UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): March 24, 2021
STRATA SKIN SCIENCES, INC.
(Exact Name of Registrant Specified in Charter)
|
Delaware
|
000-51481
|
13-3986004
|
|
(State or Other
|
(Commission File
|
(I.R.S. Employer
|
|
Jurisdiction of
|
Number)
|
Identification No.)
|
|
Incorporation)
|
|
|
|
|
5 Walnut Grove Drive, Suite 140, Horsham, Pennsylvania
|
19044
|
|
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
|
Registrant's telephone number, including area code: 215-619-3200
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
□
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
□
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Securities registered pursuant to Section 12(b) of the Act:
|
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
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this
chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company □
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new
or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □
Item 2.02. Results of
Operations and Financial Condition.
On March 24, 2021, STRATA Skin Sciences,
Inc. (the “Company”) issued a press release announcing its results of
operations for the fourth fiscal quarter and full year ended December 31, 2020. The full text of such
press release is furnished as Exhibit 99.1 to this report.
The information set forth under this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
Item 7.01. Regulation FD Disclosure.
On March 24, 2021, STRATA Skin Sciences, Inc. (the “Company”) issued a press release announcing its results of operations for the fourth fiscal quarter and full year ended December 31, 2020. The full text of such press release is furnished as Exhibit 99.1 to this report.
The information set forth under this Item 7.01, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following press release is furnished as an exhibit to this Current Report on Form 8-K pursuant to Item 2.02 and shall not be deemed to be “filed”:
99.1 Press Release dated March 24, 2021 issued by STRATA Skin Sciences, Inc.
SIGNATURE
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.
|
|
STRATA SKIN SCIENCES, INC.
|
|
|
|
|
|
|
|
|
Date: March 24, 2021
|
By:
|
/s/ Matthew C. Hill
|
|
|
|
|
Matthew C. Hill
|
|
|
|
|
Chief Financial Officer
|
|
- 2 -
EXHIBIT 99.1
STRATA Skin Sciences Reports Fourth Quarter and
Full Year 2020 Financial Results
HORSHAM, PA, March 24, 2021 -- STRATA Skin Sciences, Inc. (NASDAQ: SSKN) (“STRATA” or the “Company”), a medical technology company dedicated to developing, commercializing, and marketing innovative products for the
treatment of dermatologic conditions, today announced financial results for the quarter and full year ended December 31, 2020.
Full Year 2020 Highlights
|
•
|
Total revenue for the fourth quarter of 2020 was $6.7 million, a decrease of 24.5% over the fourth quarter of 2019
|
|
-
|
Global recurring revenue for the fourth quarter of 2020 was $5.1 million, a 22.7% decrease over the fourth quarter of 2019 and a 32.4% increase over the third quarter of 2020
|
|
-
|
Gross domestic recurring billings were $5.4 million, a 13.7% increase over the third quarter 2020 (See Reconciliation of Non-GAAP measures below)
|
|
•
|
Total gross margins in the fourth quarter of 2020 were 67.6%, a 1.2% decrease over the fourth quarter of 2019
|
|
•
|
Cash, cash equivalents and restricted cash at December 31, 2020 were $18.1 million
|
|
•
|
Concluded the quarter with a global recurring revenue installed base of 860 XTRAC devices, an increase of 30 over the fourth quarter of 2019
|
|
•
|
Results of peer-reviewed study entitled, “Therapies for Psoriasis: Clinical and Economic Comparisons,” published in the Journal of Drugs in
Dermatology; XTRAC® was found to be most effective and economical treatment for plaque psoriasis compared to other therapies
|
|
•
|
Cigna, a global health company insuring over 20 million people in the United States, added medical coverage policy statements, effective September 2020, insuring the previously uncovered condition of
vitiligo
|
“I am excited to join the STRATA Skin Sciences team. There is a large unmet need to treat the estimated 31 million people in the U.S. alone that are affected by psoriasis, vitiligo and atopic dermatitis. I
believe that our XTRAC excimer laser is a clear solution for both patients and providers to safely and effectively treat these conditions,” said Bob Moccia, Chief Executive Officer of STRATA Skin Sciences. “While this past year has been
unquestionably challenging, we plan to continue to focus on driving awareness and improved utilization with recurring revenue, which we believe will lead to durable growth over the long term.”
