Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 15, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Transition Report | false | ||
Entity File Number | 0-11635 | ||
Entity Registrant Name | STRATA SKIN SCIENCES, INC. | ||
Entity Central Index Key | 0001051514 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-3986004 | ||
Entity Address, Address Line One | 5 Walnut Grove Drive | ||
Entity Address, Address Line Two | Suite 140 | ||
Entity Address, City or Town | Horsham | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19044 | ||
City Area Code | 215 | ||
Local Phone Number | 619-3200 | ||
Title of 12(b) Security | Common Stock, $0.001 Par Value | ||
Trading Symbol | SSKN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 17,222,777 | ||
Entity Common Stock, Shares Outstanding | 34,881,453 | ||
Auditor Firm ID | 688 | ||
Auditor Name | Marcum LLP | ||
Auditor Location | Philadelphia, Pennsylvania |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 5,434 | $ 12,586 |
Restricted cash | 1,361 | 0 |
Accounts receivable, net of allowance for doubtful accounts of $382 and $275 at December 31, 2022 and 2021, respectively | 4,471 | 3,433 |
Inventories | 5,547 | 3,489 |
Prepaid expenses and other current assets | 691 | 462 |
Total current assets | 17,504 | 19,970 |
Property and equipment, net | 7,498 | 6,883 |
Operating lease right-of-use assets | 975 | 638 |
Intangible assets, net | 17,394 | 10,083 |
Goodwill | 8,803 | 8,803 |
Other assets | 98 | 216 |
Total assets | 52,272 | 46,593 |
Current liabilities: | ||
Accounts payable | 3,425 | 2,822 |
Accrued expenses and other current liabilities | 6,555 | 6,377 |
Deferred revenues | 2,778 | 3,285 |
Current portion of operating lease liabilities | 355 | 318 |
Current portion of contingent consideration | 313 | 0 |
Total current liabilities | 13,426 | 12,802 |
Long-term debt, net | 7,476 | 7,319 |
Deferred revenues and other liabilities | 314 | 400 |
Deferred tax liability | 306 | 266 |
Operating lease liabilities, net of current portion | 610 | 392 |
Contingent consideration, net of current portion | 8,309 | 0 |
Total liabilities | 30,441 | 21,179 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity: | ||
Series C convertible preferred stock, $0.10 par value; 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 150,000,000 shares authorized; 34,723,046 and 34,364,679 shares issued and outstanding at December 31, 2022 and 2021, respectively | 35 | 34 |
Additional paid-in capital | 249,024 | 247,059 |
Accumulated deficit | (227,228) | (221,679) |
Total stockholders' equity | 21,831 | 25,414 |
Total liabilities and stockholders' equity | $ 52,272 | $ 46,593 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Allowance for doubtful accounts | $ 382 | $ 275 |
Stockholders' equity: | ||
Series C Convertible Preferred Stock, par value (in dollars per share) | $ 0.1 | $ 0.1 |
Series C Convertible Preferred Stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Series C Convertible Preferred Stock, shares issued (in shares) | 0 | 0 |
Series C Convertible Preferred Stock, shares outstanding (in shares) | 0 | 0 |
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) | 34,723,046 | 34,364,679 |
Common stock, shares outstanding (in shares) | 34,723,046 | 34,364,679 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues, net | $ 36,161 | $ 29,977 |
Cost of revenues | 14,393 | 10,127 |
Gross profit | 21,768 | 19,850 |
Operating expenses: | ||
Engineering and product development | 1,029 | 1,434 |
Selling and marketing | 15,301 | 13,106 |
General and administrative | 10,087 | 9,712 |
Total operating expenses | 26,417 | 24,252 |
Loss from operations | (4,649) | (4,402) |
Other (expense) income: | ||
Interest expense | (926) | (314) |
Interest income | 89 | 15 |
Gain on forgiveness of debt | 0 | 2,029 |
Other income (expense), net | (837) | 1,730 |
Loss before income tax expense | (5,486) | (2,672) |
Income tax expense | (63) | (34) |
Net loss | $ (5,549) | $ (2,706) |
Common Shares [Member] | ||
Other (expense) income: | ||
Net loss per share of common stock - basic (in dollars per share) | $ (0.16) | $ (0.08) |
Net loss per share of common stock - diluted (in dollars per share) | $ (0.16) | $ (0.08) |
Weighted average shares of common stock outstanding - basic (in shares) | 34,712,246 | 34,050,274 |
Weighted average shares of common stock outstanding - diluted (in shares) | 34,712,246 | 34,050,274 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Beginning balance at Dec. 31, 2020 | $ 34 | $ 244,831 | $ (218,973) | $ 25,892 |
Beginning balance (in shares) at Dec. 31, 2020 | 33,801,045 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation expense | $ 0 | 1,643 | 0 | 1,643 |
Exercise of stock options | $ 0 | 0 | 0 | $ 0 |
Exercise of stock options (in shares) | 329,076 | 329,076 | ||
Issuance of restricted stock | $ 0 | 0 | 0 | $ 0 |
Issuance of restricted stock (in shares) | 234,558 | 234,558 | ||
Issuance of common stock warrants in connection with Senior Term Facility | $ 0 | 585 | 0 | $ 585 |
Net loss | 0 | 0 | (2,706) | (2,706) |
Ending balance at Dec. 31, 2021 | $ 34 | 247,059 | (221,679) | 25,414 |
Ending balance (in shares) at Dec. 31, 2021 | 34,364,679 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation expense | $ 0 | 1,466 | 0 | 1,466 |
Issuance of common stock for acquisition | $ 1 | 499 | 0 | $ 500 |
Issuance of common stock for acquisition (in shares) | 358,367 | 358,367 | ||
Net loss | $ 0 | 0 | (5,549) | $ (5,549) |
Ending balance at Dec. 31, 2022 | $ 35 | $ 249,024 | $ (227,228) | $ 21,831 |
Ending balance (in shares) at Dec. 31, 2022 | 34,723,046 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (5,549) | $ (2,706) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 5,293 | 3,736 |
Amortization of operating lease right-of-use assets | 395 | 350 |
Amortization of deferred financing costs and debt discount | 157 | 37 |
Provision for doubtful accounts | 107 | 1 |
Stock-based compensation | 1,466 | 1,643 |
Loss on disposal of property and equipment | 52 | 140 |
Gain on forgiveness of debt | 0 | (2,029) |
Deferred taxes | 40 | 12 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,145) | (490) |
Inventories | (1,524) | (45) |
Prepaid expenses and other assets | (111) | (65) |
Accounts payable | 603 | 58 |
Accrued expenses and other liabilities | 229 | 1,679 |
Deferred revenues | (644) | (444) |
Operating lease liabilities | (477) | (369) |
Net cash (used in) provided by operating activities | (1,108) | 1,508 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (3,552) | (3,653) |
Net cash used in investing activities | (4,183) | (7,126) |
Cash flows from financing activities: | ||
Payment of contingent consideration | (500) | 0 |
Proceeds from long-term debt | 0 | 8,000 |
Payment of deferred financing costs | 0 | (133) |
Repayment of note payable | 0 | (7,275) |
Repayments of long-term debt | 0 | (500) |
Net cash (used in) provided by financing activities | (500) | 92 |
Net decrease in cash, cash equivalents and restricted cash | (5,791) | (5,526) |
Cash, cash equivalents and restricted cash, beginning of year | 12,586 | 18,112 |
Cash, cash equivalents and restricted cash, end of year | 6,795 | 12,586 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the year for interest | 744 | 222 |
Cash paid during the year for income taxes | 19 | 0 |
Supplemental disclosure of non-cash operating, investing and financing activities: | ||
Change in operating lease right-of-use assets and liabilities due to new and amended leases | 732 | 0 |
Inventories acquired in connection with TheraClear asset acquisition | 71 | 0 |
Intangible assets acquired in connection with TheraClear asset acquisition | 10,182 | 0 |
Contingent consideration issued in connection with TheraClear asset acquisition | 9,122 | 0 |
Common stock issued in connection with TheraClear asset acquisition | 500 | 0 |
Transfer of property and equipment to inventories | 463 | 0 |
Issuance of common stock warrants in connection with Senior Term Facility | 0 | 585 |
Assumed deferred revenues in connection with asset acquisition | 0 | 1,841 |
TheraClear Corporation [Member] | ||
Cash flows from investing activities: | ||
Cash paid in connection with asset acquisition | (631) | 0 |
RA Medical Systems, Inc. [Member] | ||
Cash flows from investing activities: | ||
Cash paid in connection with asset acquisition | $ 0 | $ (3,473) |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization and Nature of Business [Abstract] | |
Organization and Nature of Business | 1. Organization and Nature of Business STRATA Skin Sciences, Inc. (the “Company”) is a medical technology company in dermatology dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Its products include the XTRAC® and Pharos® excimer lasers and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions. In January 2022, the Company acquired the TheraClear Acne Therapy System to broaden its opportunities with expansion potential in the acne care market. The Company markets the device under the brand name TheraClear® X. COVID-19 Pandemic In late 2019, there was an outbreak of a new strain of coronavirus (“COVID-19”) which became a global pandemic. While many of COVID-19’s initial disruptions and damage to the global economy have been mitigated, the COVID-19 pandemic has continued to negatively impact the economy, disrupted global supply chains, constrained workforce participation and created significant volatility and disruption of financial markets. The pandemic led to the suspension of elective procedures in the U.S. and to the temporary closure of many physician practices, which are the Company’s primary customers. While most offices have reopened, some physician practices closed and never reopened, and the impact of the ongoing COVID-19 pandemic and its variants on the Company’s operational and financial performance, including its ability to execute its business strategies and initiatives in the expected time frames, will depend on future developments, including, but not limited to, the ongoing mutations and spread of the COVID-19 virus, impact on business operations, supply chains and transport, and governmental and societal responses thereto, all of which are uncertain and cannot be predicted. The ongoing COVID-19 pandemic has had a negative impact on the Company’s results of operations and financial performance through fiscal 2022, and the Company expects it will continue to have a negative impact on revenues, earnings and cash flows until such time as its customers adjust to the pandemic’s ramifications. Some physician offices continue to experience staffing issues, and the Company believes these shortages of trained personnel have negatively impacted its business. Accordingly, current results and financial conditions discussed herein may not be indicative of future operating results and trends. Russia-Ukraine War Prior to the outbreak of the Russia-Ukraine War, Ukraine was the largest exporter of noble gases including neon, krypton, and xenon. Historically, Ukraine has been the source of a significant amount of gas supplied to the Company by its contract suppliers. Neon gas is essential to the proper functioning of the Company’s lasers. The Company’s supporters have been resourceful in continuing to supply gases to the Company but cannot assure it that the supply will not remain uninterrupted. The reduced supply and war have raised the price of gas significantly worldwide. Additionally, the Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 has led to a further tightening of rare gas supplies as chip manufacturers reconfigure their supply chains to address the need to secure their own supplies of rare gases for use in the manufacture of computer chips, while struggling with the disruptions caused by this war. Liquidity and Going Concern The Company has been negatively impacted by the ongoing COVID-19 pandemic, has historically experienced recurring losses, has been dependent on raising capital from the sale of securities in order to continue to operate, was required to restrict cash for potential sales tax liabilities (see Notes 2 and 12) and refinanced its debt at a lower interest rate. In October 2021, the Company entered into an equity distribution agreement with an investment bank under which the Company may sell up to $11.0 million of its common stock in registered “at-the-market” offerings. Management believes that the Company’s cash and cash equivalents, combined with the anticipated revenues from the sale or use of its products and operating expense management |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements are presented in U.S. dollars and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and as amended by Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”). The accompanying consolidated financial statements include the accounts of the Company and Photomedex India Private Limited, its wholly-owned subsidiary in India. No operating activities have occurred within the Company’s subsidiary as of and during the years ended December 31, 2022 and 2021. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and reported amounts of revenue and expenses during the reporting period. The Company’s significant estimates and judgments involve revenue recognition with respect to deferred revenues and the contract term and valuation allowances of accounts receivable, inputs used when evaluating goodwill for impairment, inputs used in the valuation of acquired intangible assets and contingent consideration, state sales and use tax accruals, the estimated useful lives of intangible assets, and the valuation allowance related to deferred tax assets. Actual results could differ from those estimates. Concentrations of Credit Risk and Major Customers The Company’s cash is held on deposit in demand accounts at a large financial institution in amounts in excess of the Federal Deposit Insurance Corporation, or FDIC, insurance coverage limit of $0.3 million per depositor, per FDIC-insured bank, per ownership category. Management has reviewed the financial statements of this institution and believes it has sufficient assets and liquidity to conduct its operations in the ordinary course of business with little credit risk to the Company. Financial instruments that potentially subject the Company to concentrations of credit risk principally consist of cash equivalents and accounts receivable. The Company limits its credit risk associated with cash equivalents by placing investments in highly-rated money market funds. The Company limits its credit risk with respect to accounts receivable by performing credit evaluations when deemed necessary, but it does not require collateral to secure amounts owed by its customers. The Company had two customers and one customer, international distributors, from which it earns dermatology recurring procedures and dermatology procedures equipment revenues, that accounted for more than 10% of the Company’s revenues for the years ended December 31, 2022 and 2021, respectively. Revenues from these customers were $8.5 million and $3.4 million, or 23% and 11%, of total net revenues during the years ended December 31, 2022 and 2021, respectively. Accounts receivable associated with these customers was $0.5 million and 11% of net accounts receivable as of December 31, 2022, and less than 10% of total accounts receivable as of December 31, 2021. No other customer represented more than 10% of total accounts receivable as of December 31, 2022 or 2021. Cash and Cash Equivalents The Company considers all highly-liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of December 31, 2022 and 2021, cash equivalents consisted of credit card transactions with settlement terms of less than five days. Restricted Cash As discussed more fully in Note 12, an administrative state judge in the State of New York issued an opinion in January 2021 finding in favor of the Company that the sale of XTRAC treatment codes was not taxable as sales tax with respect to that state’s first assessment. The relevant taxing authority filed an appeal of the administrative law judge’s finding and, following the submission of legal briefs by both sides and oral argument held in January 2022, on May 6, 2022, the Company received a written decision from the State of New York Tax Appeals Tribunal (“Tribunal”) overturning the favorable sales tax determination of the administrative law judge. The Company filed an appeal of the Tribunal’s decision, and posted the required appellate bond requiring the posting of cash collateral, with the New York State Appellate Division, and is awaiting for the appellate court to set a briefing and oral argument schedule. The cash collateral is recorded as restricted cash on the consolidated balance sheet as of December 31, 2022. The following table provides a reconciliation of the components of cash, cash equivalents and restricted cash reported in the Company’s consolidated balance sheets to the total of the amount presented in the consolidated statements of cash flows (in thousands): December 31, 2022 2021 Cash and cash equivalents $ 5,434 $ 12,586 Restricted cash 1,361 — Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows $ 6,795 $ 12,586 Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable primarily relates to amounts due from customers, which are typically due within 30 to 90 days from invoice date. The Company provides credit to its customers in the normal course of business and maintains allowances for potential credit losses. The Company does not require collateral or other security for accounts receivable. The Company maintains allowances for doubtful accounts for estimated losses resulting from amounts deemed to be uncollectible from its customers. These allowances are for specific amounts on certain customer accounts based on facts and circumstances determined on a case-by-case basis. The Company writes off accounts receivable when they are considered uncollectible, and payments subsequently received on such receivables are credited to bad debt expense. The Company does not recognize interest accruing on accounts receivable past due. