Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 20, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Transition Report | false | ||
Entity File Number | 0-11635 | ||
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 | ||
Trading Symbol | SSKN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 17,264,756 | ||
Entity Common Stock, Shares Outstanding | 35,060,920 | ||
Auditor Firm ID | 688 | ||
Auditor Name | Marcum LLP | ||
Auditor Location | Philadelphia, Pennsylvania |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 6,784 | $ 5,434 |
Restricted cash | 1,334 | 1,361 |
Accounts receivable, net of allowance for credit losses of $222 and $382 at December 31, 2023 and 2022, respectively | 4,440 | 4,471 |
Inventories | 2,673 | 3,095 |
Prepaid expenses and other current assets | 312 | 691 |
Total current assets | 15,543 | 15,052 |
Property and equipment, net | 11,778 | 9,950 |
Operating lease right-of-use assets | 626 | 975 |
Intangible assets, net | 7,319 | 17,394 |
Goodwill | 6,519 | 8,803 |
Other assets | 231 | 98 |
Total assets | 42,016 | 52,272 |
Current liabilities: | ||
Accounts payable | 3,343 | 3,425 |
Accrued expenses and other current liabilities | 6,306 | 6,555 |
Deferred revenues | 2,120 | 2,778 |
Current portion of operating lease liabilities | 352 | 355 |
Current portion of contingent consideration | 53 | 313 |
Total current liabilities | 12,174 | 13,426 |
Long-term debt, net | 15,044 | 7,476 |
Deferred revenues and other liabilities | 552 | 314 |
Deferred tax liability | 186 | 306 |
Operating lease liabilities, net of current portion | 237 | 610 |
Contingent consideration, net of current portion | 1,135 | 8,309 |
Total liabilities | 29,328 | 30,441 |
Commitments and contingencies (Note 11) | ||
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; 35,060,920 and 34,723,046 shares issued and outstanding at December 31, 2023 and 2022, respectively | 35 | 35 |
Additional paid-in capital | 250,711 | 249,024 |
Accumulated deficit | (238,058) | (227,228) |
Total stockholders' equity | 12,688 | 21,831 |
Total liabilities and stockholders' equity | $ 42,016 | $ 52,272 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Allowance for credit losses | $ 222 | $ 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) | 35,060,920 | 34,723,046 |
Common stock, shares outstanding (in shares) | 35,060,920 | 34,723,046 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Consolidated Statements of Operations [Abstract] | ||
Revenues, net | $ 33,358 | $ 36,161 |
Cost of revenues | 14,897 | 14,393 |
Gross profit | 18,461 | 21,768 |
Operating expenses: | ||
Engineering and product development | 1,317 | 1,029 |
Selling and marketing | 12,956 | 15,301 |
General and administrative | 10,508 | 10,087 |
Impairment of goodwill | 2,284 | 0 |
Total operating expenses | 27,065 | 26,417 |
Loss from operations | (8,604) | (4,649) |
Other (expense) income: | ||
Interest expense | (1,640) | (926) |
Interest income | 231 | 89 |
Loss on debt extinguishment | (909) | 0 |
Other (expense), income net | (2,318) | (837) |
(Loss) income before benefit from / (provision for) income taxes | (10,922) | (5,486) |
Benefit from / (provision for) income taxes | 92 | (63) |
Net loss | $ (10,830) | $ (5,549) |
Net loss per share of common stock - basic (in dollars per share) | $ (0.31) | $ (0.16) |
Net loss per share of common stock - diluted (in dollars per share) | $ (0.31) | $ (0.16) |
Weighted average shares of common stock outstanding - basic (in shares) | 34,920,291 | 34,712,246 |
Weighted average shares of common stock outstanding - diluted (in shares) | 34,920,291 | 34,712,246 |
Consolidated Statements of Chan
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 | 1,466 | 0 | 1,466 |
Issuance of common stock for acquisition | $ 1 | 499 | 0 | 500 |
Issuance of common stock for acquisition (in shares) | 358,367 | |||
Net loss | $ 0 | 0 | (5,549) | (5,549) |
Ending balance at Dec. 31, 2022 | $ 35 | 249,024 | (227,228) | 21,831 |
Ending balance (in shares) at Dec. 31, 2022 | 34,723,046 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation expense | $ 0 | 1,303 | 0 | 1,303 |
Issuance of restricted stock | $ 0 | 0 | 0 | $ 0 |
Issuance of restricted stock (in shares) | 337,874 | 337,874 | ||
Modification of common stock warrants | $ 0 | 384 | 0 | $ 384 |
Issuance of common stock for acquisition (in shares) | 358,367 | |||
Net loss | 0 | 0 | (10,830) | $ (10,830) |
Ending balance at Dec. 31, 2023 | $ 35 | $ 250,711 | $ (238,058) | $ 12,688 |
Ending balance (in shares) at Dec. 31, 2023 | 35,060,920 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (10,830) | $ (5,549) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 5,553 | 5,293 |
Impairment expense | 2,284 | 0 |
Amortization of operating lease right-of-use assets | 349 | 395 |
Amortization of deferred financing costs and debt discount | 140 | 157 |
Change in allowance for credit losses | (110) | 107 |
Stock-based compensation expense | 1,303 | 1,466 |
Loss on debt extinguishment | 909 | 0 |
Loss on disposal of property and equipment | 72 | 52 |
Deferred income taxes | (120) | 40 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 141 | (1,145) |
Inventories | 689 | (1,340) |
Prepaid expenses and other assets | 246 | (111) |
Accounts payable | (100) | 603 |
Accrued expenses and other liabilities | (197) | 229 |
Deferred revenues | (472) | (644) |
Operating lease liabilities | (376) | (477) |
Net cash used in operating activities | (519) | (924) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (5,019) | (3,736) |
Cash paid in connection with TheraClear asset acquisition | 0 | (631) |
Net cash used in investing activities | (5,019) | (4,367) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 7,000 | 0 |
Payment of deferred financing costs | (97) | 0 |
Payment of contingent consideration | (42) | (500) |
Net cash provided by (used in) financing activities | 6,861 | (500) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,323 | (5,791) |
Cash, cash equivalents and restricted cash at beginning of year | 6,795 | 12,586 |
Cash, cash equivalents and restricted cash at end of year | 8,118 | 6,795 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the year for interest | 1,415 | 744 |
Cash paid during the year for income taxes | 22 | 19 |
Supplemental schedule of non-cash operating, investing and financing activities: | ||
Modification of common stock warrants | 384 | 0 |
Transfer of property and equipment to inventories | 267 | 463 |
Change in intangible assets and fair value of contingent consideration | 7,374 | 0 |
Accrued exit fee recorded as debt discount | 450 | 0 |
Accrued payment of contingent consideration | 18 | 0 |
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 | 0 | 9,122 |
Common stock issued in connection with TheraClear asset acquisition | 0 | 500 |
Change in operating lease right-of-use assets and liabilities due to new and amended leases | $ 0 | $ 732 |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2023 | |
The Company [Abstract] | |
Organization and Nature of Business | 1. Organization and Nature of Business 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. Post-COVID-19 Pandemic Since March 2020, the global pandemic related to a new strain of coronavirus (“COVID-19”) 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. Accordingly, the COVID-19 pandemic and its variants have negatively impacted the Company’s operational and financial performance, including its ability to execute its business strategies and initiatives in the expected time frames and those of its primary customers. It has also negatively impacted the Company’ supply chains and transport, customer behavior and staffing. Impact of 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 and has historically 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 remain uninterrupted. The reduced supply and ongoing conflict have also impacted the price of gas 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. Liquidity and Going Concern The Company has been negatively impacted by the COVID-19 pandemic, has historically experienced recurring losses, 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 11). In October 2021, the Company entered into an equity distribution agreement with an investment bank under which the Company may sell up to $11.0 million 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 $8.0 million term loan, (ii) borrow an additional $7.0 million, and (iii) provide for an additional $5.0 million 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 consolidated financial statements. However, market conditions, including the negative impact of the COVID-19 pandemic, the Russia-Ukraine War, and the Israel-Hamas conflict 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. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements are presented in U.S. dollars and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and as amended by Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”). The accompanying consolidated financial statements include the accounts of the Company and Photomedex India Private Limited, its wholly-owned subsidiary in India. No operating activities have occurred within the Company’s subsidiary as of and during the years ended December 31, 2023 and 2022. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation, including the reclassification of lasers-in-process from raw materials and work-in-process inventories and finished goods inventories to property and equipment, net on the consolidated balance sheet. Use of Estimates The preparation of the consolidated financial statements in conformity with 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. 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. Actual results could differ from those estimates. Concentrations of Credit Risk and Major Customers The Company’s cash is held on deposit in demand accounts at a large financial institution in amounts in excess of the Federal Deposit Insurance Corporation, or FDIC, insurance coverage limit of $0.3 million per depositor, per FDIC-insured bank, per ownership category. Management has reviewed the financial statements of this institution and believes it has sufficient assets and liquidity to conduct its operations in the ordinary course of business with little credit risk to the Company. Financial instruments that potentially subject the Company to concentrations of credit risk principally consist of cash equivalents and accounts receivable. The Company limits its credit risk associated with cash equivalents by placing investments in highly-rated money market funds. The Company limits its credit risk with respect to accounts receivable by performing credit evaluations when deemed necessary, but it does not require collateral to secure amounts owed by its customers. The Company had one and two customers, international distributors, from which it earns dermatology recurring procedures and dermatology procedures equipment revenues, that accounted for 10% or more of the Company’s revenues for the years ended December 31, 2023 and 2022, respectively. Revenues from these customers were $3.3 million and $8.5 million, or 10% and 23%, of total net revenues during the years ended December 31, 2023 and 2022, respectively. Accounts receivable associated with these customers was nil Cash and Cash Equivalents The Company considers all highly-liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of December 31, 2023 and 2022, cash equivalents consisted of credit card transactions with settlement terms of less than five days. Restricted Cash As discussed more fully in Note 11, an administrative state judge in the State of New York issued an opinion in January 2021 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. 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 the State of New York Tax Appeals Tribunal (“Tribunal”) overturning the favorable sales tax determination of the administrative law judge. The Company appealed the Tribunal’s decision to the New York State Appellate Division (“Appellate Division”), and posted the required appellate bond in the form of cash collateral. Oral argument was held by the Appellate Division on January 18, 2024. On March 8, 2024, the Company received a decision from the Appellate Division ruling against it in the matter of its sales tax appeal, affirming the Tribunal’s ruling that the Company’s sale of XTRAC treatment codes is subject to sales tax. The Appellate Division concluded that, through the usage arrangements, the Company’s customers had possession of the laser devices and had a license and ability to use the laser devices. The Appellate Division also agreed with the Tribunal that the primary function analysis was not applicable in this matter. The Company will be filing a motion to appeal the Appellate Division’s decision. The cash collateral is recorded as restricted cash on the consolidated balance sheets as of December 31, 2023 and 2022. The following table provides a reconciliation of the components of cash, cash equivalents and restricted cash reported in the Company’s consolidated balance sheets to the total of the amount presented in the consolidated statements of cash flows (in thousands): December 31, 2023 2022 Cash and cash equivalents $ 6,784 $ 5,434 Restricted cash 1,334 1,361 Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows $ 8,118 $ 6,795 Accounts Receivable and Allowance for Credit Losses Accounts receivable primarily relates to amounts due from customers, which are typically due within 30 to 90 days from invoice date. The Company provides credit to its customers in the normal course of business and maintains allowances for expected credit losses over the remaining contractual lives of its receivables, considering customer financial condition, historical loss experience with customers, current market economic conditions and forecasts of future economic conditions when appropriate. The Company does not require collateral or other security for accounts receivable. The Company also maintains allowances for estimated losses resulting from amounts deemed to be uncollectible from its customers. These allowances are for specific amounts on certain customer accounts based on facts and circumstances determined on a case-by-case basis. The Company writes off accounts receivable when they are considered uncollectible, and payments subsequently received on such receivables are credited to bad debt expense. The Company does not recognize interest accruing on accounts receivable past due. