0001140361-23-038813 | 10-Q | XBRL Viewer

Business Segments (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting Information by Segment

The following tables reflect results of operations from the Company’s business segments for the periods indicated below:

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Three Months Ended June 30, 2023
Revenues, net	$	5,456		$	2,794		$	8,250
Cost of revenues		2,205			1,727			3,932
Gross profit		3,251			1,067			4,318
Gross profit %		59.6	%		38.2	%		52.3	%

Allocated expenses:
Engineering and product development		289			85			374
Selling and marketing		2,850			566			3,416
Unallocated expenses		—			—			2,490
		3,139			651			6,280
Income (loss) from operations		112			416			(1,962	)
Loss on debt extinguishment		—			—			(909	)
Interest expense		—			—			(298	)
Interest income		—			—			21
Net income (loss)	$	112		$	416		$	(3,148	)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Six Months Ended June 30, 2023
Revenues, net	$	10,665		$	5,152		$	15,817
Cost of revenues		4,225			2,886			7,111
Gross profit		6,440			2,266			8,706
Gross profit %		60.4	%		44.0	%		55.0	%

Allocated expenses:
Engineering and product development		534			155			689
Selling and marketing		6,203			955			7,158
Unallocated expenses		—			—			5,407
		6,737			1,110			13,254
(Loss) income from operations		(297	)		1,156			(4,548	)
Loss on debt extinguishment		—			—			(909	)
Interest expense		—			—			(584	)
Interest income		—			—			58
Net (loss) income	$	(297	)	$	1,156		$	(5,983	)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Three Months Ended June 30, 2022
Revenues, net	$	5,582		$	3,523		$	9,105
Cost of revenues		2,298			1,814			4,112
Gross profit		3,284			1,709			4,993
Gross profit %		58.8	%		48.5	%		54.8	%

Allocated expenses:
Engineering and product development		133			76			209
Selling and marketing		3,629			517			4,146
Unallocated expenses		—			—			2,332
		3,762			593			6,687
(Loss) income from operations		(478	)		1,116			(1,694	)
Interest expense		—			—			(208	)
Interest income		—			—			10
Net (loss) income	$	(478	)	$	1,116		$	(1,892	)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Six Months Ended June 30, 2022
Revenues, net	$	10,649		$	5,497		$	16,146
Cost of revenues		4,330			2,695			7,025
Gross profit		6,319			2,802			9,121
Gross profit %		59.3	%		51.0	%		56.5	%

Allocated expenses:
Engineering and product development		259			113			372
Selling and marketing		6,929			833			7,762
Unallocated expenses		—			—			4,984
		7,188			946			13,118
(Loss) income from operations		(869	)		1,856			(3,997	)
Interest expense		—			—			(407	)
Interest income		—			—			10
Net (loss) income	$	(869	)	$	1,856		$	(4,394	)

Depreciation and Amortization by Reportable Segment

For the three and six months ended June 30, 2023 and 2022, depreciation and amortization by reportable segment were as follows:

	Three Months Ended June 30,
	2023		2022
Dermatology recurring procedures	$	1,238	$	1,059
Dermatology procedures equipment		187		277
Unallocated expenses		3		3
Consolidated total	$	1,428	$	1,339

	Six Months Ended June 30,
	2023		2022
Dermatology recurring procedures	$	2,451	$	2,211
Dermatology procedures equipment		367		442
Unallocated expenses		7		7
Consolidated total	$	2,825	$	2,660

Disaggregation of Revenue by Geographical Region

The following tables present the Company’s revenue disaggregated by geographical region for the three and six months ended June 30, 2023 and 2022, respectively. Domestic refers to revenue from customers based in the United States, and foreign revenue is derived from sales to the Company’s distributors, primarily in Asia.

	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Three Months Ended June 30, 2023
Domestic	$	5,141	$	926	$	6,067
Foreign		315		1,868		2,183
Total	$	5,456	$	2,794	$	8,250


Six Months Ended June 30, 2023
Domestic	$	9,988	$	1,422	$	11,410
Foreign		677		3,730		4,407
Total	$	10,665	$	5,152	$	15,817

	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Three Months Ended June 30, 2022
Domestic	$	5,177	$	547	$	5,724
Foreign		405		2,976		3,381
Total	$	5,582	$	3,523	$	9,105


Six Months Ended June 30, 2022
Domestic	$	9,866	$	1,242	$	11,108
Foreign		783		4,255		5,038
Total	$	10,649	$	5,497	$	16,146

Accrued Expenses and Other Current Liabilities

6 Months Ended

Jun. 30, 2023

Accrued Expenses and Other Current Liabilities [Abstract]

Accrued Expenses and Other Current Liabilities

Note 8

Accrued Expenses and Other Current Liabilities:

Accrued expenses and other current liabilities consist of the following:

	June 30, 2023		December 31, 2022
Warranty obligations	$	163	$	136
Compensation and related benefits		2,145		1,997
State sales, use and other taxes		4,203		3,986
Professional fees and other		220		436
Total accrued expenses and other current liabilities	$	6,731	$	6,555

The Company

6 Months Ended

Jun. 30, 2023

The Company [Abstract]

The Company

Note 1

The Company:

Background

STRATA Skin Sciences, Inc. (the “Company”) is a medical technology company in dermatology dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Its products include the XTRAC® and Pharos® excimer lasers and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions. In January 2022, the Company acquired the TheraClear Acne Therapy System to broaden its opportunities with expansion potential in the acne care market. The Company markets the device under the brand name TheraClear® X.

The XTRAC is an ultraviolet light excimer laser system utilized to treat psoriasis, vitiligo and other skin diseases. The XTRAC excimer laser system received clearance from the United States Food and Drug Administration (the “FDA”) in 2000. As of June 30, 2023, there were 930 XTRAC systems placed in dermatologists’ offices in the United States and 35 systems internationally under the Company’s recurring revenue business model. The XTRAC systems deployed under the recurring revenue model generate revenue on a per procedure basis or include a fixed payment over an agreed upon period with a capped number of treatments which, if exceeded, would incur additional fees. The per-procedure charge is inclusive of the use of the system and the services provided by the Company to the customer, which includes system maintenance and other services. The VTRAC Excimer Lamp system, offered in addition to the XTRAC system internationally, provides targeted therapeutic efficacy demonstrated by excimer technology with a lamp system.

The Pharos excimer laser system holds FDA clearance to treat chronic skin diseases, including psoriasis, vitiligo, atopic dermatitis and leukoderma.

The TheraClear® Acne Therapy System combines intense pulse light with vacuum (suction) for the treatment of mild to moderate inflammatory acne (including acne vulgaris), comedonal acne and pustular acne.

Since 2019, the Company has been transitioning its international dermatology procedures equipment sales through its master distributor to a direct distribution model for equipment sales and recurring revenue on a country-by-country basis. In January 2022, the Company’s agreement with its master distributor expired. The Company has signed distributor contracts by year as follows: 2019 – Korea, 2020 – Japan, 2021 – China, Israel, Saudi Arabia, Kuwait, Oman, Qatar, Bahrain, UAE, Jordan, Iraq and 2023 – Mexico, India.

COVID-19 Pandemic

In late 2019, there was an outbreak of a new strain of coronavirus (“COVID-19”) which became a global pandemic. Since March 2020, the COVID-19 pandemic has negatively impacted business conditions in the industry in which the Company operates, disrupted global supply chains, constrained workforce participation and created significant volatility and disruption of financial markets. The pandemic led to the suspension of elective procedures in the U.S. and to the temporary closure of many physician practices, which are the Company’s primary customers. While most offices have reopened, some physician practices closed and never reopened, and the impact of the COVID-19 pandemic and its variants on the Company’s operational and financial performance, including its ability to execute its business strategies and initiatives in the expected time frames, will depend on future developments, including, but not limited to, impact on supply chains and transport, and governmental and customer responses, including staffing issues, all of which are uncertain and cannot be predicted.

Russia-Ukraine War

Prior to the outbreak of the Russia-Ukraine War, Ukraine was the largest exporter of noble gases including neon, krypton, and xenon. Historically, Ukraine has been the source of a significant amount of gas supplied to the Company by its contract suppliers. Neon gas is essential to the proper functioning of the Company’s lasers. The Company’s suppliers have been resourceful in continuing to supply gases to the Company but cannot assure the Company that the supply will not remain uninterrupted. The reduced supply and ongoing conflict have raised the price of gas significantly worldwide. Additionally, the Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 has led to a further tightening of rare gas supplies as semiconductor chip manufacturers reconfigure their supply chains to address the need to secure their own supplies of rare gases for use in the manufacture of computer chips.

See Note 2, Liquidity for discussion on Company liquidity.

Basis of Presentation:

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and Photomedex India Private Limited, its wholly-owned, inactive subsidiary in India. All significant intercompany balances and transactions have been eliminated in consolidation.

Unaudited Interim Condensed Consolidated Financial Statements

The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial reporting. These condensed consolidated statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to fairly present the results of the interim periods. The condensed consolidated balance sheet at December 31, 2022 has been derived from the audited consolidated financial statements at that date. Operating results and cash flows for the six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023 or any other future period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted in accordance with the rules and regulations for interim reporting of the SEC. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”), and other forms filed with the SEC from time to time. Dollar amounts included herein are in thousands, except share and per share amounts and number of lasers.

Significant Accounting Policies

The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed in the Company’s 2022 Form 10-K, and there have been no changes to the Company’s significant accounting policies during the six months ended June 30, 2023.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The Company’s significant estimates and judgments include revenue recognition with respect to deferred revenues and the contract term and valuation allowances of accounts receivable, inputs used when evaluating goodwill for impairment, inputs used in the valuation of contingent consideration, state sales and use tax accruals, the estimated useful lives of intangible assets, and the valuation allowance related to deferred tax assets.

Fair Value Measurements

The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy that requires the use of observable inputs and minimizes the use of unobservable inputs. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

	•	Level 1 – quoted market prices in active markets for identical assets or liabilities.
	•	Level 2 – observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	•	Level 3 – inputs that are generally unobservable and typically reflect the Company’s estimate of assumptions that market participants would use in pricing the asset or liability.

The fair values of cash and cash equivalents and restricted cash are based on their respective demand values, which are equal to the carrying values. The carrying values of all short-term monetary assets and liabilities are estimated to approximate their fair values due to the short-term nature of these instruments. As of June 30, 2023 and December 31, 2022, the carrying value of the Company’s long-term debt approximated its fair value due to its variable interest rate.

Accrued Warranty Costs

The Company offers a standard warranty on product sales generally for a one to two-year period, however, the Company has offered longer warranty periods, ranging from three to four years, in order to meet competition or meet customer demands. The Company provides for the estimated cost of the future warranty claims on the date the product is sold. The activity in the warranty accrual during the three and six months ended June 30, 2023 and 2022 is summarized as follows:

	Three Months Ended June 30,
	2023			2022
Balance, beginning of period	$	229		$	99
Additions		93			60
Expirations and claims satisfied		(53	)		(26	)
Total		269			133
Less current portion within accrued expenses and other current liabilities		(163	)		(98	)
Balance within deferred revenues and other liabilities	$	106		$	231

	Six Months Ended June 30,
	2023			2022
Balance, beginning of period	$	207		$	79
Additions		120			94
Expirations and claims satisfied		(58	)		(40	)
Total		269			133
Less current portion within accrued expenses and other current liabilities		(163	)		(98	)
Balance within deferred revenues and other liabilities	$	106		$	231

Net Loss Per Share

Basic net loss per share of common stock is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted loss per share of common stock includes the effect, if any, from the potential exercise or conversion of securities such as unvested restricted stock awards, stock options and warrants for common stock which would result in the issuance of incremental shares of common stock. For diluted net loss per share, the weighted-average number of shares of common stock is the same as for basic net loss per share due to the fact that when a net loss exists, dilutive securities are not included in the calculation as the impact is anti-dilutive.

