STRATA Skin Sciences (SSKN) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 14, 2016
Document And Entity Information
Entity Registrant Name	STRATA Skin Sciences, Inc.
Entity Central Index Key	1,051,514
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,757,804
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 2,957	$ 3,303
Restricted cash	0	15
Accounts receivable, net of allowance for doubtful accounts of $105 and $45, respectively	2,936	4,068
Inventories, net	3,229	4,128
Prepaid expenses and other current assets	266	465
Total current assets	9,388	11,979
Property and equipment, net	10,848	13,851
Patents and licensed technologies, net	6,515	7,247
Other intangible assets, net	7,350	7,980
Goodwill	8,803	8,928
Other assets	46	94
Total assets	42,950	50,079
Current liabilities:
Note payable	0	299
Current portion of long-term debt	857	0
Accounts payable	1,899	4,446
Other accrued liabilities	1,538	2,161
Deferred revenues	327	173
Total current liabilities	4,621	7,079
Long-term liabilities:
Long-term debt, net	10,549	9,851
Senior secured convertible debentures, net	11,398	9,839
Warrant liability	185	7,042
Deferred tax liability	299	119
Other liabilities	21	62
Total liabilities	27,073	33,992
Commitment and contingencies
Stockholders' equity:
Preferred Stock, $.10 par value, 10,000,000 shares authorized; 6,196 shares issued and outstanding	1	1
Common Stock, $.001 par value, 150,000,000 shares authorized; 10,732,804 and 10,283,393 shares issued and outstanding, respectively	11	10
Additional paid-in capital	225,551	223,315
Accumulated deficit	(209,688)	(207,240)
Accumulated other comprehensive income	2	1
Total stockholders' equity	15,877	16,087
Total liabilities and stockholders' equity	$ 42,950	$ 50,079

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Allowance for doubtful accounts, current	$ 105	$ 45
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.10	$ 0.10
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	6,196	6,196
Preferred stock, shares outstanding (in shares)	6,196	6,196
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	10,732,804	10,283,393
Common stock, shares outstanding (in shares)	10,732,804	10,283,393

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) [Abstract]
Revenues	$ 7,767	$ 8,323	$ 23,126	$ 9,015
Cost of revenues	3,070	3,042	9,631	10,226
Gross profit (loss)	4,697	5,281	13,495	(1,211)
Operating expenses:
Engineering and product development	382	560	1,541	1,289
Selling and marketing	2,840	3,912	10,073	5,641
General and administrative	1,880	3,132	5,882	6,819
Total operating expenses	5,102	7,604	17,496	13,749
Operating loss before other income (expense), net	(405)	(2,323)	(4,001)	(14,960)
Other income (expense), net:
Interest expense, net	(1,175)	(5,577)	(3,571)	(8,738)
Change in fair value of warrant liability	132	(1,329)	5,316	(679)
Other income, net	3	(5)	(1)	23
Other income (expense), net	(1,040)	(6,911)	1,744	(9,394)
Loss before income taxes	(1,445)	(9,234)	(2,257)	(24,354)
Income tax expense	64	0	191	0
Net loss	(1,509)	(9,234)	(2,448)	(24,354)
Deemed dividend related to warrant modification	0	(2,962)	0	(2,962)
Net loss attributable to common stockholders	$ (1,509)	$ (12,196)	$ (2,448)	$ (27,316)
Net loss per share:
Basic (in dollars per share)			$ (0.23)	$ (3.42)
Diluted (in dollars per share)			$ (0.71)	$ (3.42)
Shares used in computing net loss per share:
Basic (in shares)			10,536,824	7,994,012
Diluted (in shares)			10,947,713	7,994,012
Net loss per basic and diluted share (in dollars per share)	$ (0.14)	$ (1.29)
Shares used in computing net loss per basic and diluted share (in shares)	10,679,761	9,442,022
Other comprehensive income (loss):
Foreign currency translation adjustments	$ (1)	$ 10	$ 1	$ 10
Comprehensive loss	$ (1,510)	$ (12,186)	$ (2,447)	$ (27,306)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands	Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income [Member]	Total
Beginning balance at Dec. 31, 2015	$ 1	$ 10	$ 223,315	$ (207,240)	$ 1	$ 16,087
Beginning balance (in shares) at Dec. 31, 2015	6,505	10,283,393
Stock-based compensation	$ 0	$ 0	401	0	0	401
Conversion of senior secured convertible debentures	$ 0	$ 1	247	0	0	248
Conversion of senior secured convertible debentures (in shares)	0	329,411
Conversion of preferred stock	$ 0	$ 0	0	0	0	0
Conversion of preferred stock (in shares)	(309)	120,000
Warrants issued in connection with debt	$ 0	$ 0	47	0	0	47
Reclassification of warrants to equity	0	0	1,541	0	0	1,541
Other comprehensive income	0	0	0	0	1	1
Net loss for the nine months ended September 30, 2016	0	0	0	(2,448)	0	(2,448)
Ending balance at Sep. 30, 2016	$ 1	$ 11	$ 225,551	$ (209,688)	$ 2	$ 15,877
Ending balance (in shares) at Sep. 30, 2016	6,196	10,732,804

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows From Operating Activities:
Net loss	$ (2,448)	$ (24,354)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	4,844	2,348
Provision for doubtful accounts	91	20
Stock-based compensation	401	1,483
Deferred tax provision	180	0
Impairment of long-lived assets	0	920
Inventory write-offs	0	4,818
Loss on disposal of property, plant and equipment	124	0
Amortization of debt discount	1,821	7,571
Amortization of deferred financing costs	145	373
Change in fair value of warrant liability	(5,316)	679
Changes in operating assets and liabilities:
Accounts receivable	1,041	(300)
Inventories	899	(295)
Prepaid expenses and other assets	202	(321)
Accounts payable and accrued expenses	(2,559)	289
Other accrued liabilities	(623)	(150)
Other liabilities	(40)	(39)
Deferred revenues	154	13
Net cash used in operating activities	(1,084)	(6,945)
Cash Flows From Investing Activities:
Lasers placed-in-service, net	(607)	(1,066)
Purchases of property and equipment	0	(17)
Restricted cash	15	(100)
Reimbursement of purchase price	125	0
Acquisition costs, net of cash received	0	(42,500)
Net cash used in investing activities	(467)	(43,683)
Cash Flows From Financing Activities:
Proceeds from long-term debt	1,500	0
Proceeds from convertible debentures	0	32,500
Proceeds from senior notes	0	10,000
Payments on notes payable	(299)	(20)
Registration costs	0	(134)
Net cash provided by financing activities	1,201	42,346
Effect of exchange rate changes on cash	4	17
Net decrease in cash and cash equivalents	(346)	(8,265)
Cash and cash equivalents, beginning of period	3,303	11,434
Cash and cash equivalents, end of period	2,957	3,169
Supplemental information:
Cash paid for interest	1,517	402
Supplemental information of non-cash investing and financing activities:
Conversion of senior secured convertible debentures into common stock	248	4,593
Conversion of series A convertible preferred stock into common stock	309	5,283
Establishment of a warrant liability with a deemed dividend	0	2,962
Reclassification of property and equipment to inventory, net	0	107
Reclassification of warrants to (from) stockholders' equity	1,541	(5,399)
Recognition of debt discount and beneficial conversion feature on long-term debt	0	27,300
Recognition of warrants issued as debt discount	$ 47	$ 0

