Turn Therapeutics Inc. (TTRX) SEC Filings & Earnings Calls

CEO control concentration

“Bradley Burnam ... Number 15,116,260 ... Percent 49.51 %”

Stockholders agreement grants CEO veto power over major actions

“The stockholders agreement provides that for so long as Mr. Burnam beneficially owns at least 10% of the issued and outstanding shares of our Common Stock, certain actions by us will require the approval of Mr. Burnam” · word for word

Director Arthur Golden's dual role as investment advisor to CEO's family trusts creates potential conflict of interest

“Arthur Golden ... serves as investment advisor to each of the Trusts and, in that capacity, has sole power to direct the trustee of each Trust to vote and dispose of the shares held by that Trust.” · word for word

Clinical trial risk: Phase 2 AD trial topline results not expected until Q1 2027; no interim data.

“Phase 2 RCT trial underway for moderate to severe AD, topline results expected Q1 2027.” · word for word

Clinical-stage company with no approved products; high development risk.

“a clinical-stage biotechnology company developing targeted, non-systemic therapies” · word for word

Dilution from warrant exercise may pressure stock price.

“Issuance of 579,664 shares via cashless exercise.”

Dilution from new shares issued.

“Issuance of 135,000 shares.”

Going Concern Risk

“Our consolidated financial statements therefore express substantial doubt about our ability to continue as a going concern” · word for word

Funding Risk

“We will need substantial additional funding to support our continuing drug development and operations and pursue our growth strategy” · word for word

Clinical Trial Risk

“The process of conducting the necessary clinical research to obtain regulatory approval is costly and time-consuming, and the successful development of our candidates is highly uncertain” · word for word

No Revenue Risk

“We did not generate any revenue or incur any cost of goods sold during the six months ended June 30, 2026 and 2025” · word for word

Clinical-stage biotech with no approved products; depends on successful Phase 2/3 outcomes and regulatory approvals.

“Company is clinical-stage; Phase 2 enrollment expected to complete Q4 2026; cash funds operations into Q3 2027.”

Small sample size (n=14 GX-03, n=18 vehicle) and subgroup analysis; early-stage data with limited statistical power.

“Interim Analysis - EASI 1.1 – 7 Subgroup Presents as Meaningful on Key Disease Clearance Endpoints” · word for word

Going concern risk

“Our capital resources may not be sufficient to fund operations through at least the next 12 months from the date that these unaudited condensed consolidated financial statements as of March 31, 2026 are issued based on our expected cash needs, which raises substantial doubt about our ability to continue as a going concern.” · word for word

Derivative liability volatility

“Net gain from change in fair value of derivative liability instrument $ 697,561 for Q1 2026 vs $0 for Q1 2025.”

Concentration risk with vendor

“The majority of our accounts payable and accrued expenses are concentrated with one vendor having a balance of approximately $1.2 million which represents approximately 53% of our accounts payable and accrued expenses as of March 31, 2026.” · word for word

Clinical-stage company with no approved products; Phase 2 trial failure would significantly impair value.

“Phase 2 trial for GX-03 in moderate-to-severe atopic dermatitis; topline results expected mid-2026.”

Reliance on additional $18M milestone-based funding; failure to achieve milestones may create liquidity shortfall.

“Up to an additional $18 million available upon achievement of clinical and corporate milestones.” · word for word

Operating losses increasing as company scales G&A and R&D; no revenue expected until product approval.

“Net loss $970,972 vs $328,547; G&A $1.1M vs $0.4M.”

Going Concern

“Our consolidated financial statements therefore express substantial doubt about our ability to continue as a going concern.” · word for word

Financing Risk

“We currently anticipate that we will require up to approximately $60.0 to $65.0 million to complete our planned Phase 3 trials for eczema and onychomycosis.” · word for word

Clinical Trial Risk

“GX-03 is currently being evaluated in an ongoing, randomized, double-blind, vehicle-controlled clinical study designed to assess its potential as a topical treatment for moderate-to-severe eczema. Topline results are expected mid-2026.”

Dilution Risk

“GEM agreed to purchase up to $85.0 million in shares of our common stock. GEM purchased 1,235,200 shares of common stock at approximately $3.29 per share resulting in gross proceeds of $4.07 million to us.”

Clinical-stage company with no approved products; reliance on GX-03 success.

“Lead investigational drug GX-03 in Phase 2; no revenue yet.”

Significant operating losses and negative cash flow; cash burn rate high.

“Net loss $3.19M in FY2025; G&A expenses increased 260% due to public listing costs.”

Venture debt facility adds leverage and milestone risk.

“$25M venture debt with milestones; $7M initial tranche drawn.”

Cash burn rate; $3.11M cash may fund operations for limited period given current loss rate.

“Net loss $1.9M in quarter; cash $3.11M.”

Clinical-stage company with no approved products; pipeline risk.

“Lead program in eczema; data expected early 2026.”

Going Concern Risk

“Our capital resources may not be sufficient to fund operations through at least the next 12 months from the date that these unaudited condensed consolidated financial statements as of September 30, 2025 are issued based on our expected cash needs, which raises substantial doubt about our ability to continue as a going concern.” · word for word

Dilution Risk from Equity Financing

“We entered into the GEM Share Purchase Agreements, pursuant to which GEM agreed to purchase up to $85.0 million in shares of our common stock subject to certain conditions and limitations.” · word for word

Material Weakness in Internal Controls

“We identified a material weakness in our internal control over financial reporting due to a lack of segregation of duties.”