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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 8/09/23 STRATA Skin Sciences, Inc. 10-Q 6/30/23 71:7.8M Broadridge Fin’l So… Inc |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 1.52M 2: EX-10.6 Material Contract HTML 38K 3: EX-31.1 Certification -- §302 - SOA'02 HTML 26K 4: EX-31.2 Certification -- §302 - SOA'02 HTML 26K 5: EX-32.1 Certification -- §906 - SOA'02 HTML 23K 11: R1 Document and Entity Information HTML 73K 12: R2 Condensed Consolidated Balance Sheets HTML 128K 13: R3 Condensed Consolidated Balance Sheets HTML 44K (Parenthetical) 14: R4 Condensed Consolidated Statements of Operations HTML 95K 15: R5 Condensed Consolidated Statements of Changes in HTML 71K Stockholders' Equity 16: R6 Condensed Consolidated Statements of Cash Flows HTML 125K 17: R7 The Company HTML 98K 18: R8 Liquidity HTML 24K 19: R9 Revenue Recognition HTML 43K 20: R10 TheraClear Asset Acquisition HTML 35K 21: R11 Inventories HTML 27K 22: R12 Property and Equipment, net HTML 36K 23: R13 Intangible Assets, net HTML 59K 24: R14 Accrued Expenses and Other Current Liabilities HTML 29K 25: R15 Long-term Debt HTML 49K 26: R16 Stock-based Compensation HTML 58K 27: R17 Income Taxes HTML 25K 28: R18 Business Segments HTML 232K 29: R19 Significant Customer Concentrations HTML 24K 30: R20 Commitments and Contingencies HTML 40K 31: R21 The Company (Policies) HTML 98K 32: R22 The Company (Tables) HTML 64K 33: R23 Revenue Recognition (Tables) HTML 26K 34: R24 TheraClear Asset Acquisition (Tables) HTML 31K 35: R25 Inventories (Tables) HTML 27K 36: R26 Property and Equipment, net (Tables) HTML 34K 37: R27 Intangible Assets, net (Tables) HTML 59K 38: R28 Accrued Expenses and Other Current Liabilities HTML 29K (Tables) 39: R29 Long-term Debt (Tables) HTML 30K 40: R30 Stock-based Compensation (Tables) HTML 56K 41: R31 Business Segments (Tables) HTML 229K 42: R32 Commitments and Contingencies (Tables) HTML 27K 43: R33 The Company, Background (Details) HTML 25K 44: R34 The Company, Accrued Warranty Costs (Details) HTML 44K 45: R35 The Company, Net Loss Per Share (Details) HTML 29K 46: R36 Liquidity (Details) HTML 36K 47: R37 Revenue Recognition, Summary (Details) HTML 30K 48: R38 Revenue Recognition, Future Undiscounted Fixed HTML 40K Payments from International Recurring Revenue Customers (Details) 49: R39 Revenue Recognition, Remaining Performance HTML 30K Obligation (Details) 50: R40 Revenue Recognition, Contract Liabilities HTML 28K (Details) 51: R41 TheraClear Asset Acquisition, (Details) HTML 88K 52: R42 Inventories (Details) HTML 26K 53: R43 Property and Equipment, net (Details) HTML 41K 54: R44 Intangible Assets, net (Details) HTML 49K 55: R45 Intangible Assets, net, Estimated Amortization HTML 30K Expense (Details) 56: R46 Accrued Expenses and Other Current Liabilities HTML 31K (Details) 57: R47 Long-term Debt, Senior Term Facility (Details) HTML 132K 58: R48 Long-term Debt, Future Minimum Principal Payments HTML 39K (Details) 59: R49 Stock-based Compensation, Summary (Details) HTML 33K 60: R50 Stock-based Compensation, Stock Options (Details) HTML 82K 61: R51 Stock-Based Compensation, Fair Value Assumptions HTML 29K (Details) 62: R52 Stock-based Compensation, Restricted Stock Units HTML 39K (Details) 63: R53 Income Taxes (Details) HTML 23K 64: R54 Business Segments (Details) HTML 130K 65: R55 Significant Customer Concentrations (Details) HTML 42K 66: R56 Commitments and Contingencies (Details) HTML 85K 69: XML IDEA XML File -- Filing Summary XML 125K 67: XML XBRL Instance -- brhc20057195_10q_htm XML 1.85M 68: EXCEL IDEA Workbook of Financial Report Info XLSX 127K 7: EX-101.CAL XBRL Calculations -- sskn-20230630_cal XML 164K 8: EX-101.DEF XBRL Definitions -- sskn-20230630_def XML 643K 9: EX-101.LAB XBRL Labels -- sskn-20230630_lab XML 1.62M 10: EX-101.PRE XBRL Presentations -- sskn-20230630_pre XML 979K 6: EX-101.SCH XBRL Schema -- sskn-20230630 XSD 162K 70: JSON XBRL Instance as JSON Data -- MetaLinks 430± 630K 71: ZIP XBRL Zipped Folder -- 0001140361-23-038813-xbrl Zip 328K
|
i Delaware
(State or other jurisdiction
of incorporation or organization)
|
|
i 13-3986004
(I.R.S. Employer
Identification No.)
|
|
Title of each class
|
Trading
Symbol(s) |
Name of each exchange on which registered
|
i Common Stock, $0.001 par value per share
|
i SSKN
|
i The NASDAQ Stock Market LLC
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
|||
i Non-accelerated filer ☒
|
Smaller reporting company i ☒
|
|||
Emerging growth company i ☐
|
Part I. Financial Information:
|
PAGE
|
||
ITEM 1. Financial Statements:
|
|||
a.
|
1
|
||
b.
|
2
|
||
c.
|
3
|
||
d.
|
4
|
||
e.
|
5
|
||
f.
|
6
|
||
23
|
|||
31
|
|||
31
|
|||
Part II. Other Information:
|
|||
32
|
|||
32
|
|||
33
|
|||
33
|
|||
34
|
|||
34
|
|||
34
|
|||
35
|
|||
Certifications
|
E-31.1
|
ITEM 1.
