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STRATA Skin Sciences (SSKN)

STRATA Skin Sciences is a medical technology company in dermatology and plastic surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions. The Company's proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatment to vitiligo patients. STRATA's unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company's partner dermatology clinics. The XTRAC business has used this proven DTC model to grow its domestic dermatology partner network to over 832 clinics, with a worldwide installed base of over 2,000 devices. The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC, within a 10-mile radius of their house. The Company is a leader in dermatology in-clinic business generation for its partners. The Company has now introduced its Home by XTRAC™ business leveraging in-house resources including DTC advertising, in-house call center and its insurance reimbursement team to provide an at-home, insurance-reimbursed treatment option for patients with certain skin diseases that do not qualify for in-office treatments.

Company profile

Ticker
SSKN
Exchange
CEO
Dolev Rafaeli
Employees
Incorporated
Location
Fiscal year end
Former names
ELECTRO OPTICAL SCIENCES INC /NY, MELA SCIENCES, INC. /NY
SEC CIK
IRS number
133986004

SSKN stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

10 Aug 22
27 Sep 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 10.04M 10.04M 10.04M 10.04M 10.04M 10.04M
Cash burn (monthly) 295.67K 583.08K 630.67K 478.17K 18.67K (no burn)
Cash used (since last report) 865.46K 1.71M 1.85M 1.4M 54.64K n/a
Cash remaining 9.17M 8.33M 8.19M 8.64M 9.98M n/a
Runway (months of cash) 31.0 14.3 13.0 18.1 534.7 n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Jul 22 Shamir Nachum SSKN Common Stock Grant Acquire A No No 0.925 43,244 40K 251,036
1 Jul 22 Samuel Rubinstein SSKN Common Stock Grant Acquire A No No 0.925 37,838 35K 144,621
1 Jul 22 Douglas Strang SSKN Common Stock Grant Acquire A No No 0.925 37,838 35K 72,896
1 Jul 22 Patricia S Walker SSKN Common Stock Grant Acquire A No No 0.925 40,541 37.5K 73,486
30 Jun 22 Douglas Strang SSKN Common Stock Grant Acquire A No No 0.961 9,106 8.75K 35,058
30 Jun 22 Patricia S Walker SSKN Common Stock Grant Acquire A No No 0.961 9,756 9.38K 32,945
15 Jun 22 Samuel Rubinstein SSKN Common Stock Buy Acquire P No No 1.04 1,050 1.09K 106,783
13.8% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 30 24 +25.0%
Opened positions 6 5 +20.0%
Closed positions 0 3 EXIT
Increased positions 3 5 -40.0%
Reduced positions 4 4
13F shares Current Prev Q Change
Total value 13.59M 16.98M -20.0%
Total shares 13.32M 11.7M +13.8%
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners Shares Value Change
Nantahala Capital Management 4.58M $4.4M 0.0%
22NW 2.19M $2.1M 0.0%
22NW Fund 2M $2.72M 0.0%
Renaissance Technologies 1.18M $1.14M -0.3%
WSTD Western Standard 1.14M $1.09M NEW
Vanguard 865.58K $832K 0.0%
Cannell Capital 419.38K $403K NEW
Essex Investment Management 266.99K $257K 0.0%
GS Goldman Sachs 198.59K $191K 0.0%
BLK Blackrock 111.66K $107K -0.9%
Largest transactions Shares Bought/sold Change
WSTD Western Standard 1.14M +1.14M NEW
Cannell Capital 419.38K +419.38K NEW
FNY Investment Advisers 51.21K +51.21K NEW
Wick Capital Partners 23.13K +23.13K NEW
Dimensional Fund Advisors 44.2K -12.86K -22.5%
UBS UBS Group AG - Registered Shares 12.01K +7.91K +192.8%
Tower Research Capital 5.36K -6.68K -55.5%
Renaissance Technologies 1.18M -3.9K -0.3%
BLK Blackrock 111.66K -990 -0.9%
MS Morgan Stanley 510 +95 +22.9%

