News
11/13/2018   STRATA Skin Sciences Reports Third Quarter 2018 Financial Results

STRATA Skin Sciences Reports Third Quarter 2018 Financial Results

Revenue growth momentum continues with further improvement in gross margins and positive operating cash flow for the quarter

Conference call and webcast, today at 8:30 am Eastern Time

HORSHAM, Penn., Nov. 13, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ: SSKN) (“STRATA”), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, today reported financial results for the period ended September 30, 2018.

Financial highlights of the third quarter of 2018 include the following (all comparisons are with the third quarter of 2017 and all figures are cited in GAAP, unless stated otherwise):

  • Revenues were $7.9 million, an increase of 8%
  • Recurring XTRAC® revenues were $5.6 million, or 70% of total revenues. Average revenue per device was $7,448, an increase of 4.6%
  • Gross margins were 61.4%, an increase of 6.4%
  • Dermatology Recurring Procedures Revenue margin was 68.4%, an increase of 6%
  • Cash and cash equivalents as of September 30, 2018 of $15.9 million, an increase of $1.5 million over June 30, 2018

“Just a few months into the turnaround, we are pleased to report on another quarter of solid sequential improvement and operational strength,” stated Dr. Dolev Rafaeli, President and Chief Executive Officer of STRATA. “The investments in our direct-to-consumer (DTC) advertising program and focus on our core recurring business and unique go-to-market platform contributed significantly to our improved results, highlighted by our delivering positive cash flow, which sets the foundation for further growth.”

Dr. Rafaeli continued. “We expect revenue growth to accelerate to double digits in 2019. We will also continue to seek accretive growth opportunities to augment our growing platform.” 

Reported Financial Results
Revenues for the third quarter of 2018 were $7.9 million compared with revenues for the third quarter of 2017 of $7.3 million.

Net loss for the third quarter of 2018 was $0.3 million or ($0.01) per basic and diluted common share, which included $0.2 million in interest expense and $1.3 million in depreciation and amortization expenses. This compares with net loss for the third quarter of 2017 of $13.7 million or ($3.32) per basic and diluted common share, which included an $11.8 million loss on the extinguishment of debentures, $1.3 million in interest expense and $1.6 million in depreciation and amortization.

Revenues for the nine months of 2018 were $21.9 million compared with revenues for the nine months of 2017 of $22.9 million. Net loss for the nine months of 2018 was $3.9 million or ($0.15) per basic and diluted share, which included $0.9 million in interest expense and $4.0 million in depreciation and amortization expenses. This compares with net loss for the nine months of 2017 of $17.1 million or ($5.94) per basic and diluted common share, which included an $11.8 million loss on the extinguishment of debentures, $4.3 million in interest expense and $4.8 million in depreciation and amortization expenses.

In the second quarter of 2018, the Company terminated its agreement to license the Nordlys product line. The comparability of sales and margins in the periods presented are impacted by this termination. Our overall sales for the three months ended September 30, 2018 and 2017, excluding Nordlys, were $7.8 million and $7.2 million, respectively. The sales for the nine months ended September 30, 2018 and 2017, excluding Nordlys, were $21.6 million and $22.3 million, respectively.

As of September 30, 2018, the Company had cash and cash equivalents of $15.9 million, compared with $4.1 million as of December 31, 2017.

Reconciliation of Non-GAAP Measures
To supplement the Company’s consolidated financial statements, prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP adjusted EBITDA.

The Company’s reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of our current financial performance and to provide further information for comparative purposes.

Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of the Company’s core operating results and business outlook. In addition, the Company believes non-GAAP measures enhance the comparability of results against prior periods. Reconciliation of the GAAP measure of net loss to non-GAAP measures included in this press release is as follows:

         
    For the Three Months Ended September 30,   For the Nine Months Ended September 30,
    2018   2017     2018   2017 
             
Net Loss   $ (290 ) $ (13,671 )   $ (3,868 ) $ (17,111 )
             
Adjustments:            
Depreciation/amortization   1,253   1,602     3,993   4,811  
Income taxes   (80 ) 38     -   181  
Interest expense   239   1,343     930   4,264  
             
Non-GAAP EBITDA   1,122   (10,688 )   1,055   (7,855 )
             
Stock compensation   366   63     570   136  
Change in fair value of warrants   79   (81 )   101   (77 )
Write-off of Nordlys inventory & assets -       280    -   
Loss on extinguishment of debt   -   11,799      -    11,799  
Impairment of distributors rights agreement -       (11 )  -   
             
Non-GAAP adjusted EBITDA   $ 1,567   $ 1,093     $ 1,995   $ 4,003  
             


STRATA Financial Metrics

(in thousands except for Average Recurring Revenue per Consigned Systems and Systems Placed under Recurring Revenue Model)
  Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Dermatology recurring procedures revenue $   5,556   $   5,971   $   5,525   $   5,588   $   4,498   $   5,167   $   5,556  
Dermatology procedures equipment revenue $   1,537   $   2,500   $   1,751   $   3,008   $   1,968   $   2,366   $   2,336  
Systems placed under dermatology procedure recurring revenue model (installed base)   791     795     776     753     746     746     746  
Average recurring revenue per consigned system per quarter $     7,024   $     7,511   $     7,120   $     7,421   $     6,029   $     6,926   $     7,448  
Dermatoloty recurring procedures segment margin percent   63.2 %   69.1 %   62.3 %   56.7 %   56.7 %   63.6 %   68.4 %
Total Company gross margin percent, including Nordlys inventory and fixed asset write off   61.5 %   62.5 %   55.0 %   49.8 %   49.0 %   53.6 %   61.4 %
 
The Dermatology procedures equipment revenue includes $0, $391, $118, $684, $218, $59, $57 for the quarters represented above, respectively, in the cancelled Nordlys product line.
 


STRATA previously announced the scheduling of a conference call with investors to review the results of the third quarter. Following is the pertinent information for accessing that call. 

Conference Call Detail:

Date: Tuesday, November 13
Time: 8:30 am Eastern Time
Toll Free: 888-204-4368
International: 323-994-2082
Israel-local 1809-212-909
Passcode: 3967099
Webcast: www.strataskinsciences.com

About STRATA Skin Sciences, Inc.
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation.

The Company’s proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases, which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatments to vitiligo patients.

STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.

The XTRAC® business has used this proven DTC model to grow its domestic dermatology partner network to over 740 clinics, with a worldwide installed base of over 2,000 devices. The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC®, within a 10-mile radius of their house. The Company is a leader in dermatology in-clinic business generation for its partners. 

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to generate the growth in its core business, the Company’s ability to develop social media marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all these forward-looking statements may prove to be incorrect or unreliable. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release. The Company urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:

Matthew Hill, Chief Financial Officer Jeremy Feffer, Managing Director
STRATA Skin Sciences, Inc. LifeSci Advisors, LLC
215-619-3200 212-915-2568
ir@strataskin.com jeremy@lifesciadvisors.com


STRATA SKIN SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

  September 30, 2018   December 31, 2017
  (unaudited)    
ASSETS      
Current assets:      
Cash and cash equivalents $ 15.888   $ 4,069
Accounts receivable, net 2,728   3,141
Inventories 2,488   3,009
Other current assets 670   533
Property and equipment, net 5,698   7,703
Goodwill and intangible assets, net 18,670   20,128
Other non-current assets, net 48   48
Total assets $ 46,190   $ 38,631
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
Long-term debt and other notes payable $ 7,362   $ 10,597
Accounts payable and accrued current liabilities 4,464   4,637
Current portion of deferred revenues 327   291
Deferred tax liability 392   414
Other long-term liabilities 268   447
Stockholders' equity 33,377   22,245
Total liabilities and stockholders’ equity $ 46,190   $ 38,631
       


STRATA SKIN SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)

    For the Three Months Ended
September 30,
     2018     2017 
         
Revenues   $ 7,892     $ 7,285  
         
Cost of revenues   3,049     3,276  
         
Gross profit   4,843     4,009  
         
Operating expenses:        
Engineering and product development   224     411  
Selling and marketing   2,487     2,492  
General and administrative   2,184     1,678  
    4,895     4,581  
         
Operating loss before other income (expense), net   (52 )   (572 )
         
Other income (expense), net:        
Interest expense, net   (239 )   (1,343 )
Change in fair value of warranty liability   (79 )   81  
Loss on extinguishment of debt     -     (11,799 )
    (318 )   (13,061 )
         
Loss before income taxes   (370 )   (13,633 )
         
Income tax benefit (expense)   80     (38 )
         
Net loss   $ (290 )   $ (13,671 )
         
Net loss per common share - basic and diluted   $ (0.01 )   $ (3.32 )
         
Shares used in computing net loss per basic and diluted common share   29,912,827     2,477,743  
         
Net loss per Preferred C share - basic and diluted   $ (3.23 )   $ (1,235.43 )
         
Shares used in computing net loss per basic and diluted Preferred C share   10,049     4,400  
             


STRATA SKIN SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)

    For the Nine Months Ended
September 30,
     2018     2017 
         
Revenues   $ 21,982      $ 22,852  
         
Cost of revenues   9,842     9,182  
         
Gross profit   12,050     13,670  
         
Operating expenses:        
Engineering and product development   831     1,309  
Selling and marketing   7,737     8,312  
General and administrative   6,319     4,999  
    14,887     14,620  
         
Operating loss before other income (expense), net   (2,837 )   (950 )
         
Other income (expense), net:        
Interest expense, net   (930 )   (4,264 )
Change in fair value of warrant liability   (101 )   77  
Loss on extinguishment of debt   -     (11,799 )
Other income, net   -     6  
    (1,031 )   (15,980 )
         
Loss before income taxes   (3,868 )   (16,930 )
         
Income tax expense   -     (181 )
         
Net loss   $ (3,868 )   $ (17,111 )
         
Net loss per common share – basic and diluted:   $ (0.15 )   $ (5.94 )
         
Shares used in computing net loss per basic and diluted share:   16,099,752     2,328,274  
         
Net loss per Preferred C share – basic and diluted:   $ (57.58 )   $ (2,208.96 )
         
Shares used in computing net loss per basic and diluted Preferred C share   23,872     1,483  
             


STRATA SKIN SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)

  For the Nine Months Ended
September 30,
  2018    2017 
Cash Flows From Operating Activities:      
Net loss ($3,868 )   ($17,111 )
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation and amortization 3,993     4,811  
Provision for doubtful accounts 53     58  
Loss on disposal of property and equipment 503     -  
Gain on cancellation of distributor rights agreement -     (40 )
Impairment of intangible asset and liability (11 )   23  
Stock-based compensation 570     136  
Deferred tax provision (22 )   180  
Amortization of debt discount 44     2,344  
Amortization of deferred financing costs 79     171  
Loss on extinguishment of debt -     11,799  
Change in fair value of warrant liability 101     (77 )
Changes in operating assets and liabilities:      
Accounts receivable 361     130  
Inventories 521     (716 )
Prepaid expenses and other assets (137 )   406  
Accounts payable (614 )   71  
Other accrued liabilities 423     (162 )
Other liabilities (3 )   108  
Deferred revenues (198 )   115  
Net cash provided by operating activities 1,795     2,246  
       
Cash Flows From Investing Activities:      
Lasers placed-in-service, net (1,254 )   (1,450 )
Purchases of property and equipment, net (6 )   (321 )
Payments on distributor rights liability (23 )   (115 )
Net cash used in investing activities (1,283 )   (1,886 )
       
Cash Flows From Financing Activities:      
Proceeds from issuance of common stock 14,664     -  
Repayments of long-term debt (3,000 )   (857 )
Payments on notes payable (357 )   (304 )
Net cash provided by (used in) financing activities 11,307     (1,161 )
       
Net increase (decrease) in cash and cash equivalents 11,819     (801 )
Cash and cash equivalents, beginning of period 4,069     3,928  
       
Cash and cash equivalents, end of period $ 15,888      $ 3,127  

 

STRATA Skin Sciences Logo.jpg

STRATA Skin Sciences, Inc.

