|
|
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
|
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
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))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
Item 2.02. |
Results of Operations and Financial Condition.
|
Item 7.01. |
Regulation FD Disclosure.
|
Item 9.01. |
Financial Statements and Exhibits.
|
|
Press Release dated March 31, 2023 issued by STRATA Skin Sciences, Inc.
|
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document).
|
STRATA SKIN SCIENCES, INC.
|
|||
Date: March 31, 2023
|
By:
|
/s/ Christopher Lesovitz
|
|
Christopher Lesovitz
|
|||
Chief Financial Officer
|
● |
Revenue in the fourth quarter of 2022 was a record $10.6 million, an increase of 17% over the fourth quarter of 2021
|
○ |
Global recurring revenue was $6.5 million
|
○ |
Gross domestic recurring billings were $5.8 million
|
● |
Revenue for the full year 2022 was $36.2 million, a 21% increase over the full year 2021
|
○ |
Global recurring revenue was $23.0 million
|
○ |
Gross domestic recurring billings were $22.3 million (See Reconciliation of Non-GAAP measures below)
|
● |
Domestic installed base increased to 909 XTRAC® devices at December 31, 2022
|
● |
In January 2022, announced the acquisition of acne treatment device, TheraClear®X, from Theravant Corporation and commercially launched the system in July 2022
|
● |
Announced the additions of Michael E. Goodman as Head of International Sales in May 2022 and John Bagdasarian as Vice President of Professional Relations in March 2022
|
● |
Entered into the estimated $300 million acne, psoriasis, and vitiligo market in Mexico with exclusive distribution agreement for TheraClear®X, VTRAC®, and XTRAC®
|
● |
Poster accepted at ODAC Dermatology, Aesthetic & Surgical Conference titled “Advancement of Personalized Photopneumatic Therapy for Rapid, Visible Improvement in Patients to Mild to Moderate
Acne”
|
● |
Launched new XTRAC website, with Practice Finder function, allowing potential patients to find dermatologists in surrounding area offering XTRAC services
|
For the Twelve Months
Ended
|
For the Three Months Ended
December 31
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Net loss
|
$
|
(5,549
|
)
|
$
|
(2,706
|
)
|
$
|
(160
|
)
|
$
|
(849
|
)
|
||||
|
||||||||||||||||
Adjustments:
|
||||||||||||||||
Depreciation and amortization
|
5,293
|
3,736
|
1,322
|
1,047
|
||||||||||||
Amortization of right-of-use asset
|
395
|
350
|
147
|
89
|
||||||||||||
Loss on disposal of property and equipment
|
52
|
140
|
-
|
67
|
||||||||||||
Income taxes
|
63
|
34
|
63
|
22
|
||||||||||||
Loss (Gain) on forgiveness of debt
|
-
|
(2,029
|
)
|
-
|
(1
|
)
|
||||||||||
Interest income
|
(89
|
)
|
(15
|
)
|
(44
|
)
|
1
|
|||||||||
Interest expense
|
926
|
314
|
275
|
205
|
||||||||||||
Non-GAAP EBITDA
|
1,091
|
(176
|
)
|
1,603
|
581
|
|||||||||||
|
||||||||||||||||
Stock-based compensation expense
|
1,466
|
1,643
|
191
|
80
|
||||||||||||
Non-GAAP adjusted EBITDA
|
2,557
|
1,467
|
1,794
|
661
|
Three Months Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Gross domestic recurring billings
|
$
|
5,768
|
$
|
6,148
|
$
|
22,271
|
$
|
22,071
|
||||||||
Co-Pay adjustments
|
294
|
(58
|
)
|
(268
|
)
|
(600
|
)
|
|||||||||
Other discounts
|
(40
|
)
|
(38
|
)
|
(163
|
)
|
(154
|
)
|
||||||||
Deferred revenue from prior quarters
|
2,309
|
2,107
|
1,867
|
1,765
|
||||||||||||
Deferral of revenue to future quarters
|
(2,170
|
)
|
(1,867
|
)
|
(2,170
|
)
|
(1,867
|
)
|
||||||||
GAAP Recorded domestic revenue
|
$
|
6,161
|
$
|
6,292
|
$
|
21,537
|
$
|
21,215
|
December 31,
|
||||||||
2022
|
2021
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
5,434
|
$
|
12,586
|
||||
Restricted cash
|
1,361
|
—
|
||||||
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
|
||||
|
||||||||
Liabilities and Stockholders’ Equity
|
||||||||
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
|
—
|
||||||
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
|
—
|
||||||
Total liabilities
|
30,441
|
21,179
|
||||||
Commitments and contingencies
|
||||||||
Stockholders’ equity:
|
||||||||
Series C convertible preferred stock, $0.10 par value; 10,000,000 shares authorized, no shares issued and outstanding
|
—
|
—
|
||||||
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
|
Year Ended December 31,
|
||||||||
2022
|
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
|
||||||
|
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
|
—
|
2,029
|
||||||
|
(837
|
)
|
1,730
|
|||||
Loss before income tax expense
|
(5,486
|
)
|
(2,672
|
)
|
||||
Income tax expense
|
(63
|
)
|
(34
|
)
|
||||
Net loss
|
$
|
(5,549
|
)
|
$
|
(2,706
|
)
|
||
Net loss per share of common stock, basic and diluted
|
$
|
(0.16
|
)
|
$
|
(0.08
|
)
|
||
Weighted average shares of common stock outstanding, basic and diluted
|
34,712,246
|
34,050,274
|
Year Ended December 31,
|
||||||||
2022
|
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
|
—
|
(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
|
) | ||||
Cash paid in connection with TheraClear asset acquisition
|
(631
|
)
|
—
|
|||||
Cash paid in connection with Ra Medical asset acquisition
|
—
|
(3,473
|
) | |||||
Net cash used in investing activities
|
(4,183
|
)
|
(7,126
|
) | ||||
Cash flows from financing activities:
|
||||||||
Payment of contingent consideration
|
(500
|
)
|
—
|
|||||
Proceeds from long-term debt
|
—
|
8,000
|
||||||
Payment of deferred financing costs
|
—
|
(133
|
) |
|||||
Repayment of note payable
|
—
|
(7,275
|
) | |||||
Repayment of long-term debt
|
—
|
(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 at beginning of year
|
12,586
|
18,112
|
||||||
Cash, cash equivalents and restricted cash at 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
|
$
|
—
|
||||
Supplemental schedule of non-cash investing and financing activities:
|
||||||||
Change in operating lease right-of-use assets and liabilities due to new and amended leases
|
$
|
732
|
$
|
—
|
||||
Inventories acquired in connection with TheraClear asset acquisition
|
$
|
71
|
$
|
—
|
||||
Intangible assets acquired in connection with TheraClear asset acquisition
|
$
|
10,182
|
$
|
—
|
||||
Contingent consideration issued in connection with TheraClear asset acquisition
|
$
|
9,122
|
$
|
—
|
||||
Common stock issued in connection with TheraClear asset acquisition
|
$
|
500
|
$
|
—
|
||||
Transfer of property and equipment to inventories
|
$
|
463
|
$
|
—
|
||||
Issuance of common stock warrants in connection with Senior Term Facility
|
$
|
—
|
$
|
585
|
||||
Assumed deferred revenues in connection with asset acquisition
|
$
|
—
|
$
|
1,841
|