SCHEDULE: Intracoastal Capital Discloses 5.5% Stake in Dermata Therapeutics

Intracoastal Capital LLC, along with Mitchell P. Kopin and Daniel B. Asher, reported a 5.5% beneficial ownership stake in Dermata Therapeutics, Inc.

Summary

• Reporting Persons: Mitchell P. Kopin, Daniel B. Asher, and Intracoastal Capital LLC have filed a Schedule 13G.
• Issuer: The filing pertains to Dermata Therapeutics, Inc. (CUSIP: 249845405).
• Beneficial Ownership: As of January 2, 2026, the Reporting Persons collectively beneficially own 147,059 shares of Dermata Therapeutics' common stock.
• Percentage of Class: This ownership represents approximately 5.5% of the common stock outstanding, based on 2,660,110 shares outstanding as of December 24, 2025.
• Shared Control: The Reporting Persons hold shared voting and shared dispositive power over all 147,059 beneficially owned shares.
• Warrant Holdings: Intracoastal Capital LLC also holds four warrants (Intracoastal Warrant 1, 2, 3, and 4) for an additional 322,799 shares of common stock.
• Warrant Restrictions: These warrants are currently not exercisable due to blocker provisions that prevent beneficial ownership from exceeding 4.99% and, for three of the warrants, require stockholder approval for the issuance of shares upon exercise.
• Potential Ownership: Without these blocker provisions and assuming exercisability, the Reporting Persons could potentially beneficially own 469,758 shares of common stock.

Sentiment

Score: 6

Explanation: The filing indicates a significant institutional investment in Dermata Therapeutics, which can be viewed positively as a vote of confidence. However, the limitations on warrant exercisability and the explicit statement that the stake is not for control purposes temper the immediate positive impact.

Positives

• A new institutional investor, Intracoastal Capital LLC, has taken a significant 5.5% stake in Dermata Therapeutics, which can signal confidence in the company's prospects.
• The Reporting Persons hold warrants for an additional 322,799 shares, indicating a potential for increased ownership in the future, subject to certain conditions.

Negatives

• A significant portion of the potential ownership (322,799 shares from warrants) is currently restricted by blocker provisions and/or requires stockholder approval, limiting immediate upside from these holdings.
• The filing explicitly states that the securities were not acquired for the purpose of changing or influencing control of the issuer, suggesting a passive investment approach.

Risks

• The exercisability of three warrants (Intracoastal Warrant 1, 2, and 3) for 320,115 shares is contingent on stockholder approval, which may not be obtained, preventing the Reporting Persons from increasing their stake through these instruments.
• Blocker provisions in all four warrants prevent the holder from exceeding 4.99% beneficial ownership, limiting the immediate ability to accumulate a larger stake or exert greater influence without further action or regulatory changes.

Future Outlook

The filing does not provide forward-looking statements or guidance from the issuer. It details the current beneficial ownership of certain reporting persons and their potential future ownership via warrants, subject to specific conditions.

Industry Context

This filing indicates an investment firm, Intracoastal Capital LLC, has taken a significant stake in Dermata Therapeutics. Such filings are common in the biotechnology and pharmaceutical sectors, where investment firms often take positions in companies with promising pipelines or strategic potential. The presence of blocker provisions in warrants is also a common mechanism to manage beneficial ownership thresholds and avoid certain regulatory triggers.

Stakeholder Impact

• Shareholders: May view the institutional investment as a positive signal, potentially increasing confidence in the company. The potential for future warrant exercise could lead to dilution if not managed carefully, but also indicates a long-term interest from the investor.

Next Steps

• Dermata Therapeutics' stockholders may need to approve the issuance of shares upon exercise of Intracoastal Warrant 1, 2, and 3 for the reporting persons to increase their beneficial ownership beyond the current 5.5%.

Key Dates

Keywords

Dermata Therapeutics, Intracoastal Capital, Schedule 13G, Beneficial Ownership, Equity Stake, Warrants, Investment, Common Stock, Biotechnology