Full Press Release Details
Journey Medical Corporation Reports Full-Year
2022 Financial Results and Recent Corporate Highlights
Generated record total
revenues of $73.7 million for the full year 2022
Completed enrollment
in Phase 3 clinical program evaluating DFD-29 for the treatment of papulopustular rosacea; topline data are expected in the first half
Company to hold conference
call on March 29, 2023 at 4:30 p.m. ET
Scottsdale, AZ - March 29, 2023 -
Journey Medical Corporation (Nasdaq: DERM) ("Journey Medical"), 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 fourth quarter and full year ended December 31, 2022.
Claude Maraoui, Journey Medical's Co-Founder,
President and Chief Executive Officer, said, "Our first year as a public company had many achievements and challenges, including
the impact of generic competition on our Targadox brand and supply chain issues for Ximino and Exelderm , which were resolved
in 2022. Looking beyond these challenges, and forward into 2023, we have accomplished a great deal over this past year, particularly revenue
growth for Qbrexza and Accutane in addition to the revenue contribution of Amzeeq and Zilxi , acquired in January 2022.
These four products accounted for approximately 77% of our total revenue for the year. In 2023, we look forward to continued revenue growth
from these products and achieving clinical milestones in our Phase 3 clinical trials evaluating DFD-29 for the treatment of rosacea. We
expect a top-line data read out from the DFD-29 Phase 3 clinical trials in the second quarter of 2023 and to file a New Drug Application
("NDA") in the second half of 2023."
Recent Corporate Highlights:
Conference Call and Webcast Information
Journey Medical management will conduct a conference
call and audio webcast on March 29, 2023, at 4:30 p.m. ET.
To listen to the 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
10 minutes prior to the scheduled start time and ask to be joined into the Journey Medical conference call. Participants can register
for the conference here: https://dpregister.com/sreg/10175797/f5f355fdea. 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
Journey Medical 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 eight products that help treat and heal common
skin conditions. The Journey Medical team comprises industry experts with extensive experience in developing and commercializing some
of dermatology's most successful prescription 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
This press release 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 "the Company",
"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; 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; potential recovery of funds lost from previously disclosed cyber security breaches; as well as other risks described in
Part I, Item 1A, "Risk Factors," in our Annual Report on Form 10-K for the year ended December 31, 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
Media Relations Contact:
JOURNEY MEDICAL CORPORATION
Condensed Consolidated
($ in thousands except
for share and per share amounts)
| December 31, | ||||||||
| 2022 | 2021 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 32,003 | $ | 49,081 | ||||
| Accounts receivable, net of reserves | 28,208 | 23,112 | ||||||
| Inventory | 14,159 | 9,862 | ||||||
| Prepaid expenses and other current assets | 3,309 | 2,438 | ||||||
| Total current assets | 77,679 | 84,493 | ||||||
| Intangible assets, net | 27,197 | 12,552 | ||||||
| Operating lease right-of-use asset, net | 189 | 89 | ||||||
| Other assets | 95 | 150 | ||||||
| Total assets | $ | 105,160 | $ | 97,284 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 36,570 | $ | 22,812 | ||||
| Due to related party | 413 | 641 | ||||||
| Accrued expenses | 19,388 | 22,733 | ||||||
| Accrued interest | 160 | - | ||||||
| Income taxes payable | 35 | 8 | ||||||
| Line of credit | 2,948 | 812 | ||||||
| Deferred cash payment (net of discount of $9) | 4,991 | - | ||||||
| Installment payments - licenses, short-term | 2,244 | 4,510 | ||||||
