Delaware (State or other jurisdiction of incorporation or organization) | 13-3986004 (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $0.001 par value per share | SSKN | The NASDAQ Stock Market LLC |
Large accelerated filer ☐ | Accelerated filer ☐ | |||
Non-accelerated filer | Smaller reporting company ☒ | |||
Emerging growth company ☐ |
Part I. Financial Information: | PAGE | ||
ITEM 1. Financial | |||
a. | |||
b. | |||
c. | |||
d. | |||
e. | |||
f. | |||
E-31.1 |
September 30, 2017 | December 31, 2016 | |||||||
ASSETS | (unaudited) | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,127 | $ | 3,928 | ||||
Accounts receivable, net of allowance for doubtful accounts of $177 and $135, respectively | 3,184 | 3,390 | ||||||
Inventories | 3,533 | 2,817 | ||||||
Prepaid expenses and other current assets | 209 | 617 | ||||||
Total current assets | 10,053 | 10,752 | ||||||
Property and equipment, net | 8,658 | 10,180 | ||||||
Intangible assets, net | 12,302 | 13,412 | ||||||
Goodwill | 8,803 | 8,803 | ||||||
Other assets | 48 | 46 | ||||||
Total assets | $ | 39,864 | $ | 43,193 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Note payable | $ | 34 | $ | 339 | ||||
Current portion of long-term debt | 1,936 | 1,714 | ||||||
Accounts payable | 1,907 | 1,853 | ||||||
Other accrued liabilities | 1,899 | 1,992 | ||||||
Deferred revenues | 350 | 235 | ||||||
Total current liabilities | 6,126 | 6,133 | ||||||
Long-term liabilities: | ||||||||
Long-term debt, net | 8,842 | 9,752 | ||||||
Senior secured convertible debentures, net | - | 12,028 | ||||||
Warrant liability | 28 | 105 | ||||||
Deferred tax liability | 539 | 359 | ||||||
Other liabilities | 412 | 97 | ||||||
Total liabilities | 15,947 | 28,474 | ||||||
Commitment and contingencies | ||||||||
Stockholders' equity: | ||||||||
Series B Convertible Preferred Stock, $.10 par value, 10,000,000 shares authorized; 2,928 and 6,000 shares issued and outstanding, as of September 30, 2017 and December 31, 2016, respectively | - | 1 | ||||||
Series C Convertible Preferred Stock, $.10 par value, 10,000,000 shares authorized; 40,482 and 0 shares issued and outstanding, as of September 30, 2017 and December 31, 2016,respectively | 4 | - | ||||||
Common Stock, $.001 par value, 150,000,000 shares authorized; 2,477,743 and 2,166,898 shares issued and outstanding, as of September 30, 2017 and December 31, 2016, respectively | 3 | 2 | ||||||
Additional paid-in capital | 251,594 | 225,289 | ||||||
Accumulated deficit | (227,686 | ) | (210,575 | ) | ||||
Accumulated other comprehensive income | 2 | 2 | ||||||
Total stockholders' equity | 23,917 | 14,719 | ||||||
Total liabilities and stockholders' equity | $ | 39,864 | $ | 43,193 |
June 30, 2023 | December 31, 2022 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 9,034 | $ | 5,434 | ||||
Restricted cash | 1,361 | 1,361 | ||||||
Accounts receivable, net of allowance for credit losses of $244 and $382 at June 30, 2023 and December 31, 2022, respectively | 4,401 | 4,471 | ||||||
Inventories | 5,921 | 5,547 | ||||||
Prepaid expenses and other current assets | 528 | 691 | ||||||
Total current assets | 21,245 | 17,504 | ||||||
Property and equipment, net | 8,319 | 7,498 | ||||||
Operating lease right-of-use assets | 807 | 975 | ||||||
Intangible assets, net | 15,959 | 17,394 | ||||||
Goodwill | 8,803 | 8,803 | ||||||
Other assets | 71 | 98 | ||||||
Total assets | $ | 55,204 | $ | 52,272 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,880 | $ | 3,425 | ||||
Accrued expenses and other current liabilities | 6,731 | 6,555 | ||||||
Deferred revenues | 2,436 | 2,778 | ||||||
Current portion of operating lease liabilities | 392 | 355 | ||||||
Current portion of contingent consideration | 681 | 313 | ||||||
Total current liabilities | 14,120 | 13,426 | ||||||
Long-term debt, net | 14,987 | 7,476 | ||||||
Deferred revenues and other liabilities | 596 | 314 | ||||||
Deferred tax liability | 306 | 306 | ||||||
Operating lease liabilities, net of current portion | 387 | 610 | ||||||
Contingent consideration, net of current portion | 7,899 | 8,309 | ||||||
Total liabilities | 38,295 | 30,441 | ||||||
Commitments and contingencies (Note 14) | ||||||||
Stockholders’ equity: | ||||||||
Series C convertible preferred stock, $0.10 par value; 10,000,000 shares authorized; no shares issued and outstanding | — | — | ||||||
Common stock, $0.001 par value; 150,000,000 shares authorized; 34,881,453 and 34,723,046 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively | 35 | 35 | ||||||
Additional paid-in capital | 250,085 | 249,024 | ||||||
Accumulated deficit | (233,211 | ) | (227,228 | ) | ||||
Total stockholders’ equity | 16,909 | 21,831 | ||||||
Total liabilities and stockholders’ equity | $ | 55,204 | $ | 52,272 |
Three Months Ended June 30, | ||||||||
2023 | 2022 | |||||||
Revenues, net | $ | 8,250 | $ | 9,105 | ||||
Cost of revenues | 3,932 | 4,112 | ||||||
Gross profit | 4,318 | 4,993 | ||||||
Operating expenses: | ||||||||
Engineering and product development | 374 | 209 | ||||||
Selling and marketing | 3,416 | 4,146 | ||||||
General and administrative | 2,490 | 2,332 | ||||||
6,280 | 6,687 | |||||||
Loss from operations | (1,962 | ) | (1,694 | ) | ||||
Other (expense) income: | ||||||||
Loss on debt extinguishment | (909 | ) | — | |||||
Interest expense | (298 | ) | (208 | ) | ||||
Interest income | 21 | 10 | ||||||
