Delaware (State or other jurisdiction of incorporation or organization) | 13-3986004 (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $0.001 par value per share | SSKN | The NASDAQ Stock Market LLC |
Large accelerated filer | Accelerated filer | |||
Non-accelerated filer | Smaller reporting company | |||
Emerging growth company |
Part I. Financial Information: | PAGE | ||
a. | 1 | ||
b. | 2 | ||
c. | 3 | ||
d. | 4 | ||
5 | |||
g. | |||
E-31.1 |
March 31, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||
ASSETS | (unaudited) | (unaudited) | ||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 10,043 | $ | 10,604 | $ | 9,576 | $ | 10,604 | ||||||||
Restricted cash | 7,482 | 7,508 | 7,457 | 7,508 | ||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $220 and $274, respectively | 2,853 | 2,944 | ||||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $206 and $274, respectively | 2,854 | 2,944 | ||||||||||||||
Inventories | 3,312 | 3,444 | 3,049 | 3,444 | ||||||||||||
Prepaid expenses and other current assets | 413 | 331 | 526 | 331 | ||||||||||||
Total current assets | 24,103 | 24,831 | 23,462 | 24,831 | ||||||||||||
Property and equipment, net | 5,788 | 5,529 | 5,931 | 5,529 | ||||||||||||
Operating lease right-of-use assets, net | 902 | 988 | 814 | 988 | ||||||||||||
Intangible assets, net | 5,993 | 6,345 | 5,640 | 6,345 | ||||||||||||
Goodwill | 8,803 | 8,803 | 8,803 | 8,803 | ||||||||||||
Other assets | 265 | 282 | 249 | 282 | ||||||||||||
Total assets | $ | 45,854 | $ | 46,778 | $ | 44,899 | $ | 46,778 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Note payable | $ | 7,275 | $ | 7,275 | $ | 7,275 | $ | 7,275 | ||||||||
Current portion of long-term debt | 1,811 | 1,478 | 3 | 1,478 | ||||||||||||
Accounts payable | 3,151 | 2,764 | 2,642 | 2,764 | ||||||||||||
Other accrued liabilities | 5,286 | 4,690 | 5,101 | 4,690 | ||||||||||||
Current portion of operating lease liabilities | 375 | 369 | 383 | 369 | ||||||||||||
Deferred revenues | 2,208 | 2,262 | 2,375 | 2,262 | ||||||||||||
Total current liabilities | 20,106 | 18,838 | 17,779 | 18,838 | ||||||||||||
Long-term liabilities: | ||||||||||||||||
Long-term debt, net | 717 | 1,050 | 497 | 1,050 | ||||||||||||
Deferred tax liability | 258 | 254 | 262 | 254 | ||||||||||||
Long-term operating lease liabilities, net | 613 | 710 | 513 | 710 | ||||||||||||
Other liabilities | 24 | 34 | 49 | 34 | ||||||||||||
Total liabilities | 21,718 | 20,886 | 19,100 | 20,886 | ||||||||||||
Commitments and contingencies (see Note 15) | 0 | 0 | ||||||||||||||
Stockholders' equity: | ||||||||||||||||
Series C Convertible Preferred Stock, $.10 par value, 10,000,000 shares authorized; 0 shares issued and outstanding at March 31, 2021 and, December 31, 2020 | - | - | ||||||||||||||
Common Stock, $.001 par value, 150,000,000 shares authorized; 33,817,305 and 33,801,045 shares issued and outstanding at March 31, 2021 and, December 31, 2020, respectively | 34 | 34 | ||||||||||||||
Stockholders’ equity: | ||||||||||||||||
Series C Convertible Preferred Stock, $0.10 par value, 10,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2021 and, December 31, 2020 | 0 | 0 | ||||||||||||||
Common Stock, $0.001 par value, 150,000,000 shares authorized; 33,889,239, and 33,801,045 shares issued and outstanding at June 30, 2021 and, December 31, 2020, respectively | 34 | 34 | ||||||||||||||
Additional paid-in capital | 245,493 | 244,831 | 246,074 | 244,831 | ||||||||||||
Accumulated deficit | (221,391 | ) | (218,973 | ) | (220,309 | ) | (218,973 | ) | ||||||||
Total stockholders' equity | 24,136 | 25,892 | ||||||||||||||
Total stockholders’ equity | 25,799 | 25,892 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 45,854 | $ | 46,778 | $ | 44,899 | $ | 46,778 |
For the Three Months Ended March 31, | For the Three Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues, net | $ | 5,827 | $ | 6,730 | $ | 7,382 | $ | 4,030 | ||||||||
Cost of revenues | 2,114 | 2,331 | 2,621 | 2,066 | ||||||||||||