The Company

The Company	9 Months Ended
	Sep. 30, 2016
The Company [Abstract]
The Company	Note 1 The Company: Background STRATA Skin Sciences, Inc. (and its subsidiary) ("STRATA" or "we" or the "Company") is a medical technology company dedicated to developing and commercializing innovative products for the diagnosis and treatment of serious dermatological disorders. In June 2015 the Company completed the acquisition of the XTRAC Excimer Laser and the VTRAC Excimer Lamp businesses which included a subsidiary in India. The XTRAC® and VTRAC® products are FDA cleared devices for the treatment of psoriasis, vitiligo and other skin disorders. The purchase price was $42,500 plus the assumption of certain business-related liabilities. (See Note 2 , Acquisition .) The XTRAC is an ultraviolet light excimer laser system utilized to treat psoriasis, vitiligo and other skin diseases. The XTRAC received FDA clearance in 2000 and has since become a recognized treatment among dermatologists. The system delivers targeted 308um ultraviolet light to affected areas of the skin, leading to psoriasis clearing and vitiligo repigmentation, following a series of treatments. As of September 30, 2016, there were 760 XTRAC systems placed in dermatologists' offices in the United States under the Company's recurring revenue business model. The XTRAC systems employed under the recurring revenue model generate revenue on a per procedure basis. The per-procedure charge is inclusive of the use of the system and the services provided by the Company to the customer which includes system maintenance, reimbursement support service and participation in the direct to patient marketing programs employed by the Company. The XTRAC system's use for psoriasis is covered by nearly all major insurance companies, including Medicare. The VTRAC Excimer Lamp system, offered in addition to the XTRAC system internationally, provides targeted therapeutic efficacy demonstrated by excimer technology with the simplicity of design and reliability of a lamp system. Liquidity As of September 30, 2016, the Company had an accumulated deficit of $209,688 and has incurred losses and negative cash flows from operations since inception. To date, the Company has dedicated most of its financial resources to research and development, sales and marketing, and general and administrative expenses. The Company has been dependent on raising capital from the sale of securities in order to continue to operate and to meet its obligations in the ordinary course of business. Management believes that its cash and cash equivalents as of September 30, 2016 combined with the anticipated revenues from the sale of the Company's products will be sufficient to satisfy its working capital needs, capital asset purchases, outstanding commitments and other liquidity requirements associated with its existing operations through the fourth quarter of 2017. Basis of Presentation Accounting Principles The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. Quarterly Financial Information and Results of Operations The condensed consolidated financial statements as of September 30, 2016 and for the nine months ended September 30, 2016 and 2015 are unaudited and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the financial position as of September 30, 2016, the results of operations for the three and nine months ended September 30, 2016 and 2015, the statement of stockholders' equity for the nine months ended September 30, 2016 and the statement of cash flows for the nine months ended September 30, 2016 and 2015. The results of operations and cash flows for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the entire year. The condensed consolidated balance sheet as of December 31, 2015 was derived from audited financial statements as of December 31, 2015. These condensed consolidated financial statements should be read in conjunction with audited consolidated financial statements and the footnotes thereto, together with Management's Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. Reclassification Certain reclassifications from the prior year presentation have been made to conform to the current year presentation. These reclassifications did not have a material impact on the Company's equity, net assets, results of operations or cash flows. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the US requires management to make estimates and assumptions that affect amounts reported of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates and be based on events different from those assumptions. As of September 30, 2016, the more significant estimates include (1) revenue recognition, including deferred revenues and valuation allowances of accounts receivable, (2) the fair value of assets acquired and liabilities assumed in the business combination, (3) the estimated useful lives of intangible assets and property and equipment, (4) the inputs used in determining the fair value of equity-based awards (5) the valuation allowance related to deferred tax assets and (6) the fair value of financial instruments, including derivative instruments. Fair Value Measurements The Company measures and discloses fair value in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification 820, Fair Value Measurements and Disclosures • Level 1 – unadjusted quoted prices are available in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. • Level 2 – pricing inputs are other than quoted prices in active markets that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. • Level 3 – pricing inputs are unobservable for the non-financial asset or liability and only used when there is little, if any, market activity for the non-financial asset or liability at the measurement date. The inputs into the determination of fair value require significant management judgment or estimation. Fair value is determined using comparable market transactions and other valuation methodologies, adjusted as appropriate for liquidity, credit, market and/or other risk factors This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company's recurring fair value measurements at September 30, 2016 and December 31, 2015 are as follows: Fair Value as of September 30, 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 10) $ 185 $ - $ - $ 185 Fair Value as of December 31, 2015 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 10) $ 7,042 $ - $ - $ 7,042 The fair value of cash and cash equivalents are based on their respective demand value, which are equal to the carrying value. The fair value of derivative warrant liabilities is estimated using option pricing models that are based on the individual characteristics of the Company's warrants, preferred and common stock, the derivative warrant liability on the valuation date as well as assumptions for volatility, remaining expected life, risk-free interest rate and, in some cases, credit spread. The derivative warrant liabilities are the only recurring Level 3 fair value measures. The carrying value of all other short-term monetary assets and liabilities is estimated to be approximate to their fair value due to the short-term nature of these instruments. The Company assessed its convertible debentures and long-term debt and determined that the fair value of total debt was $19,542 as of September 30, 2016. As of December 31, 2015 the fair value of total debt approximated the recorded value of $15,958. Several of the warrants have non-standard terms as they relate to a fundamental transaction and require a net-cash settlement upon change in control of the Company and other warrants contain full ratchet provisions that reduce the exercise price of the warrants in the event of a transaction resulting in the issuance of equity below the current price of the warrants. Therefore these warrants are classified as derivatives. These warrants have been recorded at their fair value using a binomial option pricing model and will be recorded at their respective fair value at each subsequent balance sheet date. See Note 10, Warrants Accrued Warranty Costs The Company offers a standard warranty on product sales generally for a one to two-year period. The Company provides for the estimated cost of the future warranty claims on the date the product is sold. Total accrued warranty is included in Other Accrued Liabilities Other liabilities September 30, 2016 (unaudited) Accrual at beginning of year $ 226 Additions charged to warranty expense 141 Expiring warranties/claimed satisfied (220 ) Total 147 Less: current portion (127 ) $ 20 Earnings Per Share Basic net loss per common share excludes dilution for potentially dilutive securities and is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share gives effect to dilutive options, warrants and other potential common shares outstanding during the period and their potential diluted effect is considered using the treasury method. For the nine months ended September 30, 2016 diluted earnings per common share are computed by the numerator effected by the gain on the change in fair value of the warrant liability and the denominator is increased to include the number of additional potential common shares from the warrants underlying the warrant liability. Diluted earnings per common share were calculated using the following net income (loss) and weighted average shares outstanding for the nine months ended September 30, 2016: Nine Months Ended September 30, 2016 Net loss $ (2,448 ) Gain on the change in fair value of the warrant liability (5,316 ) Diluted earnings $ (7,764 ) Weighted average number of common and common equivalent shares outstanding: Basic number of common shares outstanding 10,536,824 Dilutive effect of warrants 410,889 Diluted number of common and common stock equivalent shares outstanding 10,947,713 For the three months ended September 30, 2016 and the three and nine months ended September 30, 2015, diluted net loss per common share is equal to the basic net loss per common share since all potentially dilutive securities are anti-dilutive. Potential common stock equivalents outstanding as of September 30, 2016 and 2015 consist of common stock equivalents of common stock purchase warrants, senior secured convertible debentures, convertible preferred stock and common stock options, which are summarized as follows: September 30, 2016 2015 Common stock equivalents of convertible debentures 46,105,715 46,521,127 Common stock purchase warrants 12,033,098 16,078,920 Common stock equivalents of convertible preferred stock 2,415,866 2,535,866 Common stock options 3,007,227 2,302,802 Total 63,561,906 67,438,715 Adoption of New Accounting Standards In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-03, " Simplifying the Presentation of Debt Issuance Costs (Subtopic 835-30) (See Note 9 , Convertible Debt .) In September 2015, the FASB issued ASU No. 2015-16, " Business Combinations (Topic 805): Simplifying the Accounting for Measurement - Period Adjustments. Recently Issued Accounting Standards In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), to simplify various aspects of the accounting and presentation of share-based payments, including the income tax effects of awards and forfeiture assumptions. Currently, tax deductions in excess of compensation costs (excess tax benefits) are recorded in equity and tax deduction shortfalls (tax deficiencies), to the extent of previous excess tax benefits, are recorded in equity and then to income tax expense. Under the new guidance, all excess tax benefits and tax deficiencies will be recorded to income tax expense in the income statement, which could create volatility in the Company's income statement. The new guidance will also change the classification of excess tax benefits in the cash flow statement and impact the diluted earnings per share calculation. The guidance will be effective for interim and annual periods beginning after December 15, 2016, and early adoption is permitted. Different components of the guidance require prospective, retrospective and/or modified retrospective adoption. The Company does not expect that this standard will have a significant impact on its consolidated financial statements and disclosures upon adoption. In February 2016, the FASB issued ASU 2016-02, Leases, This statement requires lessees to present right-of-use assets and lease liabilities on the balance sheet. The standard is effective for public companies for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the effect the guidance will have on its financial condition and results of operations. In November 2015, the FASB issued ASU 2015-17, Income Taxes, Balance Sheet Classification of Deferred Taxes topic of the Codification. This standard requires all deferred tax assets and liabilities to be classified as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. In addition, valuation allowance allocations between current and non-current deferred tax assets are no longer required because those allowances also will be classified as non-current. This standard is effective for public companies for annual periods beginning after December 15, 2016. The Company's deferred tax assets are provided with full valuation allowance as of December 31, 2015. As such, the Company does not expect that this standard will have a significant impact on its consolidated financial statements and disclosures upon adoption. In July, 2015, The FASB issued Accounting Standards Update No. 2015-11 , Simplifying the Measurement of Inventory (Topic 330) ("ASU 2015-11"). ASU 2015-11 outlines that inventory within the scope of its guidance be measured at the lower of cost and net realizable value. Inventory measured using last-in, first-out (LIFO) are not impacted by the new guidance. Prior to the issuance of ASU 2015-11, inventory was measured at the lower of cost or market (where market was defined as replacement cost, with a ceiling of net realizable value and floor of net realizable value less a normal profit margin). For a public entity, the amendments in ASU 2015-11 are effective, in a prospective manner, for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period (the first quarter of fiscal year 2017 for the Company). Early adoption is permitted as of the beginning of an interim or annual reporting period. The Company does not expect that this standard will have a significant impact on its consolidated financial statements and disclosures upon adoption . In May 2014, The FASB issued Accounting Standards Update No. 2014-09 , Revenue from Contracts with Customers (Topic 606) In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern

Acquisition

Acquisition	9 Months Ended
	Sep. 30, 2016
Acquisition [Abstract]
Acquisition	Note 2 Acquisition: On June 22, 2015, the Company entered into an asset purchase agreement (the "Asset Purchase Agreement") with PhotoMedex Inc. and PhotoMedex Technology, Inc. pursuant to which the Company purchased the XTRAC and VTRAC laser businesses (the "Asset Purchase") for $42,528 in cash and assumed certain business-related liabilities. In June 2016, the Company received a return from the escrow account of $125 of the purchase price related to the assets in the purchased Indian subsidiary. The purchased assets include all of the accounts receivable, inventory and fixed and intangible assets of the business. The fair value of the assets acquired and liabilities assumed were based on management's assessment. The significant intangible assets to be recognized in the valuation are core and product technologies, tradenames and customer relationships. The estimated useful lives over which these assets will be amortized, utilizing the straight line method, are five years for product technologies and ten years for core technologies, tradenames and customer relationships. Fair Value Current assets $ 7,233 Property, plant and equipment 14,340 Identifiable intangible assets 16,100 Other assets 45 Total assets assumed 37,718 Current liabilities (3,945 ) Note payable (57 ) Other long term liabilities (116 ) Total liabilities assumed (4,118 ) Net assets acquired $ 33,600 The purchase price exceeded the fair value of the net assets acquired by $8,803, which was recorded as goodwill. The consolidated results of operations do not include any revenues or expenses related to the XTRAC and VTRAC businesses on or prior to June 22, 2015, the date of the asset purchase. The Company's unaudited pro-forma results for the three and nine months ended September 30, 2015 summarize the combined results in the following table, assuming the asset purchase had occurred on January 1, 2015 and after giving effect to the acquisition adjustments, including amortization of the tangible and long-lived intangible assets acquired in the transaction Three Months Ended September 30,2015 Nine Months Ended September 30, 2015 (unaudited) (unaudited) Net revenues $ 8,323 $ 23,684 Net loss attributable to common stockholders $ (12,186 ) $ (33,662 ) Net loss per basic and diluted share: $ (1.29 ) $ (4.21 ) Shares used in calculating net loss per basic and diluted share: 9,442,022 7,994,012 These unaudited pro-forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which would have actually resulted had the acquisition occurred on January 1, 2015, nor to be indicative of future results of operations.

Inventories, net

Inventories, net	9 Months Ended
	Sep. 30, 2016
Inventories, net [Abstract]
Inventories, net	Note 3 Inventories, net: September 30 , December 31, 2015 (unaudited) Raw materials and work in progress $ 2,912 $ 3,706 Finished goods 317 422 Total inventories $ 3,229 $ 4,128 Work-in-process is immaterial, given the Company's typically short manufacturing cycle, and therefore is disclosed in conjunction with raw materials.

Property and Equipment, net

Property and Equipment, net	9 Months Ended
	Sep. 30, 2016
Property and Equipment, net [Abstract]
Property and Equipment, net	Note 4 Property and Equipment, net: September 30, 2016 December 31, 2015 (unaudited) Lasers placed-in-service $ 16,344 $ 15,782 Equipment, computer hardware and software 161 1,219 Furniture and fixtures 111 2,080 Leasehold improvements 24 931 16,640 20,012 Accumulated depreciation and amortization (5,792 ) (6,161 ) Property and equipment, net $ 10,848 $ 13,851 Depreciation and related amortization expense was $3,482 and $1,253 for the nine months ended September 30, 2016 and 2015, respectively. For the three and nine months ended September 30, 2016, the Company disposed of leasehold improvements, machinery and equipment and furniture and fixtures with a recorded cost of $3,933 and accumulated depreciation and amortization of $3,809, related to the closing of its Irvington, New York facility. The net book value of $124 was written off to general and administrative expense.

