SKINVISIBLE, INC. Annual Report - How They Did This Year

I’ve put together this guide to help you understand Skinvisible’s performance over the past year. My goal is to cut through the corporate jargon so you can decide if this business fits your portfolio.

1. What does this company do?

Think of Skinvisible as a behind-the-scenes inventor for the skincare world. Instead of selling lotions on store shelves, they develop and patent a delivery technology called Invisicare.

This technology creates a film on the skin that releases ingredients slowly. This helps the skin absorb medicine better and reduces irritation. They act as a business-to-business partner, making money through licensing fees, milestone payments, and long-term royalties (usually 5% to 10% of sales) once their partners sell the final products.

2. How are they performing?

Skinvisible is moving from research to commercial success. Their main value comes from a licensing deal with Quoin Pharmaceuticals for QRX003, a treatment for a rare, life-threatening skin disorder called Netherton Syndrome.

Progress over the last year has been significant:

• Regulatory Wins: The FDA and European regulators granted "Orphan Drug" and "Fast Track" status. These provide major advantages, including seven years of market exclusivity, tax credits, and faster communication with regulators to speed up the approval process.
• Clinical Success: Quoin expanded clinical trials to the UK and Saudi Arabia. Data shows that patients using the Invisicare formula saw a major reduction in symptoms, with many moving from "severe" to "mild."
• The Path Forward: Regulators confirmed that one final study could support an approval application. This gives the company a clearer roadmap toward a potential launch in 2027.

3. Financial Health & Risks

This is a high-risk, high-reward situation. Skinvisible has a lean balance sheet, with about $0.8 million in cash. They rely on debt and partner payments to fund their work.

• The "Waiting Game": The company is not yet profitable. Their cash flow depends on their partners. While they received a $1 million fee from Quoin, a larger $5 million payment depends on regulatory approval. If trials are delayed or fail, the company may need to issue more shares, which reduces your ownership percentage, or take on more debt.
• New Bets: The company is now entering the weight-loss drug market. Through a partnership with Ovation Science, they are testing Invisicare for delivering weight-loss drugs through the skin. This targets a massive market and aims to provide a needle-free alternative to current injections.

4. The Future Outlook

The next 12–24 months are critical. If Quoin successfully launches QRX003, Skinvisible will start collecting ongoing royalties. This would help cover their operating costs. Meanwhile, their weight-loss trials will determine if they can attract larger pharmaceutical partners, which could significantly change the company’s value.

The Bottom Line: You aren't buying a stable, established company. You are betting that their technology will be proven by big pharmaceutical partners. If those partners succeed, Skinvisible wins through royalty payments. If the technology fails or partners run out of money, the company faces serious cash shortages and the risk of issuing more shares.

Investor Checklist:

• Monitor the Quoin partnership: Watch for updates on the final clinical study for QRX003.
• Track the cash runway: Keep an eye on their cash balance in quarterly filings to see how long they can operate before needing more funding.
• Watch for new deals: Any announcement of a major pharmaceutical partner for the weight-loss program would be a significant signal of the technology's market viability.