Gross profit | 3,713 | 4,399 | 4,761 | 1,964 | ||||||||||||
Operating expenses: | ||||||||||||||||
Engineering and product development | 384 | 292 | 403 | 247 | ||||||||||||
Selling and marketing | 2,932 | 2,953 | 3,160 | 1,442 | ||||||||||||
General and administrative | 2,789 | 2,102 | 2,121 | 1,890 | ||||||||||||
6,105 | 5,347 | 5,684 | 3,579 | |||||||||||||
Loss from operations | (2,392 | ) | (948 | ) | (923 | ) | (1,615 | ) | ||||||||
Other (expense) income, net: | ||||||||||||||||
Interest (expense) income, net | (22 | ) | 1 | |||||||||||||
Other income (expense), net: | ||||||||||||||||
Gain on extinguishment of debt | 2,028 | 0 | ||||||||||||||
Interest expense net | (19 | ) | (18 | ) | ||||||||||||
(22 | ) | 1 | 2,009 | (18 | ) | |||||||||||
Loss before income taxes | (2,414 | ) | (947 | ) | ||||||||||||
Income (loss) before income taxes | 1,086 | (1,633 | ) | |||||||||||||
Income tax expense | (4 | ) | (88 | ) | (4 | ) | (47 | ) | ||||||||
Net loss | $ | (2,418 | ) | $ | (1,035 | ) | ||||||||||
Net income (loss) | $ | 1,082 | $ | (1,680 | ) | |||||||||||
Loss attributable to common shares | $ | (2,418 | ) | $ | (1,018 | ) | ||||||||||
Loss attributable to Preferred Series C shares | $ | - | $ | (17 | ) | |||||||||||
Loss per common share: | ||||||||||||||||
Earnings (loss) attributable to common shares | $ | 1,082 | $ | (1,680 | ) | |||||||||||
Earnings (loss) attributable to Preferred Series C shares | 0 | 0 | ||||||||||||||
Earnings (loss) per common share: | ||||||||||||||||
Basic | $ | (0.07 | ) | $ | (0.03 | ) | $ | 0.03 | $ | (0.05 | ) | |||||
Diluted | $ | (0.07 | ) | $ | (0.03 | ) | $ | 0.03 | $ | (0.05 | ) | |||||
Shares used in computing loss per common share: | ||||||||||||||||
Shares used in computing earnings (loss) per common share: | ||||||||||||||||
Basic | 33,802,129 | 33,164,321 | 33,876,568 | 33,731,739 | ||||||||||||
Diluted | 33,802,129 | 33,164,321 | 34,318,495 | 33,731,739 | ||||||||||||
Loss per Preferred Series C share - basic and diluted | $ | - | $ | (11.42 | ) | |||||||||||
Shares used in computing loss per basic and diluted Preferred Series C Shares | - | 1,480 |
For the Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Revenues, net | $ | 13,209 | $ | 10,760 | ||||
Cost of revenues | 4,735 | 4,397 | ||||||
Gross profit | 8,474 | 6,363 | ||||||
Operating expenses: | ||||||||
Engineering and product development | 787 | 539 | ||||||
Selling and marketing | 6,092 | 4,395 | ||||||
General and administrative | 4,910 | 3,992 | ||||||
11,789 | 8,926 | |||||||
Loss from operations | (3,315 | ) | (2,563 | ) | ||||
Other income (expense), net: | ||||||||
Gain on extinguishment of debt | 2,028 | 0 | ||||||
Interest expense, net | (41 | ) | (17 | ) | ||||
1,987 | (17 | ) | ||||||
Loss before income taxes | (1,328 | ) | (2,580 | ) | ||||
Income tax expense | (8 | ) | (135 | ) | ||||
Net loss | $ | (1,336 | ) | $ | (2,715 | ) | ||
Loss attributable to common shares | $ | (1,336 | ) | $ | (2,693 | ) | ||
Loss attributable to Preferred Series C shares | 0 | $ | (22 | ) | ||||
Loss per common share: | ||||||||
Basic | $ | (0.04 | ) | $ | (0.08 | ) | ||
Diluted | $ | (0.04 | ) | $ | (0.08 | ) | ||
Shares used in computing loss per common share: | ||||||||
Basic | 33,839,554 | 33,448,030 | ||||||
Diluted | 33,839,554 | 33,448,030 | ||||||
Loss per Preferred Series C share - basic and diluted | 0 | $ | (29.93 | ) | ||||
Shares used in computing loss per basic and diluted Preferred Series C Shares | 0 | 740 |
Convertible Preferred Stock – Series C | Common Stock | Additional Paid-In | Accumulated | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||
BALANCE, January 1, 2020 | 2,103 | $ | 1 | 32,932,273 | $ | 33 | $ | 243,180 | $ | (214,561 | ) | $ | 28,653 | |||||||||||||||
Stock-based compensation | - | - | - | - | 430 | - | 430 | |||||||||||||||||||||
Conversion of convertible preferred stock into common stock | (2,103 | ) | (1 | ) | 782,089 | 1 | - | |||||||||||||||||||||
Net loss | - | - | - | - | - | (1,035 | ) | (1,035 | ) | |||||||||||||||||||