(1,186 | ) | (198 | ) | |||||
Net loss | $ | (3,148 | ) | $ | (1,892 | ) | ||
Net loss per share of common stock, basic and diluted | $ | (0.09 | ) | $ | (0.05 | ) | ||
Weighted average shares of common stock outstanding, basic and diluted | 34,881,453 | 34,723,046 |
For the Three Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Revenues | $ | 7,480 | $ | 7,767 | ||||
Cost of revenues | 3,276 | 3,070 | ||||||
Gross profit | 4,204 | 4,697 | ||||||
Operating expenses: | ||||||||
Engineering and product development | 411 | 382 | ||||||
Selling and marketing | 2,687 | 2,840 | ||||||
General and administrative | 1,678 | 1,880 | ||||||
4,776 | 5,102 | |||||||
Operating loss before other income (expense), net | (572 | ) | (405 | ) | ||||
Other income (expense), net: | ||||||||
Interest expense, net | (1,343 | ) | (1,175 | ) | ||||
Change in fair value of warrant liability | 81 | 132 | ||||||
Other income, net | - | 3 | ||||||
Loss on extinguishment of debentures | (11,799 | ) | - | |||||
(13,061 | ) | (1,040 | ) | |||||
Loss before income taxes | (13,633 | ) | (1,445 | ) | ||||
Income tax expense | 38 | 64 | ||||||
Net loss | $ | (13,671 | ) | $ | (1,509 | ) | ||
Net loss per common share - basic and diluted | $ | (3.32 | ) | $ | (0.71 | ) | ||
Shares used in computing net loss per basic and diluted common share | 2,477,743 | 2,135,952 | ||||||
Net loss per Preferred C share - basic and diluted | $ | (1,235.43 | ) | $ | - | |||
Shares used in computing net loss per basic and diluted Preferred C share | 4,400 | - | ||||||
Other comprehensive loss: | ||||||||
Foreign currency translation adjustments | - | $ | (1 | ) | ||||
Comprehensive loss | $ | (13,671 | ) | $ | (1,510 | ) |
Six Months Ended June 30, | ||||||||
2023 | 2022 | |||||||
Revenues, net | $ | 15,817 | $ | 16,146 | ||||
Cost of revenues | 7,111 | 7,025 | ||||||
Gross profit | 8,706 | 9,121 | ||||||
Operating expenses: | ||||||||
Engineering and product development | 689 | 372 | ||||||
Selling and marketing | 7,158 | 7,762 | ||||||
General and administrative | 5,407 | 4,984 | ||||||
13,254 | 13,118 | |||||||
Loss from operations | (4,548 | ) | (3,997 | ) | ||||
Other (expense) income: | ||||||||
Loss on debt extinguishment | (909 | ) | — | |||||
Interest expense | (584 | ) | (407 | ) | ||||
Interest income | 58 | 10 | ||||||
(1,435 | ) | (397 | ) | |||||
Net loss | $ | (5,983 | ) | $ | (4,394 | ) | ||
Net loss per share of common stock, basic and diluted | $ | (0.17 | ) | $ | (0.13 | ) | ||
Weighted average shares of common stock outstanding, basic and diluted | 34,871,826 | 34,701,267 |
For the Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Revenues | $ | 23,454 | $ | 23,126 | ||||
Cost of revenues | 9,182 | 9,631 | ||||||
Gross profit | 14,272 | 13,495 | ||||||
Operating expenses: | ||||||||
Engineering and product development | 1,309 | 1,541 | ||||||
Selling and marketing | 8,914 | 10,073 | ||||||
General and administrative | 4,999 | 5,882 | ||||||
15,222 | 17,496 | |||||||
Operating loss before other income (expense), net | (950 | ) | (4,001 | ) | ||||
Other income (expense), net: | ||||||||
Interest expense, net | (4,264 | ) | (3,571 | ) | ||||
Change in fair value of warrant liability | 77 | 5,316 | ||||||
Other income, net | 6 | (1 | ) | |||||
Loss on extinguishment of debentures | (11,799 | ) | - | |||||
(15,980 | ) | 1,744 | ||||||
Loss before income taxes | (16,930 | ) | (2,257 | ) | ||||
Income tax expense | 181 | 191 | ||||||
Net loss | $ | (17,111 | ) | $ | (2,448 | ) | ||
Net loss per common share: | ||||||||
Basic | $ | (5.94 | ) | $ | (1.16 | ) | ||
Diluted | $ | (5.94 | ) | $ | (3.55 | ) | ||
Shares used in computing net loss per common share: | ||||||||
Basic | 2,328,274 | 2,107,365 | ||||||
Diluted | 2,328,274 | 2,189,543 | ||||||
Net loss per Preferred C share - basic and diluted | $ | (2,208.96 | ) | $ | - | |||
Shares used in computing net loss per basic and diluted Preferred C share | 1,483 | - | ||||||
Other comprehensive income: | ||||||||
Foreign currency translation adjustments | - | $ | 1 | |||||
Comprehensive loss | $ | (17,111 | ) | $ | (2,447 | ) |
Convertible Preferred Stock – Series B | Convertible Preferred Stock – Series C | Common Stock | Additional Paid-In | Accumulated | Accumulated Other Comprehensive | |||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Loss | Total | |||||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2017 | 6,000 | $ | 1 | - | $ | - | 2,166,898 | $ | 2 | $ | 225,289 | $ | (210,575 | ) | $ | 2 | $ | 14,719 | ||||||||||||||||||||||
Stock-based compensation | - | - | - | - | - | - | 136 | - | - | 136 | ||||||||||||||||||||||||||||||
Conversion of senior secured convertible debentures | - | - | - | - | 70,000 | - | 262 | - | - | 262 | ||||||||||||||||||||||||||||||
Conversion of convertible preferred stock | (3,072 | ) | (1 | ) | - | - | 239,500 | 1 | - | - | - | - | ||||||||||||||||||||||||||||
Issuance of common stock for fractional shares in reverse stock split | - | - | - | - | 1,345 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Issuance of convertible preferred stock in exchange for convertible debentures | - | - | 40,482 | 4 | - | - | 25,906 | - | - | 25,910 | ||||||||||||||||||||||||||||||
Net loss for the nine months ended September 30, 2017 | - | - | - | - | - | - | - | (17,111 | ) | - | (17,111 | ) | ||||||||||||||||||||||||||||
