Dermata Therapeutics Provides Corporate Update and Reports Financial Results for the Year Ended 2025

Rhea-AI Summary

Dermata Therapeutics (Nasdaq:DRMA) announced a strategic pivot to develop and commercialize direct-to-consumer skincare under the new brand Tome, planning to launch its first product, the Foundational Treatment, in mid-2026. The company reported year-end 2025 cash of $7.5 million and raised $15.4 million in gross proceeds during 2025 and early 2026, which it expects will fund operations into the first quarter of 2027. Dermata also noted a $5.3 million reduction in R&D spending versus 2024 following completion of the STAR-1 acne study and withdrew its IND for XYNGARI to focus on the DTC strategy.

Positive

• Cash balance of $7.5M as of December 31, 2025
• Raised $15.4M in gross proceeds during 2025 and early 2026
• Planned DTC launch: Foundational Treatment in mid-2026
• R&D expenses down $5.3M YoY after STAR-1 completion

Negative

• Operations used $7.8M cash in 2025
• Company expects runway only into Q1 2027
• Withdrew IND for XYNGARI to pivot away from prescription pathway

Key Figures

Cash balance: $7.5M Operating runway: Into Q1 2027 Gross proceeds raised: $15.4M +5 more

8 metrics

Cash balance $7.5M As of Dec 31, 2025 (vs. $3.2M Dec 31, 2024)

Operating runway Into Q1 2027 Estimated funding horizon from current cash resources

Gross proceeds raised $15.4M Raised during 2025 and early 2026

Year-end private placement $4.125M Gross proceeds from Dec 2025 private placement

Net financing proceeds $12.1M Net proceeds in 2025 contributing to cash increase

Cash used in operations $7.8M Cash burn for year ended Dec 31, 2025

R&D expenses 2025 $2.9M Down from $8.2M in 2024 after STAR‑1 completion

SG&A expenses 2025 $4.8M Up from $4.3M in 2024, mainly $0.7M marketing spend

Market Reality Check

Price: $1.3700 Vol: Volume 176,614 is 0.07x t...

low vol

$1.3700 Last Close

Volume Volume 176,614 is 0.07x the 20-day average 2,385,978, indicating muted trading interest into this earnings update. low

Technical Shares at $1.37 are trading below the 200-day MA of $3.99, reflecting a longer-term downtrend into the report.

Peers on Argus

Among close biotech peers, moves were mixed: BDRX (-4.25%), ENTO (-5.68%), SLXN ...

1 Up 1 Down

Among close biotech peers, moves were mixed: BDRX (-4.25%), ENTO (-5.68%), SLXN (-7.75%), GLTO (-0.21%), TOVX (+1.73%). This dispersion points to stock-specific dynamics around DRMA’s earnings rather than a clear sector-wide driver.

Previous Earnings Reports

5 past events · Latest: Nov 14 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 14	Q3 2025 earnings	Positive	-7.5%	Highlighted pivot to OTC dermatology and mid‑2026 acne kit launch.
Aug 13	Q2 2025 earnings	Positive	-9.8%	Reported strong Phase 3 acne data and increased cash via $8.8M financing.
May 14	Q1 2025 earnings	Positive	-0.1%	Announced positive STAR-1 topline results and new Revance collaboration.
Mar 17	FY 2024 results	Positive	+2.6%	Provided 2024 results and timeline to Phase 3 STAR‑1 topline data.
Nov 13	Q3 2024 earnings	Positive	-3.3%	Reported STAR‑1 enrollment progress and detailed 2024 financing activity.

Pattern Detected

Earnings and corporate updates have frequently been followed by negative price reactions, even when operational progress or financing strength was highlighted.

Recent Company History

Across prior earnings updates from Nov 2024 through Nov 2025, Dermata repeatedly reported clinical progress for its Spongilla-based acne program and strengthened its balance sheet through financings, while guiding cash runways into future quarters. Despite this, four of five same-tag events saw negative next-day moves. Today’s year-end 2025 results extend the narrative of a pivot toward DTC skincare under the Tome brand, building on the strategic shift first emphasized in the Q3 2025 update.