BALANCE, March 31, 2020 | - | $ | - | 33,714,362 | $ | 34 | $ | 243,610 | $ | (215,596 | ) | $ | 28,048 |
Convertible Preferred Stock – Series C | Common Stock | Additional Paid-In | Accumulated | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||
BALANCE, January 1, 2021 | - | $ | - | 33,801,045 | $ | 34 | $ | 244,831 | $ | (218,973 | ) | $ | 25,892 | |||||||||||||||
Stock-based compensation | - | - | - | - | 662 | - | 662 | |||||||||||||||||||||
Issuance of restricted stock | - | - | 16,260 | - | - | - | - | |||||||||||||||||||||
Net loss | - | - | - | - | - | (2,418 | ) | (2,418 | ) | |||||||||||||||||||
BALANCE, March 31, 2021 | - | $ | - | 33,817,305 | $ | 34 | $ | 245,493 | $ | (221,391 | ) | $ | 24,136 |
For the Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Cash Flows From Operating Activities: | ||||||||
Net loss | $ | (2,418 | ) | $ | (1,035 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 833 | 1,038 | ||||||
Amortization of right-of-use asset | 86 | 79 | ||||||
Provision for doubtful accounts | (54 | ) | 2 | |||||
Stock-based compensation | 662 | 430 | ||||||
Deferred taxes | 4 | 88 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 145 | 1,176 | ||||||
Inventories | 132 | (444 | ) | |||||
Prepaid expenses and other assets | (65 | ) | 43 | |||||
Accounts payable | 387 | 222 | ||||||
Other accrued liabilities | 596 | 16 | ||||||
Other liabilities | (10 | ) | (59 | ) | ||||
Operating lease liabilities | (91 | ) | (60 | ) | ||||
Deferred revenues | (54 | ) | (898 | ) | ||||
Net cash provided by operating activities | 153 | 598 | ||||||
Cash Flows From Investing Activities: | ||||||||
Lasers placed-in-service | (654 | ) | (596 | ) | ||||
Purchases of property and equipment | (86 | ) | - | |||||
Net cash used in investing activities | (740 | ) | (596 | ) | ||||
Net (decrease) increase in cash and cash equivalents and restricted cash | (587 | ) | 2 | |||||
Cash, cash equivalents and restricted cash, beginning of period | 18,112 | 15,629 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 17,525 | $ | 15,631 | ||||
Cash and cash equivalents | $ | 10,043 | $ | 8,150 | ||||
Restricted cash | 7,482 | 7,481 | ||||||
$ | 17,525 | $ | 15,631 | |||||
Supplemental information of cash and non-cash transactions: | ||||||||
Cash paid for interest | $ | 30 | $ | 52 |
Convertible Preferred Stock – Series C | Common Stock | Additional Paid-In | Accumulated | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||
BALANCE, January 1, 2020 | 2,103 | $ | 1 | 32,932,273 | $ | 33 | $ | 243,180 | $ | (214,561 | ) | $ | 28,653 | |||||||||||||||
Stock-based compensation | - | 0 | - | 0 | 430 | 0 | 430 | |||||||||||||||||||||
Conversion of convertible preferred stock into common stock | (2,103 | ) | (1 | ) | 782,089 | 1 | 0 | 0 | 0 | |||||||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (1,035 | ) | (1,035 | ) | |||||||||||||||||||
BALANCE, March 31, 2020 | 0 | $ | 0 | 33,714,362 | $ | 34 | $ | 243,610 | $ | (215,596 | ) | $ | 28,048 | |||||||||||||||
Stock-based compensation | - | 0 | 0 | 0 | 410 | 0 | 410 | |||||||||||||||||||||
Issuance of restricted stock | 0 | 0 | 40,547 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (1,680 | ) | (1,680 | ) | |||||||||||||||||||
BALANCE, June 30, 2020 | 0 | $ | 0 | 33,754,909 | $ | 34 | $ | 244,020 | $ | (217,276 | ) | $ | 26,778 |
Convertible Preferred Stock – Series C | Common Stock | Additional Paid-In | Accumulated | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||
BALANCE, January 1, 2021 | 0 | $ | 0 | 33,801,045 | $ | 34 | $ | 244,831 | $ | (218,973 | ) | $ | 25,892 | |||||||||||||||
Stock-based compensation | - | 0 | - | 0 | 662 | 0 | 662 | |||||||||||||||||||||
Issuance of restricted stock | 0 | 0 | 16,260 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (2,418 | ) | (2,418 | ) | |||||||||||||||||||
BALANCE, March 31, 2021 | 0 | $ | 0 | 33,817,305 | $ | 34 | $ | 245,493 | $ | (221,391 | ) | $ | 24,136 | |||||||||||||||
Stock-based compensation | - | 0 | - | 0 | 581 | 0 | 581 | |||||||||||||||||||||
