Skin Elements Limited reported a $4.01 million loss for the half-year ending December 2025, alongside a 41% revenue drop, while securing $2.5 million in fresh capital to advance its proprietary SE Formula biotechnology products.
- Half-year loss widened to $4.01 million
- Revenue declined 41% to $183,984
- Non-cash $3.3 million loss from equity-settled director liabilities
- Completed $2.5 million placement plus $750,000 from option conversions
- Board refreshed with two new non-executive directors appointed
Financial Performance and Capital Raising
Skin Elements Limited (ASX: SKN), a biotechnology company focused on natural and organic products, has revealed a challenging half-year financial performance for the period ending 31 December 2025. The company posted a net loss of $4.01 million, a significant increase from the $1.21 million loss reported in the prior corresponding period. Revenues fell sharply by 41.23% to just under $184,000, reflecting the early-stage nature of the company’s commercial activities.
Despite the financial setback, Skin Elements successfully completed a $2.5 million capital raising through a two-tranche placement to professional and sophisticated investors, priced at $0.002 per share. This was complemented by an additional $750,000 raised via the conversion of options at $0.006 per share. These funds are earmarked to support the commercialisation of the company’s proprietary SE Formula biotechnology platform and provide working capital to sustain operations.
Operational Highlights and Product Development
The company continues to develop and prepare for commercialisation five core product platforms based on its SE Formula technology. These include the hospital-grade disinfectant SuprCuvr, the ECO-Nurture plant bio-stimulant, Soléo Organics sunscreen, PapayaActivs therapeutic skincare, and Elizabeth Jane Natural Cosmetics. Notably, ECO-Nurture has completed successful evaluations in over 120 kiwifruit orchards in New Zealand, gaining approval under Zespri’s Crop Allowed Other Compounds list, positioning it for a commercial rollout in the 2026 growing season.
SuprCuvr has also secured adoption by Spotless for disinfecting Melbourne’s suburban trains and stations, marking a significant commercial validation of the product. Soléo Organics continues to garner accolades as a top-rated natural sunscreen, while PapayaActivs and Elizabeth Jane products remain in advanced development stages.
Balance Sheet and Going Concern Considerations
The company’s balance sheet shows an improvement in net assets to $1.58 million from a prior deficit of nearly $1.94 million, driven largely by the recent capital injections. Cash and cash equivalents increased to $1.73 million at the half-year end. However, Skin Elements acknowledges a material uncertainty regarding its ability to continue as a going concern without securing further funding or generating profits.
A significant non-cash accounting loss of $3.3 million was recorded due to the settlement of $1 million in director liabilities through the issue of shares and options at fair value, reflecting the complexities of equity-settled transactions under accounting standards.
Governance and Strategic Outlook
In governance developments, Skin Elements appointed two new non-executive directors, Rod Nicholas and Joshua Gordon, in February 2026, while Stuart Usher retired from the board but remains as company secretary. The board changes signal a potential strategic refresh as the company pushes towards commercialisation milestones.
Looking ahead, Skin Elements plans further capital raising initiatives and remains focused on advancing its natural antimicrobial technology and product commercialisation. The company’s directors express confidence in meeting obligations over the next 12 months but caution that ongoing funding will be critical to sustain growth and operational continuity.
Bottom Line?
Skin Elements’ next phase hinges on successful commercialisation and securing additional funding to overcome early-stage financial pressures.
Questions in the middle?
- Will Skin Elements secure further funding to alleviate going concern risks?
- How soon can commercial sales from SE Formula products offset ongoing losses?
- What impact will the new board appointments have on strategic direction?