STRATA Skin Sciences to Host 3rd Quarter 2018 Financial Results and Business Update Conference call on Tuesday, November 13, 2018

HORSHAM, Pa., Oct. 30, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ: SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, will release third quarter financial results on Tuesday, November 13, before the market opens. STRATA Skin Sciences President and Chief Executive Officer, Dr. Dolev Rafaeli, and Matthew C. Hill, Chief Financial Officer, will host a conference call at 8:30 am Eastern Time to review the Company’s progress.

Conference Call Details:

Date:   Tuesday, November 13
Time:   8:30 am Eastern Time
Toll Free:   888-204-4368
International:   323-994-2082
Israel:   1809 212 909
Passcode:   3967099
Webcast:   www.strataskinsciences.com

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation.

The Company’s proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatments to vitiligo patients.

STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.

The XTRAC® business has used this proven DTC model to grow its domestic dermatology partner network to over 740 clinics, with a worldwide installed base of over 2,000 devices. The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC®, within a 10-mile radius of their house. The Company is a leader in dermatology in-clinic business generation for its partners.

Investor Contacts:

Matthew C. Hill, Chief Financial Officer   Jeremy Feffer, Managing Director  
STRATA Skin Sciences, Inc.   LifeSci Advisors, LLC  
215-619-3200   212-915-2568  
ir@strataskin.com   Jeremy@LifeSciAdvisors.com  

STRATA Skin Sciences Logo.jpg

STRATA Skin Sciences, Inc.

STRATA Skin Sciences to Present at Dawson James Securities 4th Annual Small Cap Growth Conference

HORSHAM, Pa., Oct. 17, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences (NASDAQ: SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today announced that Dr. Dolev Rafaeli, STRATA’s Chief Executive Officer, will present a corporate overview at the Dawson James Securities 4th Annual Small Cap Growth Conference at the Wyndham Grand Hotel in Jupiter, Florida on Tuesday, October 30th at 11:30 am Eastern Time.

Dr. Rafaeli’s participation will not be webcast, but the Company’s latest investor presentation will be available in the investor’s section of the Company’s website at www.strataskin.com

About STRATA Skin Sciences, Inc.

STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation.

The Company’s proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases, which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatments to vitiligo patients.

STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.

The XTRAC® business has used this proven DTC model to grow its domestic dermatology partner network to over 740 clinics, with a worldwide installed base of over 2,000 devices.  The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC®, within a 10 mile radius of their house. The Company is a leader in dermatology in-clinic business generation for its partners.    

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to generate the growth in its core business, the Company’s ability to develop social media marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

   
Investor Contacts:  
Matthew Hill, Chief Financial Officer Jeremy Feffer, Managing Director
STRATA Skin Sciences, Inc. LifeSci Advisors, LLC
215-619-3200 212-915-2568
ir@strataskin.com  jeremy@lifesciadvisors.com
   

 

STRATA Skin Sciences Logo.jpg

STRATA Skin Sciences, Inc.

STRATA Skin Sciences Announces Launch of the XTRAC® S3™

HORSHAM, Pa., Oct. 10, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences (NASDAQ: SSKN) (“STRATA”), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today announced the launch of the new XTRAC S3 308nm Laser at the American Society for Dermatologic Surgery meeting on October 11, 2018 at the JW Marriott in Phoenix Arizona.

The next generation XTRAC, the S3, is smaller, faster and smarter. The smaller footprint with a vertical configuration saves valuable floor space, which is at a premium in dermatology offices. Speed drives the S3, which is 20% faster than legacy devices, enabling dermatology partner clinics to treat more patients in the same timeframe. Finally, the S3 has a new smart user interface that exclusively pairs with the Optimal Therapeutic Dose approach, allowing the physician to maximize results in the most efficient manner.

The XTRAC S3 first launch site will be with Tareen Dermatology in the Minneapolis area. Dr. Mohiba Tareen, medical director for Tareen Dermatology, National Dermatology expert for WebMD and an Adjunct Voluntary Faculty at the University of Minnesota, stated, “Since switching to XTRAC lasers, our patients have experienced life-changing improvements with its treatment of their psoriasis, vitiligo and eczema, and this drastic improvement is achieved in significantly fewer treatments. Tareen Dermatology is excited to offer our patients the newest, fastest and the most effective available technology; the new XTRAC S3 is truly state of the art.” Dr. Tareen continued, “We appreciate our partnership with STRATA, as it allows us to maximize our utilization though their patient awareness programs and we look forward to expansion into additional offices.”

Dr. Dolev Rafaeli, STRATA’s Chief Executive Officer, stated, “The launch of the new XTRAC S3 device is an important milestone for STRATA, as a first step in a new generation of devices planned to target the specific needs of our partner clinics in the worldwide market. The new device offers a smaller footprint, by as much as 50%, delivers faster treatments, which coupled with our newly available MMD™ diagnostic tip will enhance the patient experience, and offers our providers greater control over treatment effectiveness through the newly designed user interface. The XTRAC S3 platform of devices will allow STRATA to lower material costs and we look forward to our domestic and global deployment of this new generation of excimer lasers which will widen the gap between our current market leading technology and others.” 

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation.

The Company’s proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatments to vitiligo patients.

STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.

The XTRAC® business has used this proven DTC model to grow its domestic dermatology partner network to over 740 clinics, with a worldwide installed base of over 2,000 devices. The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC®, within a 10-mile radius of their house. The Company is a leader in dermatology in-clinic business generation for its partners.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including the Company’s ability to generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations and research and development activities beginning at any time in the future, the public’s reaction to the Company’s new advertisements and marketing campaigns under development, and the Company’s ability to build a leading franchise in dermatology and aesthetics, the Company’s ability to grow revenues and sustain that growth, and the ability to attract new patients and grow revenue for our clients and the Company based on new technology are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s 10K filed with the SEC on March 30, 2018.

Investor Contacts:
Matthew Hill, Chief Financial Officer                                    Jeremy Feffer, Managing Director
STRATA Skin Sciences, Inc.                                                 LifeSci Advisors, LLC
215-619-3200                                                                        212-915-2568
ir@strataskin.com                                                                 jeremy@lifesciadvisors.com

STRATA Skin Sciences Logo.jpg

STRATA Skin Sciences, Inc.

STRATA Skin Sciences Announces Completion of a Clinical Study and the First Commercial Account for its Multi Micro Dose™ Diagnostic Tip Accessory for the XTRAC® 308nm Excimer Laser

HORSHAM, Pa., Oct. 01, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences (NASDAQ: SSKN) (“STRATA”), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today announced the completion of a multi-center clinical study investigating the efficiency and efficacy of its FDA cleared Multi-Micro Dose™ (“MMD”) diagnostic tip accessory for the proprietary XTRAC® 308nm excimer laser.

Three separate clinics utilized the patent-pending MMD tip, in conjunction with the XTRAC laser, to filter the narrow band UVB light at delivery in order to calculate and customize the maximum non-blistering dose for each of the participating patients in the study.

The MMD tip simultaneously applies multiple level doses of energy to a specific area of a patient’s psoriatic plaque, thereby identifying the maximum sub-blistering energy dose for a particular treatment zone. Utilizing the results from these test patches, the physician can design the optimal therapeutic dose treatment for each patient. This proprietary process was trademarked by STRATA as the Optimal Therapeutic Dose (OTD) and is intended to provide faster patient outcomes and greater patient satisfaction. The clinical study was designed to measure increased efficacy and determine the minimum number of treatment sessions necessary to achieve desired clinical endpoints.

Following the OTD process, the physician determines the maximum non-blistering dose for the patient’s psoriatic plaque. Data have shown that higher doses of the XTRAC treatment achieved PASI-75 clearance in as little as two to four weekly treatments, as compared to an average of 6.2 treatments, shown in previously published studies at lower doses.

The statistical analysis of the clinical study results, based on the XTRAC treatment protocol which utilized the Optimal Therapeutic Dose (OTD), revealed the following findings:

  • 92% of the included participants responded to treatment by achieving a reduction in mPASI score of 75% or more
  • As compared to the current average of 16-20 treatments conducted with NB-UVB 308nm devices, the treatment produced statistically significant mPASI improvement by the second treatment. It took an average of four sessions for patients to reduce mPASI by 50% or more relative to baseline
  • Patients were followed post treatment and have maintained reduction in mPASI score of 50% or more for 60 days
  • Further, statistical survival models predict mPASI scores to stay below 50% of baseline for 78 days

The company anticipates the full clinical study report to be submitted for publication.

Dr. Ben Lockshin, former Chair of the Research Committee and on the Board of Directors for the National Psoriasis Foundation (NPF) and a principal investigator on this study, stated, “I am pleased to see how quickly my patients can achieve meaningful improvement in just a few treatments. I believe this will greatly increase patient satisfaction.”

Dr. Lockshin, has engaged with the company to become the first commercial site providing OTD XTRAC treatments using the MMD tip, and further commented, “I believe integrating the OTD approach will allow me to provide the safe and effective treatment that reduces the time commitment and cost for my patients while achieving the clinical results we have come to expect with XTRAC.”

Dr. Dolev Rafaeli, STRATA’s Chief Executive Officer, noted, “Introducing the Optimal Therapeutic Dose™ treatment protocol and making it commercially available is a very important milestone for STRATA and its partner clinics. This new protocol will provide faster patient outcomes, greater patient satisfaction, lower costs for payers and patients alike, and increased patient traffic to our partner clinics. This dynamic combination of MMD’s proprietary technology and the OTD protocol is exclusively available to our physician partners, differentiating their clinical delivery and adding to the technological superiority of the XTRAC platform as compared with all other available treatment modalities. We look forward to the expansion of the commercial use of the MMD diagnostic tip across our partner network of over 1,000 providers.”

