Breaking Down Dermata Therapeutics, Inc. (DRMA) Financial Health: Key Insights for Investors

Breaking Down Dermata Therapeutics, Inc. (DRMA) Financial Health: Key Insights for Investors

US | Healthcare | Biotechnology | NASDAQ

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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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