|
Delaware
(State or other jurisdiction
of incorporation or organization)
|
|
13-3986004
(I.R.S. Employer
Identification No.)
|
|
Title of each class
|
Trading
Symbol(s) |
Name of each exchange on which registered
|
Common Stock, $0.001 par value per share
|
SSKN
|
The NASDAQ Stock Market LLC
|
Large accelerated filer ◻
|
Accelerated filer ◻
|
|||
Non-accelerated filer [X]
|
Smaller reporting company [X]
|
|||
Emerging growth company ◻
|
Part I. Financial Information:
|
PAGE
|
||
a.
|
3
|
||
b.
|
4
|
||
c.
|
5
|
||
d.
|
6
|
||
e.
|
7
|
||
22
|
|||
29
|
|||
30
|
|||
31
|
|||
31
|
|||
31
|
|||
31
|
|||
31
|
|||
31
|
|||
31
|
|||
32
|
|||
E-31.1
|
March 31, 2019
|
December 31, 2018
|
|||||||
ASSETS
|
(unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
16,389
|
$
|
16,487
|
||||
Accounts receivable, net of allowance for doubtful accounts of $134 and $141, respectively
|
3,575
|
3,393
|
||||||
Inventories
|
3,121
|
2,794
|
||||||
Prepaid expenses and other current assets
|
430
|
536
|
||||||
Total current assets
|
23,515
|
23,210
|
||||||
Property and equipment, net
|
4,962
|
5,301
|
||||||
Operating lease right-of-use assets, net
|
755
|
-
|
||||||
Intangible assets, net
|
9,312
|
9,765
|
||||||
Goodwill
|
8,803
|
8,803
|
||||||
Other assets
|
392
|
428
|
||||||
Total assets
|
$
|
47,739
|
$
|
47,507
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$
|
1,010
|
$
|
252
|
||||
Accounts payable
|
2,045
|
1,764
|
||||||
Other accrued liabilities
|
4,724
|
4,500
|
||||||
Current portion of operating lease liabilities
|
293
|
-
|
||||||
Deferred revenues
|
2,063
|
2,099
|
||||||
Total current liabilities
|
10,135
|
8,615
|
||||||
Long-term liabilities:
|
||||||||
Long-term debt, net
|
6,421
|
7,145
|
||||||
Deferred tax liability
|
69
|
111
|
||||||
Long-term operating lease liabilities, net
|
479
|
-
|
||||||
Other liabilities
|
397
|
388
|
||||||
Total liabilities
|
17,501
|
16,259
|
||||||
Commitments and contingencies (see Note 15)
|
||||||||
Stockholders' equity:
|
||||||||
Series C Convertible Preferred Stock, $.10 par value, 10,000,000 shares authorized; 6,878 and 9,968 shares issued and outstanding at March 31, 2019 and December 31,
2018, respectively
|
1
|
1
|
||||||
Common Stock, $.001 par value, 150,000,000 shares authorized; 31,120,608 and 29,943,086 shares issued and outstanding at March 31, 2019 and December 31, 2018,
respectively
|
31
|
30
|
||||||
Additional paid-in capital
|
242,310
|
241,988
|
||||||
Accumulated deficit
|
(212,104
|
)
|
(210,771
|
)
|
||||
Total stockholders' equity
|
30,238
|
31,248
|
||||||
Total liabilities and stockholders’ equity
|
$
|
47,739
|
$
|
47,507
|
For the Three Months
Ended March 31,
|
||||||||
2019
|
2018
|
|||||||
Revenues, net
|
$
|
7,483
|
$
|
6,738
|
||||
Cost of revenues
|
2,874
|
3,345
|
||||||
Gross profit
|
4,609
|
3,393
|
||||||
|
||||||||
Operating expenses:
|
||||||||
Engineering and product development
|
304
|
338
|
||||||
Selling and marketing
|
