GlobeNewswire Inc | May 11, 2021 04:39PM EDT

May 11, 2021

BASKING RIDGE, NJ, May 11, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Timber Pharmaceuticals, Inc. ("Timber" or the Company) (NYSE American: TMBR), a biopharmaceutical company focused on the development and commercialization of treatments for rare and orphan dermatologic diseases, today provided a business update and announced financial results for the first quarter ended March 31, 2021.

John Koconis, Chairman and Chief Executive Officer of Timber, commented, In the first quarter Timber continued to advance on all of its programs.

-- In January, we announced that the Phase 2b CONTROL Study of Congenital Ichthyosis for our lead asset, TMB-001, had reached 50% enrollment. The Company anticipates topline data readout in the third quarter of 2021 for the TMB-001 study. The Phase 2b clinical trial evaluating TMB-002 (topical rapamycin) for the treatment of facial angiofibromas (FAs) in tuberous sclerosis complex (TSC) has made significant progress towards its clinical milestones as well. -- In March, our development partner on TMB-002, AFT Pharmaceuticals, entered into a licensing agreement for TMB-002 (trade name Pascomer) in Europe with a third party. Under Timbers agreement with AFT, Timber is entitled to a significant share of the royalties and milestones from the third party agreement and we believe that this provides further validation of our program. -- Also in January, we received confirmation that the U.S. Food and Drug Administration (FDA) had granted orphan drug designation for TMB-003, Timbers locally delivered formulation of sitaxsentan, for the treatment of systemic sclerosis. -- All three of our programs now have orphan status and we expect continued progress on the clinical front, which is now being led by the Companys new Chief Medical Officer, Alan Mendelsohn, M.D. who joined our team in January 2021. -- Timber ended the first quarter with $8.5 million cash and common shares outstanding of 36.7 million at March 31, 2021.

We look forward to holding our first shareholder meeting as a public company on June 3rd, 2021 for shareholders of record as of April 12, 2021, concluded Mr. Koconis.

For Timbers complete financial results for the period ended March 31, 2021, see the Companys quarterly Form 10-Q filed with the Securities and Exchange Commission on May 11, 2021.

About Timber Pharmaceuticals, Inc.

Timber Pharmaceuticals, Inc. is a biopharmaceutical company focused on the development and commercialization of treatments for rare and orphan dermatologic diseases. The Company's investigational therapies have proven mechanisms-of-action backed by decades of clinical experience and well-established CMC (chemistry, manufacturing and control) and safety profiles. The Company is initially focused on developing non-systemic treatments for rare dermatologic diseases including congenital ichthyosis (CI), facial angiofibromas (FAs) in tuberous sclerosis complex (TSC), and scleroderma. For more information, visitwww.timberpharma.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and Private Securities Litigation Reform Act, as amended, including those relating to the Company's product development, clinical and regulatory timelines, market opportunity, competitive position, intellectual property rights, possible or assumed future results of operations, business strategies, potential growth opportunities and other statements that are predictive in nature. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which we operate and management's current beliefs and assumptions.

These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential, "predict," "project," "should," "would" and similar expressions and the negatives of those terms. These statements relate to future events or our financial performance and involve known and unknown risks, uncertainties, and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include those set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

For more information, contact:

Timber Pharmaceuticals, Inc. John Koconis Chairman and Chief Executive Officer jkoconis@timberpharma.com

Investor Relations: Stephanie Prince PCG Advisory (646) 863-6341sprince@pcgadvisory.com

Media Relations: Adam DaleyBerry & Company Public Relations(212) 253-8881adaley@berrypr.com

Jenna UrbanBerry & Company Public Relations(212) 253-8881jurban@berrypr.com



- Tables Follow -

Timber Pharmaceuticals, Inc. & SubsidiariesCondensed Consolidated Balance Sheets

March 31, December 31, 2021 2020ASSETS (unaudited) Current assetsCash $ 8,500,053 $ 10,348,693Other current assets 291,929 377,290Total current 8,791,982 10,725,983assetsDeposits 127,534 114,534Right of use asset 854,184 787,432Total assets $ 9,773,700 $ 11,627,949 LIABILITIESAND MEMBERS'AND STOCKHOLDERS'EQUITYCurrent liabilitiesAccounts $ $payable 523,793 395,049Accrued expenses 532,373 768,661Leaseliability, current 278,059 217,651portionTotal current 1,334,225 1,381,361liabilitiesNotes payable 37,772 37,772Lease liability 588,087 579,455Deferred tax liability 37,842 37,842Other liabilities 73,683 73,683Total 2,071,609 2,110,113liabilities Commitmentsand contingencies(Note 8) RedeemableSeries Aconvertiblepreferredstock, parvalue $0.001;2,500 sharesauthorized; 1,945,692 1,909,8051,819 sharesissued andoutstandingas of March31, 2021 andDecember 31,2020 Stockholders' equityCommon stock,par value$0.001;450,000,000sharesauthorized;36,659,685shares issuedand outstanding 36,660 27,132as of March31, 2021, and27,132,420shares issuedandoutstandingas ofDecember 31,2020Additionalpaid-in 25,839,395 25,826,295capitalAccumulated (20,119,656) (18,245,396)deficitTotalstockholders' 5,756,399 7,608,031equityTotalliabilities,redeemableconvertible $ 9,773,700 $ 11,627,949preferredstock, andstockholders'equity

Timber Pharmaceuticals, Inc. & SubsidiariesCondensed Consolidated Statements of Operations(Unaudited)

Three months ended March 31, 2021 2020 Grant revenues $ 40,734 $ 26,907 Operatingcosts and expensesResearch and 849,518 1,018,231developmentTransaction 1,189,842costs -Selling,general and 1,065,389 456,794administrativeTotaloperating 1,914,907 2,664,867expensesLoss from (1,874,173) (2,637,960)operations Other income (expense)Interest (1,102,606)expense -Interest 456,775income -Change in fairvalue of 83,560investment in -BioPharmXChange in fairvalue of (321,051)warrant -liability(Loss) gain onforeign (87) 2,682currencyexchangeTotal other (87) (880,640)expenseNet loss (1,874,260) (3,518,600)Accrueddividend on (34,481)preferred -stock unitsCumulativedividends on Series A (35,887) -preferredstockNet lossattributable $ (1,910,147) $ (3,553,081)to commonstockholdersBasic anddiluted netloss per share $ (0.05) $ (0.56)attributableto commonstockholdersBasic anddilutedweighted 35,079,143 6,295,724average numberof sharesoutstanding