8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549  

FORM 8-K 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 3, 2022  

DERMTECH, INC.

(Exact name of registrant as specified in its charter)  

Delaware	001-38118	84-2870849
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

11099 N. Torrey Pines Road, Suite 100

La Jolla, CA 92037

(Address of Principal Executive Offices and Zip Code)

Registrant’s telephone number, including area code (858) 450-4222 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.0001 per share	DMTK	The Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐ 

Item 2.02. Results of Operations and Financial Condition.

On May 3, 2022, the Company issued a press release announcing its financial results for the quarter ended March 31, 2022 and certain other information. This press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information set forth under this Item 2.02 and in Exhibit 99.1 is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities of that section. The information contained herein and in the accompanying exhibit is not to be incorporated by reference in any filing of the Company under the Exchange Act or the Securities Act of 1933, as amended, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release, dated May 3, 2022
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	DERMTECH, INC.
Date: May 3, 2022	By:	/s/ Kevin Sun
	Name:	Kevin Sun
	Title:	Chief Financial Officer

EX-99.1

Exhibit 99.1

DERMTECH REPORTS FIRST-QUARTER 2022 FINANCIAL RESULTS; COMPANY AFFIRMS FULL-YEAR 2022 OUTLOOK

- Record billable sample volume and assay revenue

LA JOLLA, Calif. – May 3, 2022 – DermTech, Inc. (NASDAQ: DMTK) (“DermTech” or the “Company”), a leader in precision dermatology enabled by a non-invasive skin genomics platform, today reported its first-quarter 2022 financial results and affirmed its full-year 2022 outlook.

“We kicked off the year on a record pace for many of our key operating metrics and affirmed our full-year 2022 outlook,” said John Dobak, M.D., CEO, DermTech.  “We also added a payor contract during the first quarter bringing our total covered U.S. lives to approximately 91 million.  Overall, we believe we have excellent long-term growth prospects and that 2022 will be a transformational year as we leverage our commercial scale to address the urgent need to improve the early detection of melanoma.”

First-Quarter 2022 Financial Results

• Billable sample volume grew 53 percent from the first quarter of 2021 to approximately 14,370.

• Assay revenue was $3.5 million, up 61 percent from the first quarter of 2021, primarily due to higher billable sample volume.

• Total revenue was $3.7 million, a 47 percent increase from the first quarter of 2021, driven by higher assay revenue.

• Sales and marketing expenses were $15.4 million, a 137 percent increase from the first quarter of 2021.  The increase was primarily attributable to higher employee-related costs from increased headcount and marketing expenditures.

• Research and development expenses were $6.3 million, a182 percent increasefrom the first quarter of 2021, largely due to higher employee-related and clinical trial costs.

• General and administrative expenses were $8.6 million, a 66 percent increase from the first quarter of 2021.The increase was driven by higher employee-related and infrastructure costs.

• Net loss was $30.1 million, or $1.01 per share, which included $3.9 million of non-cash stock-based compensation expense, as compared to $15.1 million, or $0.55 per share, for the first quarter of 2021, which included $2.2 million of non-cash stock-based compensation expense.

• Cash, cash equivalents, restricted cash and short-term marketable securities were $202.1 million as of March 31, 2022.    

Other Business Highlights

• In March 2022, SKIN: The Journal of Cutaneous Medicine published the OptumInsight economic study, which suggested that using DermTech’s Pigmented Lesion Assay to rule out melanoma can minimize avoidable surgical procedures on benign lesions and decrease downstream costs of late-stage melanoma diagnoses, which reduces overall cost of care.  This model predicted annual net savings of $0.54 per member per month over a three-year period for commercial health plans.

• The Company expanded its telehealth availability through DermTech Connect, which is now available in 44 states and represents 95% of the U.S. population.

2022 Outlook

The Company affirmed its full-year 2022 outlook for assay revenue between $22 million and $26 million.

Conference Call Information

As previously announced, the Company will host a conference call to discuss its results at 5:00 p.m. ET on Tuesday, May 3, 2022. Callers should dial (844) 467-7114 (U.S. only) or (409) 231-2086 (international) to access the call. The conference call ID is 6584229.  The conference call will also be simultaneously webcast. A webcast replay will be available on the Company’s website shortly after the conclusion of the call.  