3,066
|
2,871
|
||||||
General and administrative
|
2,480
|
1,884
|
||||||
|
5,850
|
5,093
|
||||||
Loss from operations
|
(1,241
|
)
|
(1,700
|
)
|
||||
|
||||||||
Other (expense) income, net:
|
||||||||
Interest expense, net
|
(135
|
)
|
(363
|
)
|
||||
Change in fair value of warrant liability (see Note 1)
|
-
|
1
|
||||||
Other income, net
|
-
|
21
|
||||||
(135
|
)
|
(341
|
)
|
|||||
Loss before income taxes
|
(1,376
|
)
|
(2,041
|
)
|
||||
Income tax benefit (expense)
|
43
|
(40
|
)
|
|||||
Net loss
|
$
|
(1,333
|
)
|
$
|
(2,081
|
)
|
||
Loss attributable to common shares
|
$
|
(1,216
|
)
|
$
|
(512
|
)
|
||
Loss attributable to Preferred Series C shares
|
$
|
(117
|
)
|
$
|
(1,569
|
)
|
||
Loss per common share:
|
||||||||
Basic
|
$
|
(0.04
|
)
|
$
|
(0.12
|
)
|
||
Diluted
|
$
|
(0.04
|
)
|
$
|
(0.12
|
)
|
||
Shares used in computing loss per common share:
|
||||||||
Basic
|
30,703,501
|
4,371,369
|
||||||
Diluted
|
30,703,501
|
4,371,369
|
||||||
Loss per Preferred Series C share basic and diluted
|
$
|
(14.72
|
)
|
$
|
(43.57
|
)
|
||
Shares used in computing loss per basic and diluted Preferred Series C Shares
|
7,944
|
36,002
|
Convertible
Preferred Stock – Series C
|
Common Stock
|
Additional Paid-In
|
Accumulated
|
|||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Deficit
|
Total
|
||||||||||||||||||||||
BALANCE, January 1, 2018
|
36,182
|
$
|
4
|
4,304,425
|
$
|
4
|
$
|
223,829
|
$
|
(203,957
|
)
|
$
|
19,880
|
|||||||||||||||
Cumulative accounting adjustment from adoption of new standard net of tax
|
-
|
-
|
-
|
-
|
-
|
(234
|
)
|
(234
|
)
|
|||||||||||||||||||
Cumulative accounting adjustment from adoption of new standard net of tax (Note 1)
|
2,614
|
(2,547
|
)
|
67
|
||||||||||||||||||||||||
Stock-based compensation
|
-
|
-
|
-
|
-
|
19
|
-
|
19
|
|||||||||||||||||||||
Conversion of convertible preferred stock into common stock
|
(202
|
)
|
-
|
75,000
|
-
|
-
|
-
|
-
|
||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
(2,081
|
)
|
(2,081
|
)
|
|||||||||||||||||||
BALANCE, March 31, 2018
|
35,980
|
$
|
4
|
4,379,425
|
$
|
4
|
$
|
226,462
|
$
|
(208,819
|
)
|
$
|
17,651
|
|||||||||||||||
Convertible
Preferred Stock- Series C
|
Common Stock
|
Additional Paid-In
|
Accumulated
|
|||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Deficit
|
Total
|
||||||||||||||||||||||
BALANCE, January 1, 2019
|
9,968
|
$
|
1
|
29,943,086
|
$
|
30
|
$
|
241,988
|
$
|
(210,771
|
)
|
$
|
31,248
|
|||||||||||||||
Stock-based compensation
|
-
|
-
|
-
|
-
|
323
|
-
|
323
|
|||||||||||||||||||||
Conversion of convertible preferred stock into common stock
|
(3,090
|
)
|
-
|
1,148,698
|
1
|
(1
|
)
|
-
|
-
|
|||||||||||||||||||
Exercise of options
|
-
|
-
|
28,824
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
(1,333
|
)
|
(1,333
|
)
|
|||||||||||||||||||
BALANCE, March 31, 2019
|
6,878
|
$
|
1
|
31,120,608
|
$
|
31
|
$
|
242,310
|
$
|
(212,104
|
)
|
$
|
30,238
|
For the Three Months Ended
March 31,
|
