DRMA

Dermata is a pre-commercial company with no revenue in any of the last five fiscal years, an accumulated deficit of -$73.2M, and a FY2025 net loss of -$7.56M. The one genuinely de-risking event in the file — XYNGARI's Phase 3 STAR-1 trial hitting statistical significance across all three co-primary endpoints at weeks 4, 8 and 12 — was effectively walked away from: in September 2025 management pivoted from the prescription acne pathway to direct-to-consumer and B2B cosmetic/OTC skincare. Abandoning a successful Phase 3 program to start over as an unproven consumer-products marketer is a serious question mark on capital allocation and strategic conviction, and the new plan carries none of the regulatory de-risking the old one already achieved.

The balance sheet is not levered (liabilities/equity just 0.26x, total liabilities $1.64M), but that is cold comfort when there is no product and no revenue. Cash of $7.52M against operating cash burn of -$7.76M implies roughly one year of runway. With shares outstanding down to just 4.02M and diluted EPS of -$8.16, the tiny float and prior reverse-split math signal that continued equity raises — and further dilution at a $1.34 share price — are all but certain to fund the mid-2026 cosmetic launch and the OTC acne product that is to follow.