BALANCE, SEPTEMBER 30, 2017 | 2,928 | $ | - | 40,482 | $ | 4 | 2,477,743 | $ | 3 | $ | 251,594 | $ | (227,686 | ) | $ | 2 | $ | 23,917 |
Additional | Total | |||||||||||||||||||
Common Stock | Paid-In | Accumulated | Stockholders’ | |||||||||||||||||
Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||
Balance at January 1, 2023 | 34,723,046 | $ | 35 | $ | 249,024 | $ | (227,228 | ) | $ | 21,831 | ||||||||||
Stock-based compensation expense | — | — | 325 | — | 325 | |||||||||||||||
Issuance of restricted stock | 158,407 | — | — | — | — | |||||||||||||||
Net loss | — | — | — | (2,835 | ) | (2,835 | ) | |||||||||||||
Balance at March 31, 2023 | 34,881,453 | 35 | 249,349 | (230,063 | ) | 19,321 | ||||||||||||||
Stock-based compensation expense | — | — | 352 | — | 352 | |||||||||||||||
Modification of common stock warrants | — | — | 384 | — | 384 | |||||||||||||||
Net loss | — | — | — | (3,148 | ) | (3,148 | ) | |||||||||||||
Balance at June 30, 2023 | 34,881,453 | $ | 35 | $ | 250,085 | $ | (233,211 | ) | $ | 16,909 |
Additional | Total | |||||||||||||||||||
Common Stock | Paid-In | Accumulated | Stockholders’ | |||||||||||||||||
Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||
Balance at January 1, 2022 | 34,364,679 | $ | 34 | $ | 247,059 | $ | (221,679 | ) | $ | 25,414 | ||||||||||
Stock-based compensation expense | — | — | 368 | — | 368 | |||||||||||||||
Issuance of common stock for acquisition | 358,367 | 1 | 499 | — | 500 | |||||||||||||||
Net loss | — | — | — | (2,502 | ) | (2,502 | ) | |||||||||||||
Balance at March 31, 2022 | 34,723,046 | 35 | 247,926 | (224,181 | ) | 23,780 | ||||||||||||||
Stock-based compensation expense | — | — | 452 | — | 452 | |||||||||||||||
Net loss | — | — | — | (1,892 | ) | (1,892 | ) | |||||||||||||
Balance at June 30, 2022 | 34,723,046 | $ | 35 | $ | 248,378 | $ | (226,073 | ) | $ | 22,340 |
For the Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Cash Flows From Operating Activities: | ||||||||
Net loss | $ | (17,111 | ) | $ | (2,448 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 4,811 | 4,844 | ||||||
Provision for doubtful accounts | 58 | 91 | ||||||
Loss on disposal of property, plant and equipment | - | 124 | ||||||
Gain on cancelation of distributor rights agreement | (40 | ) | - | |||||
Intangible asset write-off | 23 | - | ||||||
Stock-based compensation | 136 | 401 | ||||||
Deferred tax provision | 180 | 180 | ||||||
Amortization of debt discount | 2,344 | 1,821 | ||||||
Amortization of deferred financing costs | 171 | 145 | ||||||
Loss on extinguishment of debt | 11,799 | - | ||||||
Change in fair value of warrant liability | (77 | ) | (5,316 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 130 | 1,041 | ||||||
Inventories | (716 | ) | 899 | |||||
Prepaid expenses and other assets | 406 | 202 | ||||||
Accounts payable | 71 | (2,559 | ) | |||||
Other accrued liabilities | (162 | ) | (623 | ) | ||||
Other liabilities | 108 | (40 | ) | |||||
Deferred revenues | 115 | 154 | ||||||
Net cash provided by (used in) operating activities | 2,246 | (1,084 | ) | |||||
Cash Flows From Investing Activities: | ||||||||
Lasers placed-in-service, net | (1,450 | ) | (607 | ) | ||||
Purchases of property and equipment, net | (321 | ) | - | |||||
Payments on distributor rights liability | (115 | ) | - | |||||
Acquisition costs, net of cash received | - | 125 | ||||||
Restricted cash | - | 15 | ||||||
Net cash used in investing activities | (1,886 | ) | (467 | ) | ||||
For the Six Months Ended June 30, | ||||||||
2023 | 2022 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (5,983 | ) | $ | (4,394 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 1,390 | 1,224 | ||||||
Amortization of operating lease right-of-use assets | 168 | 181 | ||||||
Amortization of intangible assets | 1,435 | 1,436 | ||||||
Amortization of deferred financing costs and debt discount | 83 | 76 | ||||||
Change in allowance for credit losses | (138 | ) | (47 | ) | ||||
Stock-based compensation expense | 677 | 820 | ||||||
Loss on disposal of property and equipment | 24 | 35 | ||||||
Loss on debt extinguishment | 909 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 208 | 491 | ||||||
Inventories | (272 | ) | (898 | ) | ||||
Prepaid expenses and other assets | 190 | (203 | ) | |||||
Accounts payable | 351 | 1,419 | ||||||
Accrued expenses and other liabilities | 211 | (217 | ) | |||||
Deferred revenues | (95 | ) | (135 | ) | ||||
Operating lease liabilities | (186 | ) | (197 | ) | ||||
Net cash used in operating activities | (1,028 | ) | (409 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment | (2,337 | ) | (1,510 | ) | ||||
Cash paid in connection with TheraClear asset acquisition | — | (631 | ) | |||||
Net cash used in investing activities | (2,337 | ) | (2,141 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from long-term debt | 7,000 | — | ||||||
Payment of deferred financing costs | (35 | ) | — | |||||
Net cash provided by financing activities | 6,965 | — | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,600 | (2,550 | ) | |||||
Cash, cash equivalents and restricted cash, beginning of period | 6,795 | 12,586 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 10,395 | $ | 10,036 | ||||
Cash and cash equivalents | $ | 9,034 | $ | 10,036 | ||||
Restricted cash | 1,361 | — | ||||||
$ | 10,395 | $ | 10,036 | |||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 497 | $ | 329 | ||||