The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive:

	June 30,
	2023		2022
Restricted stock units		119,597		75,540
Stock options		5,369,714		4,544,714
Common stock warrants		800,000		373,626
Total		6,289,311		4,993,880

Accounting Pronouncements Recently Adopted

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended subsequently by ASUs 2018-19, 2019-04, 2019-05, 2019-10, 2019-11 and 2020-03. The guidance in the ASUs requires that credit losses be reported using an expected losses model rather than the incurred losses model that is currently used. The standard also establishes additional disclosures related to credit risks. This standard is effective for fiscal years beginning after December 15, 2022. The adoption of this guidance on January 1, 2023 did not have a material effect on the condensed consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and in January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. These pronouncements provide temporary optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The transition period for adopting these ASUs is March 2020 through December 31, 2024, as further amended by ASU 2022-06. The adoption of this guidance is not expected to have a material effect on the condensed consolidated financial statements as the Company does not have any hedging activities.

In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivative and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s own Equity. The pronouncement simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Specifically, the ASU simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. In addition, the ASU removes certain settlement conditions that are required for equity contracts to qualify for it and simplifies the diluted earnings per share (EPS) calculations in certain areas. The guidance is effective for annual periods, including interim periods, beginning after December 15, 2023 and early adoption is permitted. The Company does not currently engage in contracts covered by this guidance and does not believe it will have a material effect on the Company’s condensed consolidated financial statements, but it could in the future.

Significant Customer Concentrations (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023 USD ($) Customer	Jun. 30, 2022 USD ($) Customer	Jun. 30, 2023 USD ($) Customer	Jun. 30, 2022 USD ($) Customer	Dec. 31, 2022 Customer
Concentration Risk [Abstract]
Revenues, net	$ 8,250	$ 9,105	$ 15,817	$ 16,146
Revenue [Member] \| Customer Concentration Risk [Member]
Concentration Risk [Abstract]
Number of significant customers \| Customer	1	1		2
Revenue [Member] \| Customer Concentration Risk [Member] \| Distributor One [Member]
Concentration Risk [Abstract]
Revenues, net	$ 959	$ 1,840
Concentration risk percentage	11.60%	20.20%
Revenue [Member] \| Customer Concentration Risk [Member] \| Two Distributor [Member]
Concentration Risk [Abstract]
Revenues, net				$ 3,773
Concentration risk percentage				23.40%
Accounts Receivable [Member] \| Customer Concentration Risk [Member]
Concentration Risk [Abstract]
Number of significant customers \| Customer			0		1
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Distributor One [Member]
Concentration Risk [Abstract]
Concentration risk percentage					11.00%

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Schedule of inventory [Abstract]
Raw materials and work-in-process	$ 5,622	$ 5,418
Finished goods	299	129
Total inventories	$ 5,921	$ 5,547

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies [Abstract]

Operating Lease Maturities

The following table summarizes the Company’s operating lease maturities as of June 30, 2023:

Remaining 2023	$	220
2024		386
2025		195
2026		55
Total remaining lease payments	$	856
Less: imputed interest		(77	)
Total lease liabilities	$	779

Revenue Recognition, Summary (Details)	6 Months Ended
Revenue Recognition, Summary (Details)	Jun. 30, 2023
Treatment Equipment [Abstract]
Renewal term	1 year
Minimum [Member]
Treatment Equipment [Abstract]
Notice period to cancel contract agreement	30 days
Maximum [Member]
Treatment Equipment [Abstract]
Lease term	36 months
Notice period to cancel contract agreement	60 days
South Korea [Member]
Treatment Equipment [Abstract]
Lease term	48 months

Stock-based Compensation

6 Months Ended

Jun. 30, 2023

Stock-based Compensation [Abstract]

Stock-based Compensation

Note 10

Stock-based Compensation:

The Company’s 2016 Omnibus Incentive Stock Plan (“2016 Plan”), as amended, has reserved up to 7,832,651 shares of common stock for future issuance. As of June 30, 2023, there were 2,298,706 shares of common stock remaining available for issuance for awards under the 2016 Plan.

The Company measures stock‑based awards at their grant‑date fair value and records compensation expense on a straight‑line basis over the requisite service period of the awards. The Company recorded stock‑based compensation expense of $296 and $452 for the three months ended June 30, 2023 and 2022, respectively, and $578 and $820 for the six months ended June 30, 2023 and 2022, respectively, within general and administrative expenses in the accompanying condensed consolidated statements of operations. During the three and six months ended June 30, 2023, the Company also recorded share-based compensation expense of $56 and $99, respectively, within selling and marketing expenses in the accompanying condensed consolidated statement of operations.

On April 3, 2023 and March 30, 2022, the Company granted 150,000 and 160,000 stock-based options, respectively, to the Chief Executive Officer. The vesting of these awards is contingent upon meeting one or more financial goals (a performance condition) or a common stock share price (a market condition). The fair value of stock-based awards is determined at the date of grant. Stock-based compensation expense is recorded ratably for market condition awards during the requisite service period and is not reversed, except for forfeitures, at the vesting date regardless of whether the market condition is met. The market condition was not met for the 2022 awards and 60,000 of the stock-based options were forfeited during 2022. Stock-based compensation expense for performance condition awards is re-evaluated at each reporting period based on the probability of the achievement of the goal.

Stock Options

The following table summarizes stock option activity for the six months ended June 30, 2023:

	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (in years)
Outstanding at January 1, 2023		4,474,714		$	1.72
Granted		905,000		$	1.06
Exercised		—		$	—
Forfeited and expired		(10,000	)	$	1.45
Outstanding at June 30, 2023		5,369,714		$	1.61		7.9
Exercisable at June 30, 2023		2,787,390		$	1.81		7.1
Vested and expected to vest		5,369,714		$	1.61		7.9

As of June 30, 2023, the total unrecognized compensation expense related to unvested stock option awards was $1,961, which the Company expects to recognize over a weighted‑average period of approximately 2.4 years. The aggregate intrinsic value of options outstanding at June 30, 2023 was $1. There was no aggregate intrinsic value of options exercisable at June 30, 2022.

For the six months ended June 30, 2023, the fair value of each option was estimated on the date of grant using the weighted average assumptions in the table below:

Expected volatility	71.4	%
Risk‑free interest rate	3.6	%
Expected term (in years)	6.2
Expected dividend yield	0.0	%

Restricted Stock Units

Restricted stock units have been issued to certain board members. Restricted stock units unvested are summarized in the following table:

	Number of Shares			Weighted Average Grant Date Fair Value
Unvested at January 1, 2023		119,597		$	0.93
Granted		—		$	—
Vested		(79,730	)	$	0.93
Unvested at June 30, 2023		39,867		$	0.93

As of June 30, 2023, the total unrecognized compensation expense related to unvested restricted stock units was de minimus.

The Company (Tables)

6 Months Ended

Jun. 30, 2023

The Company [Abstract]

Accrued Warranty Costs Activity

	Three Months Ended June 30,
	2023			2022
Balance, beginning of period	$	229		$	99
Additions		93			60
Expirations and claims satisfied		(53	)		(26	)
Total		269			133
Less current portion within accrued expenses and other current liabilities		(163	)		(98	)
Balance within deferred revenues and other liabilities	$	106		$	231

	Six Months Ended June 30,
	2023			2022
Balance, beginning of period	$	207		$	79
Additions		120			94
Expirations and claims satisfied		(58	)		(40	)
Total		269			133
Less current portion within accrued expenses and other current liabilities		(163	)		(98	)
Balance within deferred revenues and other liabilities	$	106		$	231

Antidilutive Securities Excluded from Computation of Net Loss Per Share

The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive:

	June 30,
	2023		2022
Restricted stock units		119,597		75,540
Stock options		5,369,714		4,544,714
Common stock warrants		800,000		373,626
Total		6,289,311		4,993,880

Inventories

6 Months Ended

Jun. 30, 2023

Inventories [Abstract]

Inventories

Note 5

Inventories:

Inventories consist of the following:

	June 30, 2023		December 31, 2022
Raw materials and work-in-process	$	5,622	$	5,418
Finished goods		299		129
Total inventories	$	5,921	$	5,547

Work-in-process is immaterial, given the Company’s typically short manufacturing cycle and therefore, is included with raw materials.

Stock-based Compensation, Summary (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Stock-based Compensation [Abstract]
Stock-based compensation expense			$ 677	$ 820
General and Administrative Expenses [Member]
Stock-based Compensation [Abstract]
Stock-based compensation expense	$ 296	$ 452	578	$ 820
Selling and Marketing Expenses [Member]
Stock-based Compensation [Abstract]
Stock-based compensation expense	$ 56		$ 99
2016 Omnibus Incentive Plan [Member]
Stock-based Compensation [Abstract]
Common stock reserved for future issuance (in shares)	7,832,651		7,832,651
Number of shares available for issuance (in shares)	2,298,706		2,298,706

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Accrued Expenses and Other Current Liabilities [Abstract]
Warranty obligations	$ 163	$ 136	$ 98
Compensation and related benefits	2,145	1,997
State sales, use and other taxes	4,203	3,986
Professional fees and other	220	436
Total accrued expenses and other current liabilities	$ 6,731	$ 6,555

TheraClear Asset Acquisition

6 Months Ended

Jun. 30, 2023

TheraClear Asset Acquisition [Abstract]

TheraClear Asset Acquisition

Note 4

TheraClear Asset Acquisition:

In January 2022, the Company acquired certain assets related to the TheraClear devices from Theravant Corporation (“Theravant”). The TheraClear asset acquisition allows the Company to further develop, commercialize and market the TheraClear devices that are used for acne treatment, as well as advance the TheraClear technology into multiple other devices that can be used to treat a range of additional indications.

The Company made an upfront cash payment of $500 and issued to Theravant 358,367 shares of common stock with an aggregate value of $500 as of the closing date in connection with the TheraClear asset acquisition. During the fourth quarter of 2022, the Company also made a $500 milestone payment upon the launch of the TheraClear Acne Therapy System, one of the development-related targets. Theravant is eligible to receive up to $3,000 in future earnout payments upon the achievement of certain annual net revenue milestones, up to $20,000 in future royalty payments based upon a percentage of gross profit from future domestic sales ranging from 10-20%, 25% of gross profit from international sales over the subsequent four-year period, and up to $500 in future milestone payments upon the achievement of certain development and commercialization related targets. The Company owes Theravant $28 and $42, respectively, based on gross profit from domestic and international sales during the three and six months ended June 30, 2023, which is included in accounts payable as of June 30, 2023.

The Company determined this transaction represented an asset acquisition as substantially all of the value was in the TheraClear technology intangible asset as defined by ASC 805, Business Combinations.

