Bullish & Foolish
Full DRMA fundamentals All 466 on the Survival Watch

DRMADERMATA THERAPEUTICS, INC.

Is Dermata Therapeutics struggling financially?

Yes, by its own account. Dermata Therapeutics told the SEC on 13 May 2026, in Form 10-Q, that there is substantial doubt about its ability to continue as a going concern.

Going concern disclosed May 2026

11/100

Critical

Cries for help

  • Litigation

    FDA determines any of our marketing materials contain improper structure/function claims for our cosmetic products. In addition, plaintiffs’ lawyers have filed class action lawsuits against some of our competitors after our competitors received these FDA warning letters.

    Form 10-K, filed 26 Mar 2026. Read it on SEC.gov

Signs of a way out

Nothing in the filings we have read names a way out.

Sector
Biotech/Pharma
Market cap
$5.7M
Source filing
10-Q 13 May 2026
Balance sheet
30 Jun 2026

Cash runway

  • 2months

    If the burn speeds up

    Empty by Aug 2026

  • 3months

    If it eases off

    Empty by Sep 2026

Both rows are the same reported burn flexed 15% either way, and neither assumes the company raises a cent.

Out of cashTwo years or more

The runway math

Cash and short-term investments

$4.4M

÷

Cash burned over the last 12 months

$21.7M

What Dermata Therapeutics told the SEC

…to launch its first product candidate in mid-2026, it is uncertain when the Company will generate operating income to sustain operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern for the one-year period following the date that these financial statements were issued. Historically, the Company’s principal sources of cash have included proceeds from the issuance…

DERMATA THERAPEUTICS, INC., Form 10-Q, filed 13 May 2026.

Read the filing on SEC.gov

What this means

  • Not a bankruptcy filing, and not a prediction.
  • It is the company’s own statement, agreed with its auditor, that the doubt is material enough to disclose.
  • The runway is arithmetic on two reported numbers, not a forecast. Companies carry this language for years, raise money and keep going.

What else the numbers show

  • 410.2% share-count increase The company issued stock. Each share now owns 80.4% less of the business than a year ago, before any change in the price.

Other Biotech/Pharma companies that filed the doubt