BFRIW

Biofrontera Inc. Warrants provide holders with the right to purchase shares of Biofrontera common stock at a predetermined exercise price within a specified exercise period. These warrants were issued as part of previous financing transactions and trade separately from the common stock. The warrants offer investors leveraged exposure to Biofrontera's commercial prospects in the dermatology specialty pharmaceutical market, with potential for amplified returns if the company successfully expands commercialization of Ameluz and achieves profitability. The warrants gain intrinsic value when Biofrontera's stock price rises above the exercise price, at which point holders can exercise to purchase shares at the below-market strike price or sell the warrants in the secondary market at a profit. Warrant pricing also incorporates time value reflecting the remaining duration until expiration and the stock's expected volatility. This leverage means warrants can deliver outsized percentage gains during periods of stock appreciation but also carry higher risk, potentially declining more sharply during downturns and expiring worthless if the stock remains below the exercise price at expiration. Biofrontera commercializes Ameluz (aminolevulinic acid hydrochloride) gel for photodynamic therapy treatment of actinic keratoses, precancerous skin lesions affecting millions of Americans. The company's ability to drive adoption among dermatologists, achieve revenue growth, expand market penetration, secure favorable reimbursement, achieve profitability, or pursue additional product development could catalyze stock price appreciation benefiting warrant holders. These instruments suit investors with higher risk tolerance who believe in Biofrontera's commercial opportunity in treating actinic keratoses and the competitive advantages of photodynamic therapy with Ameluz versus alternative treatment modalities. The warrant investment depends on Biofrontera successfully scaling its commercial operations and establishing sustainable profitability in the dermatology market.