|
Financial Statements
|
(unaudited) | ||||||||
Assets
|
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
i 9,034
|
$
|
i 5,434
|
||||
Restricted cash
|
i 1,361 | i 1,361 | ||||||
Accounts receivable, net of allowance for credit losses of $ i 244 and $ i 382 at June
30, 2023 and December 31, 2022, respectively
|
i 4,401
|
i 4,471
|
||||||
Inventories
|
i 5,921
|
i 5,547
|
||||||
Prepaid expenses and other current assets
|
i 528
|
i 691
|
||||||
Total current assets
|
i 21,245
|
i 17,504
|
||||||
Property and equipment, net
|
i 8,319
|
i 7,498
|
||||||
Operating lease right-of-use assets
|
i 807
|
i 975
|
||||||
Intangible assets, net
|
i 15,959
|
i 17,394
|
||||||
Goodwill
|
i 8,803
|
i 8,803
|
||||||
Other assets
|
i 71
|
i 98
|
||||||
Total assets
|
$
|
i 55,204
|
$
|
i 52,272
|
||||
Liabilities and Stockholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
i 3,880
|
$
|
i 3,425
|
||||
Accrued expenses and other current liabilities
|
i 6,731
|
i 6,555
|
||||||
Deferred revenues
|
i 2,436 |
i 2,778 |
||||||
Current portion of operating lease liabilities
|
i 392
|
i 355
|
||||||
Current portion of contingent consideration
|
i 681
|
i 313
|
||||||
Total current liabilities
|
i 14,120
|
i 13,426
|
||||||
Long-term debt, net
|
i 14,987
|
i 7,476
|
||||||
Deferred revenues and other liabilities |
i 596 |
i 314 |
||||||
Deferred tax liability
|
i 306
|
i 306
|
||||||
Operating lease liabilities, net of current portion
|
i 387
|
i 610
|
||||||
Contingent consideration, net of current portion |
i 7,899
|
i 8,309
|
||||||
Total liabilities
|
i 38,295
|
i 30,441
|
||||||
Commitments and contingencies (Note 14)
|
||||||||
Stockholders’ equity:
|
||||||||
Series C convertible preferred stock, $ i i 0.10 /
par value; i i 10,000,000 / shares authorized; i i i i no / / /
shares issued and outstanding
|
i — |
i — |
||||||
Common stock, $ i i 0.001 /
par value; i i 150,000,000 / shares authorized; i i 34,881,453 /
and
i i 34,723,046 / shares issued and outstanding at June 30, 2023
and December 31, 2022, respectively
|
i 35
|
i 35
|
||||||
Additional paid-in capital
|
i 250,085
|
i 249,024
|
||||||
Accumulated deficit
|
( i 233,211
|
)
|
( i 227,228
|
)
|
||||
Total stockholders’ equity
|
i 16,909
|
i 21,831
|
||||||
Total liabilities and stockholders’ equity
|
$
|
i 55,204
|
$
|
i 52,272
|
Three Months Ended June 30,
|
||||||||
2022
|
||||||||
Revenues, net
|
$
|
i 8,250
|
$
|
i 9,105
|
||||
Cost of revenues
|
i 3,932
|
i 4,112
|
||||||
Gross profit
|
i 4,318
|
i 4,993
|
||||||
Operating expenses:
|
||||||||
Engineering and product development
|
i 374
|
i 209
|
||||||
Selling and marketing
|
i 3,416
|
i 4,146
|
||||||
General and administrative
|
i 2,490
|
i 2,332
|
||||||
i 6,280
|
i 6,687
|
|||||||
Loss from operations
|
( i 1,962
|
)
|
( i 1,694
|
)
|
||||
Other (expense) income:
|
||||||||
Loss on debt extinguishment
|
( i 909 | ) | i — | |||||
Interest expense
|
( i 298
|
)
|
( i 208
|
)
|
||||
Interest income
|
i 21 | i 10 | ||||||
( i 1,186 | ) | ( i 198 | ) | |||||
Net loss
|
$
|
( i 3,148
|
)
|
$
|
( i 1,892
|
)
|
||
Net loss per share of common stock, basic and diluted
|
$ | ( i i 0.09 / | ) | $ | ( i i 0.05 / | ) | ||
Weighted average shares of common stock outstanding, basic and diluted
|
i i 34,881,453 / | i i 34,723,046 / |
Six Months Ended June 30,
|
||||||||
2022
|
||||||||
Revenues, net
|
$
|
i 15,817
|
$
|
i 16,146
|
||||
Cost of revenues
|
i 7,111
|
i 7,025
|
||||||
Gross profit
|
i 8,706
|
i 9,121
|
||||||
Operating expenses:
|
||||||||
Engineering and product development
|
i 689
|
i 372
|
||||||
Selling and marketing
|
i 7,158
|
i 7,762
|
||||||
General and administrative
|
i 5,407
|
i 4,984
|
||||||
i 13,254
|
i 13,118
|
|||||||
Loss from operations
|
( i 4,548
|
)
|
( i 3,997
|
)
|
||||
Other (expense) income:
|
||||||||
Loss on debt extinguishment
|
( i 909 | ) | i — | |||||
Interest expense
|
( i 584 | ) | ( i 407 | ) | ||||
Interest income
|
i 58 | i 10 | ||||||
( i 1,435 | ) | ( i 397 | ) | |||||
Net loss
|
$
|
( i 5,983
|
)
|
$
|
( i 4,394
|
)
|
||
Net loss per share of common stock, basic and diluted
|
$ | ( i i 0.17 / | ) | $ | ( i i 0.13 / | ) | ||
Weighted average shares of common stock outstanding, basic and diluted | i i 34,871,826 / |
i i 34,701,267 / |
Additional |
Total |
|||||||||||||||||||
Common Stock
|
Paid-In
|
Accumulated
|
Stockholders’
|
|||||||||||||||||
Shares
|
Amount
|
Capital
|
Deficit
|
Equity
|
||||||||||||||||
Balance at January 1, 2023
|
i 34,723,046
|
$
|
i 35
|
$
|
i 249,024
|
$
|
( i 227,228
|
)
|
$
|
i 21,831
|
||||||||||
Stock-based compensation expense
|
—
|
i —
|
i 325
|
i —
|
i 325
|
|||||||||||||||