Historical Comparison

-3.6% avg move · Past earnings or year-end updates for DRMA have averaged a -3.64% next-day move, so the current nega...

earnings

-3.6%

Average Historical Move earnings

Past earnings or year-end updates for DRMA have averaged a -3.64% next-day move, so the current negative reaction fits a pattern of selling into fundamental updates.

Same-tag events trace Dermata’s evolution from Phase 3 acne development toward an OTC, Spongilla-based skincare strategy, now extended into a DTC Tome brand with mid‑2026 product launches planned.

Regulatory & Risk Context

Active S-3 Shelf · $100,000,000

Shelf Active

Active S-3 Shelf Registration 2025-11-21

$100,000,000 registered capacity

An effective S-3 shelf filed on Nov 21, 2025 allows Dermata to issue up to $100,000,000 of securities over time, preserving the ability to raise capital for working capital and corporate purposes. Recent usage includes a 424B3 resale prospectus dated Jan 29, 2026.

Market Pulse Summary

This announcement combines a detailed year-end 2025 financial update with confirmation of Dermata’s ...

Analysis

This announcement combines a detailed year-end 2025 financial update with confirmation of Dermata’s pivot to Tome-branded DTC skincare, supported by $7.5M in cash and an operating runway into Q1 2027. R&D spending fell sharply as clinical programs wound down, while SG&A rose with marketing for upcoming launches. Investors may track progress toward mid‑2026 Foundational and Clearing Treatment launches and any further use of the effective $100,000,000 shelf registration.

Key Terms

direct-to-consumer, over-the-counter, otc, phase 3, +1 more

5 terms

direct-to-consumer financial

"Dermata announced a strategic pivot to develop and commercialize direct-to-consumer ("DTC") skincare products"

A direct-to-consumer (DTC) model is when a company sells its products or services straight to customers, skipping middlemen like retailers or wholesalers. For investors, DTC matters because it can mean higher profit margins, closer customer relationships and faster feedback—like a baker who sells directly from the shop instead of through a grocery chain—while also exposing the business to costs for marketing, customer support and logistics that affect growth and profitability.

over-the-counter regulatory

"Clearing Treatment, an over-the-counter ("OTC") acne treatment"

Over-the-counter describes securities or trades that occur directly between buyers and sellers rather than on a formal stock exchange. Think of it like buying at a flea market instead of a big supermarket: prices, rules and transparency can vary, which can mean lower liquidity, wider price swings and less regulatory oversight—factors investors watch because they affect ease of trading and risk level.

otc regulatory

"Clearing Treatment, an over-the-counter ("OTC") acne treatment"

OTC stands for "over-the-counter" and describes securities that trade directly between dealers or via dealer networks rather than on a formal stock exchange. It matters to investors because OTC listings typically have fewer reporting rules and lower trading volume, which can mean higher price swings, limited liquidity, and greater difficulty buying or selling shares—similar to shopping at a small flea market instead of a large, regulated supermarket.

phase 3 medical

"positive topline data from its XYNGARI Phase 3 STAR-1 clinical trial in moderate-to-severe acne"

Phase 3 is the late-stage clinical testing step for a new drug or medical treatment, where the product is given to large groups of patients to confirm effectiveness, monitor side effects, and compare it to standard care. Successful Phase 3 results are often the final scientific hurdle before regulators decide on approval and market launch—like passing a final exam before graduation—and can sharply change a company's valuation and future revenue prospects.

investigational new drug application regulatory

"the Company has since withdrawn the investigational new drug application for XYNGARI"

An investigational new drug application is a formal request made to regulatory authorities to begin testing a new medication in humans. It is a critical step in the drug development process, as approval indicates the drug has passed initial safety checks and can be studied further. For investors, this signals that a potential new treatment is progressing through its early testing stages, which can impact the company's future growth prospects.