Financial report summary

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Competition
CuteraRa Medical Systems
Risks
  • Risks Relating to Our Business Operations
  • Risks Relating to Our Common Stock
  • We have incurred losses for a number of years and anticipate that we will incur continued losses for the near future.
  • The current outbreak of the novel coronavirus, or COVID-19, or the future outbreak of any other highly infectious or contagious diseases, could materially and adversely affect our results of operations, financial condition and cash flows. Further, the spread of the COVID-19 outbreak has caused severe disruptions in the U.S. and global economy and financial markets and could potentially create widespread business continuity issues of an as yet unknown magnitude and duration.
  • We may acquire other assets or businesses, or form collaborations or make investments in other companies or technologies that could harm our operating results, dilute our stockholders’ ownership, increase our debt or cause us to incur significant expense.
  • We may not be able to successfully integrate newly acquired businesses, joint ventures and other partnerships into our operations or achieve expected profitability from our acquisitions.
  • Our laser treatments of psoriasis, vitiligo, atopic dermatitis and leukoderma and/or any of our future products or services may fail to gain market acceptance or be impacted by competitive products, services or therapies which could adversely affect our competitive position.
  • The success of our products depends on third-party reimbursement of patients’ costs, which could result in potentially reduced prices or reduced demand and adversely affect our revenues and business operations.
  • The continuing development of our products depends upon our developing and maintaining strong working relationships with physicians.
  • Any failure in our customer education efforts could have a material adverse effect on our revenue and cash flow.
  • If revenue from significant customers declines, we may have difficulty replacing the lost revenue, which would negatively affect our results and operations.
  • If we fail to manage our sales and marketing force or to market and distribute our products effectively, we may experience diminished revenues and profits.
  • We are reliant on a limited number of suppliers for production of our products.
  • Our failure to respond to rapid changes in technology and other applications in the medical devices industry or the development of a cure for skin conditions treated by our products could make our treatment system obsolete.
  • Our customers, or physicians and technicians, as the case may be, may misuse certain of our products, and product liability lawsuits and other damages imposed on us may exceed our insurance coverage, or we may be subject to claims that are not covered by insurance.
  • We must comply with complex statutes prohibiting fraud and abuse, and both we and physicians utilizing our products could be subject to significant penalties for noncompliance.
  • We may be subject, directly or indirectly, to federal and state healthcare fraud and abuse laws and regulations and could face substantial penalties if we are unable to fully comply with such laws.
  • If the effectiveness and safety of our devices are not supported by long-term data, and the level of acceptance of our products by dermatologists does not increase or is not maintained, our revenues could decline.
  • Our failure to obtain or maintain necessary FDA clearances and approvals, or to maintain continued clearances, or equivalents thereof in the U.S. and relevant foreign markets, could hurt our ability to distribute and market our products.
  • If required, clinical trials necessary to support a 510(k) notice or PMA application, for new or modified products, will be expensive and will require the enrollment of large numbers of patients, and suitable patients may be difficult to identify and recruit. Delays or failures in our clinical trials will prevent us from commercializing any modified or new products and will adversely affect our business, operating results and prospects.
  • Our medical device operations are subject to FDA regulatory requirements.
  • Healthcare policy changes may have a material adverse effect on us.
  • Our market acceptance in international markets requires regulatory approvals from foreign governments and may depend on third party reimbursement of participants’ cost.
  • We face substantial competition, which may result in others discovering, developing or commercializing products more successfully than us.
  • Consolidation in the medical device industry could have an adverse effect on our revenue and results of operations.
  • We actively employ social media as part of our marketing strategy, which could give rise to regulatory violations, liability, breaches of data security or reputational damage.
  • Social media companies on which we rely for advertising may change their policies limiting our ability to reach our target markets.
  • We may become subject to claims of infringement or misappropriation of the intellectual property rights of others, which could prohibit us from shipping affected products, require us to obtain licenses from third parties or to develop non-infringing alternatives, and subject us to substantial monetary damages and injunctive relief. Our patents may also be subject to challenge on validity grounds, and our patent applications may be rejected.
  • If we or our third-party manufacturers or suppliers fail to comply with the FDA’s Quality System Regulation or any applicable state equivalent, our manufacturing operations could be interrupted and our potential product sales and operating results could suffer.
  • If we fail to comply with ongoing regulatory requirements, or if we experience unanticipated problems with products, these products could be subject to restrictions or withdrawal from the market.
  • Our medical products may in the future be subject to product recalls that could harm our reputation, business and financial results.
  • If any of our medical products cause or contribute to a death or a serious injury, or malfunction in certain ways, we will be subject to medical device reporting regulations, which can result in voluntary corrective actions or agency enforcement actions.
  • We may have a need for additional funds in the future and there is no guarantee that we will be able to generate those funds from our business.
  • If we do not have enough capital to fund operations, then we will have to cut costs or raise funds.
  • If our actual liability for state sales and use taxes is higher than our accrued liability, it could have a material impact on our financial condition.
  • We may be subject to disruptions or failures in our information technology systems and network infrastructures, including through cyber-attacks or other third-party breaches that could have a material adverse effect on our business.
  • Environmental and health safety laws may result in liabilities, expenses and restrictions on our operations.
  • In the event of certain contingencies, the investors in the May 2018 Equity Financing may receive additional shares issued pursuant to the Retained Risk Provisions as defined in the purchase agreements.
  • Our stock price may be volatile, meaning purchasers of our common stock could incur substantial losses.
  • Our charter documents and Delaware law may inhibit a takeover that stockholders consider favorable and could also limit the market price of our stock.
Management Discussion
  • STRATA Skin Sciences, Inc. 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 now Pharos® excimer lasers and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions. Its products also include the TheraClear® Acne Clearing System utilized in the treatment of mild to moderate inflammatory, comedonal and pustular acne.
  • The XTRAC ultraviolet light excimer laser system is utilized to treat psoriasis, vitiligo and other skin diseases. The XTRAC excimer laser system received clearance from the United States Food and Drug Administration in 2000 and has since become a widely recognized treatment among dermatologists. The system delivers targeted 308nm ultraviolet light to affected areas of skin, leading to psoriasis clearing and vitiligo repigmentation, following a series of treatments. As of June 30, 2022, there were 915 XTRAC systems placed in dermatologists’ offices in the United States under our dermatology recurring procedures model, an increase from 890 at the end of December 31, 2021. Under the dermatology recurring procedures model, the XTRAC system is placed in a physician’s office and fees are charged on a per procedure basis or a fee is charged on a periodic basis not to exceed an agreed upon number of procedures. The XTRAC system’s use for psoriasis is covered by nearly all major insurance companies, including Medicare. The VTRAC Excimer Lamp system, offered internationally in addition to the XTRAC, provides targeted therapeutic efficacy demonstrated by excimer technology with the simplicity of design and reliability of a lamp system. We believe there are approximately 7.5 million people in the United States and up to 125 million people worldwide suffering from psoriasis, and 1% to 2% of the world’s population suffers from vitiligo.
  • The Pharos excimer laser system holds FDA clearance to treat chronic skin diseases, including psoriasis, vitiligo, atopic dermatitis and leukoderma.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
New words: adding, attendance, authority, claim, clarify, inflation, intended, judicial, likelihood, mediation, month, onset, plaintiff, prejudice, presence, relevant, resolution, stay, stipulation, vary, York
Removed: accrual, Aid, analyzed, competition, constrained, emergency, enacted, enactment, expect, force, foresee, long, longer, meet, package, response, retroactively, trillion