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined based on purchased cost for raw materials and all production cost related to the laser manufacturing process (labor and indirect manufacturing cost, including sub-contracted work components) for work-in-process and finished goods is classified as inventory. For the Company’s products, cost is determined on the first-in, first-out method. Work-in-process is immaterial, given the typically short manufacturing cycle and therefore , The Company’s equipment for the treatment of skin disorders (e.g. the XTRAC) will either (i) be placed in a physician’s office and remain the property of the Company (at which date such equipment is transferred to property and equipment) or (ii) be sold to distributors or physicians directly. The cost to build a laser for sale is accumulated in inventory, and the cost to build a laser for placement is accumulated in property and equipment. Reserves for slow - Property and Equipment, net Property and equipment are recorded at cost less accumulated depreciation and amortization. Maintenance and repairs are charged to expense as incurred and costs of improvements and renewals are capitalized. Depreciation and amortization are recognized using the straight-line method based on the estimated useful lives of the related assets. The Company uses an estimated useful life of three years for computers, hardware and software, five years for machinery and equipment and for furniture and fixtures and the lesser of the useful life or lease term for leasehold improvements. Intangible Assets Intangible assets consist of core technology, product technology, customer relationships, trademarks and distribution rights. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from three Goodwill Goodwill is the excess of the cost of an acquired entity over the net amounts assigned to tangible and intangible assets acquired and liabilities assumed. Goodwill is not amortized, but is subject to an annual impairment test. The Company has two reporting units and goodwill is allocated to the reporting units (see Note 15). The Company performs its goodwill impairment test on an annual basis in the fourth quarter of each fiscal year or more frequently if changes in circumstances or the occurrence of events suggest that an impairment exists. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded for the amount by which the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. In conjunction with the annual budgeting process during the fourth quarter of 2023 and using data collected since the official launch of the TheraClear devices, the Company reduced its projected earnings from TheraClear devices (see Note 3). As a result, the Company bypassed the qualitative assessment of goodwill impairment and performed a quantitative assessment by comparing the fair value of each reporting unit with its carrying amount. The Company r The impairment charge is included in impairment of goodwill within the consolidated statement of operations for the year ended December 31, 2023. The dermatology procedures equipment reporting unit was not identified as having impairment for the year ended December 31, 2023. The Company’s annual goodwill impairment test resulted in no impairment charge during the year ended December 31, 2022. Impairment of Long-Lived Assets and Intangibles The Company reviews its long-lived assets and intangible assets subject to amortization for impairment whenever events or changes in circumstances indicate the carrying amount of an asset group may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset group to future net cash flows expected to be generated by the asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset group exceeds the fair value of the asset group, less costs to sell. The Company did not record any charges related to asset impairment during the years ended December 31, 2023 and 2022. 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. Accrued Warranty Costs The Company offers a standard warranty on product sales generally for a one three The activity in the warranty accrual during the years ended December 31, 2023 and 2022 is summarized as follows (in thousands): December 31, 2023 2022 Balance, beginning of year $ 207 $ 79 Additions 237 246 Expirations and claims satisfied (141 ) (118 ) Total 303 207 Less current portion within accrued expenses and other current liabilities (180 ) (136 ) Balance within deferred revenues and other liabilities $ 123 $ 71 Debt Issuance Costs The Company capitalizes direct costs incurred to obtain debt financing and amortizes these costs to interest expense over the term of the debt using the effective interest method. These costs are recorded as a debt discount and are netted against the related debt on the Company’s consolidated balance sheets. Revenue Recognition Revenues from the Company’s dermatology recurring procedures customers are earned by providing physicians with its laser products 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 laser products at physician locations represents embedded leases which are accounted for as operating leases. For the lasers placed-in service under these arrangements, the terms of the domestic arrangements are generally 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 are recognized as revenue on a straight-line basis as the lasers are being used over the term 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 revenue 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 presents the Company’s net revenues disaggregated by dermatology recurring procedures and dermatology procedures equipment (in thousands): Year Ended December 31, 2023 2022 Dermatology recurring procedures $ 21,530 $ 23,025 Dermatology procedures equipment 11,828 13,136 Total net revenues $ 33,358 $ 36,161 The following table summarizes the Company’s expected future undiscounted fixed treatment code payments from international dermatology recurring procedures, the Company’s only long-term arrangements (in thousands): Years ending December 31: 2024 $ 1,319 2025 787 2026 569 2027 298 $ 2,973 Remaining performance obligations related to ASC 606 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 and service contracts leases. As of December 31, 2023 and 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $0.7 million and $0.6 million million million one Contract liabilities primarily relate to extended warranties and service contracts million million million million With respect to contract acquisition costs, the Company applies the practical expedient and expenses these costs immediately. Engineering and Product Development Engineering and product development costs associated with research, new product development and product redesign are expensed as incurred. Advertising Costs Advertising costs are expensed as incurred and included in selling and marketing expenses within the Company’s consolidated statement of operations. The Company recognized advertising costs of $0.5 million and $1.6 million during the years ended December 31, 2023 and 2022, respectively. Stock-Based Compensation The Company measures share-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. Estimating the fair value of share-based awards requires the input of subjective assumptions, including the expected life of the options and stock price volatility. The Company accounts for forfeitures of stock option awards as they occur. The estimated fair value of restricted stock awards is equal to the Company’s common stock price at the grant date. The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in estimating the fair value of stock-option awards represent management’s estimate and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, share-based compensation expense could be materially different for future awards. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities, as well as on net operating loss carryforwards, and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Any resulting net deferred tax assets are evaluated for recoverability and, accordingly, a valuation allowance is provided when it is not more likely than not that all or some portion of the deferred tax asset will be realized. The Company recognizes the tax effects of uncertain tax positions only if the position is “more-likely-than-not” to be sustained were it to be challenged by a taxing authority. The assessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. If an uncertain tax position meets the “more-likely-than-not” threshold, the largest amount of tax benefit that is more than 50% likely to be recognized upon ultimate settlement with the taxing authority is recorded. The Company has no uncertain tax positions as of December 31, 2023. The Company includes interest and penalties related to income tax obligations within income tax expense. The Company’s tax years are still under open status from 2020 to present. 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: December 31, 2023 2022 Stock options 7,728,721 4,474,714 Common stock warrants 800,000 373,626 Restricted stock units 22,654 278,004 8,551,375 5,126,344 Accounting Pronouncements Recently Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Recent Accounting Pronouncements Not Yet Adopted 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 In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Asset Acquisition
Asset Acquisition | 12 Months Ended |
Dec. 31, 2023 | |
Asset Acquisition [Abstract] | |
Acquisitions | 3. 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 $0.5 million and issued to Theravant 358,367 shares of common stock with an aggregate value of $0.5 million as of the closing date in connection with the TheraClear asset acquisition. During the fourth quarter of 2022, the Company also made a $0.5 million milestone payment upon the launch of the TheraClear Acne Therapy System, one of the development-related targets. 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 value basis, to the technology intangible asset and acquired inventories as follows (in thousands): 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 consolidated balance sheet. During 2023, the Company revised its projections of expected revenues and gross profits to be earned from TheraClear devices. The change in projections was considered significant enough to warrant a revaluation of the contingent consideration. To calculate the fair value of the earnout at December 31, 2023, 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 3.8%, revenue volatility of 15.0%, and a cost of equity of 10.0%. The fair value of the contingent consideration as of December 31, 2023 was estimated to be $1.2 million, which resulted in a reduction in contingent consideration of $7.4 million with a corresponding adjustment to the carrying value of the technology intangible asset. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The carrying values of cash equivalents, restricted cash, accounts receivable, prepaid expenses and other current assets, and accounts payable on the Company’s consolidated balance sheets approximated their fair values as of December 31, 2023 and 2022 due to their short-term nature. The carrying value of the Company’s current Senior Term Facility approximated its fair value as of December 31, 2023 and 2022 due to its variable interest rate. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventories [Abstract] | |
Inventories | 5. Inventories Inventories consist of the following (in thousands): December 31, 2023 2022 Raw materials and work-in-process $ 2,192 $ 2,966 Finished goods 481 129 $ 2,673 $ 3,095 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment, net [Abstract] | |
Property and Equipment, net | 6. Property and Equipment, net Property and equipment consist of the following (in thousands): December 31, 2023 2022 Lasers placed-in-service $ 32,095 $ 28,790 Equipment, computer hardware and software 293 293 Furniture and fixtures 240 235 Leasehold improvements 203 136 Lasers-in-process 3,231 2,452 36,062 31,906 Less: accumulated depreciation and amortization (24,284 ) (21,956 ) $ 11,778 $ 9,950 The Company recorded depreciation and amortization expense of $2.9 million and $2.4 million during the years ended December 31, 2023 and 2022, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 7. 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 Operating lease costs were $0.4 million for each of the years ended December 31, 2023 and 2022. Cash paid for amounts included in the measurement of operating lease liabilities was $0.4 million for each of the years ended December 31, 2023 and 2022. As of December 31, 2023 and 2022, the weighted average incremental borrowing rate was 8.60% and 8.76%, respectively, and the weighted average remaining lease term was 2.0 years and 2.8 years, respectively. The following table summarizes the Company’s operating lease maturities as of December 31, 2023 (in thousands): Years ending December 31: 2024 $ 386 2025 195 2026 55 Total remaining lease payments 636 Less: imputed interest (47 ) Total lease liabilities $ 589 With respect to lease and non-lease components, the Company adopted the practical expedient to account for the lessee arrangement as a single lease component. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets and Goodwill [Abstract] | |
Intangible Assets and Goodwill | 8. Intangible Assets and Goodwill Intangible assets consist of the following (in thousands): December 31, 2023 Balance Accumulated Amortization Net Book Value Core technology $ 5,700 $ (4,845 ) $ 855 Product technology 4,808 (3,866 ) 942 Customer relationships 6,900 (5,865 ) 1,035 Tradenames 1,500 (1,275 ) 225 Pharos customer lists 5,314 (1,052 ) 4,262 $ 24,222 $ (16,903 ) $ 7,319 December 31, 2022 Balance Accumulated Amortization Net Book Value 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 The Company recorded amortization expense of $2.7 million and $2.9 million during the years ended December 31, 2023 and 2022, respectively. During the year ended December 31, 2023 the Company recognized an adjustment of $7.4 million to the carrying value of product technology as a result of the revaluation of contingent consideration related to the TheraClear asset acquisition (Note 3). The following table summarizes the estimated future amortization expense for the above intangible assets for the next five years (in thousands): Years ending December 31: 2024 1,971 2025 1,266 2026 561 2027 561 2028 561 Goodwill consists of the following (in thousands): December 31, 2023 2022 Dermatology recurring procedures segment $ 5,674 $ 7,958 Dermatology procedures equipment segment 845 845 $ 6,519 $ 8,803 During the year ended December 31, 2023, the Company recognized a goodwill impairment charge of $2.3 million related to the dermatology recurring procedures segment primarily driven by a decline in projected cash flows, including revenues and profitability (see Note 2). |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | 9. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands): December 31, 2023 2022 Warranty obligations $ 180 $ 136 Compensation and related benefits 1,679 1,997 State sales, use and other taxes 4,316 3,986 Professional fees and other 131 436 $ 6,306 $ 6,555 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Long-term Debt [Abstract] | |