Supplemental disclosure of non-cash operating, investing and financing activities: | ||||||||
Inventories acquired in connection with TheraClear asset acquisition | $ | — | $ | 71 | ||||
Intangible assets acquired in connection with TheraClear asset acquisition | $ | — | $ | 10,182 | ||||
Contingent consideration issued in connection with TheraClear asset acquisition | $ | — | $ | 9,122 | ||||
Common stock issued in connection with TheraClear asset acquisition | $ | — | $ | 500 | ||||
Modification of common stock warrants | $ | 384 | $ | — | ||||
Transfer of property and equipment to inventories | $ | 102 | $ | 449 | ||||
Accrued payment of contingent consideration | $ | 42 | $ | — | ||||
Accrued exit fee recorded as debt discount | $ | 450 | $ | — | ||||
Deferred financing costs in accounts payable | $ | 62 | $ | — |
For the Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Cash Flows From Financing Activities: | ||||||||
Proceeds from long-term debt | - | 1,500 | ||||||
Repayments of long-term debt | (857 | ) | - | |||||
Payments on notes payable | (304 | ) | (299 | ) | ||||
Net cash (used in ) provided by financing activities | (1,161 | ) | 1,201 | |||||
Effect of exchange rate changes on cash | - | 4 | ||||||
Net decrease in cash and cash equivalents | (801 | ) | (346 | ) | ||||
Cash and cash equivalents, beginning of period | 3,928 | 3,303 | ||||||
Cash and cash equivalents, end of period | $ | 3,127 | $ | 2,957 | ||||
Supplemental information: | ||||||||
Cash paid for interest | $ | 1,934 | $ | 1,517 | ||||
Supplemental information of non-cash investing and financing activities: | ||||||||
Conversion of senior secured convertible debentures into common stock | $ | 262 | $ | 248 | ||||
Conversion of series A convertible preferred stock into common stock | $ | 309 | ||||||
Recognition of warrants issued as debt discount | $ | - | $ | 47 | ||||
Reclassification of warrant liabilities to equity | $ | - | $ | 1,541 | ||||
Acquisition of distributor rights asset and license liability | $ | 286 | $ | - | ||||
Issuance of convertible preferred stock in exchange for convertible debentures | $ | 25,910 | $ | - |
• | Level 1 – | |
• | Level 2 – | |
• | Level 3 – |
Fair Value as of September 30, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Liabilities: | ||||||||||||||||
Warrant liability (Note 8) | $ | 28 | $ | - | $ | - | $ | 28 | ||||||||
Fair Value as of December 31, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Liabilities: | ||||||||||||||||
Warrant liability (Note 8) | $ | 105 | $ | - | $ | - | $ | 105 |
Three Months Ended June 30, | ||||||||
2023 | 2022 | |||||||
Balance, beginning of period | $ | 229 | $ | 99 | ||||
Additions | 93 | 60 | ||||||
Expirations and claims satisfied | (53 | ) | (26 | ) | ||||
Total | 269 | 133 | ||||||
Less current portion within accrued expenses and other current liabilities | (163 | ) | (98 | ) | ||||
Balance within deferred revenues and other liabilities | $ | 106 | $ | 231 |
Six Months Ended June 30, | ||||||||
2023 | 2022 | |||||||
Balance, beginning of period | $ | 207 | $ | 79 | ||||
Additions | 120 | 94 | ||||||
Expirations and claims satisfied | (58 | ) | (40 | ) | ||||
Total | 269 | 133 | ||||||
Less current portion within accrued expenses and other current liabilities | (163 | ) | (98 | ) | ||||
Balance within deferred revenues and other liabilities | $ | 106 | $ | 231 |
For the Three Months ended September 30, 2017 | For the Three Months ended September 30, 2017 | |||||||||||||||
Common stock | Series C Preferred stock | Common stock | Series C Preferred stock | |||||||||||||
Net loss | $ | (8,235 | ) | $ | (5,436 | ) | $ | (13,835 | ) | $ | (3,276 | ) | ||||
Weighted average number of shares outstanding during the period | 2,477,743 | 4,400 | 2,328,274 | 1,483 | ||||||||||||
Basic and Diluted net loss per share | $ | (3.32 | ) | $ | (1,235.43 | ) | $ | (5.94 | ) | $ | (2,208.96 | ) |
June 30, | ||||||||
2023 | 2022 | |||||||
Restricted stock units | 119,597 | 75,540 | ||||||
Stock options | 5,369,714 | 4,544,714 | ||||||
Common stock warrants | 800,000 | 373,626 | ||||||
Total | 6,289,311 | 4,993,880 |
• | identification of the contract, or contracts, with a customer; | |
• | 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 | $ | 641 | ||
2024 | 1,103 | |||
2025 | 530 | |||
2026 | 312 | |||
2027 | 90 | |||
Total | $ | 2,676 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2017 | 2016 | 2017 | 2016 | |||||
Common stock equivalents of convertible debentures | 7,546,299 | 8,541,577 | 8,191,777 | 8,561,343 | ||||
Common stock purchase warrants | 2,406,625 | 2,656,816 | 2,406,625 | 2,724,584 | ||||
Common stock equivalents of convertible Preferred B stock | 228,336 | 493,782 | 343,261 | 502,661 | ||||
Common stock options | 855,389 | 600,914 | 873,554 | 563,155 | ||||
Total | 11,036,649 | 12,293,089 | 11,815,217 | 12,351,743 |
Consideration: | ||||
Cash payment | $ | 500 | ||
Common stock issued | 500 | |||
Transaction costs | 131 | |||
Contingent consideration | 9,122 | |||
Total consideration | $ | 10,253 | ||
Assets acquired: | ||||
Technology intangible asset | $ | 10,182 | ||
Inventories | 71 | |||
Total assets acquired | $ | 10,253 |
June 30, 2023 | December 31, 2022 | |||||||
Raw materials and work-in-process | $ | 5,622 | $ | 5,418 | ||||
Finished goods | 299 | 129 | ||||||
Total inventories | $ | 5,921 | $ | 5,547 |
