|
|
||
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
|
|
||
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
| Item 2.02. |
Results of Operations and Financial Condition.
|
| Item 7.01. |
Regulation FD Disclosure.
|
| Item 9.01. |
Financial Statements and Exhibits.
|
|
Press Release dated May 14, 2025 issued by STRATA Skin Sciences, Inc.
|
||
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document).
|
|
STRATA SKIN SCIENCES, INC.
|
|||
|
Date: May 14, 2025
|
By:
|
/s/ John Gillings
|
|
|
Chief Accounting Officer
|
|||
| • |
Revenue in the first quarter of 2025 was $6.8 million, up 1%
|
| o |
Global net recurring XTRAC® revenue in the first quarter was $4.5 million vs. $4.6 million in the prior year period, with international growth of 27%
offsetting a 4% decline in the domestic market
|
| o |
Average net revenue per domestic XTRAC® system increased to $4,776 (+3% YoY) on 846
|
| o |
Total Recurring revenue increased 1% to $4.7 million in the first quarter
|
| o |
Equipment revenue for the first quarter was $2.1 million, up 1.4% from the year-ago period
|
| • |
Gross margin in the first quarter was 53.5%, up 790 basis points from 45.6% in the prior year period
|
| • |
Operating expenses in the first quarter were $5.7 million, down 5% as compared to the year-ago period
|
| • |
Operating cash flow improved by $254 thousand to negative $550 thousand
|
| • |
Adjusted EBITDA improved by $732 thousand to negative $547 thousand versus negative $1.3 million in the prior year period
|
| • |
Total cash at quarter end was $7.8 million
|
|
Three Months Ended March 31,
|
||||||||
|
(in thousands)
|
2025
|
2024
|
||||||
|
Net loss
|
$
|
(2,432
|
)
|
$
|
(3,368
|
)
|
||
|
Adjustments:
|
||||||||
|
Depreciation and amortization
|
1,220
|
1,249
|
||||||
|
Amortization of operating lease right-of-use asset
|
85
|
95
|
||||||
|
Loss on disposal of property and equipment
|
34
|
13
|
||||||
|
Interest expense, net
|
417
|
479
|
||||||
|
Non-GAAP EBITDA
|
(676
|
)
|
(1,532
|
)
|
||||
|
Stock-based compensation
|
129
|
112
|
||||||
|
Inventory write-off
|
-
|
141
|
||||||
|
Non-GAAP adjusted EBITDA
|
$
|
(547
|
)
|
$
|
(1,279
|
)
|
||
|
Three Months Ended March 31,
|
||||||||
|
(in thousands)
|
2025
|
2024
|
||||||
|
Gross domestic recurring billings
|
$
|
4,086
|
$
|
4,578
|
||||
|
Co-Pay adjustments
|
(74
|
)
|
(80
|
)
|
||||
|
Other Discounts
|
(4
|
)
|
(30
|
)
|
||||
|
Deferred revenue from prior quarters
|
1,545
|
1,624
|
||||||
|
Deferral of revenue to future quarters
|
(1,513
|
)
|
(1,901
|
)
|
||||
|
GAAP domestic revenue
|
$
|
4,041
|
$
|
4,190
|
||||
|
March 31, 2025
|
December 31, 2024
|
|||||||
|
(unaudited)
|
||||||||
|
Assets
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
6,512
|
7,261
|
||||||
|
Restricted cash
|
1,334
|
1,334
|
||||||
|
Accounts receivable, net of allowance for credit losses of $548 and $466 at March31, 2025 and December 31, 2024, respectively
|
5,007
|
5,253
|
||||||
|
Inventories
|
2,659
|
2,246
|
||||||
|
Prepaid expenses and other current assets
|
364
|
501
|
||||||
|
Total current assets
|
15,876
|
16,595
|
||||||
|
Property and equipment, net
|
9,462
|
10,061
|
||||||
|
Operating lease right-of-use assets
|
1,179
|
1,264
|
||||||
|
Intangible assets, net
|
4,856
|
5,348
|
||||||
|
Goodwill
|
2,658
|
2,658
|
||||||
|
Other assets
|
231
|
231
|
||||||
|
Total assets
|
34,262
|
36,157
|
||||||
|
Liabilities and Stockholders' Equity
|
||||||||
|
Current liabilities:
|
||||||||
|
Accounts payable
|
2,816
|
2,433
|
||||||
|
Accrued expenses and other current liabilities
|
8,779
|
8,593
|
||||||
|
Deferred revneues
|
2,204
|
2,241
|
||||||
|
Current portion of operating lease liabilities
|
331
|
328
|
||||||
|
Current portion of contingent consideration
|
1,009
|
1,030
|
||||||
|
Total current liabilities
|
15,139
|
14,625
|
||||||
|
Long-term debt, net
|
15,231
|
15,192
|
||||||
|
Deferred revenues and other liabilities
|
292
|
353
|
||||||
|
Operating lease liabilities, net of current portion