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation. Nothing in this press release is intended to indicate that the FDA has cleared the MMD device for marketing or that the sought after indications for use will be allowed by the FDA.

The Company’s proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatments to vitiligo patients.

STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.

The XTRAC® business has used this proven DTC model to grow its domestic dermatology partner network to over 740 clinics, with a worldwide installed base of over 2,000 devices.  The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC®, within a 10-mile radius of their house.  The Company is a leader in dermatology in-clinic business generation for its partners.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including the Company’s ability to generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations and research and development activities beginning at any time in the future, the public’s reaction to the Company’s new advertisements and marketing campaigns under development, and the Company’s ability to build a leading franchise in dermatology and aesthetics, the Company’s ability to grow revenues  and sustain that growth, and the Company’s ability to secure FDA 510k clearance for the OTD device are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s 10K filed with the SEC on March 30, 2018.

Investor Contacts:

Matthew Hill, Chief Financial Officer   Jeremy Feffer, Managing Director
STRATA Skin Sciences, Inc.   LifeSci Advisors, LLC
215-619-3200   212-915-2568
ir@strataskin.com   jeremy@lifesciadvisors.com

 

STRATA Skin Sciences Logo.jpg

STRATA Skin Sciences, Inc.

STRATA Skin Sciences to Participate in Ladenburg Thalmann 2018 Healthcare Conference

HORSHAM, Pa., Sept. 24, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences (NASDAQ: SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today announced that Dr. Dolev Rafaeli, STRATA’s Chief Executive Officer, will present a corporate overview at the Ladenburg Thalmann 2018 Healthcare Conference at the Sofitel New York Hotel at 45 West 44th Street, New York on Tuesday, October 2nd at 8:30 am Eastern Time.

Dr. Rafaeli’s participation will not be webcast, but the Company’s latest investor presentation will be available in the investor’s section of the Company’s website at www.strataskin.com

About STRATA Skin Sciences, Inc.
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation.

The Company’s proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases, which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatments to vitiligo patients.

STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.

The XTRAC® business has used this proven DTC model to grow its domestic dermatology partner network to over 740 clinics, with a worldwide installed base of over 2,000 devices.  The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC®, within a 10 mile radius of their house. The Company is a leader in dermatology in-clinic business generation for its partners.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to generate the growth in its core business, the Company’s ability to develop social media marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:  
Matthew Hill, Chief Financial Officer Jeremy Feffer, Managing Director
STRATA Skin Sciences, Inc. LifeSci Advisors, LLC
215-619-3200 212-915-2568
ir@strataskin.com  jeremy@lifesciadvisors.com
   

STRATA Skin Sciences Logo.jpg

STRATA Skin Sciences, Inc.

STRATA Skin Sciences to Participate in Panel Discussion at The MedTech Conference

HORSHAM, Pa., Sept. 17, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences (NASDAQ: SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today announced that Dr. Dolev Rafaeli, STRATA’s Chief Executive Officer, will participate in a panel discussion, titled “Alternative to the Exit: Start-ups building long-term value” at The MedTech Conference at the Pennsylvania Convention Center in Philadelphia on Monday, September 24th at 8:30 am Eastern Time

Dr. Rafaeli’s participation will not be webcast, but the Company’s latest investor presentation is available in the investor’s section of the Company’s website at www.strataskin.com

About STRATA Skin Sciences, Inc.
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation.

The Company’s proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases, which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatments to vitiligo patients.

STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.

The XTRAC® business has used this proven DTC model to grow its domestic dermatology partner network to over 740 clinics, with a worldwide installed base of over 2,000 devices.  The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC®, within a 10 mile radius of their house. The Company is a leader in dermatology in-clinic business generation for its partners.    

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to generate the growth in its core business, the Company’s ability to develop social media marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:  
Matthew Hill, Chief Financial Officer Jeremy Feffer, Managing Director
STRATA Skin Sciences, Inc. LifeSci Advisors, LLC
215-619-3200 212-915-2568
ir@strataskin.com jeremy@lifesciadvisors.com

STRATA Skin Sciences Logo.jpg

STRATA Skin Sciences, Inc.

STRATA Skin Sciences to Participate in H.C. Wainwright’s 20th Annual Global Investment Conference

HORSHAM, Pa., Aug. 27, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences (NASDAQ: SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today announced that Dr. Dolev Rafaeli, STRATA’s Chief Executive Officer, will present a corporate overview at the H. C. Wainwright 20th Annual Global Investment Conference at the St. Regis New York Hotel at Two E 55th Street, New York on Thursday, September 6th at 5:05 pm Eastern Time.

An audio webcast of the presentation will be available on the Investor section of the STRATA website at www.strataskinsciences.com. A replay of the presentation will be available on the website for 90 days after the live webcast.

About STRATA Skin Sciences, Inc.
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation.

The Company’s proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases, which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatments to vitiligo patients.

STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.

The XTRAC® business has used this proven DTC model to grow its domestic dermatology partner network to over 740 clinics, with a worldwide installed base of over 2,000 devices.  The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC®, within a 10 mile radius of their house.  The Company is a leader in dermatology in-clinic business generation for its partners.    

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to generate the growth in its core business, the Company’s ability to develop social media marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:
Matthew Hill, Chief Financial Officer Jeremy Feffer, Managing Director
STRATA Skin Sciences, Inc. LifeSci Advisors, LLC
215-619-3200 212-915-2568
ir@strataskin.com jeremy@lifesciadvisors.com


 

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences Announces Strategic Agreement with a Large Private Equity Backed Group of Dermatology Clinics

Agreement will add to group’s business offering and enhance the individual clinics’ abilities to offer proven and cost-effective treatments to psoriasis, vitiligo and atopic dermatitis patients

HORSHAM, Pa., Aug. 20, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ: SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, today announced the signing of a strategic marketing agreement with one of the nations’ largest private equity backed dermatology groups.

The agreement allows for deployment across the group’s network of dozens of clinics to place the XTRAC® excimer laser and to utilize STRATA’s unique XTRAC value-add business model. The placement is on a pay per use basis with no upfront cost to the practices. STRATA provides clinical training, drives XTRAC utilization with direct to consumer (DTC) advertisement, and supports patients with advocacy. 

The agreement will be implemented across the group’s network, with the first 10 clinics expected to be deployed before the end of 2018.

Dr. Dolev Rafaeli, President and Chief Executive Officer of STRATA, commented, “We are pleased to announce this strategic relationship, which we believe will have significant benefits for both STRATA and the dermatology practice group. STRATA’s unique business model offers physician practices unequalled business opportunities, while providing best in class technology to their patients. STRATA’s field service team supports our partner physicians with unparalleled device up time. As part of our Physician Partner program, our clinical support team trains the physician’s clinical staff, as well as subsequent hires, in the proper use of the XTRAC. In addition, we currently offer a Patient Assistance Program to help offset some of the patients’ financial responsibility.”

Dr. Rafaeli continued, “Furthermore, our reimbursement support team coordinates patient insurance coverage with the various payers, before that patient even steps foot in the clinic and continues through the patient’s completion of the therapy. STRATA’s DTC advertising program drives patient traffic to our partner physician clinics. We help schedule new patients’ visits to make the process as simple as possible for both patient and provider. STRATA has a proven record of being able to offer 90% of DTC patients an introduction to XTRAC locations prescribing a reimbursable solution within 10 miles of their home.”

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation.

The Company’s proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases, which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatments to vitiligo patients.

STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.

The XTRAC business has used this proven DTC model to grow its domestic dermatology partner network to over 740 clinics, with a worldwide installed base of over 2,000 devices. The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC, within a 10 mile radius of their house. The Company is a leader in dermatology in-clinic business generation for its partners.

Safe Harbor

This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including the Company’s ability to sell products to U.S. Dermatology clinics, generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations beginning at any time in the future, the Company’s ability to license or acquire new products, the public’s reaction to the Company’s new advertisements and marketing campaign, access to capital markets, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:  
Matthew Hill, Chief Financial Officer  Jeremy Feffer, Managing Director 
STRATA Skin Sciences, Inc.    LifeSci Advisors, LLC
215-619-3200            212-915-2568
ir@strataskin.com  jeremy@lifesciadvisors.com 

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences Reports Second Quarter 2018 Financial Results

Conference call and webcast, today at 4:30 pm Eastern Time

HORSHAM, Pa., Aug. 13, 2018 (GLOBE NEWSWIRE) -- (NASDAQ: SSKN) STRATA Skin Sciences, Inc. (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, today reported financial results for the quarter ended June 30, 2018.

Financial highlights of the second quarter of 2018 include the following (all comparisons are with the first quarter of 2018 and all figures are quoted in GAAP, unless stated otherwise):

  • Revenues were $7.5 million, an increase of 17% 
  • Recurring XTRAC® revenues were $5.2 million, or 69% of total revenues, an increase of 15%
  • International XTRAC revenues were $2.1 million, an increase of 57%
  • Gross profit of $4 million
  • Gross margins were 54%, an increase of 5%
  • Dermatology Recurring Procedures Revenue margin of 63.6%, an increase of 6.9%
  • Net loss of $1.4 million or ($0.06) per basic and diluted common share, compared with a net loss of $2.2 million or ($0.13) per basic and diluted common share and ($21.60) per series C preferred share
  • Net loss includes $.6 million in severance and consulting and $.1 related to the write down of the discontinued Nordlys product line
  • Installed base of XTRAC recurring revenue systems in the U.S. is 746 units
  • Cash and cash equivalents as of June 30, 2018 of $14.4 million 

“We are very pleased with the results of the first full quarter of this turnaround,” stated Dr. Dolev Rafaeli, President and Chief Executive Officer of STRATA. “The recent financing has allowed us to reboot our investment in our direct to consumer (“DTC”) advertising program which started driving higher recurring revenue and margins in sequential quarters.”

Dr. Rafaeli continued, “We also experienced improvements in other key operational performance indicators as our quarterly average revenue per consigned domestic XTRAC system has increased from $6,000 to $6,900 and scheduled patient appointments increased sequentially from 250 in the first quarter of 2018 to 870 in the second quarter. With advertising efficiencies far exceeding our expectations, we anticipate that our marketing team will be able to double that number in the upcoming third quarter and to be able to achieve 2,000 appointments by the fourth quarter.”

“While the investment in our DTC program carries delayed fruits, as the resulting revenues build over the future quarters, that investment is what differentiates us strategically. Our renewed focus on generating value-add for our partner clinics resulted in a major turnaround this quarter as we successfully ended our trend of six consecutive quarterly declines in our installed base, and we anticipate that it will grow once again by the end of this year,” said Dr. Rafaeli. “Our 2018 results as compared to the comparable periods in 2017 have been impacted by the lower DTC spending in the prior quarters. In the turnaround we can expect to see higher recurring revenue as we increase the DTC spend.”