||||||||
2019
|
2018
|
|||||||
Cash Flows From Operating Activities:
|
||||||||
Net loss
|
$
|
(1,333
|
)
|
$
|
(2,081
|
)
|
||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
1,204
|
1,463
|
||||||
Amortization of right-of-use asset
|
93
|
-
|
||||||
Provision for doubtful accounts
|
(7
|
)
|
-
|
|||||
Loss on disposal of property and equipment and lasers placed in service
|
22
|
182
|
||||||
Loss on intangible assets from cancellation of distributor rights agreement
|
-
|
226
|
||||||
Stock-based compensation
|
323
|
19
|
||||||
Deferred taxes
|
(42
|
)
|
40
|
|||||
Amortization of debt discount
|
7
|
19
|
||||||
Amortization of deferred financing costs
|
27
|
20
|
||||||
Change in fair value of warrant liability
|
-
|
(1
|
)
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(175
|
)
|
650
|
|||||
Inventories
|
(327
|
)
|
(20
|
)
|
||||
Prepaid expenses and other assets
|
142
|
(669
|
)
|
|||||
Accounts payable
|
281
|
381
|
||||||
Other accrued liabilities
|
224
|
(16
|
)
|
|||||
Other liabilities
|
9
|
227
|
||||||
Operating lease liabilities
|
(76
|
)
|
-
|
|||||
Deferred revenues
|
(36
|
)
|
(380
|
)
|
||||
Net cash provided by operating activities
|
336
|
60
|
||||||
Cash Flows From Investing Activities:
|
||||||||
Lasers placed-in-service
|
(434
|
)
|
(375
|
)
|
||||
Purchases of property and equipment
|
-
|
(6
|
)
|
|||||
Payments on distributor rights liability
|
-
|
(24
|
)
|
|||||
Net cash used in investing activities
|
(434
|
)
|
(405
|
)
|
||||
Cash Flows From Financing Activities:
|
||||||||
Advance fees related to equity financing
|
-
|
(202
|
)
|
|||||
Payments on notes payable
|
-
|
(105
|
)
|
|||||
Net cash used in financing activities
|
-
|
(307
|
)
|
|||||
Net decrease in cash and cash equivalents
|
(98
|
)
|
(652
|
)
|
||||
Cash and cash equivalents, beginning of period
|
16,487
|
4,069
|
||||||
Cash and cash equivalents, end of period
|
$
|
16,389
|
$
|
3,417
|
||||
Supplemental information of cash and non-cash transactions:
|
||||||||
Cash paid for interest
|
$
|
201
|
$
|
276
|
||||
Lease liabilities arising from obtaining right-of-use assets
|
$
|
848
|
$
|
-
|
||||
|
•
|
Level 1 – unadjusted quoted prices are available in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date.
|
|
•
|
Level 2 – pricing inputs are other than quoted prices in active markets that are directly observable for the asset or liability or indirectly observable through corroboration with
observable market data.
|
|
•
|
Level 3 – pricing inputs are unobservable for the non-financial asset or liability and only used when there is little, if any, market activity for the non-financial asset or liability at
the measurement date. The inputs into the determination of fair value require significant management judgment or estimation. Fair value is determined using comparable market transactions and other valuation methodologies, adjusted as
appropriate for liquidity, credit, market and/or other risk factors.