September 30, 2017 | December 31, 2016 | |||||||
(unaudited) | ||||||||
Raw materials and work in progress | $ | 2,448 | $ | 2,440 | ||||
Finished goods | 1,085 | 377 | ||||||
Total inventories | $ | 3,533 | $ | 2,817 |
September 30, 2017 | December 31, 2016 | |||||||
(unaudited) | ||||||||
Lasers placed-in-service | $ | 18,018 | $ | 16,712 | ||||
Equipment, computer hardware and software | 468 | 160 | ||||||
Furniture and fixtures | 118 | 111 | ||||||
Leasehold improvements | 31 | 25 | ||||||
18,635 | 17,008 | |||||||
Accumulated depreciation and amortization | (9,977 | ) | (6,828 | ) | ||||
Property and equipment, net | $ | 8,658 | $ | 10,180 |
June 30, 2023 | December 31, 2022 | |||||||
Dermatology devices placed-in-service | $ | 30,767 | $ | 28,790 | ||||
Equipment, computer hardware and software | 293 | 293 | ||||||
Furniture and fixtures | 235 | 235 | ||||||
Leasehold improvements | 96 | 136 | ||||||
31,391 | 29,454 | |||||||
Accumulated depreciation and amortization | (23,072 | ) | (21,956 | ) | ||||
Property and equipment, net | $ | 8,319 | $ | 7,498 |
Balance | Accumulated Amortization | Intangible Assets, net | ||||||||||
June 30, 2023 | ||||||||||||
Core technology | $ | 5,700 | $ | (4,560 | ) | $ | 1,140 | |||||
Product technology | 12,182 | (3,527 | ) | 8,655 | ||||||||
Customer relationships | 6,900 | (5,520 | ) | 1,380 | ||||||||
Tradenames | 1,500 | (1,200 | ) | 300 | ||||||||
Pharos customer lists | 5,314 | (830 | ) | 4,484 | ||||||||
$ | 31,596 | $ | (15,637 | ) | $ | 15,959 | ||||||
December 31, 2022 | ||||||||||||
Core technology | $ | 5,700 | $ | (4,275 | ) | $ | 1,425 | |||||
Product technology | 12,182 | (3,018 | ) | 9,164 | ||||||||
Customer relationships | 6,900 | (5,175 | ) | 1,725 | ||||||||
Tradenames | 1,500 | (1,125 | ) | 375 | ||||||||
Pharos customer lists | 5,314 | (609 | ) | 4,705 | ||||||||
$ | 31,596 | $ | (14,202 | ) | $ | 17,394 |
September 30, 2017 | December 31, 2016 | |||||||
(unaudited) | ||||||||
Core technology | $ | 5,700 | $ | 5,974 | ||||
Product technology | 2,000 | 2,000 | ||||||
Customer relationships | 6,900 | 6,900 | ||||||
Tradenames | 1,500 | 1,500 | ||||||
Distribution rights | 286 | - | ||||||
16,386 | 16,374 | |||||||
Accumulated amortization | (4,084 | ) | (2,962 | ) | ||||
Patents and licensed technologies, net | $ | 12,302 | $ | 13,412 |
Remaining 2017 | $ | 476 | ||
2018 | 1,905 | |||
2019 | 1,905 | |||
2020 | 1,670 | |||
2021 | 1,410 | |||
Thereafter | 4,936 | |||
Total | $ | 12,302 |
Remaining 2023 | $ | 1,436 | ||
2024 | 2,871 | |||
2025 | 2,166 | |||
2026 | 1,461 | |||
2027 | 1,461 |
June 30, 2023 | December 31, 2022 | |||||||
Warranty obligations | $ | 163 | $ | 136 | ||||
Compensation and related benefits | 2,145 | 1,997 | ||||||
State sales, use and other taxes | 4,203 | 3,986 | ||||||
Professional fees and other | 220 | 436 | ||||||
Total accrued expenses and other current liabilities | $ | 6,731 | $ | 6,555 |
September 30, 2017 | December 31, 2016 | |||||||
(unaudited) | ||||||||
Accrued warranty, current | $ | 98 | $ | 102 | ||||
Accrued compensation, including commissions and vacation | 861 | 1,177 | ||||||
Accrued sales and other taxes | 520 | 439 | ||||||
Distributor rights liability, current | 82 | - | ||||||
Accrued professional fees and other accrued liabilities | 338 | 274 | ||||||
Total other accrued liabilities | $ | 1,899 | $ | 1,992 |
December 31, 2016 | ||||
Senior secured 2.25% convertible debentures, net of unamortized debt discount of $24,314; and deferred financing costs of $524 | $ | 7,174 | ||
Senior secured 4% convertible debentures, net of unamortized debt discount of $3,469; and deferred financing costs of $392 | 4,854 | |||
Total convertible debt | $ | 12,028 |
2026 | $ | 3,750 | ||
2027 | 7,500 | |||
2028 | 3,750 | |||
15,000 | ||||
Exit fee | 450 | |||
15,450 | ||||
Less: unamortized debt discount | (463 | ) | ||
Long-term debt, net | $ | 14,987 |
September 30, 2017 | December 31, 2016 | |||||||
(unaudited) | ||||||||
Term note, net of debt discount of $177 and $258, respectively; and deferred financing cost of $188 and $276, respectively | $ | 10,778 | $ | 11,466 | ||||
Less: current portion | (1,936 | ) | (1,714 | ) | ||||
Total long-term debt | $ | 8,842 | $ | 9,752 |
Number of Shares | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (in years) | ||||||||||
Outstanding at January 1, 2023 | 4,474,714 | $ | 1.72 | |||||||||
Granted | 905,000 | $ | 1.06 | |||||||||
Exercised | — | $ | — | |||||||||
Forfeited and expired | (10,000 | ) | $ | 1.45 | ||||||||
Outstanding at June 30, 2023 | 5,369,714 | $ | 1.61 | 7.9 | ||||||||
Exercisable at June 30, 2023 | 2,787,390 | $ | 1.81 | 7.1 | ||||||||
Vested and expected to vest | 5,369,714 | $ | 1.61 | 7.9 |
Remaining in 2017 | $ | 572 | ||
2018 | 2,387 | |||
2019 | 4,092 | |||
2020 | 4,092 | |||
$ | 11,143 | |||
Expected volatility | 71.4 | % | ||
Risk‑free interest rate | 3.6 | % | ||
Expected term (in years) | 6.2 | |||
Expected dividend yield | 0.0 | % |
September 30, 2017 | December 31, 2016 | |||||||
Number of shares underlying the warrants | 403,090 | 403,090 | ||||||
Stock price | $ | 1.77 | $ | 2.20 | ||||
Volatility | 48.00 | % | 47.00 | % | ||||
Risk-free interest rate | 1.31 – 1.45 | % | 1.22 | % | ||||
Expected dividend yield | 0 | % | 0 | % | ||||
Expected warrant life | 1.37 – 1.60 years | 2.12 – 2.35 years |
Number of Shares | Weighted Average Grant Date Fair Value | |||||||