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined based on purchased cost for raw materials and all production cost related to the laser manufacturing process (labor and indirect manufacturing cost, including sub-contracted work components) for work-in-process and finished goods is classified as inventory. For the Company’s products, cost is determined on the first-in, first-out method. Work-in-process is immaterial, given the typically short manufacturing cycle and therefore , The Company’s equipment for the treatment of skin disorders (e.g. the XTRAC) will either (i) be placed in a physician’s office and remain the property of the Company (at which date such equipment is transferred to property and equipment) or (ii) be sold to distributors or physicians directly. The cost to build a laser, whether for sale or for placement, is accumulated in inventory. Reserves for slow - Property and Equipment, net Property and equipment are recorded at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred and costs of improvements and renewals are capitalized. Depreciation and amortization are recognized using the straight-line method based on the estimated useful lives of the related assets. The Company uses an estimated useful life of three years for computers, hardware and software, five years for machinery and equipment and for furniture and fixtures and the lesser of the useful life or lease term for leasehold improvements. Intangible Assets Intangible assets consist of core technology, product technology, customer relationships, trademarks and distribution rights. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from three Goodwill Goodwill is the excess of the cost of an acquired entity over the net amounts assigned to tangible and intangible assets acquired and liabilities assumed. Goodwill is not amortized, but is subject to an annual impairment test. The Company has two reporting units and goodwill is allocated to the reporting units. The Company performs its goodwill impairment test on an annual basis in the quarter of each fiscal year or more frequently if changes in circumstances or the occurrence of events suggest that an impairment exists. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the implied fair value of the reporting unit’s goodwill is less than the carrying value of the reporting unit’s goodwill. The Company’s annual goodwill impairment test resulted in no impairment charges during the years ended December and Impairment of Long-Lived Assets and Intangibles The Company reviews its long-lived assets and intangible assets subject to amortization for impairment whenever events or changes in circumstances indicate the carrying amount of an asset group may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset group to future net cash flows expected to be generated by the asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset group exceeds the fair value of the asset group, less costs to sell. The Company did not record any charges related to asset impairment during the years ended December 31, 2022 and 2021. Fair Value Measurements The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy that requires the use of observable inputs and minimizes the use of unobservable inputs. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1 – quoted market prices in active markets for identical assets or liabilities. • Level 2 – observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 – inputs that are generally unobservable and typically reflect the Company’s estimate of assumptions that market participants would use in pricing the asset or liability. Accrued Warranty Costs The Company offers a standard warranty on product sales generally for a one three The activity in the warranty accrual during the years ended December 31, 2022 and 2021 is summarized as follows (in thousands): December 31, 2022 2021 Balance, beginning of year $ 79 $ 113 Additions 246 71 Expirations and claims satisfied (118 ) (105 ) Total 207 79 Less current portion within accrued expenses and other current liabilities (136 ) (59 ) Balance within deferred revenues and other liabilities $ 71 $ 20 Debt Issuance Costs The Company capitalizes direct costs incurred to obtain debt financing and amortizes these costs to interest expense over the term of the debt using the effective interest method. These costs are recorded as a debt discount and are netted against the related debt on the Company’s consolidated balance sheets. Revenue Recognition Revenues from the Company’s dermatology recurring procedures customers are earned by providing physicians with its laser products and charging the physicians a fee for a fixed number of treatment sessions or a fixed fee for a specified period of time not to exceed an agreed upon number of treatments; if that number is exceeded additional fees will have to be paid. The placement of the laser products at physician locations represents embedded leases which are accounted for as operating leases. For the lasers placed-in service under these arrangements, the terms of the domestic arrangements are generally 36 months with automatic one-year renewals and include a termination clause that can be effected at any time by either party with 30 to 60 day notice. Amounts paid are generally non-refundable. Sales of access codes for a fixed number of treatment sessions are considered variable treatment code payments and are recognized as revenue over the estimated usage period of the agreed upon number of treatments. Sales of access codes for a specified period of time are recognized as revenue on a straight-line basis as the lasers are being used over the term period specified in the agreement. Variable treatment code payments that will be paid only if the customer exceeds the agreed upon number of treatments are recognized only when such treatments are being exceeded and used. Internationally, the Company generally sells access codes for a fixed amount on a monthly basis to its distributors and the terms are generally 48 months, with termination in the event of the customers’ failure to remit payments timely, and include a potential buy-out at the end of the term of the contract. Currently, this is the only foreign recurring revenue. Prepaid amounts recorded in deferred revenue and customer deposits recorded in accounts payable are recognized as revenue over the lease term in the patterns described above. Pricing is fixed with the customer. With respect to lease and non-lease components, the Company adopted the practical expedient to account for the arrangement as a single lease component. Revenues from the Company’s dermatology procedures equipment are recognized when control of the promised goods or services is transferred to its customers or distributors, in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. Accordingly, the Company determines revenue recognition through the following steps: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, performance obligations are satisfied. Accounting for the Company’s contracts involves the use of significant judgments and estimates including determining the separate performance obligations, allocating the transaction price to the different performance obligations and determining the method to measure the entity’s performance toward satisfaction of performance obligations that most faithfully depicts when control is transferred to the customer. The Company allocates the contract’s transaction price to each performance obligation using the Company’s best estimate of the standalone selling price for each distinct good or service in the contract. The Company maximizes the use of observable inputs by beginning with average historical contractual selling prices and adjusting as necessary and on a consistent and rational basis for other inputs such as pricing trends, customer types, volumes and changing cost and margins. Revenues from dermatology procedures equipment are recognized when control of the promised products is transferred to either the Company’s distributors or end-user customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products (the transaction price). Control transfers to the customer at a point in time. To indicate the transfer of control, the Company must have a present right to payment and legal title must have passed to the customer. The Company ships most of its products FOB shipping point, and as such, the Company primarily transfers control and records revenue upon shipment. From time to time the Company will grant certain customers, for example governmental customers, FOB destination terms, and the transfer of control for revenue recognition occurs upon receipt. The Company has elected to recognize the cost of freight and shipping activities as fulfillment costs. Amounts billed to customers for shipping and handling are included as part of the transaction price and recognized as revenue when control of the underlying goods are transferred to the customer. The related shipping and freight charges incurred by the Company are included in cost of revenues. The following table presents the Company’s net revenues disaggregated by dermatology recurring procedures and dermatology procedures equipment (in thousands): Year Ended December 2022 2021 Dermatology recurring procedures $ 23,025 $ 22,528 Dermatology procedures equipment 13,136 7,449 Total net revenues $ 36,161 $ 29,977 The following table summarizes the Company’s expected future undiscounted fixed treatment code payments from dermatology recurring procedures (in thousands): Years ending December 31: 2023 $ 1,207 2024 975 2025 384 2026 166 2027 4 $ 2,736 Remaining performance obligations related to ASC 606 represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year, which are fully or partially unsatisfied at the end of the period. Remaining performance obligations include the potential obligation to perform under extended warranties and service contracts leases. As of December 31, 2022 and 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $0.6 million and $1.3 million million million one The decrease in remaining performance obligations from December 31, 2021 to December 31, 2022 is due to the recognition of deferred service revenue associated with assumed service contracts from Ra Medical (see Note 3). Contract liabilities primarily relate to extended warranties and service contracts million million million million With respect to contract acquisition costs, the Company applied the practical expedient and expenses these costs immediately. Engineering and Product Development Engineering and product development costs associated with research, new product development and product redesign are expensed as incurred. Advertising Costs Advertising costs are expensed as incurred and included in selling and marketing expenses within the Company’s consolidated statement of operations. The Company recognized advertising costs of $1.6 million during each of the years ended December 31, 2022 and 2021. Stock-Based Compensation The Company measures share-based awards at their grant-date fair value and records compensation expense on a straight-line basis over the requisite service period of the awards. Estimating the fair value of share-based awards requires the input of subjective assumptions, including the expected life of the options and stock price volatility. The Company accounts for forfeitures of stock option awards as they occur. The estimated fair value of restricted stock awards is equal to the Company’s common stock price at the grant date. The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in estimating the fair value of stock-option awards represent management’s estimate and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, share-based compensation expense could be materially different for future awards. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities, as well as on net operating loss carryforwards, and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Any resulting net deferred tax assets are evaluated for recoverability and, accordingly, a valuation allowance is provided when it is not more likely than not that all or some portion of the deferred tax asset will be realized. The Company recognizes the tax effects of uncertain tax positions only if the position is “more-likely-than-not” to be sustained were it to be challenged by a taxing authority. The assessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. If an uncertain tax position meets the “more-likely-than-not” threshold, the largest amount of tax benefit that is more than 50% likely to be recognized upon ultimate settlement with the taxing authority is recorded. The Company has no uncertain tax positions as of December 31, 2022. The Company includes interest and penalties related to income tax obligations within income tax expense. The Company’s tax years are still under open status from 2019 to present. Net Loss Per Share Basic net loss per share of common stock is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted loss per share of common stock includes the effect, if any, from the potential exercise or conversion of securities such as unvested restricted stock awards, stock options and warrants for common stock which would result in the issuance of incremental shares of common stock. For diluted net loss per share, the weighted-average number of shares of common stock is the same as for basic net loss per share due to the fact that when a net loss exists, dilutive securities are not included in the calculation as the impact is anti-dilutive. The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive: December 31, 2022 2021 Restricted stock units 278,004 90,540 Stock options 4,474,714 3,938,613 Common stock warrants 373,626 373,626 5,126,344 4,402,779 Accounting Pronouncements Recently Adopted In May 2021, the FASB issued ASU 2021-04, Earnings per Share (Topic 260), Debt – Modifications and Extinguishments (Subtopic 470-50), Compensation – Stock Compensation (Topic 718), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges or Freestanding Equity-Classified Written Call Options Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instrume nts In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivative and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity ’ own equity. Specifically, the ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. In addition, the ASU removes certain settlement conditions that are required for equity contracts to qualify for it and simplifies the diluted earnings per share (EPS) calculations in certain areas. The guidance is effective for fiscal years beginning after December 15, 2023 and early adoption is permitted. The Company does not currently engage in contracts covered by this guidance and does not believe it will have a material effect on the Company’s consolidated financial statements, but it could in the future. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions [Abstract] | |
Acquisitions | 3. Acquisitions TheraClear Asset Acquisition In January 2022, the Company acquired certain assets related to the TheraClear devices from Theravant Corporation (“Theravant”). The TheraClear asset acquisition will allow the Company to further develop, commercialize and market the TheraClear devices that are used for acne treatment, as well as advance the TheraClear technology into multiple other devices that can be used to treat a range of additional indications. The Company made an upfront cash payment of $0.5 million and issued to Theravant 358,367 shares of common stock with an aggregate value of $0.5 million as of the closing date in connection with the TheraClear asset acquisition. During the fourth quarter of 2022, the Company also made a $0.5 million milestone payment upon the launch of the TheraClear Acne Therapy System, one of the development-related targets. The Company determined this transaction represented an asset acquisition as substantially all of the value was in the TheraClear technology intangible asset as defined by ASC 805, Business Combinations The purchase price was allocated, on a relative fair value basis, to the technology intangible asset and acquired inventories as follows (in thousands): Consideration: Cash payment $ 500 Common stock issued 500 Transaction costs 131 Contingent consideration 9,122 Total consideration $ 10,253 Assets acquired: Technology intangible asset $ 10,182 Inventories 71 Total assets acquired $ 10,253 The technology intangible asset is being amortized on a straight-line basis over a period of ten years, to be updated for subsequent changes in the contingent consideration that is allocated to its carrying value. The intangible asset was valued using the relief from royalty method. Significant assumptions used in the relief from royalty method include a 14.5% weighted average cost of capital and 15.0% of revenues for the royalty rate. The net book value of acquired inventories approximated its fair value. To calculate the fair value of the earnout using Monte Carlo simulations, Company projections were utilized to develop expected revenues and gross profits based on the risk inherent in the projections using the Geometric-Brownian motion for the earnout periods and related earnout payments. Significant assumptions used in the Geometric-Brownian motion analysis include projected revenues, projected gross profit, risk free rate of return of 1.6%, revenue volatility of 45.0%, and a cost of equity of 10.5%. Due to uncertainties associated with the development of a new product line and the use of estimates and assumptions to determine the fair value of the contingent consideration, the amount ultimately paid in connection with the earnout may differ from the estimated fair value at the acquisition date. A revaluation of the contingent consideration would only be required if there is a significant change to the underlying valuation assumptions. The contingent consideration will be adjusted when the contingency is resolved and the consideration is paid or becomes payable. Any difference between the cash payment and the amount accrued for contingent consideration will result in an adjustment to the technology intangible asset. Contingent