Dermata Therapeutics, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on developing innovative pharmaceutical products for dermatological conditions, experienced a net loss of $3.2 million for the third quarter of 2024, compared to a net loss of $1.7 million for the same period in 2023. For the nine months ended September 30, 2024, the net loss increased to $9.1 million from $5.7 million in the prior year.

Total operating expenses for the third quarter rose to $3.2 million, up from $1.8 million in Q3 2023, driven primarily by a substantial increase in research and development expenses, which reached $2.4 million compared to $903,000 in the previous year. For the nine-month period, research and development expenses totaled $6.0 million, a significant increase from $2.9 million in 2023, largely due to heightened clinical expenses associated with the DMT310 STAR-1 acne study.

As of September 30, 2024, Dermata's cash and cash equivalents stood at $6.1 million, a decrease from $7.4 million at the end of 2023. The company reported total assets of $6.7 million and total liabilities of $1.9 million, resulting in stockholders' equity of $4.7 million, down from $6.4 million at the end of the previous fiscal year. The accumulated deficit increased to $62.5 million from $53.4 million at the end of 2023.

Dermata has been actively raising capital to support its operations, generating approximately $6.9 million from financing activities in the nine months ended September 30, 2024, compared to $5.7 million in the same period of 2023. This included net proceeds of $3.1 million from a PIPE financing and $1.5 million from an At The Market Offering Agreement. The company anticipates that its current cash resources will fund operations into the second quarter of 2025.

Strategically, Dermata initiated its Phase 3 clinical trial for DMT310 in Q4 2023, with top-line data expected in 2025. The company has also entered into exclusive supply agreements for raw materials essential for its product candidates. However, potential future sanctions could impact the availability of these materials, posing risks to its operations.

Overall, Dermata continues to focus on advancing its clinical programs while navigating financial challenges and seeking additional capital to support its growth initiatives.