Issuance of restricted stock
|
i 158,407
|
i —
|
i — |
i — |
i —
|
|||||||||||||||
Net loss
|
—
|
i —
|
i —
|
( i 2,835
|
)
|
( i 2,835
|
)
|
|||||||||||||
Balance at March 31, 2023
|
i 34,881,453
|
i 35
|
i 249,349
|
( i 230,063
|
)
|
i 19,321
|
||||||||||||||
Stock-based compensation expense
|
— |
i — |
i 352
|
i —
|
i 352
|
|||||||||||||||
Modification of common stock warrants |
— | i — | i 384 | i — | i 384 | |||||||||||||||
Net loss
|
—
|
i —
|
i —
|
( i 3,148
|
)
|
( i 3,148
|
)
|
|||||||||||||
Balance at June 30, 2023
|
i 34,881,453
|
$ |
i 35
|
$ |
i 250,085
|
$ |
( i 233,211
|
)
|
$ |
i 16,909
|
Additional |
Total |
|||||||||||||||||||
Common Stock
|
Paid-In
|
Accumulated
|
Stockholders’
|
|||||||||||||||||
Shares
|
Amount
|
Capital
|
Deficit
|
Equity
|
||||||||||||||||
Balance at January 1, 2022
|
i 34,364,679
|
$
|
i 34
|
$
|
i 247,059
|
$
|
( i 221,679
|
)
|
$
|
i 25,414
|
||||||||||
Stock-based compensation expense
|
—
|
i —
|
i 368
|
i —
|
i 368
|
|||||||||||||||
Issuance of common
stock for acquisition
|
i 358,367
|
i 1
|
i 499
|
i —
|
i 500
|
|||||||||||||||
Net loss
|
—
|
i —
|
i —
|
( i 2,502
|
)
|
( i 2,502
|
)
|
|||||||||||||
Balance at March 31, 2022
|
i 34,723,046
|
i 35
|
i 247,926
|
( i 224,181
|
)
|
i 23,780
|
||||||||||||||
Stock-based compensation expense
|
—
|
i —
|
i 452
|
i — |
i 452
|
|||||||||||||||
Net loss
|
—
|
i —
|
i —
|
( i 1,892
|
)
|
( i 1,892
|
)
|
|||||||||||||
Balance at June 30, 2022
|
i 34,723,046
|
$
|
i 35
|
$
|
i 248,378
|
$
|
( i 226,073
|
)
|
$
|
i 22,340
|
For the Six Months Ended June 30,
|
||||||||
2022
|
||||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$
|
( i 5,983
|
)
|
$
|
( i 4,394
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
i 1,390
|
i 1,224
|
||||||
Amortization of operating lease right-of-use assets
|
i 168
|
i 181
|
||||||
Amortization of intangible assets
|
i 1,435 | i 1,436 | ||||||
Amortization of deferred financing costs and debt discount | i 83 | i 76 | ||||||
Change in allowance for credit
losses
|
( i 138
|
)
|
( i 47
|
)
|
||||
Stock-based compensation expense
|
i 677
|
i 820
|
||||||
Loss on disposal of property and equipment
|
i 24 | i 35 | ||||||
Loss on debt extinguishment
|
i 909 | i — | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
i 208
|
i 491
|
||||||
Inventories
|
( i 272
|
)
|
( i 898
|
)
|
||||
Prepaid expenses and other assets
|
i 190
|
( i 203
|
)
|
|||||
Accounts payable
|
i 351
|
i 1,419
|
||||||
Accrued expenses and other liabilities
|
i 211
|
( i 217
|
)
|
|||||
Deferred revenues
|
( i 95
|
)
|
( i 135
|
)
|
||||
Operating lease liabilities
|
( i 186
|
)
|
( i 197
|
)
|
||||
Net cash used in operating activities
|
( i 1,028
|
)
|
( i 409
|
)
|
||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment
|
( i 2,337 | ) | ( i 1,510 | ) | ||||
Cash paid in connection with TheraClear asset acquisition
|
i — | ( i 631 | ) | |||||
Net cash used in investing activities
|
( i 2,337 | ) | ( i 2,141 | ) | ||||
Cash flows from financing activities: |
||||||||
Proceeds from long-term debt
|
i 7,000 | i — | ||||||
Payment of deferred financing costs
|
( i 35 | ) | i — | |||||
Net cash provided by financing activities
|
i 6,965 | i — | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
i 3,600
|
( i 2,550
|
)
|
|||||
Cash, cash equivalents and restricted cash, beginning of period
|
i 6,795
|
i 12,586
|
||||||
Cash, cash equivalents and restricted cash, end of period
|
$
|
i 10,395
|
$
|
i 10,036
|
||||
Cash and cash equivalents
|
$
|
i 9,034
|
$
|
i 10,036
|
||||
Restricted cash
|
i 1,361
|
i —
|
||||||
$
|
i 10,395
|
$
|
i 10,036
|
|||||
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid for interest
|
$
|
i 497
|
$
|
i 329
|
||||
Supplemental disclosure of non-cash operating, investing and financing activities:
|
||||||||
Inventories acquired in connection with TheraClear asset acquisition
|
$ | i — | $ | i 71 | ||||
Intangible assets acquired in connection with TheraClear asset acquisition
|
$ | i — | $ | i 10,182 | ||||
Contingent consideration issued in connection with TheraClear asset acquisition
|
$ | i — | $ | i 9,122 | ||||
Common stock issued in connection with TheraClear asset acquisition
|
$ | i — | $ | i 500 | ||||
Modification of common stock warrants
|
$ |
i 384 | $ |
i — | ||||
Transfer of property and equipment to inventories | $ | i 102 | $ | i 449 | ||||
Accrued payment of contingent consideration | $ | i 42 | $ | i — | ||||
Accrued exit fee recorded as debt discount
|
$ |
i 450 | $ |
i — | ||||
Deferred financing costs in accounts payable |
$ |
i 62 | $ |
i — |
|
•
|
Level 1 – quoted market prices in
active markets for identical assets or liabilities.