The purchase price was allocated, on a relative fair basis, to the technology intangible asset and acquired inventories as follows:

Consideration:
Cash payment	$	500
Common stock issued		500
Transaction costs		131
Contingent consideration		9,122
Total consideration	$	10,253

Assets acquired:
Technology intangible asset	$	10,182
Inventories		71
Total assets acquired	$	10,253

The technology intangible asset is being amortized on a straight-line basis over a period of ten years, to be updated for subsequent changes in the contingent consideration that is allocated to its carrying value. The intangible asset was valued using the relief from royalty method. Significant assumptions used in the relief from royalty method include a 14.5% weighted average cost of capital and 15.0% of revenues for the royalty rate. The net book value of acquired inventories approximated its fair value. To calculate the fair value of the earnout using Monte Carlo simulations, Company projections were utilized to develop expected revenues and gross profits based on the risk inherent in the projections using the Geometric-Brownian motion for the earnout periods and related earnout payments. Significant assumptions used in the Geometric-Brownian motion analysis include projected revenues, projected gross profit, risk free rate of return of 1.6%, revenue volatility of 45.0%, and a cost of equity of 10.5%. Due to uncertainties associated with the development of a new product line and the use of estimates and assumptions to determine the fair value of the contingent consideration, the amount ultimately paid in connection with the earnout may differ from the estimated fair value at the acquisition date. A revaluation of the contingent consideration would only be required if there is a significant change to the underlying valuation assumptions. The contingent consideration will be adjusted when the contingency is resolved and the consideration is paid or becomes payable. Any difference between the cash payment and the amount accrued for contingent consideration will result in an adjustment to the technology intangible asset. Contingent consideration expected to be paid within the next year is classified as current on the condensed consolidated balance sheet.

Stock-based Compensation, Restricted Stock Units (Details) - Restricted Stock Units [Member]	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Number of shares [Abstract]
Unvested at beginning of period (in shares) \| shares	119,597
Granted (in shares) \| shares	0
Vested (in shares) \| shares	(79,730)
Unvested at end of period (in shares) \| shares	39,867
Weighted average grant date fair value [Abstract]
Unvested at beginning of period (in dollars per share) \| $ / shares	$ 0.93
Granted (in dollars per share) \| $ / shares	0
Vested (in dollars per share) \| $ / shares	0.93
Unvested at end of period (in dollars per share) \| $ / shares	$ 0.93

Long-term Debt (Tables)

6 Months Ended

Jun. 30, 2023

Long-term Debt [Abstract]

Future Minimum Principal Payments

Future minimum principal payments at June 30, 2023 are as follows:

2026	$	3,750
2027		7,500
2028		3,750
		15,000
Exit fee		450
		15,450
Less: unamortized debt discount		(463	)
Long-term debt, net	$	14,987

Liquidity	6 Months Ended
Liquidity	Jun. 30, 2023
Liquidity [Abstract]
Liquidity	Note 2 Liquidity: The Company has been negatively impacted by the COVID-19 pandemic, has historically experienced recurring losses, and has been dependent on raising capital from the sale of securities in order to continue to operate and has been required to restrict cash for potential sales tax liabilities (see Note 14, Commitments and Contingencies). In October 2021, the Company entered into an equity distribution agreement with an investment bank under which the Company may sell up to $11,000 of its common stock in registered “at-the-market” offerings. In June 2023, the Company amended its credit facility with MidCap Financial Trust to: (i) refinance its existing $8,000 term loan, (ii) borrow an additional $7,000, and (iii) provide for an additional $5,000 tranche that can be drawn under certain conditions in 2024. Management believes that the Company’s cash and cash equivalents, combined with the anticipated revenues from the sale or use of its products and operating expense management, will be sufficient to satisfy the Company’s working capital needs, capital asset purchases, outstanding commitments and other liquidity requirements associated with its existing operations for at least the next 12 months following the date of the issuance of these condensed consolidated financial statements. However, market conditions, including the negative impact of the COVID-19 pandemic and the Russia-Ukraine War on the financial markets, supply chain disruptions, customer behavior, and rising interest rates, could interfere with the Company’s ability to access financing and on favorable terms.

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net loss	$ (5,983)	$ (4,394)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,390	1,224
Amortization of operating lease right-of-use assets	168	181
Amortization of intangible assets	1,435	1,436
Amortization of deferred financing costs and debt discount	83	76
Change in allowance for credit losses	(138)	(47)
Stock-based compensation expense	677	820
Loss on disposal of property and equipment	24	35
Loss on debt extinguishment	909	0
Changes in operating assets and liabilities:
Accounts receivable	208	491
Inventories	(272)	(898)
Prepaid expenses and other assets	190	(203)
Accounts payable	351	1,419
Accrued expenses and other liabilities	211	(217)
Deferred revenues	(95)	(135)
Operating lease liabilities	(186)	(197)
Net cash used in operating activities	(1,028)	(409)
Cash flows from investing activities:
Purchase of property and equipment	(2,337)	(1,510)
Cash paid in connection with TheraClear asset acquisition	0	(631)
Net cash used in investing activities	(2,337)	(2,141)
Cash flows from financing activities:
Proceeds from long-term debt	7,000	0
Payment of deferred financing costs	(35)	0
Net cash provided by financing activities	6,965	0
Net increase (decrease) in cash, cash equivalents and restricted cash	3,600	(2,550)
Cash, cash equivalents and restricted cash, beginning of period	6,795	12,586
Cash, cash equivalents and restricted cash, end of period	10,395	10,036
Cash and cash equivalents	9,034	10,036
Restricted cash	1,361	0
Supplemental disclosure of cash flow information:
Cash paid for interest	497	329
Supplemental disclosure of non-cash operating, investing and financing activities:
Inventories acquired in connection with TheraClear asset acquisition	0	71
Intangible assets acquired in connection with TheraClear asset acquisition	0	10,182
Contingent consideration issued in connection with TheraClear asset acquisition	0	9,122
Common stock issued in connection with TheraClear asset acquisition	0	500
Modification of common stock warrants	384	0
Transfer of property and equipment to inventories	102	449
Accrued payment of contingent consideration	42	0
Accrued exit fee recorded as debt discount	450	0
Deferred financing costs in accounts payable	$ 62	$ 0

Stock-Based Compensation, Fair Value Assumptions (Details)	6 Months Ended
	Jun. 30, 2023
Fair Value Assumptions [Abstract]
Expected volatility	71.40%
Risk-free interest rate	3.60%
Expected term (in years)	6 years 2 months 12 days
Expected dividend yield	0.00%

Business Segments

6 Months Ended

Jun. 30, 2023

Business Segments [Abstract]

Business Segments

Note 12

Business Segments:

The Company has organized its business into two operating segments to better align its organization based upon the Company’s management structure, products and services offered, markets served and types of customers, as follows. The Dermatology Recurring Procedures segment derives its revenues from the usage of its equipment by dermatologists to perform XTRAC and TheraClear Acne Therapy System procedures. The Dermatology Procedures Equipment segment generates revenues from the sale of equipment, such as lasers, lamp products and TheraClear devices. Management reviews financial information presented on an operating segment basis for the purposes of making certain operating decisions and assessing financial performance.

Unallocated operating expenses include costs that are not specific to a particular segment but are general to the group; included are expenses incurred for administrative and accounting staff, general liability and other insurance, professional fees, and other similar corporate expenses. Interest expense and other income (expense) are also not allocated to the operating segments.

The following tables reflect results of operations from the Company’s business segments for the periods indicated below:

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Three Months Ended June 30, 2023
Revenues, net	$	5,456		$	2,794		$	8,250
Cost of revenues		2,205			1,727			3,932
Gross profit		3,251			1,067			4,318
Gross profit %		59.6	%		38.2	%		52.3	%

Allocated expenses:
Engineering and product development		289			85			374
Selling and marketing		2,850			566			3,416
Unallocated expenses		—			—			2,490
		3,139			651			6,280
Income (loss) from operations		112			416			(1,962	)
Loss on debt extinguishment		—			—			(909	)
Interest expense		—			—			(298	)
Interest income		—			—			21
Net income (loss)	$	112		$	416		$	(3,148	)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Six Months Ended June 30, 2023
Revenues, net	$	10,665		$	5,152		$	15,817
Cost of revenues		4,225			2,886			7,111
Gross profit		6,440			2,266			8,706
Gross profit %		60.4	%		44.0	%		55.0	%

Allocated expenses:
Engineering and product development		534			155			689
Selling and marketing		6,203			955			7,158
Unallocated expenses		—			—			5,407
		6,737			1,110			13,254
(Loss) income from operations		(297	)		1,156			(4,548	)
Loss on debt extinguishment		—			—			(909	)
Interest expense		—			—			(584	)
Interest income		—			—			58
Net (loss) income	$	(297	)	$	1,156		$	(5,983	)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Three Months Ended June 30, 2022
Revenues, net	$	5,582		$	3,523		$	9,105
Cost of revenues		2,298			1,814			4,112
Gross profit		3,284			1,709			4,993
Gross profit %		58.8	%		48.5	%		54.8	%

Allocated expenses:
Engineering and product development		133			76			209
Selling and marketing		3,629			517			4,146
Unallocated expenses		—			—			2,332
		3,762			593			6,687
(Loss) income from operations		(478	)		1,116			(1,694	)
Interest expense		—			—			(208	)
Interest income		—			—			10
Net (loss) income	$	(478	)	$	1,116		$	(1,892	)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Six Months Ended June 30, 2022
Revenues, net	$	10,649		$	5,497		$	16,146
Cost of revenues		4,330			2,695			7,025
Gross profit		6,319			2,802			9,121
Gross profit %		59.3	%		51.0	%		56.5	%

Allocated expenses:
Engineering and product development		259			113			372
Selling and marketing		6,929			833			7,762
Unallocated expenses		—			—			4,984
		7,188			946			13,118
(Loss) income from operations		(869	)		1,856			(3,997	)
Interest expense		—			—			(407	)
Interest income		—			—			10
Net (loss) income	$	(869	)	$	1,856		$	(4,394	)

For the three and six months ended June 30, 2023 and 2022, depreciation and amortization by reportable segment were as follows:

	Three Months Ended June 30,
	2023		2022
Dermatology recurring procedures	$	1,238	$	1,059
Dermatology procedures equipment		187		277
Unallocated expenses		3		3
Consolidated total	$	1,428	$	1,339

	Six Months Ended June 30,
	2023		2022
Dermatology recurring procedures	$	2,451	$	2,211
Dermatology procedures equipment		367		442
Unallocated expenses		7		7
Consolidated total	$	2,825	$	2,660

	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Three Months Ended June 30, 2023
Domestic	$	5,141	$	926	$	6,067
Foreign		315		1,868		2,183
Total	$	5,456	$	2,794	$	8,250


Six Months Ended June 30, 2023
Domestic	$	9,988	$	1,422	$	11,410
Foreign		677		3,730		4,407
Total	$	10,665	$	5,152	$	15,817

	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Three Months Ended June 30, 2022
Domestic	$	5,177	$	547	$	5,724
Foreign		405		2,976		3,381
Total	$	5,582	$	3,523	$	9,105


Six Months Ended June 30, 2022
Domestic	$	9,866	$	1,242	$	11,108
Foreign		783		4,255		5,038
Total	$	10,649	$	5,497	$	16,146