consideration expected to be paid within the next year, which consists of $0.3 million as of December 31, 2022, is classified as current on the consolidated balance sheet. Pharos Asset Acquisition In August 2021, the Company acquired certain assets and liabilities related to the U.S. dermatology Pharos business from Ra Medical Systems, Inc. (“Ra Medical”). Ra Medical’s Pharos excimer laser system holds FDA clearance to treat chronic skin diseases, including psoriasis, vitiligo, atopic dermatitis and leukoderma. The acquisition of these assets and liabilities allows the Company to market its full business solutions to Ra Medical’s existing customer base comprised of 400 dermatology practices offering opportunities to increase its recurring revenue base and a pathway to gain additional placements for the Company’s XTRAC excimer laser system. The purchase price of $3.7 million was paid in cash at the time of acquisition. In addition, the Company assumed certain extended warranty service contracts associated with acquired laser system products. Concurrent with the purchase of the net assets, the Company and Ra Medical entered into a services agreement whereby Ra Medical will provide certain transitional services for the Company as it integrates the acquired assets into the Company. The Company determined this transaction represented an asset acquisition as substantially all of the value was in the acquired customer list intangible asset as defined by ASC 805. The purchase price was allocated, on a relative fair value basis, to the acquired inventories, customer lists intangible asset and deferred revenues as follows (in thousands): Consideration: Cash payment $ 3,700 Transaction costs 57 Total consideration $ 3,757 Assets acquired: Inventories $ 284 Customer lists intangible asset 5,314 Total assets acquired 5,598 Liabilities assumed: Deferred revenues – service contracts 1,841 Total liabilities assumed 1,841 Net assets acquired $ 3,757 The customer lists intangible asset is being amortized on a straight-line basis over a period of 12 years. As the transaction was accounted for as an asset acquisition, the Company allocated consideration paid to the inventories acquired and the deferred revenues assumed, with the remaining consideration paid allocated to the customer lists intangible asset, which also equals its estimated fair value. The intangible asset was valued using an excess earnings model. Significant assumptions used in the excess earnings model include estimated customer sales growth, customer attrition and weighted average cost of capital of 3%, 5% and 17%, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The carrying values of cash equivalents, restricted cash, accounts receivable, prepaid expenses and other current assets, and accounts payable on the Company’s consolidated balance sheets approximated their fair values as of December 31, 2022 and 2021 due to their short-term nature. The carrying value of the Company’s current Senior Term Facility approximated its fair value as of December 31, 2022 and 2021 due to its variable interest rate. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventories [Abstract] | |
Inventories | 5. Inventories Inventories consist of the following (in thousands): December 31, 2022 2021 Raw materials and work-in-process $ 5, 418 $ 3,201 Finished goods 129 288 $ 5,547 $ 3,489 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment, net [Abstract] | |
Property and Equipment, net | 6. Property and Equipment, net Property and equipment consist of the following (in thousands): December 31, 2022 2021 Lasers placed-in-service $ 28,790 $ 25,949 Equipment, computer hardware and software 293 238 Furniture and fixtures 235 213 Leasehold improvements 136 254 29,454 26,654 Less: accumulated depreciation and amortization (21,956 ) (19,771 ) $ 7,498 $ 6,883 The Company recorded depreciation and amortization expense of $2.4 million and $2.1 million during the years ended December 31, 2022 and 2021, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 7. Leases The Company recognizes right-of-use assets (“ROU assets”) and operating lease liabilities when it obtains the right to control an asset under a leasing arrangement with an initial term greater than 12 months. The Company adopted the short-term accounting election for leases with a duration of less than one year. The Company leases its facilities and certain IT and office equipment under non-cancellable operating leases. All of the Company’s leasing arrangements are classified as operating leases with remaining lease terms ranging from one Operating lease costs were $0.4 million for each of the years ended December 31, 2022 and 2021. Cash paid for amounts included in the measurement of operating lease liabilities was $0.4 million and $0.5 million for the years ended December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, the weighted average incremental borrowing rate was 8.76% and 9.76%, respectively, and the weighted average remaining lease term was 2.8 years and 2.3 years, respectively. The following table summarizes the Company’s operating lease maturities as of December 31, 2022 (in thousands): Years ending December 31: 2023 $ 426 2024 386 2025 195 2026 81 Total remaining lease payments 1,088 Less: imputed interest (123 ) Total lease liabilities $ 965 With respect to lease and non-lease components, the Company adopted the practical expedient to account for the lessee arrangement as a single lease component. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets and Goodwill [Abstract] | |
Intangible Assets and Goodwill | 8. Intangible Assets and Goodwill Intangible assets consist of the following (in thousands): December 31, 2022 Balance Accumulated Amortization Net Book Value Core technology $ 5,700 $ (4,275 ) $ 1,425 Product technology 12,182 (3,018 ) 9,164 Customer relationships 6,900 (5,175 ) 1,725 Tradenames 1,500 (1,125 ) 375 Pharos customer lists 5,314 (609 ) 4,705 $ 31,596 $ (14,202 ) $ 17,394 December 31, 2021 Balance Accumulated Amortization Net Book Value Core technology $ 5,700 $ (3,705 ) $ 1,995 Product technology 2,000 (2,000 ) — Customer relationships 6,900 (4,485 ) 2,415 Tradenames 1,500 (975 ) 525 Pharos customer lists 5,314 (166 ) 5,148 $ 21,414 $ (11,331 ) $ 10,083 The Company recorded amortization expense of $2.9 million and $1.6 million during the years ended December 31, 2022 and 2021, respectively. The following table summarizes the estimated future amortization expense for the above intangible assets for the next five years (in thousands): Years ending December 31: 2023 $ 2,871 2024 2,871 2025 2,166 2026 1,461 2027 1,461 Goodwill consists of the following (in thousands): December 31, 2022 2021 Dermatology recurring procedures segment $ 7,958 $ 7,958 Dermatology procedures equipment segment 845 845 $ 8,803 $ 8,803 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | 9. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands): December 31, 2022 2021 Warranty obligations $ 136 $ 59 Compensation and related benefits 1,997 2,052 State sales, use and other taxes 3,986 3,697 Professional fees and other 436 569 $ 6,555 $ 6,377 |
Note Payable
Note Payable | 12 Months Ended |
Dec. 31, 2022 | |
Note Payable [Abstract] | |
Note Payable | 10. Note Payable In December 2020, the Company had renewed its $7.3 million loan with a commercial bank pursuant to a one-year Fixed Rate – Term Promissory Note (the “Note”). The Company’s obligations under the Note were secured by an Assignment and Pledge of Time Deposit (“Time Deposit”), under which the Company had pledged to the commercial bank the proceeds of a time deposit account in the amount of the loan and recorded the time deposit and accrued interest as restricted cash on the balance sheet. The principal was due on December 30, 2021 with no penalties for prepayments. The interest rate was fixed at 1.40%. The secured time deposit had a fixed interest rate of 0.40%. The Company repaid the Note with the proceeds from the Time Deposit in September 2021. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Long-term Debt [Abstract] | |
Long-term Debt | 11. Long-Term Debt Senior Term Facility On September 30, 2021, the Company entered into a credit and security agreement with MidCap Financial Trust, also acting as the administrative agent, and the lenders identified therein (“Senior Term Facility”). The Senior Term Facility provides for an $8.0 million senior term loan that was drawn upon by the Company upon executing the agreement. On September 30, 2021, the Company also repaid the outstanding principal and interest for its Note (Note 10) and the Economic Injury Disaster Loan. Borrowings under the Senior Term Facility bear interest at LIBOR (with a LIBOR floor rate of 0.50%) plus 7.50% per year and mature on September 1, 2026, unless terminated earlier. The interest rate was 11.72% and 8.00% as of December 31, 2022 and 2021, respectively. The Company is obligated to make monthly interest-only payments through September 30, 2024. From October 1, 2024 to the date of maturity, the Company will make 24 equal monthly principal payments plus interest, and all borrowings are secured by substantially all of the Company’s assets. The Senior Debt Facility was amended on January 10, 2022 to provide MidCap Financial Trust’s consent to the acquisition of TheraClear (Note 3). In September 2022, the Company amended the facility to transition, upon the cessation of LIBOR, to one-month Secured Overnight Financing Rate (“SOFR”), or such other applicable period, plus 0.10%, with a floor or 0.50%. The Company may voluntarily prepay the outstanding term loan, with such prepayment of at least $5.0 million, at any time upon 30 days’ written notice. Upon prepayment, the Company will be required to pay a prepayment fee equal to (i) 3.00% of the outstanding principal prepaid or required to be prepaid (whichever is greater), if the prepayment is made between 12 months and 24 months after September 30, 2021, (ii) 2.00% of the outstanding principal prepaid or required to be prepaid (whichever is greater), if the prepayment is made between 24 months and 36 months after September 30, 2021, or (iii) 1.00% of the outstanding principal prepaid or required to be prepaid (whichever is greater), if the prepayment is made after 36 months after September 30, 2021 and prior to the maturity date. The Senior Term Facility contains certain customary representations and warranties, affirmative covenants and conditions. The Senior Term Facility also contains a number of negative covenants that subject the Company to certain exceptions and waivers and restrictions, as defined in the agreement. In addition, the Senior Term Facility contains a quarterly financial covenant that requires the Company to have a specified minimum amount of net revenue for the trailing 12-month period, with compliance measured on the last day of each fiscal quarter beginning on September 30, 2021. At December 31, 2022, the minimum net revenue threshold was $28.0 million. The minimum net revenue threshold will increase to $30.0 million by December 31, 2023. At December 31, 2022, the Company was in compliance with all financial covenants within the Senior Term Facility. The Senior Term Facility contains customary indemnification obligations and customary events of default, including, among other things, (i) nonpayment, (ii) breach of warranty, (iii) nonperformance of covenants and obligations, (iv) default on other indebtedness, (v) judgments, (vi) change of control, (vii) bankruptcy and insolvency, (viii) impairment of security, (ix) regulatory matters, (x) failure to remain a publicly traded company, and (xi) material adverse event. Where an event of default arises from certain bankruptcy events, the commitments shall automatically and immediately terminate and the principal of, and interest then outstanding on, all of the loans shall become immediately due and payable. Subject to certain notice requirements and other conditions, upon the occurrence of other events of default, including the occurrence of a condition having or reasonably likely to have a material adverse effect, commitments may be terminated and the principal of, and interest then outstanding on, all of the loans may become immediately due and payable. At December 31, 2022, no event of default had occurred and the Company believed that events or conditions having a material adverse effect, giving rise to an acceleration of any amounts outstanding under the Senior Term Facility, had not occurred and was remote. In connection with entering into the Senior Term Facility, the Company issued an affiliate of the lender a warrant to purchase 373,626 shares of the Company’s common stock at an initial exercise price of $1.82 per share. The warrant is equity classified and is exercisable at any time on or prior to the tenth anniversary of its issue date. The estimated fair value of the warrants was $0.6 million and determined using the Black-Scholes option pricing model. The key assumptions used in the Black-Scholes option pricing model were (i) an expected term of ten years, (ii) expected volatility of 88.6%, (iii) a risk-free rate of 1.50% and (iv) no estimated dividend yield. In addition, the Company incurred third party costs and lender fees of $0.1 million. The proceeds were allocated on a basis that approximates the relative fair value method. The fair value of the warrants and fees incurred were recorded as a debt discount and are being recognized as interest expense over the life of the Senior Term Facility using the effective-interest method. The unamortized debt discount was $0.5 million and $0.7 million as of December 31, 2022 and 2021, respectively. The Company recognized interest expense of $0.9 million during the year ended December 31, 2022, of which $0.2 million was related to the amortization of the debt discount. The Company recognized interest expense of $0.3 million during the year ended December 31, 2021, of which $37 thousand was related to the amortization of the debt discount. Future minimum principal payments at December 31, 2022 are as follows (in thousands): Years ending December 31: 2024 $ 1,000 2025 4,000 2026 3,000 $ 8,000 Paycheck Protection Program Loan On April 22, 2020, the Company closed a loan of $2.0 million (the “PPP Loan”) from a commercial bank, pursuant to the Paycheck Protection Program (“PPP”) administered by the Small Business Administration (the “SBA”) pursuant to the CARES Act. The PPP Loan would have matured on May 1, 2022 and bore an interest rate of 1% per year. Payments of principal and interest of any unforgiven balance were scheduled to commence December 1, 2020, but were deferred until the SBA approved of the forgiveness amount. In the second quarter of 2021, the Company received notification that the PPP Loan had been forgiven. Accordingly, the Company recorded a gain on forgiveness of debt in the amount of the loan of $2.0 million. Economic Injury Disaster Loan On May 22, 2020, the Company secured from the SBA under its Economic Injury Disaster Loan (“EIDL”) assistance program in light of the impact of the COVID-19 pandemic on the Company’s business. The principal amount of the EIDL Loan was up to $0.5 million, with proceeds to be used for working capital purposes, and was collateralized by all the Company’s assets. On June 12, 2020, the Company received these funds from the SBA. Interest accrued at the rate of 3.75% per year. Installment payments, including principal and interest, were originally due monthly beginning March 26, 2021 (12 months from the date of the promissory note) in the amount of $2 thousand. In March 2021, the SBA deferred payments on the EIDL loans by an additional 12 months. The balance of principal and interest was payable over the next 30 years from the date of the promissory note. There were no penalties for prepayment. Based upon guidance issued by the SBA on June 19, 2020, the EIDL Loan was not required to be refinanced by the PPP Loan. On September 30, 2021, the Company repaid this loan in full. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Legal Matters In the ordinary course of business, the Company is routinely a defendant in or party to pending and threatened legal actions and proceedings, including actions brought on behalf of various classes of claimants. These actions and proceedings are generally based on alleged violations of employment, contract and other laws. In some of these actions and proceedings, claims for substantial monetary damages are asserted against the Company. In the ordinary course of business, the Company is also subject to regulatory and governmental examinations, information gathering requests, inquiries, investigations, and threatened legal actions and proceedings. In connection with formal and informal inquiries by federal, state, local and foreign agencies, the Company receives numerous requests, subpoenas and orders for documents, testimony and information in connection with various aspects of its activities. On April 1, 2022, a proposed representative class action under California’s Private Attorneys General Act (“PAGA”) was filed in Superior Court of California, County of San Diego against the Company and an employment agency (“Co-Defendant”) which provided the Company with temporary employees. The complaint alleges various violations of the California Labor Code, including California’s wage and hour laws, relating to current and former non-exempt employees of the Company. The complaint seeks class status and payments for allegedly unpaid compensation and attorney’s fees. In a related matter, the attorneys in this matter and the proposed class representative, in a letter dated March 12, 2022, to the California Labor & Workforce Development Agency made nearly identical claims seeking the right to pursue a PAGA action against the Company and the employment agency. On or about May 16, 2022, the plaintiff filed a First Amended Complaint adding a PAGA claim to the action. On or about June 2, 2022, the plaintiff filed an Application to Dismiss Class and Individual Claim without prejudice, in an attempt to pursue a PAGA only complaint. On or about June 30, 2022, the parties entered into a stipulation to allow the plaintiff to file a Second Amended Complaint to clarify the PAGA claim and to stay the pending action to allow an attempt at resolution through mediation. The mediation was held on February 23, 2023, and the matter was settled on terms agreeable to the Company. The settlement, which would require the Company to pay $0.1 million, is tentative and subject to court approval and the right of individual class members to reject the settlement and proceed on their own. As of December 31, 2022, $0.1 million has been accrued for this matter. Sales and Use Tax Matters The Company records state sales tax collected and remitted for its customers on dermatology procedures equipment sales on a net basis, excluded from revenues. The Company’s sales tax expense that is not presently being collected and remitted for the recurring revenues business is recorded in general and administrative expenses within the consolidated statements of operations. The Company believes its state sales and use tax accruals have been properly recognized such that, if the Company’s arrangements with customers are deemed more likely than not that the Company would not be exempt from sales tax in a particular state, the basis for measurement of the state sales and use tax is calculated in accordance with ASC 405, Liabilities In the ordinary course of business, the Company is, from time to time, subject to audits performed by state taxing authorities. These actions and proceedings are generally based on the position that the arrangements entered into by the Company are subject to sales and use tax rather than exempt from tax under applicable law. Several states have assessed the Company an aggregate of $2.4 million including penalties and interest for the period from March 2014 through April 2020. The Company received notification that an administrative state judge issued an opinion finding in favor of the Company that the sale of XTRAC treatment codes was not taxable as sales tax with respect to that state’s first assessment. This ruling covers $1.5 million of the total $2.4 million of assessments. The relevant taxing authority filed an appeal of the administrative law judge’s finding and, following the submission of legal briefs by both sides and oral argument held in January 2022, on May 6, 2022, the Company received a written decision from the State of New York Tax Appeals Tribunal (“Tribunal”) overturning the favorable sales tax determination of the administrative law judge. The Company filed an appeal of the Tribunal’s decision, and posted the required appellate bond requiring posting cash collateral, with the New York State Appellate Division, and is awaiting for the appellate court to set a briefing and oral argument schedule. The Company is also in another jurisdiction’s administrative process of appeal with respect to the remaining $0.9 million of assessments, and the timing of the process has been impacted by the COVID-19 pandemic. If there is a determination that the true object of the Company’s recurring revenue model is not exempt from sales taxes and is not a prescription medicine, or the Company does not have other defenses where the Company prevails, the Company may be subject to sales taxes in those particular states for previous years and in the future, plus potential interest and penalties. The precise scope, timing and time periods at issue, as well as the final outcomes of the investigations and judicial proceedings, remain uncertain. Accordingly, the Company’s estimate may change from time to time, and actual losses could vary Employee 401(k) Savings Plan The Company sponsors a 401(k) defined contribution retirement savings plan that covers all eligible employees who have met the minimum age and service requirements. Under the plan, eligible employees may contribute a portion of their annual compensation into the plan up to IRS annual limits. The Company has elected to make matching contributions to the plan based on percentage of the employee’s contribution. For each of the years ended December 31, 2022 and 2021, the Company’s contributions to the plan were $0.3 million. Milestone Payments In January 2022, the Company entered into a Development Agreement (the “Development Agreement”) with Theravant Corporation (“Theravant”). Under the Development Agreement, the Company will reimburse Theravant for costs incurred in further developing certain TheraClear technology and other healthcare products and methods for the medical aesthetic marketplace. In connection with the development of three devices, Theravant is eligible to receive $0.5 million upon FDA clearance for each device and $0.5 million upon achievement of certain net revenue targets for each device, aggregating to $3.0 million of potential future milestone payments under the Development Agreement. The Development Agreement has a three-year term, unless terminated sooner by either party, and is being accounted for separately from the TheraClear asset acquisition discussed in Note 3. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 13. Stockholders’ Equity Preferred Stock The Company is authorized to issue preferred stock with such designation, rights and preferences as may be determined from time to time by the Company’s Board of Directors. Other than the limitations on conversions to keep each such holder’s beneficial ownership below 9.99%, the terms of the Series C convertible preferred stock generally bestow the same rights to each holder as such holder would receive if they were common stock shareholders and are not redeemable by the holders, except that the Series C convertible preferred stock shares do not have voting rights. Each share of Series C convertible preferred stock has a stated value of $1,000 and is convertible into shares of common stock at a conversion price equal to $2.69. No preferred shares were outstanding as of December 31, 2022 and 2021. Common Stock The Company issued 358,367 shares to Theravant as consideration for the TheraClear asset acquisition (Note 3) during the year ended December 31, 2022. The Company issued 329,076 shares upon the exercise of options and 234,558 shares upon the vesting of restricted stock during the year ended December 31, 2021. In October 2021, the Company entered into an equity distribution agreement under which the Company may sell up to $11.0 million of its shares of common stock in registered “at-the-market” offerings. The shares will be offered at prevailing market prices, and the Company will pay commissions of up to 3.0% of the gross proceeds from the sale of shares sold through the Company’s agent, which may act as an agent and/or principal. The Company has no obligation to sell any shares under this agreement and may, at any time, suspend solicitations under this agreement. No shares of the Company’s common stock have been sold under this distribution agreement during fiscal 2022 or 2021 . Common Stock Warrants In September 2021 and in connection with entering into the Company’s Senior Term Facility (Note 11), the Company issued a warrant to purchase 373,626 shares of the Company’s common stock at an initial exercise price of $1.82 per share. The warrant is equity classified and is exercisable at any time on or prior to the tenth anniversary of its issue date. As of December 31, 2022, the warrant remains outstanding in its entirety. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 14. Stock-Based Compensation The Company’s 2016 Omnibus Incentive Stock Plan (“2016 Plan”), as amended, has reserved up to 7,832,651 shares of common stock for future issuance. As of December 31, 2022, there were 3,193,706 shares of common stock remaining available for issuance for awards under the 2016 Plan. The Company measures share‑based awards at their grant‑date fair value and records compensation expense on a straight‑line basis over the requisite service period of the awards. The Company recorded share‑based compensation expense of $1.3 million and $1.6 million (for all awards and modifications, if any) for the years ended December 31, 2022 and 2021, respectively, within general and administrative expenses in the accompanying consolidated statements of operations. During the year ended December 31, 2022, the Company also recorded share-based compensation expense of $0.2 million within selling and marketing expenses in the accompanying consolidated statement of operations. On March 30, 2022, the Company granted 160,000 stock-based options to the Chief Executive Officer. The vesting of these awards is contingent upon meeting one or more financial goals (a performance condition) or a common stock share price (a market condition). The fair value of stock-based awards is determined at the date of grant. Stock-based compensation expense is recorded ratably for market condition awards during the requisite service period and is not reversed, except for forfeitures, at the vesting date regardless of whether the market condition is met. Stock-based compensation expense for performance condition awards is re-evaluated at each reporting period based on the probability of the achievement of the goal. As of December 31, 2022, the market condition was not met and 60,000 of the stock-based options were forfeited. In connection with the separation of the Company’s Chief Executive Officer in February 2021, the Company accelerated the vesting of all unvested options to purchase shares of common stock and extended the period to exercise to August 22, 2021. This acceleration and the extension of the period to vest met the modification criteria for accounting purposes. For these modifications, the Company calculated and recorded additional compensation expense of $0.2 million. Stock Options The following table summarizes stock option activity for the years ended December 31, 2022 and 2021: Number of Shares under Option Plan Weighted- Average Exercise Price per Option Weighted- Average Remaining Contractual Life (in years) Outstanding at January 1, 2021 5,292,888 $ 1.87 Granted 2,463,714 1.70 Exercised (1,557,628 ) 1.12 Forfeited and expired (2,260,361 ) 2.10 Outstanding at December 31, 2021 3,938,613 $ 1.90 7.91 Granted 1,000,000 1.41 Exercised (15,000 ) 1.29 Forfeited and expired (448,899 ) 2.63 Outstanding at December 31, 2022 4,474,714 $ 1.72 8.02 Exercisable at December 31, 2022 2,202,792 $ 1.88 7.28 The weighted‑average grant date fair value of options granted was $1.06 and $1.27 per share during the years ended December 31, 2022 and 2021, respectively. As of December 31, 2022, the total unrecognized compensation expense related to unvested stock option awards was $2.3 million, which the Company expects to recognize over a weighted‑average period of approximately 2.2 years. There was no aggregate intrinsic value of options outstanding and options exercisable at December 31, 2022 or of options that were exercised during the year ended December 31, 2022. The aggregate intrinsic value of options outstanding and options exercisable at December 31, 2021 was $26 thousand and $4 thousand, respectively, and the aggregate intrinsic value of options that were exercised during the year ended December 31, 2021 was $0.5 million. During the year ended December 31, 2021, there were 1,557,628 options that were exercised on a cashless basis at $1.12 per share resulting in the net issuance of 329,076 shares of common stock. The fair value of options is estimated using the Black Scholes option pricing model which takes into account inputs such as the exercise price, the value of the underlying common stock at the grant date, expected term, expected volatility, risk free interest rate and dividend yield. The fair value of each grant of options during the year ended December 31, 2022 and 2021 was determined using the methods and assumptions discussed below. ● The expected term of employee options is based on the observed and expected time to full-vesting, forfeiture and exercise. Groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. Options expire up to a maximum of ten years from the date of grant. ● The expected volatility is based on historical volatility of the Company’s common stock. ● The risk-free interest rate is based on the interest rate payable on U.S. Treasury securities in effect at the time of grant for a period that is commensurate with the assumed expected term. ● The expected dividend yield is none because the Company has not historically paid and does not expect for the foreseeable future to pay a dividend on its ordinary shares. For the years ended December 31, 2022 and 2021, the grant date fair value of all option grants was estimated at the time of grant using the Black-Scholes option-pricing model using the following weighted average assumptions: Year Ended December 31, 2022 2021 Expected term (in years) 6.10 5.96 Expected volatility 89.57 % 90.03 % Risk-free rate 2.51 % 1.08 % Dividend rate 0.00 % 0.00 % Restricted Stock Units Restricted stock units have been issued to certain board members. Restricted stock units unvested are summarized in the following table: Number of Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2021 — $ — Granted 290,861 1.44 Vested (146,364 ) 1.42 Forfeited and expired (53,957 ) 1.45 Unvested at December 31, 2021 90,540 $ 1.45 Granted 187,464 0.96 Vested (158,407 ) 1.26 Forfeited and expired — — Unvested at December 31, 2022 119,597 $ 0.93 As of December 31, 2022, the total unrecognized compensation expense related to unvested restricted stock units was less than $0.1 million, which the Company expects to recognize over a weighted‑average period of approximately 0.5 years |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | 15. Income Taxes Income tax expense consists of the following (in thousands): Year Ended December 31, 2022 2021 Current: Federal $ — $ — State 23 22 23 22 Deferred: Federal 23 23 State 17 (11 ) 40 12 Income tax expense $ 63 $ 34 Deferred tax assets and liabilities are determined based on the differences between the consolidated financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect for years in which differences are expected to reverse Significant components of the Company’s deferred tax liability for federal income taxes consisted of the following (in thousands): December 31, Deferred tax assets (liabilities) 2022 2021 Net operating loss carryforwards $ 45,077 $ 46,596 Intangible assets 1,697 1,039 Inventory 57 26 Reserves and accrued expenses 1,431 1,230 Property and equipment 1,111 441 Stock-based compensation 548 458 Operating lease right-of-use assets (242 ) (159 ) Goodwill (1,095 ) (950 ) Operating lease liabilities 240 177 481(a) adjustment (333 ) (667 ) Interest expense limitation carryover 208 — Less: valuation allowance (49,005 ) (48,457 ) Net deferred tax liability $ (306 ) $ (266 ) In assessing the need for a valuation allowance, management must determine that there will be sufficient taxable income to allow for the realization of deferred tax assets. Based upon the historical and anticipated future losses, management has determined that the deferred tax assets do not meet the more likely than not threshold for realizability. Accordingly, a nearly full valuation allowance has been recorded against the Company’s deferred tax assets as of December 31, 2022 and 2021. The valuation allowance increased by $0.5 million and $0.1 million during the years ended December 31, 2022 and 2021, respectively. The Company does not have unrecognized tax benefits as of December 31, 2022 or 2021. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company had net operating loss (“NOL”) carryforwards for federal and state income tax purposes as follows (in thousands): December 31, 2022 2021 Federal $ 198,144 $ 204,314 State $ 60,784 $ 60,654 The NOL carryforwards generated prior to 2018 began to expire for federal income tax purposes and begin expiring in 2030 for state income tax purposes. Federal and many state NOLs generated in 2018 and into the future now have an indefinite life. The NOL carryforwards are subject to review and possible adjustment by the Internal Revenue Service and state tax authorities. NOL carryforwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant stockholders over a three-year period in excess of 50%, as defined under Sections 382 and 383 of the Internal Revenue Code, respectively, as well as similar state provisions. This could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. To date, the Company has not performed an analysis to determine whether or not ownership changes have occurred since inception. A reconciliation of income tax expense at the statutory federal income tax rate and income taxes as reflected in the consolidated financial statements is as follows: December 31, 2022 2021 Federal tax expense at statutory rate 21.00 % 21.00 % State tax, net of federal benefit (0.58 )% (0.33 )% Permanent differences (2.23 )% 8.90 % Other difference and true ups (11.20 )% (25.27 )% Change in valuation allowance (8.14 )% (5.57 )% Tax provision (1.15 )% (1.27 )% On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (“IRA”). The IRA contains certain tax measures, including a corporate alternative minimum tax of 15% on some large corporations and an excise tax of 1% on corporate stock repurchases. The Company is currently evaluating the various provisions of the IRA and does not anticipate a material impact on its consolidated financial statements. |
Business and Geographical Repor
Business and Geographical Reporting Segments | 12 Months Ended |
Dec. 31, 2022 | |
Business and Geographical Reporting Segments [Abstract] | |