“We are excited with this quarter’s results – indicating that the first steps of our strategic turnaround are already driving improved performance. Moreover, we expect projected investments and growth in patient appointments to deliver increased recurring revenue growth, system productivity, as well as higher gross margins in the coming quarters,” Dr. Rafaeli concluded. 

Reported Financial Results
Revenues for the second quarter of 2018 were $7.5 million compared with revenues for the second quarter of 2017 of $8.5 million.

Net loss for the second quarter of 2018 was $1.4 million or ($0.06) per basic and diluted common share and ($21.60) per series C preferred share, which included $0.3 million in interest expense, $1.3 million in depreciation and amortization expenses. This compares with net loss for the second quarter of 2017 of $1.2 million or ($0.52) per basic and diluted common share, which included $1.6 million in interest expense and $1.7 million in depreciation and amortization expenses and $0.1 million for income tax expense.

Revenues for the six months of 2018 were $14.0 million compared with revenues for the six months of 2017 of $15.6 million. Net loss for the six months of 2018 was $3.6 million or ($0.17) per basic and diluted share and ($64.69) per series C preferred share, which included $0.7 million in interest expense, $2.7 million in depreciation and amortization expenses and $0.1 million for income tax expense. This compares with net loss for the six months of 2017 of $3.4 million or ($1.53) per basic and diluted common share, which included $2.9 million in interest expense and $3.2 million in depreciation and amortization expenses and $0.1 million for income tax expense.

As of June 30, 2018, the Company had cash and cash equivalents of $14.4 million, compared with $4.1 million as of December 31, 2017.

Non-GAAP Measures
To supplement the Company’s consolidated financial statements, prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP adjusted EBITDA.

The Company’s reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of our current financial performance and to provide further information for comparative purposes.

Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of the Company’s core operating results and business outlook. In addition, the Company believes non-GAAP measures enhance the comparability of results against prior periods. Reconciliation to the most directly comparable GAAP measure of all non-GAAP measures included in this press release is as follows:

           
      For the Three Months Ended June 30,   For the Six Months Ended June 30,
      2018    2017      2018   2017
                   
Net Loss   $ (1,355 )   $ (1,205 )   $ (3,578 )   $ (3,440 )
                   
Adjustments:                
  Depreciation/amortization*     1,327       1,666       2,741       3,209  
  Income taxes     40       73       80       143  
  Interest expense     328       1,575       691       2,921  
                   
Non-GAAP EBITDA     340       2,109       (66 )     2,833  
                   
  Stock compensation     184       22       203       73  
  Change in fair value of warrants     23       (128 )     22       4  
  Write-off of Nordlys inventory & assets     280       -       280       -  
  Impairment of distributors rights agreement     (237 )     -       (11 )     -  
                   
Non-GAAP adjusted EBITDA   $ 590     $ 2,003     $ 428     $ 2,910  
                                 

* Includes depreciation of lasers placed-in-service- of $898 and $1,856 for the three and six months ended June 30, 2018 and 2017, respectively and $1,080 and $2,151 for the three and six months ended June 30, 2018 and 2017.

 
STRATA Financial Metrics
(in thousands except for Average Recurring Revenue per Consigned system and Systems Placed Under Recurring Revenue Model)
             
  Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
Dermatology recurring procedures revenue $    5,556   $    5,971   $    5, 525   $    5,588   $    4,498   $    5,167  
Dermatology procedures equipment revenue $    1,537   $    2,500   $    1,751   $    3,008   $    1,968   $    2,366  
Systems placed under dermatology procedure recurring revenue model   791     795     776     753     746     746  
Average recurring revenue per consigned system per quarter $    7,024   $    7,511   $    7,120   $    7,421   $    6,029   $    6,926  
Dermatology recurring procedures segment margin percent   63.2 %   69.1 %   62.3 %   50.3 %   56.7 %   63.6 %
Total Company gross margin percent, including Nordlys inventory and fixed asset write off   61.5 %   62.5 %   55.0 %   49.8 %   49.0 %   53.6 %
 
The Dermatology procedures equipment revenue includes $0, $391, $118, $684, $218, $59 for the quarters represented above, respectively, in the cancelled Nordlys product line. Q2 2018 margins excluding the Nordlys business would have been 57% after adjusting for the $280 writedown of Nordlys assets in connection with the termination of the agreement.
 

STRATA previously announced the scheduling of a conference call with investors to review the results of the second quarter. Following is the pertinent information for accessing that call.

Conference Call Detail:

Date:   Monday, August 13
Time:   4:30 pm Eastern Time
Toll Free:   888-254-3590
International:   323-994-2093
Israel-local   1809-212-883
Passcode:   9279759
Webcast:   www.strataskinsciences.com
     

About STRATA Skin Sciences, Inc.
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation.

The Company’s proprietary XTRAC excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases, which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatments to vitiligo patients.

STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.

The XTRAC business has used this proven DTC model to grow its domestic dermatology partner network to over 740 clinics, with a worldwide installed base of over 2,000 devices. The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC, within a 10 mile radius of their house. The Company is a leader in dermatology in-clinic business generation for its partners.   

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to generate the growth in its core business, the Company’s ability to continue to monetize the remaining MelaFind assets, develop social media marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

   
Investor Contacts:  
Matthew Hill, Chief Financial Officer    Jeremy Feffer, Managing Director
STRATA Skin Sciences, Inc.    LifeSci Advisors, LLC
215-619-3200        212-915-2568
ir@strataskin.com  jeremy@lifesciadvisors.com


 
STRATA SKIN SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
   
  June 30, 2018   December 31,
2017
  (unaudited)    
ASSETS      
Current assets:      
  Cash and cash equivalents $ 14,445   $ 4,069
Accounts receivable, net   2,574     3,141
  Inventories   2,413     3,009
  Other current assets   828     533
Property and equipment, net   6,271     7,703
Goodwill and intangible assets, net   19,073     20,128
Other non-current assets, net   48     48
Total assets $ 45,652   $ 38,631
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
  Long-term debt and other notes payable $ 7,372   $ 10,597
  Accounts payable and accrued current liabilities   3,807     4,637
  Current portion of deferred revenues   393     291
Deferred tax liability   493     414
Other long-term liabilities   287     447
Stockholders' equity   33,300     22,245
Total liabilities and stockholders’ equity $ 45,652   $ 38,631


 
STRATA SKIN SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands, except share and per share amounts)
(Unaudited)
 
    For the Three Months Ended
June 30,
      2018       2017  
         
Revenues   $ 7,533     $ 8,471  
         
Cost of revenues     3,499       3,173  
         
Gross profit     4,034       5,298  
         
Operating expenses:        
Engineering and product development     269       423  
Selling and marketing     2,378       2,846  
General and administrative     2,333       1,720  
      4,980       4,989  
         
Operating loss before other income (expense), net     (946 )     309  
         
Other income (expense), net:        
Interest expense, net     (328 )     (1,575 )
Change in fair value of warranty liability     (23 )     128  
Other income (expense), net     (18 )     6  
      (369 )     (1,441 )
         
Loss before income taxes     (1,315 )     (1,132 )
         
Income tax expense     (40 )     (73 )
         
Net loss   ($ 1,355 )   ($ 1,205 )
         
Net loss per common share - basic and diluted   ($ 0.06 )   ($ 0.52 )
         
Shares used in computing net loss per basic and diluted common share     13,734,384       2,327,041  
         
Net loss per Preferred C share - basic and diluted   ($ 21.60 )   $  -  
         
Shares used in computing net loss per basic and diluted Preferred C share     25,847        

-
 


 
STRATA SKIN SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands, except share and per share amounts)
(Unaudited)
 
    For the Six Months Ended
June 30,
      2018       2017  
         
Revenues   $ 13,999      $ 15,568  
         
Cost of revenues     6,793       5,906  
         
Gross profit     7,206       9,662  
         
Operating expenses:        
Engineering and product development     607       898  
Selling and marketing     5,249       5,821  
General and administrative     4,136       3,321  
      9,992       10,040  
         
Operating loss before other income (expense), net     (2,786 )     (378 )
         
Other income (expense), net:        
Interest expense, net     (691 )     (2,921 )
Change in fair value of warrant liability     (22 )     (4 )
Other income, net     1       6  
      (712 )     (2,919 )
         
Loss before income taxes     (3,498 )     (3,297 )
         
Income tax expense     (80 )     (143 )
         
Net loss   ($ 3,578 )   ($  3,440 )
         
Net loss per common share – basic and diluted:   ($ 0.17 )   ($ 1.53 )
         
Shares used in computing net loss per basic and diluted share:     9,078,741       2,252,301  
         
Net loss per Preferred C share – basic and diluted:   ($ 64.69 )   $  -  
         
Shares used in computing net loss per basic and diluted Preferred C share      

30,897
       

-
 


 
 STRATA SKIN SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
 
  For the Six Months Ended
June 30,
    2018       2017  
Cash Flows From Operating Activities:      
Net loss ($ 3,578 )   ($ 3,440 )
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation and amortization   2,741       3,209  
Provision for doubtful accounts   (49 )     22  
Loss on disposal of property and equipment   411       -  
Impairment of intangible asset and liability   (11 )     -  
Stock-based compensation   203       73  
Deferred tax provision   80       120  
Amortization of debt discount   39       1,618  
Amortization of deferred financing costs   42       115  
Change in fair value of warrant liability   22       4  
Changes in operating assets and liabilities:      
Accounts receivable   710       (147 )
Inventories   596       (670 )
Prepaid expenses and other assets   (296 )     243  
Accounts payable   (895 )     403  
Other accrued liabilities   (206 )     (115 )
Other liabilities   255       84  
Deferred revenues   (132 )     178  
Net cash (used in) provided by operating activities   (68 )     1,697  
       
Cash Flows From Investing Activities:      
Lasers placed-in-service, net   (885 )     (1,205 )
Purchases of property and equipment, net   (6 )     (206 )
Payments on distributor rights liability   (23 )     (75 )
Net cash used in investing activities   (914 )     (1,486 )
       
Cash Flows From Financing Activities:      
Proceeds from issuance of common stock   14,664       -  
Payments on notes payable   (3,306 )     (201 )
Net cash provided by (used in) financing activities   11,358       (201 )
       
Net increase in cash and cash equivalents   10,376       10  
Cash and cash equivalents, beginning of period   4,069       3,928  
       
Cash and cash equivalents, end of period $ 14,445     $ 3,938  
       
Supplemental information:      
Cash paid for interest $ 691     $ 1,133  
       
Supplemental information of non-cash investing and financing activities:    
Conversion of senior secured convertible debentures into common stock $  -     $  262  
Acquisition of distributor rights asset and license liability $  -     $  900  

 

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences Announces FDA Granted 510(k) Clearance for the Multi Micro Dose™ Tip for its XTRAC® 308nm Excimer Laser

MMD Tip Offers Faster Patient Outcomes at Uncompromised Safety, Higher Patient Retention and Lower Costs for Patient and Payer

HORSHAM, Pa., Aug. 06, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences (NASDAQ: SSKN) (“STRATA”), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today announced that the U.S. Food and Drug Administration (“FDA”) has granted a 510(k) clearance to the Company for its Multi-Micro Dose™ (“MMD”) tip accessory for its proprietary XTRAC® 308nm excimer laser.