Fourth Quarter 2020 Financial Results
Revenues for the fourth quarter of 2020 were $6.7 million, as compared to revenues of $8.9 million for the fourth quarter of 2019. Global recurring revenues for the fourth quarter of 2020 were $5.1 million, as
compared to global recurring revenues of $6.6 million for the fourth quarter of 2019. Equipment revenues were $1.6 million for the fourth quarter of 2020, as compared to $2.3 million for the fourth quarter of 2019. Revenues were negatively
impacted by the COVID-19 pandemic.
Gross profit for the fourth quarter of 2020 was $4.5 million, or 67.6% of revenues, as compared to $6.1 million, or 68.8% of revenues, for the fourth quarter of 2019. Gross profit on recurring revenues for the
fourth quarter of 2020 was $3.8 million, or 74.4% of revenues, as compared to $5.0 million, or 76.5% of revenues, for the fourth quarter of 2019. The decrease in gross profit is the result of lower sales due to the effects of the COVID-19
pandemic and unapplied costs partially offset by lower depreciation on laser placements.
Selling and marketing costs for the fourth quarter of 2020 were $2.6 million, as compared to $3.1 million for the fourth quarter of 2019, primarily as a result of cost management due to lower revenue, lower
tradeshow costs, travel, direct to consumer advertising and compensation. General and administrative costs for the fourth quarter of 2020 were $2.0 million, as compared to $2.9 million for the fourth quarter of 2019, as a result of lower
legal, consulting and accounting fees.
Other expense for the fourth quarter of 2020 was $0.02 million, compared to $0.5 million for the fourth quarter of 2019, as a result of lower interest expense and additional cost in 2019 for the extinguishment
of long-term debt.
Net loss for fourth quarter 2020 was $0.4 million, or a loss of $0.01 per basic and diluted common share, as compared to the net loss for the fourth quarter of 2019 of $0.5 million, or a net loss of $0.02 per
basic and diluted common share.
Full Year 2020 Financial Results
Revenues for the full year 2020 were $23.1 million, as compared to revenues of $31.6 million for the full year 2019. Global recurring revenues for the full year 2020 were $17.4 million, as compared to global
recurring revenues of $23.7 million for the full year 2019. Equipment revenues were $5.7 million for the full year 2020, as compared to $7.9 million for the full year 2019.
Gross profit for the full year 2020 was $14.1 million, or 61.2% of revenues, as compared to $20.3 million, or 64.2% of revenues, for the full year 2019. Gross profit on recurring revenues for the full year 2020
was $11.6 million, or 66.5% of revenues, as compared to $16.7 million, or 70.3% of revenues, for the full year 2019. The decrease in gross profit is the result of lower sales due to the effects of the COVID-19 pandemic and unapplied costs
partially offset by lower depreciation on laser placements.
Selling and marketing costs for the full year 2020 were $9.0 million, as compared to $12.0 million for the full year 2019, primarily as a result of cost management due to lower revenue, lower tradeshow costs,
travel, direct to consumer advertising and compensation. General and administrative costs for the full year 2020 were $7.9 million, as compared to $10.3 million for the full year 2019, as a result of lower legal, consulting and accounting
fees.
Other expense for the full year 2020 was $0.06, compared to $0.9 for the full year 2019, as a result of higher interest income, lower interest expense and additional cost in 2019 for the extinguishment of
long-term debt.
Net loss for full year 2020 was $4.4 million, or a loss of $0.13 per basic and diluted common share, as compared to the net loss for the full year 2019 of $3.8 million, or a net loss of $0.11 per basic and
diluted common share.
Webcast and Conference Call Information
STRATA management will host a conference call today, beginning at 4:30 p.m. Eastern. The conference call will be concurrently webcast. The link to the webcast is available on the Company website www.strataskinsciences.com under the investor relations section and will be archived for future reference. To listen to the conference call, please dial 1-877-451-6152 (US/Canada), 1-201-389-0879
(International), or 1 809 406 247 (Israel) and use the conference ID number 13717061.
2
Reconciliation of Non-GAAP Measures
To supplement the Company’s consolidated financial statements, prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company provides certain
non-GAAP measures of financial performance, including non-GAAP adjusted EBITDA and Gross Domestic Recurring Billings.