Unvested at January 1, 2023 | 119,597 | $ | 0.93 | |||||
Granted | — | $ | — | |||||
Vested | (79,730 | ) | $ | 0.93 | ||||
Unvested at June 30, 2023 | 39,867 | $ | 0.93 |
Issuance Date | December 31, 2016 | Decrease in Fair Value | September 30, 2017 | |||||||||
10/31/2013 | $ | 39 | $ | (28 | ) | $ | 11 | |||||
2/5/2014 | 66 | ( 49 | ) | 17 | ||||||||
Total | $ | 105 | $ | (77 | ) | $ | 28 |
Issuance Date | December 31, 2015 | Decrease in Fair Value | Reclassification to Equity | September 30, 2016 | ||||||||||||
10/31/2013 | $ | 379 | $ | (312 | ) | $ | - | $ | 67 | |||||||
2/5/2014 | 715 | (597 | ) | - | 118 | |||||||||||
7/24/2014 Series A | 2,415 | (1,573 | ) | (842 | ) | - | ||||||||||
7/24/2014 Series B | 1,726 | (1,713 | ) | (13 | ) | - | ||||||||||
6/22/2015 | 1,807 | (1,121 | ) | (686 | ) | - | ||||||||||
Total | $ | 7,042 | $ | (5,316 | ) | $ | (1,541 | ) | $ | 185 |
Issue Date | Expiration Date | Total Warrants | Exercise Price | ||||||
4/26/2013 | 4/26/2018 | 13,865 | $ | 55.90 | |||||
10/31/2013 | 4/30/2019 | 137,143 | $ | 3.75 | |||||
2/5/2014 | 2/5/2019 | 265,947 | $ | 3.75 | |||||
7/24/2014 | 7/24/2019 | 1,239,769 | $ | 3.75 - $ 12.25 | |||||
6/22/2015 | 6/22/2020 | 600,000 | $ | 3.75 | |||||
12/30/2015 | 12/30/2020 | 130,089 | $ | 5.65 | |||||
1/29/2016 | 1/29/2021 | 19,812 | $ | 5.30 | |||||
2,406,625 |
Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | ||||||||||
Three Months Ended June 30, 2023 | ||||||||||||
Revenues, net | $ | 5,456 | $ | 2,794 | $ | 8,250 | ||||||
Cost of revenues | 2,205 | 1,727 | 3,932 | |||||||||
Gross profit | 3,251 | 1,067 | 4,318 | |||||||||
Gross profit % | 59.6 | % | 38.2 | % | 52.3 | % | ||||||
Allocated expenses: | ||||||||||||
Engineering and product development | 289 | 85 | 374 | |||||||||
Selling and marketing | 2,850 | 566 | 3,416 | |||||||||
Unallocated expenses | — | — | 2,490 | |||||||||
3,139 | 651 | 6,280 | ||||||||||
Income (loss) from operations | 112 | 416 | (1,962 | ) | ||||||||
Loss on debt extinguishment | — | — | (909 | ) | ||||||||
Interest expense | — | — | (298 | ) | ||||||||
Interest income | — | — | 21 | |||||||||
Net income (loss) | $ | 112 | $ | 416 | $ | (3,148 | ) |
Dermatology Recurring Procedures | Dermatology Procedures Equipment | Dermatology Imaging | TOTAL | |||||||||||||
Revenues | $ | 5,720 | $ | 1,751 | $ | 9 | $ | 7,480 | ||||||||
Costs of revenues | 2,084 | 967 | 225 | 3,276 | ||||||||||||
Gross profit | 3,636 | 784 | (216 | ) | 4,204 | |||||||||||
Gross profit % | 63.6 | % | 44.8 | % | (2400.0 | %) | 56.2 | % | ||||||||
Allocated operating expenses: | ||||||||||||||||
Engineering and product development | 348 | 63 | - | 411 | ||||||||||||
Selling and marketing expenses | 2,238 | 449 | - | 2,687 | ||||||||||||
Unallocated operating expenses | - | - | - | 1,678 | ||||||||||||
2,586 | 512 | - | 4,776 | |||||||||||||
Income (loss) from operations | 1,050 | 272 | (216 | ) | (572 | ) | ||||||||||
Interest expense, net | - | - | - | (1,343 | ) | |||||||||||
Change in fair value of warrant liability | - | - | - | 81 | ||||||||||||
Loss on extinguishment of debt | - | - | - | (11,799 | ) | |||||||||||
Income (loss) before income taxes | $ | 1,050 | $ | 272 | $ | (216 | ) | $ | (13,633 | ) | ||||||
Dermatology Recurring Procedures | Dermatology Procedures Equipment | Dermatology Imaging | TOTAL | |||||||||||||
Revenues | $ | 6,205 | $ | 1,550 | $ | 12 | $ | 7,767 | ||||||||
Costs of revenues | 2,162 | 877 | 31 | 3,070 | ||||||||||||
Gross profit | 4,043 | 673 | ( 19 | ) | 4,697 | |||||||||||
Gross profit % | 65.2 | % | 43.4 | % | (158.3 | %) | 60.5 | % | ||||||||
Allocated operating expenses: | ||||||||||||||||
Engineering and product development | 343 | 31 | 8 | 382 | ||||||||||||
Selling and marketing expenses | 2,767 | 57 | 16 | 2,840 | ||||||||||||
Unallocated operating expenses | - | - | - | 1,880 | ||||||||||||
3,110 | 88 | 24 | 5,102 | |||||||||||||
Income (loss) from operations | 933 | 585 | (43 | ) | (405 | ) | ||||||||||
Interest expense, net | - | - | - | (1,175 | ) | |||||||||||
Change in fair value of warrant liability | - | - | - | 132 | ||||||||||||
Other income (expense), net | - | - | - | 3 | ||||||||||||
Income (loss) before income taxes | $ | 933 | $ | 585 | $ | (43 | ) | $ | (1,445 | ) |
Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | ||||||||||
Six Months Ended June 30, 2023 | ||||||||||||
Revenues, net | $ | 10,665 | $ | 5,152 | $ | 15,817 | ||||||
Cost of revenues | 4,225 | 2,886 | 7,111 | |||||||||
Gross profit | 6,440 | 2,266 | 8,706 | |||||||||
Gross profit % | 60.4 | % | 44.0 | % | 55.0 | % | ||||||
Allocated expenses: | ||||||||||||
Engineering and product development | 534 | 155 | 689 | |||||||||
Selling and marketing | 6,203 | 955 | 7,158 | |||||||||
Unallocated expenses | — | — | 5,407 | |||||||||
6,737 | 1,110 | 13,254 | ||||||||||
(Loss) income from operations | (297 | ) | 1,156 | (4,548 | ) | |||||||
Loss on debt extinguishment | — | — | (909 | ) | ||||||||
Interest expense | — | — | (584 | ) | ||||||||
Interest income | — | — | 58 | |||||||||
Net (loss) income | $ | (297 | ) | $ | 1,156 | $ | (5,983 | ) |
Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | ||||||||||
Three Months Ended June 30, 2022 | ||||||||||||
Revenues, net | $ | 5,582 | $ | 3,523 | $ | 9,105 | ||||||
Cost of revenues | 2,298 | 1,814 | 4,112 | |||||||||
Gross profit | 3,284 | 1,709 | 4,993 | |||||||||
