Quoin Pharmaceuticals, Ltd. Annual Report: A Plain-English Guide

I have put together this guide to help you understand how Quoin Pharmaceuticals performed this year. My goal is to turn complex financial filings into clear information so you can decide if this company fits your investment goals.

1. What does the company do?

Quoin is a specialty pharmaceutical company focused on developing treatments for rare skin diseases, such as Netherton Syndrome, Peeling Skin Syndrome, and Palmoplantar Keratoderma.

Because Quoin is still in the development stage, they do not yet sell products or earn revenue. This year, they focused entirely on research and development, specifically moving their lead drug, QRX003, through clinical trials. The company is currently in a high-pressure cycle of raising capital to fund these expensive medical programs.

2. Financial performance

Quoin is currently operating at a loss, which is common for a biotech firm that has not yet launched a product. For the year ending December 31, 2025, the company reported a loss of approximately $18.4 million, compared to $15.2 million the previous year.

The majority of their spending is directed toward research and development, which cost $12.1 million this year. Since its inception, the company has accumulated a deficit of over $85 million. For investors, the most critical metric is the "cash burn rate"—the speed at which they spend their cash. They are currently spending between $1.2 million and $1.5 million every month.

3. Major changes: The Reverse Split

In April 2025, the company performed a 1-for-35 reverse stock split to meet the Nasdaq requirement that shares trade for at least $1.00.

This move consolidated the number of shares from 2.2 billion down to approximately 63 million. It did not change the actual value of the company; rather, it was a defensive move to maintain their listing on the stock exchange, which is necessary for the company to raise future capital.

4. Financial health

Quoin is in a high-stakes phase. Their auditors have expressed doubt about the company’s ability to continue as a going concern without raising additional capital. As of March 2026, they held approximately $4.2 million in cash.

To maintain operations, they rely on selling more shares, which reduces your ownership percentage. For example, they raised $8 million in October 2025 by selling new shares and warrants. These warrants allow investors to buy more shares later, which can put downward pressure on the stock price.

5. Key risks

The biggest risk for shareholders is that the company must repeatedly sell new shares to fund operations, which dilutes your ownership. Additionally, they face significant "all-or-nothing" risks:

• Trial Success: The company’s value is tied to the results of QRX003. If their clinical trials fail, the investment could lose almost all its value.
• Regulatory Hurdles: While the FDA has granted special designations, these do not guarantee that the drug will be approved as safe or effective.
• Funding Constraints: Agreements from their October 2025 fundraising limit their ability to negotiate better terms, which may force them into unfavorable financing in the future.

6. Future outlook

Quoin’s survival depends on the FDA approval process. Their strategy is to complete clinical trials and secure a partner to help cover the high costs of development. They are a small player in a crowded market, and their future depends on proving their treatments work better than current options. Investors should expect continued volatility and potential share sales until the company reaches a major clinical milestone or is acquired.

Final Thought for Investors: Quoin is a high-risk, speculative investment. Because they have no revenue and a limited cash runway, their survival is entirely dependent on successful clinical results and the ability to raise more money from the market. Before investing, consider whether you are comfortable with the high probability of share dilution and the binary nature of their clinical trial outcomes.