The Company’s reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but is not a substitute for, nor superior to, GAAP results. These
non-GAAP measures are provided to enhance investors' overall understanding of our current financial performance and to provide further information for comparative purposes.
Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of the Company’s
core operating results and business outlook. In addition, the Company believes non-GAAP measures enhance the comparability of results against prior periods. Reconciliation of the GAAP measures of net loss to non-GAAP measures included in this
press release is as follows (in thousands) (unaudited):
|
For the Three Months Ended
December 31,
|
For the Year Ended
December 31,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Net loss
|
$
|
(443
|
)
|
$
|
(515
|
)
|
$
|
(4,412
|
)
|
$
|
(3,790
|
)
|
||||
|
|
||||||||||||||||
|
Adjustments:
|
||||||||||||||||
|
Income taxes
|
68
|
(38
|
)
|
275
|
(149
|
)
|
||||||||||
|
Depreciation and amortization *
|
876
|
1,144
|
3,911
|
4,821
|
||||||||||||
|
Interest expense, net
|
23
|
82
|
61
|
515
|
||||||||||||
|
Non-GAAP EBITDA
|
524
|
673
|
(165
|
)
|
1,397
|
|||||||||||
|
|
||||||||||||||||
|
Stock-based compensation expense
|
390
|
1,633
|
1,195
|
|||||||||||||
|
Impairment of lasers placed-in-service
|
24
|
24
|
30
|
|||||||||||||
|
Loss on extinguishment of debt
|
-
|
414
|
-
|
414
|
||||||||||||
|
Non-GAAP adjusted EBITDA
|
$
|
938
|
$
|
1,429
|
$
|
1,492
|
$
|
3,036
|
||||||||
3
Gross Domestic Recurring Billings
Gross domestic recurring billings represent the amount invoiced to partner clinics when treatment codes are sold to the physician. It does not include normal GAAP adjustments which are deferred revenue from
prior quarters recorded as revenue in the current quarter, the deferral of revenue from the current quarter recorded as revenue in future quarters, adjustments for co-pay and other discounts. This excludes international recurring revenues.
Gross domestic recurring billings for October, November and December 2020 were $1.6 million, $1.5 million, and $2.3 million, respectively. The total gross domestic recurring billings for the fourth quarter of
2020 was $5.4 million, compared to $6.9 million for the fourth quarter of 2019.
The following is a reconciliation of non-GAAP gross domestic billings to domestic recorded revenue for the fourth quarter of 2020 (in thousands):
|
Gross domestic recurring billings
|
$
|
5,400
|
||
|
Co-Pay adjustments
|
(70
|
)
|
||
|
Other discounts
|
(20
|
)
|
||
|
Deferred revenue from prior quarters
|
1,390
|
|||
|
Deferral of revenue to future quarters
|
(1,800
|
)
|
||
|
GAAP Recorded domestic revenue
|
$
|
4,900
|
About STRATA Skin Sciences, Inc.
STRATA Skin Sciences is a medical technology company in dermatology and plastic surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Its
products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions.
The Company’s proprietary XTRAC excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases which impact over 31 million
patients in the United States alone. The technology is covered by multiple patents.
STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s
partner dermatology clinics.
The XTRAC business has used this proven DTC model to grow its domestic dermatology partner network to over 832 clinics, with a worldwide installed base of over 2,300 devices. The Company is able to offer 90% of DTC
patients an introduction to physicians prescribing a reimbursable solution, using XTRAC, within a 10-mile radius of their house. The Company is a leader in dermatology in-clinic business generation for its partners.
The Company has now introduced its Home by XTRAC™ business, leveraging in-house resources; including DTC advertising, in-house call center and its insurance reimbursement team to provide an at-home,
insurance-reimbursed treatment option for patients with certain skin diseases that do not qualify for in-office treatments.
4
Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements
include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to
generate the growth in its core business, the Company’s ability to develop social media marketing campaigns, the Company’s ability to build a leading franchise in dermatology and aesthetics, and the Company’s ability to develop a home-based
treatment of skin disease are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial,
economic, business, competitive, market, regulatory, adverse market conditions or supply chain interruptions resulting from the coronavirus and political factors or conditions affecting the Company and the medical device industry in general,
future responses to and effects of COVID-19 pandemic, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all these forward-looking statements may prove
to be incorrect or unreliable. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not undertake any obligation to
update or revise these statements to reflect events or circumstances occurring after the date of this press release. The Company urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.