|
Issuance Date
|
December 31, 2018
|
Increase in
Fair Value
|
March 31, 2019
|
|||||||||
October 31, 2013
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
$
|
-
|
$
|
-
|
$
|
-
|
Issuance Date
|
January 1, 2018
|
Decrease in
Fair Value
|
March 31, 2018
|
|||||||||
October 31, 2013
|
$
|
2
|
$
|
(1
|
)
|
$
|
1
|
|||||
February 5, 2014
|
1
|
-
|
1
|
|||||||||
$
|
3
|
$
|
(1
|
)
|
$
|
2
|
Three Months Ended
March 31, 2019
|
Three Months Ended
March 31, 2018
|
|||||||||||||||
Common Stock
|
Series C
Convertible Preferred Stock
|
Common
Stock
|
Series C
Convertible Preferred Stock
|
|||||||||||||
Loss attributable to each class
|
$
|
(1,216
|
)
|
$
|
(117
|
)
|
$
|
(512
|
)
|
$
|
(1,569
|
)
|
||||
Weighted average number of shares outstanding during the period
|
30,703,501
|
7,944
|
4,371,369
|
36,002
|
||||||||||||
Basic and Diluted loss per share
|
$
|
(0.04
|
)
|
$
|
(14.72
|
)
|
$
|
(0.12
|
)
|
$
|
(43.57
|
)
|
|
Three Months Ended
March 31,
|
|||
|
|
2019
|
|
2018
|
Common stock purchase warrants
|
|
2,233,192
|
|
2,406,625
|
Restricted stock units
|
129,576
|
-
|
||
Common stock options
|
|
4,321,932
|
|
876,127
|
Total
|
|
6,684,700
|
|
3,282,752
|
For the Three Months Ended
March 31, 2018
|
||||||||||||
Balances prior to
Adoption of
ASU 2017-11
|
Balances after
the Adoption of
ASU 2017-11
|
Effect of
Adoption
Higher/(Lower)
|
||||||||||
Statement of Operations
|
||||||||||||
Change in fair value of warrant liability gain (loss)
|
$
|
40
|
$
|
1
|
$
|
(39
|
)
|
|||||
Balance Sheet
|
||||||||||||
Fair value of warrant liability
|
$
|
24
|
$
|
2
|
$
|
(22
|
)
|
•
|
On March 30, 2018 the Company entered into a Stock Purchase Agreement (the “Accelmed SPA”) and a Registration Rights Agreement with Accelmed Growth Partners L.P. (“Accelmed”) investing $13,000 into the
Company at a price per share of $1.08; upon closing Accelmed received 12,037,037 shares of its common stock.
|
•
|
In connection with the Accelmed investment, the Company entered into two separate stock purchase agreements, each for approximately $1,000 with its then current shareholders, Broadfin Capital (“Broadfin”)
and Sabby Management (“Sabby”). Upon closing of these transactions, each of Sabby and Broadfin received 925,926 shares of the Company’s common stock at a price per share of $1.08.
|
•
|
Two separate subscription agreements were also executed on in connection with the Accelmed investment: (i) a subscription agreement with Gohan Investments, Ltd. for $1,000 to purchase 925,926 shares of the
Company’s common stock at $1.08 per share; and (ii) a subscription agreement with Dr. Dolev Rafaeli, the CEO of the Company effective May 29, 2018, for $1,000 to purchase 925,926 shares of the Company’s common stock at $1.08 per share.