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Business Segments (Details) $ in Thousands	3 Months Ended				6 Months Ended
Business Segments (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) Segment	Jun. 30, 2022 USD ($)
Business Segments [Abstract]
Number of operating segments \| Segment					2
Results of Operations from Business Segments [Abstract]
Revenues, net	$ 8,250		$ 9,105		$ 15,817	$ 16,146
Cost of revenues	3,932		4,112		7,111	7,025
Gross profit	$ 4,318		$ 4,993		$ 8,706	$ 9,121
Gross profit %	52.30%		54.80%		55.00%	56.50%
Allocated expenses [Abstract]
Engineering and product development	$ 374		$ 209		$ 689	$ 372
Selling and marketing	3,416		4,146		7,158	7,762
Unallocated expenses	2,490		2,332		5,407	4,984
Total operating expenses	6,280		6,687		13,254	13,118
Loss from operations	(1,962)		(1,694)		(4,548)	(3,997)
Loss on debt extinguishment	(909)		0		(909)	0
Interest expense	(298)		(208)		(584)	(407)
Interest income	21		10		58	10
Net loss	(3,148)	$ (2,835)	(1,892)	$ (2,502)	(5,983)	(4,394)
Depreciation and Amortization by Reportable Segment [Abstract]
Depreciation and amortization	1,428		1,339		2,825	2,660
Disaggregation of Revenue by Geographical Region [Abstract]
Revenues, net	8,250		9,105		15,817	16,146
Domestic [Member]
Results of Operations from Business Segments [Abstract]
Revenues, net	6,067		5,724		11,410	11,108
Disaggregation of Revenue by Geographical Region [Abstract]
Revenues, net	6,067		5,724		11,410	11,108
Foreign [Member]
Results of Operations from Business Segments [Abstract]
Revenues, net	2,183		3,381		4,407	5,038
Disaggregation of Revenue by Geographical Region [Abstract]
Revenues, net	2,183		3,381		4,407	5,038
Operating Segments [Member] \| Dermatology Recurring Procedures [Member]
Results of Operations from Business Segments [Abstract]
Revenues, net	5,456		5,582		10,665	10,649
Cost of revenues	2,205		2,298		4,225	4,330
Gross profit	$ 3,251		$ 3,284		$ 6,440	$ 6,319
Gross profit %	59.60%		58.80%		60.40%	59.30%
Allocated expenses [Abstract]
Engineering and product development	$ 289		$ 133		$ 534	$ 259
Selling and marketing	2,850		3,629		6,203	6,929
Unallocated expenses	0		0		0	0
Total operating expenses	3,139		3,762		6,737	7,188
Loss from operations	112		(478)		(297)	(869)
Loss on debt extinguishment	0				0
Interest expense	0		0		0	0
Interest income	0		0		0	0
Net loss	112		(478)		(297)	(869)
Depreciation and Amortization by Reportable Segment [Abstract]
Depreciation and amortization	1,238		1,059		2,451	2,211
Disaggregation of Revenue by Geographical Region [Abstract]
Revenues, net	5,456		5,582		10,665	10,649
Operating Segments [Member] \| Dermatology Procedures Equipment [Member]
Results of Operations from Business Segments [Abstract]
Revenues, net	2,794		3,523		5,152	5,497
Cost of revenues	1,727		1,814		2,886	2,695
Gross profit	$ 1,067		$ 1,709		$ 2,266	$ 2,802
Gross profit %	38.20%		48.50%		44.00%	51.00%
Allocated expenses [Abstract]
Engineering and product development	$ 85		$ 76		$ 155	$ 113
Selling and marketing	566		517		955	833
Unallocated expenses	0		0		0	0
Total operating expenses	651		593		1,110	946
Loss from operations	416		1,116		1,156	1,856
Loss on debt extinguishment	0				0
Interest expense	0		0		0	0
Interest income	0		0		0	0
Net loss	416		1,116		1,156	1,856
Depreciation and Amortization by Reportable Segment [Abstract]
Depreciation and amortization	187		277		367	442
Disaggregation of Revenue by Geographical Region [Abstract]
Revenues, net	2,794		3,523		5,152	5,497
Operating Segments [Member] \| Domestic [Member] \| Dermatology Recurring Procedures [Member]
Results of Operations from Business Segments [Abstract]
Revenues, net	5,141		5,177		9,988	9,866
Disaggregation of Revenue by Geographical Region [Abstract]
Revenues, net	5,141		5,177		9,988	9,866
Operating Segments [Member] \| Domestic [Member] \| Dermatology Procedures Equipment [Member]
Results of Operations from Business Segments [Abstract]
Revenues, net	926		547		1,422	1,242
Disaggregation of Revenue by Geographical Region [Abstract]
Revenues, net	926		547		1,422	1,242
Operating Segments [Member] \| Foreign [Member] \| Dermatology Recurring Procedures [Member]
Results of Operations from Business Segments [Abstract]
Revenues, net	315		405		677	783
Disaggregation of Revenue by Geographical Region [Abstract]
Revenues, net	315		405		677	783
Operating Segments [Member] \| Foreign [Member] \| Dermatology Procedures Equipment [Member]
Results of Operations from Business Segments [Abstract]
Revenues, net	1,868		2,976		3,730	4,255
Disaggregation of Revenue by Geographical Region [Abstract]
Revenues, net	1,868		2,976		3,730	4,255
Unallocated [Member]
Depreciation and Amortization by Reportable Segment [Abstract]
Depreciation and amortization	$ 3		$ 3		$ 7	$ 7

Revenue Recognition, Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Contract with Customer, Liability [Abstract]
Short-term contract liabilities	$ 235		$ 235
Long-term contract liabilities	490		490
Change in Contract with Customer, Liability [Abstract]
Contract liabilities recognized as revenue	$ 104	$ 255	$ 236	$ 683

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2023

Revenue Recognition [Abstract]

Future Undiscounted Fixed Treatment Code Payments from Dermatology Recurring Procedures

The following table summarizes the Company’s expected future undiscounted fixed treatment code payments from dermatology recurring procedures as of June 30, 2023 :

Remaining 2023	$	641
2024		1,103
2025		530
2026		312
2027		90
Total	$	2,676

Property and Equipment, net

6 Months Ended

Jun. 30, 2023

Property and Equipment, net [Abstract]

Property and Equipment, net

Note 6

Property and Equipment, net:

Property and equipment consist of the following:

	June 30, 2023			December 31, 2022
Dermatology devices placed-in-service	$	30,767		$	28,790
Equipment, computer hardware and software		293			293
Furniture and fixtures		235			235
Leasehold improvements		96			136
		31,391			29,454
Accumulated depreciation and amortization		(23,072	)		(21,956	)
Property and equipment, net	$	8,319		$	7,498

Depreciation and amortization expense was $713 and $599 for the three months ended June 30, 2023 and 2022, respectively. Depreciation and amortization expense was $1,390 and $1,224 for the six months ended June 30, 2023 and 2022, respectively.

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Condensed Consolidated Statements of Operations [Abstract]
Revenues, net	$ 8,250	$ 9,105	$ 15,817	$ 16,146
Cost of revenues	3,932	4,112	7,111	7,025
Gross profit	4,318	4,993	8,706	9,121
Operating expenses:
Engineering and product development	374	209	689	372
Selling and marketing	3,416	4,146	7,158	7,762
General and administrative	2,490	2,332	5,407	4,984
Total operating expenses	6,280	6,687	13,254	13,118
Loss from operations	(1,962)	(1,694)	(4,548)	(3,997)
Other (expense) income:
Loss on debt extinguishment	(909)	0	(909)	0
Interest expense	(298)	(208)	(584)	(407)
Interest income	21	10	58	10
Other (expense), income net	(1,186)	(198)	(1,435)	(397)
Net loss	$ (3,148)	$ (1,892)	$ (5,983)	$ (4,394)
Net loss per share of common stock - basic (in dollars per share)	$ (0.09)	$ (0.05)	$ (0.17)	$ (0.13)
Net loss per share of common stock - diluted (in dollars per share)	$ (0.09)	$ (0.05)	$ (0.17)	$ (0.13)
Weighted average shares of common stock outstanding - basic (in shares)	34,881,453	34,723,046	34,871,826	34,701,267
Weighted average shares of common stock outstanding - diluted (in shares)	34,881,453	34,723,046	34,871,826	34,701,267

TheraClear Asset Acquisition, (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 31, 2022	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Acquisition of Assets and Liabilities [Abstract]
Contingent consideration for gross profit from sales				$ 42	$ 0
Maximum [Member]
Acquisition of Assets and Liabilities [Abstract]
Future earnout milestone payments	$ 500
Future milestone payments	3,000
Maximum [Member] \| Domestic [Member]
Acquisition of Assets and Liabilities [Abstract]
Future royalty payments	$ 500
TheraClear Corporation [Member]
Acquisition of Assets and Liabilities [Abstract]
Number of shares issued in connection with asset acquisition (in shares)	358,367
Milestone payments			$ 500
Contingent consideration for gross profit from sales		$ 28		$ 42
Consideration [Abstract]
Cash payment	$ 500
Common stock issued	500
Transaction costs	131
Contingent consideration	9,122
Total consideration	10,253
Assets acquired [Abstract]
Inventories	71
Total assets acquired	$ 10,253
Weighted average cost of capital	14.50%
Revenues for the royalty rate	15.00%
Risk free rate of return	1.60%
Revenue volatility	45.00%
Cost of equity	10.50%
TheraClear Corporation [Member] \| Technology [Member]
Assets acquired [Abstract]
Intangible asset	$ 10,182
Amortization period of intangible assets		10 years		10 years
TheraClear Corporation [Member] \| Foreign [Member]
Acquisition of Assets and Liabilities [Abstract]
Percentage of gross profit for future royalty payments for subsequent period	25.00%
Subsequent period of gross profit for future royalty payments				4 years
TheraClear Corporation [Member] \| Minimum [Member] \| Domestic [Member]
Acquisition of Assets and Liabilities [Abstract]
Percentage of gross profit for future royalty payments for subsequent period	10.00%
TheraClear Corporation [Member] \| Maximum [Member]
Acquisition of Assets and Liabilities [Abstract]
Future earnout milestone payments	$ 3,000
Future milestone payments	500
TheraClear Corporation [Member] \| Maximum [Member] \| Domestic [Member]
Acquisition of Assets and Liabilities [Abstract]
Future royalty payments	$ 20,000
Percentage of gross profit for future royalty payments for subsequent period	20.00%

TheraClear Asset Acquisition (Tables)

6 Months Ended

Jun. 30, 2023

TheraClear Corporation [Member]

Asset Acquisition [Line Items]

Purchase Price Allocation

The purchase price was allocated, on a relative fair basis, to the technology intangible asset and acquired inventories as follows:

Consideration:
Cash payment	$	500
Common stock issued		500
Transaction costs		131
Contingent consideration		9,122
Total consideration	$	10,253

Assets acquired:
Technology intangible asset	$	10,182
Inventories		71
Total assets acquired	$	10,253