Issuance of restricted stock | 0 | 0 | 71,934 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Net income | - | 0 | - | 0 | 0 | 1,082 | 1,082 | |||||||||||||||||||||
BALANCE, June 30, 2021 | 0 | $ | 0 | 33,889,239 | $ | 34 | $ | 246,074 | $ | (220,309 | ) | $ | 25,799 |
For the Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Cash Flows From Operating Activities: | ||||||||
Net loss | $ | (1,336 | ) | $ | (2,715 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 1,706 | 1,986 | ||||||
Amortization of right-of-use asset | 174 | 159 | ||||||
Provision for doubtful accounts | (68 | ) | 72 | |||||
Stock-based compensation | 1,243 | 840 | ||||||
Loss on lasers placed in-service | 63 | 19 | ||||||
Gain on extinguishment of debt | (2,028 | ) | 0 | |||||
Deferred taxes | 8 | 135 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 158 | 2,953 | ||||||
Inventories | 395 | (443 | ) | |||||
Prepaid expenses and other assets | (162 | ) | 116 | |||||
Accounts payable | (122 | ) | 571 | |||||
Other accrued liabilities | 411 | (431 | ) | |||||
Other liabilities | 15 | (107 | ) | |||||
Operating lease liabilities | (183 | ) | (142 | ) | ||||
Deferred revenues | 113 | (1,812 | ) | |||||
Net cash provided by operating activities | 387 | 1,201 | ||||||
Cash Flows From Investing Activities: | ||||||||
Lasers placed-in-service | (1,369) | (730) | ||||||
Purchases of property and equipment | (97) | 0 | ||||||
Net cash used in investing activities | (1,466) | (730) | ||||||
Cash Flows From Financing Activities | ||||||||
Proceeds from note payables and long-term debt | 0 | 2,528 | ||||||
Net cash provided by financing activities | 0 | 2,528 | ||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | (1,079 | ) | 2,999 | |||||
Cash, cash equivalents and restricted cash, beginning of period | 18,112 | 15,629 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 17,033 | $ | 18,628 | ||||
Cash and cash equivalents | $ | 9,576 | $ | 11,231 | ||||
Restricted cash | 7,457 | 7,397 | ||||||
$ | 17,033 | $ | 18,628 | |||||
Supplemental information of cash and non-cash transactions: | ||||||||
Cash paid for interest | $ | 57 | $ | 103 |
• | Level 1 – unadjusted quoted prices are available in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. | |
• | Level 2 – pricing inputs are other than quoted prices in active markets that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. | |
• | Level 3 – pricing inputs are unobservable for the non-financial asset or liability and only used when there is little, if any, market activity for the non-financial asset or liability at the measurement date. The inputs into the determination of fair value require significant management judgment or estimation. Fair value is determined using comparable market transactions and other valuation methodologies, adjusted as appropriate for liquidity, credit, market and/or other risk factors. |
Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | |||||||||||||||
Common Stock | Series C Convertible Preferred Stock | Common Stock | Series C Convertible Preferred Stock | |||||||||||||
Loss attributable to each class | $ | (2,418 | ) | $ | - | $ | (1,018 | ) | $ | (17 | ) | |||||
Weighted average number of shares outstanding during the period | 33,802,129 | - | 33,164,321 | 1,480 | ||||||||||||
Basic and Diluted loss per share | $ | (0.07 | ) | $ | - | $ | (0.03 | ) | $ | (11.42 | ) |
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | |||||||||||||||
Common Stock | Series C Convertible Preferred Stock | Common Stock | Series C Convertible Preferred Stock | |||||||||||||
Earnings (loss) attributable to each class | $ | 1,082 | $ | 0 | $ | (1,336 | ) | $ | 0 | |||||||
Weighted average number of shares outstanding during the period basic | 33,876,568 | 0 | 33,839,554 | 0 | ||||||||||||
Weighted average number of shares outstanding during the period diluted | 34,318,495 | 0 | 33,839,554 | 0 | ||||||||||||
Basic and Diluted earnings (loss) per share | $ | 0.03 | $ | 0 | $ | (0.04 | ) | $ | 0 |