Business and Geographical Reporting Segments | 16. Business and Geographical Reporting Segments The Company organized its business into two 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 usage of its equipment by dermatologists to perform XTRAC procedures. The Dermatology Procedures Equipment segment generates revenues from the sale of equipment, such as lasers and lamp products. Management reviews financial information presented on an operating segment basis for the purposes of making certain operating decisions and assessing financial performance. 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) is also not allocated to the operating segments. The following tables reflect results of operations from our business segments for the periods indicated below (in thousands, except gross profit %): Year Ended December 31, 2022 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Revenues $ 23,025 $ 13,136 $ 36,161 Cost of revenues 8,371 6,022 14,393 Gross profit 14,654 7,114 21,768 Gross profit % 63.6 % 54.2 % 60.2 % Allocated expenses: Engineering and product development 672 357 1,029 Selling and marketing 13,503 1,798 15,301 Unallocated expenses — — 10,087 14,175 2,155 26,417 Income (loss) from operations 479 4,959 (4,649 ) Interest expense — — (926 ) Interest income — — 89 Income (loss) before income tax expense $ 479 $ 4,959 $ (5,486 ) Year Ended December 31, 2021 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Revenues $ 22,528 $ 7,449 $ 29,977 Cost of revenues 6,418 3,709 10,127 Gross profit 16,110 3,740 19,850 Gross profit % 71.5 % 50.2 % 66.2 % Allocated expenses: Engineering and product development 1,251 183 1,434 Selling and marketing 12,257 849 13,106 Unallocated expenses — — 9,712 13,508 1,032 24,252 Income (loss) from operations 2,602 2,708 (4,402 ) Interest expense — — (314 ) Interest income — — 15 Gain on debt extinguishment — — 2,029 Income (loss) before income tax expense $ 2,602 $ 2,708 $ (2,672 ) For the years ended December 31, 2022 and 2021, depreciation and amortization by reportable segment were as follows (in thousands): Year Ended December 31, 2022 2021 Dermatology recurring procedures $ 4,421 $ 3,334 Dermatology procedures equipment 857 384 Unallocated expenses 15 18 Consolidated total $ 5,293 $ 3,736 The following tables present the Company’s revenue disaggregated by geographical region for the years ended December 31, 2022 and 2021 (in thousands). Domestic refers to revenue from customers based in the United States, and foreign revenue is derived from the Company’s distributors primarily in Asia. Year Ended December 31, 2022 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Domestic $ 21,585 $ 2,396 $ 23,981 China 195 4,556 4,751 Korea 888 2,828 3,716 Other foreign 357 3,356 3,713 Total $ 23,025 $ 13,136 $ 36,161 Year Ended December 31, 2021 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Domestic $ 21,215 $ 1,982 $ 23,197 China — 931 931 Korea 941 2,412 3,353 Other foreign 372 2,124 2,496 Total $ 22,528 $ 7,449 $ 29,977 As of December 31, 2022 and 2021, total assets by reportable segment were as follows (in thousands): December 31, 2022 2021 Dermatology recurring procedures $ 37,230 $ 30,897 Dermatology procedures equipment 7,890 2,662 Other unallocated assets 7,152 13,034 Consolidated total $ 52,272 $ 46,593 Long-lived assets of $0.6 million and $1.0 million were located in international markets, primarily Korea and Japan, |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events On October 26, 2022, the Company had received written notification from the NASDAQ Stock Market (“Nasdaq”) that the closing bid price of its common stock had been below the minimum $1.00 per share for the previous 30 consecutive business days and that the Company, therefore, was not in compliance with the requirements for continued listing on the NASDAQ Capital Market. On February 27, 2023, the Company received written notice from Nasdaq that it had regained compliance with the listing requirements with respect to its minimum bid price, and the Company will continue to trade on Nasdaq. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements are presented in U.S. dollars and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and as amended by Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”). The accompanying consolidated financial statements include the accounts of the Company and Photomedex India Private Limited, its wholly-owned subsidiary in India. No operating activities have occurred within the Company’s subsidiary as of and during the years ended December 31, 2022 and 2021. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and reported amounts of revenue and expenses during the reporting period. The Company’s significant estimates and judgments involve revenue recognition with respect to deferred revenues and the contract term and valuation allowances of accounts receivable, inputs used when evaluating goodwill for impairment, inputs used in the valuation of acquired intangible assets and contingent consideration, state sales and use tax accruals, the estimated useful lives of intangible assets, and the valuation allowance related to deferred tax assets. Actual results could differ from those estimates. |
Concentrations of Credit Risk and Major Customers | Concentrations of Credit Risk and Major Customers The Company’s cash is held on deposit in demand accounts at a large financial institution in amounts in excess of the Federal Deposit Insurance Corporation, or FDIC, insurance coverage limit of $0.3 million per depositor, per FDIC-insured bank, per ownership category. Management has reviewed the financial statements of this institution and believes it has sufficient assets and liquidity to conduct its operations in the ordinary course of business with little credit risk to the Company. Financial instruments that potentially subject the Company to concentrations of credit risk principally consist of cash equivalents and accounts receivable. The Company limits its credit risk associated with cash equivalents by placing investments in highly-rated money market funds. The Company limits its credit risk with respect to accounts receivable by performing credit evaluations when deemed necessary, but it does not require collateral to secure amounts owed by its customers. The Company had two customers and one customer, international distributors, from which it earns dermatology recurring procedures and dermatology procedures equipment revenues, that accounted for more than 10% of the Company’s revenues for the years ended December 31, 2022 and 2021, respectively. Revenues from these customers were $8.5 million and $3.4 million, or 23% and 11%, of total net revenues during the years ended December 31, 2022 and 2021, respectively. Accounts receivable associated with these customers was $0.5 million and 11% of net accounts receivable as of December 31, 2022, and less than 10% of total accounts receivable as of December 31, 2021. No other customer represented more than 10% of total accounts receivable as of December 31, 2022 or 2021. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly-liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of December 31, 2022 and 2021, cash equivalents consisted of credit card transactions with settlement terms of less than five days. |
Restricted Cash | Restricted Cash As discussed more fully in Note 12, an administrative state judge in the State of New York issued an opinion in January 2021 finding in favor of the Company that the sale of XTRAC treatment codes was not taxable as sales tax with respect to that state’s first assessment. The relevant taxing authority filed an appeal of the administrative law judge’s finding and, following the submission of legal briefs by both sides and oral argument held in January 2022, on May 6, 2022, the Company received a written decision from the State of New York Tax Appeals Tribunal (“Tribunal”) overturning the favorable sales tax determination of the administrative law judge. The Company filed an appeal of the Tribunal’s decision, and posted the required appellate bond requiring the posting of cash collateral, with the New York State Appellate Division, and is awaiting for the appellate court to set a briefing and oral argument schedule. The cash collateral is recorded as restricted cash on the consolidated balance sheet as of December 31, 2022. The following table provides a reconciliation of the components of cash, cash equivalents and restricted cash reported in the Company’s consolidated balance sheets to the total of the amount presented in the consolidated statements of cash flows (in thousands): December 31, 2022 2021 Cash and cash equivalents $ 5,434 $ 12,586 Restricted cash 1,361 — Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows $ 6,795 $ 12,586 |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable primarily relates to amounts due from customers, which are typically due within 30 to 90 days from invoice date. The Company provides credit to its customers in the normal course of business and maintains allowances for potential credit losses. The Company does not require collateral or other security for accounts receivable. The Company maintains allowances for doubtful accounts for estimated losses resulting from amounts deemed to be uncollectible from its customers. These allowances are for specific amounts on certain customer accounts based on facts and circumstances determined on a case-by-case basis. The Company writes off accounts receivable when they are considered uncollectible, and payments subsequently received on such receivables are credited to bad debt expense. The Company does not recognize interest accruing on accounts receivable past due. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined based on purchased cost for raw materials and all production cost related to the laser manufacturing process (labor and indirect manufacturing cost, including sub-contracted work components) for work-in-process and finished goods is classified as inventory. For the Company’s products, cost is determined on the first-in, first-out method. Work-in-process is immaterial, given the typically short manufacturing cycle and therefore , The Company’s equipment for the treatment of skin disorders (e.g. the XTRAC) will either (i) be placed in a physician’s office and remain the property of the Company (at which date such equipment is transferred to property and equipment) or (ii) be sold to distributors or physicians directly. The cost to build a laser, whether for sale or for placement, is accumulated in inventory. Reserves for slow - |
Property and Equipment, net | Property and Equipment, net Property and equipment are recorded at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred and costs of improvements and renewals are capitalized. Depreciation and amortization are recognized using the straight-line method based on the estimated useful lives of the related assets. The Company uses an estimated useful life of three years for computers, hardware and software, five years for machinery and equipment and for furniture and fixtures and the lesser of the useful life or lease term for leasehold improvements. |
Intangible Assets | Intangible Assets Intangible assets consist of core technology, product technology, customer relationships, trademarks and distribution rights. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from three |
Goodwill | Goodwill Goodwill is the excess of the cost of an acquired entity over the net amounts assigned to tangible and intangible assets acquired and liabilities assumed. Goodwill is not amortized, but is subject to an annual impairment test. The Company has two reporting units and goodwill is allocated to the reporting units. The Company performs its goodwill impairment test on an annual basis in the quarter of each fiscal year or more frequently if changes in circumstances or the occurrence of events suggest that an impairment exists. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the implied fair value of the reporting unit’s goodwill is less than the carrying value of the reporting unit’s goodwill. The Company’s annual goodwill impairment test resulted in no impairment charges during the years ended December and |
Impairment of Long-Lived Assets and Intangibles | Impairment of Long-Lived Assets and Intangibles The Company reviews its long-lived assets and intangible assets subject to amortization for impairment whenever events or changes in circumstances indicate the carrying amount of an asset group may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset group to future net cash flows expected to be generated by the asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset group exceeds the fair value of the asset group, less costs to sell. The Company did not record any charges related to asset impairment during the years ended December 31, 2022 and 2021. |
Fair Value Measurements | Fair Value Measurements The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy that requires the use of observable inputs and minimizes the use of unobservable inputs. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1 – quoted market prices in active markets for identical assets or liabilities. • Level 2 – observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 – inputs that are generally unobservable and typically reflect the Company’s estimate of assumptions that market participants would use in pricing the asset or liability. |
Accrued Warranty Costs | Accrued Warranty Costs The Company offers a standard warranty on product sales generally for a one three The activity in the warranty accrual during the years ended December 31, 2022 and 2021 is summarized as follows (in thousands): December 31, 2022 2021 Balance, beginning of year $ 79 $ 113 Additions 246 71 Expirations and claims satisfied (118 ) (105 ) Total 207 79 Less current portion within accrued expenses and other current liabilities (136 ) (59 ) Balance within deferred revenues and other liabilities $ 71 $ 20 |
Debt Issuance Costs | Debt Issuance Costs The Company capitalizes direct costs incurred to obtain debt financing and amortizes these costs to interest expense over the term of the debt using the effective interest method. These costs are recorded as a debt discount and are netted against the related debt on the Company’s consolidated balance sheets. |
Revenue Recognition | Revenue Recognition Revenues from the Company’s dermatology recurring procedures customers are earned by providing physicians with its laser products and charging the physicians a fee for a fixed number of treatment sessions or a fixed fee for a specified period of time not to exceed an agreed upon number of treatments; if that number is exceeded additional fees will have to be paid. The placement of the laser products at physician locations represents embedded leases which are accounted for as operating leases. For the lasers placed-in service under these arrangements, the terms of the domestic arrangements are generally 36 months with automatic one-year renewals and include a termination clause that can be effected at any time by either party with 30 to 60 day notice. Amounts paid are generally non-refundable. Sales of access codes for a fixed number of treatment sessions are considered variable treatment code payments and are recognized as revenue over the estimated usage period of the agreed upon number of treatments. Sales of access codes for a specified period of time are recognized as revenue on a straight-line basis as the lasers are being used over the term period specified in the agreement. Variable treatment code payments that will be paid only if the customer exceeds the agreed upon number of treatments are recognized only when such treatments are being exceeded and used. Internationally, the Company generally sells access codes for a fixed amount on a monthly basis to its distributors and the terms are generally 48 months, with termination in the event of the customers’ failure to remit payments timely, and include a potential buy-out at the end of the term of the contract. Currently, this is the only foreign recurring revenue. Prepaid amounts recorded in deferred revenue and customer deposits recorded in accounts payable are recognized as revenue over the lease term in the patterns described above. Pricing is fixed with the customer. With respect to lease and non-lease components, the Company adopted the practical expedient to account for the arrangement as a single lease component. Revenues from the Company’s dermatology procedures equipment are recognized when control of the promised goods or services is transferred to its customers or distributors, in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. Accordingly, the Company determines revenue recognition through the following steps: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, performance obligations are satisfied. Accounting for the Company’s contracts involves the use of significant judgments and estimates including determining the separate performance obligations, allocating the transaction price to the different performance obligations and determining the method to measure the entity’s performance toward satisfaction of performance obligations that most faithfully depicts when control is transferred to the customer. The Company allocates the contract’s transaction price to each performance obligation using the Company’s best estimate of the standalone selling price for each distinct good or service in the contract. The Company maximizes the use of observable inputs by beginning with average historical contractual selling prices and adjusting as necessary and on a consistent and rational basis for other inputs such as pricing trends, customer types, volumes and changing cost and margins. Revenues from dermatology procedures equipment are recognized when control of the promised products is transferred to either the Company’s distributors or end-user customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products (the transaction price). Control transfers to the customer at a point in time. To indicate the transfer of control, the Company must have a present right to payment and legal title must have passed to the customer. The Company ships most of its products FOB shipping point, and as such, the Company primarily transfers control and records revenue upon shipment. From time to time the Company will grant certain customers, for example governmental customers, FOB destination terms, and the transfer of control for revenue recognition occurs upon receipt. The Company has elected to recognize the cost of freight and shipping activities as fulfillment costs. Amounts billed to customers for shipping and handling are included as part of the transaction price and recognized as revenue when control of the underlying goods are transferred to the customer. The related shipping and freight charges incurred by the Company are included in cost of revenues. The following table presents the Company’s net revenues disaggregated by dermatology recurring procedures and dermatology procedures equipment (in thousands): Year Ended December 2022 2021 Dermatology recurring procedures $ 23,025 $ 22,528 Dermatology procedures equipment 13,136 7,449 Total net revenues $ 36,161 $ 29,977 The following table summarizes the Company’s expected future undiscounted fixed treatment code payments from dermatology recurring procedures (in thousands): Years ending December 31: 2023 $ 1,207 2024 975 2025 384 2026 166 2027 4 $ 2,736 Remaining performance obligations related to ASC 606 represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year, which are fully or partially unsatisfied at the end of the period. Remaining performance obligations include the potential obligation to perform under extended warranties and service contracts leases. As of December 31, 2022 and 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $0.6 million and $1.3 million million million one The decrease in remaining performance obligations from December 31, 2021 to December 31, 2022 is due to the recognition of deferred service revenue associated with assumed service contracts from Ra Medical (see Note 3). Contract liabilities primarily relate to extended warranties and service contracts million million million million With respect to contract acquisition costs, the Company applied the practical expedient and expenses these costs immediately. |