The Multi-Micro Dose Tip accessory is indicated for use in conjunction with the XTRAC laser system to filter the Narrow Band -UVB (“NB-UVB”) light at delivery in order to calculate and individualize the maximum non-blistering dose for a particular patient.

The patent-pending MMD Tip simultaneously applies multiple level doses of energy to a specific area of the patient’s psoriatic plaque, thereby identifying the maximum sub-blistering energy dose for a particular treatment zone.  Utilizing the results from these test patches, the physician can design the optimal therapeutic dose treatment for each patient.  The optimization of the dose levels should result in a shorter treatment regimen to achieve clearance.

The XTRAC® excimer laser delivers a highly targeted therapeutic beam of NB-UVB light and is cleared by the FDA to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma – skin diseases which impact over 35 million patients in the United States alone. This technology is covered by multiple patents, including exclusive rights patents for the delivery of treatments to Vitiligo patients.

Dr. Dolev Rafaeli, STRATA’s Chief Executive Officer, stated, “This is an exciting and important step for the Company and an amazing achievement after years of development.  We believe that the MMD is a significant step on the path to developing the Optimal Therapeutic Dose protocol, which is intended to provide faster patient outcomes and higher patient satisfaction, and we expect that it will result in increased patient retention for our partner clinics.  Initial clinical data shown in previously issued peer reviewed studies is promising and we look forward to providing the results of our MMD pilot clinical study by the fourth quarter of this year.  We anticipate that the study will validate the achievement of clinical end points with a lower number of treatments.”

Large insurance providers already guide physicians to consider NB-UVB treatment, such as the one offered by XTRAC, as a first line of treatment, requiring a failure to respond prior to approving and covering treatments with targeted immune modulators (Biologics treatment). 

Current physician protocol with NB-UVB can extend over an 8-to-10 week period.  STRATA views the OTD protocol, which has shown patients reaching PASI-75 in as short as two weekly treatments using the MMD diagnostics tool, as a breakthrough to shortened treatment times; offering faster, no side-effect resolution for patients, lower cost for payers, and enhanced business for our partner clinics that enjoy the XTRAC Direct-to-Consumer patient awareness advertisement campaign.

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation.  

Safe Harbor

This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995.  These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends.  These statements, including the Company’s ability to generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations and research and development activities beginning at any time in the future, the public’s reaction to the Company’s new advertisements and marketing campaigns under development, and the Company’s ability to build a leading franchise in dermatology and aesthetics, the Company’s ability to grow revenues and sustain that growth, the Company’s ability to influence physician practice to utilize the OTD device for shorter patient treatment protocols, and the uncertainty of the outcomes of clinical studies, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances.  Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s 10K filed with the SEC on March 30, 2018.

   
Investor Contacts:  
Dr. Dolev Rafaeli, Chief Executive Officer Jeremy Feffer, Managing Director
STRATA Skin Sciences, Inc. LifeSci Advisors, LLC
215-619-3200 212-915-2568
ir@strataskin.com jeremy@lifesciadvisors.com

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences to Host 2nd Quarter 2018 Financial Results and Business Update Conference call on Monday, August 13, 2018

HORSHAM, Pa., Aug. 02, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ: SSKN) (“STRATA”), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, will release second quarter financial results on Monday, August 13, after the market close. STRATA Skin Sciences President and Chief Executive Officer, Dr. Dolev Rafaeli, and Matthew C. Hill, Chief Financial Officer, will host a conference call at 4:30 pm Eastern Time to review the Company’s progress.

Conference Call Details:       
Date: Monday, August 13
Time: 4:30 pm Eastern Time
Toll Free: 888-254-3590
International:                    323-994-2093
Passcode: 9279759
Webcast: www.strataskinsciences.com

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company focused on the therapeutic and aesthetic dermatology market. Its products include the XTRAC® excimer laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation.

Investor Contacts:  
Dolev Rafaeli, Chief Executive Officer          Jeremy Feffer, Managing Director
STRATA Skin Sciences, Inc. LifeSci Advisors, LLC
215-619-3200 212-915-2568
ir@strataskin.com Jeremy@LifeSciAdvisors.com

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences Announces Licensing Agreement for Certain MelaFind Assets

HORSHAM, Pa., July 23, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences (NASDAQ:SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today announced a fully paid exclusive and perpetual license agreement with a strategic entity for a de-identified digital image library of pigmented lesions and their related documentary information, related to STRATA’s discontinued MelaFind device. STRATA retains all intellectual property rights related to the MelaFind device and product line, including patents, design files and PMA approval to market.  The strategic entity will be allowed exclusive rights to the de-identified digital images.

“We are pleased to come to agreement with this licensing partner for the de-identified images related to the MelaFind device.  Rationalizing the MelaFind assets is one step in our ongoing strategic turn-around efforts following our recent financing,” said Dr. Dolev Rafaeli, chief executive officer of STRATA. “While we will look for additional licensing opportunities and continue to evaluate potential M&A opportunities, our main focus is on rebuilding our XTRAC network, expanding internationally and executing on our proven revenue strategy.”

The perpetual license agreement is subject to customary closing conditions.

About STRATA Skin Sciences, Inc.
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation.

The Company’s proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases, which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatments to vitiligo patients.

STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.

The XTRAC® business has used this proven DTC model to grow its domestic dermatology partner network to over 740 clinics, with a worldwide installed base of over 2,000 devices.  The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC®, within a 10 mile radius of their house.  The Company is a leader in dermatology in-clinic business generation for its partners.    

About MelaFind 

MelaFind® was developed by the Company with intention to provide a dermatologist with a software-driven image analysis of clinically irregular pigmented moles when they choose to obtain additional info to help decide whether or not to biopsy (at the most curable and cost-effective stage). MelaFind® is both FDA Pre-Market Approved (PMA) for the U.S. and has CE Marking certification for the European Union.

The MelaFind® system utilizes innovative software-driven technology and state-of-the-art 3-D imaging to non-invasively extract data 2.5 mm below the skin surface from patient's clinically irregular pigmented moles and objectively analyzes them with proprietary algorithms. MelaFind provides important additional perspective to physicians to help them better understand the structural disorganization of a patient's pigmented irregular moles (before cutting the skin) during the evaluation and diagnosis process for melanoma.

On March 10, 2017 the company announced its intention to discontinue the development and sales of the MelaFind product line effective on September 30, 2017.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to generate the growth in its core business, the Company’s ability to continue to monetize the remaining MelaFind assets, develop social media marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.


Investor Contacts:  
Dr. Dolev Rafaeli, Chief Executive Officer Jeremy Feffer, Managing Director
STRATA Skin Sciences, Inc. LifeSci Advisors, LLC
215-619-3200 212-915-2568
ir@strataskin.com jeremy@lifesciadvisors.com


 

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences Announces 510(k) Submission for its Multi Micro Dose™ Tip Accessory for the XTRAC® 308nm Excimer Laser

HORSHAM, Pa., June 19, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences (NASDAQ:SSKN) (“STRATA”), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today announced submission of its 510(k) application to the Food and Drug Administration (FDA) for its Multi-Micro Dose™ (“MMD”) tip accessory for the proprietary XTRAC® 308nm excimer laser.

“This is an important milestone for the Company and is the first step in our plan to introduce the Optimal Therapeutic Dose™ treatment protocol, to provide faster patient outcomes, higher patient satisfaction, and to drive more patients to our partner clinics,” said Dr. Dolev Rafaeli, Chief Executive Officer of STRATA. “With its ability to apply simultaneous doses of energy to the psoriatic plaque, the MMD tip, when cleared, will allow physicians to optimize treatments more quickly.  We look forward to introducing the MMD Tip upon FDA clearance.”

The patent pending MMD Tip applies multiple high-energy doses at varying levels of energy to the patient’s psoriatic plaque.  Data have shown that higher doses of the XTRAC treatment achieved PASI-75 clearance in as little as two to four weekly treatments, as compared to an average of 6.2 treatments in previously published studies.

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)  
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation. Nothing in this press release is intended to indicate that the FDA has cleared the MMD device for marketing or that the sought after indications for use will be allowed by the FDA.

The Company’s proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatments to vitiligo patients.

STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.

The XTRAC® business has used this proven DTC model to grow its domestic dermatology partner network to over 740 clinics, with a worldwide installed base of over 2,000 devices.  The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC®, within a 10-mile radius of their house.  The Company is a leader in dermatology in-clinic business generation for its partners.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including the Company’s ability to generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations and research and development activities beginning at any time in the future, the public’s reaction to the Company’s new advertisements and marketing campaigns under development, and the Company’s ability to build a leading franchise in dermatology and aesthetics, the Company’s ability to grow revenues  and sustain that growth, and the Company’s ability to secure FDA 510k clearance for the OTD device are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s 10K filed with the SEC on March 30, 2018.

       
Investor Contacts:      
Dr. Dolev Rafaeli, Chief Executive Officer         Jeremy Feffer, Managing Director
STRATA Skin Sciences, Inc.     LifeSci Advisors, LLC
215-619-3200     212-915-2568
ir@strataskin.com     jeremy@lifesciadvisors.com
       

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences to Participate in Panel Discussion at Cantor Fitzgerald Dermatology & Aesthetics Summit

HORSHAM, Pa., June 13, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences (NASDAQ:SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today announced that Dr. Dolev Rafaeli, STRATA’s Chief Executive Officer, will participate in a panel discussion, titled “New Medical Dermatology Treatments Which Target Established Large Markets” at the Cantor Fitzgerald Dermatology & Aesthetics Summit at the Westin Grand Central Hotel in New York  on Tuesday, June 19th at 11:00 am Eastern Time.

Dr. Rafaeli’s participation will not be webcast, but the Company’s latest investor presentation will be available in the investor’s section of the Company’s website at www.strataskin.com

About STRATA Skin Sciences, Inc.
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation.

The Company’s proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases, which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatments to vitiligo patients.

STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.

The XTRAC® business has used this proven DTC model to grow its domestic dermatology partner network to over 740 clinics, with a worldwide installed base of over 2,000 devices.  The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC®, within a 10 mile radius of their house.  The Company is a leader in dermatology in-clinic business generation for its partners.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to generate the growth in its core business, the Company’s ability to develop social media marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:
Dr. Dolev Rafaeli, Chief Executive Officer                            Jeremy Feffer, Managing Director
STRATA Skin Sciences, Inc.                                                 LifeSci Advisors, LLC
215-619-3200                                                                        212-915-2568
ir@strataskin.com                                                                 jeremy@lifesciadvisors.com

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences to Present at JMP 2018 Life Sciences Conference

HORSHAM, Pa., June 12, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences (NASDAQ:SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today announced that Dr. Dolev Rafaeli, STRATA’s Chief Executive Officer will present a corporate overview at the JMP Securities Life Sciences Conference at the St. Regis Hotel in New York on Wednesday, June 20th at 12:30 pm Eastern Time.