|
|
•
|
Level 2 – observable inputs other than
quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market
data for substantially the full term of the assets or liabilities.
|
|
•
|
Level 3 – inputs that are generally
unobservable and typically reflect the Company’s estimate of assumptions that market participants would use in pricing the asset or liability.
|
|
Three Months Ended June 30,
|
|||||||
|
2022
|
|||||||
Balance, beginning of period
|
$
|
i 229
|
$
|
i 99
|
||||
Additions
|
i 93
|
i 60
|
||||||
Expirations and claims satisfied
|
( i 53
|
)
|
( i 26
|
)
|
||||
Total
|
i 269
|
i 133
|
||||||
Less current portion within accrued expenses
and other current liabilities
|
( i 163
|
)
|
( i 98
|
)
|
||||
Balance within deferred revenues and other
liabilities
|
$
|
i 106
|
$
|
i 231
|
Six Months Ended June 30,
|
||||||||
2022
|
||||||||
Balance, beginning of period
|
$
|
i 207
|
$
|
i 79
|
||||
Additions
|
i 120
|
i 94
|
||||||
Expirations and claims satisfied
|
( i 58
|
)
|
( i 40
|
)
|
||||
Total
|
i 269
|
i 133
|
||||||
Less current portion within accrued expenses and other current liabilities
|
( i 163
|
)
|
( i 98
|
)
|
||||
Balance within deferred revenues and other liabilities
|
$
|
i 106
|
$
|
i 231
|
June 30, |
||||||||
|
2023 | 2022 | ||||||
Restricted stock units
|
i 119,597 | i 75,540 | ||||||
Stock options
|
i 5,369,714 | i 4,544,714 | ||||||
Common stock warrants
|
i 800,000 | i 373,626 | ||||||
Total
|
i 6,289,311 | i 4,993,880 |
•
|
||
•
|
identification of the performance obligations in the contract;
|
|
•
|
determination of the transaction price;
|
|
•
|
allocation of the transaction price to the performance obligations in the contract; and
|
|
•
|
recognition of revenue when, or as, performance obligations are satisfied.
|
Remaining 2023
|
$
|
i 641
|
||
2024
|
i 1,103
|
|||
2025
|
i 530
|
|||
2026
|
i 312
|
|||
2027
|
i 90
|
|||
Total
|
$
|
i 2,676
|
Consideration:
|
||||
Cash payment
|
$
|
i 500
|
||
Common stock issued |
i 500 |
|||
Transaction costs
|
i 131
|
|||
Contingent consideration | i 9,122 |
|||
Total consideration
|
$
|
i 10,253
|
||
Assets acquired:
|
||||
Technology intangible asset |
$ |
i 10,182 |
||
Inventories
|
|
i 71
|
||
Total assets acquired
|
$
|
i 10,253
|
Raw materials and work-in-process
|
$
|
i 5,622
|
$
|
i 5,418
|
||||
Finished goods
|
i 299
|
i 129
|
||||||
Total inventories
|
$
|
i 5,921
|
$
|
i 5,547
|
Dermatology
devices placed-in-service
|
$
|
i 30,767
|
$
|
i 28,790
|
||||
Equipment,
computer hardware and software
|
i 293
|
i 293
|
||||||
Furniture and
fixtures
|
i 235
|
i 235
|
||||||
Leasehold
improvements
|
i 96
|
i 136
|
||||||
i 31,391
|
i 29,454
|
|||||||
Accumulated depreciation and
amortization
|
( i 23,072
|
)
|
( i 21,956
|
)
|
||||
Property and equipment, net
|
$
|
i 8,319
|
$
|
i 7,498
|
|
Balance
|
Accumulated
Amortization
|
Intangible
Assets, net
|
|||||||||
Core technology
|
$
|
i 5,700
|
$
|
( i 4,560
|
)
|
$
|
i 1,140
|
|||||
Product technology
|
i 12,182
|
( i 3,527
|
)
|
i 8,655
|
||||||||
Customer relationships
|
i 6,900
|
( i 5,520
|
)
|
i 1,380
|
||||||||
Tradenames
|
i 1,500
|
( i 1,200
|
)
|
i 300
|
||||||||
Pharos customer lists
|
i 5,314
|
( i 830
|
)
|
i 4,484
|
||||||||
$
|
i 31,596
|
$
|
( i 15,637
|
)
|
$
|
i 15,959
|
||||||
Core technology
|
$
|
i 5,700
|
$
|
( i 4,275
|
)
|
$
|
i 1,425
|
|||||
Product technology
|
i 12,182
|
( i 3,018
|
)
|
i 9,164
|
||||||||
Customer relationships
|
i 6,900
|
( i 5,175
|
)
|
i 1,725
|
||||||||
Tradenames
|
i 1,500
|
( i 1,125
|
)
|
i 375
|
||||||||
Pharos customer lists
|
i 5,314
|
( i 609
|
)
|
i 4,705
|
||||||||
$
|
i 31,596
|
$
|
( i 14,202
|
)
|
$
|
i 17,394
|
Remaining 2023
|
$
|
i 1,436
|
||
2024
|
i 2,871
|
|||
2025
|
i 2,166
|
|||
2026
|
i 1,461
|
|||
2027
|
i 1,461
|
June 30, 2023 | December 31, 2022 | |||||||
Warranty obligations
|
$
|
i 163
|
$
|
i 136
|
||||
Compensation and related benefits
|
i 2,145
|
i 1,997
|
||||||
State sales, use and other taxes
|
i 4,203
|
i 3,986
|
||||||
Professional fees and other
|
i 220
|
i 436
|
||||||
Total accrued expenses and other current liabilities
|
$
|
i 6,731