Engineering and Product Development | Engineering and Product Development Engineering and product development costs associated with research, new product development and product redesign are expensed as incurred. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and included in selling and marketing expenses within the Company’s consolidated statement of operations. The Company recognized advertising costs of $1.6 million during each of the years ended December 31, 2022 and 2021. |
Stock-Based Compensation | Stock-Based Compensation The Company measures share-based awards at their grant-date fair value and records compensation expense on a straight-line basis over the requisite service period of the awards. Estimating the fair value of share-based awards requires the input of subjective assumptions, including the expected life of the options and stock price volatility. The Company accounts for forfeitures of stock option awards as they occur. The estimated fair value of restricted stock awards is equal to the Company’s common stock price at the grant date. The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in estimating the fair value of stock-option awards represent management’s estimate and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, share-based compensation expense could be materially different for future awards. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities, as well as on net operating loss carryforwards, and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Any resulting net deferred tax assets are evaluated for recoverability and, accordingly, a valuation allowance is provided when it is not more likely than not that all or some portion of the deferred tax asset will be realized. The Company recognizes the tax effects of uncertain tax positions only if the position is “more-likely-than-not” to be sustained were it to be challenged by a taxing authority. The assessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. If an uncertain tax position meets the “more-likely-than-not” threshold, the largest amount of tax benefit that is more than 50% likely to be recognized upon ultimate settlement with the taxing authority is recorded. The Company has no uncertain tax positions as of December 31, 2022. The Company includes interest and penalties related to income tax obligations within income tax expense. The Company’s tax years are still under open status from 2019 to present. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share of common stock is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted loss per share of common stock includes the effect, if any, from the potential exercise or conversion of securities such as unvested restricted stock awards, stock options and warrants for common stock which would result in the issuance of incremental shares of common stock. For diluted net loss per share, the weighted-average number of shares of common stock is the same as for basic net loss per share due to the fact that when a net loss exists, dilutive securities are not included in the calculation as the impact is anti-dilutive. The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive: December 31, 2022 2021 Restricted stock units 278,004 90,540 Stock options 4,474,714 3,938,613 Common stock warrants 373,626 373,626 5,126,344 4,402,779 |
Accounting Pronouncements Recently Adopted and Recent Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Recently Adopted In May 2021, the FASB issued ASU 2021-04, Earnings per Share (Topic 260), Debt – Modifications and Extinguishments (Subtopic 470-50), Compensation – Stock Compensation (Topic 718), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges or Freestanding Equity-Classified Written Call Options Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instrume nts In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivative and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity ’ own equity. Specifically, the ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. In addition, the ASU removes certain settlement conditions that are required for equity contracts to qualify for it and simplifies the diluted earnings per share (EPS) calculations in certain areas. The guidance is effective for fiscal years beginning after December 15, 2023 and early adoption is permitted. The Company does not currently engage in contracts covered by this guidance and does not believe it will have a material effect on the Company’s consolidated financial statements, but it could in the future. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Restricted Cash | The following table provides a reconciliation of the components of cash, cash equivalents and restricted cash reported in the Company’s consolidated balance sheets to the total of the amount presented in the consolidated statements of cash flows (in thousands): December 31, 2022 2021 Cash and cash equivalents $ 5,434 $ 12,586 Restricted cash 1,361 — Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows $ 6,795 $ 12,586 |
Accrued Warranty Costs Activity | The activity in the warranty accrual during the years ended December 31, 2022 and 2021 is summarized as follows (in thousands): December 31, 2022 2021 Balance, beginning of year $ 79 $ 113 Additions 246 71 Expirations and claims satisfied (118 ) (105 ) Total 207 79 Less current portion within accrued expenses and other current liabilities (136 ) (59 ) Balance within deferred revenues and other liabilities $ 71 $ 20 |
Disaggregation of Revenue | The following table presents the Company’s net revenues disaggregated by dermatology recurring procedures and dermatology procedures equipment (in thousands): Year Ended December 2022 2021 Dermatology recurring procedures $ 23,025 $ 22,528 Dermatology procedures equipment 13,136 7,449 Total net revenues $ 36,161 $ 29,977 |
Future Undiscounted Fixed Treatment Code Payments | The following table summarizes the Company’s expected future undiscounted fixed treatment code payments from dermatology recurring procedures (in thousands): Years ending December 31: 2023 $ 1,207 2024 975 2025 384 2026 166 2027 4 $ 2,736 |
Antidilutive Securities Excluded from Computation of Net Loss Per Share | The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive: December 31, 2022 2021 Restricted stock units 278,004 90,540 Stock options 4,474,714 3,938,613 Common stock warrants 373,626 373,626 5,126,344 4,402,779 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
TheraClear Corporation [Member] | |
Asset Acquisition [Line Items] | |
Purchase Price Allocation | The purchase price was allocated, on a relative fair value basis, to the technology intangible asset and acquired inventories as follows (in thousands): Consideration: Cash payment $ 500 Common stock issued 500 Transaction costs 131 Contingent consideration 9,122 Total consideration $ 10,253 Assets acquired: Technology intangible asset $ 10,182 Inventories 71 Total assets acquired $ 10,253 |
RA Medical Systems, Inc. [Member] | |
Asset Acquisition [Line Items] | |
Purchase Price Allocation | The purchase price was allocated, on a relative fair value basis, to the acquired inventories, customer lists intangible asset and deferred revenues as follows (in thousands): Consideration: Cash payment $ 3,700 Transaction costs 57 Total consideration $ 3,757 Assets acquired: Inventories $ 284 Customer lists intangible asset 5,314 Total assets acquired 5,598 Liabilities assumed: Deferred revenues – service contracts 1,841 Total liabilities assumed 1,841 Net assets acquired $ 3,757 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories [Abstract] | |
Inventories | Inventories consist of the following (in thousands): December 31, 2022 2021 Raw materials and work-in-process $ 5, 418 $ 3,201 Finished goods 129 288 $ 5,547 $ 3,489 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment, net [Abstract] | |
Components of Property and Equipment | Property and equipment consist of the following (in thousands): December 31, 2022 2021 Lasers placed-in-service $ 28,790 $ 25,949 Equipment, computer hardware and software 293 238 Furniture and fixtures 235 213 Leasehold improvements 136 254 29,454 26,654 Less: accumulated depreciation and amortization (21,956 ) (19,771 ) $ 7,498 $ 6,883 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Operating Lease Maturities | The following table summarizes the Company’s operating lease maturities as of December 31, 2022 (in thousands): Years ending December 31: 2023 $ 426 2024 386 2025 195 2026 81 Total remaining lease payments 1,088 Less: imputed interest (123 ) Total lease liabilities $ 965 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets and Goodwill [Abstract] | |
Components of Intangible Assets | Intangible assets consist of the following (in thousands): December 31, 2022 Balance Accumulated Amortization Net Book Value Core technology $ 5,700 $ (4,275 ) $ 1,425 Product technology 12,182 (3,018 ) 9,164 Customer relationships 6,900 (5,175 ) 1,725 Tradenames 1,500 (1,125 ) 375 Pharos customer lists 5,314 (609 ) 4,705 $ 31,596 $ (14,202 ) $ 17,394 December 31, 2021 Balance Accumulated Amortization Net Book Value Core technology $ 5,700 $ (3,705 ) $ 1,995 Product technology 2,000 (2,000 ) — Customer relationships 6,900 (4,485 ) 2,415 Tradenames 1,500 (975 ) 525 Pharos customer lists 5,314 (166 ) 5,148 $ 21,414 $ (11,331 ) $ 10,083 |
Estimated Future Amortization Expense for Intangible Assets | The following table summarizes the estimated future amortization expense for the above intangible assets for the next five years (in thousands): Years ending December 31: 2023 $ 2,871 2024 2,871 2025 2,166 2026 1,461 2027 1,461 |
Components of Goodwill | Goodwill consists of the following (in thousands): December 31, 2022 2021 Dermatology recurring procedures segment $ 7,958 $ 7,958 Dermatology procedures equipment segment 845 845 $ 8,803 $ 8,803 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands): December 31, 2022 2021 Warranty obligations $ 136 $ 59 Compensation and related benefits 1,997 2,052 State sales, use and other taxes 3,986 3,697 Professional fees and other 436 569 $ 6,555 $ 6,377 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-term Debt [Abstract] | |
Future Payments for Long-term Debt | Future minimum principal payments at December 31, 2022 are as follows (in thousands): Years ending December 31: 2024 $ 1,000 2025 4,000 2026 3,000 $ 8,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation [Abstract] | |
Stock Option Activity | The following table summarizes stock option activity for the years ended December 31, 2022 and 2021: Number of Shares under Option Plan Weighted- Average Exercise Price per Option Weighted- Average Remaining Contractual Life (in years) Outstanding at January 1, 2021 5,292,888 $ 1.87 Granted 2,463,714 1.70 Exercised (1,557,628 ) 1.12 Forfeited and expired (2,260,361 ) 2.10 Outstanding at December 31, 2021 3,938,613 $ 1.90 7.91 Granted 1,000,000 1.41 Exercised (15,000 ) 1.29 Forfeited and expired (448,899 ) 2.63 Outstanding at December 31, 2022 4,474,714 $ 1.72 8.02 Exercisable at December 31, 2022 2,202,792 $ 1.88 7.28 |
Weighted Average Assumption Used for Grant Date Fair Value of Option Grants | For the years ended December 31, 2022 and 2021, the grant date fair value of all option grants was estimated at the time of grant using the Black-Scholes option-pricing model using the following weighted average assumptions: Year Ended December 31, 2022 2021 Expected term (in years) 6.10 5.96 Expected volatility 89.57 % 90.03 % Risk-free rate 2.51 % 1.08 % Dividend rate 0.00 % 0.00 % |
Summary of Restricted Stock Unit Unvested | Restricted stock units have been issued to certain board members. Restricted stock units unvested are summarized in the following table: Number of Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2021 — $ — Granted 290,861 1.44 Vested (146,364 ) 1.42 Forfeited and expired (53,957 ) 1.45 Unvested at December 31, 2021 90,540 $ 1.45 Granted 187,464 0.96 Vested (158,407 ) 1.26 Forfeited and expired — — Unvested at December 31, 2022 119,597 $ 0.93 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Components of Income Tax Expense | Income tax expense consists of the following (in thousands): Year Ended December 31, 2022 2021 Current: Federal $ — $ — State 23 22 23 22 Deferred: Federal 23 23 State 17 (11 ) 40 12 Income tax expense $ 63 $ 34 |
Components of Deferred Tax Liability for Federal Income Taxes | Significant components of the Company’s deferred tax liability for federal income taxes consisted of the following (in thousands): December 31, Deferred tax assets (liabilities) 2022 2021 Net operating loss carryforwards $ 45,077 $ 46,596 Intangible assets 1,697 1,039 Inventory 57 26 Reserves and accrued expenses 1,431 1,230 Property and equipment 1,111 441 Stock-based compensation 548 458 Operating lease right-of-use assets (242 ) (159 ) Goodwill (1,095 ) (950 ) Operating lease liabilities 240 177 481(a) adjustment (333 ) (667 ) Interest expense limitation carryover 208 — Less: valuation allowance (49,005 ) (48,457 ) Net deferred tax liability $ (306 ) $ (266 ) |
Net Operating Loss Carryforwards | The Company had net operating loss (“NOL”) carryforwards for federal and state income tax purposes as follows (in thousands): December 31, 2022 2021 Federal $ 198,144 $ 204,314 State $ 60,784 $ 60,654 |
Reconciliation of Income Tax Expense | A reconciliation of income tax expense at the statutory federal income tax rate and income taxes as reflected in the consolidated financial statements is as follows: December 31, 2022 2021 Federal tax expense at statutory rate 21.00 % 21.00 % State tax, net of federal benefit (0.58 )% (0.33 )% Permanent differences (2.23 )% 8.90 % Other difference and true ups (11.20 )% (25.27 )% Change in valuation allowance (8.14 )% (5.57 )% Tax provision (1.15 )% (1.27 )% |
Business and Geographical Rep_2
Business and Geographical Reporting Segments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business and Geographical Reporting Segments [Abstract] | |
Segment Reporting Information by Segment | The following tables reflect results of operations from our business segments for the periods indicated below (in thousands, except gross profit %): Year Ended December 31, 2022 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Revenues $ 23,025 $ 13,136 $ 36,161 Cost of revenues 8,371 6,022 14,393 Gross profit 14,654 7,114 21,768 Gross profit % 63.6 % 54.2 % 60.2 % Allocated expenses: Engineering and product development 672 357 1,029 Selling and marketing 13,503 1,798 15,301 Unallocated expenses — — 10,087 14,175 2,155 26,417 Income (loss) from operations 479 4,959 (4,649 ) Interest expense — — (926 ) Interest income — — 89 Income (loss) before income tax expense $ 479 $ 4,959 $ (5,486 ) Year Ended December 31, 2021 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Revenues $ 22,528 $ 7,449 $ 29,977 Cost of revenues 6,418 3,709 10,127 Gross profit 16,110 3,740 19,850 Gross profit % 71.5 % 50.2 % 66.2 % Allocated expenses: Engineering and product development 1,251 183 1,434 Selling and marketing 12,257 849 13,106 Unallocated expenses — — 9,712 13,508 1,032 24,252 Income (loss) from operations 2,602 2,708 (4,402 ) Interest expense — — (314 ) Interest income — — 15 Gain on debt extinguishment — — 2,029 Income (loss) before income tax expense $ 2,602 $ 2,708 $ (2,672 ) |
Disaggregation of Revenue by Geographical Region | The following tables present the Company’s revenue disaggregated by geographical region for the years ended December 31, 2022 and 2021 (in thousands). Domestic refers to revenue from customers based in the United States, and foreign revenue is derived from the Company’s distributors primarily in Asia. Year Ended December 31, 2022 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Domestic $ 21,585 $ 2,396 $ 23,981 China 195 4,556 4,751 Korea 888 2,828 3,716 Other foreign 357 3,356 3,713 Total $ 23,025 $ 13,136 $ 36,161 Year Ended December 31, 2021 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Domestic $ 21,215 $ 1,982 $ 23,197 China — 931 931 Korea 941 2,412 3,353 Other foreign 372 2,124 2,496 Total $ 22,528 $ 7,449 $ 29,977 |
Depreciation and Amortization by Reportable Segment | For the years ended December 31, 2022 and 2021, depreciation and amortization by reportable segment were as follows (in thousands): Year Ended December 31, 2022 2021 Dermatology recurring procedures $ 4,421 $ 3,334 Dermatology procedures equipment 857 384 Unallocated expenses 15 18 Consolidated total $ 5,293 $ 3,736 |