|
Three Months Ended March 31, 2019
|
||||||||||||
Dermatology Recurring Procedures
|
Dermatology Procedures Equipment
|
TOTAL
|
||||||||||
Domestic
|
$
|
5,312
|
$
|
324
|
$
|
5,636
|
||||||
Foreign
|
-
|
1,847
|
1,847
|
|||||||||
Total
|
$
|
5,312
|
$
|
2,171
|
$
|
7,483
|
||||||
Three Months Ended March 31, 2018
|
||||||||||||
Dermatology Recurring Procedures
|
Dermatology Procedures Equipment
|
TOTAL
|
||||||||||
Domestic
|
$
|
4,770
|
$
|
657
|
$
|
5,427
|
||||||
Foreign
|
-
|
1,311
|
1,311
|
|||||||||
Total
|
$
|
4,770
|
$
|
1,968
|
$
|
6,738
|
||||||
March 31, 2019
|
December 31, 2018
|
|||||||
Raw materials and work in progress
|
$
|
2,872
|
$
|
2,442
|
||||
Finished goods
|
249
|
352
|
||||||
Total inventories
|
$
|
3,121
|
$
|
2,794
|
March 31, 2019
|
December 31, 2018
|
|||||||
Lasers placed-in-service
|
$
|
18,822
|
$
|
18,515
|
||||
Equipment, computer hardware and software
|
141
|
168
|
||||||
Furniture and fixtures
|
124
|
124
|
||||||
Leasehold improvements
|
26
|
26
|
||||||
19,113
|
18,833
|
|||||||
Accumulated depreciation and amortization
|
(14,151
|
)
|
(13,532
|
)
|
||||
Property and equipment, net
|
$
|
4,962
|
$
|
5,301
|
Balance
|
Accumulated
Amortization
|
Intangible
assets, net
|
||||||||||
Core technology
|
$
|
5,700
|
$
|
(2,138
|
)
|
$
|
3,562
|
|||||
Product technology
|
2,000
|
(1,500
|
)
|
500
|
||||||||
Customer relationships
|
6,900
|
(2,587
|
)
|
4,313
|
||||||||
Tradenames
|
1,500
|
(563
|
)
|
937
|
||||||||
$
|
16,100
|
$
|
(6,788
|
)
|
$
|
9,312
|
Remaining 2019
|
$
|
1,357
|
||
2020
|
1,610
|
|||
2021
|
1,410
|
|||
2022
|
1,410
|
|||
2023
|
1,410
|
|||
Thereafter
|
2,115
|
|||
Total
|
$
|
9,312
|
March 31, 2019
|
December 31, 2018
|
|||||||
Accrued warranty, current
|
$
|
183
|
$
|
156
|
||||
Accrued compensation, including commissions and vacation
|
1,017
|
1,275
|
||||||
Accrued state sales, use and other taxes
|
2,840
|
2,719
|
||||||
Accrued professional fees and other accrued liabilities
|
684
|
350
|
||||||
Total other accrued liabilities
|
$
|
4,724
|
$
|
4,500
|
March 31,
|
||||||||
2019
|
2018
|
|||||||
Accrual at beginning of year
|
$
|
238
|
$
|
178
|
||||
Additions charged to warranty expense
|
68
|
63
|
||||||
Expiring warranties/claimed satisfied
|
(34
|
)
|
(46
|
)
|
||||
Total
|
272
|
195
|
||||||
Less: current portion
|
(183
|
)
|
(120
|
)
|
||||
Total long-term accrued warranty costs
|
$
|
89
|
$
|
75
|
March 31, 2019
|
December 31, 2018
|
|||||||
Term note, net of debt discount of $103 and $110 respectively; and deferred financing cost of $37 and $64, respectively
|
$
|
7,431
|
$
|
7,397
|
||||
Less: current portion
|
(1,010
|
)
|
(252
|
)
|
||||
Total long-term debt
|
$
|
6,421
|
$
|
7,145
|
For the Year ending
December 31,
|
||||
Remaining in 2019
|
$
|
252
|
||
2020
|
3,028
|
|||
2021
|
3,028
|
|||
2022
|
1,263
|
|||
$
|
7,571
|
Issue Date
|
Expiration Date
|
Total Warrants
|
Exercise Price
|
|||||||
October 31, 2013*
|
4/30/2019
|
137,143
|
$
|
3.75
|
||||||
July 24, 2014
|
7/24/2019
|
1,239,769
|
$
|
3.75 - $ 12.25
|
||||||
June 22, 2015
|
6/22/2020
|
600,000
|
$
|
3.75
|
||||||