Investor Contact
|
Leigh Salvo
|
||
|
(415) 937-5404
|
||
|
ir@strataskin.com
|
5
STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(unaudited)
|
December 31, 2020
|
December 31, 2019
|
|||||||
|
ASSETS
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$
|
10,604
|
$
|
8,129
|
||||
|
Restricted cash
|
7,508
|
7,500
|
||||||
|
Accounts receivable, net
|
2,944
|
4,386
|
||||||
|
Inventories
|
3,444
|
3,027
|
||||||
|
Prepaid expenses and other current assets
|
331
|
513
|
||||||
|
Total current assets
|
24,831
|
23,555
|
||||||
|
|
||||||||
|
Property and equipment, net
|
5,529
|
5,369
|
||||||
|
Operating lease right-of-use assets
|
988
|
1,314
|
||||||
|
Intangible assets, net
|
6,345
|
7,955
|
||||||
|
Goodwill
|
8,803
|
8,803
|
||||||
|
Other assets
|
282
|
347
|
||||||
|
Total assets
|
$
|
46,778
|
$
|
47,343
|
||||
|
|
||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
|
Current liabilities:
|
||||||||
|
Note payable
|
$
|
7,275
|
$
|
7,275
|
||||
|
Current portion of long-term debt
|
1,478
|
-
|
||||||
|
Accounts payable
|
2,764
|
1,880
|
||||||
|
Other accrued liabilities
|
4,690
|
5,134
|
||||||
|
Deferred revenues
|
2,262
|
2,832
|
||||||
|
Current portion of operating lease liabilities
|
369
|
313
|
||||||
|
Total current liabilities
|
18,838
|
17,434
|
||||||
|
|
||||||||
|
Long-term liabilities:
|
||||||||
|
Long-term debt, net
|
1,050
|
-
|
||||||
|
Long-term operating lease liabilities; net
|
710
|
1,078
|
||||||
|
Deferred tax liability
|
254
|
-
|
||||||
|
Other liabilities
|
34
|
178
|
||||||
|
Total liabilities
|
20,886
|
18,690
|
||||||
|
|
||||||||
|
Commitments and contingencies (see Note 11)
|
||||||||
|
|
||||||||
|
Stockholders' equity:
|
||||||||
|
Series C Convertible Preferred Stock, $.10 par value, 10,000,000 shares authorized; 0 and 2,103 shares issued and outstanding as of December 31, 2020 and 2019, respectively
|
-
|
1
|
||||||
|
Common Stock, $.001 par value, 150,000,000 shares authorized; 33,801,045 and 32,932,273 shares issued and outstanding as of December 31, 2020 and 2019, respectively
|
34
|
33
|
||||||
|
Additional paid-in capital
|
244,831
|
243,180
|
||||||
|
Accumulated deficit
|
(218,973
|
)
|
(214,561
|
)
|
||||
|
Total stockholders' equity
|
25,892
|
28,653
|
||||||
|
Total liabilities and stockholders’ equity
|
$
|
46,778
|
$
|
47,343
|
||||
6
STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(unaudited)
|
For the Three Months Ended December 31,
|
||||||||
|
2020
|
2019
|
|||||||
|
Revenues, net
|
$
|
6,717
|
$
|
8,898
|
||||
|
Cost of revenues
|
2,176
|
2,772
|
||||||
|
Gross profit
|
4,541
|
6,126
|
||||||
|
Operating expenses:
|
||||||||
|
Engineering and product development
|
324
|
214
|
||||||
|
Selling and marketing
|
2,592
|
3,092
|
||||||
|
General and administrative
|
1,977
|
2,877
|
||||||
|
|
4,893
|
6,183
|
||||||
|
Loss from operations
|
(352
|
)
|
(57
|
)
|
||||
|
Other (expense) income, net:
|
||||||||
|
Interest expense, net
|
(23
|
)
|
(82
|
)
|
||||
|
Loss on extinguishment of debt
|
-
|
(414
|
)
|
|||||
|
|
(23
|
)
|
(496
|