Total Assets by Reportable Segment | As of December 31, 2022 and 2021, total assets by reportable segment were as follows (in thousands): December 31, 2022 2021 Dermatology recurring procedures $ 37,230 $ 30,897 Dermatology procedures equipment 7,890 2,662 Other unallocated assets 7,152 13,034 Consolidated total $ 52,272 $ 46,593 |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) $ in Millions | 1 Months Ended |
Oct. 31, 2021 USD ($) | |
At-the-Market Equity Offering [Member] | Maximum [Member] | |
Liquidity and Going Concern [Abstract] | |
Amount of common stock the Company may sell under equity distribution agreement | $ 11 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies, Concentrations of Credit Risk and Major Customers (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Customer | Dec. 31, 2021 USD ($) Customer | |
Concentration of Credit Risk [Abstract] | ||
Revenues | $ 36,161 | $ 29,977 |
Accounts receivable | $ 4,471 | $ 3,433 |
Customer Concentration Risk [Member] | Revenue [Member] | ||
Concentration of Credit Risk [Abstract] | ||
Number of major customers | Customer | 2 | 1 |
Customer Concentration Risk [Member] | Revenue [Member] | Customer One [Member] | ||
Concentration of Credit Risk [Abstract] | ||
Revenues | $ 8,500 | |
Concentration risk percentage | 23% | |
Customer Concentration Risk [Member] | Revenue [Member] | Customer Two [Member] | ||
Concentration of Credit Risk [Abstract] | ||
Revenues | $ 3,400 | |
Concentration risk percentage | 11% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer One [Member] | ||
Concentration of Credit Risk [Abstract] | ||
Accounts receivable | $ 500 | |
Concentration risk percentage | 11% | 10% |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies, Cash and Cash Equivalents (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Maximum [Member] | ||
Cash and Cash Equivalents [Abstract] | ||
Credit card transaction settlement term | 5 days | 5 days |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies, Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Restricted Cash [Abstract] | |||
Cash and cash equivalents | $ 5,434 | $ 12,586 | |
Restricted cash | 1,361 | 0 | |
Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows | $ 6,795 | $ 12,586 | $ 18,112 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies, Property and Equipment, net (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Computers, Hardware and Software [Member] | |
Property and Equipment, Net [Abstract] | |
Property and equipment, net, useful life | 3 years |
Machinery and Equipment [Member] | |
Property and Equipment, Net [Abstract] | |
Property and equipment, net, useful life | 5 years |
Furniture and Fixtures [Member] | |
Property and Equipment, Net [Abstract] | |
Property and equipment, net, useful life | 7 years |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies, Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | |
Intangible Assets [Abstract] | |
Estimated useful life | 3 years |
Maximum [Member] | |
Intangible Assets [Abstract] | |
Estimated useful life | 12 years |
Basis of Presentation and Sum_9
Basis of Presentation and Summary of Significant Accounting Policies, Goodwill (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Unit | Dec. 31, 2021 USD ($) | |
Goodwill [Abstract] | ||
Number of reporting units | Unit | 2 | |
Goodwill impairment | $ | $ 0 | $ 0 |
Basis of Presentation and Su_10
Basis of Presentation and Summary of Significant Accounting Policies, Impairment of Long-Lived Assets and Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Impairment of Long-Lived Assets and Intangibles [Abstract] | ||
Asset impairment charges | $ 0 | $ 0 |
Basis of Presentation and Su_11
Basis of Presentation and Summary of Significant Accounting Policies, Accrued Warranty Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Activity of Warranty Accrual [Roll Forward] | ||
Balance, beginning of year | $ 79 | $ 113 |
Additions | 246 | 71 |
Expirations and claims satisfied | (118) | (105) |
Total | 207 | 79 |
Less current portion within accrued expenses and other current liabilities | (136) | (59) |
Balance within deferred revenues and other liabilities | $ 71 | $ 20 |
Minimum [Member] | ||
Accrued Warranty Costs [Abstract] | ||
Standard warranty period | 1 year | |
Offered warranty period | 3 years | |
Maximum [Member] | ||
Accrued Warranty Costs [Abstract] | ||
Standard warranty period | 2 years | |
Offered warranty period | 4 years |
Basis of Presentation and Su_12
Basis of Presentation and Summary of Significant Accounting Policies, Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Lasers Placed-in Service [Member] | |
Revenue Recognition [Abstract] | |
Lease term | 36 months |
Renewal term | 1 year |
Lasers Placed-in Service [Member] | Minimum [Member] | |
Revenue Recognition [Abstract] | |
Notice period to cancel contract agreement | 30 days |
Lasers Placed-in Service [Member] | Maximum [Member] | |
Revenue Recognition [Abstract] | |
Notice period to cancel contract agreement | 60 days |
South Korea [Member] | |
Revenue Recognition [Abstract] | |
Lease term | 48 months |
Basis of Presentation and Su_13
Basis of Presentation and Summary of Significant Accounting Policies, Revenue Recognition, Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Abstract] | ||
Revenues, net | $ 36,161 | $ 29,977 |
Dermatology Recurring Procedures [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenues, net | 23,025 | 22,528 |
Dermatology Procedures Equipment [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenues, net | $ 13,136 | $ 7,449 |
Basis of Presentation and Su_14
Basis of Presentation and Summary of Significant Accounting Policies, Revenue Recognition, Future Undiscounted Fixed Treatment Code Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | $ 600 | $ 1,300 |
Dermatology Recurring Procedures [Member] | ||
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | 2,736 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | $ 900 | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | $ 400 | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Dermatology Recurring Procedures [Member] | ||
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | $ 1,207 | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Dermatology Recurring Procedures [Member] | ||
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | $ 975 | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Dermatology Recurring Procedures [Member] | ||
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | $ 384 | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Dermatology Recurring Procedures [Member] | ||
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | $ 166 | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Dermatology Recurring Procedures [Member] | ||
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | $ 4 | |
Expected timing of satisfaction period | 1 year |
Basis of Presentation and Su_15
Basis of Presentation and Summary of Significant Accounting Policies, Revenue Recognition, Remaining Performance Obligation (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Remaining Performance Obligation [Abstract] | ||
Remaining performance obligations | $ 0.6 | $ 1.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Remaining Performance Obligation [Abstract] | ||
Remaining performance obligations | $ 0.9 | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Remaining Performance Obligation [Abstract] | ||
Remaining performance obligations | $ 0.4 | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Minimum [Member] | ||
Remaining Performance Obligation [Abstract] | ||
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Maximum [Member] | ||
Remaining Performance Obligation [Abstract] | ||
Expected timing of satisfaction period | 3 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Minimum [Member] | ||
Remaining Performance Obligation [Abstract] | ||
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Maximum [Member] | ||
Remaining Performance Obligation [Abstract] | ||
Expected timing of satisfaction period | 3 years |
Basis of Presentation and Su_16
Basis of Presentation and Summary of Significant Accounting Policies, Revenue Recognition, Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |
Contract with Customer, Liability [Abstract] | |||
Short-term contract liabilities | $ 0.9 | $ 0.4 | |
Long-term contract liabilities | 0.4 | $ 0.2 | |
Change in Contract with Customer, Liability [Abstract] | |||
Contract liabilities recognized as revenue | $ 0.9 | $ 0.1 |
Basis of Presentation and Su_17
Basis of Presentation and Summary of Significant Accounting Policies, Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Advertising Costs [Abstract] | ||
Advertising expense | $ 1.6 | $ 1.6 |
Basis of Presentation and Su_18
Basis of Presentation and Summary of Significant Accounting Policies, Net Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Abstract] | ||
Potential common stock equivalents (in shares) | 5,126,344 | 4,402,779 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Abstract] | ||
Potential common stock equivalents (in shares) | 278,004 | 90,540 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Abstract] | ||
Potential common stock equivalents (in shares) | 4,474,714 | 3,938,613 |
Common Stock Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Abstract] | ||
Potential common stock equivalents (in shares) | 373,626 | 373,626 |
Acquisitions, TheraClear Asset
Acquisitions, TheraClear Asset Acquisition (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Jan. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | |
Acquisition of Assets and Liabilities [Abstract] | |||
Number of shares issued in connection with asset acquisition (in shares) | 358,367 | ||
Maximum [Member] | |||
Acquisition of Assets and Liabilities [Abstract] | |||
Future earnout milestone payments | $ 500 | ||
Future milestone payments | 3,000 | ||
Maximum [Member] | Domestic [Member] | |||
Acquisition of Assets and Liabilities [Abstract] | |||
Future royalty payments | $ 500 | ||
TheraClear Corporation [Member] | |||
Acquisition of Assets and Liabilities [Abstract] | |||
Number of shares issued in connection with asset acquisition (in shares) | 358,367 | ||
Milestone payments | $ 500 | ||
Consideration [Abstract] | |||
Cash payment | $ 500 | ||
Common stock issued | 500 | ||
Transaction costs | 131 | ||
Contingent consideration | 9,122 | $ 300 | |
Total consideration | 10,253 | ||
Assets acquired [Abstract] | |||
Inventories | 71 | ||
Total assets acquired | $ 10,253 | ||
Weighted average cost of capital | 14.50% | ||
Revenues for the royalty rate | 15% | ||
Risk free rate of return | 1.60% | ||
Revenue volatility | 45% | ||
Cost of equity | 10.50% | ||
TheraClear Corporation [Member] | Technology [Member] | |||
Assets acquired [Abstract] | |||
Intangible asset | $ 10,182 | ||
Amortization period of intangible assets | 10 years | ||
TheraClear Corporation [Member] | Foreign [Member] | |||
Acquisition of Assets and Liabilities [Abstract] | |||
Percentage of gross profit for future royalty payments for subsequent period | 25% | ||
Subsequent period of gross profit for future royalty payments | 4 years | ||
TheraClear Corporation [Member] | Minimum [Member] | Domestic [Member] | |||
Acquisition of Assets and Liabilities [Abstract] | |||
Percentage of gross profit for future royalty payments for subsequent period | 10% | ||
TheraClear Corporation [Member] | Maximum [Member] | |||
Acquisition of Assets and Liabilities [Abstract] | |||
Future earnout milestone payments | $ 3,000 | ||
Future milestone payments | 500 | ||
TheraClear Corporation [Member] | Maximum [Member] | Domestic [Member] | |||
Acquisition of Assets and Liabilities [Abstract] | |||
Future royalty payments | $ 20,000 | ||
Percentage of gross profit for future royalty payments for subsequent period | 20% |
Acquisitions, Pharos Asset Acqu
Acquisitions, Pharos Asset Acquisition (Details) - RA Medical Systems, Inc. [Member] $ in Thousands | 1 Months Ended | 12 Months Ended |
Aug. 31, 2021 USD ($) Practice | Dec. 31, 2022 | |
Acquisition of Assets and Liabilities [Abstract] | ||
Number of dermatology practices | Practice | 400 | |
Consideration [Abstract] | ||
Cash payment | $ 3,700 | |
Transaction costs | 57 | |
Total consideration | 3,757 | |
Assets acquired [Abstract] | ||
Inventories | 284 | |
Total assets acquired | 5,598 | |
Liabilities assumed [Abstract] | ||
Deferred revenues - service contracts | 1,841 | |
Total liabilities assumed | 1,841 | |
Net assets acquired | $ 3,757 | |
Estimated customer sales growth | 3% | |
Customer attrition | 5% | |
Weighted average cost of capital | 17% | |
Customer Lists Intangible Asset [Member] | ||
Assets acquired [Abstract] | ||
Intangible asset | $ 5,314 | |
Liabilities assumed [Abstract] | ||
Amortization period of intangible assets | 12 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of inventory [Abstract] | ||
Raw materials and work-in-process | $ 5,418 | $ 3,201 |
Finished goods | 129 | 288 |
Inventories, net | $ 5,547 | $ 3,489 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 29,454 | $ 26,654 |
Less: accumulated depreciation and amortization | (21,956) | (19,771) |
Property and equipment, net | 7,498 | 6,883 |
Depreciation and amortization expense | 2,400 | 2,100 |
Lasers Placed-In-Service [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 28,790 | 25,949 |
Equipment, Computer Hardware and Software [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 293 | 238 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 235 | 213 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 136 | $ 254 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Operating Lease, Description [Abstract] | ||
Increase in ROU asset and operating lease liability resulting from lease modification | $ 700 | $ 0 |
Operating lease costs | 400 | 400 |
Cash paid for amounts included in measurement of operating lease liabilities | $ 400 | $ 500 |
Weighted average incremental borrowing rate | 8.76% | 9.76% |
Weighted average remaining lease term | 2 years 9 months 18 days | 2 years 3 months 18 days |
Operating Lease Maturities [Abstract] | ||
2023 | $ 426 | |
2024 | 386 | |
2025 | 195 | |
2026 | 81 | |
Total remaining lease payments | 1,088 | |
Less: imputed interest | (123) | |
Total lease liabilities | $ 965 | |
Minimum [Member] | ||
Lessee, Operating Lease, Description [Abstract] | ||
Remaining lease term | 1 year | |
Maximum [Member] | ||
Lessee, Operating Lease, Description [Abstract] | ||
Remaining lease term | 4 years | |
Facility One [Member] | ||
Lessee, Operating Lease, Description [Abstract] | ||
Renewal option term | 2 years |
Intangible Assets and Goodwill,
Intangible Assets and Goodwill, Components of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Components of Intangible Assets [Abstract] | ||
Balance | $ 31,596 | $ 21,414 |
Accumulated amortization | (14,202) | (11,331) |
Intangible assets, net | 17,394 | 10,083 |
Amortization expense of intangible assets | 2,900 | 1,600 |
Core Technology [Member] | ||
Components of Intangible Assets [Abstract] | ||
Balance | 5,700 | 5,700 |
Accumulated amortization | (4,275) | (3,705) |
Intangible assets, net | 1,425 | 1,995 |
Product Technology [Member] | ||
Components of Intangible Assets [Abstract] | ||
Balance | 12,182 | 2,000 |
Accumulated amortization | (3,018) | (2,000) |
Intangible assets, net | 9,164 | 0 |
Customer Relationships [Member] | ||
Components of Intangible Assets [Abstract] | ||
Balance | 6,900 | 6,900 |
Accumulated amortization | (5,175) | (4,485) |
Intangible assets, net | 1,725 | 2,415 |
Tradenames [Member] | ||
Components of Intangible Assets [Abstract] | ||
Balance | 1,500 | 1,500 |
Accumulated amortization | (1,125) | (975) |
Intangible assets, net | 375 | 525 |
Pharos Customer Lists [Member] | ||
Components of Intangible Assets [Abstract] | ||
Balance | 5,314 | 5,314 |
Accumulated amortization | (609) | (166) |
Intangible assets, net | $ 4,705 | $ 5,148 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill, Estimated Future Amortization Expense for Intangible Assets (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Estimated amortization expense [Abstract] | |
2023 | $ 2,871 |
2024 | 2,871 |
2025 | 2,166 |
2026 | 1,461 |
2027 | $ 1,461 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill, Components of Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Components of Goodwill [Abstract] | ||
Goodwill | $ 8,803 | $ 8,803 |
Dermatology Recurring Procedures [Member] | ||
Components of Goodwill [Abstract] | ||
Goodwill | 7,958 | 7,958 |
Dermatology Procedures Equipment [Member] | ||
Components of Goodwill [Abstract] | ||
Goodwill | $ 845 | $ 845 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Expenses and Other Current Liabilities [Abstract] | ||
Warranty obligations | $ 136 | $ 59 |
Compensation and related benefits | 1,997 | 2,052 |
State sales, use and other taxes | 3,986 | 3,697 |
Professional fees and other | 436 | 569 |
Accrued expenses and other current liabilities | $ 6,555 | $ 6,377 |
Note Payable (Details)
Note Payable (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instruments [Abstract] | ||||
Repayments of notes payable | $ 0 | $ 7,275 | ||
Note [Member] | ||||
Debt Instruments [Abstract] | ||||
Face amount of debt | $ 7,300 | |||
Debt instrument term | 1 year | |||
Maturity date | Dec. 30, 2021 | |||
Fixed interest rate | 1.40% | |||
Repayments of notes payable | $ 7,300 | |||
Time Deposit [Member] | ||||
Debt Instruments [Abstract] | ||||
Fixed interest rate | 0.40% |
Long-term Debt, Senior Term Fac
Long-term Debt, Senior Term Facility (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 $ / shares shares | Dec. 31, 2022 USD ($) Payment $ / shares shares | Dec. 31, 2021 USD ($) | |
SOFR [Member] | ||||
Long-term Debt [Abstract] | ||||
Term of variable rate | 1 month | |||
Interest rate floor | 0.10% | |||
Basis spread on variable rate | 0.50% | |||
Senior Term Facility [Member] | ||||
Long-term Debt [Abstract] | ||||
Warrants issued (in shares) | shares | 373,626 | |||