Patents and Licensed Technologi

Patents and Licensed Technologies, net	9 Months Ended
	Sep. 30, 2016
Patents and Licensed Technologies, net [Abstract]
Patents and Licensed Technologies, net	Note 5 Patents and Licensed Technologies, net: September 30, 2016 December 31, 2015 (unaudited) Core technology $ 5,974 $ 5,974 Product technology 2,000 2,000 7,974 7,974 Accumulated amortization (1,459 ) (727 ) Patents and licensed technologies, net $ 6,515 $ 7,247 Related amortization expense was $732 and $244 for the nine months ended September 30, 2016 and 2015, respectively. Estimated amortization expense for amortizable patents and licensed technologies assets for the future periods is as follows: Remaining 2016 $ 244 2017 975 2018 975 2019 975 2020 775 Thereafter 2,571 Total $ 6,515

Other Intangible Assets

Other Intangible Assets	9 Months Ended
	Sep. 30, 2016
Other Intangible Assets [Abstract]
Other Intangible Assets	Note 6 Other Intangible Assets: Set forth below is a detailed listing of other definite-lived intangible assets: September 30, 2016 December 31, 2015 (unaudited) Customer relationships $ 6,900 $ 6,900 Tradenames 1,500 1,500 8,400 8,400 Accumulated amortization (1,050 ) (420 ) Other intangible assets, net $ 7,350 $ 7,980 Related amortization expense was $630 and $210 for the nine months ended September 30, 2016 and 2015, respectively. Estimated amortization expense for the above amortizable intangible assets for the future periods is as follows: Remaining 2016 $ 210 2017 840 2018 840 2019 840 2020 840 Thereafter 3,780 Total $ 7,350

Other Accrued Liabilities

Other Accrued Liabilities	9 Months Ended
	Sep. 30, 2016
Other Accrued Liabilities [Abstract]
Other Accrued Liabilities	Note 7 Other Accrued Liabilities: September 3 0 December 31, 2015 (unaudited) Accrued warranty, current, see Note 1 $ 127 $ 168 Accrued compensation, including commissions and vacation 737 1,336 Accrued sales and other taxes 397 349 Accrued professional fees and other accrued liabilities 277 308 Total other accrued liabilities $ 1,538 $ 2,161

Convertible Debentures

Convertible Debentures	9 Months Ended
	Sep. 30, 2016
Convertible Debentures [Abstract]
Convertible Debentures	Note 8 Convertible Debentures: In the following table is a summary of the Company's convertible debentures. September 30, 2016 December 31, 2015 (unaudited) Senior secured 2.25% convertible debentures, net of unamortized debt discount of $24,816 and $26,267, respectively; and deferred financing costs of $535 and $522, respectively $ 6,680 $ 5,489 Senior secured 4% convertible debentures, net of unamortized debt discount of $3,591 and $3,922, respectively; and deferred financing costs of $406 and $443, respectively 4,718 4,350 Total convertible debt $ 11,398 $ 9,839 The Company issued $32,500 aggregate principal amount of Debentures (June 2015 Debentures) that, subject to certain ownership limitations and stockholder approval conditions, will be convertible into 43,333,334 shares of Company common stock at an initial conversion price of $0.75 per share. The Debentures bear interest at the rate of 2.25% per year, and, unless previously converted, will mature on the five-year anniversary of the date of issuance, June 22, 2020. The June 2015 Debentures include a beneficial conversion feature valued at $27,300 that was recorded as a discount to the debentures. On the date of issuance the beneficial conversion feature value was calculated as the difference resulting from subtracting the conversion price of $0.75 from $1.38, the opening market value of the Company's common stock following the announcement of the transaction, multiplied by the number of common shares into which the June 2015 Debentures are convertible. On July 21, 2014, the Company entered into a definitive Securities Purchase Agreement (the "Purchase Agreement") with institutional investors (the "Investors") providing for the issuance of Senior Secured Convertible Debentures in the aggregate principal amount of $15,000, due, subject to the terms therein, in July 2019 (the "July 2014 Debentures"), and warrants (the "July 2014 Series A Warrants") to purchase up to an aggregate of 6,198,832 shares of common stock, $0.001 par value per share, at an exercise price of $2.45 per share expiring in July 2019. The July 2014 Debentures bear interest at an annual rate of 4%, payable quarterly or upon conversion into shares of common stock. The Debentures are convertible at any time into an aggregate of 5,847,955 shares of common stock at an initial conversion price of $2.565 per share. The Company's obligations under the July 2014 Debentures are secured by a first priority lien on all of the Company's intellectual property pursuant to the terms of a security agreement ("Security Agreement") dated July 21, 2014 among the Company and the Investors. In connection with the Purchase Agreement, the Company entered into a Registration Rights Agreement with the Investors pursuant to which the Company was obligated to file a registration statement to register for resale the shares of Common Stock issuable upon conversion of the Series B Preferred Stock (See Note 10, Warrants For financial reporting purposes, the $15,000 funded by the Investors on July 21, 2014 was allocated first to the fair value of the obligation to issue the Warrants, amounting to $5,296, then to the intrinsic value of the beneficial conversion feature on the July 2014 Debentures of $4,565. The balance was further reduced by the fair value of warrants issued to the placement agent for services rendered of $491, resulting in an initial carrying value of the Debentures of $4,647. The initial debt discount on the July 2014 Debentures totaled $10,353 and is being amortized using the effective interest method over the five year life of the July 2014 Debentures. During the nine months ended September 30, 2016, the investors converted June 2015 debentures amounting to $248 into 329,411 shares of common stock. The debt discount and deferred financing cost adjustment resulting from the conversions increased interest expense by $202 for the nine months ended September 30, 2016. As a condition of the new note facility (See Note 9 Long-term Debt As of September 30, 2016, the total outstanding amount of Debentures was $40,746.

Long-term Debt

Long-term Debt	9 Months Ended
	Sep. 30, 2016
Long-term Debt [Abstract]
Long-term Debt	Note 9 Long-term Debt: Term-Note Credit Facility On December 30, 2015, the Company entered into a $12,000 credit facility pursuant to a Credit and Security Agreement (the "Agreement") and related financing documents with MidCap Financial Trust ("MidCap") and the lenders listed therein. Under the Agreement, the credit facility may be drawn down in two tranches, the first of which was drawn for $10,500 on December 30, 2015. The proceeds of this first tranche were used to repay $10,000 principal amount of short-term senior secured promissory notes, plus associated interest, loan fees and expenses. The second tranche was drawn for $1,500 on January 29, 2016. The Company's obligations under the credit facility are secured by a first priority lien on all of the Company's assets. This credit facility includes both financial and non-financial covenants, including a minimum net revenue covenant, beginning in January 2016. The Company was in compliance with these covenants as of September 30, 2016. On August 8, 2016, the minimum net revenue covenant was amended prospectively. The Interest rate on the credit facility is one month LIBOR plus 8.25%, subject to a LIBOR floor of 0.5%. The Company's existing debentures from its 2014 and 2015 financings were amended as a condition of this new term note facility, including subordination agreements and maturity extensions. Additionally if the Company cannot maintain its listing on Nasdaq, it would be deemed a default under the 2015 debentures and a breach of our affirmative covenants and therefore an event of default under our financing documents with Midcap. Unamortized discount on the long term debt and deferred financing costs was $593 and $649 as of September 30, 2016 and December 31, 2015, respectively. As of September 30, 2016 the net balance of long-term debt is $10,549. In connection with the issuance of the Term Note the Company issued MidCap (and the lenders), on December 30, 2015, a warrant to purchase 650,442 shares of the Company's common stock for an exercise price of $1.13. Additionally, the Company issued MidCap (and the lenders), on January 29, 2016, a warrant to purchase 99,057 shares of the Company's common stock for an exercise price of $1.06. The warrants are exercisable at any time on or prior to the fifth anniversary of its issue date. The warrants are treated as a discount to the debt and are accreted under the effective interest method over the repayment term of 60 months. The Company has accounted for these warrants as equity instruments since there is no option for cash or net-cash settlement when the warrants are exercised and since they are indexed to the Company's common stock. The Company computed the value of the warrants using the Black-Scholes method. The key assumptions used to value the warrants are as follows: December 31, 2015 January 29, 2016 Number of shares underlying warrants 650,442 99,057 Exercise price $ 1.13 $ 1.06 Stock price on date of issuance $ 1.11 $ 1.05 Fair value of warrants $ 321 $ 47 Volatility 50.0 % 50.0 % Risk-free interest rate 1.8 % 1.8 % Expected dividend yield 0 % 0 % Expected warrant life 5 years 5 years

Warrants

Warrants	9 Months Ended
	Sep. 30, 2016
Warrants [Abstract]
Warrants	Note 10 Warrants: The Company accounts for warrants that have provisions that protect holders from a decline in the issue price of its common stock (or "down-round" provisions) and those that contain cash settlement provisions as liabilities instead of equity. Down-round provisions reduce the exercise or conversion price of a warrant or convertible instrument if a company either issues equity shares for a price that is lower than the exercise or conversion price of those instruments or issues new warrants or convertible instruments that have a lower exercise or conversion price. Net settlement provisions allow the holder of the warrant to surrender shares underlying the warrant equal to the exercise price as payment of its exercise price, instead of physically exercising the warrant by paying cash. The Company evaluated whether warrants to acquire its common stock contain provisions that protect holders from declines in the stock price or otherwise could result in modification of the exercise price and/or shares to be issued under the respective warrant agreements based on a variable that is not an input to the fair value of a "fixed-for-fixed" option. As of June 22, 2016, the down-round provision expired on 12,083,821 warrants and as such $1,541 of value associated with these warrants was reclassified to equity. For those that do contain such provisions, the Company recognizes the warrants as liabilities at the fair value on each reporting date. The Company computed the value of the warrants using the binomial method. A summary of quantitative information with respect to the valuation methodology and significant unobservable inputs used for the Company's warrant liabilities that are categorized within Level 3 of the fair value hierarchy as of September 30, 2016, June 22, 2016 and December 31, 2015 is as follows: September 30, 2016 June 22, 2016 December 31, 2015 Number of shares underlying the warrants 2,015,446 14,099,267 14,099,267 Stock price $ 0.53 $ 0.65 $ 1.11 Volatility 46.00 % 35.00 - 50.00 % 35.90 – 50.00 % Risk-free interest rate 0.60% – 0.79 % 0.25% – 1.04 % 0.02% - 1.63 % Expected dividend yield 0 % 0 % 0 % Expected warrant life 2.37 – 2.60 years 0.09– 4.0 years 0.07 – 4.48 years Recurring Level 3 Activity and Reconciliation The tables below provide a reconciliation of the beginning and ending balances for the liability measured at fair value using significant unobservable inputs (Level 3). The table reflects gains and losses for the nine-month periods ended September 30, 2016 and 2015, for all financial liabilities categorized as Level 3 as of September 30, 2016 and, 2015, respectively. Fair Value Measurements Using Significant Unobservable Inputs (Level 3): 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 Issuance Date December 31, 2014 Initial Measurement Increase (Decrease) in Fair Value Reclassed from Equity September 30, 2015 10/31/2013 $ 233 $ - $ 309 $ - $ 542 2/5/2014 266 - 767 - 1,033 7/24/2014 Series A - - 3,452 3,452 7/24/2014 Series B - - 1,947 1,947 6/22/2015 - 2,958 (397 ) - 2,561 Total $ 499 $ 2,958 $ 679 $ 5,399 $ 9,535 Number of Warrants Subject to Remeasurement: Issuance Date December 31, 2015 Reductions September 30, 2016 10/31/2013 685,715 - 685,715 2/5/2014 1,329,731 - 1,329,731 7/24/2014 Series A 4,288,500 (4,288,500 ) - 7/24/2014 Series B 4,795,321 (4,795,321 ) - 6/22/2015 3,000,000 (3,000,000 ) - Total 14,099,267 (12,083,821 ) 2,015,446