Long-term Debt | 10. Long-Term Debt 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 original terms provided for an $8.0 million senior term loan. Borrowings under the senior term loan originally 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. The credit and security agreement was amended on January 10, 2022 to provide MidCap’s consent to the TheraClear asset acquisition (Note 3). On September 6, 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) Amendment No. 3 to the credit and security agreement (the “Third Amendment”); (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. On February 20, 2024, the Company entered into (a) Amendment No. 4 to the credit and security agreement (the “Fourth Amendment”) which amended the credit and security agreement (as amended by the Third and Fourth Amendments, the “Senior Term Facility”), and (b) a second amended and restated letter agreement (“Amended Fee Letter Agreement”) with MidCap, as agent. On March 27, 2024, the Company entered into Amendment No. 5 to the credit and security agreement, which clarified certain provisions related to the maintenance of cash collateral accounts The Senior Term Facility provides for a senior secured term loan facility of $20.0 million, of which $8.0 million was drawn by the Company on September 30, 2021 (“Credit Facility #1”), $7.0 million was drawn by the Company on June 30, 2023 (“Credit Facility #2”), and an additional $5.0 million 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 12 calendar months (ending on the last day of the calendar month for which a compliance certificate is delivered) is greater than or equal to $30.0 million (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 December 31, 2023 and 2022 was 13.68% and 11.72%, respectively. The Company is obligated to make interest-only 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 in an amount of at least $5.0 million, 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 February 20, 2024, (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 February 20, 2024, (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 February 20, 2024, 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 February 20, 2024 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 $29.0 million of net revenue (raised to $33.0 million by December 31, 2026 and, for periods ending after December 31, 2026, 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 $33.0 million) for the trailing 12-month period as of March 31, 2024, and (b) a minimum of unrestricted cash (as defined in the Senior Term Facility), at all times, of not less than $3.0 million. Prior to the execution of the Fourth Amendment, the minimum net revenue threshold was $36.0 million for the trailing 12-month period as of December 31, 2023, which the Company did not meet. Through the Fourth Amendment, MidCap granted a limited waiver of this event of default that occurred as of December 31, 2023 and of any right MidCap had to exercise its rights against the Company as a result. At December 31, 2023, the Company was in compliance with all other 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. Given that the Fourth Amendment granted a limited waiver as described above, as of December 31, 2023, 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 Amended 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) 4.00% 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 4.00% 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 per share for a 10-year period ending on June 30, 2033. Pursuant to the A&R Registration Rights Agreement, the Company registered the shares underlying the A&R Warrant effective August 18, 2023. 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 Third Amendment 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 $0.9 million for the year ended December 31, 2023, which includes unamortized debt discount on the original loan of $0.4 million, an increase in the fair value of the warrant of $0.4 million and lender fees of $0.1 million. In connection with the Third Amendment, the Company recorded the $0.5 million exit fee (equal to 3.00% of the aggregate principal amount of Credit Extensions #1 and #2 prior to execution of the Fourth Amendment) 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 Third Amendment of $13 thousand, is being recognized as interest expense over the term of the Senior Term Facility using the effective-interest method. The unamortized debt discount was $0.4 million and $0.5 million as of December 31, 2023 and 2022, respectively. The Company recognized interest expense of $1.6 million during the year ended December 31, 2023, of which $0.1 million was related to the amortization of the debt discount. The Company recognized interest expense of $0.9 million during the year ended December 31, 2022, of which $0.2 million was related to the amortization of the debt discount. Future minimum principal payments at December 31, 2023 are as follows (in thousands): Years ending December 31: 2026 $ 3,750 2027 7,500 2028 3,750 15,000 Exit fee 450 15,450 Less: unamortized debt discount (406 ) Long-term debt, net $ 15,044 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies 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 $0.1 million, was subject to the right of individual class members to opt out of the settlement and proceed on their own. No individual has requested to opt out of the settlement. Sales and Use Tax Matters 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 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 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. The states of New York and California The audits cover to the Appellate Division was held by the Appellate Division on January 18, 2024 On March 8, 2024, the Company received a decision from the Appellate Division ruling against it in the matter of its sales tax appeal, affirming the Tribunal’s ruling that the Company’s sale of XTRAC treatment codes is subject to sales tax. The Appellate Division concluded that, through the usage arrangements, the Company’s customers had possession of the laser devices and had a license and ability to use the laser devices. The Appellate Division also agreed with the Tribunal that the primary function analysis was not applicable in this matter. The Company will be filing a motion to appeal the Appellate Division’s decision. The Company is also in the administrative process of appeal with respect to the remaining $2.5 million of assessments. 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 Employee 401(k) Savings Plan The Company sponsors a 401(k) defined contribution retirement savings plan that covers all eligible employees who have met the minimum age and service requirements. Under the plan, eligible employees may contribute a portion of their annual compensation into the plan up to IRS annual limits. The Company has elected to make matching contributions to the plan based on a percentage of the employee’s contribution. For the years ended December 31, 2023 and 2022, the Company’s contributions to the plan were $0.4 million and $0.3 million, respectively 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 $0.5 million upon FDA clearance for each device and $0.5 million upon achievement of certain net revenue targets for each device, aggregating to $3.0 million 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 3. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 12. Stockholders’ Equity Preferred Stock The Company is authorized to issue preferred stock with such designation, rights and preferences as may be determined from time to time by the Company’s Board of Directors. Other than the limitations on conversions to keep each such holder’s beneficial ownership below 9.99%, the terms of the Series C convertible preferred stock generally bestow the same rights to each holder as such holder would receive if they were common stock shareholders and are not redeemable by the holders, except that the Series C convertible preferred stock shares do not have voting rights. Each share of Series C convertible preferred stock has a stated value of $1,000 and is convertible into shares of common stock at a conversion price equal to $2.69. No preferred shares were outstanding as of December 31, 2023 and 2022. Common Stock The Company issued 337,874 shares upon the vesting of restricted stock during the year ended December 31, 2023. On June 26, 2023, the Company had received written notification from the Nasdaq Stock Market (“Nasdaq”) that the closing bid price of its common stock had been below the minimum $1.00 per share for the previous 30 consecutive business days and that the Company, therefore, was not in compliance with the requirements for continued listing on the Nasdaq Capital Market. On December 27, 2023, the Company received written notice from Nasdaq that it had been granted a 180-day extension, or until June 24, 2024, to regain compliance with Nasdaq’s minimum bid price rule. The Company issued 358,367 In October 2021, the Company entered into an equity distribution agreement under which the Company may sell up to $11.0 million of its shares of common stock in registered “at-the-market” offerings. The shares will be offered at prevailing market prices, and the Company will pay commissions of up to 3.0% of the gross proceeds from the sale of shares sold through the Company’s agent, which may act as an agent and/or principal. The Company has no obligation to sell any shares under this agreement and may, at any time, suspend solicitations under this agreement. No shares of the Company’s common stock have been sold under this distribution agreement during fiscal 2023 or 2022 Common Stock Warrants In September 2021 and in connection with entering into the Company’s Senior Term Facility (Note 10), the Company issued a warrant to purchase 373,626 shares of the Company’s common stock at an initial exercise price of $1.82 per share. The warrant was amended in June 2023 in connection with the execution of the Third Amendment to the Senior Term Facility. The amended warrant is to purchase 800,000 shares of the Company’s common stock at an exercise price equal to $0.88 per share. The warrant is equity classified and is exercisable at any time on or prior to the tenth anniversary of its amendment date. As of December 31, 2023, the warrant remains outstanding in its entirety. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 13. 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 December 31, 2023, there were 1,329,375 shares of common stock remaining available for issuance for awards under the 2016 Plan. The Company measures share‑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 share‑based compensation expense (for all awards and modifications, if any) in the accompanying consolidated statements of operations as follows (in thousands): Year Ended December 31, 2023 2022 Selling and marketing $ 79 $ 203 General and administrative 1,224 1,263 $ 1,303 $ 1,466 On April 3, 2023 and March 30, 2022, the Company granted 150,000 and 160,000 stock-based options, respectively, to its former Chief Executive Officer. The vesting of these awards was 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. 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. The market condition was not met for the 2022 awards and 60,000 of the stock-based options were forfeited during 2022. The 150,000 stock-based options awarded in 2023 were forfeited by December 31, 2023 due to the Chief Executive Officer’s separation and failure to achieve the vesting conditions. Also in connection with the separation of the Company’s Chief Executive Officer in October 2023, the vesting of 272,098 unvested options to purchase shares of common stock was accelerated. As this acceleration of vesting occurred in accordance with the terms of the original option agreement, it is not considered a modification for accounting purposes. The Company recognized $0.3 million of share-based compensation expense in connection with the accelerated vesting. Stock Options The following table summarizes stock option activity for the years ended December 31, 2023 and 2022: Number of Shares Under Option Plan Weighted- Average Exercise Price per Option Weighted- Average Remaining Contractual Term (in years) Outstanding at January 1, 2022 3,938,613 $ 1.90 Granted 1,000,000 1.41 Exercised (15,000 ) 1.29 Forfeited and expired (448,899 ) 2.63 Outstanding at December 31, 2022 4,474,714 $ 1.72 8.02 Granted 4,545,069 0.63 Forfeited and expired (1,291,062 ) 1.56 Outstanding at December 31, 2023 7,728,721 1.11 6.70 Exercisable at December 31, 2023 1,256,062 $ 1.75 2.09 The weighted‑average grant date fair value of options granted was $0.44 and $1.06 per share during the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, the total unrecognized compensation expense related to unvested stock option awards was $2.1 million, which the Company expects to recognize over a weighted‑average period of approximately 3.1 years. The aggregate intrinsic value of options outstanding at December 31, 2023 was $0.1 million. There was no aggregate intrinsic value of options exercisable at December 31, 2023 and no options were exercised during the year ended December 31, 2023. There was no aggregate intrinsic value of options outstanding and options exercisable at December 31, 2022 or of options that were exercised during the year ended December 31, 2022. The fair value of options is estimated using the Black-Scholes option pricing model which takes into account inputs such as the exercise price, the value of the underlying common