Skinvisible Reports Decreased Assets, Increased Liabilities, and Net Loss in Latest Quarter

As of September 30, 2024, Skinvisible, Inc. reported total current assets of $27.4 million, a decrease from $35.5 million at the end of 2023. Total assets also declined to $148.6 million from $162.9 million. Current liabilities increased to $4.6 million, up from $3.5 million. The company’s accumulated deficit rose to $(40.3 million) from $(39.4 million), while total stockholders' deficit increased to $(9.9 million) from $(9.0 million).

Revenue for the three months ended September 30, 2024, remained unchanged at $5,000, consistent with the same period in 2023. For the nine months ended September 30, 2024, revenue also held steady at $15,000. Operating expenses for the three months increased to $130,000 from $118,000 year-over-year, while for the nine months, they rose to $405,000 from $369,000. The net loss for the three months was $(286,600), slightly improved from $(287,500) in the prior year. However, the net loss for the nine months decreased significantly to $(880,400) from $(2.1 million) in 2023.

The company experienced an increase in accounts payable and accrued liabilities, totaling $711,000 for the nine months ended September 30, 2024, compared to $279,000 in 2023. Net cash used in operating activities improved to $(52,900) from $(73,300) in the previous year. Financing activities provided $61,900, a notable increase from $2,000 in 2023.

Skinvisible's business model focuses on the development and licensing of innovative polymer-based delivery systems, particularly its flagship product, Invisicare. The company is actively pursuing licensing agreements and has made strides in its partnerships, notably with Quoin Pharmaceuticals, which is advancing clinical trials for its product QRX003 targeting Netherton Syndrome. Quoin has reported positive initial data and is expanding its clinical trials internationally.

As of September 30, 2024, the company had 4.9 million shares of common stock issued, up from 4.5 million at the end of 2023. The company’s management plans to generate funding through licensing and seeks additional debt and equity financing. However, there is substantial doubt regarding the company's ability to continue operations within the next year due to ongoing financial losses and the need for capital.

Skinvisible's intangible assets totaled $121,000, with accumulated amortization of $182,000. The company has identified material weaknesses in its internal controls, which it plans to address by appointing qualified personnel and establishing written policies, contingent upon securing additional financing.