Three Months Ended June 30, 2020 | Six Months Ended June 30, 2020 | |||||||||||||||
Common Stock | Series C Convertible Preferred Stock | Common Stock | Series C Convertible Preferred Stock | |||||||||||||
Loss attributable to each class | $ | (1,680 | ) | $ | 0 | $ | (2,693 | ) | $ | (22 | ) | |||||
Weighted average number of shares outstanding during the period | 33,731,739 | 0 | 33,448,030 | 740 | ||||||||||||
Basic and Diluted loss per share | $ | (0.05 | ) | $ | 0 | $ | (0.08 | ) | $ | (29.93 | ) |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||
Common stock purchase warrants | 6,384 | 749,901 | 0 | 697,154 | 3,174 | 723,527 | ||||||||||||||
Restricted stock units | 87,109 | 169,023 | 12,671 | 151,646 | 49,685 | 160,334 | ||||||||||||||
Common stock options | 5,837,085 | 4,908,038 | 5,352,850 | 4,908,038 | 6,384,288 | 4,908,038 | ||||||||||||||
Total | 5,930,578 | 5,826,962 | 5,365,521 | 5,756,838 | 6,437,147 | 5,791,899 |
Three Months Ended March 31, 2021 | Three Months Ended June 30, 2021 | |||||||||||||||||||||||
Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | |||||||||||||||||||
Domestic | $ | 4,426 | $ | 258 | $ | 4,684 | $ | 5,127 | $ | 336 | $ | 5,463 | ||||||||||||
Foreign | 253 | 890 | 1,143 | 325 | 1,594 | 1,919 | ||||||||||||||||||
Total | $ | 4,679 | $ | 1,148 | $ | 5,827 | $ | 5,452 | $ | 1,930 | $ | 7,382 |
Six Months Ended June 30, 2021 | ||||||||||||
Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | ||||||||||
Domestic | $ | 9,553 | $ | 594 | $ | 10,147 | ||||||
Foreign | 578 | 2,484 | 3,062 | |||||||||
Total | $ | 10,131 | $ | 3,078 | $ | 13,209 |
Three Months Ended March 31, 2020 | ||||||||||||
Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | ||||||||||
Domestic | $ | 5,597 | $ | 315 | $ | 5,912 | ||||||
Foreign | 104 | 714 | 818 | |||||||||
Total | $ | 5,701 | $ | 1,029 | $ | 6,730 |
Three Months Ended June 30, 2020 | ||||||||||||
Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | ||||||||||
Domestic | $ | 2,670 | $ | 125 | $ | 2,795 | ||||||
Foreign | 126 | 1,109 | 1,235 | |||||||||
Total | $ | 2,796 | $ | 1,234 | $ | 4,030 |
Six Months Ended June 30, 2020 | ||||||||||||
Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | ||||||||||
Domestic | $ | 8,267 | $ | 440 | $ | 8,707 | ||||||
Foreign | 230 | 1,823 | 2,053 | |||||||||
Total | $ | 8,497 | $ | 2,263 | $ | 10,760 |
Remaining 2021 | $ | 984 | $ | 655 | ||||
2022 | 1,317 | 1,311 | ||||||
2023 | 1,226 | 1,234 | ||||||
2024 | 776 | 857 | ||||||
2025 | 123 | 140 | ||||||
Thereafter | - | 0 | ||||||
Total | $ | 4,426 | $ | 4,197 |
March 31, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||
Raw materials and work-in-process | $ | 2,751 | $ | 2,949 | $ | 2,877 | $ | 2,949 | ||||||||
Finished goods | 561 | 495 | 172 | 495 | ||||||||||||
Total inventories | $ | 3,312 | $ | 3,444 | $ | 3,049 | $ | 3,444 |
June 30, 2021 | December 31, 2020 | |||||||
Lasers placed-in-service | $ | 24,147 | $ | 22,942 | ||||
Equipment, computer hardware and software | 224 | 146 | ||||||
Furniture and fixtures | 262 | 243 | ||||||
Leasehold improvements | 43 | 43 | ||||||
24,676 | 23,374 | |||||||
Accumulated depreciation and amortization | (18,745 | ) | (17,845 | ) | ||||
Property and equipment, net | $ | 5,931 | $ | 5,529 |
Balance | Accumulated Amortization | Intangible assets, net | ||||||||||
Core technology | $ | 5,700 | $ | (3,420 | ) | $ | 2,280 | |||||
Product technology | 2,000 | (2,000 | ) | 0 | ||||||||
Customer relationships | 6,900 | (4,140 | ) | 2,760 | ||||||||
Tradenames | 1,500 | (900 | ) | 600 | ||||||||
$ | 16,100 | $ | (10,460 | ) | $ | 5,640 |
March 31, 2021 | December 31, 2020 | |||||||
Lasers placed-in-service | $ | 23,596 | $ | 22,942 | ||||
Equipment, computer hardware and software | 223 | 146 | ||||||
Furniture and fixtures | 252 | 243 | ||||||
Leasehold improvements | 43 | 43 | ||||||
24,114 | 23,374 | |||||||
Accumulated depreciation and amortization | (18,326 | ) | (17,845 | ) | ||||