stock at the grant date, expected term, expected volatility, risk free interest rate and dividend yield. The fair value of each grant of options during the year ended December 31, 2023 and 2022 was determined using the methods and assumptions discussed below. ● The expected term of employee options is based on the observed and expected time to full-vesting, forfeiture and exercise. Groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. Options expire up to a maximum of ten years from the date of grant. ● The expected volatility is based on historical volatility of the Company’s common stock. ● The risk-free interest rate is based on the interest rate payable on U.S. Treasury securities in effect at the time of grant for a period that is commensurate with the assumed expected term. ● The expected dividend yield is none because the Company has not historically paid and does not expect for the foreseeable future to pay a dividend on its shares of common stock. For the years ended December 31, 2023 and 2022, the grant date fair value of all option grants was estimated at the time of grant using the Black-Scholes option-pricing model using the following weighted average assumptions: Year Ended December 31, 2023 2022 Expected term (in years) 7.49 6.10 Expected volatility 74.58 % 89.57 % Risk-free rate 4.38 % 2.51 % Dividend rate 0.00 % 0.00 % Restricted Stock Units Restricted stock units have been issued to certain board members. Activity in restricted stock units is summarized in the following table: Number of Units Weighted- Average Grant Date Fair Value Unvested at January 1, 2022 90,540 $ 1.45 Granted 187,464 0.96 Vested (158,407 ) 1.26 Unvested at December 31, 2022 119,597 $ 0.93 Granted 179,613 1.03 Vested (179,467 ) 0.96 Forfeited and expired (97,089 ) 1.03 Unvested at December 31, 2023 22,654 $ 1.03 As of December 31, 2023, the total unrecognized compensation expense related to unvested restricted stock units was $18 thousand, which the Company expects to recognize over a weighted‑average period of approximately 0.5 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | 14. Income Taxes Income tax expense consists of the following (in thousands): Year Ended December 31, 2023 2022 Current: Federal $ — $ — State 28 23 28 23 Deferred: Federal (68 ) 23 State (52 ) 17 (120 ) 40 (Benefit from) / provision for income taxes $ (92 ) $ 63 Deferred tax assets and liabilities are determined based on the differences between the consolidated financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect for years in which differences are expected to reverse Significant components of the Company’s deferred tax liability for federal income taxes consisted of the following (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 46,718 $ 45,077 Intangible assets 2,138 1,697 Inventories 71 57 Reserves and accrued expenses 1,381 1,431 Stock-based compensation 180 548 Operating lease liabilities 145 240 Interest expense limitation carryover 552 208 Property and equipment — 1,111 Gross deferred tax assets 51,185 50,369 Less: valuation allowance (50,139 ) (49,005 ) 1,046 1,364 Deferred tax liabilities: Property and equipment (412 ) — Operating lease right-of-use assets (154 ) (242 ) Goodwill (666 ) (1,095 ) 481(a) adjustment — (333 ) (1,232 ) (1,670 ) Net deferred tax liability $ (186 ) $ (306 ) In assessing the need for a valuation allowance, management must determine that there will be sufficient taxable income to allow for the realization of deferred tax assets. Based upon historical and anticipated future losses, management has determined that the deferred tax assets do not meet the more likely than not threshold for realizability. Accordingly, a nearly full valuation allowance has been recorded against the Company’s deferred tax assets as of December 31, 2023. The valuation allowance increased by $1.1 million during the year ended December 31, 2023. The Company does not have unrecognized tax benefits as of December 31, 2023 or 2022. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company had net operating loss (“NOL”) carryforwards for federal and state income tax purposes as follows (in thousands): December 31, 2023 2022 Federal $ 205,212 $ 198,144 State $ 63,566 $ 60,784 The NOL carryforwards generated prior to 2018 began to expire for federal income tax purposes and begin expiring in 2030 for state income tax purposes. Federal and many state NOLs generated in 2018 and into the future now have an indefinite life. The NOL carryforwards are subject to review and possible adjustment by the Internal Revenue Service and state tax authorities. NOL carryforwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant stockholders over a three-year period in excess of 50%, as defined under Sections 382 and 383 of the Internal Revenue Code, respectively, as well as similar state provisions. This could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. To date, the Company has not performed an analysis to determine whether or not ownership changes have occurred since inception. A reconciliation of income tax expense at the statutory federal income tax rate and income taxes as reflected in the consolidated financial statements is as follows: Year Ended December 31, 2023 2022 Federal tax expense at statutory rate 21.00 % 21.00 % State tax, net of federal benefit 0.18 % (0.58 )% Permanent differences (1.89 )% (2.23 )% Other difference and true ups (8.07 )% (11.20 )% Change in valuation allowance (10.38 )% (8.14 )% Effective income tax rate 0.84 % (1.15 )% On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (“IRA”). The IRA contains certain tax measures, including a corporate alternative minimum tax of 15% on some large corporations and an excise tax of 1% on corporate stock repurchases. The provisions of the IRA did not have an impact on the Company’s consolidated financial statements for the year ended December 31, 2023 , as the Company currently does not qualify as a large corporation for the 15% alternative minimum tax and there were no stock repurchases during 2023. The Company will monitor its operations for changes that could impact the applicability of the IRA provisions in future tax years. |
Business and Geographical Repor
Business and Geographical Reporting Segments | 12 Months Ended |
Dec. 31, 2023 | |
Business and Geographical Reporting Segments [Abstract] | |
Business and Geographical Reporting Segments | 15. Business and Geographical Reporting Segments The Company 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 procedures. The Dermatology Procedures Equipment segment generates revenues from the sale of equipment, such as lasers and lamp products. 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 and other financing income (expense) is also not allocated to the operating segments. The following tables reflect results of operations from our business segments for the periods indicated below (in thousands, except gross profit %): Year Ended December 31, 2023 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Revenues $ 21,530 $ 11,828 $ 33,358 Cost of revenues 8,729 6,168 14,897 Gross profit 12,801 5,660 18,461 Gross profit % 59.5 % 47.9 % 55.3 % Allocated expenses: Engineering and product development 1,011 306 1,317 Selling and marketing 11,169 1,787 12,956 Impairment of goodwill 2,284 — 2,284 Unallocated expenses — — 10,508 14,464 2,093 27,065 (Loss) income from operations (1,663 ) 3,567 (8,604 ) Interest expense — — (1,640 ) Interest income — — 231 Loss on debt extinguishment — — (909 ) (Loss) income before benefit from / (provision for) income taxes $ (1,663 ) $ 3,567 $ (10,922 ) Year Ended December 31, 2022 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Revenues $ 23,025 $ 13,136 $ 36,161 Cost of revenues 8,371 6,022 14,393 Gross profit 14,654 7,114 21,768 Gross profit % 63.6 % 54.2 % 60.2 % Allocated expenses: Engineering and product development 672 357 1,029 Selling and marketing 13,503 1,798 15,301 Unallocated expenses — — 10,087 14,175 2,155 26,417 Income (loss) from operations 479 4,959 (4,649 ) Interest expense — — (926 ) Interest income — — 89 Income (loss) before benefit from / (provision for) income taxes $ 479 $ 4,959 $ (5,486 ) For the years ended December 31, 2023 and 2022, depreciation and amortization by reportable segment were as follows (in thousands): Year Ended December 31, 2023 2022 Dermatology recurring procedures $ 4,793 $ 4,421 Dermatology procedures equipment 746 857 Unallocated expenses 14 15 Total $ 5,553 $ 5,293 The following tables present the Company’s revenue disaggregated by geographical region for the years ended December 31, 2023 and 2022 (in thousands). Domestic refers to revenue from customers based in the United States, and foreign revenue is derived from the Company’s distributors primarily in Asia. Year Ended December 31, 2023 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Domestic $ 20,215 $ 2,813 $ 23,028 China — 3,340 3,340 Korea 673 2,055 2,728 Other foreign 642 3,620 4,262 Total $ 21,530 $ 11,828 $ 33,358 Year Ended December 31, 2022 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Domestic $ 21,585 $ 2,396 $ 23,981 China 195 4,556 4,751 Korea 888 2,828 3,716 Other foreign 357 3,356 3,713 Total $ 23,025 $ 13,136 $ 36,161 As of December 31, 2023 and 2022, total assets by reportable segment were as follows (in thousands): December 31, 2023 2022 Dermatology recurring procedures $ 28,137 $ 37,230 Dermatology procedures equipment 5,507 7,890 Other unallocated assets 8,372 7,152 Total $ 42,016 $ 52,272 Long-lived assets of $0.8 million and $0.6 million were located in international markets, primarily Korea and Japan, |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events On February 20, 2024, the Company amended its credit and security agreement and fee letter agreement with MidCap. On March 27, 2024, the Company further amended its credit and security agreement with MidCap. See Note 10 for details. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements are presented in U.S. dollars and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and as amended by Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”). The accompanying consolidated financial statements include the accounts of the Company and Photomedex India Private Limited, its wholly-owned subsidiary in India. No operating activities have occurred within the Company’s subsidiary as of and during the years ended December 31, 2023 and 2022. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation, including the reclassification of lasers-in-process from raw materials and work-in-process inventories and finished goods inventories to property and equipment, net on the consolidated balance sheet. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with 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. 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. Actual results could differ from those estimates. |
Concentrations of Credit Risk and Major Customers | Concentrations of Credit Risk and Major Customers The Company’s cash is held on deposit in demand accounts at a large financial institution in amounts in excess of the Federal Deposit Insurance Corporation, or FDIC, insurance coverage limit of $0.3 million per depositor, per FDIC-insured bank, per ownership category. Management has reviewed the financial statements of this institution and believes it has sufficient assets and liquidity to conduct its operations in the ordinary course of business with little credit risk to the Company. Financial instruments that potentially subject the Company to concentrations of credit risk principally consist of cash equivalents and accounts receivable. The Company limits its credit risk associated with cash equivalents by placing investments in highly-rated money market funds. The Company limits its credit risk with respect to accounts receivable by performing credit evaluations when deemed necessary, but it does not require collateral to secure amounts owed by its customers. The Company had one and two customers, international distributors, from which it earns dermatology recurring procedures and dermatology procedures equipment revenues, that accounted for 10% or more of the Company’s revenues for the years ended December 31, 2023 and 2022, respectively. Revenues from these customers were $3.3 million and $8.5 million, or 10% and 23%, of total net revenues during the years ended December 31, 2023 and 2022, respectively. Accounts receivable associated with these customers was nil |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly-liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of December 31, 2023 and 2022, cash equivalents consisted of credit card transactions with settlement terms of less than five days. |