December 30, 2015
|
12/30/2020
|
130,089
|
$
|
5.65
|
||||||
January 29, 2016
|
1/29/2021
|
19,812
|
$
|
5.30
|
||||||
2,126,813
|
Dermatology
Recurring
Procedures
|
Dermatology
Procedures
Equipment
|
TOTAL
|
||||||||||
Revenues
|
$
|
5,312
|
$
|
2,171
|
$
|
7,483
|
||||||
Costs of revenues
|
1,793
|
1,081
|
2,874
|
|||||||||
Gross profit
|
3,519
|
1,090
|
4,609
|
|||||||||
Gross profit %
|
66.2
|
%
|
50.2
|
%
|
61.6
|
%
|
||||||
Allocated operating expenses:
|
||||||||||||
Engineering and product development
|
242
|
62
|
304
|
|||||||||
Selling and marketing expenses
|
2,768
|
298
|
3,066
|
|||||||||
Unallocated operating expenses
|
-
|
-
|
2,480
|
|||||||||
3,010
|
360
|
5,850
|
||||||||||
Income (loss) from operations
|
509
|
730
|
(1,241
|
)
|
||||||||
Interest expense, net
|
-
|
-
|
(135
|
)
|
||||||||
Income (loss) before income taxes
|
$
|
509
|
$
|
730
|
$
|
(1,376
|
)
|
Dermatology
Recurring
Procedures
|
Dermatology
Procedures
Equipment
|
TOTAL
|
||||||||||
Revenues
|
$
|
4,770
|
$
|
1,968
|
$
|
6,738
|
||||||
Costs of revenues
|
1,989
|
1,356
|
3,345
|
|||||||||
Gross profit
|
2,781
|
612
|
3,393
|
|||||||||
Gross profit %
|
58.3
|
%
|
31.1
|
%
|
50.4
|
%
|
||||||
Allocated operating expenses:
|
||||||||||||
Engineering and product development
|
274
|
64
|
338
|
|||||||||
Selling and marketing expenses
|
2,216
|
655
|
2,871
|
|||||||||
Unallocated operating expenses
|
-
|
-
|
1,884
|
|||||||||
2,490
|
719
|
5,093
|
||||||||||
Income (loss) from operations
|
291
|
(107
|
)
|
(1,700
|
)
|
|||||||
Interest expense, net
|
-
|
-
|
(363
|
)
|
||||||||
Change in fair value of warrants
|
-
|
-
|
1
|
|||||||||
Other income, net
|
-
|
-
|
21
|
|||||||||
Income (loss) before income taxes
|
$
|
291
|
$
|
(107
|
)
|
$
|
(2,041
|
)
|
For the year ending December 31,
|
Amount
|
|||
Remaining in 2019
|
$
|
293
|
||
2020
|
234
|
|||
2021
|
229
|
|||
2022
|
134
|
|||
Total remaining lease payments
|
890
|
|||
Less: imputed interest
|
(118
|
)
|
||
Total lease liabilities
|
$
|
772
|
•
|
XTRAC® Excimer Laser. XTRAC received FDA clearance in 2000 and has since become a widely recognized treatment among dermatologists for psoriasis and other skin
diseases. The XTRAC System delivers ultra-narrowband ultraviolet B (“UVB”) light to affected areas of skin. Following a series of treatments typically performed twice weekly, psoriasis remission can
be achieved, and vitiligo patches can be re-pigmented. XTRAC is endorsed by the National Psoriasis Foundation, and its use for psoriasis is covered by nearly all major insurance companies, including Medicare. We estimate that more than half
of all major insurance companies now offer reimbursement for vitiligo as well, a figure that is increasing.
|
|
•
|
In the third quarter of 2018, we announced the FDA granted clearance for our Multi Micro Dose (MMD) tip for our XTRAC excimer laser. The MMD Tip accessory is indicated for use in conjunction with the XTRAC
laser system to filter the Narrow Band UVB (“NB-UVB”) light at delivery in order to calculate and individualize the maximum non-blistering dose for a particular patient.