AI-generated analysis. Not financial advice.

- Dermata announced a strategic pivot to develop and commercialize direct-to-consumer ("DTC") skincare products under the brand name Tome -

- Dermata plans to launch its first DTC product, our Foundational Treatment, a once-weekly mask to support a skin renewal, in the middle of 2026 -

- Raised $4.125 million in gross proceeds from a private placement financing in December 2025, including participation from Dermata's Chief Executive Officer, Chief Financial Officer, and a member of the Company's management -

SAN DIEGO, CA / ACCESS Newswire / March 26, 2026 / Dermata Therapeutics, Inc. (Nasdaq:DRMA; DRMAW) ("Dermata," or the "Company"), a science-driven leader in dermatologic solutions, today highlighted recent corporate progress and reported financial results for the year ended December 31, 2025.

"We are extremely excited as we approach the planned launch of our first DTC product in the middle of 2026, as this will be an important milestone in our company's evolution," said Gerry Proehl, Chairman, President, and CEO of Dermata. "Our team has been extremely busy over the past few months since we announced in September 2025 our strategic pivot to sell direct-to-consumer skincare products. Since the announcement, we have recently revealed our new skincare brand, Tome, hired a new Vice President of Marketing to lead the brand, and are close to finalizing the commercial packaging for our first product," Mr. Proehl continued. "We believe we can leverage our deep knowledge from years of clinical dermatology to deliver DTC skincare products that are efficacious and accessible to consumers. With the cash raised from our recent financings, we believe we are in a good financial position for our planned product launches, with potential revenue to follow," concluded Mr. Proehl.

Kyra Peckaitis, Dermata's new Vice President of Marketing, commented, "Having recently joined Dermata, I've been incredibly energized by both the strength of the team and opportunity to create something truly differentiated in the skincare market. We are very excited to announce our first product by Tome, our Foundational Treatment, a once-weekly, foundational step designed to renew the appearance of the skin and improve tone and texture over time. Our Foundational Treatment will incorporate our hero ingredient, Spongillalacustris, a wildly harvested freshwater sponge that we call Bioneedle, to provide consumers with the feel of an aesthetician treatment at home." Ms. Peckaitis continued, "We decided to fast-track the launch of the Foundational Treatment as we see this product reaching a larger market, which can be used as the base product for any skincare routine. We continue to diligently work on our second product, our Clearing Treatment for acne, which we expect to launch for the sizable acne market shortly after launching our Foundational Treatment. In a crowded skincare landscape, we see a real opportunity to stand out by offering solutions that simplify routines while delivering meaningful improvements in how consumer's skin looks and feels, and we believe our Foundational Treatment and Clearing Treatment will do just that."

Corporate Highlights

• Announced strategic pivot to DTC skincare company. In September 2025, Dermata announced that it was making a strategic shift from developing prescription dermatology products to developing and commercializing DTC skincare products. The Company is currently working on branding, packaging, and manufacturing to prepare for the expected launch of its first DTC product, a once-weekly, foundational routine to support skin renewal in the middle of 2026. The Company plans to sell multiple skincare products directly to consumers and directly to aestheticians and dermatologists for in-office treatments.

• Announced the launch of its new skincare brand, Tome. In March 2026, Dermata revealed its new skincare brand, Tome, which aims to introduce "skintech" at home. The Tome skincare line will emphasize products Dermata believes can become the essential foundation of any well-rounded skincare routine. The Company plans to add multiple products to their Tome skincare portfolio that utilize time-tested remedies to simplify skincare routines.

• Announced the hiring of Kyra Peckaitis as Vice President of Marketing. In March 2026, Ms. Peckaitis joined the Dermata team to lead the launch of its new Tome skincare brand. Prior to joining Dermata, Ms. Peckaitis worked at Coterie helping to build its DTC baby care brand. Ms. Peckaitis brings years of experience in DTC marketing and brand building.

