How Skin Elements Is Scaling Natural Biotech with Reduced Losses and New Capital

Financial Performance and Operational Progress

Skin Elements Limited (ASX, SKN), a biotechnology company specialising in natural and organic products, has released its annual report for the year ended 30 June 2025. The company recorded revenues of $469,957, up 13% from the prior year, while reducing its net loss by 20% to $1.73 million. This improvement reflects ongoing commercialisation efforts and operational efficiencies despite the company remaining in an early-stage growth phase.

The company’s proprietary SE Formula biotechnology underpins a portfolio of plant-based products, including the ECO-Nurture plant bio-stimulant, SuprCuvr hospital-grade disinfectant, Soléo Organics sunscreen, and PapayaActivs natural therapeutics skincare. Skin Elements continues to invest heavily in research and development, supported by government R&D tax incentives, which contributed $1.19 million in rebates for the prior year and an estimated $635,000 for FY2025.

Commercialisation Milestones

Skin Elements has commenced Phase 3 commercial roll-out of ECO-Nurture, a sustainable alternative to chemical agricultural sprays, targeting the New Zealand kiwifruit industry. The product has undergone successful trials on over 120 orchards, demonstrating efficacy against bacterial diseases without chemical residues. Deliveries of over 3,200 litres of ECO-Nurture concentrate have been made, with further expansion planned for the 2026 growing season.

Similarly, SuprCuvr, a TGA-registered, 100% plant-based hospital-grade disinfectant, is being deployed in large-scale settings such as Melbourne’s city trains through Spotless cleaning contractors. The product is also undergoing trials in New Zealand’s agriculture sector, positioning Skin Elements to capture demand for chemical-free disinfectants in health and food manufacturing sectors.

Capital Raising and Governance

During the year, Skin Elements completed a non-renounceable rights issue, raising approximately $657,000 through the issuance of over 171 million shares and free attaching options. Additional oversubscriptions brought in a further $143,000. The company also issued 100 million Class A performance rights to key executives and directors, which vested and converted into shares in December 2024, aligning management incentives with shareholder interests.

Despite ongoing losses, Skin Elements’ balance sheet shows a net tangible liability position of $1.94 million, reflecting the early commercial stage and investment in product development. The company’s cash position declined modestly to $59,648 at year-end, underscoring the importance of future capital raises to fund growth.

Outlook and Strategic Focus

Looking ahead, Skin Elements plans to continue scaling its natural antimicrobial technologies and expanding commercial partnerships, including negotiations for Soléo Organics sunscreen distribution in the UK market. The company signals potential future capital raising through equity placements or debt to support these initiatives. Directors caution that further operational details remain confidential due to the early stage of commercialisation but express confidence in the growth prospects of their natural biotech product range.

Environmental compliance remains straightforward, with no significant regulatory burdens currently impacting operations. Skin Elements remains vigilant to evolving national greenhouse and energy reporting requirements but does not anticipate material effects in the near term.