|
$
|
i 6,555
|
2026
|
$
|
i 3,750
|
||
2027 |
i 7,500 | |||
2028 |
i 3,750 | |||
|
|
i 15,000
|
||
Exit fee
|
i 450 | |||
|
i 15,450 | |||
Less: unamortized debt discount
|
( i 463 | ) | ||
Long-term debt, net
|
$ |
i 14,987 |
Number of
Shares
|
Weighted Average
Exercise Price
per Share
|
Weighted Average
Remaining
Contractual Term
(in years)
|
||||||||||
Outstanding at January 1, 2023
|
i 4,474,714
|
$
|
i 1.72
|
|||||||||
Granted
|
i 905,000
|
$
|
i 1.06
|
|||||||||
Exercised
|
i —
|
$
|
i —
|
|||||||||
Forfeited and expired
|
( i 10,000
|
)
|
$
|
i 1.45
|
||||||||
Outstanding at June 30, 2023 | i 5,369,714 | $ | i 1.61 | i 7.9 | ||||||||
Exercisable at June 30, 2023 | i 2,787,390 | $ | i 1.81 | i 7.1 | ||||||||
Vested and expected to vest
|
i 5,369,714 | $ | i 1.61 | i 7.9 |
Expected volatility
|
i 71.4
|
%
|
||
Risk‑free interest rate
|
i 3.6
|
%
|
||
Expected term (in years)
|
i 6.2
|
|||
Expected dividend yield
|
i 0.0
|
%
|
Number of
Shares
|
Weighted Average
Grant Date
Fair Value
|
|||||||
Unvested at January 1, 2023
|
i 119,597
|
$
|
i 0.93
|
|||||
Granted
|
i —
|
$
|
i —
|
|||||
Vested
|
( i 79,730
|
)
|
$
|
i 0.93
|
||||
Unvested at June 30, 2023 | i 39,867 | $ | i 0.93 |
Dermatology
Recurring
Procedures
|
Dermatology
Procedures
Equipment
|
TOTAL
|
||||||||||
Three Months Ended June 30, 2023 | ||||||||||||
Revenues, net
|
$
|
i 5,456
|
$
|
i 2,794
|
$
|
i 8,250
|
||||||
Cost of revenues
|
i 2,205
|
i 1,727
|
i 3,932
|
|||||||||
Gross profit
|
i 3,251
|
i 1,067
|
i 4,318
|
|||||||||
Gross profit %
|
i 59.6
|
%
|
i 38.2
|
%
|
i 52.3
|
%
|
||||||
Allocated expenses:
|
||||||||||||
Engineering and product development
|
i 289
|
i 85
|
i 374
|
|||||||||
Selling and marketing
|
i 2,850
|
i 566
|
i 3,416
|
|||||||||
Unallocated expenses
|
i —
|
i —
|
i 2,490
|
|||||||||
i 3,139
|
i 651
|
i 6,280
|
||||||||||
Income (loss) from operations
|
i 112
|
i 416
|
( i 1,962
|
)
|
||||||||
Loss on debt extinguishment |
i — | i — | ( i 909 | ) | ||||||||
Interest expense
|
i —
|
i —
|
( i 298
|
)
|
||||||||
Interest income
|
i — | i — | i 21 | |||||||||
Net income (loss)
|
$
|
i 112
|
$
|
i 416
|
$
|
( i 3,148
|
)
|
Dermatology
Recurring Procedures
|
Dermatology
Procedures
Equipment
|
TOTAL
|
||||||||||
Six Months Ended June 30, 2023 | ||||||||||||
Revenues, net
|
$
|
i 10,665
|
$
|
i 5,152
|
$
|
i 15,817
|
||||||
Cost of revenues
|
i 4,225
|
i 2,886
|
i 7,111
|
|||||||||
Gross profit
|
i 6,440
|
i 2,266
|
i 8,706
|
|||||||||
Gross profit %
|
i 60.4 | % | i 44.0 | % | i 55.0 | % | ||||||
Allocated expenses:
|
||||||||||||
Engineering and product development
|
i 534
|
i 155
|
i 689
|
|||||||||
Selling and marketing
|
i 6,203
|
i 955
|
i 7,158
|
|||||||||
Unallocated expenses
|
i —
|
i —
|
i 5,407
|
|||||||||
i 6,737
|
i 1,110 |
i 13,254
|
||||||||||
(Loss) income from operations
|
( i 297 | ) | i 1,156 | ( i 4,548 | ) | |||||||
Loss on debt extinguishment | i — | i — | ( i 909 | ) | ||||||||
Interest expense
|
i —
|
i —
|
( i 584
|
)
|
||||||||
Interest income
|
i — | i — | i 58 | |||||||||
Net (loss) income
|
$
|
( i 297
|
)
|
$
|
i 1,156
|
$
|
( i 5,983
|
)
|
Dermatology
Recurring
Procedures
|
Dermatology
Procedures
Equipment
|
TOTAL
|
||||||||||
Three Months Ended June 30, 2022 | ||||||||||||
Revenues, net
|
$
|
i 5,582
|
$
|
i 3,523
|
$
|
i 9,105
|
||||||
Cost of revenues
|
i 2,298
|
i 1,814
|
i 4,112
|
|||||||||
Gross profit
|
i 3,284
|
i 1,709
|
i 4,993
|
|||||||||
Gross profit %
|
i 58.8
|
%
|
i 48.5
|
%
|
i 54.8
|
%
|
||||||
Allocated expenses:
|
||||||||||||
Engineering and product development
|
i 133
|
i 76
|
i 209
|
|||||||||
Selling and marketing
|
i 3,629
|
i 517
|
i 4,146
|
|||||||||
Unallocated expenses
|
i —
|
i —
|
i 2,332
|
|||||||||
i 3,762
|
i 593
|
i 6,687
|
||||||||||
(Loss) income from operations
|
( i 478
|
)
|
i 1,116
|
( i 1,694
|
)
|
|||||||
Interest expense
|
i —
|
i —
|
( i 208
|
)
|
||||||||
Interest income | i — | i — | i 10 | |||||||||
Net (loss) income
|
$
|
( i 478
|
)
|
$
|
i 1,116
|
$
|
( i 1,892
|
)
|
Dermatology
Recurring
Procedures
|
Dermatology
Procedures
Equipment
|
TOTAL
|
||||||||||