Restricted Cash | Restricted Cash As discussed more fully in Note 11, an administrative state judge in the State of New York issued an opinion in January 2021 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. 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 the State of New York Tax Appeals Tribunal (“Tribunal”) overturning the favorable sales tax determination of the administrative law judge. The Company appealed the Tribunal’s decision to the New York State Appellate Division (“Appellate Division”), and posted the required appellate bond in the form of cash collateral. Oral argument was held by the Appellate Division on January 18, 2024. On March 8, 2024, the Company received a decision from the Appellate Division ruling against it in the matter of its sales tax appeal, affirming the Tribunal’s ruling that the Company’s sale of XTRAC treatment codes is subject to sales tax. The Appellate Division concluded that, through the usage arrangements, the Company’s customers had possession of the laser devices and had a license and ability to use the laser devices. The Appellate Division also agreed with the Tribunal that the primary function analysis was not applicable in this matter. The Company will be filing a motion to appeal the Appellate Division’s decision. The cash collateral is recorded as restricted cash on the consolidated balance sheets as of December 31, 2023 and 2022. The following table provides a reconciliation of the components of cash, cash equivalents and restricted cash reported in the Company’s consolidated balance sheets to the total of the amount presented in the consolidated statements of cash flows (in thousands): December 31, 2023 2022 Cash and cash equivalents $ 6,784 $ 5,434 Restricted cash 1,334 1,361 Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows $ 8,118 $ 6,795 |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses Accounts receivable primarily relates to amounts due from customers, which are typically due within 30 to 90 days from invoice date. The Company provides credit to its customers in the normal course of business and maintains allowances for expected credit losses over the remaining contractual lives of its receivables, considering customer financial condition, historical loss experience with customers, current market economic conditions and forecasts of future economic conditions when appropriate. The Company does not require collateral or other security for accounts receivable. The Company also maintains allowances for estimated losses resulting from amounts deemed to be uncollectible from its customers. These allowances are for specific amounts on certain customer accounts based on facts and circumstances determined on a case-by-case basis. The Company writes off accounts receivable when they are considered uncollectible, and payments subsequently received on such receivables are credited to bad debt expense. The Company does not recognize interest accruing on accounts receivable past due. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined based on purchased cost for raw materials and all production cost related to the laser manufacturing process (labor and indirect manufacturing cost, including sub-contracted work components) for work-in-process and finished goods is classified as inventory. For the Company’s products, cost is determined on the first-in, first-out method. Work-in-process is immaterial, given the typically short manufacturing cycle and therefore , The Company’s equipment for the treatment of skin disorders (e.g. the XTRAC) will either (i) be placed in a physician’s office and remain the property of the Company (at which date such equipment is transferred to property and equipment) or (ii) be sold to distributors or physicians directly. The cost to build a laser for sale is accumulated in inventory, and the cost to build a laser for placement is accumulated in property and equipment. Reserves for slow - |
Property and Equipment, net | Property and Equipment, net Property and equipment are recorded at cost less accumulated depreciation and amortization. Maintenance and repairs are charged to expense as incurred and costs of improvements and renewals are capitalized. Depreciation and amortization are recognized using the straight-line method based on the estimated useful lives of the related assets. The Company uses an estimated useful life of three years for computers, hardware and software, five years for machinery and equipment and for furniture and fixtures and the lesser of the useful life or lease term for leasehold improvements. |
Intangible Assets | Intangible Assets Intangible assets consist of core technology, product technology, customer relationships, trademarks and distribution rights. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from three |
Goodwill | Goodwill Goodwill is the excess of the cost of an acquired entity over the net amounts assigned to tangible and intangible assets acquired and liabilities assumed. Goodwill is not amortized, but is subject to an annual impairment test. The Company has two reporting units and goodwill is allocated to the reporting units (see Note 15). The Company performs its goodwill impairment test on an annual basis in the fourth quarter of each fiscal year or more frequently if changes in circumstances or the occurrence of events suggest that an impairment exists. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded for the amount by which the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. In conjunction with the annual budgeting process during the fourth quarter of 2023 and using data collected since the official launch of the TheraClear devices, the Company reduced its projected earnings from TheraClear devices (see Note 3). As a result, the Company bypassed the qualitative assessment of goodwill impairment and performed a quantitative assessment by comparing the fair value of each reporting unit with its carrying amount. The Company r The impairment charge is included in impairment of goodwill within the consolidated statement of operations for the year ended December 31, 2023. The dermatology procedures equipment reporting unit was not identified as having impairment for the year ended December 31, 2023. The Company’s annual goodwill impairment test resulted in no impairment charge during the year ended December 31, 2022. |
Impairment of Long-Lived Assets and Intangibles | Impairment of Long-Lived Assets and Intangibles The Company reviews its long-lived assets and intangible assets subject to amortization for impairment whenever events or changes in circumstances indicate the carrying amount of an asset group may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset group to future net cash flows expected to be generated by the asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset group exceeds the fair value of the asset group, less costs to sell. The Company did not record any charges related to asset impairment during the years ended December 31, 2023 and 2022. |
Fair Value Measurements | 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. |
Accrued Warranty Costs | Accrued Warranty Costs The Company offers a standard warranty on product sales generally for a one three The activity in the warranty accrual during the years ended December 31, 2023 and 2022 is summarized as follows (in thousands): December 31, 2023 2022 Balance, beginning of year $ 207 $ 79 Additions 237 246 Expirations and claims satisfied (141 ) (118 ) Total 303 207 Less current portion within accrued expenses and other current liabilities (180 ) (136 ) Balance within deferred revenues and other liabilities $ 123 $ 71 |
Debt Issuance Costs | Debt Issuance Costs The Company capitalizes direct costs incurred to obtain debt financing and amortizes these costs to interest expense over the term of the debt using the effective interest method. These costs are recorded as a debt discount and are netted against the related debt on the Company’s consolidated balance sheets. |
Revenue Recognition | Revenue Recognition Revenues from the Company’s dermatology recurring procedures customers are earned by providing physicians with its laser products 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 laser products at physician locations represents embedded leases which are accounted for as operating leases. For the lasers placed-in service under these arrangements, the terms of the domestic arrangements are generally 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 are recognized as revenue on a straight-line basis as the lasers are being used over the term 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 revenue 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 presents the Company’s net revenues disaggregated by dermatology recurring procedures and dermatology procedures equipment (in thousands): Year Ended December 31, 2023 2022 Dermatology recurring procedures $ 21,530 $ 23,025 Dermatology procedures equipment 11,828 13,136 Total net revenues $ 33,358 $ 36,161 The following table summarizes the Company’s expected future undiscounted fixed treatment code payments from international dermatology recurring procedures, the Company’s only long-term arrangements (in thousands): Years ending December 31: 2024 $ 1,319 2025 787 2026 569 2027 298 $ 2,973 Remaining performance obligations related to ASC 606 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 and service contracts leases. As of December 31, 2023 and 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $0.7 million and $0.6 million million million one Contract liabilities primarily relate to extended warranties and service contracts million million million million With respect to contract acquisition costs, the Company applies the practical expedient and expenses these costs immediately. |
Engineering and Product Development | Engineering and Product Development Engineering and product development costs associated with research, new product development and product redesign are expensed as incurred. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and included in selling and marketing expenses within the Company’s consolidated statement of operations. The Company recognized advertising costs of $0.5 million and $1.6 million during the years ended December 31, 2023 and 2022, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company measures share-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. Estimating the fair value of share-based awards requires the input of subjective assumptions, including the expected life of the options and stock price volatility. The Company accounts for forfeitures of stock option awards as they occur. The estimated fair value of restricted stock awards is equal to the Company’s common stock price at the grant date. The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in estimating the fair value of stock-option awards represent management’s estimate and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, share-based compensation expense could be materially different for future awards. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities, as well as on net operating loss carryforwards, and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Any resulting net deferred tax assets are evaluated for recoverability and, accordingly, a valuation allowance is provided when it is not more likely than not that all or some portion of the deferred tax asset will be realized. The Company recognizes the tax effects of uncertain tax positions only if the position is “more-likely-than-not” to be sustained were it to be challenged by a taxing authority. The assessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. If an uncertain tax position meets the “more-likely-than-not” threshold, the largest amount of tax benefit that is more than 50% likely to be recognized upon ultimate settlement with the taxing authority is recorded. The Company has no uncertain tax positions as of December 31, 2023. The Company includes interest and penalties related to income tax obligations within income tax expense. The Company’s tax years are still under open status from 2020 to present. |
Net Loss Per Share | 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: December 31, 2023 2022 Stock options 7,728,721 4,474,714 Common stock warrants 800,000 373,626 Restricted stock units 22,654 278,004 8,551,375 5,126,344 |
Accounting Pronouncements Recently Adopted and Recent Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Recently Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Recent Accounting Pronouncements Not Yet Adopted 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 In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Restricted Cash | The following table provides a reconciliation of the components of cash, cash equivalents and restricted cash reported in the Company’s consolidated balance sheets to the total of the amount presented in the consolidated statements of cash flows (in thousands): December 31, 2023 2022 Cash and cash equivalents $ 6,784 $ 5,434 Restricted cash 1,334 1,361 Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows $ 8,118 $ 6,795 |
Accrued Warranty Costs Activity | The activity in the warranty accrual during the years ended December 31, 2023 and 2022 is summarized as follows (in thousands): December 31, 2023 2022 Balance, beginning of year $ 207 $ 79 Additions 237 246 Expirations and claims satisfied (141 ) (118 ) Total 303 207 Less current portion within accrued expenses and other current liabilities (180 ) (136 ) Balance within deferred revenues and other liabilities $ 123 $ 71 |
Disaggregation of Revenue | The following table presents the Company’s net revenues disaggregated by dermatology recurring procedures and dermatology procedures equipment (in thousands): Year Ended December 31, 2023 2022 Dermatology recurring procedures $ 21,530 $ 23,025 Dermatology procedures equipment 11,828 13,136 Total net revenues $ 33,358 $ 36,161 |
Future Undiscounted Fixed Treatment Code Payments | The following table summarizes the Company’s expected future undiscounted fixed treatment code payments from international dermatology recurring procedures, the Company’s only long-term arrangements (in thousands): Years ending December 31: 2024 $ 1,319 2025 787 2026 569 2027 298 $ 2,973 |
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: December 31, 2023 2022 Stock options 7,728,721 4,474,714 Common stock warrants 800,000 373,626 Restricted stock units 22,654 278,004 8,551,375 5,126,344 |
Asset Acquisition (Tables)
Asset Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Asset Acquisition [Abstract] | |
Purchase Price Allocation | The purchase price was allocated, on a relative fair value basis, to the technology intangible asset and acquired inventories as follows (in thousands): 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 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventories [Abstract] | |
Inventories | Inventories consist of the following (in thousands): December 31, 2023 2022 Raw materials and work-in-process $ 2,192 $ 2,966 Finished goods 481 129 $ 2,673 $ 3,095 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment, net [Abstract] | |
Components of Property and Equipment | Property and equipment consist of the following (in thousands): December 31, 2023 2022 Lasers placed-in-service $ 32,095 $ 28,790 Equipment, computer hardware and software 293 293 Furniture and fixtures 240 235 Leasehold improvements 203 136 Lasers-in-process 3,231 2,452 36,062 31,906 Less: accumulated depreciation and amortization (24,284 ) (21,956 ) $ 11,778 $ 9,950 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Operating Lease Maturities | The following table summarizes the Company’s operating lease maturities as of December 31, 2023 (in thousands): Years ending December 31: 2024 $ 386 2025 195 2026 55 Total remaining lease payments 636 Less: imputed interest (47 ) Total lease liabilities $ 589 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets and Goodwill [Abstract] | |