|
835
|
919
|
||||||
|
Contingent consideration, net of current portion
|
96
|
96
|
||||||
|
Total liabilities
|
31,593
|
31,185
|
||||||
|
Commitments and contingencies
|
||||||||
|
Stockholders equity:
|
||||||||
|
Series C covertible preferred stock, $0.10 par value; 10,000,000 shars authorised, no shares issued and outstanding
|
-
|
-
|
||||||
|
Common stock, $0.001 par value; 150,000,000 shares authorised; 4,171,161 shares issued and outstanding at both March 31, 2025 and December 31, 2024
|
4
|
4
|
||||||
|
Additional paid-in capital
|
253,241
|
253,112
|
||||||
|
Accumulated deficit
|
(250,576
|
)
|
(248,144
|
)
|
||||
|
Total stockholders' equity
|
2,669
|
4,972
|
||||||
|
Total liabilities and stockholders' equity
|
34,262
|
36,157
|
||||||
| Three Months Ended March 31, |
||||||||
| 2025 |
2024 |
|
||||||
|
Revenues, net
|
$
|
6,812
|
$
|
6,754
|
||||
|
Cost of revenue
|
3,165
|
3,674
|
||||||
|
Gross profit
|
3,647
|
3,080
|
||||||
|
Operating expenses
|
||||||||
|
Engineering and product development
|
96
|
241
|
||||||
|
Selling and marketing
|
2,993
|
3,018
|
||||||
|
General and administrative
|
2,573
|
2,710
|
||||||
|
Total operating expenses
|
5,662
|
5,969
|
||||||
|
Loss from operations
|
(2,015
|
)
|
(2,889
|
)
|
||||
|
Other income (expense):
|
||||||||
|
Interest expense
|
(486
|
)
|
(524
|
)
|
||||
|
Interest income
|
69
|
45
|
||||||
|
Total other expense
|
(417
|
)
|
(479
|
)
|
||||
|
Net loss
|
$
|
(2,432
|
)
|
$
|
(3,368
|
)
|
||
|
Net loss per share of common stock, basic and diluted
|
$
|
(0.58
|
)
|
$
|
(0.96
|
)
|
||
|
Weighted aveage shares of common stock outstanding, basic and diluted
|
4,171,161
|
3,506,025
|
||||||
|
Three Months Ended March 31,
|
||||||||
|
2025
|
2024
|
|||||||
|
Cash flows from operating activities:
|
||||||||
|
Net loss
|
$
|
(2,432
|
)
|
$
|
(3,368
|
)
|
||
|
Adjustments to reconcile net loss ot net cash provided by (used in) operating
activities:
|
||||||||
|
Depreciation and amortization
|
1,220
|
1,249
|
||||||
|
Amortization of operating lease right-of-use assets
|
85
|
95
|
||||||
|
Amortization of deferred financing costs and debt discount
|
39
|
31
|
||||||
|
Change in allowance for credit losses
|
110
|
84
|
||||||
|
Stock-based compensation expense
|
129
|
112
|
||||||
|
Loss on disposal of property and equipment
|
34
|
13
|
||||||
|
Inventory write-off
|
-
|
141
|
||||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Account receivable
|
136
|
726
|
||||||
|
Inventories
|
(377
|
)
|
(154
|
)
|
||||
|
Prepaid expenses and other assets
|
137
|
(31
|
)
|
|||||
|
Accounts payable
|
362
|
261
|
||||||
|
Accrued expenses and other liabilities
|
169
|
(57
|
)
|
|||||
|
Deferred revenues
|
(81
|
)
|
194
|
|||||
|
Operating elase liabilities
|
(81
|
)
|
(100
|
)
|
||||
|
Net cash provided by (used in) operating activities
|
(550
|
)
|
(804
|
)
|
||||
|
Cash flows from investing activities:
|
||||||||
|
Purchase of property and equipment
|
(199
|
)
|
(725
|
)
|
||||
|
Net cash used in investing activities
|
(199
|
)
|
(725
|
)
|
||||
|
Cash flows from Financing activities:
|
||||||||
|
Payment of contingent consideration
|
-
|
(18
|
)
|
|||||
|
Net cash provided by financing activities
|
-
|
(18
|
)
|
|||||
|
Net decrease in cash, cash equivalents and restricted cash
|
(749
|
)
|
(1,547
|
)
|
||||
|
Cash, cash equivalents and restricted cash at beginning of period
|
8,595
|
8,118
|
||||||
|
Cash, cash equivalents and restricted cash at end of period
|
$
|
7,846
|
$
|
6,571
|
||||
|
Supplemental disclosure of cash flow information:
|
||||||||
|
Cash paid during the year for interest
|
$
|
450
|
$
|
480
|
||||
|
Supplemental schedule of non-cash operating, investing, and financing activities:
|
||||||||
|
Operating lease right-of-use assets obtained in exchange for operating lease
|
$
|
-
|
$
|
977
|
||||
|
Transfer of property and equipment to inventories
|
$
|
36
|
$
|
9
|
||||
|
Accrued payment of contingent consideration
|
$
|
21
|
$
|
6
|
||||