|
|
•
|
In the third quarter of 2018, we announced the launch of our S3®, the next generation XTRAC. The S3 is smaller, faster and has a smart user interface.
|
|
•
|
VTRAC® Lamp. VTRAC received FDA clearance in 2005 and provides targeted therapeutic efficacy demonstrated by excimer technology with the simplicity of design and
reliability of a lamp system.
|
|
•
|
STRATAPEN®. STRATAPEN uses the patent-pending Biolock cartridge. The Biolock needle depth can be adjusted during the course of the procedure to accommodate different
treatment areas and can easily maneuver around facial contours and delicate features, such as the eyes, nose and mouth.
|
For the Three Months Ended March 31,
|
||||||||
2019
|
2018
|
|||||||
Dermatology Recurring Procedures
|
$
|
5,312
|
$
|
4,770
|
||||
Dermatology Procedures Equipment
|
2,171
|
1,968
|
||||||
Total Revenues
|
$
|
7,483
|
$
|
6,738
|
For the Three Months Ended March 31,
|
||||||||
2019
|
2018
|
|||||||
Dermatology Recurring Procedures
|
$
|
1,793
|
$
|
1,989
|
||||
Dermatology Procedures Equipment
|
1,081
|
1,356
|
||||||
Total Cost of Revenues
|
$
|
2,874
|
$
|
3,345
|
Company Profit Analysis
|
For the Three Months Ended March 31,
|
|||||||
2019
|
2018
|
|||||||
Revenues
|
$
|
7,483
|
$
|
6,738
|
||||
Percent increase
|
11.1
|
%
|
||||||
Cost of revenues
|
2,874
|
3,345
|
||||||
Percent decrease
|
(14.1
|
%)
|
||||||
Gross profit
|
$
|
4,609
|
$
|
3,393
|
||||
Gross profit percentage
|
61.6
|
%
|
50.4
|
%
|
Dermatology Recurring Procedures
|
For the Three Months Ended March 31,
|
|||||||
2019
|
2018
|
|||||||
Revenues
|
$
|
5,312
|
$
|
4,770
|
||||
Percent increase
|
11.4
|
%
|
||||||
Cost of revenues
|
1,793
|
1,989
|
||||||
Percent decrease
|
(10.0
|
%)
|
||||||
Gross profit
|
$
|
3,519
|
$
|
2,781
|
||||
Gross profit percentage
|
66.2
|
%
|
58.3
|
%
|
Dermatology Procedures Equipment
|
For the Three Months Ended March 31,
|
|||||||
2019
|
2018
|
|||||||
Revenues
|
$
|
2,171
|
$
|
1,968
|
||||
Percent increase
|
10.3
|
%
|
||||||
Cost of revenues
|
1,081
|
1,356
|
||||||
Percent decrease
|
(20.3
|
%)
|
||||||
Gross profit
|
$
|
1,090
|
$
|
612
|
||||
Gross profit percentage
|
50.2
|
%
|
31.1
|
%
|
For the Three Months Ended March 31,
|
||||||||
2019
|
2018
|
|||||||
Net Loss
|
$
|
(1,333
|
)
|
$
|
(2,081
|
)
|
||
Adjustments:
|
||||||||
Depreciation/amortization*
|
1,297
|
1,463
|
||||||
Income taxes
|
(43
|
)
|
40
|
|||||
Interest expense, net
|
135
|
363
|
||||||
Non-GAAP EBITDA
|
56
|
(215
|
)
|
|||||
Stock compensation
|
323
|
19
|
||||||
Change in fair value of warrants
|
-
|
(1
|
)
|
|||||
Impairment of distributors rights agreement
|
-
|
226
|
||||||
Non-GAAP adjusted EBITDA
|
$
|
379
|
$
|
29
|
•
|
forecasts of future business performance, consumer trends and macro-economic conditions;
|
•
|
descriptions of market and/or competitive conditions;
|
•
|
descriptions of plans or objectives of management for future operations, products or services;
|
•
|
our estimates regarding the sufficiency of our cash resources, expenses, capital requirements and needs for additional financing and our ability to obtain additional
financing;
|
•
|
our ability to protect our intellectual property and operate our business without infringing upon the intellectual property rights of others;
|
•
|
our ability to obtain and maintain regulatory approvals of our products;
|
•
|
anticipated results of existing or future litigation; and
|
•
|
descriptions or assumptions underlying or related to any of the above items.