Long-term Debt, Senior Term Facility (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Sep. 30, 2022	Jun. 30, 2023 USD ($) $ / shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) Payment $ / shares shares	Jun. 30, 2022 USD ($)
Long-term Debt [Abstract]
Loss on debt extinguishment		$ (909)	$ 0	$ (909)	$ 0
Unamortized debt discount		463		463
Exit fee		450		450
SOFR [Member]
Long-term Debt [Abstract]
Term of variable rate	1 month
Interest rate floor	0.50%
Basis spread on variable rate	0.10%
MidCap Financial Trust [Member] \| Senior Term Facility [Member]
Long-term Debt [Abstract]
Face amount of debt		8,000		$ 8,000
Maturity date				Sep. 01, 2026
Frequency of payment				monthly
Number of monthly principal payments plus interest \| Payment				24
Notice period				30 days
Prepayment fee if prepayment is made within twelve months				4.00%
Prepayment fee if prepayment is made between twelve months and twenty-four months				3.00%
Prepayment fee if prepayment is made between twenty-four months and thirty-six months				2.00%
Prepayment fee if prepayment is made after thirty-six months				1.00%
Minimum net revenue threshold				$ 29,000
Minimum net revenue threshold by December 31, 2025				40,000
Minimum net revenue threshold by trailing 12-month period				40,000
Minimum unrestricted cash		3,000		3,000
Loss on debt extinguishment		(909)		(909)
Unamortized debt discount		441		441
Increase in fair value of warrants				384
Lender fees		84		84
Interest expense		298	208	584	407
Amortization of debt discount		$ 42	$ 39	83	$ 76
MidCap Financial Trust [Member] \| Senior Term Facility [Member] \| Minimum [Member]
Long-term Debt [Abstract]
Prepayment of debt				$ 5,000
MidCap Financial Trust [Member] \| Senior Term Facility [Member] \| A&R Warrant [Member]
Long-term Debt [Abstract]
Warrants issued (in shares) \| shares				800,000
Warrants, exercise price (in dollars per share) \| $ / shares		$ 0.88		$ 0.88
Warrants, expected term		10 years		10 years
MidCap Financial Trust [Member] \| Senior Term Facility [Member] \| Common Stock [Member]
Long-term Debt [Abstract]
Warrants issued (in shares) \| shares				373,626
Warrants, exercise price (in dollars per share) \| $ / shares		$ 1.82		$ 1.82
Warrants, expected term		10 years		10 years
MidCap Financial Trust [Member] \| Senior Term Facility [Member] \| LIBOR [Member]
Long-term Debt [Abstract]
Interest rate floor				0.50%
Basis spread on variable rate				7.50%
MidCap Financial Trust [Member] \| Senior Term Facility, Amendment [Member]
Long-term Debt [Abstract]
Face amount of debt		$ 20,000		$ 20,000
Forward looking term				30 days
Interest rate floor				3.50%
Amount available to be drawn under condition		$ 30,000		$ 30,000
Effective interest rate		13.48%		13.48%
Required percentage of certain insurance proceeds				100.00%
Unamortized debt discount		$ 463		$ 463
Exit fee		450		450
Third party costs incurred		13		$ 13
MidCap Financial Trust [Member] \| Senior Term Facility, Amendment [Member] \| SOFR [Member]
Long-term Debt [Abstract]
Term of variable rate				1 month
Base interest rate				0.10%
Basis spread on variable rate				7.50%
MidCap Financial Trust [Member] \| Credit Facility #1 [Member]
Long-term Debt [Abstract]
Amount drawn				$ 8,000
MidCap Financial Trust [Member] \| Credit Facility #2 [Member]
Long-term Debt [Abstract]
Amount drawn				$ 7,000
Percentage of administrative agent fess				0.50%
Percentage of credit extension				3.00%
MidCap Financial Trust [Member] \| Credit Facility #3 [Member]
Long-term Debt [Abstract]
Amount available for amount drawn		$ 5,000		$ 5,000
Percentage of credit extension				0.50%
Percentage of exit fee				3.00%

Revenue Recognition, Future Undiscounted Fixed Payments from International Recurring Revenue Customers (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Remaining Performance Obligation [Abstract]
Future undiscounted fixed payments from international recurring revenue customers	$ 725
International [Member]
Remaining Performance Obligation [Abstract]
Future undiscounted fixed payments from international recurring revenue customers	2,676
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Remaining Performance Obligation [Abstract]
Future undiscounted fixed payments from international recurring revenue customers	$ 235
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 \| International [Member]
Remaining Performance Obligation [Abstract]
Future undiscounted fixed payments from international recurring revenue customers	$ 641
Expected timing of satisfaction period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 \| International [Member]
Remaining Performance Obligation [Abstract]
Future undiscounted fixed payments from international recurring revenue customers	$ 1,103
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 \| International [Member]
Remaining Performance Obligation [Abstract]
Future undiscounted fixed payments from international recurring revenue customers	$ 530
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 \| International [Member]
Remaining Performance Obligation [Abstract]
Future undiscounted fixed payments from international recurring revenue customers	$ 312
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 \| International [Member]
Remaining Performance Obligation [Abstract]
Future undiscounted fixed payments from international recurring revenue customers	$ 90
Expected timing of satisfaction period	1 year

Revenue Recognition, Remaining Performance Obligation (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Remaining Performance Obligation [Abstract]
Remaining performance obligations	$ 725
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Remaining Performance Obligation [Abstract]
Remaining performance obligations	$ 235
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 \| Minimum [Member]
Remaining Performance Obligation [Abstract]
Expected timing of satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 \| Maximum [Member]
Remaining Performance Obligation [Abstract]
Expected timing of satisfaction period	3 years

Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Stock-based Compensation [Abstract]

Stock Option Activity

The following table summarizes stock option activity for the six months ended June 30, 2023:

	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (in years)
Outstanding at January 1, 2023		4,474,714		$	1.72
Granted		905,000		$	1.06
Exercised		—		$	—
Forfeited and expired		(10,000	)	$	1.45
Outstanding at June 30, 2023		5,369,714		$	1.61		7.9
Exercisable at June 30, 2023		2,787,390		$	1.81		7.1
Vested and expected to vest		5,369,714		$	1.61		7.9

Weighted Average Assumption Used for Grant Date Fair Value of Option Grants

For the six months ended June 30, 2023, the fair value of each option was estimated on the date of grant using the weighted average assumptions in the table below:

Expected volatility	71.4	%
Risk‑free interest rate	3.6	%
Expected term (in years)	6.2
Expected dividend yield	0.0	%

Summary of Restricted Stock Unit Unvested

Restricted stock units have been issued to certain board members. Restricted stock units unvested are summarized in the following table:

	Number of Shares			Weighted Average Grant Date Fair Value
Unvested at January 1, 2023		119,597		$	0.93
Granted		—		$	—
Vested		(79,730	)	$	0.93
Unvested at June 30, 2023		39,867		$	0.93

Intangible Assets, net (Tables)

6 Months Ended

Jun. 30, 2023

Intangible Assets, net [Abstract]

Components of Intangible Assets

Intangible assets consist of the following as of June 30, 2023 and December 31, 2022:

	Balance		Accumulated Amortization			Intangible Assets, net
June 30, 2023
Core technology	$	5,700	$	(4,560	)	$	1,140
Product technology		12,182		(3,527	)		8,655
Customer relationships		6,900		(5,520	)		1,380
Tradenames		1,500		(1,200	)		300
Pharos customer lists		5,314		(830	)		4,484
	$	31,596	$	(15,637	)	$	15,959

December 31, 2022
Core technology	$	5,700	$	(4,275	)	$	1,425
Product technology		12,182		(3,018	)		9,164
Customer relationships		6,900		(5,175	)		1,725
Tradenames		1,500		(1,125	)		375
Pharos customer lists		5,314		(609	)		4,705
	$	31,596	$	(14,202	)	$	17,394

Estimated Future Amortization Expense for Intangible Assets

The following table summarizes the estimated future amortization expense for the above intangible assets for the next five years:

Remaining 2023	$	1,436
2024		2,871
2025		2,166
2026		1,461
2027		1,461

The Company, Accrued Warranty Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Activity of Warranty Accrual [Roll Forward]
Balance, beginning of year	$ 229	$ 99	$ 207	$ 79
Additions	93	60	120	94
Expirations and claims satisfied	(53)	(26)	(58)	(40)
Total	269	133	269	133
Less current portion within accrued expenses and other current liabilities	(163)	(98)	(163)	(98)	$ (136)
Balance within deferred revenues and other liabilities	$ 106	$ 231	$ 106	$ 231
Minimum [Member]
Accrued Warranty Costs [Abstract]
Standard warranty period			1 year
Offered warranty period			3 years
Maximum [Member]
Accrued Warranty Costs [Abstract]
Standard warranty period			2 years
Offered warranty period			4 years

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 9,034	$ 5,434
Restricted cash	1,361	1,361
Accounts receivable, net of allowance for credit losses of $244 and $382 at June 30, 2023 and December 31, 2022, respectively	4,401	4,471
Inventories	5,921	5,547
Prepaid expenses and other current assets	528	691
Total current assets	21,245	17,504
Property and equipment, net	8,319	7,498
Operating lease right-of-use assets	807	975
Intangible assets, net	15,959	17,394
Goodwill	8,803	8,803
Other assets	71	98
Total assets	55,204	52,272
Current liabilities:
Accounts payable	3,880	3,425
Accrued expenses and other current liabilities	6,731	6,555
Deferred revenues	2,436	2,778
Current portion of operating lease liabilities	392	355
Current portion of contingent consideration	681	313
Total current liabilities	14,120	13,426
Long-term debt, net	14,987	7,476
Deferred revenues and other liabilities	596	314
Deferred tax liability	306	306
Operating lease liabilities, net of current portion	387	610
Contingent consideration, net of current portion	7,899	8,309
Total liabilities	38,295	30,441
Commitments and contingencies (Note 14)
Stockholders' equity:
Series C convertible preferred stock, $0.10 par value; 10,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.001 par value; 150,000,000 shares authorized; 34,881,453 and 34,723,046 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	35	35
Additional paid-in capital	250,085	249,024
Accumulated deficit	(233,211)	(227,228)
Total stockholders' equity	16,909	21,831
Total liabilities and stockholders' equity	$ 55,204	$ 52,272

Intangible Assets, net

6 Months Ended

Jun. 30, 2023

Intangible Assets, net [Abstract]

Intangible Assets, net

Note 7

Intangible Assets, net:

Intangible assets consist of the following as of June 30, 2023 and December 31, 2022:

	Balance		Accumulated Amortization			Intangible Assets, net
June 30, 2023
Core technology	$	5,700	$	(4,560	)	$	1,140
Product technology		12,182		(3,527	)		8,655
Customer relationships		6,900		(5,520	)		1,380
Tradenames		1,500		(1,200	)		300
Pharos customer lists		5,314		(830	)		4,484
	$	31,596	$	(15,637	)	$	15,959

December 31, 2022
Core technology	$	5,700	$	(4,275	)	$	1,425
Product technology		12,182		(3,018	)		9,164
Customer relationships		6,900		(5,175	)		1,725
Tradenames		1,500		(1,125	)		375
Pharos customer lists		5,314		(609	)		4,705
	$	31,596	$	(14,202	)	$	17,394

Amortization expense was $715 and $740 for the three months ended June 30, 2023 and 2022, respectively. Amortization expense was $1,435 and $1,436 for the six months ended June 30, 2023 and 2022, respectively.

Finite-lived intangible assets are tested for impairment when events or changes in circumstances indicate that the carrying value of the asset group may not be recoverable. The Company recognizes an impairment loss when and to the extent that the recoverable amount of an asset group is less than its carrying value. There were no impairment charges for the three and six months ended June 30, 2023 or 2022.

The following table summarizes the estimated future amortization expense for the above intangible assets for the next five years:

Remaining 2023	$	1,436
2024		2,871
2025		2,166
2026		1,461
2027		1,461

Stock-based Compensation, Stock Options (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands			6 Months Ended	12 Months Ended
	Apr. 03, 2023	Mar. 30, 2022	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Stock Option [Abstract]
Stock-based options forfeited (in shares)				60,000
Number of shares [Abstract]
Outstanding at beginning period (in shares)			4,474,714
Granted (in shares)			905,000
Exercised (in shares)			0
Forfeited and expired (in shares)			(10,000)
Outstanding at end of period (in shares)			5,369,714	4,474,714
Exercisable at end of period (in shares)			2,787,390
Vested and expected to vest (in shares)			5,369,714
Weighted average exercise price per share [Abstract]
Outstanding at beginning of period (in dollars per share)			$ 1.72
Granted (in dollars per share)			1.06
Exercised (in dollars per share)			0
Forfeited and expired (in dollars per share)			1.45
Outstanding at end of period (in dollars per share)			1.61	$ 1.72
Exercisable at end of period (in dollars per share)			1.81
Vested and expected to vest (in dollars per share)			$ 1.61
Weighted average remaining contractual term [Abstract]
Outstanding			7 years 10 months 24 days
Exercisable			7 years 1 month 6 days
Vested and expected to vest			7 years 10 months 24 days
Unrecognized compensation expense			$ 1,961
Unrecognized compensation expense, weighted average period			2 years 4 months 24 days
Aggregate intrinsic value of options outstanding			$ 1
Aggregate intrinsic value of options exercisable					$ 0
Chief Executive Officer [Member]
Number of shares [Abstract]
Granted (in shares)	150,000	160,000