Components of Intangible Assets | Intangible assets consist of the following (in thousands): December 31, 2023 Balance Accumulated Amortization Net Book Value Core technology $ 5,700 $ (4,845 ) $ 855 Product technology 4,808 (3,866 ) 942 Customer relationships 6,900 (5,865 ) 1,035 Tradenames 1,500 (1,275 ) 225 Pharos customer lists 5,314 (1,052 ) 4,262 $ 24,222 $ (16,903 ) $ 7,319 December 31, 2022 Balance Accumulated Amortization Net Book Value 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 (in thousands): Years ending December 31: 2024 1,971 2025 1,266 2026 561 2027 561 2028 561 |
Components of Goodwill | Goodwill consists of the following (in thousands): December 31, 2023 2022 Dermatology recurring procedures segment $ 5,674 $ 7,958 Dermatology procedures equipment segment 845 845 $ 6,519 $ 8,803 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands): December 31, 2023 2022 Warranty obligations $ 180 $ 136 Compensation and related benefits 1,679 1,997 State sales, use and other taxes 4,316 3,986 Professional fees and other 131 436 $ 6,306 $ 6,555 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long-term Debt [Abstract] | |
Future Payments for Long-term Debt | Future minimum principal payments at December 31, 2023 are as follows (in thousands): Years ending December 31: 2026 $ 3,750 2027 7,500 2028 3,750 15,000 Exit fee 450 15,450 Less: unamortized debt discount (406 ) Long-term debt, net $ 15,044 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stock-Based Compensation [Abstract] | |
Share-based Compensation Expense | The Company recorded share‑based compensation expense (for all awards and modifications, if any) in the accompanying consolidated statements of operations as follows (in thousands): Year Ended December 31, 2023 2022 Selling and marketing $ 79 $ 203 General and administrative 1,224 1,263 $ 1,303 $ 1,466 |
Stock Option Activity | The following table summarizes stock option activity for the years ended December 31, 2023 and 2022: Number of Shares Under Option Plan Weighted- Average Exercise Price per Option Weighted- Average Remaining Contractual Term (in years) Outstanding at January 1, 2022 3,938,613 $ 1.90 Granted 1,000,000 1.41 Exercised (15,000 ) 1.29 Forfeited and expired (448,899 ) 2.63 Outstanding at December 31, 2022 4,474,714 $ 1.72 8.02 Granted 4,545,069 0.63 Forfeited and expired (1,291,062 ) 1.56 Outstanding at December 31, 2023 7,728,721 1.11 6.70 Exercisable at December 31, 2023 1,256,062 $ 1.75 2.09 |
Weighted Average Assumption Used for Grant Date Fair Value of Option Grants | For the years ended December 31, 2023 and 2022, the grant date fair value of all option grants was estimated at the time of grant using the Black-Scholes option-pricing model using the following weighted average assumptions: Year Ended December 31, 2023 2022 Expected term (in years) 7.49 6.10 Expected volatility 74.58 % 89.57 % Risk-free rate 4.38 % 2.51 % Dividend rate 0.00 % 0.00 % |
Summary of Activity in Restricted Stock Units | Restricted stock units have been issued to certain board members. Activity in restricted stock units is summarized in the following table: Number of Units Weighted- Average Grant Date Fair Value Unvested at January 1, 2022 90,540 $ 1.45 Granted 187,464 0.96 Vested (158,407 ) 1.26 Unvested at December 31, 2022 119,597 $ 0.93 Granted 179,613 1.03 Vested (179,467 ) 0.96 Forfeited and expired (97,089 ) 1.03 Unvested at December 31, 2023 22,654 $ 1.03 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Components of Income Tax Expense | Income tax expense consists of the following (in thousands): Year Ended December 31, 2023 2022 Current: Federal $ — $ — State 28 23 28 23 Deferred: Federal (68 ) 23 State (52 ) 17 (120 ) 40 (Benefit from) / provision for income taxes $ (92 ) $ 63 |
Components of Deferred Tax Liability for Federal Income Taxes | Significant components of the Company’s deferred tax liability for federal income taxes consisted of the following (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 46,718 $ 45,077 Intangible assets 2,138 1,697 Inventories 71 57 Reserves and accrued expenses 1,381 1,431 Stock-based compensation 180 548 Operating lease liabilities 145 240 Interest expense limitation carryover 552 208 Property and equipment — 1,111 Gross deferred tax assets 51,185 50,369 Less: valuation allowance (50,139 ) (49,005 ) 1,046 1,364 Deferred tax liabilities: Property and equipment (412 ) — Operating lease right-of-use assets (154 ) (242 ) Goodwill (666 ) (1,095 ) 481(a) adjustment — (333 ) (1,232 ) (1,670 ) Net deferred tax liability $ (186 ) $ (306 ) |
Net Operating Loss Carryforwards | The Company had net operating loss (“NOL”) carryforwards for federal and state income tax purposes as follows (in thousands): December 31, 2023 2022 Federal $ 205,212 $ 198,144 State $ 63,566 $ 60,784 |
Reconciliation of Income Tax Expense | A reconciliation of income tax expense at the statutory federal income tax rate and income taxes as reflected in the consolidated financial statements is as follows: Year Ended December 31, 2023 2022 Federal tax expense at statutory rate 21.00 % 21.00 % State tax, net of federal benefit 0.18 % (0.58 )% Permanent differences (1.89 )% (2.23 )% Other difference and true ups (8.07 )% (11.20 )% Change in valuation allowance (10.38 )% (8.14 )% Effective income tax rate 0.84 % (1.15 )% |
Business and Geographical Rep_2
Business and Geographical Reporting Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business and Geographical Reporting Segments [Abstract] | |
Segment Reporting Information by Segment | The following tables reflect results of operations from our business segments for the periods indicated below (in thousands, except gross profit %): Year Ended December 31, 2023 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Revenues $ 21,530 $ 11,828 $ 33,358 Cost of revenues 8,729 6,168 14,897 Gross profit 12,801 5,660 18,461 Gross profit % 59.5 % 47.9 % 55.3 % Allocated expenses: Engineering and product development 1,011 306 1,317 Selling and marketing 11,169 1,787 12,956 Impairment of goodwill 2,284 — 2,284 Unallocated expenses — — 10,508 14,464 2,093 27,065 (Loss) income from operations (1,663 ) 3,567 (8,604 ) Interest expense — — (1,640 ) Interest income — — 231 Loss on debt extinguishment — — (909 ) (Loss) income before benefit from / (provision for) income taxes $ (1,663 ) $ 3,567 $ (10,922 ) Year Ended December 31, 2022 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Revenues $ 23,025 $ 13,136 $ 36,161 Cost of revenues 8,371 6,022 14,393 Gross profit 14,654 7,114 21,768 Gross profit % 63.6 % 54.2 % 60.2 % Allocated expenses: Engineering and product development 672 357 1,029 Selling and marketing 13,503 1,798 15,301 Unallocated expenses — — 10,087 14,175 2,155 26,417 Income (loss) from operations 479 4,959 (4,649 ) Interest expense — — (926 ) Interest income — — 89 Income (loss) before benefit from / (provision for) income taxes $ 479 $ 4,959 $ (5,486 ) |
Disaggregation of Revenue by Geographical Region | The following tables present the Company’s revenue disaggregated by geographical region for the years ended December 31, 2023 and 2022 (in thousands). Domestic refers to revenue from customers based in the United States, and foreign revenue is derived from the Company’s distributors primarily in Asia. Year Ended December 31, 2023 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Domestic $ 20,215 $ 2,813 $ 23,028 China — 3,340 3,340 Korea 673 2,055 2,728 Other foreign 642 3,620 4,262 Total $ 21,530 $ 11,828 $ 33,358 Year Ended December 31, 2022 Dermatology Recurring Procedures Dermatology Procedures Equipment Total Domestic $ 21,585 $ 2,396 $ 23,981 China 195 4,556 4,751 Korea 888 2,828 3,716 Other foreign 357 3,356 3,713 Total $ 23,025 $ 13,136 $ 36,161 |
Depreciation and Amortization by Reportable Segment | For the years ended December 31, 2023 and 2022, depreciation and amortization by reportable segment were as follows (in thousands): Year Ended December 31, 2023 2022 Dermatology recurring procedures $ 4,793 $ 4,421 Dermatology procedures equipment 746 857 Unallocated expenses 14 15 Total $ 5,553 $ 5,293 |
Total Assets by Reportable Segment | As of December 31, 2023 and 2022, total assets by reportable segment were as follows (in thousands): December 31, 2023 2022 Dermatology recurring procedures $ 28,137 $ 37,230 Dermatology procedures equipment 5,507 7,890 Other unallocated assets 8,372 7,152 Total $ 42,016 $ 52,272 |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) - USD ($) $ in Millions | 1 Months Ended | |
Oct. 31, 2021 | Dec. 31, 2023 | |
MidCap Financial Trust [Member] | Senior Term Facility [Member] | ||
Liquidity and Going Concern [Abstract] | ||
Term loan | $ 8 | |
MidCap Financial Trust [Member] | Senior Term Facility One [Member] | ||
Liquidity and Going Concern [Abstract] | ||
Term loan | 8 | |
MidCap Financial Trust [Member] | Senior Term Facility Two [Member] | ||
Liquidity and Going Concern [Abstract] | ||
Term loan | 7 | |
MidCap Financial Trust [Member] | Senior Term Facility Three [Member] | ||
Liquidity and Going Concern [Abstract] | ||
Term loan | $ 5 | |
At-the-Market Equity Offering [Member] | Maximum [Member] | ||
Liquidity and Going Concern [Abstract] | ||
Amount of common stock the Company may sell under equity distribution agreement | $ 11 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies, Concentrations of Credit Risk and Major Customers (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) Customer | Dec. 31, 2022 USD ($) Customer | |
Concentration of Credit Risk [Abstract] | ||
Revenues | $ 33,358 | $ 36,161 |
Accounts receivable | $ 4,440 | $ 4,471 |
Customer Concentration Risk [Member] | Revenue [Member] | ||
Concentration of Credit Risk [Abstract] | ||
Number of major customers | Customer | 1 | 2 |
Customer Concentration Risk [Member] | Revenue [Member] | One Customer [Member] | ||
Concentration of Credit Risk [Abstract] | ||
Revenues | $ 3,300 | |
Concentration risk percentage | 10% | |
Customer Concentration Risk [Member] | Revenue [Member] | Two Customers [Member] | ||
Concentration of Credit Risk [Abstract] | ||
Revenues | $ 8,500 | |
Concentration risk percentage | 23% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | One Customer [Member] | ||
Concentration of Credit Risk [Abstract] | ||
Accounts receivable | $ 0 | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Two Customers [Member] | ||
Concentration of Credit Risk [Abstract] | ||
Accounts receivable | $ 500 | |
Concentration risk percentage | 11% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Other Customer [Member] | ||
Concentration of Credit Risk [Abstract] | ||
Number of major customers | Customer | 1 | |
Accounts receivable | $ 700 | |
Concentration risk percentage | 16.50% |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies, Cash and Cash Equivalents (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Maximum [Member] | ||
Cash and Cash Equivalents [Abstract] | ||
Credit card transaction settlement term | 5 days | 5 days |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies, Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Restricted Cash [Abstract] | |||
Cash and cash equivalents | $ 6,784 | $ 5,434 | |
Restricted cash | 1,334 | 1,361 | |
Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows | $ 8,118 | $ 6,795 | $ 12,586 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies, Property and Equipment, net (Details) | Dec. 31, 2023 |
Computers, Hardware and Software [Member] | |
Property and Equipment, Net [Abstract] | |
Property and equipment, net, useful life | 3 years |
Machinery and Equipment [Member] | |
Property and Equipment, Net [Abstract] | |
Property and equipment, net, useful life | 5 years |
Furniture and Fixtures [Member] | |
Property and Equipment, Net [Abstract] | |
Property and equipment, net, useful life | 7 years |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies, Intangible Assets (Details) | Dec. 31, 2023 |
Minimum [Member] | |
Intangible Assets [Abstract] | |
Estimated useful life | 3 years |
Maximum [Member] | |
Intangible Assets [Abstract] | |
Estimated useful life | 12 years |
Basis of Presentation and Sum_9
Basis of Presentation and Summary of Significant Accounting Policies, Goodwill (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) Unit | Dec. 31, 2022 USD ($) | |
Goodwill [Abstract] | ||
Number of reporting units | Unit | 2 | |
Goodwill impairment | $ | $ 2,284 | $ 0 |
Market Approach [Member] | ||
Goodwill [Abstract] | ||
Percentage of fair value weighting market approach given | 25% | |
Income Approach [Member] | ||
Goodwill [Abstract] | ||
Percentage of fair value weighting market approach given | 75% |
Basis of Presentation and Su_10
Basis of Presentation and Summary of Significant Accounting Policies, Impairment of Long-Lived Assets and Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Impairment of Long-Lived Assets and Intangibles [Abstract] | ||
Asset impairment charges | $ 0 | $ 0 |
Basis of Presentation and Su_11
Basis of Presentation and Summary of Significant Accounting Policies, Accrued Warranty Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Activity of Warranty Accrual [Roll Forward] | ||
Balance, beginning of year | $ 207 | $ 79 |
Additions | 237 | 246 |
Expirations and claims satisfied | (141) | (118) |
Total | 303 | 207 |
Less current portion within accrued expenses and other current liabilities | (180) | (136) |
Balance within deferred revenues and other liabilities | $ 123 | $ 71 |
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 |
Basis of Presentation and Su_12
Basis of Presentation and Summary of Significant Accounting Policies, Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Lasers Placed-in Service [Member] | |
Revenue Recognition [Abstract] | |
Lease term | 36 months |
Renewal term | 1 year |
Lasers Placed-in Service [Member] | Minimum [Member] | |
Revenue Recognition [Abstract] | |
Notice period to cancel contract agreement | 30 days |
Lasers Placed-in Service [Member] | Maximum [Member] | |
Revenue Recognition [Abstract] | |
Notice period to cancel contract agreement | 60 days |
South Korea [Member] | |
Revenue Recognition [Abstract] | |
Lease term | 48 months |
Basis of Presentation and Su_13
Basis of Presentation and Summary of Significant Accounting Policies, Revenue Recognition, Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Abstract] | ||
Revenues, net | $ 33,358 | $ 36,161 |
Dermatology Recurring Procedures [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenues, net | 21,530 | 23,025 |
Dermatology Procedures Equipment [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Revenues, net | $ 11,828 | $ 13,136 |
Basis of Presentation and Su_14