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity [Abstract]
Stockholders' Equity	Note 11 Stockholders' Equity: Common Stock and Warrants Balance at December 31, 2015 16,729,362 Additions 99,057 Expirations (4,795,321 ) Balance at September 30, 2016 12,033,098 Common stock warrants outstanding at September 30, 2016 consist of the following: Issue Date Expiration Date Total Warrants Exercise Price 4/26/2013 4/26/2018 69,321 $ 11.18 10/31/2013 4/30/2019 685,715 $ 0.75 2/5/2014 2/5/2019 1,329,731 $ 0.75 7/24/2014 7/24/2019 6,198,832 $ 0.75 - $ 2.45 6/22/2015 6/22/2020 3,000,000 $ 0.75 12/30/2015 12/30/2020 650,442 $ 1.13 1/29/2016 1/29/2021 99,057 $ 1.06 12,033,098

Stock-based compensation

Stock-based compensation	9 Months Ended
	Sep. 30, 2016
Stock-based compensation [Abstract]
Stock-based compensation	Note 12 Stock-based compensation: At September 30, 2016, the Company had 3,007,227 common stock options outstanding with a weighted-average exercise price of $1.48. 2,072,251 common stock options are vested and exercisable. Stock-based compensation expense, primarily included in general and administration, for the three and nine months ended September 30, 2016 was $116 and $401, respectively. For the three and nine months ended September 30, 2015 stock-based compensation was $1,007 and $1,483 respectively. As of September 30, 2016 there was $282 in unrecognized compensation expense, which will be recognized over a weighted average period of 4 years.

Income taxes

Income taxes	9 Months Ended
	Sep. 30, 2016
Income taxes [Abstract]
Income taxes	Note 13 Income taxes: The Company accounts for income taxes using the asset and liability method for deferred income taxes. The provision for income taxes includes federal, state and local income taxes currently payable and deferred taxes resulting from temporary differences between the financial statement and tax bases of assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Income tax expense of $64 and $191 for the three and nine months ended September 30, 2016 was comprised of the change in deferred tax liability related to goodwill. Goodwill is an amortizing asset according to tax regulations. This generates a deferred tax liability that is not used to offset deferred tax assets for valuation allowance considerations. There was no such expense for the three and nine months ended September 30, 2015.

Business Segments and Geographi

Business Segments and Geographic Data	9 Months Ended
	Sep. 30, 2016
Business Segments and Geographic Data [Abstract]
Business Segments and Geographic Data	Note 14 Business Segments and Geographic Data: The Company organized its business into three operating segments to better align its organization based upon the Company's management structure, products and services offered, markets served and types of customers, as follows: The Dermatology Recurring Procedures segment derives its revenues from the XTRAC procedures performed by dermatologists. The Dermatology Procedures Equipment segment generates revenues from the sale of equipment, such as lasers and lamp products. The Dermatology Imaging segment generates revenues from the sale and usage of imaging devices. Management reviews financial information presented on an operating segment basis for the purposes of making certain operating decisions and assessing financial performance. On June 22, 2015, the Company acquired the XTRAC and VTRAC businesses and has classified the revenues and expenses of this business to the two Dermatology Procedures segments. Unallocated operating expenses include costs that are not specific to a particular segment but are general to the group; included are expenses incurred for administrative and accounting staff, general liability and other insurance, professional fees and other similar corporate expenses. Interest and other financing income (expense), net is also not allocated to the operating segments. The following tables reflect results of operations from our business segments for the periods indicated below: Three Months Ended September 30, 2016 (unaudited) 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 ) Three Months Ended September 30, 2015 (unaudited) Dermatology Recurring Procedures Dermatology Procedures Equipment Dermatology Imaging TOTAL Revenues $ 7,033 $ 1,189 $ 101 $ 8,323 Costs of revenues 2,326 607 109 3,042 Gross profit 4,707 582 (8 ) 5,281 Gross profit % 66.9 % 48.9 % (7.9 %) 63.5 % Allocated operating expenses: Engineering and product development 348 31 181 560 Selling and marketing expenses 3,553 97 262 3,912 Unallocated operating expenses - - - 3,132 3,901 128 443 7,604 Income (loss) from operations 806 454 (451 ) (2,323 ) Interest expense, net - - - (5,577 ) Change in fair value of warrant liability - - - (1,329 ) Other income (expense), net - - - (5 ) Net income (loss) $ 806 $ 454 $ (451 ) $ (9,234 ) Nine Months Ended September 30, 2016 (unaudited) 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 ) Nine Months Ended September 30, 2015 (unaudited) Dermatology Recurring Procedures Dermatology Procedures Equipment Dermatology Imaging TOTAL Revenues $ 7,138 $ 1,638 $ 239 $ 9,015 Costs of revenues 2,386 891 6,949 10,226 Gross profit 4,752 747 (6,710 ) (1,211 ) Gross profit % 66.6 % 45.6 % (2807.5 %) (13.4 %) Allocated operating expenses: Engineering and product development 355 62 872 1,289 Selling and marketing expenses 3,727 127 1,787 5,641 Unallocated operating expenses - - - 6,819 4,082 189 2,659 13,749 Income (loss) from operations 670 558 (9,369 ) (14,960 ) Interest expense, net - - (8,738 ) Change in fair value of warrant liability - - - (679 ) Other income (expense), net - - - 23 Net income (loss) $ 670 $ 558 $ (9,369 ) $ (24,354 ) For the three and nine months ended September 30, 2016 and 2015 there were no material net revenues attributable to any individual foreign country. Net revenues by geographic area were, as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Domestic $ 6,287 $ 7,114 $ 18,444 $ 7,236 Foreign 1,480 1,209 4,682 1,779 $ 7,767 $ 8,323 $ 23,126 $ 9,015

Significant Customer Concentrat

Significant Customer Concentration	9 Months Ended
	Sep. 30, 2016
Significant Customer Concentration [Abstract]
Significant Customer Concentration	Note 15 Significant Customer Concentration: For the three months ended September 30, 2016, revenues from sales to the Company's international master distributor (GlobalMed Technologies) were $1,457, or 18.8%, of total revenues for such period. For the nine months ended September 30, 2016, revenues from sales to the Company's international master distributor were $4,604, or 19.9%, of total revenues for such period. At September 30, 2016, the accounts receivable balance from GlobalMed Technologies was $613, or 20.9%, of total net accounts receivable. For the three months ended September 30, 2015, revenues from sales to the Company's international master distributor were $949, or 11.4% of total revenues for such period. For the nine months ended September 30, 2015, revenues from sales to the Company's international master distributor were $1,385, or 15.4%, of total revenues for such period. No other customer represented more than 10% of total company revenues for the three and nine months ended September 30, 2016 and 2015. No other customer represented more than 10% of total accounts receivable as of September 30, 2016.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Note 16 Subsequent Events: On October 28, 2016, investors converted debentures amounting to $19 into 25,000 shares of common stock. See Note 9, Convertible Debentures Effective on October 31, 2016, Michael R. Stewart resigned as the Company's President and Chief Executive Officer and as a member of the Company's Board of Directors (our "Board"). The Company entered into a severance agreement and general release with Mr. Stewart and into a separate consulting agreement. Under the severance agreement, Mr. Stewart is entitled to receive severance payments and applicable insurance benefits through October 31, 2017. Also, any vested options as of the termination date shall continue to be exercisable until the later of 90 days or the termination of his consulting agreement. On October 31, 2016, The Company entered into a consulting agreement with Mr. Stewart, pursuant to which Mr. Stewart will provide consulting services to us for a term of six months. Mr. Stewart will receive a monthly consulting fee of $12,500 during the term of the consulting agreement. On October 31, 2016, our Board appointed Frank J. McCaney to our Board and as the Company's President and Chief Executive Officer. Mr. McCaney was most recently the chief executive officer of Corpak MedSystems, a private equity-backed medical device company in the field of enteral feeding. Corpak was sold to Halyard Health (HYH: NYSE) for $174 million in May 2016. Prior to Corpak, he was the founder and CEO of Nitric BioTherapeutics, a venture backed-medical technology company from 2006 until 2012. Prior to Nitric Bio, he was a senior executive at Viasys Healthcare, Inc. (VAS: NYSE), a medical technology company focusing on respiratory, neurology, medical disposable and orthopedic products and had a lead role in spinning Viasys out of Thermo Electron Corporation (TMO: NYSE). While at Viasys, Mr. McCaney had several responsibilities including strategy, business development and investor relations. He currently serves as a director of Diasome Pharmaceuticals, a privately-held company.

The Company (Policies)