An audio webcast of the presentation will be available on the Investor section of the STRATA website at www.strataskinsciences.com. A replay of the presentation will be available on the website for 30 days after the live webcast.

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)    
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation.

Investor Contacts:
Dolev Rafaeli, Chief Executive Officer
STRATA Skin Sciences, Inc.
215-619-3200
ir@strataskin.com
Jeremy Feffer, Managing Director
LifeSci Advisors, LLC
212-915-2568
jeremy@lifesciadvisors.com

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences Announces Closing of a $17 Million Equity Financing and the Formal Appointment of New Management to Accelerate Growth and Enrich its XTRAC® Business Strategy

Conference call and webcast tomorrow, May 30th at 8:30 am Eastern Time

  • New Financing: Equity financing of $17 million led by Accelmed, a leading investment firm specializing in medical technologies, and joined by existing investors Broadfin Capital and Sabby Management and incoming CEO, Dr. Dolev Rafaeli
  • Experienced Management: Dr. Dolev Rafaeli, formally named CEO of STRATA, brings significant history of success with XTRAC business. From 2011 to 2015 during his time as CEO of PhotoMedex, Dr. Rafaeli transformed the XTRAC business growing the installed base by 240%, increasing the per device recurring revenue by 220% and boosting the recurring business segment’s gross margins from 39% to 68%
  • XTRAC Business Model: STRATA, the global market leader of Laser devices for dermatological treatments, provides a vertically integrated array of value-added services to its physician partners. Following the equity financing, STRATA will be better positioned to become a platform company for dermatology procedures generating recurring revenue
  • XTRAC Opportunity: STRATA’s Recurring Revenue Business Model provides opportunities for top and bottom-line growth, with an available domestic market of over 35 million patients across all reimbursed indications
  • XTRAC Technology: STRATA is developing a faster treatment protocol for skin clearance utilizing its proprietary OTD™ (Optimal Therapeutic Dose) device to achieve faster XTRAC treatment times and better patient outcomes
  • STRATA’s commercial platform to be used to introduce new growth products aimed at clinical dermatologists 
  • As part of financing STRATA issued 15,740,741 shares of common stock subject to customary post-closing adjustments and now has 33,495,801 shares of common stock outstanding and on as-converted basis

HORSHAM, Pa., May 29, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences (NASDAQ:SSKN) (“STRATA”), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today announced that its shareholders have voted in favor of an equity financing, raising proceeds of $17 million. The financing was led by Accelmed Growth Partners (“AGP”), a private equity investment firm focused on value creation for medical device companies and technologies, through the establishment of platform companies. AGP was joined by current shareholders Broadfin Capital and Sabby Management, and incoming CEO, Dr. Dolev Rafaeli.

Financing Details and Amendment of MidCap Financial Trust Agreement
Of the $17 million in proceeds, $3 million will be used to pay down a portion of the current loan with MidCap Financial, as part of an amendment to the loan agreement that provides more favorable terms and covenants.

The remaining proceeds from the equity financing will fund growth opportunities for the Company by focusing on its core recurring revenue business and adding innovative medical devices, which can leverage STRATA’s salesforce, customer relationships and current infrastructure in sales, marketing and reimbursement. 

Appointment of New Chairman of the Board of Directors
Following the closing of the financing, Dr. Uri Geiger, Managing Partner of Accelmed, will be appointed Chairman of the STRATA Board. Dr. Geiger brings extensive entrepreneurial, management and investment know-how having created and built many successful medical device enterprises. Among his many accomplishments, Dr. Geiger served as CEO and Founder of Exalenz Bioscience Ltd., and of GalayOr Networks, and is a founding partner of Dragon Variation Fund, as well as most recently the Chairman of Cogentix Medical.

Dr. Geiger stated, “We are excited to become the majority shareholder of STRATA and confident that the combination of Dr. Rafaeli’s leadership and Accelmed’s proven track record of creating successful medtech platform companies will provide tremendous value to patients, physicians and shareholders.”

Appointment of New Management with Experience in the XTRAC Business and Company Turnarounds
In conjunction with the closing of the financing, Dr. Dolev Rafaeli formally assumed the position of CEO, having served as the Company’s interim CEO since April, 2018. Dr. Rafaeli has over 25 years of experience in the healthcare, medical device, consumer and industrial services fields. Prior to STRATA, he served as CEO of PhotoMedex, the company that founded the XTRAC business, and served on its Board from 2006 to 2017. It was under his leadership that PhotoMedex achieved sales growth from $19 million to over $300 million, driven by increases in brand portfolio, distribution channels and M&A transactions. During his tenure, the XTRAC business grew by 335%, and the XTRAC business gross margins grew from 39% to 68%.

Dr. Rafaeli stated, “I am thrilled to lead STRATA at this extraordinary time. The XTRAC device is a best-in-class UV technology for the treatment of psoriasis, vitiligo and other skin conditions. Our business model is differentiated by a combination of clinical superiority, unique value-added services – including a direct-to-patient engine that accelerates awareness and drives consigned XTRAC device utilization – and a reimbursement support team that confirms insurance benefits, thereby expediting the patient experience.”

“Our immediate priority is to execute a comprehensive turnaround strategy to restore the growth potential of the business. The initial steps will include: 1) rebuilding the XTRAC business’ value creation proposition for our physician partner accounts, 2) improving patient retention through improved clinical outcomes and protocol compliance, and 3) re-engaging our proven direct-to-consumer, end-to-end patient acquisition strategy to drive more patients into the dermatology practices,” Dr. Rafaeli added, “We believe that stricter adherence to protocol compliance will lead to better clinical outcomes for patients, resulting in a higher patient retention rate for physicians. We also believe that our Optimal Therapeutic Dose (OTD) technology for XTRAC, currently in development, will jump start adherence to the preferred protocol, once deployed.”

“Our nationwide network of XTRAC partner clinics offers a significant opportunity to increase market penetration in psoriasis and to broaden our market penetration with other approved indications, including vitiligo and atopic dermatitis (eczema).” Dr. Rafaeli concluded, “Lastly, we are formulating a strategy that is expected to drive revenue growth outside the U.S., where we currently enjoy significant market penetration in such markets as China, South Korea and the Middle East, to name a few.”

The Company also announced the appointment of Matthew C. Hill as Chief Financial Officer, effective as of May 15, 2018. Mr. Hill brings to STRATA over two decades of experience in the medtech industry, having previously served as CFO of two publicly traded companies, Velcera, Inc. and EP Medystems Inc. 

“I am thrilled to join STRATA at this exciting time and believe that the Company’s portfolio of skin science technologies has enormous potential,” said Matthew Hill, STRATA’s Chief Financial Officer. “I look forward to growing with the Company and working with the management team to help STRATA become one of the leaders in the dermatology space.”

Conference Call & Webcast
The management of STRATA will hold a conference call tomorrow, Wednesday, May 30, 2018 at  8:30 am Eastern Time to discuss the financing, the turnaround strategy, and the management and Board changes.  Dial-in and replay details are as follows:

Wednesday, May 30, 2018 @ 8:30 am Eastern Time

Domestic:   800-347-6311
International:   323-794-2094
Israel - local   1-809-212-909
Passcode:   7669358
Webcast:   http://public.viavid.com/index.php?id=129953

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)    
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including the Company’s ability to generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations and research and development activities beginning at any time in the future, the public’s reaction to the Company’s new advertisements and marketing campaigns under development, and the Company’s ability to build a leading franchise in dermatology and aesthetics, the Company’s ability to grow revenues  and sustain that growth, and the Company’s ability to secure FDA 510k clearance for the OTD device, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s 10K filed with the SEC on March 30, 2018.

Investor Contacts:    
Dr. Dolev Rafaeli, Chief Executive Officer   Bob Yedid, Managing Director
STRATA Skin Sciences, Inc.   LifeSci Advisors, LLC
215-619-3200   646-597-6989
ir@strataskin.com   Bob@LifeSciAdvisors.com

 

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences Announces $17 Million Equity Financing led by Accelmed Growth Partners; Appointment of Industry Veteran as Interim CEO

Dr. Dolev Rafaeli Brings 25+ Years of Experience in Growing Healthcare, Medical Device, Technology and Consumer Companies

Proposed $3 Million Pay Down of Existing $10.6 Million Midcap Credit Facility

HORSHAM, Pa., April 02, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences (NASDAQ:SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today announced that it has entered into definitive agreements for the sale of 15,740,740 shares of common stock to a group of investors led by Accelmed Growth Partners, an investment firm focused on value creation for medical device companies and technologies, for proceeds of $17 million. Accelmed is investing $13 million. Other investors include Dr. Dolev Rafaeli, Gohan Investments, Broadfin Capital and Sabby Management, the latter two of which are dedicated healthcare investors which both currently own common and preferred stock in the Company.

STRATA also announces the appointment of Dr. Rafaeli as Interim CEO, effective April 10, 2018. The Company’s current CEO Frank J. McCaney will assume the role of Interim CFO. The Company previously announced that it will conduct an Earnings Call at 8:30AM today. Information about the call is available below.

In connection with the equity financing, STRATA has signed a non-binding Term Sheet to amend its existing $10.6 million credit facility established with MidCap Financial Trust (“MidCap”) in 2015. Of the $17 million to be received from the new investors, $3 million will be used to pay down the current loan with MidCap. The terms of the credit facility will be amended to lower the interest rate, impose less restrictive covenants and lower prepayment and exit fees for the Company. 

The remaining proceeds from the equity financing will be used to enhance the Company’s growth by focusing on the Company’s core recurring revenue business and adding innovative medical devices which can leverage STRATA’s salesforce, customer relationships and current infrastructure in sales, marketing and reimbursement. 

The proposed financing will require the approval of at least 51 percent of a quorum of the votes cast in person or by proxy by shareholders of STRATA at a special meeting expected to be held no later than June 30th, 2018. Broadfin Capital and Sabby Management have pledged to vote their shares in favor of the financing.

“We are very pleased to have Accelmed as an investor in STRATA,” said LuAnn Via, Chairperson of the Board of Directors. “Their experience in medical devices and providing growth equity to drive significant value creation serve to further position STRATA for its next phase of growth.”

“We are delighted also to have Dolev Rafaeli join as the Company’s new CEO,” continued Ms. Via. “He has considerable experience in leadership roles in medical device companies and has a successful track record of turning around organizations and creating value for shareholders. We are confident he will make a significant contribution to the future of STRATA.” Upon Closing, Dr. Rafaeli will become the permanent CEO. In addition, at Closing, Dr. Uri Geiger, co-founder and CEO of Accelmed Growth Partners will become Chairman of the Board.