Basis of Presentation and Summary of Significant Accounting Policies, Revenue Recognition, Future Undiscounted Fixed Treatment Code Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | $ 700 | $ 600 |
Dermatology Recurring Procedures [Member] | ||
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | 2,973 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | $ 400 | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | $ 300 | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Dermatology Recurring Procedures [Member] | ||
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | $ 1,319 | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Dermatology Recurring Procedures [Member] | ||
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | $ 787 | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Dermatology Recurring Procedures [Member] | ||
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | $ 569 | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Dermatology Recurring Procedures [Member] | ||
Revenue, Performance Obligation Satisfied over Time [Abstract] | ||
Future undiscounted fixed payments from international recurring revenue customers | $ 298 | |
Expected timing of satisfaction period | 1 year |
Basis of Presentation and Su_15
Basis of Presentation and Summary of Significant Accounting Policies, Revenue Recognition, Remaining Performance Obligation (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Remaining Performance Obligation [Abstract] | ||
Remaining performance obligations | $ 0.7 | $ 0.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Remaining Performance Obligation [Abstract] | ||
Remaining performance obligations | $ 0.4 | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Minimum [Member] | ||
Remaining Performance Obligation [Abstract] | ||
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Maximum [Member] | ||
Remaining Performance Obligation [Abstract] | ||
Expected timing of satisfaction period | 3 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Remaining Performance Obligation [Abstract] | ||
Remaining performance obligations | $ 0.3 | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Minimum [Member] | ||
Remaining Performance Obligation [Abstract] | ||
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Maximum [Member] | ||
Remaining Performance Obligation [Abstract] | ||
Expected timing of satisfaction period | 3 years |
Basis of Presentation and Su_16
Basis of Presentation and Summary of Significant Accounting Policies, Revenue Recognition, Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contract with Customer, Liability [Abstract] | ||
Short-term contract liabilities | $ 0.3 | $ 0.4 |
Long-term contract liabilities | 0.4 | 0.2 |
Change in Contract with Customer, Liability [Abstract] | ||
Contract liabilities recognized as revenue | $ 0.4 | $ 0.9 |
Basis of Presentation and Su_17
Basis of Presentation and Summary of Significant Accounting Policies, Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Advertising Costs [Abstract] | ||
Advertising expense | $ 0.5 | $ 1.6 |
Basis of Presentation and Su_18
Basis of Presentation and Summary of Significant Accounting Policies, Net Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Abstract] | ||
Potential common stock equivalents (in shares) | 8,551,375 | 5,126,344 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Abstract] | ||
Potential common stock equivalents (in shares) | 7,728,721 | 4,474,714 |
Common Stock Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Abstract] | ||
Potential common stock equivalents (in shares) | 800,000 | 373,626 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Net Loss Per Share [Abstract] | ||
Potential common stock equivalents (in shares) | 22,654 | 278,004 |
Asset Acquisition (Details)
Asset Acquisition (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Jan. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | |
Acquisition of Assets and Liabilities [Abstract] | |||
Number of shares issued in connection with asset acquisition (in shares) | 358,367 | ||
Assets acquired [Abstract] | |||
Reduction in contingent consideration adjusted to carrying value of technology intangible asset | $ 7,400 | ||
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 | ||
Future earnout payment due upon revenue target | $ 1,000 | ||
Royalty and gross profit payments incurred | $ 100 | ||
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% | ||
Risk free rate of return | 1.60% | 3.80% | |
Revenue volatility | 45% | 15% | |
Cost of equity | 10.50% | 10% | |
Fair value of contingent consideration | $ 1,200 | ||
Reduction in contingent consideration adjusted to carrying value of technology intangible asset | $ (7,400) | ||
TheraClear Corporation [Member] | Technology [Member] | |||
Assets acquired [Abstract] | |||
Intangible asset | $ 10,182 | ||
Amortization period of intangible assets | 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% | ||
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% | ||
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% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of inventory [Abstract] | ||
Raw materials and work-in-process | $ 2,192 | $ 2,966 |
Finished goods | 481 | 129 |
Inventories, net | $ 2,673 | $ 3,095 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 36,062 | $ 31,906 |
Less: accumulated depreciation and amortization | (24,284) | (21,956) |
Property and equipment, net | 11,778 | 9,950 |
Depreciation and amortization expense | 2,900 | 2,400 |
Lasers Placed-In-Service [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 32,095 | 28,790 |
Equipment, Computer Hardware and Software [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 293 | 293 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 240 | 235 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 203 | 136 |
Lasers-In-Process [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 3,231 | $ 2,452 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee, Operating Lease, Description [Abstract] | ||
Increase in ROU asset and operating lease liability resulting from lease modification | $ 700 | $ 0 |
Operating lease costs | 400 | 400 |
Cash paid for amounts included in measurement of operating lease liabilities | $ 400 | $ 400 |
Weighted average incremental borrowing rate | 8.60% | 8.76% |
Weighted average remaining lease term | 2 years | 2 years 9 months 18 days |
Operating Lease Maturities [Abstract] | ||
2024 | $ 386 | |
2025 | 195 | |
2026 | 55 | |
Total remaining lease payments | 636 | |
Less: imputed interest | (47) | |
Total lease liabilities | $ 589 | |
Minimum [Member] | ||
Lessee, Operating Lease, Description [Abstract] | ||
Remaining lease term | 1 year | |
Maximum [Member] | ||
Lessee, Operating Lease, Description [Abstract] | ||
Remaining lease term | 3 years | |
Facility One [Member] | ||
Lessee, Operating Lease, Description [Abstract] | ||
Renewal option term | 2 years |
Intangible Assets and Goodwill,
Intangible Assets and Goodwill, Components of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Components of Intangible Assets [Abstract] | ||
Balance | $ 24,222 | $ 31,596 |
Accumulated amortization | (16,903) | (14,202) |
Intangible assets, net | 7,319 | 17,394 |
Amortization expense of intangible assets | 2,700 | 2,900 |
Reduction in contingent consideration adjusted to carrying value of technology intangible asset | 7,400 | |
Core Technology [Member] | ||
Components of Intangible Assets [Abstract] | ||
Balance | 5,700 | 5,700 |
Accumulated amortization | (4,845) | (4,275) |
Intangible assets, net | 855 | 1,425 |
Product Technology [Member] | ||
Components of Intangible Assets [Abstract] | ||
Balance | 4,808 | 12,182 |
Accumulated amortization | (3,866) | (3,018) |
Intangible assets, net | 942 | 9,164 |
Customer Relationships [Member] | ||
Components of Intangible Assets [Abstract] | ||
Balance | 6,900 | 6,900 |
Accumulated amortization | (5,865) | (5,175) |
Intangible assets, net | 1,035 | 1,725 |
Tradenames [Member] | ||
Components of Intangible Assets [Abstract] | ||
Balance | 1,500 | 1,500 |
Accumulated amortization | (1,275) | (1,125) |
Intangible assets, net | 225 | 375 |
Pharos Customer Lists [Member] | ||
Components of Intangible Assets [Abstract] | ||
Balance | 5,314 | 5,314 |
Accumulated amortization | (1,052) | (609) |
Intangible assets, net | $ 4,262 | $ 4,705 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill, Estimated Future Amortization Expense for Intangible Assets (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Estimated amortization expense [Abstract] | |
2024 | $ 1,971 |
2025 | 1,266 |
2026 | 561 |
2027 | 561 |
2028 | $ 561 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill, Components of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Components of Goodwill [Abstract] | ||
Goodwill | $ 6,519 | $ 8,803 |
Impairment of goodwill | 2,284 | 0 |
Dermatology Recurring Procedures [Member] | ||
Components of Goodwill [Abstract] | ||
Goodwill | 5,674 | 7,958 |
Impairment of goodwill | 2,300 | |
Dermatology Procedures Equipment [Member] | ||
Components of Goodwill [Abstract] | ||
Goodwill | $ 845 | $ 845 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued Expenses and Other Current Liabilities [Abstract] | ||
Warranty obligations | $ 180 | $ 136 |
Compensation and related benefits | 1,679 | 1,997 |
State sales, use and other taxes | 4,316 | 3,986 |
Professional fees and other | 131 | 436 |
Accrued expenses and other current liabilities | $ 6,306 | $ 6,555 |
Long-term Debt, Senior Term Fac
Long-term Debt, Senior Term Facility (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Sep. 06, 2022 | Jun. 30, 2023 $ / shares shares | Sep. 30, 2021 $ / shares shares | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) Payment $ / shares shares | Dec. 31, 2022 USD ($) | |
Long-term Debt [Abstract] | ||||||
Loss on debt extinguishment | $ (909) | $ 0 | ||||
Unamortized debt discount | 406 | |||||
Exit fee | 450 | |||||
SOFR [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Term of variable rate | 1 month | |||||
Basis spread on variable rate | 0.50% | |||||
Interest rate floor | 0.10% | |||||
Senior Term Facility [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Warrants issued (in shares) | shares | 800,000 | 373,626 | ||||
Warrants, exercise price (in dollars per share) | $ / shares | $ 0.88 | $ 1.82 | ||||
MidCap Financial Trust [Member] | Senior Term Facility [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Face amount of debt | $ 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% | |||||
Prepayment fee if prepayment is made between twelve months and twenty-four months | 3% | |||||
Prepayment fee if prepayment is made between twenty-four months and thirty-six months | 2% | |||||
Prepayment fee if prepayment is made after thirty-six months | 1% | |||||
Minimum net revenue threshold | $ 29,000 | |||||
Minimum net revenue threshold by December 31, 2026 | 33,000 | |||||
Minimum net revenue threshold by trailing 12-month period | 36,000 | |||||
Minimum unrestricted cash | 3,000 | |||||
Loss on debt extinguishment | 900 | |||||
Unamortized debt discount | 400 | |||||
Increase in fair value of warrants | 400 | |||||
Lender fees | 100 | |||||
Interest expense | 1,600 | 900 | ||||
Amortization of debt discount | 100 | $ 200 | ||||
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] | Forecast [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Minimum net revenue threshold by trailing 12-month period | $ 33,000 | |||||
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 | |||||
Warrants, expected term | 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 | |||||
Warrants, expected term | 10 years | |||||
MidCap Financial Trust [Member] | Senior Term Facility [Member] | LIBOR [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Basis spread on variable rate | 7.50% | |||||
Interest rate floor | 0.50% | |||||
MidCap Financial Trust [Member] | Senior Term Facility, Amendment [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Face amount of debt | $ 20,000 | |||||
Forward looking term | 30 days | |||||
Interest rate floor | 3.50% | |||||
Amount available to be drawn under condition | $ 30,000 | |||||
Effective interest rate | 13.68% | 11.72% | ||||
Required percentage of certain insurance proceeds | 100% | |||||
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 | 4% | |||||
MidCap Financial Trust [Member] | Credit Facility #3 [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Amount available for amount drawn | $ 5,000 | |||||
Percentage of credit extension | 0.50% | |||||
Percentage of exit fee | 4% | |||||
MidCap Financial Trust [Member] | Senior Term Facility, Third Amendment [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Unamortized debt discount | $ 400 | $ 500 | ||||
Exit fee | 500 | |||||
Third party costs incurred | $ 13 | |||||
MidCap Financial Trust [Member] | Senior Term Facility, Fourth Amendment, Credit Facility 1 [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Percentage of credit extension | 3% | |||||
MidCap Financial Trust [Member] | Senior Term Facility, Fourth Amendment, Credit Facility 2 [Member] | ||||||
Long-term Debt [Abstract] | ||||||
Percentage of credit extension | 3% |
Long-term Debt, Future Minimum
Long-term Debt, Future Minimum Principal Payments (Details) - USD ($) $ in Thousands | Dec. 31, 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 | (406) | |
Long-term debt, net | $ 15,044 | $ 7,476 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 23, 2023 USD ($) | Jan. 31, 2022 USD ($) Device | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Legal Matters [Abstract] | ||||
Litigation settlement to be paid | $ 0.1 | |||
Litigation settlement accrued | $ 0.1 | |||
Employee 401(k) Savings Plan [Abstract] | ||||
Employer contribution amount | $ 0.4 | $ 0.3 | ||
Milestone Payment [Abstract] | ||||
Development agreement term | 3 years | |||
Maximum [Member] | ||||
Milestone Payment [Abstract] | ||||
Number of devices in development | Device | 3 | |||
Future earnout payments | $ 0.5 | |||
Future milestone payments | 3 | |||
Domestic [Member] | Maximum [Member] | ||||
Milestone Payment [Abstract] | ||||
Future royalty payments | $ 0.5 | |||
Tax Period from March 2014 through November 2022 [Member] | ||||
Sales and Use Tax Matters [Abstract] | ||||
Estimated tax positions subject to audit | $ 3.9 | |||
Tax Period from March 2014 through November 2022 [Member] | Assessment One [Member] | ||||
