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(State or Other Jurisdiction of Incorporation)
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(I.R.S. Employer Identification No.)
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
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Trading
Symbol(s)
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Name of each exchange on which registered
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STRATA SKIN SCIENCES, INC.
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Date: March 21, 2022
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By:
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/s/ Christopher Lesovitz
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Christopher Lesovitz
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Chief Financial Officer
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•
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Revenue in the fourth quarter of 2021 was a record $9.1 million, an increase of 35% over the fourth quarter of 2020
|
|
-
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Global recurring revenue was $6.7 million, a 32% increase over the fourth quarter of 2020
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-
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Gross domestic recurring billings were $6.1 million, a 14% increase over the fourth quarter 2020 (See Reconciliation of Non-GAAP measures
below)
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•
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Revenue for the full year 2021 was $30.0 million, a 30% increase over the full year 2020
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-
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Global recurring revenue was $22.5 million, a 29% increase over the full year 2020
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-
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Gross domestic recurring billings were $22.1 million, a 31% increase over the full year 2020 (See Reconciliation of Non-GAAP measures below)
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•
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Cash, cash equivalents and restricted cash at December 31, 2021 were $12.6 million
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•
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Domestic installed base increased to 890 XTRAC devices at December 31, 2021
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•
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Entered the estimated $5.5 billion acne treatment market through the acquisition of Theraclear® from Theravant Corporation
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•
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Launched XTRAC Momentum™ 1.0 and announced first installation in the U.S in January 2022
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•
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Signed a distribution agreement enabling the Company to supply its XTRAC® excimer lasers in Israel
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•
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Appointed Patricia S. Walker to Board of Directors
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For the Three Months Ended
December 31,
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For the Year Ended
December 31,
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|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Net loss
|
$
|
(849
|
)
|
$
|
(443
|
)
|
$
|
(2,706
|
)
|
$
|
(4,412
|
)
|
||||
|
||||||||||||||||
Adjustments:
|
||||||||||||||||
Depreciation and amortization
|
1,047
|
792
|
3,736
|
3,585
|
||||||||||||
Amortization of right-of-use asset
|
89
|
84
|
350
|
326
|
||||||||||||
Loss on disposal of property and equipment
|
67
|
24
|
140
|
24
|
||||||||||||
Income taxes
|
22
|
68
|
34
|
275
|
||||||||||||
Gain on forgiveness of debt
|
(1
|
)
|
-
|
(2,029
|
)
|
-
|
||||||||||
Interest expense, net
|
206
|
23
|
299
|
61
|
||||||||||||
Non-GAAP EBITDA
|
581
|
548
|
(176
|
)
|
(141
|
)
|
||||||||||
|
||||||||||||||||
Stock-based compensation expense
|
80
|
390
|
1,643
|
1,633
|
||||||||||||
Non-GAAP adjusted EBITDA
|
$
|
661
|
$
|
938
|
$
|
1,467
|
$
|
1,492
|
Three Months Ended
December 31, |
Year Ended
December 31, |
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Gross domestic recurring billings
|
$
|
6,148
|
$
|
5,400
|
$
|
22,071
|
$
|
16,903
|
||||||||
Co-Pay adjustments
|
(58
|
)
|
(70
|
)
|
(600
|
)
|
(484
|
)
|
||||||||
Other discounts
|
(38
|
)
|
(20
|
)
|
(154
|
)
|
(48
|
)
|
||||||||
Deferred revenue from prior quarters
|
2,107
|
1,390
|
1,765
|
2,242
|
||||||||||||
Deferral of revenue to future quarters
|
(1,867
|
)
|
(1,765
|
)
|
(1,867
|
)
|
(1,765
|
)
|
||||||||
GAAP Recorded domestic revenue
|
$
|
6,292
|
$
|
4,935
|
$
|
21,215
|
$
|
16,848
|
Jack Droogan
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||
(203) 585-4140
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||
ir@strataskin.com
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December 31,
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|||||||
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2021
|
2020
|
||||||
Assets
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||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
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12,586
|
$
|
10,604
|
||||
Restricted cash
|
—
|
7,508
|
||||||
Accounts receivable, net of allowance for doubtful accounts of $275 and $274 at December 31, 2021 and 2020, respectively
|
3,433
|
2,944
|
||||||
Inventories
|
3,489
|
3,444
|
||||||
Prepaid expenses and other current assets
|
462
|
331
|
||||||
Total current assets