The Company (Policies)	9 Months Ended
	Sep. 30, 2016
The Company [Abstract]
Liquidity	Liquidity As of September 30, 2016, the Company had an accumulated deficit of $209,688 and has incurred losses and negative cash flows from operations since inception. To date, the Company has dedicated most of its financial resources to research and development, sales and marketing, and general and administrative expenses. The Company has been dependent on raising capital from the sale of securities in order to continue to operate and to meet its obligations in the ordinary course of business. Management believes that its cash and cash equivalents as of September 30, 2016 combined with the anticipated revenues from the sale of the Company's products will be sufficient to satisfy its working capital needs, capital asset purchases, outstanding commitments and other liquidity requirements associated with its existing operations through the fourth quarter of 2017.
Accounting Principles	Accounting Principles The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP").
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation.
Quarterly Financial Information and Results of Operations	Quarterly Financial Information and Results of Operations The condensed consolidated financial statements as of September 30, 2016 and for the nine months ended September 30, 2016 and 2015 are unaudited and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the financial position as of September 30, 2016, the results of operations for the three and nine months ended September 30, 2016 and 2015, the statement of stockholders' equity for the nine months ended September 30, 2016 and the statement of cash flows for the nine months ended September 30, 2016 and 2015. The results of operations and cash flows for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the entire year. The condensed consolidated balance sheet as of December 31, 2015 was derived from audited financial statements as of December 31, 2015. These condensed consolidated financial statements should be read in conjunction with audited consolidated financial statements and the footnotes thereto, together with Management's Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.
Reclassification	Reclassification Certain reclassifications from the prior year presentation have been made to conform to the current year presentation. These reclassifications did not have a material impact on the Company's equity, net assets, results of operations or cash flows.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the US requires management to make estimates and assumptions that affect amounts reported of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates and be based on events different from those assumptions. As of September 30, 2016, the more significant estimates include (1) revenue recognition, including deferred revenues and valuation allowances of accounts receivable, (2) the fair value of assets acquired and liabilities assumed in the business combination, (3) the estimated useful lives of intangible assets and property and equipment, (4) the inputs used in determining the fair value of equity-based awards (5) the valuation allowance related to deferred tax assets and (6) the fair value of financial instruments, including derivative instruments.
Fair Value Measurements	Fair Value Measurements The Company measures and discloses fair value in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification 820, Fair Value Measurements and Disclosures • Level 1 – unadjusted quoted prices are available in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. • Level 2 – pricing inputs are other than quoted prices in active markets that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. • Level 3 – pricing inputs are unobservable for the non-financial asset or liability and only used when there is little, if any, market activity for the non-financial asset or liability at the measurement date. The inputs into the determination of fair value require significant management judgment or estimation. Fair value is determined using comparable market transactions and other valuation methodologies, adjusted as appropriate for liquidity, credit, market and/or other risk factors This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company's recurring fair value measurements at September 30, 2016 and December 31, 2015 are as follows: Fair Value as of September 30, 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 10) $ 185 $ - $ - $ 185 Fair Value as of December 31, 2015 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 10) $ 7,042 $ - $ - $ 7,042 The fair value of cash and cash equivalents are based on their respective demand value, which are equal to the carrying value. The fair value of derivative warrant liabilities is estimated using option pricing models that are based on the individual characteristics of the Company's warrants, preferred and common stock, the derivative warrant liability on the valuation date as well as assumptions for volatility, remaining expected life, risk-free interest rate and, in some cases, credit spread. The derivative warrant liabilities are the only recurring Level 3 fair value measures. The carrying value of all other short-term monetary assets and liabilities is estimated to be approximate to their fair value due to the short-term nature of these instruments. The Company assessed its convertible debentures and long-term debt and determined that the fair value of total debt was $19,542 as of September 30, 2016. As of December 31, 2015 the fair value of total debt approximated the recorded value of $15,958. Several of the warrants have non-standard terms as they relate to a fundamental transaction and require a net-cash settlement upon change in control of the Company and other warrants contain full ratchet provisions that reduce the exercise price of the warrants in the event of a transaction resulting in the issuance of equity below the current price of the warrants. Therefore these warrants are classified as derivatives. These warrants have been recorded at their fair value using a binomial option pricing model and will be recorded at their respective fair value at each subsequent balance sheet date. See Note 10, Warrants
Accrued Warranty Costs	Accrued Warranty Costs The Company offers a standard warranty on product sales generally for a one to two-year period. The Company provides for the estimated cost of the future warranty claims on the date the product is sold. Total accrued warranty is included in Other Accrued Liabilities Other liabilities September 30, 2016 (unaudited) Accrual at beginning of year $ 226 Additions charged to warranty expense 141 Expiring warranties/claimed satisfied (220 ) Total 147 Less: current portion (127 ) $ 20
Earnings Per Share	Earnings Per Share Basic net loss per common share excludes dilution for potentially dilutive securities and is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share gives effect to dilutive options, warrants and other potential common shares outstanding during the period and their potential diluted effect is considered using the treasury method. For the nine months ended September 30, 2016 diluted earnings per common share are computed by the numerator effected by the gain on the change in fair value of the warrant liability and the denominator is increased to include the number of additional potential common shares from the warrants underlying the warrant liability. Diluted earnings per common share were calculated using the following net income (loss) and weighted average shares outstanding for the nine months ended September 30, 2016: Nine Months Ended September 30, 2016 Net loss $ (2,448 ) Gain on the change in fair value of the warrant liability (5,316 ) Diluted earnings $ (7,764 ) Weighted average number of common and common equivalent shares outstanding: Basic number of common shares outstanding 10,536,824 Dilutive effect of warrants 410,889 Diluted number of common and common stock equivalent shares outstanding 10,947,713 For the three months ended September 30, 2016 and the three and nine months ended September 30, 2015, diluted net loss per common share is equal to the basic net loss per common share since all potentially dilutive securities are anti-dilutive. Potential common stock equivalents outstanding as of September 30, 2016 and 2015 consist of common stock equivalents of common stock purchase warrants, senior secured convertible debentures, convertible preferred stock and common stock options, which are summarized as follows: September 30, 2016 2015 Common stock equivalents of convertible debentures 46,105,715 46,521,127 Common stock purchase warrants 12,033,098 16,078,920 Common stock equivalents of convertible preferred stock 2,415,866 2,535,866 Common stock options 3,007,227 2,302,802 Total 63,561,906 67,438,715
Adoption of New Accounting Standards	Adoption of New Accounting Standards In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-03, " Simplifying the Presentation of Debt Issuance Costs (Subtopic 835-30) (See Note 9 , Convertible Debt .) In September 2015, the FASB issued ASU No. 2015-16, " Business Combinations (Topic 805): Simplifying the Accounting for Measurement - Period Adjustments.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), to simplify various aspects of the accounting and presentation of share-based payments, including the income tax effects of awards and forfeiture assumptions. Currently, tax deductions in excess of compensation costs (excess tax benefits) are recorded in equity and tax deduction shortfalls (tax deficiencies), to the extent of previous excess tax benefits, are recorded in equity and then to income tax expense. Under the new guidance, all excess tax benefits and tax deficiencies will be recorded to income tax expense in the income statement, which could create volatility in the Company's income statement. The new guidance will also change the classification of excess tax benefits in the cash flow statement and impact the diluted earnings per share calculation. The guidance will be effective for interim and annual periods beginning after December 15, 2016, and early adoption is permitted. Different components of the guidance require prospective, retrospective and/or modified retrospective adoption. The Company does not expect that this standard will have a significant impact on its consolidated financial statements and disclosures upon adoption. In February 2016, the FASB issued ASU 2016-02, Leases, This statement requires lessees to present right-of-use assets and lease liabilities on the balance sheet. The standard is effective for public companies for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the effect the guidance will have on its financial condition and results of operations. In November 2015, the FASB issued ASU 2015-17, Income Taxes, Balance Sheet Classification of Deferred Taxes topic of the Codification. This standard requires all deferred tax assets and liabilities to be classified as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. In addition, valuation allowance allocations between current and non-current deferred tax assets are no longer required because those allowances also will be classified as non-current. This standard is effective for public companies for annual periods beginning after December 15, 2016. The Company's deferred tax assets are provided with full valuation allowance as of December 31, 2015. As such, the Company does not expect that this standard will have a significant impact on its consolidated financial statements and disclosures upon adoption. In July, 2015, The FASB issued Accounting Standards Update No. 2015-11 , Simplifying the Measurement of Inventory (Topic 330) ("ASU 2015-11"). ASU 2015-11 outlines that inventory within the scope of its guidance be measured at the lower of cost and net realizable value. Inventory measured using last-in, first-out (LIFO) are not impacted by the new guidance. Prior to the issuance of ASU 2015-11, inventory was measured at the lower of cost or market (where market was defined as replacement cost, with a ceiling of net realizable value and floor of net realizable value less a normal profit margin). For a public entity, the amendments in ASU 2015-11 are effective, in a prospective manner, for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period (the first quarter of fiscal year 2017 for the Company). Early adoption is permitted as of the beginning of an interim or annual reporting period. The Company does not expect that this standard will have a significant impact on its consolidated financial statements and disclosures upon adoption . In May 2014, The FASB issued Accounting Standards Update No. 2014-09 , Revenue from Contracts with Customers (Topic 606) In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern

The Company (Tables)

The Company (Tables)	9 Months Ended
	Sep. 30, 2016
The Company [Abstract]
Fair Value Measurements on Recurring Basis	The Company's recurring fair value measurements at September 30, 2016 and December 31, 2015 are as follows: Fair Value as of September 30, 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 10) $ 185 $ - $ - $ 185 Fair Value as of December 31, 2015 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 10) $ 7,042 $ - $ - $ 7,042
Accrued Warranty Costs Activity	The activity in the warranty accrual during the nine months ended September 30, 2016 is summarized as follows: September 30, 2016 (unaudited) Accrual at beginning of year $ 226 Additions charged to warranty expense 141 Expiring warranties/claimed satisfied (220 ) Total 147 Less: current portion (127 ) $ 20
Diluted Earnings Per Common Share Calculated Using Net Income (Loss) and Weighted Average Shares Outstanding	Diluted earnings per common share were calculated using the following net income (loss) and weighted average shares outstanding for the nine months ended September 30, 2016: Nine Months Ended September 30, 2016 Net loss $ (2,448 ) Gain on the change in fair value of the warrant liability (5,316 ) Diluted earnings $ (7,764 ) Weighted average number of common and common equivalent shares outstanding: Basic number of common shares outstanding 10,536,824 Dilutive effect of warrants 410,889 Diluted number of common and common stock equivalent shares outstanding 10,947,713
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	Potential common stock equivalents outstanding as of September 30, 2016 and 2015 consist of common stock equivalents of common stock purchase warrants, senior secured convertible debentures, convertible preferred stock and common stock options, which are summarized as follows: September 30, 2016 2015 Common stock equivalents of convertible debentures 46,105,715 46,521,127 Common stock purchase warrants 12,033,098 16,078,920 Common stock equivalents of convertible preferred stock 2,415,866 2,535,866 Common stock options 3,007,227 2,302,802 Total 63,561,906 67,438,715

Acquisition (Tables)

Acquisition (Tables)	9 Months Ended
	Sep. 30, 2016
Acquisition [Abstract]
Estimated Fair Value of Assets Acquired and Liabilities Assumed	The fair value of the Company's remaining fixed assets was estimated based on the cost approach which estimated the cost to replace. Fair Value Current assets $ 7,233 Property, plant and equipment 14,340 Identifiable intangible assets 16,100 Other assets 45 Total assets assumed 37,718 Current liabilities (3,945 ) Note payable (57 ) Other long term liabilities (116 ) Total liabilities assumed (4,118 ) Net assets acquired $ 33,600
Unaudited Pro-forma Results	The Company's unaudited pro-forma results for the three and nine months ended September 30, 2015 summarize the combined results in the following table, assuming the asset purchase had occurred on January 1, 2015 and after giving effect to the acquisition adjustments, including amortization of the tangible and long-lived intangible assets acquired in the transaction: Three Months Ended September 30,2015 Nine Months Ended September 30, 2015 (unaudited) (unaudited) Net revenues $ 8,323 $ 23,684 Net loss attributable to common stockholders $ (12,186 ) $ (33,662 ) Net loss per basic and diluted share: $ (1.29 ) $ (4.21 ) Shares used in calculating net loss per basic and diluted share: 9,442,022 7,994,012

Inventories, net (Tables)

Inventories, net (Tables)	9 Months Ended
	Sep. 30, 2016
Inventories, net [Abstract]
Schedule of Inventory	September 30 , December 31, 2015 (unaudited) Raw materials and work in progress $ 2,912 $ 3,706 Finished goods 317 422 Total inventories $ 3,229 $ 4,128

