Full Press Release Details
Journey Medical Corporation Reports First Quarter
2022 Financial Results and Recent Corporate Highlights
Generated record revenue
of $23.3 million for the first quarter of 2022
in Phase 3 clinical program evaluating DFD-29 for the treatment of papulopustular rosacea
Company to hold conference
call on May 10, 2022 at 4:30 p.m. ET
AZ - May 10, 2022 - Journey Medical Corporation (NASDAQ: DERM) ("Journey Medical" or the
"Company"), a commercial-stage pharmaceutical company that focuses on the development and commercialization of pharmaceutical
products for the treatment of dermatological conditions, today announced financial results and recent corporate highlights for the first
quarter ended March 31, 2022.
Claude Maraoui, Journey Medical's Co-Founder,
President and Chief Executive Officer, said, "Journey Medical had a solid start in the first quarter of 2022 positioning us for
another year of continued growth. Financially, we generated record revenue of $23.3 million, a 117% increase from the first quarter of
2021. In addition to this financial achievement, we expanded our available dermatologic product line, with the acquisition and launch
of two prescription dermatology products, Amzeeq and Zilxi ; our product portfolio now has a total of nine marketed prescription
dermatology products. We also dosed the first patient in our pivotal Phase 3 clinical program for DFD-29, which is being evaluated for
the treatment of papulopustular rosacea. Looking ahead, we plan to launch one additional prescription product in the second half of 2022.
We believe Journey Medical remains poised for ongoing success, given our financial and commercial progress coupled with our development
Recent Corporate Highlights:
Conference Call and Webcast Information
Journey Medical management will conduct a conference
call and audio webcast at 4:30 p.m. ET on May 10, 2022.
conference call, interested parties within the U.S. should dial 1-866-777-2509 (domestic) or 1-412-317-5413 (international). All callers
should dial in approximately ten minutes prior to the scheduled start time and ask to be joined into the Journey Medical conference call.
Participants can register for the conference by navigating to https://dpregister.com/sreg/10166245/f268802ed7. Please
note that registered participants will receive their dial in number upon registration.
A live audio webcast
can be accessed on the News and Events page of the Investors section of Journey Medical's website, www.journeymedicalcorp.com,
and will remain available for replay for approximately 30 days after the meeting.
About Journey Medical Corporation
Corporation (NASDAQ: DERM) ("Journey Medical") is focused on identifying, acquiring, developing and strategically
commercializing innovative, differentiated dermatology products through its efficient sales and marketing model. The company currently
markets nine products that help treat and heal common skin conditions. The Journey Medical team is comprised of industry experts with
extensive experience commercializing some of the most successful prescription dermatology brands. Journey Medical is located in Scottsdale,
Arizona and was founded by Fortress Biotech, Inc. (NASDAQ: FBIO). Journey Medical's common stock is registered under the Securities
Exchange Act of 1934, as amended, and it files periodic reports with the U.S. Securities and Exchange Commission ("SEC").
For additional information about Journey Medical, visit www.journeymedicalcorp.com.
