Delaware
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000-51481
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13-3986004
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(State or Other
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(Commission File
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(I.R.S. Employer
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Jurisdiction of
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Number)
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Identification No.)
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Incorporation)
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100 Lakeside Drive, Suite 100, Horsham, Pennsylvania
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19044
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(Address of Principal Executive Offices)
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(Zip Code)
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STRATA SKIN SCIENCES, INC.
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Date: August 10, 2017
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By:
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/s/ Christina Allgeier
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Christina Allgeier
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Chief Financial Officer
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Exhibit No.
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Exhibit Description
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99.1
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·
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Second quarter total revenues were $8.7 million, up 12.5% year-over-year.
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·
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Recurring XTRAC® revenues were $6.2 million, or 71.3% of total revenues. Recurring XTRAC revenues were up 1.8% year-over-year.
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·
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Installed base of XTRAC systems in the U.S. expands to 795 systems placed, up 6.3% from 748 at the end of the second quarter 2016.
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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|||||||||||||||
2017
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2016
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2017
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2016
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|||||||||||||
(in thousands)
(Unaudited)
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(in thousands)
(Unaudited)
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|||||||||||||||
Net income (loss) as reported
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$
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(1,205
|
)
|
$
|
498
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$
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(3,440
|
)
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$
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(939
|
)
|
|||||
Adjustments:
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||||||||||||||||
Depreciation and amortization expense*
|
1,666
|
1,640
|
3,209
|
3,323
|
||||||||||||
Interest expense, net
|
619
|
535
|
1,188
|
1,067
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||||||||||||
Non-cash interest expense
|
956
|
643
|
1,733
|
1,329
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||||||||||||
Income taxes
|
73
|
61
|
143
|
127
|
||||||||||||
EBITDA
|
2,109
|
3,377
|
2,833
|
4,907
|
||||||||||||
Stock-based compensation expense
|
21
|
116
|
73
|
286
|
||||||||||||
Change in fair value of warrants
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(128
|
)
|
(3,199
|
)
|
4
|
(5,184
|
)
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|||||||||
Non-GAAP adjusted EBITDA
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$
|
2,002
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$
|
294
|
|
$
|
2,910
|
$
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9
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Date:
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Thursday, August 10
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Time:
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4:30 pm Eastern Time
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Toll Free:
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888-299-7209
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International:
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719-325-4821
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Passcode:
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9972674
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Webcast:
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www.strataskinsciences.com
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Toll Free:
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844-512-2921
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International:
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412-317-6671
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Passcode:
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9972674
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Webcast:
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www.strataskinsciences.com
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Christina L. Allgeier, Chief Financial Officer
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Bob Yedid, Managing Director
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STRATA Skin Sciences, Inc.
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LifeSci Advisors, LLC
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215-619-3267
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646-597-6989
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callgeier@strataskin.com
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Bob@LifeSciAdvisors.com
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June 30, 2017
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December 31, 2016
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|||||||
(unaudited)
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||||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$
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3,938
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$
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3,928
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||||
Accounts receivable, net
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3,560
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3,390
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||||||
Inventories
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3,487
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2,817
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||||||
Other current assets
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373
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617
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||||||
Property and equipment, net
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9,396
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10,180
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||||||
Goodwill and intangible assets, net
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22,101
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22,215
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||||||
Other non-current assets, net
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47
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46
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||||||
Total assets
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$
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42,902
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$
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43,193
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||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
Current liabilities:
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||||||||
Long-term debt and other notes payable
|
$
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11,716
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$
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11,805
|
||||
Accounts payable and accrued current liabilities
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4,461
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3,845
|
||||||
Current portion of deferred revenues