Property and equipment, net | $ | 5,788 | $ | 5,529 |
Balance | Accumulated Amortization | Intangible assets, net | ||||||||||
Core technology | $ | 5,700 | $ | (3,278 | ) | $ | 2,422 | |||||
Product technology | 2,000 | (2,000 | ) | - | ||||||||
Customer relationships | 6,900 | (3,967 | ) | 2,933 | ||||||||
Tradenames | 1,500 | (862 | ) | 638 | ||||||||
$ | 16,100 | $ | (10,107 | ) | $ | 5,993 |
Remaining 2021 | $ | 1,058 | ||
2022 | 1,410 | |||
2023 | 1,410 | |||
2024 | 1,410 | |||
2025 | 705 | |||
Total | $ | 5,993 |
March 31, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||
Accrued warranty, current | $ | 63 | $ | 87 | $ | 67 | $ | 87 | ||||||||
Accrued compensation, including commissions and vacation | 1,491 | 891 | 1,336 | 891 | ||||||||||||
Accrued state sales, use and other taxes | 3,150 | 3,105 | 3,154 | 3,105 | ||||||||||||
Accrued professional fees and other accrued liabilities | 582 | 607 | 544 | 607 | ||||||||||||
Total other accrued liabilities | $ | 5,286 | $ | 4,690 | $ | 5,101 | $ | 4,690 |
Three Months Ended, June 30, | Six Months Ended, June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Accrual at beginning of period | $ | 85 | $ | 181 | $ | 113 | $ | 232 | ||||||||
Additions charged to warranty expense | 36 | 6 | 40 | 9 | ||||||||||||
Expiring warranties/claimed satisfied | (23 | ) | (48 | ) | (55 | ) | (102 | ) | ||||||||
Total | 98 | 139 | 98 | 139 | ||||||||||||
Less: current portion | (67 | ) | (119 | ) | (67 | ) | (119 | ) | ||||||||
Total long-term accrued warranty costs | $ | 31 | $ | 20 | $ | 31 | $ | 20 |
Three Months Ended, March 31, | ||||||||
2021 | 2020 | |||||||
Accrual at beginning of period | $ | 113 | $ | 232 | ||||
Additions charged to warranty expense | 4 | 3 | ||||||
Expiring warranties/claimed satisfied | (32 | ) | (54 | ) | ||||
Total | 85 | 181 | ||||||
Less: current portion | (63 | ) | (143 | ) | ||||
Total long-term accrued warranty costs | $ | 22 | $ | 38 |
Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | |||||||||||||||||||
Revenues | $ | 4,679 | $ | 1,148 | $ | 5,827 | $ | 5,452 | $ | 1,930 | $ | 7,382 | ||||||||||||
Costs of revenues | 1,501 | 613 | 2,114 | 1,635 | 986 | 2,621 | ||||||||||||||||||
Gross profit | 3,178 | 535 | 3,713 | 3,817 | 944 | 4,761 | ||||||||||||||||||
Gross profit % | 67.9 | % | 46.6 | % | 63.7 | % | 70.0 | % | 48.9 | % | 64.5 | % | ||||||||||||
Allocated operating expenses: | ||||||||||||||||||||||||
Engineering and product development | 361 | 23 | 384 | 319 | 84 | 403 | ||||||||||||||||||
Selling and marketing | 2,802 | 130 | 2,932 | 2,909 | 251 | 3,160 | ||||||||||||||||||
Unallocated operating expenses | - | - | 2,789 | 0 | 0 | 2,121 | ||||||||||||||||||
3,163 | 153 | 6,105 | 3,228 | 335 | 5,684 | |||||||||||||||||||
Income (loss) from operations | 15 | 382 | (2,392 | ) | 589 | 609 | (923 | ) | ||||||||||||||||
Gain on extinguishment of debt | 0 | 0 | 2,028 | |||||||||||||||||||||
Interest expense, net | - | - | (22 | ) | 0 | 0 | (19 | ) | ||||||||||||||||
$ | 589 | $ | 609 | $ | 1,086 | |||||||||||||||||||
Income (loss) before income taxes | $ | 15 | $ | 382 | $ | (2,414 | ) |
Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | ||||||||||
Revenues | $ | 10,131 | $ | 3,078 | $ | 13,209 | ||||||
Costs of revenues | 3,136 | 1,599 | 4,735 | |||||||||
Gross profit | 6,995 | 1,479 | 8,474 | |||||||||
Gross profit % | 69.0 | % | 48.1 | % | 64.2 | % | ||||||
Allocated operating expenses: | ||||||||||||
Engineering and product development | 680 | 107 | 787 | |||||||||
Selling and marketing | 5,711 | 381 | 6,092 | |||||||||
Unallocated operating expenses | 0 | 0 | 4,910 | |||||||||
6,391 | 488 | 11,789 | ||||||||||
Income (loss) from operations | 604 | 991 | (3,315 | ) | ||||||||
Gain on extinguishment of debt | 0 | 0 | 2,028 | |||||||||
Interest expense, net | 0 | 0 | (41 | ) | ||||||||
Income (loss) before income taxes | $ | 604 | $ | 991 | $ | (1,328 | ) |
Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | ||||||||||
Revenues | $ | 2,796 | $ | 1,234 | $ | 4,030 | ||||||