Forward-Looking Statements
may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934, as amended. As used below and throughout this press release, the words "we", "us"
and "our" may refer to Journey Medical. Such statements include, but are not limited to, any statements relating to our growth
strategy and product development programs and any other statements that are not historical facts. The words "anticipate,"
"believe," "estimate," "may," "expect," "will," "could," "project,"
"intend" and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements
are based on management's current expectations and are subject to risks and uncertainties that could negatively affect our business,
operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently
anticipated include: risks relating to our growth strategy; our ability to obtain, perform under and maintain financing and strategic
agreements and relationships; risks relating to the results of research and development activities; uncertainties relating to preclinical
and clinical testing; risks relating to the timing of starting and completing clinical trials, including disruptions that may result from
hostilities in Europe; our dependence on third-party suppliers; risks relating to the COVID-19 outbreak and its potential impact on our
employees' and consultants' ability to complete work in a timely manner and on our ability to obtain additional financing
on favorable terms or at all; our ability to attract, integrate and retain key personnel; the early stage of products under development;
our need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well as other
risks described in Part I, Item 1A, "Risk Factors," in our Annual Report on Form 10-K filed on March 28,
2022, subsequent Reports on Form 10-Q, and our other filings we make with the SEC. We expressly disclaim any obligation or undertaking
to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations
or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim
the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Jaclyn Jaffe and Bill Begien
Media Relations Contact:
JOURNEY MEDICAL CORPORATION
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands except for share and per
| March 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 41,331 | $ | 49,081 | ||||
| Accounts receivable, net of reserves | 31,183 | 23,112 | ||||||
| Inventory | 16,137 | 9,862 | ||||||
| Prepaid expenses and other current assets | 1,608 | 2,438 | ||||||
| Total current assets | 90,259 | 84,493 | ||||||
| Intangible assets, net | 30,457 | 12,552 | ||||||
| Operating lease right-of-use asset, net | 67 | 89 | ||||||
| Other assets | 118 | 150 | ||||||
| Total assets | $ | 120,901 | $ | 97,284 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 26,959 | $ | 22,812 | ||||
| Due to related party | 511 | 641 | ||||||
| Accrued expenses | 25,885 | 22,733 | ||||||
| Accrued interest | 66 | - | ||||||
| Income taxes payable | 112 | 8 | ||||||
| Line of credit | - | 812 | ||||||
| Deferred cash payment (net of discount of $206 and $0 as of March 31, 2022 and December 31, 2021, respectively) | 4,794 | - | ||||||
| Installment payments - licenses, short-term (net of debt discount of $431 and $490 as of March 31, 2022 and December 31, 2021, respectively) | 2,569 | 4,510 | ||||||
| Operating lease liabilities, short-term | 74 | 98 | ||||||
| Total current liabilities | 60,970 | 51,614 | ||||||
| Term loan (net of debt discount of $223 and $0 as of March 31, 2022 and December 31, 2021, respectively) | 14,777 | - | ||||||
| Installment payments - licenses, long-term (net of debt discount of $284 and $373 as of March 31, 2022 and December 31, 2021, respectively) | 3,716 | 3,627 | ||||||
| Total liabilities | 79,463 | 55,241 | ||||||
| Stockholders' equity | ||||||||
| Common stock, $.0001 par value, 50,000,000 shares authorized, 11,318,344 and 11,316,344 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 1 | 1 | ||||||
| Common stock - Class A, $.0001 par value, 50,000,000 shares authorized, 6,000,000 shares issued and outstanding as of March 31, 2022 and December 31, 2021 | 1 | 1 | ||||||
| Additional paid-in capital | 81,688 | 80,915 | ||||||
| Accumulated deficit | (40,252 | ) | (38,874 | ) | ||||
| Total stockholders' equity | 41,438 | 42,043 | ||||||
| Total liabilities and stockholders' equity | $ | 120,901 | $ | 97,284 |
Consolidated Statements of Operations
in thousands except for share and per share amounts)
| Three-Month Periods Ended | ||||||||
| March 31, | ||||||||
| 2022 | 2021 | |||||||
| Revenue: | ||||||||
| Product revenue, net | $ | 20,796 | $ | 10,719 | ||||
| Other revenue | 2,500 | - | ||||||