“I am very excited to have the opportunity to lead STRATA,” said Dr. Dolev Rafaeli, incoming Interim CEO. “The Company has a portfolio of proven, best-in-class skin science technologies, including the market leading XTRAC laser for the treatment of psoriasis, vitiligo and other skin deseases. I look forward to helping STRATA achieve its goal to become the valued business partner of choice for dermatology practices.”

Dr. Dolev Rafaeli has over 25 years of experience in the healthcare, medical device, consumer and industrial services fields. He served as a Member of the Board of Directors of the company that founded the XTRAC, PhotoMedex (Nasdaq:PHMD), since 2011 and was its CEO from 2006 to 2015. Under his management at PhotoMedex, he oversaw sales growth from $19 million to over $300 million, driven by increases in brand portfolio, distribution channels and M&A transactions. He was President and CEO of Radiancy, a subsidiary of PhotoMedex, from 2006 to 2017.

Mr. Hal Mintz, Managing Member of Sabby Management and a current investor in the Company as well as an investor in this round of financing, said, “The investment by Accelmed and the appointment of Drs. Geiger and Rafaeli mark a significant change to the makeup of STRATA. The additional $17 million in capital will allow the company to renegotiate its credit facility and reinvest in advertising its flagship XTRAC laser system, options that until now were unavailable to existing management. Accelmed is a seasoned medical device investor and turnaround specialist that recently made a similar investment in Cogentix just 18 months ago and which was recently sold with significant appreciation for its shareholders.” 

H.C. Wainwright & Co. acted as placement agent for Strata in the equity transaction. 

Fairmount Partners, an independent investment banking firm, acted as financial adviser to STRATA. 

Conference Call Details:
Date: Monday, April 2, 2018
Time: 8:30 am Eastern Time
Toll Free: 888-394-8218
International:          323-794-2149
Passcode: 6380302
Webcast: www.strataskinsciences.com

About Accelmed
Accelmed is a US/Israel-based investment firm focused on value creation for medical device companies and technologies. It was founded in 2009 by Dr. Uri Geiger and Mori Arkin and invests in small and mid-cap private and public companies. With its proven track record and large team of accomplished investment professionals, Accelmed’s vision is to create leading med-tech players by merging commercial platforms with small innovative growth companies, predominantly from Israel. For more information, refer to http://www.accelmed.com/.

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)         
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

Additional Information and Where to Find It

This press release may be deemed solicitation material in respect of the proposed issuance of the shares of common stock of STRATA in the financing, which is subject to stockholder approval.  STRATA intends to file with the Securities and Exchange Commission (the "SEC") and mail to its stockholders a definitive proxy statement in connection with the proposed transaction.  This press release does not constitute a solicitation of any vote or approval.  STRATA'S STOCKHOLDERS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT STRATA AND THE PROPOSED TRANSACTION.  Investors and stockholders may obtain a free copy of the proxy statement and other documents filed with the SEC, when they become available, from the SEC's website at www.sec.gov or by accessing STRATA's website at www.strataskinsciences.com.

Certain Information Concerning Participants

STRATA, its directors, executive officers and certain other members of management and employees of STRATA may be deemed to be participants in the solicitation of proxies from STRATA's stockholders with respect to the proposed exchange transaction.  Information about such persons who may, under the rules of the SEC, be considered participants in the solicitation of stockholders of STRATA in connection with the proposed transaction, and any interest they may have in the proposed transaction, will be set forth in the definitive proxy statement when it is filed with the SEC, which may be obtained as indicated above.  Investors and stockholders can find additional information about STRATA's directors and executive officers in STRATA's annual report on Form 10-K, which STRATA filed with the SEC on April 2, 2018.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including the Company’s ability to generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations and research and development activities beginning at any time in the future, the public’s reaction to the Company’s new advertisements and marketing campaigns under development, and the Company’s ability to build a leading franchise in dermatology, aesthetics, and plastic surgery, and the financing will close, the credit facility will be amended, and management will be successful in growing the Company are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s 10K filed with the SEC on April 2, 2018.

   
Investor Contacts:  
Frank McCaney, Chief Executive Officer Bob Yedid, Managing Director
STRATA Skin Sciences, Inc. LifeSci Advisors, LLC
215-619-3200 646-597-6989
fmccaney@strataskin.com Bob@LifeSciAdvisors.com
   

 

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences Reports Fourth Quarter and Fiscal Year 2017 Financial Results

Conference call and webcast, today at 8:30 am Eastern Time

HORSHAM, Pa., April 02, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences (NASDAQ:SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today reported financial results for the fourth quarter and fiscal year ended December 31, 2017.

Full Year and Recent Corporate Highlights

  • Total revenues for the year were $31.4 million, an increase of 2.4% over 2016 revenues.
  • Installed base of XTRAC systems in the U.S. was 753 systems at year end, down 3% from 775 at the end of 2016, as a result of the Company’s strategy to redeploy underperforming XTRAC systems in more productive accounts. 
  • Non-GAAP Adjusted EBITDA increased by 67% to $4.8 million in 2017 versus $2.9 million in 2016
  • Revenues for the first quarter ended March 31, 2018 will be in the range of approximately $6.3 million to $6.6 million, down 7 to 11% over first quarter 2017 revenues.

“We made several important strategic decisions in 2017 that position STRATA for the long term,” stated Frank McCaney, President and Chief Executive Officer of STRATA. “These include the simplification of our balance sheet with the exchange of convertible debt for convertible preferred stock, which provides us with greater financial flexibility.”

Full Year 2017 Financial Results
Revenues for the year ended December 31, 2017 were $31.4 million, an increase of 2.4%  compared with revenues of $30.7 million for the year ended December 31, 2016.  

Net loss for the year ended December 31, 2017 was $18.8 million or ($2.85) per diluted common share and ($1,061.25) per diluted Series C share (the significant loss reflects in part the conversion of debt to shares), which included other expense, net of $16.3 million, consisting of $4.6 million in interest expense, net, $0.1 million for the reduction in fair value of warrant liability, and loss on extinguishment of debentures of $11.8 million.  This compares with a net loss for the year ended December 31, 2016 of $3.3 million or ($3.77) per diluted share, which included other income, net of $0.5 million, consisting of $4.9 in interest expense, net, $5.4 million for the reduction in fair value of warrant liability, and no loss on the extinguishment of debentures.

Fourth Quarter 2017 Financial Results
Revenues for the fourth quarter ended December 31, 2017 were $8.6 million, an increase of 3.2% compared with revenues of $8.3 million for the quarter ended December 31, 2016. 

Net loss for the quarter ended December 31, 2017 was $1.7 million or ($0.10) per diluted common share and ($36.36) per diluted Series C share, which included other expense, net of $0.3 million, consisting primarily of $0.3 million in interest expense, net. This compares with a net loss for the quarter ended December 31, 2016 of $0.9 million or ($0.41) per diluted share, which included other expense, net of $1.2 million, consisting primarily of $1.3 million of interest expense, net.   

As of December 31, 2017, the Company had cash and cash equivalents of $4.1 million, compared with $3.9 million as of December 31, 2016.

Non-GAAP Adjusted EBITDA

To supplement the Company’s consolidated financial statements, prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP adjusted EBITDA.

The Company’s reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of our current financial performance and to provide further information for comparative purposes.

Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of the Company’s core operating results and business outlook. In addition, the Company believes non-GAAP measures enhance the comparability of results against prior periods. Reconciliation to the most directly comparable GAAP measure of all non-GAAP measures included in this press release is as follows:

           
      Three Months Ended
December 31,
  Year Ended
December 31,
        2017       2016       2017       2016  
      (in thousands)
(Unaudited)
  (in thousands)
(Unaudited)
           
Net loss as reported   ($ 1,720 )   ($ 887 )   ($18,831 )   ($3,335 )
Adjustments:                
  Depreciation and amortization expense *     1,525       1,522       6,336       6,366  
  Interest expense, net      304       623       2,056       2,226  
  Non-cash interest expense     44       706       2,556       2,674  
  Income taxes     (52 )     64       129       255  
                   
  EBITDA     101       2,028       (7,754 )     8,186  
                   
  Stock-based compensation expense     50       (288 )     186       113  
  Change in fair value of warrants     (25 )     (80 )     (102 )     (5,396 )
  Impairment of lasers placed –in-service     196       -       196       -  
  Impairment of intangible assets     523       -       523       -  
  Loss on extinguishment of debentures     -       -       11,799       -  
                   
Non-GAAP adjusted EBITDA   $845     $1,660     $4,848     $2,903  

* Includes depreciation on lasers placed-in-service of $4,247 and $4,410 for the year ended December 31, 2017 and 2016, respectively.

Conference Call Details:
Date:   Monday, April 2
Time:   8:30 am Eastern Time
Toll Free:   888-394-8218
International:             323-794-2149
Passcode:   6380302
Webcast:   www.strataskinsciences.com

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)         
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including the Company’s ability to generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations and research and development activities beginning at any time in the future, the public’s reaction to the Company’s new advertisements and marketing campaigns under development, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:  
Frank McCaney, Chief Executive Officer Bob Yedid, Managing Director
STRATA Skin Sciences, Inc. LifeSci Advisors, LLC
215-619-3200 646-597-6989
fmccaney@strataskin.com Bob@LifeSciAdvisors.com



 

       
STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
       
  December 31, 2017     December 31, 2016  
           
ASSETS          
Current assets:          
Cash and cash equivalents $ 4,069     $   3,928  
Accounts receivable, net   3,141       3,390  
Inventories, net   3,009       2,817  
Other current assets   533       617  
Property and equipment, net   7,703       10,180  
Goodwill and other intangible assets   20,128       22,215  
Other non-current assets, net   48       46  
Total assets $ 38,631     $ 43,193  
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current liabilities:          
Note payable $    357     $   339  
Current portion of long-term debt   2,387       1,714  
Accounts payable and accrued current liabilities   4,637       3,845  
Current portion of deferred revenues   291       235  
Senior secured convertible debentures, net   -       12,028  
Long-term debt, net   7,853       9,752  
Warrant liability   3       105  
Other long-term liabilities   858       456  
Stockholders' equity   22,245       14,719  
Total liabilities and stockholders’ equity $ 38,631     $ 43,193  
           

 

         
STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
         
    For the Three Months Ended
December 31,
  For the Year Ended
December 31,
      2017       2016       2017       2016  
                 
Revenues   $8,596     $8,331     $31,449     $30,707  
                 
Cost of revenues     4,316       3,005       13,498       12,636  
                 
Gross profit     4,280       5,326       17,951       18,071  
                 
Operating expenses:                
Engineering and product development     402       388       1,711       1,929  
Selling and marketing     2,936       2,779       11,249       12,102  
General and administrative     2,402       1,755       7,401       7,637  
      5,740       4,922       20,361       21,668  
                 