• Raised $15.4 million in gross proceeds during 2025 and beginning of 2026. The funds raised during 2025, along with the proceeds from the Company's at-the-market facility in January 2026, are expected to fund its operations into the first quarter of 2027.

• Announced positive topline data from its XYNGARI Phase 3 STAR-1 clinical trial in moderate-to-severe acne. In March 2025, Dermata announced that its STAR-1 study met all three primary endpoints by producing highly statistically significant results versus placebo at the end of study. In April 2025, Dermata also announced that XYNGARI achieved statistically significant separation from placebo after just 4 weeks, or only four treatments. The STAR-1 study tested Spongillalacustris as a treatment for moderate-to-severe acne, adding to the prior Phase 2b study where XYNGARI achieved statistically significant separation from placebo at all time points. However, the Company has since withdrawn the investigational new drug application for XYNGARI to pursue its new commercial strategy of selling DTC skincare products.

Anticipated Upcoming Milestones

• Launch first DTC product, Foundational Treatment, in the middle of 2026. The Company is close to finalizing packaging for the upcoming launch of its Foundational Treatment. The Company believes the Foundational Treatment can be the base of any skincare routine, designed to renew the appearance of the skin and simplify skincare with a once-weekly application. The Company anticipates being ready to launch the Foundational Treatment in the middle of 2026.

• Launch second DTC product, Clearing Treatment, an over-the-counter ("OTC") acne treatment. The Company is also working on finalizing its second DTC product, its Clearing Treatment, targeting consumers suffering from common forms of acne. This OTC acne treatment will incorporate an FDA approved OTC active ingredient along with the Company's Bioneedle, to provide patients with a targeted treatment for their acne. The Clearing Treatment is expected to launch shortly after the Foundational Treatment.

Year Ended 2025 Financial Results

As of December 31, 2025, the Company had $7.5 million in cash and cash equivalents, compared to $3.2 million as of December 31, 2024. The $4.3 million increase in cash and cash equivalents for the year ended December 31, 2025, resulted from approximately $12.1 million of net financing proceeds offset by $7.8 million of cash used in operations. The Company expects its current cash resources to be sufficient to fund operations into the first quarter of 2027.

Research and development expenses were $2.9 million for the year ended December 31, 2025, compared to $8.2 million for the year ended December 31, 2024. The $5.3 million decrease in research and development expenses was primarily the result of a $5.1 million of decrease in clinical expenses from our STAR-1 acne study, which was completed during the second quarter of 2025. Other research and development activities, including chemistry, manufacturing and controls, or CMC, and non-clinical expenses also decreased by $0.1 million from the prior year as result of the Company's pivot to focus on DTC product sales. The remaining decrease in research and development expenses of $0.1 million was related to personnel expenses.

Selling, general and administrative expenses increased by approximately $0.5 million from $4.3 million for the year ended December 31, 2024, to $4.8 million for the year ended December 31, 2025. The increase in selling, general and administrative expenses was primarily attributable to $0.7 million in marketing expenses incurred during the year ended December 31, 2025, offset by approximately $0.2 million in decreased personnel expenses.

About Dermata Therapeutics

Dermata Therapeutics is a scientific leader in dermatologic solutions that recently announced a strategic pivot from pharmaceutical development to begin focusing on the development and commercialization of direct-to-consumer skincare solutions. The Company is currently developing a first-of-its-kind skin refresh and acne treatments that incorporates Dermata's Bioneedle. The Company plans to launch its initial product in the middle of 2026 with additional innovations planned to follow. Dermata is headquartered in San Diego, California. For more information, or to join our mailing list, please visit http://www.dermatarx.com/.

