Journey Medical Corporation Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
Sep. 30, 2026
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 13. COMMITMENTS AND CONTINGENCIES License Agreements The Company has undertaken to make contingent milestone payments to the licensors of its portfolio of drug products and candidates. In addition, the Company is required to pay royalties to such licensors based on a percentage of net sales of each drug candidate following regulatory marketing approval. For additional information on future milestone payments and royalties, see Note 6. Vendor Dispute During the third quarter of 2026, the Company settled a dispute with a former vendor regarding certain service-related charges which arose in the ordinary course of business. Under the terms of the settlement, the Company paid the vendor $4.1 million during the third quarter of 2026, and the parties mutually released all claims related to the dispute. Prior to the settlement, the Company had accrued $2.4 million related to the matter. The $1.7 million difference between the settlement amount and the previously accrued amount was recognized during the three months ended September 30, 2026 in selling, general and administrative expense. As of September 30, 2026, the Company had no remaining liability related to this matter.

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2026

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 13. COMMITMENTS AND CONTINGENCIES

License Agreements

The Company has undertaken to make contingent milestone payments to the licensors of its portfolio of drug products and candidates. In addition, the Company is required to pay royalties to such licensors based on a percentage of net sales of each drug candidate following regulatory marketing approval. For additional information on future milestone payments and royalties, see Note 6.

Vendor Dispute

During the third quarter of 2026, the Company settled a dispute with a former vendor regarding certain service-related charges which arose in the ordinary course of business. Under the terms of the settlement, the Company paid the vendor $4.1 million during the third quarter of 2026, and the parties mutually released all claims related to the dispute. Prior to the settlement, the Company had accrued $2.4 million related to the matter. The $1.7 million difference between the settlement amount and the previously accrued amount was recognized during the three months ended September 30, 2026 in selling, general and administrative expense. As of September 30, 2026, the Company had no remaining liability related to this matter.