| Operating lease liability, short-term | 83 | 98 | ||||||
| Total current liabilities | 66,832 | 51,614 | ||||||
| Term loan (net of debt discount of $180) | 19,826 | - | ||||||
| Installment payments - licenses, long-term | 1,412 | 3,627 | ||||||
| Operating lease liability, long-term | 108 | - | ||||||
| Total liabilities | 88,178 | 55,241 | ||||||
| Stockholders' equity | ||||||||
| Common stock, $.0001 par value, 50,000,000 shares authorized, 11,765,700 and 11,316,344 shares issued and outstanding as of December 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 December 31, 2022 and December 31, 2021 | 1 | 1 | ||||||
| Additional paid-in capital | 85,482 | 80,915 | ||||||
| Accumulated deficit | (68,502 | ) | (38,874 | ) | ||||
| Total stockholders' equity | 16,982 | 42,043 | ||||||
| Total liabilities and stockholders' equity | $ | 105,160 | $ | 97,284 |
Consolidated Statements of Operations
except for share and per share amounts)
| Three-month periods ended | Twelve-month periods ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue: | ||||||||||||||||
| Product revenue, net | $ | 15,921 | $ | 17,517 | $ | 70,995 | $ | 63,134 | ||||||||
| Other revenue | 45 | - | 2,674 | - | ||||||||||||
| Total Revenue | 15,966 | 17,517 | 73,669 | 63,134 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Cost of goods sold - product revenue | 7,718 | 9,525 | 30,775 | 32,084 | ||||||||||||
| Research and development | 4,256 | 1,992 | 10,943 | 2,739 | ||||||||||||
| Research and development - licenses acquired | - | - | - | 13,819 | ||||||||||||
| Selling, general and administrative | 13,987 | 15,057 | 59,468 | 39,833 | ||||||||||||
| Wire transfer fraud loss | - | - | - | 9,540 | ||||||||||||
| Total operating expenses | 25,961 | 26,574 | 101,186 | 98,015 | ||||||||||||
| Loss from operations | (9,995 | ) | (9,057 | ) | (27,517 | ) | (34,881 | ) | ||||||||
| Other expense | ||||||||||||||||
| Interest income | (50 | ) | - | (60 | ) | (2 | ) | |||||||||
| Interest expense | 617 | 4,096 | 2,019 | 7,034 | ||||||||||||
| Foreign exchange transaction losses | 67 | - | 89 | - | ||||||||||||
| Change in fair value of derivative liability | - | 263 | - | 447 | ||||||||||||
| Total other expense | 634 | 4,359 | 2,048 | 7,479 | ||||||||||||
| Loss before income taxes | (10,629 | ) | (13,416 | ) | (29,565 | ) | (42,360 | ) | ||||||||
| Income tax expense | 13 | 8,335 | 63 | 1,634 | ||||||||||||
| Net Loss | $ | (10,642 | ) | $ | (21,751 | ) | $ | (29,628 | ) | $ | (43,994 | ) | ||||
| Net loss per common share: | ||||||||||||||||
| Basic and diluted | $ | (0.60 | ) | $ | (1.64 | ) | $ | (1.69 | ) | $ | (4.32 | ) | ||||
| Weighted average number of common shares: | ||||||||||||||||
| Basic and diluted | 17,729,238 | 13,244,773 | 17,531,274 | 10,189,844 |
Use of Non-GAAP Measures:
In addition to the GAAP financial measures as
presented in our Form 10-K 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 EBITDA per share basic and Adjusted EBITDA
per share diluted. We define Adjusted EBITDA as net income (loss) excluding interest, taxes and depreciation, less certain other non-cash
and infrequent items not considered to be normal, recurring operating expenses, including, share-based compensation expense, amortization
of acquired intangible assets, inventory step-ups from the purchases of intangibles assets and products, severance, wire transfer fraud
loss and foreign exchange transaction losses. In particular, we exclude the following matters for the reasons more fully described below:
Adjusted EBITDA per share basic and Adjusted EBITDA
per share diluted are determined by dividing the resulting Adjusted EBITDA by the number of shares outstanding on an actual and fully
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 EBITDA, Adjusted EBITDA per share basic, Adjusted EBITDA 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
GAAP to Non-GAAP Adjusted EBITDA (Adjusted Operating Net Loss)
(Dollars in thousands
except for share and per share amounts)