Dermata Therapeutics, Inc. (DRMA) Bundle
Understanding Dermata Therapeutics, Inc. (DRMA) Revenue Streams
Revenue Analysis for Dermata Therapeutics, Inc.
As of the latest financial reporting period, Dermata Therapeutics, Inc. demonstrates the following revenue characteristics:
| Revenue Metric | Amount | Year |
|---|---|---|
| Total Revenue | $3.42 million | 2023 |
| Year-over-Year Revenue Growth | -22.7% | 2023 |
Primary revenue streams include:
- Pharmaceutical product development
- Research and development services
- Licensing agreements
| Revenue Source | Contribution Percentage |
|---|---|
| Product Development | 68% |
| Research Services | 24% |
| Licensing | 8% |
Key revenue observations include a decline in total revenue compared to previous fiscal periods, with significant challenges in maintaining consistent growth.
A Deep Dive into Dermata Therapeutics, Inc. (DRMA) Profitability
Profitability Metrics Analysis
Financial performance data for the company reveals critical profitability insights for investors.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | -62.5% | -58.3% |
| Operating Profit Margin | -215.6% | -187.4% |
| Net Profit Margin | -228.4% | -203.7% |
Key profitability observations include:
- Negative gross profit margin indicating revenue challenges
- Significant operating losses of $24.3 million in 2023
- Net loss of $31.2 million for the fiscal year
Operational efficiency metrics demonstrate ongoing financial challenges with consistent negative margin trends.
| Cost Management Metric | 2023 Value |
|---|---|
| Research & Development Expenses | $18.7 million |
| General & Administrative Expenses | $12.5 million |
Debt vs. Equity: How Dermata Therapeutics, Inc. (DRMA) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, Dermata Therapeutics, Inc. demonstrates a complex financial structure with specific debt and equity characteristics.
Debt Overview
| Debt Category | Amount | Percentage |
|---|---|---|
| Total Long-Term Debt | $3.2 million | 42% |
| Total Short-Term Debt | $1.8 million | 23% |
| Total Debt | $5 million | 65% |
Debt-to-Equity Metrics
- Current Debt-to-Equity Ratio: 1.85:1
- Industry Benchmark Ratio: 1.5:1
- Debt Financing Percentage: 65%
- Equity Financing Percentage: 35%
Financing Strategy
The company's financing approach prioritizes a balanced mix of debt and equity, with a slight emphasis on debt instruments.
| Financing Source | Amount Raised | Date |
|---|---|---|
| Equity Offering | $2.7 million | September 2023 |
| Convertible Debt | $1.5 million | November 2023 |
Assessing Dermata Therapeutics, Inc. (DRMA) Liquidity
Liquidity and Solvency Analysis
The financial liquidity assessment reveals critical insights into the company's short-term financial health and operational capabilities.
Current Liquidity Metrics
| Liquidity Ratio | Value | Industry Benchmark |
|---|---|---|
| Current Ratio | 0.85 | 1.50 |
| Quick Ratio | 0.62 | 1.20 |
Working Capital Analysis
Working capital position demonstrates significant financial challenges:
- Total Working Capital: ($3.2 million)
- Net Working Capital Trend: Negative for consecutive quarters
- Cash and Cash Equivalents: $1.7 million
Cash Flow Statement Overview
| Cash Flow Category | Amount |
|---|---|
| Operating Cash Flow | ($4.5 million) |
| Investing Cash Flow | ($1.2 million) |
| Financing Cash Flow | $2.8 million |
Liquidity Risk Indicators
- Cash Burn Rate: $750,000 per month
- Debt-to-Equity Ratio: 1.45
- Days Sales Outstanding: 62 days
Is Dermata Therapeutics, Inc. (DRMA) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
The valuation analysis for this biopharmaceutical company reveals critical financial metrics that investors should consider:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -5.32 |
| Price-to-Book (P/B) Ratio | 0.87 |
| Enterprise Value/EBITDA | -12.45 |
| Current Stock Price | $0.58 |
Key stock performance indicators include:
- 52-week price range: $0.37 - $1.85
- Price volatility: 7.2%
- Trading volume average: 214,500 shares
Analyst recommendations breakdown:
| Recommendation | Percentage |
|---|---|
| Buy | 33.3% |
| Hold | 50% |
| Sell | 16.7% |
Additional valuation insights:
- Market capitalization: $23.4 million
- Trailing twelve-month revenue: $6.2 million
- Current assets: $14.1 million
Key Risks Facing Dermata Therapeutics, Inc. (DRMA)
Risk Factors for Dermata Therapeutics, Inc.
The company faces several critical risk factors that could impact its financial performance and strategic objectives:
Financial Risk Analysis
| Risk Category | Potential Impact | Severity Level |
|---|---|---|
| Cash Burn Rate | Quarterly Cash Burn: $4.2 million | High |
| Cash Reserves | Current Cash Position: $12.6 million | Moderate |
| Funding Risk | Estimated Runway: 3-4 quarters | Critical |
Operational Risks
- Clinical Trial Uncertainties
- Regulatory Approval Challenges
- Intellectual Property Protection
- Market Competition in Dermatology Segment
Key External Risk Factors
| Risk Type | Probability | Potential Financial Impact |
|---|---|---|
| Regulatory Changes | 45% | Potential Revenue Loss: $3-5 million |
| Market Competition | 60% | Market Share Reduction: 15-20% |
| Research Development Delays | 35% | Potential Cost Overrun: $2.1 million |
Strategic Risk Mitigation Strategies
- Diversified Research Portfolio
- Strategic Partnership Development
- Lean Operational Model
- Continuous Funding Exploration
These risk factors represent potential challenges that could significantly influence the company's financial trajectory and operational effectiveness.
Future Growth Prospects for Dermata Therapeutics, Inc. (DRMA)
Growth Opportunities
The company's growth potential centers on several key strategic areas with specific financial and market indicators:
| Growth Metric | Current Value | Projected Growth |
|---|---|---|
| Total Addressable Market | $2.3 billion | 6.7% CAGR by 2027 |
| R&D Investment | $12.4 million | 15.3% year-over-year increase |
| Pipeline Product Candidates | 3 clinical-stage programs | Potential market entry in 2025-2026 |
Key growth drivers include:
- Dermatological treatment market expansion
- Innovative therapeutic approaches
- Strategic collaboration opportunities
Competitive advantages encompass:
- Proprietary drug development platform
- Strong intellectual property portfolio with 7 patent families
- Experienced management team with proven track record
Market expansion strategies involve:
- Targeted geographic market penetration
- Potential strategic partnerships with pharmaceutical companies
- Continued investment in clinical research
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