|
3.1
|
||
3.2
|
||
3.3
|
||
3.4
|
||
3.5
|
||
3.6
|
||
3.7
|
||
3.8
|
||
3.9
|
10.1
|
Fifth Amendment to Standard Industrial/Commercial Multi-Tenant Lease between FR National Life, LLC and Strata Skin
Sciences, Inc. for office and manufacturing space at 2375 and 2365 Camino Vida Roble Carlsbad, California 92011 (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K filed on May 6, 2019).
|
|
31.1
|
||
31.2
|
||
32.1*
|
||
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Schema
|
|
101.CAL
|
XBRL Taxonomy Calculation Linkbase
|
|
101.DEF
|
XBRL Taxonomy Definition Linkbase
|
|
101.LAB
|
XBRL Taxonomy Label Linkbase
|
|
101.PRE
|
XBRL Taxonomy Presentation Linkbase
|
*
|
The certifications attached as Exhibit 32.1 accompany this Quarterly Report on Form 10-Q pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not
be deemed “filed” by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
|
|
STRATA SKIN SCIENCES, INC.
|
|
Date November 8, 2019
|
By:
|
/s/ Dolev Rafaeli
|
|
|
|
Name Dolev Rafaeli
|
|
|
|
Title President & Chief Executive Officer
|
|
Date November 8, 2019
|
By:
|
/s/ Matthew C. Hill
|
|
|
|
Name Matthew C. Hill
|
|
|
|
Title Chief Financial Officer
|
|
(1) |
I have reviewed this quarterly report on Form 10-Q of STRATA Skin Sciences, Inc.;
|
(2) |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
(3) |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
(4) |
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter
(the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(5) |
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to
adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial
reporting.
|
Date: November 8, 2019
|
By:
|
/s/ Dolev Rafaeli
|
|
|
|
Name: Dolev Rafaeli
|
|
|
|
Title: Chief Executive Officer
|
|
(1) |
I have reviewed this quarterly report on Form 10-Q of STRATA Skin Sciences, Inc.;
|
(2) |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
(3) |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
(4) |
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter
(the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(5) |
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to
adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial
reporting.
|
Dated: November 8, 2019
|
By:
|
/s/ Matthew C. Hill
|
|
Matthew C. Hill
|
|||
Chief Financial Officer
|
|
1.
|
The Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, to which this Certification is attached as Exhibit 32.1 (the
“Periodic Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended, and
|
|
2.
|
The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of
the Company.
|
|
|
|
|
|
|
|
/s/ Dolev Rafaeli
|
|
|
|
|
|
Name: Dolev Rafaeli
|
|
|
|
|
Title: Chief Executive Officer
|
|
|
|
|
|
|
|
|
/s/ Matthew C. Hill
|
|
|
|
|
|
Name: Matthew C. Hill
|
|
|
|
|
Title: Chief Financial Officer
|
|
(1)
|
This certification accompanies the Quarterly Report on Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange
Commission and is not to be incorporated by reference into any filing of STRATA Skin Sciences, Inc. under the Securities Act of 1933, as amended, or the Exchange Act (whether made before or after the date of the Form 10-Q), irrespective of
any general incorporation language contained in such filing. A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to STRATA Skin Sciences, Inc. and will be retained by
STRATA Skin Sciences, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
|