| Total Revenue | 23,296 | 10,719 | ||||||
| Operating expenses | ||||||||
| Cost of goods sold - product revenue | 8,203 | 3,908 | ||||||
| Research and development | 1,266 | - | ||||||
| Selling, general and administrative | 14,715 | 6,226 | ||||||
| Total operating expenses | 24,184 | 10,134 | ||||||
| (Loss) income from operations | (888 | ) | 585 | |||||
| Other expense | ||||||||
| Interest income | (3 | ) | - | |||||
| Interest expense | 389 | 221 | ||||||
| Total other expense | 386 | 221 | ||||||
| Net (loss) income before income taxes | (1,274 | ) | 364 | |||||
| Income tax (benefit) expense | 104 | 96 | ||||||
| Net (loss) income | $ | (1,378 | ) | $ | 268 | |||
| Net (loss) income per common share - basic | $ | (0.08 | ) | $ | 0.03 | |||
| Net (loss) income per common share - diluted | $ | (0.08 | ) | $ | 0.02 | |||
| Weighted average shares outstanding - basic | 17,318,344 | 9,158,333 | ||||||
| Weighted average shares outstanding - diluted | 17,318,344 | 10,897,096 |
Use of Non-GAAP Measures:
In addition to the GAAP financial measures as
presented in our Form 10-Q that will be filed with the Securities and Exchange Commission ("SEC"), the Company has, in
this press release, included certain non-GAAP measurements, including Adjusted EBITDA (Adjusted Operating Net Income), Adjusted Operating
Net Income per share basic and Adjusted Net Income per share diluted. We define Adjusted EBITDA (Adjusted Operating Net Income) as net
income (loss) plus interest, taxes and depreciation, less certain other non-cash items, namely, stock-based compensation expense, amortization
of acquired intangible assets, inventory step-up, as more fully described as follows:
Adjusted Operating Net Income per share basic
and Adjusted Net Income per share diluted are determined by dividing the resulting Adjusted EBITDA (Adjusted Operating Net Income) by
the number of shares outstanding on an actual and fully diluted basis.
Management believes use of these non-GAAP measures
provide meaningful supplemental information regarding the Company's performance because (i) it allows for greater transparency
with respect to key measures used by management in its financial and operational decision-making, (ii) it excludes the impact of
non-cash or, when specified, non-recurring items that are not directly attributable to the Company's core operating performance
and that may obscure trends in the Company's core operating performance and (iii) it is used by institutional investors and
the analyst community to help analyze the Company's results. However, Adjusted EBTIDA (Adjusted Operating Net Income), Adjusted Operating
Net Income per share basic, Adjusted Net Income per share diluted and any other non-GAAP financial measures should be considered as a
supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Further, non-GAAP
financial measures used by the Company and the manner in which they are calculated may differ from the non-GAAP financial measures or
the calculations of the same non-GAAP financial measures used by other companies, including the Company's competitors.
The table below provides a reconciliation from
GAAP to non-GAAP measures:
JOURNEY MEDICAL CORPORATION
Reconciliation of GAAP to Non-GAAP Adjusted
EBITDA (Adjusted Operating Net Income)
(Dollars in thousands except for share and per
| Three-Month Periods Ended | |||||||||
| March 31, | |||||||||
| 2022 | 2021 | ||||||||
| GAAP Net (Loss) income | $ | (1,378 | ) | $ | 268 | ||||
| EBITDA: | |||||||||
| Interest | 386 | 221 | |||||||
| Taxes | 104 | 96 | |||||||
| Depreciation | - | - | |||||||
| Amortization of acquired intangible assets | 1,017 | 584 | |||||||
| EBITDA | 129 | 1,169 | |||||||
| Non-GAAP Adjusted EBITDA (Adjusted Operating Net Income): | |||||||||
| Share-based compensation | 773 | 22 | |||||||
| Inventory step-up expense | 140 | - | |||||||
| Non-core & short-term R&D | 1,266 | - | |||||||
| Non-GAAP Adjusted EBITDA (Adjusted Operating Net Income) | $ | 2,308 | $ | 1,191 | |||||
| Per common share - basic: | |||||||||
| GAAP Net (loss) income | $ | (0.08 | ) | $ | 0.03 | ||||
| Non-GAAP Net income | $ | 0.13 | $ | 0.13 | |||||
| Per common share - diluted: | |||||||||
| GAAP Net (loss) income | $ | (0.08 | ) | $ | 0.03 | ||||
| Non-GAAP Net income | $ | 0.11 | $ | 0.11 | |||||
| GAAP weighted average common shares outstanding - basic | (1) | 17,318,344 | 9,158,333 | ||||||
| GAAP weighted average common shares outstanding - diluted | 20,341,996 | 10,897,096 |
Reflects both basic and dilutive for computing the GAAP Net loss EPS as the GAAP Net loss is antidilutive and the effect would be to reduce