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	9 Months Ended
	Sep. 30, 2016
Property and Equipment, net [Abstract]
Summary of Property and Equipment, Net	September 30, 2016 December 31, 2015 (unaudited) Lasers placed-in-service $ 16,344 $ 15,782 Equipment, computer hardware and software 161 1,219 Furniture and fixtures 111 2,080 Leasehold improvements 24 931 16,640 20,012 Accumulated depreciation and amortization (5,792 ) (6,161 ) Property and equipment, net $ 10,848 $ 13,851

Patents and Licensed Technolo28

Patents and Licensed Technologies, net (Tables)	9 Months Ended
	Sep. 30, 2016
Patents and Licensed Technologies, net [Abstract]
Schedule of Patents and Licensed Technologies, Net	September 30, 2016 December 31, 2015 (unaudited) Core technology $ 5,974 $ 5,974 Product technology 2,000 2,000 7,974 7,974 Accumulated amortization (1,459 ) (727 ) Patents and licensed technologies, net $ 6,515 $ 7,247
Estimated Amortization Expense for Amortizable Patents and Licensed Technologies Assets	Remaining 2016 $ 244 2017 975 2018 975 2019 975 2020 775 Thereafter 2,571 Total $ 6,515

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Other Intangible Assets [Abstract]
Schedule of Other Definite-lived Intangible Assets	Set forth below is a detailed listing of other definite-lived intangible assets: September 30, 2016 December 31, 2015 (unaudited) Customer relationships $ 6,900 $ 6,900 Tradenames 1,500 1,500 8,400 8,400 Accumulated amortization (1,050 ) (420 ) Other intangible assets, net $ 7,350 $ 7,980
Finite-lived Intangible Assets Amortization Expense	Estimated amortization expense for the above amortizable intangible assets for the future periods is as follows: Remaining 2016 $ 210 2017 840 2018 840 2019 840 2020 840 Thereafter 3,780 Total $ 7,350

Other Accrued Liabilities (Tabl

Other Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2016
Other Accrued Liabilities [Abstract]
Schedule of Other Accrued Liabilities	September 3 0 December 31, 2015 (unaudited) Accrued warranty, current, see Note 1 $ 127 $ 168 Accrued compensation, including commissions and vacation 737 1,336 Accrued sales and other taxes 397 349 Accrued professional fees and other accrued liabilities 277 308 Total other accrued liabilities $ 1,538 $ 2,161

Convertible Debentures (Tables)

Convertible Debentures (Tables)	9 Months Ended
	Sep. 30, 2016
Convertible Debentures [Abstract]
Summary of Convertible Debentures	In the following table is a summary of the Company's convertible debentures. September 30, 2016 December 31, 2015 (unaudited) Senior secured 2.25% convertible debentures, net of unamortized debt discount of $24,816 and $26,267, respectively; and deferred financing costs of $535 and $522, respectively $ 6,680 $ 5,489 Senior secured 4% convertible debentures, net of unamortized debt discount of $3,591 and $3,922, respectively; and deferred financing costs of $406 and $443, respectively 4,718 4,350 Total convertible debt $ 11,398 $ 9,839

Long-term Debt (Tables)

Long-term Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Long-term Debt [Abstract]
Key Assumptions Used to Value the Warrants under Long-term Debt	The key assumptions used to value the warrants are as follows: December 31, 2015 January 29, 2016 Number of shares underlying warrants 650,442 99,057 Exercise price $ 1.13 $ 1.06 Stock price on date of issuance $ 1.11 $ 1.05 Fair value of warrants $ 321 $ 47 Volatility 50.0 % 50.0 % Risk-free interest rate 1.8 % 1.8 % Expected dividend yield 0 % 0 % Expected warrant life 5 years 5 years

Warrants (Tables)

Warrants (Tables)	9 Months Ended
	Sep. 30, 2016
Warrants [Abstract]
Warrants Fair Value Assumptions	A summary of quantitative information with respect to the valuation methodology and significant unobservable inputs used for the Company's warrant liabilities that are categorized within Level 3 of the fair value hierarchy as of September 30, 2016, June 22, 2016 and December 31, 2015 is as follows: September 30, 2016 June 22, 2016 December 31, 2015 Number of shares underlying the warrants 2,015,446 14,099,267 14,099,267 Stock price $ 0.53 $ 0.65 $ 1.11 Volatility 46.00 % 35.00 - 50.00 % 35.90 – 50.00 % Risk-free interest rate 0.60% – 0.79 % 0.25% – 1.04 % 0.02% - 1.63 % Expected dividend yield 0 % 0 % 0 % Expected warrant life 2.37 – 2.60 years 0.09– 4.0 years 0.07 – 4.48 years
Schedule of Derivative Warrant Liabilities	Fair Value Measurements Using Significant Unobservable Inputs (Level 3): 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 Issuance Date December 31, 2014 Initial Measurement Increase (Decrease) in Fair Value Reclassed from Equity September 30, 2015 10/31/2013 $ 233 $ - $ 309 $ - $ 542 2/5/2014 266 - 767 - 1,033 7/24/2014 Series A - - 3,452 3,452 7/24/2014 Series B - - 1,947 1,947 6/22/2015 - 2,958 (397 ) - 2,561 Total $ 499 $ 2,958 $ 679 $ 5,399 $ 9,535
Schedule of Warrants Subject to Remeasurement	Number of Warrants Subject to Remeasurement: Issuance Date December 31, 2015 Reductions September 30, 2016 10/31/2013 685,715 - 685,715 2/5/2014 1,329,731 - 1,329,731 7/24/2014 Series A 4,288,500 (4,288,500 ) - 7/24/2014 Series B 4,795,321 (4,795,321 ) - 6/22/2015 3,000,000 (3,000,000 ) - Total 14,099,267 (12,083,821 ) 2,015,446

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity [Abstract]
Summary of Common Stock and Warrants	Common Stock and Warrants Balance at December 31, 2015 16,729,362 Additions 99,057 Expirations (4,795,321 ) Balance at September 30, 2016 12,033,098
Summary of Outstanding Common Stock Warrants	Common stock warrants outstanding at September 30, 2016 consist of the following: Issue Date Expiration Date Total Warrants Exercise Price 4/26/2013 4/26/2018 69,321 $ 11.18 10/31/2013 4/30/2019 685,715 $ 0.75 2/5/2014 2/5/2019 1,329,731 $ 0.75 7/24/2014 7/24/2019 6,198,832 $ 0.75 - $ 2.45 6/22/2015 6/22/2020 3,000,000 $ 0.75 12/30/2015 12/30/2020 650,442 $ 1.13 1/29/2016 1/29/2021 99,057 $ 1.06 12,033,098

Business Segments and Geograp35

Business Segments and Geographic Data (Tables)	9 Months Ended
	Sep. 30, 2016
Business Segments and Geographic Data [Abstract]
Schedule of Segment Reporting Information by Segment	The following tables reflect results of operations from our business segments for the periods indicated below: Three Months Ended September 30, 2016 (unaudited) 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 ) Three Months Ended September 30, 2015 (unaudited) Dermatology Recurring Procedures Dermatology Procedures Equipment Dermatology Imaging TOTAL Revenues $ 7,033 $ 1,189 $ 101 $ 8,323 Costs of revenues 2,326 607 109 3,042 Gross profit 4,707 582 (8 ) 5,281 Gross profit % 66.9 % 48.9 % (7.9 %) 63.5 % Allocated operating expenses: Engineering and product development 348 31 181 560 Selling and marketing expenses 3,553 97 262 3,912 Unallocated operating expenses - - - 3,132 3,901 128 443 7,604 Income (loss) from operations 806 454 (451 ) (2,323 ) Interest expense, net - - - (5,577 ) Change in fair value of warrant liability - - - (1,329 ) Other income (expense), net - - - (5 ) Net income (loss) $ 806 $ 454 $ (451 ) $ (9,234 ) Nine Months Ended September 30, 2016 (unaudited) 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 ) Nine Months Ended September 30, 2015 (unaudited) Dermatology Recurring Procedures Dermatology Procedures Equipment Dermatology Imaging TOTAL Revenues $ 7,138 $ 1,638 $ 239 $ 9,015 Costs of revenues 2,386 891 6,949 10,226 Gross profit 4,752 747 (6,710 ) (1,211 ) Gross profit % 66.6 % 45.6 % (2807.5 %) (13.4 %) Allocated operating expenses: Engineering and product development 355 62 872 1,289 Selling and marketing expenses 3,727 127 1,787 5,641 Unallocated operating expenses - - - 6,819 4,082 189 2,659 13,749 Income (loss) from operations 670 558 (9,369 ) (14,960 ) Interest expense, net - - (8,738 ) Change in fair value of warrant liability - - - (679 ) Other income (expense), net - - - 23 Net income (loss) $ 670 $ 558 $ (9,369 ) $ (24,354 )
Schedule of Net Revenues by Geographic Areas	Net revenues by geographic area were, as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Domestic $ 6,287 $ 7,114 $ 18,444 $ 7,236 Foreign 1,480 1,209 4,682 1,779 $ 7,767 $ 8,323 $ 23,126 $ 9,015

The Company (Details)

The Company (Details) $ in Thousands	Jun. 22, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)Systemsshares	Sep. 30, 2015USD ($)shares	Dec. 31, 2015USD ($)
Liquidity [Abstract]
Accumulated deficit		$ (209,688)		$ (209,688)		$ (207,240)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt		19,542		19,542		15,958
Product Warranty Accrual [Roll Forward]
Accrual at beginning of year				226
Additions charged to warranty expense				141
Expiring warranties/claimed satisfied				(220)
Total		147		147
Less: current portion		(127)		(127)		(168)
Accrued warranty, non-current portion		20		20
Earnings Per Share [Abstract]
Net loss		(1,509)	$ (12,196)	(2,448)	$ (27,316)
Gain on the change in fair value of the warrant liability		(132)	$ 1,329	(5,316)	$ 679
Diluted earnings				$ (7,764)
Weighted average number of common and common equivalent shares outstanding [Abstract]
Basic number of common shares outstanding (in shares) | shares				10,536,824	7,994,012
Dilutive effect of warrants (in shares) | shares				410,889
Diluted number of common and common stock equivalent shares outstanding (in shares) | shares				10,947,713	7,994,012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common stock equivalents (in shares) | shares				63,561,906	67,438,715
Minimum [Member]
Product Warranty Liability [Line Items]
Standard warranty period				1 year
Maximum [Member]
Product Warranty Liability [Line Items]
Standard warranty period				2 years
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liability (Note 10)		185		$ 185		7,042
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liability (Note 10)		0		0		0
Fair Value, Measurements, Recurring [Member] | Significant other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liability (Note 10)		0		0		0
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liability (Note 10)		$ 185		$ 185		$ 7,042
XTRAC and VTRAC [Member]
Business Acquisition [Line Items]
Acquisition price	$ 42,528
XTRAC [Member]
Business Acquisition [Line Items]
Number of systems placed in dermatologists offices | Systems				760
Common Stock Equivalents of Convertible Debentures [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common stock equivalents (in shares) | shares				46,105,715	46,521,127
Common Stock Purchase Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common stock equivalents (in shares) | shares				12,033,098	16,078,920
Common Stock Equivalents of Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common stock equivalents (in shares) | shares				2,415,866	2,535,866
Common Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential common stock equivalents (in shares) | shares				3,007,227	2,302,802