Six Months Ended June 30, 2022 | ||||||||||||
Revenues, net
|
$
|
i 10,649
|
$
|
i 5,497
|
$
|
i 16,146
|
||||||
Cost of revenues
|
i 4,330
|
i 2,695
|
i 7,025
|
|||||||||
Gross profit
|
i 6,319
|
i 2,802
|
i 9,121
|
|||||||||
Gross profit %
|
i 59.3
|
%
|
i 51.0
|
%
|
i 56.5
|
%
|
||||||
Allocated expenses:
|
||||||||||||
Engineering and product development
|
i 259
|
i 113
|
i 372
|
|||||||||
Selling and marketing
|
i 6,929
|
i 833
|
i 7,762
|
|||||||||
Unallocated expenses
|
i —
|
i —
|
i 4,984
|
|||||||||
i 7,188
|
i 946
|
i 13,118
|
||||||||||
(Loss) income from operations
|
( i 869
|
)
|
i 1,856
|
( i 3,997
|
)
|
|||||||
Interest expense
|
i —
|
i —
|
( i 407
|
)
|
||||||||
Interest income
|
i — | i — | i 10 | |||||||||
Net (loss) income
|
$
|
( i 869
|
)
|
$
|
i 1,856
|
$
|
( i 4,394
|
)
|
Three Months Ended June 30,
|
||||||||
2022
|
||||||||
Dermatology recurring procedures
|
$
|
i 1,238
|
$
|
i 1,059
|
||||
Dermatology procedures equipment
|
i 187
|
i 277
|
||||||
Unallocated expenses
|
i 3
|
i 3
|
||||||
Consolidated total
|
$
|
i 1,428
|
$
|
i 1,339
|
Six Months Ended June 30,
|
||||||||
2022
|
||||||||
Dermatology recurring procedures
|
$
|
i 2,451
|
$
|
i 2,211
|
||||
Dermatology procedures equipment
|
i 367
|
i 442
|
||||||
Unallocated expenses
|
i 7
|
i 7
|
||||||
Consolidated total
|
$
|
i 2,825
|
$
|
i 2,660
|
Dermatology Recurring Procedures
|
Dermatology Procedures Equipment
|
TOTAL
|
||||||||||
Three Months Ended June 30, 2023 | ||||||||||||
Domestic
|
$
|
i 5,141
|
$
|
i 926
|
$
|
i 6,067
|
||||||
Foreign
|
i 315
|
i 1,868
|
i 2,183
|
|||||||||
Total
|
$
|
i 5,456
|
$
|
i 2,794
|
$
|
i 8,250
|
Six Months Ended June 30, 2023 | ||||||||||||
Domestic
|
$
|
i 9,988
|
$
|
i 1,422
|
$
|
i 11,410
|
||||||
Foreign
|
i 677
|
i 3,730
|
i 4,407
|
|||||||||
Total
|
$
|
i 10,665
|
$
|
i 5,152
|
$
|
i 15,817
|
Dermatology Recurring Procedures
|
Dermatology Procedures Equipment
|
TOTAL
|
||||||||||
Three Months Ended June 30, 2022 | ||||||||||||
Domestic
|
$
|
i 5,177
|
$
|
i 547
|
$
|
i 5,724
|
||||||
Foreign
|
i 405
|
i 2,976
|
i 3,381
|
|||||||||
Total
|
$
|
i 5,582
|
$
|
i 3,523
|
$
|
i 9,105
|
Six Months Ended June 30, 2022 | ||||||||||||
Domestic
|
$
|
i 9,866
|
$
|
i 1,242
|
$
|
i 11,108
|
||||||
Foreign
|
i 783
|
i 4,255
|
i 5,038
|
|||||||||
Total
|
$
|
i 10,649
|
$
|
i 5,497
|
$
|
i 16,146
|
Remaining 2023
|
$
|
i 220
|
||
2024
|
i 386
|
|||
2025
|
i 195
|
|||
2026 | i 55 | |||
Total remaining lease payments
|
$
|
i 856
|
||
Less: imputed interest
|
( i 77
|
)
|
||
Total lease liabilities
|
$
|
i 779
|
• |
XTRAC® Excimer Laser. XTRAC received FDA clearance in 2000 and has since become a widely recognized treatment among dermatologists for psoriasis and other skin diseases. The
XTRAC System delivers ultra-narrowband ultraviolet B (“UVB”) light to affected areas of skin. Following a series of treatments typically performed twice weekly, psoriasis remission can be achieved, and
vitiligo patches can be re-pigmented. XTRAC is endorsed by the National Psoriasis Foundation, and its use for psoriasis is covered by nearly all major insurance companies, including Medicare. We estimate that more than half of all major
insurance companies now offer reimbursement for vitiligo as well, a figure that is increasing.
|
• |
In the third quarter of 2018, we announced the FDA granted clearance for our Multi Micro Dose (MMD) tip for our XTRAC excimer laser. The MMD Tip accessory is indicated for use in conjunction with the XTRAC laser system to filter the Narrow
Band UVB (“NB-UVB”) light at delivery in order to calculate and individualize the maximum non-blistering dose for a particular patient.
|
• |
In January 2020, we announced the FDA granted clearance of our XTRAC Momentum Excimer Laser Platform. In February 2022, we announced the commercial launch, with the first installation in the U.S. market, of our next
generation excimer laser system, XTRAC Momentum® 1.0.
|
• |
VTRAC® Lamp. VTRAC received FDA clearance in 2005 and provides targeted therapeutic efficacy demonstrated by excimer technology with the simplicity of design and reliability
of a lamp system.
