Company: DERM
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001104659-25-041214
Chunk: 39

Company: Journey Medical Corp
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 39
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 the cost of certain legal, finance, regulatory, and research and development employees (the “Agreement”). Fortress’s Executive Chairman and Chief Executive Officer is the Executive Chairman of the Company. Under the terms of the Agreement, the Company will reimburse Fortress for the salary and benefit costs associated with these employees based upon actual hours worked on Company related projects following the completion of the Company’s initial public offering (“IPO”), which closed on November 10, 2021. For the years ended December 31, 2024 and 2023, Fortress employees have provided services to the Company totaling approximately less than $0.1 million and $0.1 million, respectively. In the normal course of business, the Company reimburses Fortress for various payroll related costs and selling, general and administrative costs. As of December 31, 2024 and 2023, the Company had a balance of approximately $0.5 million and $0.2 million, respectively, due to related party on the consolidated balance sheets. Fortress Income Tax As of December 31, 2024, the Company was 44.51% owned by Fortress Biotech, Inc. (“Fortress”) and was filing consolidated federal tax returns and consolidated or combined state tax returns in multiple jurisdictions with Fortress for tax years prior to 2021. As the Company completed its initial public offering on November 12, 2021, it deconsolidated from the Fortress consolidated group for federal income tax purpose. The financial statements recognize the current and deferred income tax consequences that result from the activities during the current and preceding periods, as if the Company were a separate taxpayer rather than a member of the Fortress consolidated income tax return group. Fortress has agreed that the Company does not have to make payments to Fortress for the use of net operating losses (“NOLs”) of Fortress (including other Fortress group members). Since Fortress does not require the Company to pay in any form for the utilization of the consolidated group’s NOLs, the tax benefit realized have been recorded as a capital contribution. 23

TABLE OF CONTENTS

STOCK OWNERSHIP OF OUR DIRECTORS, EXECUTIVE OFFICERS, AND 5% BENEFICIAL OWNERS The following table shows information, as of April 14, 2025 (the “Determination Date”), concerning the beneficial ownership of our common stock by: • each person we know to be the beneficial owner of more than 5% of our common stock; • each of our current directors; • each of our