Costs of revenues | 1,364 | 702 | 2,066 | |||||||||
Gross profit | 1,432 | 532 | 1,964 | |||||||||
Gross profit % | 51.2 | % | 43.1 | % | 48.7 | % | ||||||
Allocated operating expenses: | ||||||||||||
Engineering and product development | 225 | 22 | 247 | |||||||||
Selling and marketing | 1,341 | 101 | 1,442 | |||||||||
Unallocated operating expenses | 0 | 0 | 1,890 | |||||||||
1,566 | 123 | 3,579 | ||||||||||
Income (loss) from operations | (134 | ) | 409 | (1,615 | ) | |||||||
Interest expense, net | 0 | 0 | (18 | ) | ||||||||
Income (loss) before income taxes | $ | (134 | ) | $ | 409 | $ | (1,633 | ) |
Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | Dermatology Recurring Procedures | Dermatology Procedures Equipment | TOTAL | |||||||||||||||||||
Revenues | $ | 5,701 | $ | 1,029 | $ | 6,730 | $ | 8,497 | $ | 2,263 | $ | 10,760 | ||||||||||||
Costs of revenues | 1,802 | 529 | 2,331 | 3,166 | 1,231 | 4,397 | ||||||||||||||||||
Gross profit | 3,899 | 500 | 4,399 | 5,331 | 1,032 | 6,363 | ||||||||||||||||||
Gross profit % | 68.4 | % | 48.6 | % | 65.4 | % | 62.7 | % | 45.6 | % | 59.1 | % | ||||||||||||
Allocated operating expenses: | ||||||||||||||||||||||||
Engineering and product development | 274 | 18 | 292 | 499 | 40 | 539 | ||||||||||||||||||
Selling and marketing | 2,797 | 156 | 2,953 | 4,138 | 257 | 4,395 | ||||||||||||||||||
Unallocated operating expenses | - | - | 2,102 | 0 | 0 | 3,992 | ||||||||||||||||||
3,071 | 174 | 5,347 | 4,637 | 297 | 8,926 | |||||||||||||||||||
Income (loss) from operations | 828 | 326 | (948 | ) | 694 | 735 | (2,563 | ) | ||||||||||||||||
Interest expense, net | - | - | 1 | 0 | 0 | (17 | ) | |||||||||||||||||
Income (loss) before income taxes | $ | 828 | $ | 326 | $ | (947 | ) | $ | 694 | $ | 735 | $ | (2,580 | ) |
For the year ending December 31, | Amount | |||
Remaining 2021 | $ | 239 | ||
2022 | 371 | |||
2023 | 242 | |||
2024 | 186 | |||
Total remaining lease payments | 1,038 | |||
Less: imputed interest | (142 | ) | ||
Total lease liabilities | $ | 896 |
For the year ending December 31, | Amount | |||
Remaining 2021 | $ | 349 | ||
2022 | 371 | |||
2023 | 242 | |||
2024 | 186 | |||
Total remaining lease payments | 1,148 | |||
Less: imputed interest | (160 | ) | ||
Total lease liabilities | $ | 988 |
ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
• | XTRAC® Excimer Laser. XTRAC received FDA clearance in 2000 and has since become a widely recognized treatment among dermatologists for psoriasis and other skin diseases. The XTRAC System delivers ultra-narrowband ultraviolet B (“UVB”) light to affected areas of skin. Following a series of treatments typically performed twice weekly, psoriasis remission can be achieved, and vitiligo patches can be re-pigmented. XTRAC is endorsed by the National Psoriasis Foundation, and its use for psoriasis is covered by nearly all major insurance companies, including Medicare. We estimate that more than half of all major insurance companies now offer reimbursement for vitiligo as well, a figure that is increasing. |
• | ||
VTRAC® Lamp. VTRAC received FDA clearance in 2005 and provides targeted therapeutic efficacy demonstrated by excimer technology with the simplicity of design and reliability of a lamp system. |
For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Dermatology Recurring Procedures | $ | 4,679 | $ | 5,701 | $ | 5,452 | $ | 2,796 | $ | 10,131 | $ | 8,497 | ||||||||||||
Dermatology Procedures Equipment | 1,148 | 1,029 | 1,930 | 1,234 | 3,078 | 2,263 | ||||||||||||||||||
Total Revenues | $ | 5,827 | $ | 6,730 | $ | 7,382 | $ | 4,030 | $ | 13,209 | $ | 10,760 |
For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Dermatology Recurring Procedures | $ | 1,501 | $ | 1,802 | $ | 1,635 | $ | 1,364 | $ | 3,136 | $ | 3,166 | ||||||||||||
Dermatology Procedures Equipment | 613 | 529 | 986 | 702 | 1,599 | 1,231 | ||||||||||||||||||
Total Cost of Revenues | $ | 2,114 | $ | 2,331 | ||||||||||||||||||||
Total Revenues | $ | 2,621 | $ | 2,066 | $ | 4,735 | $ | 4,397 |