About Tome Skincare

Tome is Dermata's new skincare line focused on bringing about a new realm of skincare that is powerful, not punishing. Tome in its literal meaning is a large, important, scholarly book. Dermata intends to educate consumers with a brand that tells a skincare story rooted in science and history. Tome will consist of a line of skincare products utilizing Spongilla lacustris, a wildly harvested, freshwater sponge that has evolved over millions of years, for consumers that are compelled by history and science to find the most potent products for their skincare routine. Dermata believes its Tome skincare line will simplify existing skincare routines with essential ingredients that deliver results, without harmful extremes. Dermata expects to launch its first product in the middle of 2026 with additional product launches planned to follow. Start your skincare story at www.tomeskincare.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: Dermata's shift to prioritize DTC skincare products; the anticipated benefits of Dermata's strategic shift to prioritize DTC skincare products, including acceleration of its path to commercialization, reduction of regulatory burdens, and expansion into broader consumer markets; the success, cost, and timing of the launch of its planned or future DTC products, including Foundational Treatment; the expected timing and success of any planned or future DTC product launches, including Clearing Treatment; expectations for the success of the Company's products and their ability to generate revenue for the Company; the Company's expectations with regard to current cash and cash equivalents and the amount of time it will fund operations; and other factors described in the Company's filings with the Securities and Exchange Commission. These forward-looking statements are generally identified by the use of such words as "may," "could," "should," "would," "believe," "anticipate," "forecast," "estimate," "expect," "intend," "plan," "continue," "outlook," "will," "potential" and similar statements of a future or forward-looking nature. 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 product development and commercialization. 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.
Balance Sheets

		December 31, 2025				December 31, 2024
In thousands USD
Assets
Cash and cash equivalents		$	7,522			$	3,162
Prepaid expenses and other current assets			342				372
Total assets			7,864				3,534
Liabilities
Accounts payable			461				808
Accrued liabilities			1,180				1,165
Total liabilities			1,641				1,973
Equity			6,223				1,561
Total liabilities and equity		$	7,864			$	3,534

DERMATA THERAPEUTICS, INC.
Statements of Operations

		Year Ended December 31,
		2025				2024
In thousands, except share and per share data
Operating expenses
Research and development (1)		$	2,930			$	8,204
Selling, general and administrative (1)			4,844				4,309
Total operating expenses			7,774				12,513
Loss from operations			(7,774	)			(12,513	)
Interest income, net			215				226
Net loss		$	(7,559	)		$	(12,287	)
Net loss per common share, basic and diluted		$	(8.16	)		$	(80.32	)
Weighted average common shares outstanding, basic and diluted			926,192				152,974
(1) Includes the following stock-based compensation expense
Research and development		$	32			$	251
Selling, general and administrative		$	112			$	406

Investors:

Cliff Mastricola
Investor Relations
cmastricola@dermatarx.com

SOURCE: Dermata Therapeutics

View the original press release on ACCESS Newswire

FAQ

When will Dermata (DRMA) launch its first Tome product, the Foundational Treatment?

The Foundational Treatment is planned to launch in mid-2026. According to the company, packaging is nearly finalized and the product is positioned as a once-weekly foundational step intended to renew skin appearance and simplify routines.

How long is Dermata's (DRMA) cash runway after the 2025 financings?

Dermata expects cash to fund operations into the first quarter of 2027. According to the company, $15.4 million was raised in 2025/early 2026 and cash was $7.5 million at year-end 2025.

What happened to Dermata's XYNGARI acne program after STAR-1 results?

Dermata announced it withdrew the IND for XYNGARI to focus on DTC skincare. According to the company, despite positive STAR-1 topline results, the program was paused in favor of the new Tome commercial strategy.

How much did Dermata (DRMA) reduce research and development spending in 2025?

R&D expenses decreased by $5.3 million to $2.9 million in 2025. According to the company, the decline chiefly reflects a $5.1 million reduction in clinical costs after completing the STAR-1 acne study.

What fundraising did Dermata (DRMA) complete to support the Tome launch?

Dermata raised $15.4 million in gross proceeds during 2025 and early 2026. According to the company, these proceeds, plus ATM activity, are expected to support operations through the planned 2026 product launches.