September 21, 2021, Dermata announced it will
present efficacy and safety data from its Phase 1b POC study
evaluating one application of DMT410 to treat multiple aesthetic
skin conditions. The video presentation will be presented at the
ASDS 2021 Annual Meeting to be held virtually, November 19-21,
2021.
Anticipated Upcoming Milestones
●
Psoriasis: Topline results from DMT310
Phase 1b POC study in mild to moderate psoriasis expected 4Q
2021
●
Aesthetic: Topline results from DMT410
Phase 1b POC study in multiple aesthetic skin conditions expected
4Q 2021
●
Rosacea: Initiation of DMT310 Phase 2
study in moderate to severe rosacea expected 4Q 2021
●
Acne: Initiation of non-clinical studies
in preparation for an End of Phase 2 meeting with the
FDA
Second Quarter 2021 Financial Results
As of
June 30, 2021, Dermata had $427,202 in cash, compared to $530,400
as of December 31, 2020. Dermata received net proceeds of $15.7
million from the sale of its common stock and warrants in its IPO
which closed in August 2021, which is expected to fund operations
into the fourth quarter of 2022.
Research and development expenses for the second quarter of 2021
were $867,197, compared to $411,949 for the same period in 2020.
Research and development expenses for the six months ended June 30,
2021 were $1,547,785, compared to $1,373,053 for the same period in
2020. The increase in research and development expenses was
primarily due to clinical trial and non-clinical expenses and
manufacturing costs, as well as salaries and stock-based
compensation expense. Stock-based compensation expense attributable
to research and development totaled $29,744 and $279,971 for the
three and six months ended June 30, 2021,
respectively.
General and administrative expenses for the second quarter of 2021
were $462,772, compared to $380,837 for the same period in 2020.
General and administrative expenses for the six months ended June
30, 2021 were $2,043,957, compared to $768,310 for the same period
in 2020. The increase in general and administrative expenses was
primarily related to an increase in professional fees related to
the conversion of Dermata from a limited liability company to a
C-corporation in March 2021, as well as increased patent, salaries,
and stock-based compensation expense. Stock-based compensation
expense attributable to general and administrative totaled $84,243
and $994,065 for the three and six months ended June 30, 2021,
respectively.
About Dermata Therapeutics
Dermata
Therapeutics, Inc. is a clinical-stage biotechnology company
focusing on the treatment of medical and aesthetic skin conditions.
The Company’s lead product candidate, DMT310, is the first
product candidate being developed from its Spongilla technology platform. DMT310
is a once-weekly topical product candidate derived from a naturally
sourced freshwater sponge with multiple unique mechanisms of
action. DMT310 is currently under clinical development for the
treatment of acne, psoriasis, and rosacea. Our second product
candidate, DMT410, uses our Spongilla technology as a new method for
topical intradermal delivery of botulinum toxin for the treatment
of multiple aesthetic skin conditions. Dermata is headquartered in
San Diego, California. For more information, please visit
http://www.dermatarx.com/.
Forward-Looking Statements
Statements
in this press release that are not strictly historical in nature
are forward-looking statements. These statements are based on the
Company’s current beliefs and expectations and new risks may
emerge from time to time. Forward-looking statements are subject to
known and unknown risks, uncertainties, assumptions and other
factors including, but are not limited to, statements related to:
expectations with regard to the timing of data events; the
Company’s belief that its current cash, including net
proceeds from its recent financing, will be sufficient to fund its
operations into the fourth quarter of 2022; the success, cost and
timing of its product candidates DMT310 and DMT410 development
activities and ongoing and planned clinical trials; whether the
results of DMT310 or DMT410 will lead to future product
development; and the Company’s estimates regarding expenses,
and needs for additional financing. These statements are only
predictions based on current information and expectations and
involve a number of risks and uncertainties. Actual events or
results may differ materially from those projected in any of such
statements due to various factors, including the 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. For a
discussion of these and other factors, please refer to
Dermata's filings with the Securities and Exchange
Commission. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
This caution is made under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. All
forward-looking statements are qualified in their entirety by this
cautionary statement and Dermata undertakes no obligation to revise
or update this press release to reflect events or circumstances
after the date hereof, except as required by law.
DERMATA THERAPEUTICS, INC.
(Formerly Dermata Therapeutics, LLC)
Condensed Balance Sheets
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
Cash
|
$427,202
|
$530,400
|
|
Other
current assets
|
709,662
|
75,053
|
|
Total
assets
|
1,136,864
|
605,453
|
|
Liabilities
|
|
|
|
Accounts
payable
|
881,306
|
104,276
|
|
Accrued
liabilities
|
586,516
|
133,477
|
|
Convertible
notes
|
174,844
|
2,989,479
|
|
Debt
|
-
|
556,160
|
|
Total
liabilities
|
1,642,666
|
3,783,392
|
|
Deficit
|
(505,802)
|
(3,177,939)
|
|
Total liabilities and deficit
|
$1,136,864
|
$605,453
|
DERMATA THERAPEUTICS, INC.
(Formerly Dermata Therapeutics, LLC)
Condensed Statements of Operations
(unaudited)
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
Research
and development (1)
|
$867,197
|
$411,949
|
$1,547,785
|
$1,373,053
|
|
General
and administrative (1)
|
462,772
|
380,837
|
2,043,957
|
768,310
|
|
Total
operating expenses
|
1,329,969
|
792,786
|
3,591,742
|
2,141,363
|
|
Loss
from operations
|
(1,329,969)
|
(792,786)
|
(3,591,742)
|
(2,141,363)
|
|
Interest
expense, net
|
1,823
|
28,863
|
44,958
|
101,459
|
|
Net loss
|
$(1,331,792)
|
$(821,649)
|
$(3,636,700)
|
$(2,242,822)
|
|
Net
loss per common share, basic and diluted
|
$(0.70)
|
$(0.43)
|
$(1.90)
|
$(1.17)
|
|
Weighted
average common shares
|
|
|
|
|
|
outstanding,
basic and diluted
|
1,911,009
|
1,911,009
|
1,911,009
|
1,911,009
|
|
|
|
|
|
|
(1) Includes the following stock-based compensation
expense
|
|
|
|
|
Research
and development
|
$29,744
|
$-
|
$279,971
|
$-
|
|
General
and administrative
|
$84,243
|
$-
|
$994,065
|
$-
|
Contact:
Sean
Proehl
Senior
Director, Legal and Business Development
info@dermatarx.com
