SCHEDULE: Bigger Capital, Michael Bigger Boost Dermata Therapeutics Stake

Michael Bigger and affiliated entities, Bigger Capital and District 2 Capital, have disclosed a combined beneficial ownership of 9.89% in Dermata Therapeutics, Inc.

Summary

• Bigger Capital Fund L P and Bigger Capital Fund GP, LLC beneficially own 239,103 shares of Dermata Therapeutics, Inc. common stock, representing 7.88% of the class, including 200,000 shares issuable from Pre-Funded Warrants.
• District 2 Capital Fund LP, District 2 Capital LP, District 2 GP LLC, and District 2 Holdings LLC beneficially own 61,000 shares, representing 2.01% of the class.
• Michael Bigger, as managing member of Bigger GP and District 2 Holdings, is deemed to beneficially own a total of 300,103 shares, equating to approximately 9.89% of the outstanding common stock.
• The reported percentages are based on 2,835,343 shares outstanding as of January 14, 2026, plus 200,000 shares from exercised Pre-Funded Warrants.
• The beneficial ownership calculations exclude a significant number of shares tied to various warrants (Pre-Funded, Series C, Series D, and Public Warrants) due to beneficial ownership limitations and shareholder approval requirements.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, as increased institutional ownership, particularly by a group led by Michael Bigger, can signal confidence in the company's future, despite the complexities of warrant conversions.

Positives

• Increased significant ownership by institutional and individual investors, potentially signaling confidence in Dermata Therapeutics.
• Michael Bigger's aggregate ownership of nearly 10% could indicate a strong belief in the company's long-term prospects.

Negatives

• The existence of various warrants with beneficial ownership limitations and shareholder approval requirements suggests potential future dilution if these warrants are fully exercised.
• The exclusion of a large number of shares from the current beneficial ownership calculation due to these limitations means the reported percentage does not reflect the full potential stake these entities could hold.

Risks

• Potential future dilution from the exercise of Pre-Funded Warrants, Series C Warrants, Series D Warrants, and DRMAW Public Warrants.
• Shareholder approval is required for the exercise of Series C and Series D Warrants, introducing uncertainty regarding their conversion.
• Beneficial ownership limitations (e.g., 9.99% and 4.99%) restrict immediate full conversion of warrants, which could impact capital structure flexibility.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that significant ownership disclosures by investment funds like Bigger Capital and District 2 Capital in a biotechnology company like Dermata Therapeutics can often be interpreted as a vote of confidence, especially given the capital-intensive nature of drug development. Such filings are closely watched by the market for signs of institutional interest or potential activist positions, though this filing explicitly states the shares were not acquired for control purposes.

Related Party Transactions

• Michael Bigger is the managing member of Bigger Capital Fund GP, LLC (general partner of Bigger Capital Fund L P) and the managing member of District 2 Holdings LLC (managing member of District 2 GP LLC, which is the general partner of District 2 Capital Fund LP). This structure indicates a consolidated control over the reported beneficial ownership by Michael Bigger.

Stakeholder Impact

• Shareholders: The increased institutional ownership could provide stability and potentially attract further investor interest. However, the future exercise of warrants could lead to dilution, impacting existing shareholders' percentage ownership.

Next Steps

• Shareholder approval for the exercise of Series C and Series D Warrants will be required.

Key Dates

Recommendation

The filing indicates a significant, consolidated ownership stake by Michael Bigger and his affiliated funds, which can be a positive signal of investor confidence. However, the substantial number of outstanding warrants, subject to beneficial ownership limitations and shareholder approval, introduces uncertainty regarding potential future dilution. While the current ownership is notable, the full impact of these warrants on the capital structure and share price is yet to be realized, warranting a 'hold' position for existing investors to observe further developments. New investors should consider the potential for dilution before initiating a position.

Keywords

Dermata Therapeutics, DRMA, Bigger Capital, District 2 Capital, Michael Bigger, Schedule 13G, Beneficial Ownership, Common Stock, Warrants, Institutional Investor, Biotechnology, Pharmaceuticals