Acquisition (Details)

Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 22, 2015	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Aggregate Fair Value of Assets Acquired and the Liabilities Assumed [Abstract]
Goodwill			$ 8,803		$ 8,928
Unaudited Pro-forma Results [Abstract]
Net revenues		$ 8,323		$ 23,684
Net loss attributable to common stockholders		$ (12,186)		$ (33,662)
Net loss per basic and diluted share: (in dollars per share)		$ (1.29)		$ (4.21)
Shares used in calculating net loss per basic and diluted share: (in shares)		9,442,022		7,994,012
Product Technology [Member]
Business Acquisition [Line Items]
Estimated useful life			5 years
Core Technology [Member]
Business Acquisition [Line Items]
Estimated useful life			10 years
Trade Names [Member]
Business Acquisition [Line Items]
Estimated useful life			10 years
Customer Relationships [Member]
Business Acquisition [Line Items]
Estimated useful life			10 years
XTRAC and VTRAC [Member]
Business Acquisition [Line Items]
Acquisition price	$ 42,528
Return amount from escrow account of purchase price	125
Aggregate Fair Value of Assets Acquired and the Liabilities Assumed [Abstract]
Current assets	7,233
Property, plant and equipment	14,340
Identifiable intangible assets	16,100
Other assets	45
Total assets assumed	37,718
Current liabilities	(3,945)
Note payable	(57)
Other long term liabilities	(116)
Total liabilities assumed	(4,118)
Net assets acquired	$ 33,600
Goodwill			$ 8,803

Inventories, net (Details)

Inventories, net (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of inventory [Abstract]
Raw materials and work in progress	$ 2,912	$ 3,706
Finished goods	317	422
Total inventories	$ 3,229	$ 4,128

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 16,640	$ 16,640		$ 20,012
Accumulated depreciation and amortization	(5,792)	(5,792)		(6,161)
Property and equipment, net	10,848	10,848		13,851
Depreciation and related amortization expense		3,482	$ 1,253
Net book value written off		124	$ 0
Irvington New York facility [Member]
Property, Plant and Equipment [Line Items]
Amount of disposed of leasehold improvements, machinery and equipment and furniture and fixtures	3,933	3,933
Amount of accumulated depreciation and amortization	3,809	3,809
Lasers Placed-In-Service [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	16,344	16,344		15,782
Equipment, Computer Hardware and Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	161	161		1,219
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	111	111		2,080
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 24	$ 24		$ 931

Patents and Licensed Technolo40

Patents and Licensed Technologies, net (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Patents and licensed technologies, net	$ 6,515		$ 7,247
Estimated amortization expense [Abstract]
Patents and licensed technologies, net	6,515		7,247
Core Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Patents and licensed technologies, gross	5,974		5,974
Product Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Patents and licensed technologies, gross	2,000		2,000
Patents and Licensed Technologies [Member]
Finite-Lived Intangible Assets [Line Items]
Patents and licensed technologies, gross	7,974		7,974
Accumulated amortization	(1,459)		(727)
Patents and licensed technologies, net	6,515		7,247
Amortization expense	732	$ 244
Estimated amortization expense [Abstract]
Remaining 2,016	244
2,017	975
2,018	975
2,019	975
2,020	775
Thereafter	2,571
Patents and licensed technologies, net	$ 6,515		$ 7,247

Other Intangible Assets (Detail

Other Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, net	$ 7,350		$ 7,980
Estimated amortization expense [Abstract]
Other intangible assets, net	7,350		7,980
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, gross	6,900		6,900
Tradenames [Member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, gross	1,500		1,500
Customer Relationships and Tradenames [Member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, gross	8,400		8,400
Accumulated amortization	(1,050)		(420)
Other intangible assets, net	7,350		7,980
Amortization expense of other intangible assets	630	$ 210
Estimated amortization expense [Abstract]
Remaining 2,016	210
2,017	840
2,018	840
2,019	840
2,020	840
Thereafter	3,780
Other intangible assets, net	$ 7,350		$ 7,980

Other Accrued Liabilities (Deta

Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Other Accrued Liabilities [Abstract]
Accrued warranty, current, see Note 1	$ 127	$ 168
Accrued compensation, including commissions and vacation	737	1,336
Accrued sales and other taxes	397	349
Accrued professional fees and other accrued liabilities	277	308
Total other accrued liabilities	$ 1,538	$ 2,161

Convertible Debentures (Details

Convertible Debentures (Details) $ / shares in Units, $ in Thousands	Jul. 21, 2014USD ($)shares$ / shares	Sep. 30, 2016USD ($)$ / shares	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)shares$ / shares	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)$ / shares
Debt Instrument [Line Items]
Total convertible debt		$ 11,398		$ 11,398		$ 9,839
Common stock, par value (in dollars per share) | $ / shares		$ 0.001		$ 0.001		$ 0.001
Fair value of warrants adjustment (income) expense		$ (132)	$ 1,329	$ (5,316)	$ 679
Debentures converted in shares of common stock, value				248	$ 4,593
Debentures outstanding amount		40,746		$ 40,746
Maximum [Member]
Debt Instrument [Line Items]
Discounted cash flow change				10.00%
Series A Warrants [Member]
Debt Instrument [Line Items]
Number of warrants to purchase common stock (in shares) | shares	6,198,832
Common stock, par value (in dollars per share) | $ / shares	$ 0.001
Exercise price of warrants (in dollars per share) | $ / shares	$ 2.45
Warrants expiration date				Jul. 31, 2019
Senior Secured 2.25% Convertible Debentures [Member]
Debt Instrument [Line Items]
Total convertible debt		6,680		$ 6,680		$ 5,489
Debt instrument, unamortized discount		24,816		24,816		26,267
Deferred financing costs		$ 535		$ 535		522
Senior secured convertible debentures interest rate		2.25%		2.25%
Aggregate principal amount of debt		$ 32,500		$ 32,500
Number of shares debt convertible (in shares) | shares				43,333,334
Senior secured convertible debentures conversion price (in dollars per share) | $ / shares		$ 0.75		$ 0.75
Debt instrument, maturity period				5 years
Maturity date				Jun. 30, 2021
Debt instrument, convertible, beneficial conversion feature				$ 27,300
Stock price (in dollars per share) | $ / shares		$ 1.38		$ 1.38
Debentures converted in shares of common stock, value				$ 248
Debt conversion, converted instrument, issued (in shares) | shares				329,411
Interest expense on debt				$ 202
Senior Secured 4% Convertible Debentures [Member]
Debt Instrument [Line Items]
Total convertible debt		$ 4,718		4,718		4,350
Debt instrument, unamortized discount	$ 10,353	3,591		3,591		3,922
Deferred financing costs		$ 406		$ 406		$ 443
Senior secured convertible debentures interest rate		4.00%		4.00%
Aggregate principal amount of debt	$ 15,000
Number of shares debt convertible (in shares) | shares	5,847,955
Senior secured convertible debentures conversion price (in dollars per share) | $ / shares	$ 2.565
Debt instrument, maturity period				5 years
Maturity date				Jun. 30, 2021
Debt instrument, convertible, beneficial conversion feature	$ 4,565
Fair value of warrants	5,296
Fair value of warrants adjustment (income) expense	491
Debt instrument initial carrying amount	$ 4,647

Long-term Debt (Details)

Long-term Debt (Details) $ / shares in Units, $ in Thousands	Jan. 29, 2016USD ($)$ / sharesshares	Dec. 30, 2015USD ($)Tranche	Sep. 30, 2016USD ($)	Dec. 31, 2015USD ($)$ / sharesshares
Line of Credit Facility [Line Items]
Outstanding long term debt			$ 10,549	$ 9,851
MidCap Financial Trust [Member]
Line of Credit Facility [Line Items]
Repayment term			60 months
Assumptions used to value the warrants [Abstract]
Number of shares underlying warrants (in shares) | shares	99,057			650,442
Exercise price (in dollars per share) | $ / shares	$ 1.06			$ 1.13
Stock price on date of issuance (in dollars per share) | $ / shares	$ 1.05			$ 1.11
Fair value of warrants	$ 47			$ 321
Volatility	50.00%			50.00%
Risk-free interest rate	1.80%			1.80%
Expected dividend yield	0.00%			0.00%
Expected warrant life	5 years			5 years
MidCap Financial Trust [Member] | Term-Note Credit Facility [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity under the agreement		$ 12,000
Number of tranches | Tranche		2
Outstanding long term debt			$ 10,549
Unamortized discount on the long term debt			$ 593	$ 649
MidCap Financial Trust [Member] | Term-Note Credit Facility [Member] | LIBOR [Member]
Line of Credit Facility [Line Items]
Interest rate on credit facility			8.25%
LIBOR floor Rate			0.50%
MidCap Financial Trust [Member] | Term-Note Credit Facility [Member] | First Tranche [Member]
Line of Credit Facility [Line Items]
Proceeds from credit facility		$ 10,500
Repayment of debt		$ (10,000)
MidCap Financial Trust [Member] | Term-Note Credit Facility [Member] | Second Tranche [Member]
Line of Credit Facility [Line Items]
Proceeds from credit facility	$ 1,500

Warrants (Details)