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19,970
|
24,831
|
||||||
Property and equipment, net
|
6,883
|
5,529
|
||||||
Operating lease right-of-use assets
|
638
|
988
|
||||||
Intangible assets, net
|
10,083
|
6,345
|
||||||
Goodwill
|
8,803
|
8,803
|
||||||
Other assets
|
216
|
282
|
||||||
Total assets
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$
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46,593
|
$
|
46,778
|
||||
|
||||||||
Liabilities and Stockholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Note payable
|
$
|
—
|
$
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7,275
|
||||
Current portion of long-term debt
|
—
|
1,478
|
||||||
Accounts payable
|
2,822
|
2,764
|
||||||
Accrued expenses and other current liabilities
|
6,377
|
4,690
|
||||||
Deferred revenues
|
3,285
|
2,262
|
||||||
Current portion of operating lease liabilities
|
318
|
369
|
||||||
Total current liabilities
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12,802
|
18,838
|
||||||
Long-term debt, net of current portion
|
7,319
|
1,050
|
||||||
Deferred revenues and other liabilities
|
400
|
34
|
||||||
Deferred tax liability
|
266
|
254
|
||||||
Operating lease liability, net of current portion
|
392
|
710
|
||||||
Total liabilities
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21,179
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20,886
|
||||||
Commitments and contingencies
|
||||||||
Stockholders’ equity:
|
||||||||
Series C convertible preferred stock, $0.10 par value; 10,000,000 shares authorized, no shares issued and outstanding
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—
|
—
|
||||||
Common stock, $0.001 par value; 150,000,000 shares authorized; 34,364,679 and 33,801,045 shares issued and outstanding at December 31, 2021 and
2020, respectively
|
34
|
34
|
||||||
Additional paid-in capital
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247,059
|
244,831
|
||||||
Accumulated deficit
|
(221,679
|
)
|
(218,973
|
)
|
||||
Total stockholders’ equity
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25,414
|
25,892
|
||||||
Total liabilities and stockholders’ equity
|
$
|
46,593
|
$
|
46,778
|
|
Year Ended December 31,
|
|||||||
|
2021
|
2020
|
||||||
Revenues, net
|
$
|
29,977
|
$
|
23,090
|
||||
Cost of revenues
|
10,127
|
8,956
|
||||||
Gross profit
|
19,850
|
14,134
|
||||||
Operating expenses:
|
||||||||
Engineering and product development
|
1,434
|
1,274
|
||||||
Selling and marketing
|
13,106
|
9,038
|
||||||
General and administrative
|
9,712
|
7,898
|
||||||
24,252
|
18,210
|
|||||||
Loss from operations
|
(4,402
|
)
|
(4,076
|
)
|
||||
Other income (expense):
|
||||||||
Interest expense
|
(314
|
)
|
(211
|
)
|
||||
Interest income
|
15
|
150
|
||||||
Gain on forgiveness of debt
|
2,029
|
—
|
||||||
1,730
|
(61
|
)
|
||||||
Loss before income tax expense
|
(2,672
|
)
|
(4,137
|
)
|
||||
Income tax expense
|
(34
|
)
|
(275
|
)
|
||||
Net loss
|
$
|
(2,706
|
)
|
$
|
(4,412
|
)
|
||
Net loss attributable to common shares
|
$
|
(2,706
|
)
|
$
|
(4,394
|
)
|
||
Net loss attributable to Preferred Series C shares
|
$
|
—
|
$
|
(18
|
)
|
|||
Net loss per share of common stock, basic and diluted
|
$
|
(0.08
|
)
|
$
|
(0.13
|
)
|
||
Weighted average shares of common stock outstanding, basic and diluted
|
34,050,274
|
33,609,922
|
||||||
Net loss per share of Preferred Series C stock, basic and diluted
|
$
|
—
|
$
|
(48.59
|
)
|
|||
Weighted average shares of Preferred Series C stock outstanding, basic and diluted
|
—
|
368
|
|
Year Ended December 31,
|
|||||||
|
2021
|
2020
|
||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$
|
(2,706
|
)
|
$
|
(4,412
|
)
|
||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
3,736
|
3,585
|
||||||
Amortization of right-of-use assets
|
350
|
326
|
||||||
Amortization of deferred financing costs and debt discount
|
37
|
—
|
||||||
Provision for doubtful accounts
|
1
|
90
|
||||||
Stock-based compensation
|
1,643
|
1,633
|
||||||
Loss on disposal of property and equipment
|
140
|
24
|
||||||
Gain on forgiveness of debt
|
(2,029
|
)
|
—
|
|||||
Deferred taxes
|
12
|
254
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(490
|
)
|
1,352
|
|||||
Inventories
|
(45
|
)
|
(417
|
)
|
||||
Prepaid expenses and other assets
|
(65
|
)
|
247
|
|||||
Accounts payable
|
58
|
884
|
||||||
Accrued expenses and other liabilities
|
1,679
|
(588
|
)
|
|||||
Deferred revenues
|
(444
|
)
|
(570
|
)
|
||||
Operating lease liabilities
|
(369
|
)
|
(312
|
)
|
||||
Net cash provided by operating activities
|
1,508
|
2,096
|
||||||
Cash flows from investing activities:
|
||||||||
Cash paid in connection with asset acquisition
|
(3,473
|
)
|
—
|
|||||
Purchase of property and equipment
|
(3,653
|
)
|
(2,159
|
)
|
||||
Net cash used in investing activities
|
(7,126
|
)
|
(2,159
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from exercise of stock options
|
—
|
18
|
||||||
Proceeds from long-term debt
|
8,000
|
2,528
|
||||||
Payment of deferred financing costs
|
(133
|
)
|
—
|
|||||
Repayment of note payable
|
(7,275
|
)
|
—
|
|||||
Repayment of long-term debt
|
(500
|
)
|
—
|
|||||
Net cash provided by financing activities
|
92
|
2,546
|
||||||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
(5,526
|
)
|
2,483
|
|||||
Cash, cash equivalents and restricted cash at beginning of year
|
18,112
|
15,629
|
||||||
Cash, cash equivalents and restricted cash at end of year
|
$
|
12,586
|
$
|
18,112
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid during the year for interest
|
$
|
222
|
$
|
211
|
||||
Supplemental schedule of non-cash investing and financing activities:
|
||||||||
Issuance of common stock warrants in connection with Senior Term Facility
|
$
|
585
|
$
|
—
|
||||
Assumed deferred revenues in connection with asset acquisition
|
$
|
1,841
|
$
|
—
|