)
|
||||
|
Loss before income taxes
|
(375
|
)
|
(553
|
)
|
||||
|
Income tax (expense) benefit
|
(68
|
)
|
38
|
|||||
|
Net loss
|
$
|
(443
|
)
|
$
|
(515
|
)
|
||
|
Loss attributable to common shares
|
$
|
(443
|
)
|
(503
|
)
|
|||
|
Loss attributable to Preferred Series C shares
|
$
|
-
|
(12
|
)
|
||||
|
Loss Earnings per common share:
|
||||||||
|
Basic
|
$
|
(0.01
|
)
|
$
|
(0.02
|
)
|
||
|
Diluted
|
$
|
(0.01
|
)
|
$
|
(0.02
|
)
|
||
|
|
||||||||
|
Loss per Preferred Series C share - basic and diluted
|
$
|
-
|
$
|
(5.75
|
)
|
|||
7
STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(unaudited)
|
For the Year Ended December 31,
|
||||||||
|
2020
|
2019
|
|||||||
|
Revenues, net
|
$
|
23,090
|
$
|
31,586
|
||||
|
Cost of revenues
|
8,956
|
11,316
|
||||||
|
Gross profit
|
14,134
|
20,270
|
||||||
|
Operating expenses:
|
||||||||
|
Engineering and product development
|
1,274
|
1,002
|
||||||
|
Selling and marketing
|
9,038
|
12,003
|
||||||
|
General and administrative
|
7,898
|
10,275
|
||||||
|
|
18,210
|
23,280
|
||||||
|
Loss from operations
|
(4,076
|
)
|
(3,010
|
)
|
||||
|
Other (expense) income, net:
|
||||||||
|
Interest expense, net
|
(61
|
)
|
(515
|
)
|
||||
|
Loss on extinguishment of debt
|
-
|
(414
|
)
|
|||||
|
|
(61
|
)
|
(929
|
)
|
||||
|
Loss before income taxes
|
(4,137
|
)
|
(3,939
|
)
|
||||
|
Income tax (expense) benefit
|
(275
|
)
|
149
|
|||||
|
Net loss
|
$
|
(4,412
|
)
|
$
|
(3,790
|
)
|
||
|
Loss attributable to common shares
|
$
|
(4,394
|
)
|
$
|
(3,597
|
)
|
||
|
Loss attributable to Preferred Series C shares
|
$
|
(18
|
)
|
$
|
(193
|
)
|
||
|
Loss per common share:
|
||||||||
|
Basic
|
$
|
(0.13
|
)
|
$
|
(0.11
|
)
|
||
|
Diluted
|
$
|
(0.13
|
)
|
$
|
(0.11
|
)
|
||
|
Shares used in computing loss per common share:
|
||||||||
|
Basic
|
33,609,922
|
31,978,665
|
||||||
|
Diluted
|
33,609,922
|
31,978,665
|
||||||
|
|
||||||||
|
Loss per Preferred Series C share - basic and diluted
|
$
|
(48.59
|
)
|
$
|
(42.24
|
)
|
||
|
Shares used in computing loss per basic and diluted Preferred Series C shares
|
368
|
4,577
|
||||||
8
STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
(In thousands, except share amounts)
(unaudited)
|
Convertible Preferred Stock – Series C
|
Common Stock
|
Additional Paid-
|
Accumulated
|
|||||||||||||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
In Capital
|
Deficit
|
Total
|
||||||||||||||||||||||
|
BALANCE, JANUARY 1, 2019
|
9,968
|
$
|
1
|
29,943,086
|
$
|
30
|
$
|
241,988
|
$
|
(210,771
|
)
|
$
|
31,248
|
|||||||||||||||
|
Stock-based compensation
|
-
|
-
|
-
|
-
|
1,195
|
-
|
1,195
|
|||||||||||||||||||||
|
Conversion of convertible preferred stock into common stock
|
(7,865
|
)
|
-
|
2,923,791
|
3
|
(3
|
)
|
-
|
-
|
|||||||||||||||||||
|
Exercise of stock options
|
-
|
-
|
36,410
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
|
Issuance of restricted stock
|
-
|
-
|
28,986
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
|
Net loss
|
-
|
-
|
-
|
-
|
-
|
(3,790
|
)
|
(3,790
|
)
|
|||||||||||||||||||
|
BALANCE, DECEMBER 31, 2019