Company Profit Analysis | For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Revenues | $ | 5,827 | $ | 6,730 | $ | 7,382 | $ | 4,030 | $ | 13,209 | $ | 10,760 | ||||||||||||
Percent decrease | (13.4 | %) | ||||||||||||||||||||||
Percent increase | 83.2 | % | 22.8 | % | ||||||||||||||||||||
Cost of revenues | 2,114 | 2,331 | 2,621 | 2,066 | 4,735 | 4,397 | ||||||||||||||||||
Percent decrease | (9.3 | %) | ||||||||||||||||||||||
Percent increase | 26.9 | % | 7.7 | % | ||||||||||||||||||||
Gross profit | $ | 3,713 | $ | 4,399 | $ | 4,761 | $ | 1,964 | $ | 8,474 | $ | 6,363 | ||||||||||||
Gross profit percentage | 63.7 | % | 65.4 | % | 64.5 | % | 48.7 | % | 64.2 | % | 59.1 | % |
Dermatology Recurring Procedures | For the Three Months Ended March 31, | |||||||
2021 | 2020 | |||||||
Revenues | $ | 4,679 | $ | 5,701 | ||||
Percent decrease | (17.9 | %) | ||||||
Cost of revenues | 1,501 | 1,802 | ||||||
Percent decrease | (16.7 | %) | ||||||
Gross profit | $ | 3,178 | $ | 3,899 | ||||
Gross profit percentage | 67.9 | % | 68.4 | % |
Dermatology Recurring Procedures | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues | $ | 5,452 | $ | 2,796 | $ | 10,131 | $ | 8,497 | ||||||||
Percent increase | 95.0 | % | 19.2 | % | ||||||||||||
Cost of revenues | 1,635 | 1,364 | 3,136 | 3,166 | ||||||||||||
Percent increase (decrease) | 19.9 | % | (0.9 | %) | ||||||||||||
Gross profit | $ | 3,817 | $ | 1,432 | $ | 6,995 | $ | 5,331 | ||||||||
Gross profit percentage | 70.0 | % | 51.2 | % | 69.0 | % | 62.7 | % |
Dermatology Procedures Equipment | For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Revenues | $ | 1,148 | $ | 1,029 | $ | 1,930 | $ | 1,234 | $ | 3,078 | $ | 2,263 | ||||||||||||
Percent increase | 11.6 | % | 56.4 | % | 36.0 | % | ||||||||||||||||||
Cost of revenues | 613 | 529 | 986 | 702 | 1,599 | 1,231 | ||||||||||||||||||
Percent increase | 15.9 | % | 40.5 | % | 29.9 | % | ||||||||||||||||||
Gross profit | $ | 535 | $ | 500 | 944 | $ | 532 | $ | 1,479 | $ | 1,032 | |||||||||||||
Gross profit percentage | 46.6 | % | 48.6 | % | 48.9 | % | 43.1 | % | 48.1 | % | 45.6 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30 | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income (loss) | $ | 1,082 | $ | (1,680 | ) | $ | (1,336 | ) | $ | (2,715 | ) | |||||
Adjustments: | ||||||||||||||||
Depreciation/amortization* | 961 | 1,028 | 1,880 | 2,145 | ||||||||||||
Income taxes | 4 | 47 | 8 | 135 | ||||||||||||
Loss on lasers placed in service | 63 | 19 | 63 | 19 | ||||||||||||
Gain on extinguishment of debt | (2,028 | ) | - | (2,028 | ) | - | ||||||||||
Interest expense, net | 19 | 18 | 41 | 17 | ||||||||||||
Non-GAAP EBITDA | 101 | (568 | ) | (1,372 | ) | (399 | ) | |||||||||
Stock compensation | 581 | 410 | 1,243 | 840 | ||||||||||||
Non-GAAP adjusted EBITDA | $ | 682 | $ | (158 | ) | $ | (129 | ) | $ | 441 |
For the Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Net Loss | $ | (2,418 | ) | $ | (1,035 | ) | ||
Adjustments: | ||||||||
Depreciation/amortization* | 919 | 1,117 | ||||||
Income taxes | 4 | 88 | ||||||
Interest expense (income), net | 22 | (1 | ) | |||||
Non-GAAP EBITDA | (1,473 | ) | 169 | |||||
Stock compensation | 662 | 430 | ||||||
Non-GAAP adjusted EBITDA | $ | (811 | ) | $ | 599 |
ITEM 3. | Quantitative and Qualitative Disclosure about Market Risk |
ITEM 4. | Controls and Procedures |
ITEM 5. | Other Information |
3.1 | ||
3.2 | ||
3.3 | ||
3.4 | ||
3.5 | ||
3.6 | ||
3.7 | ||
3.8 | ||
3.9 | ||
4.1 | ||
101.INS | XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.) | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
* | The certifications attached as Exhibit 32.1 accompany this Quarterly Report on Form 10-Q pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. |
STRATA SKIN SCIENCES, INC. |
Date | By: | /s/ Robert J. Moccia | ||
Name Robert J. Moccia | ||||
Title President & Chief Executive Officer |
Date | By: | /s/ Matthew C. Hill | ||
Name Matthew C. Hill | ||||
Title Chief Financial Officer |