|
• |
TheraClear® X Acne Treatment Device. The TheraClear® Acne Therapy System was cleared by the FDA through the 510(k) process and
combines intense pulse light with vacuum (suction) for the treatment of mild to moderate inflammatory acne (including acne vulgaris), comedonal acne and pustular acne.
|
For the Three Months Ended June 30,
|
||||||||
2022
|
||||||||
Dermatology recurring procedures
|
$
|
5,456
|
$
|
5,582
|
||||
Dermatology procedures equipment
|
2,794
|
3,523
|
||||||
Total revenues
|
$
|
8,250
|
$
|
9,105
|
For the Six Months Ended June 30,
|
||||||||
2022
|
||||||||
Dermatology recurring procedures
|
$
|
10,665
|
$
|
10,649
|
||||
Dermatology procedures equipment
|
5,152
|
5,497
|
||||||
Total revenues
|
$
|
15,817
|
$
|
16,146
|
For the Three Months Ended June 30,
|
||||||||
2022
|
||||||||
Dermatology recurring procedures
|
$
|
2,205
|
$
|
2,298
|
||||
Dermatology procedures equipment
|
1,727
|
1,814
|
||||||
Total cost of revenues
|
$
|
3,932
|
$
|
4,112
|
For the Six Months Ended June 30,
|
||||||||
2022
|
||||||||
Dermatology recurring procedures
|
$
|
4,225
|
$
|
4,330
|
||||
Dermatology procedures equipment
|
2,886
|
2,695
|
||||||
Total cost of revenues
|
$
|
7,111
|
$
|
7,025
|
For the Three Months Ended June 30,
|
||||||||
2022
|
||||||||
Revenues
|
$
|
8,250
|
$
|
9,105
|
||||
Cost of revenues
|
3,932
|
4,112
|
||||||
Gross profit
|
$
|
4,318
|
$
|
4,993
|
||||
Gross profit percentage
|
52.3
|
%
|
54.8
|
%
|
For the Six Months Ended June 30,
|
||||||||
2022
|
||||||||
Revenues
|
$
|
15,817
|
$
|
16,146
|
||||
Cost of revenues
|
7,111
|
7,025
|
||||||
Gross profit
|
$
|
8,706
|
$
|
9,121
|
||||
Gross profit percentage
|
55.0
|
%
|
56.5
|
%
|
For the Three Months Ended June 30,
|
||||||||
2022
|
||||||||
Revenues
|
$
|
5,456
|
$
|
5,582
|
||||
Cost of revenues
|
2,205
|
2,298
|
||||||
Gross profit
|
$
|
3,251
|
$
|
3,284
|
||||
Gross profit percentage
|
59.6
|
%
|
58.8
|
%
|
For the Six Months Ended June 30,
|
||||||||
2022
|
||||||||
Revenues
|
$
|
10,665
|
$
|
10,649
|
||||
Cost of revenues
|
4,225
|
4,330
|
||||||
Gross profit
|
$
|
6,440
|
$
|
6,319
|
||||
Gross profit percentage
|
60.4
|
%
|
59.3
|
%
|
For the Three Months Ended June 30,
|
||||||||
2022
|
||||||||
Revenues
|
$
|
2,794
|
$
|
3,523
|
||||
Cost of revenues
|
1,727
|
1,814
|
||||||
Gross profit
|
$
|
1,067
|
$
|
1,709
|
||||
Gross profit percentage
|
38.2
|
%
|
48.5
|
%
|
For the Six Months Ended June 30,
|
||||||||
2022
|
||||||||
Revenues
|
$
|
5,152
|
$
|
5,497
|
||||
Cost of revenues
|
2,886
|
2,695
|
||||||
Gross profit
|
$
|
2,266
|
$
|
2,802
|
||||
Gross profit percentage
|
44.0
|
%
|
51.0
|
%
|
For the Three Months Ended June 30,
|
||||||||
2022
|
||||||||
Gross profit
|
$
|
4,318
|
$
|
4,993
|
||||
Amortization of acquired intangible assets
|
508
|
532
|
||||||
Non-GAAP gross profit
|
$
|
4,826
|
$
|
5,525
|
||||
Gross profit percentage
|
52.3
|
%
|
54.8
|
%
|
||||
Non-GAAP gross profit percentage
|
58.5
|
%
|
60.7
|
%
|
For the Six Months Ended June 30,
|
||||||||
2022
|
||||||||
Gross profit
|
$
|
8,706
|
$
|
9,121
|
||||
Amortization of acquired intangible assets
|
1,016
|
1,016
|
||||||
Non-GAAP gross profit
|
$
|
9,722
|
$
|
10,137
|
||||
Gross profit percentage
|
55.0
|
%
|
56.5
|
%
|
||||
Non-GAAP gross profit percentage
|
61.5
|
%
|
62.8
|
%
|
For the Three Months Ended June 30,
|
||||||||
2022
|
||||||||
Net loss
|
$
|
(3,148
|
)
|
$
|
(1,892
|
)
|
||
Adjustments:
|
||||||||
Depreciation and amortization
|
1,428
|
1,339
|
||||||
Amortization of operating lease right-of-use assets
|
63
|
92
|
||||||
Loss on disposal of property and equipment
|
24
|
18
|
||||||
Interest expense, net
|
277
|
198
|
||||||
Non-GAAP EBITDA
|
(1,356
|
)
|
(245
|
)
|
||||
Stock-based compensation expense
|
352
|
452
|
||||||
Loss on debt extinguishment
|
909
|
—
|
||||||
Non-GAAP adjusted EBITDA
|
$
|
(95
|
)
|
$
|
207
|
|
For the Six Months Ended June 30,
|
||||||||
2022
|
||||||||
Net loss
|
$
|
(5,983
|
)
|
$
|
(4,394
|
)
|
||
Adjustments:
|
||||||||
Depreciation and amortization
|
2,825
|
2,660
|
||||||
Amortization of operating lease right-of-use assets
|
168
|
181
|
||||||
Loss on disposal of property and equipment
|
24
|
35
|
||||||
Interest expense, net
|
526
|
397
|
||||||
Non-GAAP EBITDA
|
(2,440
|
)
|
(1,121
|
)
|
||||
Stock-based compensation expense
|
677
|
820
|
||||||
Loss on debt extinguishment
|
909
|
—
|
||||||
Non-GAAP adjusted EBITDA
|
$
|
(854
|
)
|
$
|
(301
|
)
|
ITEM 3. |
Quantitative and Qualitative Disclosure about Market Risk
|
ITEM 4. |
Controls and Procedures
|
ITEM 1. |
Legal Proceedings
|
- |
it may be difficult for us to satisfy our obligations, including debt service requirements under our outstanding debt, resulting in possible defaults on and acceleration of such indebtedness;
|
- |
our ability to obtain additional financing for working capital, capital expenditures, debt service requirements, acquisitions or other general corporate purposes may be impaired;
|
- |
a substantial portion of cash flow from operations may be dedicated to the payment of principal and interest on our debt, therefore reducing our ability to use our cash flow to fund our operations, capital expenditures, future business
opportunities, acquisitions and other purposes;
|
- |
we are more vulnerable to economic downturns and adverse industry conditions and our flexibility to plan for, or react to, changes in our business or industry is more limited;
|
- |
our ability to capitalize on business opportunities and to react to competitive pressures, as compared to our competitors, may be compromised due to our high level of debt; and
|
- |
our ability to borrow additional funds or to refinance debt may be limited.