Gross profit % | 58.8 | % | 48.5 | % | 54.8 | % | ||||||
Allocated expenses: | ||||||||||||
Engineering and product development | 133 | 76 | 209 | |||||||||
Selling and marketing | 3,629 | 517 | 4,146 | |||||||||
Unallocated expenses | — | — | 2,332 | |||||||||
3,762 | 593 | 6,687 | ||||||||||
(Loss) income from operations | (478 | ) | 1,116 | (1,694 | ) | |||||||
Interest expense | — | — | (208 | ) | ||||||||
Interest income | — | — | 10 | |||||||||
Net (loss) income | $ | (478 | ) | $ | 1,116 | $ | (1,892 | ) |
Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | ||||||||||
Six Months Ended June 30, 2022 | ||||||||||||
Revenues, net | $ | 10,649 | $ | 5,497 | $ | 16,146 | ||||||
Cost of revenues | 4,330 | 2,695 | 7,025 | |||||||||
Gross profit | 6,319 | 2,802 | 9,121 | |||||||||
Gross profit % | 59.3 | % | 51.0 | % | 56.5 | % | ||||||
Allocated expenses: | ||||||||||||
Engineering and product development | 259 | 113 | 372 | |||||||||
Selling and marketing | 6,929 | 833 | 7,762 | |||||||||
Unallocated expenses | — | — | 4,984 | |||||||||
7,188 | 946 | 13,118 | ||||||||||
(Loss) income from operations | (869 | ) | 1,856 | (3,997 | ) | |||||||
Interest expense | — | — | (407 | ) | ||||||||
Interest income | — | — | 10 | |||||||||
Net (loss) income | $ | (869 | ) | $ | 1,856 | $ | (4,394 | ) |
Dermatology Recurring Procedures | Dermatology Procedures Equipment | Dermatology Imaging | TOTAL | |||||||||||||
Revenues | $ | 17,653 | $ | 5,784 | $ | 17 | $ | 23,454 | ||||||||
Costs of revenues | 5,969 | 2,988 | 225 | 9,182 | ||||||||||||
Gross profit | 11,684 | 2,796 | ( 208 | ) | 14,272 | |||||||||||
Gross profit % | 66.2 | % | 48.3 | % | (1223.5 | %) | 60.9 | % | ||||||||
Allocated operating expenses: | ||||||||||||||||
Engineering and product development | 1,104 | 204 | 1 | 1,309 | ||||||||||||
Selling and marketing expenses | 7,747 | 1,167 | - | 8,914 | ||||||||||||
Unallocated operating expenses | - | - | - | 4,999 | ||||||||||||
8,851 | 1,371 | 1 | 15,222 | |||||||||||||
Income (loss) from operations | 2,833 | 1,425 | (209 | ) | (950 | ) | ||||||||||
Interest expense, net | - | - | - | (4,264 | ) | |||||||||||
Change in fair value of warrant liability | - | - | - | 77 | ||||||||||||
Extinguishment of debt | - | - | - | (11,799 | ) | |||||||||||
Other income (expense), net | - | - | - | 6 | ||||||||||||
Income (loss) before income taxes | $ | 2,833 | $ | 1,425 | $ | (209 | ) | $ | (16,930 | ) | ||||||
Dermatology Recurring Procedures | Dermatology Procedures Equipment | Dermatology Imaging | TOTAL | |||||||||||||
Revenues | $ | 17,826 | $ | 5,174 | $ | 126 | $ | 23,126 | ||||||||
Costs of revenues | 6,723 | 2,641 | 267 | 9,631 | ||||||||||||
Gross profit | 11,103 | 2,533 | ( 141 | ) | 13,495 | |||||||||||
Gross profit % | 62.3 | % | 49.0 | % | (111.9 | %) | 58.4 | % | ||||||||
Allocated operating expenses: | ||||||||||||||||
Engineering and product development | 977 | 147 | 417 | 1,541 | ||||||||||||
Selling and marketing expenses | 9,626 | 261 | 186 | 10,073 | ||||||||||||
Unallocated operating expenses | - | - | - | 5,882 | ||||||||||||
10,603 | 408 | 603 | 17,496 | |||||||||||||
Income (loss) from operations | 500 | 2,125 | (744 | ) | (4,001 | ) | ||||||||||
Interest expense, net | - | - | - | (3,571 | ) | |||||||||||
Change in fair value of warrant liability | - | - | - | 5,316 | ||||||||||||
Other income (expense), net | - | - | - | (1 | ) | |||||||||||
Income (loss) before income taxes | $ | 500 | $ | 2,125 | $ | (744 | ) | $ | (2,257 | ) |
Three Months Ended June 30, | ||||||||
2023 | 2022 | |||||||
Dermatology recurring procedures | $ | 1,238 | $ | 1,059 | ||||
Dermatology procedures equipment | 187 | 277 | ||||||
Unallocated expenses | 3 | 3 | ||||||
Consolidated total | $ | 1,428 | $ | 1,339 |
Six Months Ended June 30, | ||||||||
2023 | 2022 | |||||||
Dermatology recurring procedures | $ | 2,451 | $ | 2,211 | ||||
Dermatology procedures equipment | 367 | 442 | ||||||
Unallocated expenses | 7 | 7 | ||||||
Consolidated total | $ | 2,825 | $ | 2,660 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Domestic | $ | 6,337 | $ | 6,287 | $ | 19,612 | $ | 18,444 | ||||||||
Foreign | 1,143 | 1,480 | 3,842 | 4,682 | ||||||||||||
$ | 7,480 | $ | 7,767 | $ | 23,454 | $ | 23,126 |
Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | ||||||||||
Three Months Ended June 30, 2023 | ||||||||||||
Domestic | $ | 5,141 | $ | 926 | $ | 6,067 | ||||||
Foreign | 315 | 1,868 | 2,183 | |||||||||
Total | $ | 5,456 | $ | 2,794 | $ | 8,250 |
Six Months Ended June 30, 2023 | ||||||||||||
Domestic | $ | 9,988 | $ | 1,422 | $ | 11,410 | ||||||
Foreign | 677 | 3,730 | 4,407 | |||||||||
Total | $ | 10,665 | $ | 5,152 | $ | 15,817 |
Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | ||||||||||
Three Months Ended June 30, 2022 | ||||||||||||
Domestic | $ | 5,177 | $ | 547 | $ | 5,724 | ||||||
Foreign | 405 | 2,976 | 3,381 | |||||||||
Total | $ | 5,582 | $ | 3,523 | $ | 9,105 |
Six Months Ended June 30, 2022 | ||||||||||||
Domestic | $ | 9,866 | $ | 1,242 | $ | 11,108 | ||||||
Foreign | 783 | 4,255 | 5,038 | |||||||||
Total | $ | 10,649 | $ | 5,497 | $ | 16,146 |
Remaining 2023 | $ | 220 | ||
2024 | 386 | |||
2025 | 195 | |||
2026 | 55 | |||
Total remaining lease payments | $ | 856 | ||
Less: imputed interest | (77 | ) | ||
Total lease liabilities | $ | 779 |
Year, | ||||
2017 (remaining three months) | $ | 113 | ||
