Recent developments highlight Skinvisible's ongoing innovation and patent activity in obesity drug delivery using its Invisicare technology, supporting its strategic focus on expanding applications beyond dermatology.

• Skinvisible filed a patent for an innovative obesity drug delivery system leveraging its Invisicare polymer delivery technology, aiming to enhance transdermal administration of obesity drugs and glucose-controlling agents [N1].

Skinvisible's patented Invisicare technology offers scientifically supported advantages in topical and transdermal delivery, which could appeal to pharmaceutical and consumer goods companies seeking innovative delivery systems. The company's licensing model allows it to monetize its R&D investment without the capital intensity of manufacturing and marketing. Progress in clinical trials by licensee Quoin Pharmaceuticals for QRX003, including FDA fast track and orphan drug designations, and international trial expansions, represent significant execution milestones. The filing of provisional patents for transdermal delivery of obesity and glucose-controlling agents and the exclusive license agreement with Ovation Science targeting a large obesity market highlight potential growth avenues. These developments, combined with ongoing patent activity and strategic partnerships, support the company's efforts to expand its product applications and licensing revenue.

Skinvisible faces significant financial constraints, with minimal revenue, a history of losses, and liquidity ratios indicating limited short-term financial flexibility. The company depends heavily on licensing revenue, which is subject to the success of its licensees' clinical trials and regulatory approvals, which carry inherent uncertainties. Competition from companies with greater resources and established market presence may limit Skinvisible's ability to secure new licenses or maintain existing ones. Regulatory compliance risks, reliance on third-party manufacturers, and the need to raise additional capital pose ongoing challenges. The company's small team and dependence on key management increase operational risks. Failure to generate sufficient revenues or raise capital could adversely affect its ability to continue operations and execute its business plan.

Skinvisible's moat is centered on its patented polymer delivery system, Invisicare®, which offers unique advantages in topical and transdermal drug delivery. The technology enhances the delivery and duration of active ingredients on the skin, reduces irritation, and allows normal skin respiration, which differentiates it from other delivery systems. The company holds numerous patents covering its technology and product formulations, including provisional patents for transdermal delivery of obesity and glucose-controlling agents. Its licensing agreements with pharmaceutical companies, such as Quoin Pharmaceuticals for a product in late-stage clinical trials with regulatory designations, provide potential barriers to entry. However, the company faces competition from firms with longer histories, greater resources, and established customer bases. The reliance on licensing and partnerships, as well as the need for regulatory approvals, also influence the strength of its competitive position.

• Financial and Liquidity Risks: Skinvisible has minimal revenue, a net loss exceeding $1 million for the year ended December 31, 2025, and liquidity ratios indicating a current ratio of 0.01, reflecting significant financial constraints and limited short-term liquidity.
• Dependence on Licensing Revenue and Partnerships: The company's business model relies on licensing its patented products to third parties. Success depends on licensees' ability to advance clinical trials, obtain regulatory approvals, and commercialize products, which are subject to uncertainties and delays.
• Regulatory and Compliance Risks: Skinvisible's products and licensing activities are subject to complex regulatory requirements in the US and internationally. Non-compliance or adverse regulatory actions could require reformulation, relabeling, or other costly measures impacting business operations.
• Competition and Market Risks: The company faces competition from firms with longer operating histories, greater resources, and established customer bases. Limited resources may restrict Skinvisible's ability to invest in sales, marketing, and technological development, affecting competitiveness.
• Operational and Management Risks: Skinvisible has a small team with two employees including the CEO, making it highly dependent on key personnel. Loss of management or inability to attract and retain qualified staff could disrupt operations.
• Manufacturing and Product Liability Risks: The company relies on third-party manufacturers without long-term contracts, exposing it to risks of supply disruption, quality issues, and product liability claims that could adversely affect reputation and financial condition.
• Capital Raising Risks: Skinvisible needs to raise additional capital to fund operations and growth. Failure to secure financing on acceptable terms could limit its ability to develop products, expand sales, and respond to competitive pressures.

• Skinvisible, Inc. operates through its wholly owned subsidiary Skinvisible Pharmaceuticals Inc. as a pharmaceutical R&D company focused on a patented polymer delivery system called Invisicare®.
• The company has developed and patented over forty topical skin products using Invisicare technology, targeting the global skincare, dermatology, and over-the-counter markets, as well as exploring applications in obesity and other medical markets.
• Skinvisible's business model centers on out-licensing its patented prescription and OTC products featuring Invisicare to established manufacturers and marketers internationally, generating revenue from upfront fees and royalties.
• Invisicare is a patented polymer delivery system that enhances topical delivery of active ingredients, extending their duration on the skin, improving efficacy, reducing irritation, and allowing normal skin respiration.
• The company generates revenue primarily through licensing, co-development services for pharmaceutical clients, and life cycle management by reformulating products coming off patent with Invisicare technology.
• Skinvisible has an exclusive license agreement with Quoin Pharmaceuticals for certain patents, including the product QRX003 for Netherton Syndrome, which is in late-stage clinical trials with FDA fast track and orphan drug designations.
• Quoin's clinical trials for QRX003 have shown positive initial data, a clean safety profile, and have expanded to include pediatric and international sites, with ongoing regulatory interactions with the FDA.
• Skinvisible also has a license agreement with Ovation Science for its hand sanitizer product DermSafe and exclusive global rights to use Invisicare technology with cannabinoids for topical/transdermal products targeting obesity and metabolic health.
• The company filed provisional patents in 2024 for transdermal delivery compositions for obesity drugs and glucose-controlling agents, leveraging Invisicare technology to enhance transdermal penetration and controlled release.
• Skinvisible's financial snapshot as of December 31, 2025, shows current assets of $27,531 and current liabilities of $5,017,945, resulting in a low current ratio of 0.01, and a net loss of $1,064,034 for the year with minimal revenue of $20,000.
• The company has a history of losses and an accumulated deficit exceeding $41 million as of December 31, 2025, with limited cash and liquidity ratios indicating financial constraints.
• Skinvisible faces risks including dependence on licensing revenue, competition from companies with greater resources, regulatory compliance challenges, reliance on third-party manufacturers, and the need to raise additional capital to continue operations.
• The company has two employees including the CEO and relies heavily on management for operations and business development.
• Skinvisible's products and licensing activities are subject to complex regulatory environments in the US and internationally, including FDA and FTC regulations for cosmetics and drugs.
• Recent news includes Skinvisible filing a patent for an innovative obesity drug delivery system using its Invisicare technology, highlighting ongoing R&D and patent activity.