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413
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235
|
||||||
Senior secured convertible debentures, net
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13,386
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12,028
|
||||||
Warrant liability
|
109
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105
|
||||||
Other long-term liabilities
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1,203
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456
|
||||||
Stockholders' equity
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11,614
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14,719
|
||||||
Total liabilities and stockholders' equity
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$
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42,902
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$
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43,193
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For the Three Months Ended June 30,
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For the Six Months Ended June 30,
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|||||||||||||||
2017
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2016
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2017
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2016
|
|||||||||||||
Revenues
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$
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8,702
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$
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7,739
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$
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15,974
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$
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15,359
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||||||||
Cost of revenues
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3,173
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3,139
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5,906
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6,561
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||||||||||||
Gross profit
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5,529
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4,600
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10,068
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8,798
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||||||||||||
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||||||||||||||||
Operating expenses:
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||||||||||||||||
Engineering and product development
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423
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634
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898
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1,159
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||||||||||||
Selling and marketing
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3,077
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3,523
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6,227
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7,233
|
||||||||||||
General and administrative
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1,720
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1,901
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3,321
|
4,002
|
||||||||||||
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5,220
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6,058
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10,446
|
12,394
|
||||||||||||
Operating income (loss) before other income (expense), net
|
309
|
(1,458
|
)
|
(378
|
)
|
(3,596
|
)
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|||||||||
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||||||||||||||||
Other income (expense), net:
|
||||||||||||||||
Interest expense, net
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(1,575
|
)
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(1,178
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)
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(2,921
|
)
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(2,396
|
)
|
||||||||
Change in fair value of warrant liability
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128
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3,199
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(4
|
)
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5,184
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|||||||||||
Other (expense) income, net
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6
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(4
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)
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6
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(4
|
)
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||||||||||
(1,441
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)
|
2,017
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(2,919
|
)
|
2,784
|
|||||||||||
Net (loss) income before income taxes
|
(1,132
|
)
|
559
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(3,297
|
)
|
(812
|
)
|
|||||||||
Income tax expense
|
(73
|
)
|
(61
|
)
|
(143
|
)
|
(127
|
)
|
||||||||
Net (loss) income
|
$
|
(1,205
|
)
|
$
|
498
|
$
|
(3,440
|
)
|
$
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(939
|
)
|
|||||
Net (loss) income per share:
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||||||||||||||||
Basic
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$
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(0.52
|
)
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$
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0.24
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$
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(1.53
|
)
|
$
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(0.45
|
)
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|||||
Diluted
|
$
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(0.52
|
)
|
$
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(1.17
|
)
|
$
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(1.53
|
)
|
$
|
(2.76
|
)
|
||||
Shares used in computing net (loss) income per share:
|
||||||||||||||||
Basic
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2,327,041
|
2,117,897
|
2,252,301
|
2,092,914
|
||||||||||||
Diluted
|
2,327,041
|
2,311,047
|
2,252,301
|
2,216,181
|
||||||||||||
For the Six Months Ended
June 30,
|
||||||||
2017
|
2016
|
|||||||
Cash Flows From Operating Activities:
|
||||||||
Net loss
|
$
|
(3,440
|
)
|
$
|
(939
|
)
|
||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
3,209
|
3,323
|
||||||
Stock-based compensation
|
73
|
286
|
||||||
Amortization of debt discount
|
1,618
|
1,239
|
||||||
Amortization of deferred financing costs
|
115
|
91
|
||||||
Change in fair value of warrant liability
|
4
|
(5,184
|
)
|
|||||
Other
|
142
|
315
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Current assets
|
(574
|
)
|
1,817
|
|||||
Current liabilities
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550
|
(2,536
|
)
|
|||||
Net cash provided by (used in) operating activities
|
1,697
|
(1,588
|
)
|
|||||
Cash Flows From Investing Activities:
|
||||||||
Lasers placed-in-service, net
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(1,205
|
)
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(314
|
)
|
||||
Other
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(281
|
)
|
140
|
|||||
Net cash used in investing activities
|
(1,486
|
)
|
(174
|
)
|
||||
Cash Flows From Financing Activities:
|
||||||||
Proceeds from term debt
|
-
|
1,500
|
||||||
Other financing activities
|
(201
|
)
|
(207
|
)
|
||||
Net cash provided by (used in) financing activities
|
(201
|
)
|
1,293
|
|||||
Effect of exchange rate changes on cash
|
-
|
7
|
||||||
Net decrease in cash and cash equivalents
|
10
|
(462
|
)
|
|||||
Cash and cash equivalents, beginning of period
|
3,928
|
3,303
|
||||||
Cash and cash equivalents, end of period
|
$
|
3,938
|
$
|
2,841
|
Supplemental information:
|
||||||||
Cash paid for interest
|
$
|
1,133
|
$
|
980
|
||||
Supplemental information of non-cash investing and financing activities:
|
||||||||
Conversion of senior secured convertible debentures into common stock
|
$
|
262
|
$
|
248
|
||||
Recognition of warrants issued as debt discount
|
$
|
-
|
$
|
47
|
||||
Reclassification of warrant liabilities to equity
|
$
|
-
|
$
|
1,541
|
||||
Acquisition of distributor rights asset and license liability
|
$
|
900
|
$
|
-
|