2018 | 429 | |||
2019 | 160 | |||
Total | $ | 702 |
• | 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 |
• | 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. |
• | ||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Dermatology Recurring Procedures | $ | 5,720 | $ | 6,205 | $ | 17,653 | $ | 17,826 | ||||||||
Dermatology Procedures Equipment | 1,751 | 1,550 | 5,784 | 5,174 | ||||||||||||
Dermatology Imaging | 9 | 12 | 17 | 126 | ||||||||||||
Total Revenues | $ | 7,480 | $ | 7,767 | $ | 23,454 | $ | 23,126 |
For the Three Months Ended June 30, | ||||||||
2023 | 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, | ||||||||
2023 | 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 September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Dermatology Recurring Procedures | $ | 2,084 | $ | 2,326 | $ | 5,969 | $ | 6,723 | ||||||||
Dermatology Procedures Equipment | 967 | 607 | 2,988 | 2,641 | ||||||||||||
Dermatology Imaging | - | 109 | 225 | 267 | ||||||||||||
Total Cost of Revenues | $ | 3,276 | $ | 3,042 | $ | 9,182 | $ | 9,631 |
For the Three Months Ended June 30, | ||||||||
2023 | 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, | ||||||||
2023 | 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, | ||||||||
2023 | 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, | ||||||||
2023 | 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 | % |
Company Profit Analysis | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues | $ | 7,480 | $ | 7,767 | $ | 23,453 | $ | 23,126 | ||||||||
Percent (decrease) increase | (3.7 | %) | 1.4 | % | ||||||||||||
Cost of revenues | 3,276 | 3,070 | 9,182 | 9,631 | ||||||||||||
Percent increase (decrease) | 6.7 | % | (4.7 | %) | ||||||||||||
Gross profit | $ | 4,204 | $ | 4,697 | $ | 14,271 | $ | 13,495 | ||||||||
Gross margin percentage | 56.2 | % | 60.5 | % | 60.9 | % | 58.4 | % |
Dermatology Recurring Procedures | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues | $ | 5,720 | $ | 6,205 | $ | 17,653 | $ | 17,826 | ||||||||
Percent decrease | (7.8 | %) | (1.0 | %) | ||||||||||||
Cost of revenues | 2,084 | 2,162 | 5,969 | 6,723 | ||||||||||||
Percent decrease | (3.6 | %) | (11.2 | %) | ||||||||||||
Gross profit | $ | 3,636 | $ | 4,043 | 11,684 | $ | 11,103 | |||||||||
Gross margin percentage | 63.6 | % | 65.2 | % | 66.2 | % | 62.3 | % |
For the Three Months Ended June 30, | ||||||||
2023 | 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, | ||||||||
2023 | 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, | ||||||||
2023 | 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, | ||||||||
2023 | 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 | % |
Dermatology Procedures Equipment | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues | $ | 1,751 | $ | 1,550 | $ | 5,784 | $ | 5,174 | ||||||||
Percent increase | 13.0 | % | 11.8 | % | ||||||||||||
Cost of revenues | 967 | 877 | 2,988 | 2,641 | ||||||||||||
Percent increase | 10.3 | % | 13.1 | % | ||||||||||||
Gross profit | $ | 784 | $ | 673 | $ | 2,796 | $ | 2,533 | ||||||||
Gross margin percentage | 44.8 | % | 43.4 | % | 48.3 | % | 49.0 | % |
For the Three Months Ended September 30, | ||||||||||||
2017 | 2016 | Change | ||||||||||
Net loss | $ | (13,671 | ) | $ | (1,509 | ) | $ | (12,162 | ) | |||
Adjustments: | ||||||||||||
Income taxes | 38 | 64 | (26 | ) | ||||||||
Depreciation and amortization * | 1,602 | 1,521 | 81 | |||||||||
Interest expense, net | 564 | 537 | 27 | |||||||||
Non-cash interest expense | 779 | 638 | 141 | |||||||||
Non-GAAP EBITDA | (10,688 | ) | 1,251 | (11,939 | ) | |||||||
Stock-based compensation expense | 63 | 116 | (53 | ) | ||||||||
Change in fair value of warrants | (81 | ) | (132 | ) | 51 | |||||||
Loss on extinguishment of debentures | 11,799 | - | 11,799 | |||||||||
Non-GAAP adjusted EBITDA | $ | 1,093 | $ | 1,235 | $ | (142 | ) | |||||
For the Three Months Ended June 30, | ||||||||
2023 | 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 Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | Change | ||||||||||
Net loss | $ | (17,111 | ) | $ | (2,448 | ) | $ | (14,663 | ) | |||
Adjustments: | ||||||||||||
Income taxes | 181 | 191 | (10 | ) | ||||||||
Depreciation and amortization * | 4,811 | 4,844 | (33 | ) | ||||||||
Interest expense, net | 1,752 | 1,604 | 148 | |||||||||
Non-cash interest expense | 2,512 | 1,967 | 545 | |||||||||
Non-GAAP EBITDA | (7,855 | ) | 6,158 | (14,013 | ) | |||||||
Stock-based compensation expense | 136 | 401 | (265 | ) | ||||||||
Change in fair value of warrants | (77 | ) | (5,316 | ) | 5,239 | |||||||
Loss on extinguishment of debt | 11,799 | - | 11,799 | |||||||||
Non-GAAP adjusted EBITDA | $ | 4,003 | $ | 1,243 | $ | 2,760 | ||||||
For the Six Months Ended June 30, | ||||||||
2023 | 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, | ||||||||
2023 | 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, | ||||||||
2023 | 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 |
Letter Agreement, dated as of | ||
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) | ||
(attached hereto) | ||
(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 |
STRATA SKIN SCIENCES, INC. |
Date August 9, 2023 | By: | /s/ Robert J. Moccia | |
Name: Robert J. | |||
Title: President & Chief Executive Officer |
Date August 9, 2023 | By: | /s/ Christopher Lesovitz | |
Title: Chief Financial Officer |