About DermTech

DermTech is a leading genomics company in dermatology and is creating a new category of medicine, precision dermatology, enabled by its non-invasive skin genomics platform.  DermTech’s mission is to improve the lives of millions by providing non-invasive precision dermatology solutions that enable individualized care.  DermTech provides genomic analysis of skin samples collected non-invasively using our Smart Stickers^TM.  DermTech markets and develops products that facilitate the early detection of skin cancers and is developing products that assess inflammatory diseases and customize drug treatments.  For additional information, please visit DermTech.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of DermTech may differ from its actual results and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, expectations and evaluations with respect to: the performance, patient benefits, cost-effectiveness, commercialization and adoption of DermTech’s products and the market opportunity for these products, DermTech’s positioning and potential revenue growth, financial outlook and future financial performance, implications and interpretations of any study results, and DermTech’s ability to expand its product offerings and develop pipeline products. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside of the control of DermTech and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the outcome of any legal proceedings that may be instituted against DermTech; (2) DermTech’s ability to obtain

additional funding to develop and market its products; (3) the existence of favorable or unfavorable clinical guidelines for DermTech’s tests; (4) the reimbursement of DermTech’s tests by Medicare and private payors; (5) the ability of patients or healthcare providers to obtain coverage of or sufficient reimbursement for DermTech’s products; (6) DermTech’s ability to grow, manage growth and retain its key employees; (7) changes in applicable laws or regulations; (8) the market adoption and demand for DermTech’s products and services together with the possibility that DermTech may be adversely affected by other economic, business, and/or competitive factors; and (9) other risks and uncertainties included in the “Risk Factors” section of the most recent Annual Report on Form 10-K filed by DermTech with the Securities and Exchange Commission (the “SEC”), and other documents filed or to be filed by DermTech with the SEC, including subsequently filed reports. DermTech cautions that the foregoing list of factors is not exclusive. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. DermTech does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

Contact

Steve Kunszabo

DermTech

(858) 291-1647

steve.kunszabo@dermtech.com

DERMTECH, INC.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

	March 31, 2022			December 31, 2021
ASSETS
Current Assets:
Cash and cash equivalents	$	145,053		$	176,882
Short-term marketable securities		54,053			48,449
Accounts receivable		4,995			3,847
Inventory		763			480
Prepaid expenses and other current assets		3,260			3,166
Total current assets		208,124			232,824
Property and equipment, net		5,141			4,549
Operating lease right-of-use assets		23,065			7,744
Restricted cash		3,025			3,025
Other assets		167			167
Total assets	$	239,522		$	248,309
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	1,575		$	2,880
Accrued compensation		6,643			5,120
Accrued liabilities		3,041			1,227
Short-term deferred revenue		1,350			1,380
Current portion of operating lease liabilities		1,703			1,453
Current portion of finance lease obligations		112			121
Total current liabilities		14,424			12,181
Warrant liability		129			146
Long-term finance lease obligations, less current portion		105			136
Operating lease liabilities, long-term		21,383			6,148
Total liabilities		36,041			18,611
Stockholders’ equity:
Common stock, $0.0001 par value per share; 50,000,000 shares    authorized as of March 31, 2022 and December 31, 2021;    29,940,637 and 29,772,922 shares issued and outstanding at    March 31, 2022 and December 31, 2021, respectively		3			3
Additional paid-in capital		440,644			436,183
Accumulated other comprehensive loss		(694	)		(124	)
Accumulated deficit		(236,472	)		(206,364	)
Total stockholders’ equity		203,481			229,698
Total liabilities and stockholders’ equity	$	239,522		$	248,309

DERMTECH, INC.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

	Three Months Ended March 31,
	2022			2021
Revenues:
Assay revenue	$	3,518		$	2,190
Contract revenue		200			334
Total revenues		3,718			2,524
Cost of revenues:
Cost of assay revenue		3,530			1,971
Cost of contract revenue		24			31
Total cost of revenues		3,554			2,002
Gross profit		164			522
Operating expenses:
Sales and marketing		15,443			6,512
Research and development		6,338			2,251
General and administrative		8,574			5,172
Total operating expenses		30,355			13,935
Loss from operations		(30,191	)		(13,413	)
Other income/(expense):
Interest income, net		66			34
Change in fair value of warrant liability		17			(1,689	)
Total other income/(expense)		83			(1,655	)
Net loss	$	(30,108	)	$	(15,068	)
Weighted average shares outstanding used in computing net   loss per share, basic and diluted		29,836,072			27,152,868
Net loss per share of common stock outstanding, basic and   diluted	$	(1.01	)	$	(0.55	)

XML

Document and Entity Information	May 03, 2022
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 03, 2022
Entity Registrant Name	DERMTECH, INC.
Entity Central Index Key	0001651944
Entity Emerging Growth Company	false
Entity File Number	001-38118
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-2870849
Entity Address, Address Line One	11099 N. Torrey Pines Road
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	La Jolla
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92037
City Area Code	858
Local Phone Number	450-4222
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock,par value $0.0001 per share
Trading Symbol	DMTK
Security Exchange Name	NASDAQ