|
ITEM 2. |
Unregistered Sales of Equity Securities and Use of Proceeds
|
ITEM 3. |
Defaults Upon Senior Securities.
|
ITEM 4. |
Mine Safety Disclosures
|
ITEM 5. |
Other Information
|
ITEM 6. |
Exhibits
|
Amendment No. 3 to Credit and Security Agreement, dated as of June 30, 2023, among STRATA Skin Sciences, Inc., MidCap Financial Trust, as administrative agent, and the lenders identified therein. (Incorporated by reference to Exhibit 10.1
to the Company’s Current Report on Form 8-K filed July 6, 2023.)
|
|
Credit & Security Agreement, dated as of September 30, 2021, as amended January 10, 2022, September 6, 2022 and June 30, 2023, among STRATA Skin Sciences, Inc., MidCap Financial Trust, as administrative agent, and the lenders
identified therein (Incorporated by reference to Exhibit A to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed July 6, 2023.)
|
|
Letter Agreement, dated as of June 30, 2023, between STRATA Skin Sciences, Inc. and MidCap Financial Trust, as administrative agent. (Incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed July 6,
2023.)
|
|
Amended and Restated Warrant Agreement to Purchase Shares of the Common Stock of STRATA Skin Sciences, Inc., dated as of June 30, 2023, between STRATA Skin Sciences, Inc. and MidCap Funding XXVII Trust. (Incorporated by reference to
Exhibit 10.4 to the Company’s Current Report on Form 8-K filed July 6, 2023.)
|
|
Amended and Restated Registration Rights Agreement, dated as of June 30, 2023, between STRATA Skin Sciences, Inc. and MidCap Funding XXVII Trust. (Incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K filed
July 6, 2023.)
|
|
Intellectual Property Security Agreement Supplement, dated July 5, 2023, between STRATA Skin Sciences, Inc. and MidCap Financial Trust
|
|
Rule 13a-14(a) Certificate of Chief Executive Officer (attached hereto)
|
|
Rule 13a-14(a) Certificate of Chief Financial Officer (attached hereto)
|
|
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (attached hereto)
|
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Schema
|
101.CAL
|
XBRL Taxonomy Calculation Linkbase
|
101.DEF
|
XBRL Taxonomy Definition Linkbase
|
101.LAB
|
XBRL Taxonomy Label Linkbase
|
101.PRE
|
XBRL Taxonomy Presentation Linkbase
|
* |
The certifications attached as Exhibit 32.1 accompany this Quarterly Report on Form 10-Q pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed “filed” by the
Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
|
STRATA SKIN SCIENCES, INC.
|
Date August 9, 2023
|
By:
|
/s/ Robert J. Moccia
|
|
Name: Robert J. Moccia
|
|||
Title: President & Chief Executive Officer
|
Date August 9, 2023
|
By:
|
||
Name: Christopher Lesovitz
|
|||
Title: Chief Financial Officer
|
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
6/30/33 | ||||
9/30/31 | ||||
6/1/28 | ||||
9/1/26 | ||||
7/1/26 | ||||
6/1/26 | ||||
12/31/25 | ||||
12/31/24 | ||||
9/30/24 | ||||
1/1/24 | ||||
12/31/23 | ||||
12/15/23 | ||||
Filed on: | 8/9/23 | 8-K | ||
8/7/23 | ||||
7/6/23 | 8-K | |||
7/5/23 | 4 | |||
For Period end: | 6/30/23 | 8-K | ||
4/3/23 | 4 | |||
3/31/23 | 10-K, 10-Q, 8-K | |||
2/23/23 | ||||
1/1/23 | ||||
12/31/22 | 10-K, 10-K/A | |||
12/15/22 | ||||
9/6/22 | ||||
6/30/22 | 10-Q, 4 | |||
6/2/22 | ||||
5/16/22 | 8-K | |||
5/6/22 | ||||
4/1/22 | 3, 4, 8-K | |||
3/31/22 | 10-Q, 4 | |||
3/30/22 | 4 | |||
3/12/22 | ||||
1/10/22 | 8-K | |||
1/1/22 | ||||
12/31/21 | 10-K | |||
9/30/21 | 10-Q, 8-K | |||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 3/28/24 STRATA Skin Sciences, Inc. 10-K 12/31/23 92:9.5M Broadridge Fin’l So… Inc 8/09/23 STRATA Skin Sciences, Inc. S-3 4:631K Broadridge Fin’l So… Inc |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 7/06/23 STRATA Skin Sciences, Inc. 8-K:1,2,9 6/30/23 15:1.5M Broadridge Fin’l So… Inc |