Warrants, exercise price (in dollars per share) | $ / shares | $ 1.82 | |||
MidCap Financial Trust [Member] | Senior Term Facility [Member] | ||||
Long-term Debt [Abstract] | ||||
Face amount of debt | $ 8,000 | |||
Interest rate percentage | 11.72% | 8% | ||
Maturity date | Sep. 01, 2026 | |||
Number of monthly principal payments plus interest | Payment | 24 | |||
Frequency of payment | monthly | |||
Notice period | 30 days | |||
Prepayment fee if prepayment is made between twelve months and twenty-four months | 3% | |||
Prepayment fee if prepayment is made between twenty-four months and thirty-six months | 2% | |||
Prepayment fee if prepayment is made after thirty-six months | 1% | |||
Minimum net revenue threshold | $ 28,000 | |||
Minimum net revenue threshold by December 31, 2023 | 30,000 | |||
Estimated fair value of warrants | 600 | |||
Third party costs and lender fees | 100 | |||
Unamortized debt discount | 500 | $ 700 | ||
Interest expense | 900 | 300 | ||
Amortization of debt discount | 200 | $ 37 | ||
MidCap Financial Trust [Member] | Senior Term Facility [Member] | Minimum [Member] | ||||
Long-term Debt [Abstract] | ||||
Prepayment of debt | $ 5,000 | |||
MidCap Financial Trust [Member] | Senior Term Facility [Member] | Common Stock [Member] | ||||
Long-term Debt [Abstract] | ||||
Warrants issued (in shares) | shares | 373,626 | |||
Warrants, exercise price (in dollars per share) | $ / shares | $ 1.82 | |||
MidCap Financial Trust [Member] | Senior Term Facility [Member] | LIBOR [Member] | ||||
Long-term Debt [Abstract] | ||||
Interest rate floor | 0.50% | |||
Basis spread on variable rate | 7.50% | |||
MidCap Financial Trust [Member] | Senior Term Facility [Member] | Expected Volatility [Member] | ||||
Long-term Debt [Abstract] | ||||
Warrants, expected term | 10 years | |||
Warrants, measurement input | 0.886 | |||
MidCap Financial Trust [Member] | Senior Term Facility [Member] | Risk-Free Rate [Member] | ||||
Long-term Debt [Abstract] | ||||
Warrants, measurement input | 0.015 | |||
MidCap Financial Trust [Member] | Senior Term Facility [Member] | Estimated Dividend Yield [Member] | ||||
Long-term Debt [Abstract] | ||||
Warrants, measurement input | 0 |
Long-term Debt, Future Minimum
Long-term Debt, Future Minimum Principal Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Future Payments for Long-Term Debt [Abstract] | |
2024 | $ 1,000 |
2025 | 4,000 |
2026 | 3,000 |
Future minimum principal payments | $ 8,000 |
Long-term Debt, PPP Loan and EI
Long-term Debt, PPP Loan and EIDL Loan (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
May 22, 2020 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 22, 2020 | |
Long-term Debt [Abstract] | |||||
Gain on forgiveness of debt | $ 0 | $ 2,029 | |||
PPP Loans [Member] | |||||
Long-term Debt [Abstract] | |||||
Face amount of debt | $ 2,000 | ||||
Maturity date | May 01, 2022 | ||||
Interest rate percentage | 1% | ||||
Gain on forgiveness of debt | $ 2,000 | ||||
EDIL [Member] | |||||
Long-term Debt [Abstract] | |||||
Face amount of debt | $ 500 | ||||
Interest rate percentage | 3.75% | ||||
Installment monthly payment amount | $ 2 | ||||
Debt instrument term | 30 years |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 23, 2023 USD ($) | Jan. 31, 2022 USD ($) Device | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Legal Matters [Abstract] | ||||
Litigation settlement accrued | $ 0.1 | |||
Employee 401(k) Savings Plan [Abstract] | ||||
Employer contribution amount | $ 0.3 | $ 0.3 | ||
Milestone Payment [Abstract] | ||||
Development agreement term | 3 years | |||
Subsequent Event [Member] | ||||
Legal Matters [Abstract] | ||||
Litigation settlement to be paid | $ 0.1 | |||
Maximum [Member] | ||||
Milestone Payment [Abstract] | ||||
Number of devices in development | Device | 3 | |||
Future earnout payments | $ 0.5 | |||
Future milestone payments | 3 | |||
Domestic [Member] | Maximum [Member] | ||||
Milestone Payment [Abstract] | ||||
Future royalty payments | $ 0.5 | |||
Tax Period from March 2014 through April 2020 [Member] | ||||
Sales and Use Tax Matters [Abstract] | ||||
Estimated tax positions subject to audit | $ 2.4 | |||
Tax Period from March 2014 through April 2020 [Member] | Assessment One [Member] | ||||
Sales and Use Tax Matters [Abstract] | ||||
Assessment amount | 1.5 | |||
Tax Period from March 2014 through April 2020 [Member] | Assessment Two [Member] | ||||
Sales and Use Tax Matters [Abstract] | ||||
Assessment amount | $ 0.9 |
Stockholders' Equity, Preferred
Stockholders' Equity, Preferred Stock and Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock Disclosures [Abstract] | |||
Preferred stock, stated value (in dollars per share) | $ 0.1 | $ 0.1 | |
Preferred shares outstanding (in shares) | 0 | 0 | |
Number of shares issued in connection with asset acquisition (in shares) | 358,367 | ||
Stock issued upon exercise of stock options (in shares) | 329,076 | ||
Issuance of restricted stock (in shares) | 234,558 | ||
At-the-Market Equity Offering [Member] | |||
Class of Stock Disclosures [Abstract] | |||
Common stock sold under equity distribution agreement (in shares) | 0 | 0 | |
At-the-Market Equity Offering [Member] | Maximum [Member] | |||
Class of Stock Disclosures [Abstract] | |||
Amount of common stock the Company may sell under equity distribution agreement | $ 11 | ||
Commission as percentage of gross proceeds from sale of shares sold | 3% | ||
Series C Convertible Preferred Stock [Member] | |||
Class of Stock Disclosures [Abstract] | |||
Beneficial ownership percentage | 9.99% | ||
Preferred stock, stated value (in dollars per share) | $ 1,000 | ||
Preferred stock conversion price (in dollars per share) | $ 2.69 |
Stockholders' Equity, Outstandi
Stockholders' Equity, Outstanding Common Stock Warrants (Details) - Senior Term Facility [Member] | 1 Months Ended |
Sep. 30, 2021 $ / shares shares | |
Warrants and Rights [Abstract] | |
Warrants issued (in shares) | shares | 373,626 |
Exercise price (in dollars per share) | $ / shares | $ 1.82 |
Stock-Based Compensation, Summa
Stock-Based Compensation, Summary (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 30, 2022 | Feb. 28, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-based Compensation [Abstract] | ||||
Stock-based compensation expense | $ 1,466 | $ 1,643 | ||
Accelerated compensation expense | $ 200 | |||
General and Administrative Expenses [Member] | ||||
Stock-based Compensation [Abstract] | ||||
Stock-based compensation expense | 1,300 | $ 1,600 | ||
Selling and Marketing Expenses [Member] | ||||
Stock-based Compensation [Abstract] | ||||
Stock-based compensation expense | $ 200 | |||
Stock Options [Member] | ||||
Stock-based Compensation [Abstract] | ||||
Granted (in shares) | 1,000,000 | 2,463,714 | ||
Stock-based options forfeited (in shares) | 60,000 | |||
Stock Options [Member] | Chief Executive Officer [Member] | ||||
Stock-based Compensation [Abstract] | ||||
Granted (in shares) | 160,000 | |||
2016 Omnibus Incentive Plan [Member] | ||||
Stock-based Compensation [Abstract] | ||||
Common stock reserved for future issuance (in shares) | 7,832,651 | |||
Number of shares available for issuance (in shares) | 3,193,706 |
Stock-Based Compensation, Stock
Stock-Based Compensation, Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares under Options Plan [Abstract] | ||
Exercised (in shares) | (329,076) | |
Stock Options [Member] | ||
Number of Shares under Options Plan [Abstract] | ||
Outstanding at beginning of period (in shares) | 3,938,613 | 5,292,888 |
Granted (in shares) | 1,000,000 | 2,463,714 |
Exercised (in shares) | (15,000) | (1,557,628) |
Forfeited and expired (in shares) | (448,899) | (2,260,361) |
Outstanding at end of period (in shares) | 4,474,714 | 3,938,613 |
Exercisable at end of period (in shares) | 2,202,792 | |
Weighted Average Exercise Price per Option [Abstract] | ||
Outstanding at beginning of period (in dollars per share) | $ 1.9 | $ 1.87 |
Granted (in dollars per share) | 1.41 | 1.7 |
Exercised (in dollars per share) | 1.29 | 1.12 |
Forfeited and expired (in dollars per share) | 2.63 | 2.1 |
Outstanding at end of period (in dollars per share) | 1.72 | $ 1.9 |
Exercisable at end of period (in dollars per share) | $ 1.88 | |
Weighted average remaining contractual term [Abstract] | ||
Outstanding | 8 years 7 days | 7 years 10 months 28 days |
Exercisable | 7 years 3 months 10 days | |
Weighted-average grant date fair value (in dollars per share) | $ 1.06 | $ 1.27 |
Unrecognized compensation expense | $ 2,300 | |
Unrecognized compensation expense, weighted average period | 2 years 2 months 12 days | |
Aggregate intrinsic value of options outstanding | $ 0 | $ 26 |
Aggregate intrinsic value of options exercisable | 0 | 4 |
Aggregate intrinsic value of options exercised | $ 0 | $ 500 |
Stock option exercise, stock issued (in shares) | 329,076 | |
Stock Options [Member] | Maximum [Member] | ||
Weighted average remaining contractual term [Abstract] | ||
Expiration period | 10 years |
Stock-Based Compensation, Fair
Stock-Based Compensation, Fair Value Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Assumptions [Abstract] | ||
Expected term (in years) | 6 years 1 month 6 days | 5 years 11 months 15 days |
Expected volatility | 89.57% | 90.03% |
Risk-free rate | 2.51% | 1.08% |
Dividend rate | 0% | 0% |
Stock-Based Compensation, Restr
Stock-Based Compensation, Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Unrecognized Compensation Expense [Abstract] | |||
Issuance of restricted stock units (in shares) | 234,558 | ||
Restricted Stock Units [Member] | |||
Number of Units [Abstract] | |||
Unvested balance at beginning of period (in shares) | 119,597 | 90,540 | 0 |
Granted (in shares) | 187,464 | 290,861 | |
Vested (in shares) | (158,407) | (146,364) | |
Forfeited and expired (in shares) | 0 | (53,957) | |
Unvested balance at end of period (in shares) | 119,597 | 90,540 | |
Weighted-Average Grant Date Fair Value [Abstract] | |||
Unvested balance at beginning of period (in dollars per share) | $ 0.93 | $ 1.45 | $ 0 |
Granted (in dollars per share) | 0.96 | 1.44 | |
Vested (in dollars per share) | 1.26 | 1.42 | |
Forfeited and expired (in dollars per share) | 0 | 1.45 | |
Unvested balance at end of period (in dollars per share) | $ 0.93 | $ 1.45 | |
Unrecognized Compensation Expense [Abstract] | |||
Weighted average period of recognition | 6 months | ||
Restricted Stock Units [Member] | Subsequent Event [Member] | |||
Unrecognized Compensation Expense [Abstract] | |||
Issuance of restricted stock units (in shares) | 158,407 | ||
Restricted Stock Units [Member] | Maximum [Member] | |||
Unrecognized Compensation Expense [Abstract] | |||
Unrecognized compensation expense | $ 0.1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current [Abstract] | ||
Federal | $ 0 | $ 0 |
State | 23 | 22 |
Current income tax | 23 | 22 |
Deferred [Abstract] | ||
Federal | 23 | 23 |
State | 17 | (11) |
Deferred income tax | 40 | 12 |
Income tax expense | 63 | 34 |
Deferred Tax Assets (Liabilities) [Abstract] | ||
Net operating loss carryforwards | 45,077 | 46,596 |
Intangible assets | 1,697 | 1,039 |
Inventory | 57 | 26 |
Reserves and accrued expenses | 1,431 | 1,230 |
Property and equipment | 1,111 | 441 |
Stock-based compensation | 548 | 458 |
Operating lease right-of-use assets | (242) | (159) |
Goodwill | (1,095) | (950) |
Operating lease liabilities | 240 | 177 |
481(a) adjustment | (333) | (667) |
Interest expense limitation carryover | 208 | 0 |
Less: valuation allowance | (49,005) | (48,457) |
Net deferred tax liability | (306) | (266) |
Valuation allowance - Deferred tax asset change in amount | 500 | 100 |
Unrecognized tax benefits | $ 0 | $ 0 |
Effective Income Tax Rate Reconciliation [Abstract] | ||
Federal tax expense at statutory rate | 21% | 21% |
State tax, net of federal benefit | (0.58%) | (0.33%) |
Permanent differences | (2.23%) | 8.90% |
Other difference and true ups | (11.20%) | (25.27%) |
Change in valuation allowance | (8.14%) | (5.57%) |
Tax provision | (1.15%) | (1.27%) |
Federal [Member] | ||
Operating Loss Carryforwards [Abstract] | ||
Operating loss carryforwards | $ 198,144 | $ 204,314 |
State [Member] | ||
Operating Loss Carryforwards [Abstract] | ||
Operating loss carryforwards | $ 60,784 | $ 60,654 |
Business and Geographical Rep_3
Business and Geographical Reporting Segments (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | |
Business Segments [Abstract] | ||
Number of operating segments | Segment | 2 | |
Results of Operations from Business Segments [Abstract] | ||
Revenues | $ 36,161 | $ 29,977 |
Cost of revenues | 14,393 | 10,127 |
Gross profit | $ 21,768 | $ 19,850 |
Gross profit % | 60.20% | 66.20% |
Allocated expenses [Abstract] | ||
Engineering and product development | $ 1,029 | $ 1,434 |
Selling and marketing | 15,301 | 13,106 |
Unallocated expenses | 10,087 | 9,712 |
Total operating expenses | 26,417 | 24,252 |
Income (loss) from operations | (4,649) | (4,402) |
Interest expense | (926) | (314) |
Interest income | 89 | 15 |
Gain on debt extinguishment | 2,029 | |
Loss before income tax expense | (5,486) | (2,672) |
Depreciation and Amortization by Reportable Segment [Abstract] | ||
Depreciation, and amortization | 5,293 | 3,736 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 36,161 | 29,977 |
Total Assets by Reportable Segment [Abstract] | ||
Assets | 52,272 | 46,593 |
Long-lived Assets [Abstract] | ||
Long-lived assets | 600 | 1,000 |
Dermatology Recurring Procedures [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 23,025 | 22,528 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 23,025 | 22,528 |
Dermatology Procedures Equipment [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 13,136 | 7,449 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 13,136 | 7,449 |
Domestic [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 23,981 | 23,197 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 23,981 | 23,197 |
China [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 4,751 | 931 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 4,751 | 931 |
Korea [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 3,716 | 3,353 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 3,716 | 3,353 |
Other Foreign [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 3,713 | 2,496 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 3,713 | 2,496 |
Operating Segments [Member] | Dermatology Recurring Procedures [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 23,025 | 22,528 |
Cost of revenues | 8,371 | 6,418 |
Gross profit | $ 14,654 | $ 16,110 |
Gross profit % | 63.60% | 71.50% |
Allocated expenses [Abstract] | ||
Engineering and product development | $ 672 | $ 1,251 |
Selling and marketing | 13,503 | 12,257 |
Unallocated expenses | 0 | 0 |
Total operating expenses | 14,175 | 13,508 |
Income (loss) from operations | 479 | 2,602 |
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Gain on debt extinguishment | 0 | |
Loss before income tax expense | 479 | 2,602 |
Depreciation and Amortization by Reportable Segment [Abstract] | ||
Depreciation, and amortization | 4,421 | 3,334 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 23,025 | 22,528 |
Total Assets by Reportable Segment [Abstract] | ||
Assets | 37,230 | 30,897 |
Operating Segments [Member] | Dermatology Procedures Equipment [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 13,136 | 7,449 |
Cost of revenues | 6,022 | 3,709 |
Gross profit | $ 7,114 | $ 3,740 |
Gross profit % | 54.20% | 50.20% |
Allocated expenses [Abstract] | ||
Engineering and product development | $ 357 | $ 183 |
Selling and marketing | 1,798 | 849 |
Unallocated expenses | 0 | 0 |
Total operating expenses | 2,155 | 1,032 |
Income (loss) from operations | 4,959 | 2,708 |
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Gain on debt extinguishment | 0 | |
Loss before income tax expense | 4,959 | 2,708 |
Depreciation and Amortization by Reportable Segment [Abstract] | ||
Depreciation, and amortization | 857 | 384 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 13,136 | 7,449 |
Total Assets by Reportable Segment [Abstract] | ||
Assets | 7,890 | 2,662 |
Operating Segments [Member] | Domestic [Member] | Dermatology Recurring Procedures [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 21,585 | 21,215 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 21,585 | 21,215 |
Operating Segments [Member] | Domestic [Member] | Dermatology Procedures Equipment [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 2,396 | 1,982 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 2,396 | 1,982 |
Operating Segments [Member] | China [Member] | Dermatology Recurring Procedures [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 195 | 0 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 195 | 0 |
Operating Segments [Member] | China [Member] | Dermatology Procedures Equipment [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 4,556 | 931 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 4,556 | 931 |
Operating Segments [Member] | Korea [Member] | Dermatology Recurring Procedures [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 888 | 941 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 888 | 941 |
Operating Segments [Member] | Korea [Member] | Dermatology Procedures Equipment [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 2,828 | 2,412 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 2,828 | 2,412 |
Operating Segments [Member] | Other Foreign [Member] | Dermatology Recurring Procedures [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 357 | 372 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 357 | 372 |
Operating Segments [Member] | Other Foreign [Member] | Dermatology Procedures Equipment [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 3,356 | 2,124 |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 3,356 | 2,124 |
Other Unallocated Assets [Member] | ||
Total Assets by Reportable Segment [Abstract] | ||
Assets | 7,152 | 13,034 |
Unallocated [Member] | ||
Depreciation and Amortization by Reportable Segment [Abstract] | ||
Depreciation, and amortization | $ 15 | $ 18 |