Warrants (Details) - Warrant [Member] - Level 3 [Member] $ / shares in Units, $ in Thousands	Jun. 22, 2016$ / sharesshares	Sep. 30, 2016USD ($)Warrant$ / sharesshares	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)Warrant$ / sharesshares
Fair Value Assumptions [Abstract]
Number of shares underlying the warrants (in shares) | shares	14,099,267	2,015,446		14,099,267
Stock price (in dollars per share) | $ / shares	$ 0.65	$ 0.53		$ 1.11
Volatility		46.00%
Expected dividend yield	0.00%	0.00%		0.00%
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Abstract]
Balance as beginning of period		$ 7,042	$ 499	$ 499
Initial measurement			2,958
Increase (decrease) in fair value		(5,316)	679
Reclassification to equity		(1,541)	5,399
Balance as end of period		$ 185	9,535	$ 7,042
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract]
Number of warrants, beginning of period | Warrant		14,099,267
Reductions | Warrant		(12,083,821)
Balance as end of period | Warrant		2,015,446		14,099,267
Minimum [Member]
Fair Value Assumptions [Abstract]
Volatility	35.00%			35.90%
Risk-free interest rate	0.25%	0.60%		0.02%
Expected warrant life	1 month 2 days	2 years 4 months 13 days		25 days
Maximum [Member]
Fair Value Assumptions [Abstract]
Volatility	50.00%			50.00%
Risk-free interest rate	1.04%	0.79%		1.63%
Expected warrant life	4 years	2 years 7 months 6 days		4 years 5 months 23 days
10/31/2013 [Member]
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Abstract]
Balance as beginning of period		$ 379	233	$ 233
Initial measurement			0
Increase (decrease) in fair value		(312)	309
Reclassification to equity		0	0
Balance as end of period		$ 67	542	$ 379
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract]
Number of warrants, beginning of period | Warrant		685,715
Reductions | Warrant		0
Balance as end of period | Warrant		685,715		685,715
2/5/2014 [Member]
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Abstract]
Balance as beginning of period		$ 715	266	$ 266
Initial measurement			0
Increase (decrease) in fair value		(597)	767
Reclassification to equity		0	0
Balance as end of period		$ 118	1,033	$ 715
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract]
Number of warrants, beginning of period | Warrant		1,329,731
Reductions | Warrant		0
Balance as end of period | Warrant		1,329,731		1,329,731
7/24/2014 Series A [Member]
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Abstract]
Balance as beginning of period		$ 2,415	0	$ 0
Initial measurement			0
Increase (decrease) in fair value		(1,573)
Reclassification to equity		(842)	3,452
Balance as end of period		$ 0	3,452	$ 2,415
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract]
Number of warrants, beginning of period | Warrant		4,288,500
Reductions | Warrant		(4,288,500)
Balance as end of period | Warrant		0		4,288,500
7/24/2014 Series B [Member]
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Abstract]
Balance as beginning of period		$ 1,726	0	$ 0
Initial measurement			0
Increase (decrease) in fair value		(1,713)
Reclassification to equity		(13)	1,947
Balance as end of period		$ 0	1,947	$ 1,726
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract]
Number of warrants, beginning of period | Warrant		4,795,321
Reductions | Warrant		(4,795,321)
Balance as end of period | Warrant		0		4,795,321
6/22/2015 [Member]
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Abstract]
Balance as beginning of period		$ 1,807	0	$ 0
Initial measurement			2,958
Increase (decrease) in fair value		(1,121)	(397)
Reclassification to equity		(686)	0
Balance as end of period		$ 0	$ 2,561	$ 1,807
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) [Abstract]
Number of warrants, beginning of period | Warrant		3,000,000
Reductions | Warrant		(3,000,000)
Balance as end of period | Warrant		0		3,000,000

Stockholders' Equity (Details)

Stockholders' Equity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Class of Warrant or Right [Line Items]
Total Warrants (in shares)	12,033,098	12,033,098
Class of Warrant or Right Outstanding [Roll Forward]
Beginning balance (in shares)	16,729,362
Additions (in shares)	99,057
Expirations (in shares)	(4,795,321)
Ending balance (in shares)	12,033,098
Common Stock Warrant One [Member]
Class of Warrant or Right [Line Items]
Issue Date	Apr. 26, 2013
Expiration Date	Apr. 26, 2018
Total Warrants (in shares)	69,321	69,321
Exercise price (in dollars per share)		$ 11.18
Class of Warrant or Right Outstanding [Roll Forward]
Ending balance (in shares)	69,321
Common Stock Warrant Two [Member]
Class of Warrant or Right [Line Items]
Issue Date	Oct. 31, 2013
Expiration Date	Apr. 30, 2019
Total Warrants (in shares)	685,715	685,715
Exercise price (in dollars per share)		$ 0.75
Class of Warrant or Right Outstanding [Roll Forward]
Ending balance (in shares)	685,715
Common Stock Warrant Three [Member]
Class of Warrant or Right [Line Items]
Issue Date	Feb. 5, 2014
Expiration Date	Feb. 5, 2019
Total Warrants (in shares)	1,329,731	1,329,731
Exercise price (in dollars per share)		$ 0.75
Class of Warrant or Right Outstanding [Roll Forward]
Ending balance (in shares)	1,329,731
Common Stock Warrant Four [Member]
Class of Warrant or Right [Line Items]
Issue Date	Jul. 24, 2014
Expiration Date	Jul. 24, 2019
Total Warrants (in shares)	6,198,832	6,198,832
Class of Warrant or Right Outstanding [Roll Forward]
Ending balance (in shares)	6,198,832
Common Stock Warrant Four [Member] | Minimum [Member]
Class of Warrant or Right [Line Items]
Exercise price (in dollars per share)		$ 0.75
Common Stock Warrant Four [Member] | Maximum [Member]
Class of Warrant or Right [Line Items]
Exercise price (in dollars per share)		$ 2.45
Common Stock Warrant Five [Member]
Class of Warrant or Right [Line Items]
Issue Date	Jun. 22, 2015
Expiration Date	Jun. 22, 2020
Total Warrants (in shares)	3,000,000	3,000,000
Exercise price (in dollars per share)		$ 0.75
Class of Warrant or Right Outstanding [Roll Forward]
Ending balance (in shares)	3,000,000
Common Stock Warrant Six [Member]
Class of Warrant or Right [Line Items]
Issue Date	Dec. 30, 2015
Expiration Date	Dec. 30, 2020
Total Warrants (in shares)	650,442	650,442
Exercise price (in dollars per share)		$ 1.13
Class of Warrant or Right Outstanding [Roll Forward]
Ending balance (in shares)	650,442
Common Stock Warrant Seven [Member]
Class of Warrant or Right [Line Items]
Issue Date	Jan. 29, 2016
Expiration Date	Jan. 29, 2021
Total Warrants (in shares)	99,057	99,057
Exercise price (in dollars per share)		$ 1.06
Class of Warrant or Right Outstanding [Roll Forward]
Ending balance (in shares)	99,057

Stock-based compensation (Detai

Stock-based compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Number of Stock Options [Roll Forward]
Stock-based compensation expense	$ 116	$ 1,007	$ 401	$ 1,483
Unrecognized compensation expense	$ 282		$ 282
Unrecognized compensation expense, weighted average period			4 years
Stock Options [Member]
Number of Stock Options [Roll Forward]
Stock based compensation options outstanding (in shares)	3,007,227		3,007,227
Stock based compensation weighted average exercise price (in dollars per share)	$ 1.48		$ 1.48
Stock based compensation vested (in shares)	2,072,251		2,072,251
Stock based compensation exercisable (in shares)	2,072,251		2,072,251

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income taxes [Abstract]
Income tax expense change in deferred tax liability related to goodwill	$ 64	$ 0	$ 191	$ 0

Business Segments and Geograp49

Business Segments and Geographic Data (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)Segment	Sep. 30, 2015USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | Segment			3
Number of dermatology procedures segments | Segment			2
Results of Operations from Business Segments [Abstract]
Revenues	$ 7,767	$ 8,323	$ 23,126	$ 9,015
Cost of revenues	3,070	3,042	9,631	10,226
Gross profit (loss)	$ 4,697	$ 5,281	$ 13,495	$ (1,211)
Gross profit %	60.50%	63.50%	58.40%	(13.40%)
Allocated operating expenses [Abstract]
Engineering and product development	$ 382	$ 560	$ 1,541	$ 1,289
Selling and marketing expenses	2,840	3,912	10,073	5,641
Unallocated operating expenses	1,880	3,132	5,882	6,819
Total operating expenses	5,102	7,604	17,496	13,749
Operating loss before other income (expense), net	(405)	(2,323)	(4,001)	(14,960)
Interest expense, net	(1,175)	(5,577)	(3,571)	(8,738)
Change in fair value of warrant liability	132	(1,329)	5,316	(679)
Other income (expense), net	3	(5)	(1)	23
Net income (loss)	(1,445)	(9,234)	(2,257)	(24,354)
Operating Segments [Member] | Dermatology Recurring Procedures [Member]
Results of Operations from Business Segments [Abstract]
Revenues	6,205	7,033	17,826	7,138
Cost of revenues	2,162	2,326	6,723	2,386
Gross profit (loss)	$ 4,043	$ 4,707	$ 11,103	$ 4,752
Gross profit %	65.20%	66.90%	62.30%	66.60%
Allocated operating expenses [Abstract]
Engineering and product development	$ 343	$ 348	$ 977	$ 355
Selling and marketing expenses	2,767	3,553	9,626	3,727
Unallocated operating expenses	0	0	0	0
Total operating expenses	3,110	3,901	10,603	4,082
Operating loss before other income (expense), net	933	806	500	670
Interest expense, net	0	0	0	0
Change in fair value of warrant liability	0	0	0	0
Other income (expense), net	0	0	0	0
Net income (loss)	933	806	500	670
Operating Segments [Member] | Dermatology Procedures Equipment [Member]
Results of Operations from Business Segments [Abstract]
Revenues	1,550	1,189	5,174	1,638
Cost of revenues	877	607	2,641	891
Gross profit (loss)	$ 673	$ 582	$ 2,533	$ 747
Gross profit %	43.40%	48.90%	49.00%	45.60%
Allocated operating expenses [Abstract]
Engineering and product development	$ 31	$ 31	$ 147	$ 62
Selling and marketing expenses	57	97	261	127
Unallocated operating expenses	0	0	0	0
Total operating expenses	88	128	408	189
Operating loss before other income (expense), net	585	454	2,125	558
Interest expense, net	0	0	0	0
Change in fair value of warrant liability	0	0	0	0
Other income (expense), net	0	0	0	0
Net income (loss)	585	454	2,125	558
Operating Segments [Member] | Dermatology Imaging [Member]
Results of Operations from Business Segments [Abstract]
Revenues	12	101	126	239
Cost of revenues	31	109	267	6,949
Gross profit (loss)	$ (19)	$ (8)	$ (141)	$ (6,710)
Gross profit %	(158.30%)	(7.90%)	(111.90%)	(2807.50%)
Allocated operating expenses [Abstract]
Engineering and product development	$ 8	$ 181	$ 417	$ 872
Selling and marketing expenses	16	262	186	1,787
Unallocated operating expenses	0	0	0	0
Total operating expenses	24	443	603	2,659
Operating loss before other income (expense), net	(43)	(451)	(744)	(9,369)
Interest expense, net	0	0	0
Change in fair value of warrant liability	0	0	0	0
Other income (expense), net	0	0	0	0
Net income (loss)	(43)	(451)	(744)	(9,369)
Reportable Geographical Components [Member] | Domestic [Member]
Results of Operations from Business Segments [Abstract]
Revenues	6,287	7,114	18,444	7,236
Reportable Geographical Components [Member] | Foreign [Member]
Results of Operations from Business Segments [Abstract]
Revenues	$ 1,480	$ 1,209	$ 4,682	$ 1,779

Significant Customer Concentr50

Significant Customer Concentration (Details) - Customer Concentration Risk [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Product Information [Line Items]
Revenues	$ 1,457	$ 949	$ 4,604	$ 1,385
Accounts receivable	$ 613		$ 613
Revenue [Member]
Product Information [Line Items]
Concentration risk percentage	18.80%	11.40%	19.90%	15.40%
Accounts Receivable [Member]
Product Information [Line Items]
Concentration risk percentage			20.90%

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Oct. 28, 2016	Oct. 31, 2016	May 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Subsequent Events [Line Items]
Debentures converted in shares of common stock, value				$ 248,000	$ 4,593,000
Proceeds from sale of business			$ 174,000,000
Subsequent Event [Member]
Subsequent Events [Line Items]
Debentures converted in shares of common stock, value	$ 19,000
Debentures stock converted in shares of common stock (in shares)	25,000
Vested options exercisable period		90 days
Consulting services term		6 months
Consulting fee		$ 12,500