|
2,103
|
$
|
1
|
32,932,273
|
$
|
33
|
$
|
243,180
|
$
|
(214,561
|
)
|
$
|
28,653
|
|||||||||||||||
|
Stock-based compensation
|
-
|
-
|
-
|
-
|
1,633
|
-
|
1,633
|
|||||||||||||||||||||
|
Conversion of grantable preferred stock into common stock
|
(2,103
|
)
|
(1
|
)
|
782,089
|
1
|
-
|
-
|
-
|
|||||||||||||||||||
|
Exercise of stock options
|
-
|
-
|
15,000
|
-
|
18
|
-
|
18
|
|||||||||||||||||||||
|
Issuance of restricted stock
|
-
|
-
|
71,683
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
|
Net loss
|
-
|
-
|
-
|
-
|
-
|
(4,412
|
)
|
(4,412
|
)
|
|||||||||||||||||||
|
BALANCE, DECEMBER 31, 2020
|
-
|
$
|
-
|
33,801,045
|
$
|
34
|
$
|
244,831
|
$
|
(218,973
|
)
|
$
|
25,892
|
|||||||||||||||
9
STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
|
For the Year Ended December 31,
|
||||||||
|
2020
|
2019
|
|||||||
|
Cash Flows From Operating Activities:
|
||||||||
|
Net loss
|
$
|
(4,412
|
)
|
$
|
(3,790
|
)
|
||
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
3,585
|
4,503
|
||||||
|
Amortization of right-of-use assets
|
326
|
318
|
||||||
|
Provision for doubtful accounts
|
90
|
43
|
||||||
|
Impairment of lasers placed-in-service
|
24
|
30
|
||||||
|
Stock-based compensation
|
1,633
|
1,195
|
||||||
|
Deferred taxes
|
254
|
(111
|
)
|
|||||
|
Amortization of deferred financing costs and debt discount
|
-
|
174
|
||||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Accounts receivable
|
1,352
|
(1,036
|
)
|
|||||
|
Inventories
|
(417
|
)
|
(233
|
)
|
||||
|
Prepaid expenses and other assets
|
247
|
104
|
||||||
|
Accounts payable
|
884
|
116
|
||||||
|
Other accrued liabilities
|
(444
|
)
|
634
|
|||||
|
Other liabilities
|
(144
|
)
|
(210
|
)
|
||||
|
Operating lease liabilities
|
(312
|
)
|
(241
|
)
|
||||
|
Deferred revenues
|
(570
|
)
|
733
|
|||||
|
Net cash provided by operating activities
|
2,096
|
2,229
|
||||||
|
|
||||||||
|
Cash Flows From Investing Activities:
|
||||||||
|
Lasers placed-in-service
|
(2,133
|
)
|
(2,676
|
)
|
||||
|
Purchases of property and equipment
|
(26
|
)
|
(115
|
)
|
||||
|
Net cash used in investing activities
|
(2,159
|
)
|
(2,791
|
)
|
||||
10
STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(continued)
(In thousands)
(unaudited)
|
For the Year Ended December 31,
|
||||||||
|
Cash Flows From Financing Activities:
|
2020
|
2019
|
||||||
|
Proceeds from exercise of stock options
|
$
|
18
|
$
|
-
|
||||
|
Repayments of long-term debt
|
-
|
(7,571
|
)
|
|||||
|
Proceeds on notes payable
|
2,528
|
7,275
|
||||||
|
Net cash provided by (used in) financing activities
|
2,546
|
(296
|
)
|
|||||
|
|
||||||||
|
Net increase (decrease) in cash and cash equivalents and restricted cash
|
2,483
|
(858
|
)
|
|||||
|
Cash and cash equivalents and restricted cash, beginning of period
|
15,629
|
16,487
|
||||||
|
Cash and cash equivalents and restricted cash, end of period
|
$
|
18,112
|
$
|
15,629
|
||||
|
Cash and cash equivalents
|
$
|
10,604
|
$
|
8,129
|
||||
|
Restricted cash
|
7,508
|
7,500
|
||||||
|
$
|
18,112
|
$
|
15,629
|
|||||
11