Patents

Utility
Method for Targeted Treating Dermatoses
22 Sep 22
Disclosed are methods for localized treatment of a skin condition including administering a therapeutically effective amount of at least one systemic drug to the subject, utilizing a dosimetry device to transmit varying percentages of the UVB light to an area of the subject's skin; assessing a response of the treated area to the varying percentages of the UVB light transmitted thereto; and determining an optimal dose of UVB light, based on the response of the treated area to the varying percentages of UVB light and to the systemic drug; and applying the optimal dose of UVB light to the treatment area.
Utility
Method for Targeted Treating Dermatoses
22 Sep 22
Disclosed are methods for localized treatment of a skin condition including administering a therapeutically effective amount of at least one biological drug to the subject, utilizing a dosimetry device to transmit varying percentages of the UVB light to an area of the subject's skin; assessing a response of the treated area to the varying percentages of the UVB light transmitted thereto; and determining an optimal dose of UVB light, based on the response of the treated area to the varying percentages of UVB light and to the biological drug; and applying the optimal dose of UVB light to the treatment area.
Utility
Tip Section for Use In Phototherapy
15 Sep 22
A tip section for assembly on a phototherapy apparatus the tip section including a front panel having a proximal surface and a distal surface; and at least two nozzles configured to allow passage of laser radiation therethrough, the at least two nozzles protruding out from a distal surface of the front panel, wherein the at least two nozzles include leading edges at their distal end, that are configured to part hair when combed therethrough; and wherein the at least two nozzles are arranged essentially in parallel one next to another along a major axis thereof.
Utility
Excimer Laser System with Long Service Intervals
24 Mar 22
An excimer laser system includes first and second gas cylinders connected to a laser chamber for selectively supplying the laser chamber with gases that are needed to generate and emit laser pulsations having a certain energy level from the laser chamber.