Sales and Use Tax Matters [Abstract] | ||||
Assessment amount | 1.4 | |||
Tax Period from March 2014 through November 2022 [Member] | Assessment Two [Member] | ||||
Sales and Use Tax Matters [Abstract] | ||||
Assessment amount | $ 2.5 |
Stockholders' Equity, Preferred
Stockholders' Equity, Preferred Stock and Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Class of Stock Disclosures [Abstract] | |||
Preferred stock, stated value (in dollars per share) | $ 0.1 | $ 0.1 | |
Preferred shares outstanding (in shares) | 0 | 0 | |
Issuance of restricted stock (in shares) | 337,874 | ||
Number of shares issued in connection with asset acquisition (in shares) | 358,367 | ||
At-the-Market Equity Offering [Member] | |||
Class of Stock Disclosures [Abstract] | |||
Common stock sold under equity distribution agreement (in shares) | 0 | 0 | |
At-the-Market Equity Offering [Member] | Maximum [Member] | |||
Class of Stock Disclosures [Abstract] | |||
Amount of common stock the Company may sell under equity distribution agreement | $ 11 | ||
Commission as percentage of gross proceeds from sale of shares sold | 3% | ||
Series C Convertible Preferred Stock [Member] | |||
Class of Stock Disclosures [Abstract] | |||
Beneficial ownership percentage | 9.99% | ||
Preferred stock, stated value (in dollars per share) | $ 1,000 | ||
Preferred stock conversion price (in dollars per share) | $ 2.69 |
Stockholders' Equity, Outstandi
Stockholders' Equity, Outstanding Common Stock Warrants (Details) - Senior Term Facility [Member] - $ / shares | 1 Months Ended | |
Jun. 30, 2023 | Sep. 30, 2021 | |
Warrants and Rights [Abstract] | ||
Warrants issued (in shares) | 800,000 | 373,626 |
Exercise price (in dollars per share) | $ 0.88 | $ 1.82 |
Stock-Based Compensation, Summa
Stock-Based Compensation, Summary (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Apr. 03, 2023 | Mar. 30, 2022 | Oct. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Stock-based Compensation [Abstract] | |||||
Unvested options to purchase shares of common stock accelerated (in shares) | 272,098 | ||||
Accelerated compensation expense | $ 0.3 | ||||
Stock Options [Member] | |||||
Stock-based Compensation [Abstract] | |||||
Granted (in shares) | 4,545,069 | 1,000,000 | |||
Stock-based options forfeited (in shares) | 60,000 | ||||
Stock Options [Member] | Chief Executive Officer [Member] | |||||
Stock-based Compensation [Abstract] | |||||
Granted (in shares) | 150,000 | 160,000 | |||
Stock-based options forfeited (in shares) | 150,000 | ||||
2016 Omnibus Incentive Plan [Member] | |||||
Stock-based Compensation [Abstract] | |||||
Common stock reserved for future issuance (in shares) | 7,832,651 | ||||
Number of shares available for issuance (in shares) | 1,329,375 |
Stock-Based Compensation, Share
Stock-Based Compensation, Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Stock-Based Compensation Expense [Abstract] | ||
Stock-based compensation expense | $ 1,303 | $ 1,466 |
Selling and Marketing [Member] | ||
Stock-Based Compensation Expense [Abstract] | ||
Stock-based compensation expense | 79 | 203 |
General and Administrative [Member] | ||
Stock-Based Compensation Expense [Abstract] | ||
Stock-based compensation expense | $ 1,224 | $ 1,263 |
Stock-Based Compensation, Stock
Stock-Based Compensation, Stock Options (Details) - Stock Options [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Shares under Options Plan [Abstract] | ||
Outstanding at beginning of period (in shares) | 4,474,714 | 3,938,613 |
Granted (in shares) | 4,545,069 | 1,000,000 |
Exercised (in shares) | (15,000) | |
Forfeited and expired (in shares) | (1,291,062) | (448,899) |
Outstanding at end of period (in shares) | 7,728,721 | 4,474,714 |
Exercisable at end of period (in shares) | 1,256,062 | |
Weighted Average Exercise Price per Option [Abstract] | ||
Outstanding at beginning of period (in dollars per share) | $ 1.72 | $ 1.9 |
Granted (in dollars per share) | 0.63 | 1.41 |
Exercised (in dollars per share) | 1.29 | |
Forfeited and expired (in dollars per share) | 1.56 | 2.63 |
Outstanding at end of period (in dollars per share) | 1.11 | $ 1.72 |
Exercisable at end of period (in dollars per share) | $ 1.75 | |
Weighted average remaining contractual term [Abstract] | ||
Outstanding | 6 years 8 months 12 days | 8 years 7 days |
Exercisable | 2 years 1 month 2 days | |
Weighted-average grant date fair value (in dollars per share) | $ 0.44 | $ 1.06 |
Unrecognized compensation expense | $ 2,100,000 | |
Unrecognized compensation expense, weighted average period | 3 years 1 month 6 days | |
Aggregate intrinsic value of options outstanding | $ 100 | $ 0 |
Aggregate intrinsic value of options exercisable | 0 | 0 |
Aggregate intrinsic value of options exercised | $ 0 | $ 0 |
Maximum [Member] | ||
Weighted average remaining contractual term [Abstract] | ||
Expiration period | 10 years |
Stock-Based Compensation, Fair
Stock-Based Compensation, Fair Value Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Assumptions [Abstract] | ||
Expected term (in years) | 7 years 5 months 26 days | 6 years 1 month 6 days |
Expected volatility | 74.58% | 89.57% |
Risk-free interest rate | 4.38% | 2.51% |
Expected dividend rate | 0% | 0% |
Stock-Based Compensation, Restr
Stock-Based Compensation, Restricted Stock Units (Details) - Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Units [Abstract] | ||
Unvested balance at beginning of period (in shares) | 119,597 | 90,540 |
Granted (in shares) | 179,613 | 187,464 |
Vested (in shares) | (179,467) | (158,407) |
Forfeited and expired (in shares) | (97,089) | |
Unvested balance at end of period (in shares) | 22,654 | 119,597 |
Weighted-Average Grant Date Fair Value [Abstract] | ||
Unvested balance at beginning of period (in dollars per share) | $ 0.93 | $ 1.45 |
Granted (in dollars per share) | 1.03 | 0.96 |
Vested (in dollars per share) | 0.96 | 1.26 |
Forfeited and expired (in dollars per share) | 1.03 | |
Unvested balance at end of period (in dollars per share) | $ 1.03 | $ 0.93 |
Unrecognized Compensation Expense [Abstract] | ||
Weighted average period of recognition | 6 months | |
Maximum [Member] | ||
Unrecognized Compensation Expense [Abstract] | ||
Unrecognized compensation expense | $ 18 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current [Abstract] | ||
Federal | $ 0 | $ 0 |
State | 28 | 23 |
Current income tax | 28 | 23 |
Deferred [Abstract] | ||
Federal | (68) | 23 |
State | (52) | 17 |
Deferred income tax | (120) | 40 |
(Benefit from) / provision for income taxes | (92) | 63 |
Deferred Tax Assets [Abstract] | ||
Net operating loss carryforwards | 46,718 | 45,077 |
Intangible assets | 2,138 | 1,697 |
Inventories | 71 | 57 |
Reserves and accrued expenses | 1,381 | 1,431 |
Stock-based compensation | 180 | 548 |
Operating lease liabilities | 145 | 240 |
Interest expense limitation carryover | 552 | 208 |
Property and equipment | 0 | 1,111 |
Gross deferred tax assets | 51,185 | 50,369 |
Less: valuation allowance | (50,139) | (49,005) |
Net deferred tax assets | 1,046 | 1,364 |
Deferred Tax Liabilities [Abstract] | ||
Property and equipment | (412) | 0 |
Operating lease right-of-use assets | (154) | (242) |
Goodwill | (666) | (1,095) |
481(a) adjustment | 0 | (333) |
Gross deferred tax liabilities | (1,232) | (1,670) |
Net deferred tax liability | (186) | (306) |
Valuation allowance - Deferred tax asset change in amount | 1,100 | |
Unrecognized tax benefits | $ 0 | $ 0 |
Effective Income Tax Rate Reconciliation [Abstract] | ||
Federal tax expense at statutory rate | 21% | 21% |
State tax, net of federal benefit | 0.18% | (0.58%) |
Permanent differences | (1.89%) | (2.23%) |
Other difference and true ups | (8.07%) | (11.20%) |
Change in valuation allowance | (10.38%) | (8.14%) |
Effective income tax rate | 0.84% | (1.15%) |
Federal [Member] | ||
Operating Loss Carryforwards [Abstract] | ||
Operating loss carryforwards | $ 205,212 | $ 198,144 |
State [Member] | ||
Operating Loss Carryforwards [Abstract] | ||
Operating loss carryforwards | $ 63,566 | $ 60,784 |
Business and Geographical Rep_3
Business and Geographical Reporting Segments, Results of Operations from Business Segments (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | |
Business Segments [Abstract] | ||
Number of operating segments | Segment | 2 | |
Results of Operations from Business Segments [Abstract] | ||
Revenues | $ 33,358 | $ 36,161 |
Cost of revenues | 14,897 | 14,393 |
Gross profit | $ 18,461 | $ 21,768 |
Gross profit % | 55.30% | 60.20% |
Allocated expenses [Abstract] | ||
Engineering and product development | $ 1,317 | $ 1,029 |
Selling and marketing | 12,956 | 15,301 |
Impairment of goodwill | 2,284 | 0 |
Unallocated expenses | 10,508 | 10,087 |
Total operating expenses | 27,065 | 26,417 |
Loss from operations | (8,604) | (4,649) |
Interest expense | (1,640) | (926) |
Interest income | 231 | 89 |
Loss on debt extinguishment | (909) | 0 |
(Loss) income before benefit from / (provision for) income taxes | (10,922) | (5,486) |
Dermatology Recurring Procedures [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 21,530 | 23,025 |
Allocated expenses [Abstract] | ||
Impairment of goodwill | 2,300 | |
Dermatology Procedures Equipment [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 11,828 | 13,136 |
Operating Segments [Member] | Dermatology Recurring Procedures [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 21,530 | 23,025 |
Cost of revenues | 8,729 | 8,371 |
Gross profit | $ 12,801 | $ 14,654 |
Gross profit % | 59.50% | 63.60% |
Allocated expenses [Abstract] | ||
Engineering and product development | $ 1,011 | $ 672 |
Selling and marketing | 11,169 | 13,503 |
Impairment of goodwill | 2,284 | |
Unallocated expenses | 0 | 0 |
Total operating expenses | 14,464 | 14,175 |
Loss from operations | (1,663) | 479 |
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Loss on debt extinguishment | 0 | |
(Loss) income before benefit from / (provision for) income taxes | (1,663) | 479 |
Operating Segments [Member] | Dermatology Procedures Equipment [Member] | ||
Results of Operations from Business Segments [Abstract] | ||
Revenues | 11,828 | 13,136 |
Cost of revenues | 6,168 | 6,022 |
Gross profit | $ 5,660 | $ 7,114 |
Gross profit % | 47.90% | 54.20% |
Allocated expenses [Abstract] | ||
Engineering and product development | $ 306 | $ 357 |
Selling and marketing | 1,787 | 1,798 |
Impairment of goodwill | 0 | |
Unallocated expenses | 0 | 0 |
Total operating expenses | 2,093 | 2,155 |
Loss from operations | 3,567 | 4,959 |
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Loss on debt extinguishment | 0 | |
(Loss) income before benefit from / (provision for) income taxes | $ 3,567 | $ 4,959 |
Business and Geographical Rep_4
Business and Geographical Reporting Segments, Depreciation and Amortization by Reportable Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Depreciation and Amortization by Reportable Segment [Abstract] | ||
Depreciation and amortization | $ 5,553 | $ 5,293 |
Operating Segments [Member] | Dermatology Recurring Procedures [Member] | ||
Depreciation and Amortization by Reportable Segment [Abstract] | ||
Depreciation and amortization | 4,793 | 4,421 |
Operating Segments [Member] | Dermatology Procedures Equipment [Member] | ||
Depreciation and Amortization by Reportable Segment [Abstract] | ||
Depreciation and amortization | 746 | 857 |
Unallocated [Member] | ||
Depreciation and Amortization by Reportable Segment [Abstract] | ||
Depreciation and amortization | $ 14 | $ 15 |
Business and Geographical Rep_5
Business and Geographical Reporting Segments, Disaggregation of Revenue by Geographical Region (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | $ 33,358 | $ 36,161 |
Dermatology Recurring Procedures [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 21,530 | 23,025 |
Dermatology Procedures Equipment [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 11,828 | 13,136 |
Domestic [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 23,028 | 23,981 |
China [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 3,340 | 4,751 |
Korea [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 2,728 | 3,716 |
Other Foreign [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 4,262 | 3,713 |
Operating Segments [Member] | Dermatology Recurring Procedures [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 21,530 | 23,025 |
Operating Segments [Member] | Dermatology Procedures Equipment [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 11,828 | 13,136 |
Operating Segments [Member] | Domestic [Member] | Dermatology Recurring Procedures [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 20,215 | 21,585 |
Operating Segments [Member] | Domestic [Member] | Dermatology Procedures Equipment [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 2,813 | 2,396 |
Operating Segments [Member] | China [Member] | Dermatology Recurring Procedures [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 0 | 195 |
Operating Segments [Member] | China [Member] | Dermatology Procedures Equipment [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 3,340 | 4,556 |
Operating Segments [Member] | Korea [Member] | Dermatology Recurring Procedures [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 673 | 888 |
Operating Segments [Member] | Korea [Member] | Dermatology Procedures Equipment [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 2,055 | 2,828 |
Operating Segments [Member] | Other Foreign [Member] | Dermatology Recurring Procedures [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | 642 | 357 |
Operating Segments [Member] | Other Foreign [Member] | Dermatology Procedures Equipment [Member] | ||
Disaggregation of Revenue by Geographical Region [Abstract] | ||
Revenues | $ 3,620 | $ 3,356 |
Business and Geographical Rep_6
Business and Geographical Reporting Segments, Total Assets by Reportable Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Total Assets by Reportable Segment [Abstract] | ||
Assets | $ 42,016 | $ 52,272 |
Non-US [Member] | ||
Long-lived Assets [Abstract] | ||
Long-lived assets | 800 | 600 |
Operating Segments [Member] | Dermatology Recurring Procedures [Member] | ||
Total Assets by Reportable Segment [Abstract] | ||
Assets | 28,137 | 37,230 |
Operating Segments [Member] | Dermatology Procedures Equipment [Member] | ||
Total Assets by Reportable Segment [Abstract] | ||
Assets | 5,507 | 7,890 |
Other Unallocated Assets [Member] | ||
Total Assets by Reportable Segment [Abstract] | ||
Assets | $ 8,372 | $ 7,152 |