Commitments and Contingencies (Details) $ in Thousands		1 Months Ended	3 Months Ended		6 Months Ended
Commitments and Contingencies (Details) $ in Thousands	Feb. 23, 2023 USD ($)	Jan. 31, 2022 USD ($) Device	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Lessee, Operating Lease, Description [Abstract]
Operating lease costs			$ 123	$ 99	$ 229	$ 212
Cash paid for amounts included in measurement of operating lease liabilities			$ 109	$ 114	$ 205	$ 227
Weighted average incremental borrowing rate					8.71%
Weighted average remaining lease term			2 years 3 months 18 days		2 years 3 months 18 days
Operating Lease Maturities [Abstract]
Remaining 2023			$ 220		$ 220
2024			386		386
2025			195		195
2026			55		55
Total remaining lease payments			856		856
Less: imputed interest			(77)		(77)
Total lease liabilities			779		$ 779
Milestone Payments [Abstract]
Development agreement term					3 years
Litigation Settlement [Abstract]
Litigation settlement to be paid	$ 106
Litigation settlement accrued			106		$ 106
Tax Period from March 2014 through April 2020 [Member]
Sales and Use Tax Matters [Abstract]
Estimated tax positions subject to audit					2,375
Tax Period from March 2014 through April 2020 [Member] \| Assessment One [Member]
Sales and Use Tax Matters [Abstract]
Assessment amount			1,484		1,484
Tax Period from March 2014 through April 2020 [Member] \| Assessment Two [Member]
Sales and Use Tax Matters [Abstract]
Assessment amount			$ 891		$ 891
Minimum [Member]
Lessee, Operating Lease, Description [Abstract]
Remaining lease term					1 year
Maximum [Member]
Lessee, Operating Lease, Description [Abstract]
Remaining lease term					4 years
Milestone Payments [Abstract]
Number of devices in development \| Device		3
Future earnout payments		$ 500
Future milestone payments		3,000
Maximum [Member] \| Domestic [Member]
Milestone Payments [Abstract]
Future royalty payments		$ 500

Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 14

Commitments and Contingencies:

Leases

The Company recognizes right-of-use assets (“ROU assets”) and operating lease liabilities when it obtains the right to control an asset under a leasing arrangement with an initial term greater than 12 months. The Company adopted the short-term accounting election for leases with a duration of less than one year. The Company leases its facilities and certain IT and office equipment under non-cancellable operating leases. All of the Company’s leasing arrangements are classified as operating leases with remaining lease terms ranging from one to four years.

Operating lease costs were $123 and $99 for the three months ended June 30, 2023 and 2022, respectively. Operating lease costs were $229 and $212 for the six months ended June 30, 2023 and 2022, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $109 and $114 for the three months ended June 30, 2023 and 2022, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $205 and $227 for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, the weighted average incremental borrowing rate was 8.71% and the weighted average remaining lease term was 2.3 years.

The following table summarizes the Company’s operating lease maturities as of June 30, 2023:

Remaining 2023	$	220
2024		386
2025		195
2026		55
Total remaining lease payments	$	856
Less: imputed interest		(77	)
Total lease liabilities	$	779

Accrued State Sales and Use Tax

The Company records state sales tax collected and remitted for its customers on dermatology procedures equipment sales on a net basis, excluded from revenue. The Company’s sales tax expense that is not presently being collected and remitted for the recurring revenue business is recorded in general and administrative expenses within the condensed consolidated statements of operations.

The Company believes its state sales and use tax accruals have been properly recognized such that, if the Company’s arrangements with customers are deemed more likely than not that the Company would not be exempt from sales tax in a particular state, the basis for measurement of the state sales and use tax is calculated in accordance with ASC 405, Liabilities, as a transaction tax. If and when the Company is successful in defending itself or in settling the sales tax obligation for a lesser amount, the reversal of this liability is to be recorded in the period the settlement is reached. However, the precise scope, timing, and time period at issue, as well as the final outcome of any audit and actual settlement, remains uncertain.

In the ordinary course of business, the Company is, from time to time, subject to audits performed by state taxing authorities. These actions and proceedings are generally based on the position that the arrangements entered into by the Company are subject to sales and use tax rather than exempt from tax under applicable law. Several states have assessed the Company an aggregate of $2,375 including penalties and interest for the period from March 2014 through April 2020. The Company received notification that an administrative state judge issued an opinion finding in favor of the Company that the sale of XTRAC treatment codes was not taxable as sales tax with respect to that state’s first assessment. This ruling covers $1,484 of the total $2,375 of assessments. The relevant taxing authority filed an appeal of the administrative law judge’s finding and, following the submission of legal briefs by both sides and oral argument held in January 2022, on May 6, 2022, the Company received a written decision from State of New York Tax Appeals Tribunal (“Tribunal”) overturning the favorable sales tax determination of the administrative law judge. The Company filed an appeal of the Tribunal’s decision and posted the required appellate bond requiring posting cash collateral, with the New York State Appellate Division, and is awaiting for the appellate court to set a schedule for oral argument.

The Company is also in another jurisdiction’s administrative process of appeal with respect to the remaining $891 of assessments, and the timing of the process has been impacted by the COVID-19 pandemic. If there is a determination that the true object of the Company’s recurring revenue model is not exempt from sales taxes and is not a prescription medicine, or the Company does not have other defenses where the Company prevails, the Company may be subject to sales taxes in those particular states for previous years and in the future, plus potential interest and penalties.

The precise scope, timing and time periods at issue, as well as the final outcomes of the investigations and judicial proceedings, remain uncertain. Accordingly, the Company’s estimate may change from time to time, and actual losses could vary.

Milestone Payments

In January 2022, the Company entered into a Development Agreement (the “Development Agreement”) with Theravant. Under the Development Agreement, the Company will reimburse Theravant for costs incurred in further developing certain TheraClear technology and other healthcare products and methods for the medical aesthetic marketplace. In connection with the development of three devices, Theravant is eligible to receive $500 upon FDA clearance for each device and $500 upon achievement of certain net revenue targets for each device, aggregating to $3,000 of potential future milestone payments under the Development Agreement. The Development Agreement has a three-year term, unless terminated sooner by either party, and is being accounted for separately from the TheraClear asset acquisition discussed in Note 4.

Legal Matters

In the ordinary course of business, the Company is routinely a defendant in or party to pending and threatened legal actions and proceedings, including actions brought on behalf of various classes of claimants. These actions and proceedings are generally based on alleged violations of employment, contract, and other laws. In some of these actions and proceedings, claims for substantial monetary damages are asserted against the Company. In the ordinary course of business, the Company is also subject to regulatory and governmental examinations, information gathering requests, inquiries, investigations, and threatened legal actions and proceedings. In connection with formal and informal inquiries by federal, state, local and foreign agencies, the Company receives numerous requests, subpoenas and orders for documents, testimony, and information in connection with various aspects of its activities.

On April 1, 2022, a proposed representative class action under California’s Private Attorneys General Act (“PAGA”) was filed in Superior Court of California, County of San Diego against the Company and an employment agency which provided the Company with temporary employees. The complaint alleges various violations of the California Labor Code, including California’s wage and hour laws, relating to current and former non-exempt employees of the Company. The complaint seeks class status and payments for allegedly unpaid compensation and attorney’s fees. In a related matter, the attorneys in this matter and the proposed class representative, in a letter dated March 12, 2022, to the California Labor & Workforce Development Agency made nearly identical claims seeking the right to pursue a PAGA action against the Company and the employment agency. On or about May 16, 2022, the plaintiff filed a First Amended Complaint adding a PAGA claim to the action. On or about June 2, 2022, the plaintiff filed an Application to Dismiss Class and Individual Claim without prejudice, in an attempt to pursue a PAGA only complaint. On or about June 30, 2022, the parties entered into a stipulation to allow the plaintiff to file a Second Amended Complaint to clarify the PAGA claim and to stay the pending action to allow an attempt at resolution through mediation. The mediation was held on February 23, 2023, and the matter was settled on terms agreeable to the Company. The settlement, which requires the Company to pay $106, is subject to the right of individual class members to opt out of the settlement and proceed on their own. As of June 30, 2023, $106 has been accrued for this matter.

Intangible Assets, net, Estimated Amortization Expense (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Estimated amortization expense [Abstract]
Remaining 2023	$ 1,436
2024	2,871
2025	2,166
2026	1,461
2027	$ 1,461

Accrued Expenses and Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2023

Accrued Expenses and Other Current Liabilities [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

	June 30, 2023		December 31, 2022
Warranty obligations	$	163	$	136
Compensation and related benefits		2,145		1,997
State sales, use and other taxes		4,203		3,986
Professional fees and other		220		436
Total accrued expenses and other current liabilities	$	6,731	$	6,555

Property and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 31,391		$ 31,391		$ 29,454
Accumulated depreciation and amortization	(23,072)		(23,072)		(21,956)
Property and equipment, net	8,319		8,319		7,498
Depreciation and amortization expense	713	$ 599	1,390	$ 1,224
Dermatology Devices Placed-in-Service [Member]
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	30,767		30,767		28,790
Equipment, Computer Hardware and Software [Member]
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	293		293		293
Furniture and Fixtures [Member]
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	235		235		235
Leasehold Improvements [Member]
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 96		$ 96		$ 136

Long-term Debt

6 Months Ended

Jun. 30, 2023

Long-term Debt [Abstract]

Long-term Debt

Note 9

Long-term Debt:

Senior Term Facility

On September 30, 2021, the Company entered into a credit and security agreement with MidCap Financial Trust (“MidCap”), also acting as the administrative agent, and the lenders identified therein. The credit and security agreement was amended on June 30, 2023. The original terms provided for an $8,000 senior term loan that was drawn upon by the Company upon executing the agreement. Borrowings under the senior term loan bore interest at LIBOR (with a LIBOR floor rate of 0.50%) plus 7.50% per year and were scheduled to mature on September 1, 2026, unless terminated earlier. The Company was obligated to make monthly interest-only payments through September 30, 2024. All borrowings were secured by substantially all of the Company’s assets. The credit and security agreement was amended on January 10, 2022 to provide MidCap’s consent to the acquisition of TheraClear (Note 4). In September 2022, the Company amended the facility to transition, upon the cessation of LIBOR, to one-month Secured Overnight Financing Rate (“SOFR”), or such other applicable period, plus 0.10%, with a floor of 0.50%.

On June 30, 2023, the Company entered into (a) the Amendment No. 3 to Credit and Security Agreement (the “Amendment”) among MidCap, as administrative agent, and the lenders identified therein, which amended the credit and security agreement, dated as of September 30, 2021, as amended January 10, 2022 and September 6, 2022 (as amended by the Amendment, the “Senior Term Facility”); (b) the Amended and Restated Warrant Agreement (the “A&R Warrant”) with MidCap Funding XXVII Trust (together with any registered holder from time to time or any holder of the shares issuable or issued upon the exercise or conversion of the warrant, the “Warrantholder”), which amended and restated the warrant agreement to purchase shares of the common stock of the Company, dated as of September 30, 2021 (the “Prior Warrant”), with the Warrantholder; (c) the Amended and Restated Registration Rights Agreement (the “A&R Registration Rights Agreement”) with the Warrantholder, which amended and restated the registration rights agreement, dated as of September 30, 2021, with the Warrantholder; and (d) a letter agreement (the “Fee Letter Agreement”) with MidCap, as agent.

In connection with the Amendment, the Senior Term Facility provides for a senior secured term loan facility of $20,000, of which $8,000 was drawn by the Company on September 30, 2021 (“Credit Facility #1”), $7,000 was drawn by the Company on June 30, 2023 (“Credit Facility #2”), and an additional $5,000 tranche (“Credit Facility #3”) is available to be drawn by the Company if its Dermatology Recurring Procedures Revenue (as defined in the Senior Term Facility) for the preceding twelve calendar months (ending on the last day of the calendar month for which a compliance certificate is delivered) is greater than or equal to $30,000 (such condition, the “Applicable Funding Condition”). Credit Facility #3 can be drawn beginning on the later of the satisfaction of the Applicable Funding Condition and January 1, 2024, with such commitment terminating on the earlier to occur of December 31, 2024 and the delivery of a written notice by MidCap to the Company terminating the applicable commitments following an Event of Default (as defined in the Senior Term Facility) that has not been waived or cured at the time such notice is delivered. All borrowings are secured by substantially all of the Company’s assets.

Borrowings under the Senior Term Facility bear interest at a rate per annum equal to the sum of (a) the greater of (i) the sum of (A) 30-day forward-looking term rate of one month SOFR, as published by CME Group Benchmark Administration Limited, from time to time, plus (B) 0.10%, and (ii) the applicable floor rate of 3.50%, with such sum reset monthly, and (b) 7.50%. The effective interest rate of the Senior Term Facility as of June 30, 2023 was 13.48%. The Company is obligated to make only interest payments (payable monthly in arrears) through June 1, 2026. Commencing on July 1, 2026 and continuing for the remaining 24 months of the facility, the Company will be required to make monthly interest payments and monthly principal payments based on a straight-line amortization schedule set forth in the Senior Term Facility, subject to certain adjustments as described in the Senior Term Facility. The final maturity date under the Senior Term Facility is June 1, 2028, unless earlier terminated. The Senior Term Facility requires the Company to dedicate 100% of certain insurance proceeds to the prepayment of the outstanding term loan, subject to certain exceptions and net of certain expenses and repayments.

The Company may voluntarily prepay the outstanding term loan under the Senior Term Facility, with such prepayment at least $5,000, at any time upon 30 days’ written notice. Upon prepayment, the Company will be required to pay a prepayment fee equal to (i) 4.00% of the outstanding principal prepaid or required to be prepaid (whichever is greater), if the prepayment is made within 12 months of June 30, 2023, (ii) 3.00% of the outstanding principal prepaid or required to be prepaid (whichever is greater), if the prepayment is made between 12 months and 24 months after June 30, 2023, (iii) 2.00% of the outstanding principal prepaid or required to be prepaid (whichever is greater), if the prepayment is made between 24 months and 36 months after June 30, 2023, or (iv) 1.00% of the outstanding principal prepaid or required to be prepaid (whichever is greater), if the prepayment is made after 36 months after June 30, 2023 and prior to the maturity date.

The Senior Term Facility contains certain customary representations and warranties, affirmative covenants and conditions, as well as various negative covenants. Further, the Senior Term Facility contains (a) a quarterly financial covenant that requires the Company to not have less than $29,000 of net revenue (raised to $40,000 by December 31, 2025 and, for periods ending after December 31, 2025, such net revenue as determined in good faith by MidCap, which shall not be less than the applicable minimum net revenue amount for the immediately preceding period and $40,000) for the trailing 12-month period as of June 30, 2023, and (b) a minimum of unrestricted cash (as defined in the Senior Term Facility), at all times, of not less than $3,000. At June 30, 2023, the Company was in compliance with all financial covenants within the Senior Term Facility.

Upon the occurrence and during the continuance of an event of default, MidCap may, and at the direction of a requisite percentage of the lenders must, (i) suspend or terminate the term loan commitment and Midcap and the other lenders’ obligations with respect thereto, and (ii) by notice to the Company, declare all or any portion of the obligations under the Senior Term Facility to be immediately due and payable. In addition to MidCap’s other rights and available remedies, but subject to applicable cure periods, upon the occurrence and during the continuance of an event of default, MidCap may, and at the direction of a requisite percentage of the lenders must, terminate the Senior Term Facility. At June 30, 2023, no event of default had occurred, and the Company believed that events or conditions having a material adverse effect, giving rise to an acceleration of any amounts outstanding under the Senior Term Facility, had not occurred and was remote.

Pursuant to the Fee Letter Agreement, the Company agreed to pay MidCap, as administrative agent, the following fees: (a) an origination fee on June 30, 2023 in an amount equal to (i) the Credit Extensions (as defined in the Senior Term Facility) in respect of Credit Facility #2, multiplied by (ii) 0.50%; (b) on the maturity date of the Senior Term Facility or any earlier date on which the obligations thereunder become due and payable in full or are otherwise paid in full (such date, the “Full Exit Fee Payment Date”), the Company shall pay an exit fee equal to (i) 3.00% of the total aggregate principal amount of Credit Extensions (as defined in the Senior Term Facility) made pursuant to the Senior Term Facility (regardless of any repayment or prepayment thereof) as of the Full Exit Fee Payment Date (such aggregate amount, the “Exit Fee Base Amount”), less (ii) any Partial Exit Fee (as defined below) previously paid; (c) on the date of any voluntary or mandatory partial prepayment of the borrowings under the Senior Term Facility (or on the date such mandatory prepayment becomes due and payable) (each such date, a “Partial Exit Fee Payment Date”), the Company shall pay an exit fee equal to 3.00% of the principal amount of the credit facilities paid or prepaid (or required to be paid in the case of a mandatory prepayment) as of the Partial Exit Fee Payment Date (such amount, the “Partial Exit Fee”); and (d) an origination fee payable contemporaneously with funding Credit Facility #3 in an amount equal to (i) the Credit Extensions (as defined in the Senior Term Facility) in respect of Credit Facility #3, multiplied by (ii) 0.50%.

The Prior Warrant allowed the Warrantholder, an affiliate of the lender, to purchase 373,626 shares of the Company’s common stock at an exercise price equal to $1.82 per share for a 10-year period ending September 30, 2031. Pursuant to, and in accordance with, the terms and conditions of the A&R Warrant, which amended and restated the Prior Warrant, the Warrantholder can purchase 800,000 shares of the Company’s common stock at an exercise price equal to $0.88 for a 10-year period ending on June 30, 2033. Pursuant to the A&R Registration Rights Agreement, the Company shall register the shares underlying the A&R Warrant, with an initial filing due no later than the 45th day following the date of the A&R Registration Rights Agreement. The amendment of the warrant resulted in an increase in the fair value of the warrant, which has been accounted for as a lender fee.

The June 2023 amendment to the Senior Term Facility has been accounted for as a debt extinguishment, as the new loan is considered substantially different from the original loan. The Company recorded a loss on debt extinguishment of $909 for the three and six months ended June 30, 2023, which includes unamortized debt discount on the original loan of $441, an increase in the fair value of the warrant of $384 and lender fees of $84. In connection with the Amendment, the Company has recorded the $450 exit fee as both a debt discount and an increase to the principal amount of the debt. The debt discount, which also includes third party costs incurred in connection with the Amendment of $13, is being recognized as interest expense over the term of the Senior Term Facility using the effective-interest method. The unamortized debt discount was $463 as of June 30, 2023. The Company recognized interest expense of $298 and $584 during the three and six months ended June 30, 2023, respectively, of which $42 and $83 was related to the amortization of the debt discount for the three and six months ended June 30, 2023. The Company recognized interest expense of $208 and $407 during the three and six months ended June 30, 2022, of which $39 and $76 was related to the amortization of the debt discount for the three and six months ended June 30, 2022.

Future minimum principal payments at June 30, 2023 are as follows:

2026	$	3,750
2027		7,500
2028		3,750
		15,000
Exit fee		450
		15,450
Less: unamortized debt discount		(463	)
Long-term debt, net	$	14,987

Intangible Assets, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Intangible Assets, net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets, Net [Abstract]
Balance	$ 31,596		$ 31,596		$ 31,596
Accumulated amortization	(15,637)		(15,637)		(14,202)
Intangible assets, net	15,959		15,959		17,394
Amortization expense of intangible assets	715	$ 740	1,435	$ 1,436
Impairment of intangible assets	0	$ 0	0	$ 0
Core Technology [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Balance	5,700		5,700		5,700
Accumulated amortization	(4,560)		(4,560)		(4,275)
Intangible assets, net	1,140		1,140		1,425
Product Technology [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Balance	12,182		12,182		12,182
Accumulated amortization	(3,527)		(3,527)		(3,018)
Intangible assets, net	8,655		8,655		9,164
Customer Relationships [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Balance	6,900		6,900		6,900
Accumulated amortization	(5,520)		(5,520)		(5,175)
Intangible assets, net	1,380		1,380		1,725
Tradenames [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Balance	1,500		1,500		1,500
Accumulated amortization	(1,200)		(1,200)		(1,125)
Intangible assets, net	300		300		375
Pharos Customer Lists [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Balance	5,314		5,314		5,314
Accumulated amortization	(830)		(830)		(609)
Intangible assets, net	$ 4,484		$ 4,484		$ 4,705

Liquidity (Details) - USD ($) $ in Thousands	1 Months Ended
Liquidity (Details) - USD ($) $ in Thousands	Oct. 31, 2021	Jun. 30, 2023
MidCap Financial Trust [Member] \| Senior Term Facility [Member]
Equity Distribution Agreement [Abstract]
Term loan		$ 8,000
MidCap Financial Trust [Member] \| Senior Term Facility One [Member]
Equity Distribution Agreement [Abstract]
Term loan		8,000
MidCap Financial Trust [Member] \| Senior Term Facility Two [Member]
Equity Distribution Agreement [Abstract]
Term loan		7,000
MidCap Financial Trust [Member] \| Senior Term Facility Three [Member]
Equity Distribution Agreement [Abstract]
Term loan		$ 5,000
At-the-Market Equity Offering [Member] \| Maximum [Member]
Equity Distribution Agreement [Abstract]
Amount of common stock the Company may sell under equity distribution agreement	$ 11,000

Revenue Recognition

6 Months Ended

Jun. 30, 2023

Revenue Recognition [Abstract]

Revenue Recognition

Note 3

Revenue Recognition:

Revenues from the Company’s dermatology recurring procedures customers are earned by providing physicians with its dermatology devices and charging the physicians a fee for a fixed number of treatment sessions or a fixed fee for a specified period of time not to exceed an agreed upon number of treatments; if that number is exceeded additional fees will have to be paid. The placement of the dermatology devices at physician locations represents embedded leases which are accounted for as operating leases. For the dermatology devices placed-in service under these arrangements, the terms of the domestic arrangements are generally up to 36 months with automatic one-year renewals and include a termination clause that can be effected at any time by either party with 30 to 60 day notice. Amounts paid are generally non-refundable. Sales of access codes for a fixed number of treatment sessions are considered variable treatment code payments and are recognized as revenue over the estimated usage period of the agreed upon number of treatments. Sales of access codes for a specified period of time and monthly rental fees are recognized as revenue on a straight-line basis as the dermatology devices are being used over the term period specified in the agreement. Variable treatment code payments that will be paid only if the customer exceeds the agreed upon number of treatments are recognized only when such treatments are being exceeded and used. Internationally, the Company generally sells access codes for a fixed amount on a monthly basis to its distributors and the terms are generally 48 months, with termination in the event of the customers’ failure to remit payments timely and include a potential buy-out at the end of the term of the contract. Currently, this is the only foreign recurring revenue. Prepaid amounts recorded in deferred revenues and customer deposits recorded in accounts payable are recognized as revenue over the lease term in the patterns described above. Pricing is fixed with the customer. With respect to lease and non-lease components, the Company adopted the practical expedient to account for the arrangement as a single lease component.

Revenues from the Company’s dermatology procedures equipment are recognized when control of the promised goods or services is transferred to its customers or distributors, in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. Accordingly, the Company determines revenue recognition through the following steps:

	•	identification of the contract, or contracts, with a customer;
	•	identification of the performance obligations in the contract;
	•	determination of the transaction price;
	•	allocation of the transaction price to the performance obligations in the contract; and
	•	recognition of revenue when, or as, performance obligations are satisfied.

Accounting for the Company’s contracts involves the use of significant judgments and estimates including determining the separate performance obligations, allocating the transaction price to the different performance obligations and determining the method to measure the entity’s performance toward satisfaction of performance obligations that most faithfully depicts when control is transferred to the customer. The Company allocates the contract’s transaction price to each performance obligation using the Company’s best estimate of the standalone selling price for each distinct good or service in the contract. The Company maximizes the use of observable inputs by beginning with average historical contractual selling prices and adjusting as necessary and on a consistent and rational basis for other inputs such as pricing trends, customer types, volumes and changing cost and margins.

Revenues from dermatology procedures equipment are recognized when control of the promised products is transferred to either the Company’s distributors or end-user customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products (the transaction price). Control transfers to the customer at a point in time. To indicate the transfer of control, the Company must have a present right to payment and legal title must have passed to the customer. The Company ships most of its products FOB shipping point, and as such, the Company primarily transfers control and records revenue upon shipment. From time to time the Company will grant certain customers, for example governmental customers, FOB destination terms, and the transfer of control for revenue recognition occurs upon receipt. The Company has elected to recognize the cost of freight and shipping activities as fulfillment costs. Amounts billed to customers for shipping and handling are included as part of the transaction price and recognized as revenue when control of the underlying goods are transferred to the customer. The related shipping and freight charges incurred by the Company are included in cost of revenues.

The following table summarizes the Company’s expected future undiscounted fixed treatment code payments from dermatology recurring procedures as of June 30, 2023 :

Remaining 2023	$	641
2024		1,103
2025		530
2026		312
2027		90
Total	$	2,676

Remaining performance obligations related to Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year, which are fully or partially unsatisfied at the end of the period. Remaining performance obligations include the potential obligation to perform under extended warranties but exclude any equipment accounted for as leases. As of June 30, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was $725, and the Company expects to recognize $235 of the remaining performance obligations within one year and the balance over one to three years. Contract assets primarily relate to the Company’s rights to consideration for work completed in relation to its services performed but not billed at the reporting date. The contract assets are transferred to receivables when the rights become unconditional. Currently, the Company does not have any contract assets which have not transferred to a receivable.

Contract liabilities primarily relate to extended warranties where the Company has received payments but has not yet satisfied the related performance obligations. The allocations of the transaction price are based on the price of stand-alone warranty contracts sold in the ordinary course of business. The advance consideration received from customers for the warranty services is a contract liability that is recognized ratably over the warranty period. As of June 30, 2023, the $235 of short-term contract liabilities is presented as deferred revenues and the $490 of long-term contract liabilities is presented within deferred revenues and other liabilities on the condensed consolidated balance sheet. For the three months ended June 30, 2023 and 2022, the Company recognized $104 and $255, respectively, as revenue from amounts classified as contract liabilities (i.e. deferred revenues) as of December 31, 2022 and 2021. For the six months ended June 30, 2023 and 2022, the Company recognized $236 and $683, respectively, as revenue from amounts classified as contract liabilities (i.e. deferred revenues) as of December 31, 2022 and 2021.

With respect to contract acquisition costs, the Company applies the practical expedient and expenses these costs immediately.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

The Company (Policies)

6 Months Ended

Jun. 30, 2023

The Company [Abstract]

Principles of Consolidation

Unaudited Interim Condensed Consolidated Financial Statements

Significant Accounting Policies

Use of Estimates

Fair Value Measurements

	•	Level 1 – quoted market prices in active markets for identical assets or liabilities.
	•	Level 2 – observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
	•	Level 3 – inputs that are generally unobservable and typically reflect the Company’s estimate of assumptions that market participants would use in pricing the asset or liability.

Accrued Warranty Costs

	Three Months Ended June 30,
	2023			2022
Balance, beginning of period	$	229		$	99
Additions		93			60
Expirations and claims satisfied		(53	)		(26	)
Total		269			133
Less current portion within accrued expenses and other current liabilities		(163	)		(98	)
Balance within deferred revenues and other liabilities	$	106		$	231

	Six Months Ended June 30,
	2023			2022
Balance, beginning of period	$	207		$	79
Additions		120			94
Expirations and claims satisfied		(58	)		(40	)
Total		269			133
Less current portion within accrued expenses and other current liabilities		(163	)		(98	)
Balance within deferred revenues and other liabilities	$	106		$	231

Net Loss Per Share

The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive:

	June 30,
	2023		2022
Restricted stock units		119,597		75,540
Stock options		5,369,714		4,544,714
Common stock warrants		800,000		373,626
Total		6,289,311		4,993,880

Accounting Pronouncements Recently Adopted and Not Yet Adopted

Accounting Pronouncements Recently Adopted

Recent Accounting Pronouncements Not Yet Adopted

The Company, Net Loss Per Share (Details) - shares	6 Months Ended
The Company, Net Loss Per Share (Details) - shares	Jun. 30, 2023	Jun. 30, 2022
Net Loss Per Share [Abstract]
Potential common stock equivalents (in shares)	6,289,311	4,993,880
Restricted Stock Units [Member]
Net Loss Per Share [Abstract]
Potential common stock equivalents (in shares)	119,597	75,540
Stock Options [Member]
Net Loss Per Share [Abstract]
Potential common stock equivalents (in shares)	5,369,714	4,544,714
Common Stock Warrants [Member]
Net Loss Per Share [Abstract]
Potential common stock equivalents (in shares)	800,000	373,626

Significant Customer Concentrations	6 Months Ended
Significant Customer Concentrations	Jun. 30, 2023
Significant Customer Concentrations [Abstract]
Significant Customer Concentrations	Note 13 Significant Customer Concentrations: For the three months ended June 30, 2023 and 2022, revenues from sales to one of the Company’s distributors were $959, or 11.6%, and $1,840, or 20.2%, respectively. For the six months ended June 30, 2022, revenues from sales to two of the Company’s distributors were $3,773, or 23.4%. No other customer represented more than 10% of total Company revenues for the three and six months ended June 30, 2023 and 2022. No customer represented more than 10% of net accounts receivable as of June 30, 2023. One customer represented 11% of net accounts receivable as of December 31, 2022.

Property and Equipment, net (Tables)

6 Months Ended

Jun. 30, 2023

Property and Equipment, net [Abstract]

Components of Property and Equipment

Property and equipment consist of the following:

	June 30, 2023			December 31, 2022
Dermatology devices placed-in-service	$	30,767		$	28,790
Equipment, computer hardware and software		293			293
Furniture and fixtures		235			235
Leasehold improvements		96			136
		31,391			29,454
Accumulated depreciation and amortization		(23,072	)		(21,956	)
Property and equipment, net	$	8,319		$	7,498

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Beginning balance at Dec. 31, 2021	$ 34	$ 247,059	$ (221,679)	$ 25,414
Beginning balance (in shares) at Dec. 31, 2021	34,364,679
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	368	0	368
Issuance of common stock for acquisition	$ 1	499	0	500
Issuance of common stock for acquisition (in shares)	358,367
Net loss	$ 0	0	(2,502)	(2,502)
Ending balance at Mar. 31, 2022	$ 35	247,926	(224,181)	23,780
Ending balance (in shares) at Mar. 31, 2022	34,723,046
Beginning balance at Dec. 31, 2021	$ 34	247,059	(221,679)	25,414
Beginning balance (in shares) at Dec. 31, 2021	34,364,679
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss				(4,394)
Ending balance at Jun. 30, 2022	$ 35	248,378	(226,073)	22,340
Ending balance (in shares) at Jun. 30, 2022	34,723,046
Beginning balance at Mar. 31, 2022	$ 35	247,926	(224,181)	23,780
Beginning balance (in shares) at Mar. 31, 2022	34,723,046
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	452	0	452
Net loss	0	0	(1,892)	(1,892)
Ending balance at Jun. 30, 2022	$ 35	248,378	(226,073)	22,340
Ending balance (in shares) at Jun. 30, 2022	34,723,046
Beginning balance at Dec. 31, 2022	$ 35	249,024	(227,228)	21,831
Beginning balance (in shares) at Dec. 31, 2022	34,723,046
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	325	0	325
Issuance of restricted stock	$ 0	0	0	0
Issuance of restricted stock (in shares)	158,407
Net loss	$ 0	0	(2,835)	(2,835)
Ending balance at Mar. 31, 2023	$ 35	249,349	(230,063)	19,321
Ending balance (in shares) at Mar. 31, 2023	34,881,453
Beginning balance at Dec. 31, 2022	$ 35	249,024	(227,228)	21,831
Beginning balance (in shares) at Dec. 31, 2022	34,723,046
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss				(5,983)
Ending balance at Jun. 30, 2023	$ 35	250,085	(233,211)	16,909
Ending balance (in shares) at Jun. 30, 2023	34,881,453
Beginning balance at Mar. 31, 2023	$ 35	249,349	(230,063)	19,321
Beginning balance (in shares) at Mar. 31, 2023	34,881,453
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	352	0	352
Modification of common stock warrants	0	384	0	384
Net loss	0	0	(3,148)	(3,148)
Ending balance at Jun. 30, 2023	$ 35	$ 250,085	$ (233,211)	$ 16,909
Ending balance (in shares) at Jun. 30, 2023	34,881,453

Inventories (Tables)

6 Months Ended

Jun. 30, 2023

Inventories [Abstract]

Inventories

Inventories consist of the following:

	June 30, 2023		December 31, 2022
Raw materials and work-in-process	$	5,622	$	5,418
Finished goods		299		129
Total inventories	$	5,921	$	5,547

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2023	Aug. 07, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Document Transition Report	false
Entity File Number	0-51481
Entity Registrant Name	STRATA SKIN SCIENCES, INC.
Entity Central Index Key	0001051514
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	13-3986004
Entity Address, Address Line One	5 Walnut Grove Drive
Entity Address, Address Line Two	Suite 140
Entity Address, City or Town	Horsham
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19044
City Area Code	215
Local Phone Number	619-3200
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	SSKN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		34,913,886

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Allowance for credit losses	$ 244	$ 382
Stockholders' equity:
Series C Convertible Preferred Stock, par value (in dollars per share)	$ 0.1	$ 0.1
Series C Convertible Preferred Stock, shares authorized (in shares)	10,000,000	10,000,000
Series C Convertible Preferred Stock, shares issued (in shares)	0	0
Series C Convertible Preferred Stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	34,881,453	34,723,046
Common stock, shares outstanding (in shares)	34,881,453	34,723,046

The Company, Background (Details) - XTRAC [Member]	6 Months Ended
The Company, Background (Details) - XTRAC [Member]	Jun. 30, 2023 Systems
United States [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Number of systems placed in dermatologists offices	930
International [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Number of systems placed in dermatologists offices	35

Long-term Debt, Future Minimum Principal Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Future Payments for Long-Term Debt [Abstract]
2026	$ 3,750
2027	7,500
2028	3,750
Total	15,000
Exit fee	450
Long term debt after exit fee	15,450
Less: unamortized debt discount	(463)
Long-term debt, net	$ 14,987	$ 7,476

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Taxes [Abstract]
Income tax expense	$ 0	$ 0	$ 0	$ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2023
Income Taxes [Abstract]
Income Taxes	Note 11 Income Taxes: The Company accounts for income taxes using the asset and liability method. The provision for income taxes includes federal, state, and local income taxes currently payable and deferred taxes resulting from temporary differences between the financial statement and tax bases of assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. No income tax expense was incurred for the three or six months ended June 30, 2023 and 2022.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details