Operating loss before other income (expense), net     (1,460 )     404       (2,410 )     (3,597 )
                 
Other income (expense), net:                
Interest expense, net     (348 )     (1,329 )     (4,612 )     (4,900 )
Change in fair value of warrant liability     25       80       102       5,396  
Other (expense) income, net     11       22       17       21  
Loss on extinguishment of debentures     -       -       (11,799 )     -  
      (312 )     (1,227 )     (16,292 )     517  
                 
Net loss before income taxes     (1,772 )     (823 )     (18,702 )     (3,080 )
                 
Income tax (expense) benefit     52       (64 )     (129 )     (255 )
                 
Net loss   ($1,720 )   ($887 )   ($18,831 )   ($3,335 )
                 
                 
Net loss per common share:                
Basic   ($0.10 )   ($ 0.41 )   ($2.85 )   ($ 1.57 )
Diluted   ($0.10 )   ($ 0.41 )   ($2.85 )   ($ 3.77 )
                 
                 
Shares used in computing net loss per share:                
Basic     3,857,736       2,153,707       2,713,782       2,119,014  
Diluted     3,857,736       2,153,707       2,713,782       2,315,715  
                 
                 
Net loss per Preferred C Share
      Basic and diluted
  ($36.36 )       ($1,061.25 )    
Shares used in computing net loss per
      Basic and diluted Preferred C Share
    37,035           10,444      
                         

 

     
STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
     
  For the Year Ended  
  December 31,  
    2017     2016    
Cash Flows From Operating Activities:          
Net loss   ($18,831 )   ($3,335 )  
    Adjustments to reconcile net loss to net cash used in operating activities:          
        Depreciation and amortization   6,336     6,366    
       Stock-based compensation   186     113    
       Amortization of debt discount   2,360     2,473    
       Amortization of deferred financing costs   188     200    
       Change in fair value of warrant liability   (102 )   (5,396 )  
       Loss on extinguishment of debentures   11,799     -    
       Other   843     484    
    Changes in operating assets and liabilities:           
       Current assets   466     2,093    
       Current liabilities   895     (2,676 )  
  Net cash provided by (used in) operating activities   4,140     322    
           
Cash Flows From Investing Activities:          
    Lasers placed-in-service, net   (1,739 )   (1,008 )  
    Other   (455 )   140    
  Net cash used in investing activities   (2,194 )   (868 )  
           
Cash Flows From Financing Activities:          
    Repayment of term debt   (1,429 )   -    
    Proceeds from term debt   -     1,500    
    Other financing activities   (374 )   (333 )  
  Net cash (used in) provided by financing activities    (1,803 )   1,167    
           
Effect of exchange rate changes on cash   (2 )   4    
           
Net decrease in cash and cash equivalents   141     625    
Cash and cash equivalents, beginning of period   3,928     3,303    
           
Cash and cash equivalents, end of period   $4,069     $3,928    
           
Supplemental information:          
  Cash paid for interest   $ 2,215     $ 2,054    
  Cash paid for income taxes   $ 28     $ 15    
Supplemental information of non-cash investing and financing activities:          
  Conversion of senior secured convertible debentures into common stock   $ 262     $ 265    
  Reclassification of warrant liability to (from) stockholders’ equity   $ -     $ 1,541    
  Recognition of warrants issued with term note credit facility as debt discount    $ -     $ 47    
  Prepaid insurance financed with notes payable   $ 392     $ 372    
  Acquisition of distributor rights asset and license liability   $ 286     $ -    
  Issuance of convertible Preferred C stock in exchange for convertible notes.   $ 25,910        
           

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences, Inc. Reschedules Fiscal 2017 Financial Results and Corporate Update Call to Monday, April 2 at 8:30 am Eastern Time

HORSHAM, Pa., March 29, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, will release fiscal 2017 financial results on Monday, April 2, before the market opens.  STRATA Skin Sciences’ President and Chief Executive Officer, Frank J. McCaney, will host a conference call at 8:30 am Eastern Time to review the Company’s progress.

Conference Call Details: 
Date: Monday, April 2
Time: 8:30 am Eastern Time
Toll Free: 888-394-8218
International: 323-794-2149
Passcode: 6380302
Webcast: www.strataskinsciences.com
 

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)  
STRATA Skin Sciences is a medical technology company focused on the therapeutic and aesthetic dermatology market.  Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation; and NORDLYS, a multi-technology aesthetic laser device.

Investor Contacts:  
Frank McCaney, Chief Executive Officer Bob Yedid, Managing Director
STRATA Skin Sciences, Inc. LifeSci Advisors, LLC
215-619-3200 646-597-6989
fmccaney@strataskin.com Bob@LifeSciAdvisors.com 

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences, Inc. to Report Fiscal 2017 Financial Results on Thursday, March 29

-- Conference Call to Follow at 4:30 p.m. EDT --

HORSHAM, Pa., March 27, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN) (“STRATA”), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, will release fiscal 2017 financial results on Thursday, March 29, after the market close.  STRATA Skin Sciences’ President and Chief Executive Officer, Frank J. McCaney, will host a conference call at 4:30 pm Eastern Time to review the Company’s progress.

Conference Call Details:
Date:                            Thursday, March 29
Time:                            4:30 pm Eastern Time
Toll Free:                      888-394-8218
International:                323-794-2149
Passcode:                     6380302
Webcast:                      www.strataskinsciences.com

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company focused on the therapeutic and aesthetic dermatology market.  Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation; and NORDLYS, a multi-technology aesthetic laser device.

Investor Contacts:
Frank McCaney, Chief Executive Officer
STRATA Skin Sciences, Inc.
215-619-3200
fmccaney@strataskin.com

Bob Yedid, Managing Director
LifeSci Advisors, LLC
646-597-6989
Bob@LifeSciAdvisors.com

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences, Inc. Delays Fourth Quarter and Fiscal 2017 Financial Results

HORSHAM, Pa., March 06, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, announced today that its fourth quarter and fiscal 2017 financial results earnings call has been delayed to March 29th.  The call has been delayed because additional time is required, due in part to an extended power outage at the Company’s Horsham, PA facility, to complete the company's review of certain accounting matters. 

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company focused on the therapeutic and aesthetic dermatology market.  Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation; and NORDLYS, a multi-technology aesthetic laser device.

                   
Investor Contacts:    
Frank McCaney, Chief Executive Officer
STRATA Skin Sciences, Inc. 
215-619-3200
fmccaney@strataskin.com 
  Bob Yedid, Managing Director
LifeSci Advisors, LLC
646-597-6989
Bob@LifeSciAdvisors.com

 

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences, Inc. to Report 4th Quarter and Fiscal 2017 Financial Results on Thursday, March 8

-- Conference Call to Follow at 4:30 p.m. EDT --

HORSHAM, Pa., Feb. 21, 2018 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN) (“STRATA”), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, will release fourth quarter and fiscal 2017 financial results on Thursday, March 8, after the market close.  STRATA Skin Sciences’ President and Chief Executive Officer, Frank J. McCaney, will host a conference call at 4:30 pm Eastern Time to review the Company’s progress and answer questions.

Conference Call Details:    
Date:   Thursday, March 8
Time:   4:30 pm Eastern Time                       
Toll Free:   888-394-8218
International:    323-794-2149
Passcode:   6380302
Webcast:   www.strataskinsciences.com 

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company focused on the therapeutic and aesthetic dermatology market.  Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation; and NORDLYS, a multi-technology aesthetic laser device.

Investor Contacts:    
Frank McCaney, Chief Executive Officer Bob Yedid, Managing Director                                   
STRATA Skin Sciences, Inc. LifeSci Advisors, LLC  
215-619-3200  646-597-6989  
fmccaney@strataskin.com  Bob@LifeSciAdvisors.com  


                  
                                       
                                                            
                                         

 

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences Announces Appointment of LuAnn Via as Chairperson of the Board

HORSHAM, Pa., Dec. 20, 2017 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (“STRATA”) (NASDAQ:SSKN), today announced that effective immediately LuAnn Via, current Board member and Chair of the Compensation Committee of the Board, has been unanimously appointed as Chairperson of the Board.  The Board made the appointment after Jeffrey O’Donnell, Sr. informed the Board that, because of the growing needs of his other commitments, he could no longer devote the time and energy as required by the position of Chairman, but that he would continue to serve as a Board member.

Mr. O’Donnell stated, “I and the entire STRATA Board have been so impressed with LuAnn’s leadership and experience.  Her skill sets will be invaluable as STRATA seeks to enhance its position in the therapeutic and aesthetic dermatology market. I look forward to collaborating with LuAnn, as well as the entire STRATA Board and management team, as we seek to build value for all of our stockholders.”

“STRATA Skin Sciences has made significant progress in developing its products and expanding its product offerings,” said Ms. Via. “I am delighted to assume the role of Chairperson and look forward to working with the team in its continuing efforts to develop, commercialize and market innovative products for the treatment of dermatologic conditions.  On behalf of the STRATA Board, I want to thank Jeff O’Donnell for his longstanding service as our Chairman.”

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)         
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

Trademarks
Ellipse and Nordlys are trademarks of Ellipse S/A, Horsholm, Denmark.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including the development of the Company’s products and additional product offerings, the Company’s ability to enhance its position in the therapeutic and aesthetic dermatology market, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:
Frank McCaney, Chief Executive Officer
STRATA Skin Sciences, Inc.
215-619-3200
fmccaney@strataskin.com

Bob Yedid, Managing Director
LifeSci Advisors, LLC
646-597-6989
Bob@LifeSciAdvisors.com  

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences Announces Exploration of Strategic Alternatives

HORSHAM, Pa., Dec. 18, 2017 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, announced today that its Board of Directors has entered a process to explore and review strategic alternatives focused on enhancing stockholder value, which may include a sale of the Company or other transaction, and is in the process of engaging a financial adviser.

Frank McCaney, President and Chief Executive Officer of STRATA, commented, “We believe we have made significant progress in developing our products and continue to implement changes to our business with the goal of enhancing our strategic position in the medical and aesthetic dermatology market.  We believe now is the appropriate time to explore strategic alternatives.”

The Board and management team are focused on enhancing stockholder value and are committed to pursuing the right course of action for all stockholders.  While the Board conducts its review, the entire STRATA team continue to work diligently to improve operations and profitability.

The Board has not set a timetable for this process nor has it made any decisions related to any specific strategic alternatives at this time.  There can be no assurance that the exploration of strategic alternatives will result in a transaction.  STRATA does not intend to provide any updates unless or until it determines that further disclosure is appropriate or necessary.

About STRATA Skin Sciences, Inc.
(www.strataskinsciences.com)           
STRATA Skin Sciences is a medical technology company focused on the therapeutic and aesthetic dermatology market.  Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including statements regarding strategic alternatives, the development of the Company’s products and additional product offerings, the Company’s ability to generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations beginning at any time in the future, the Company’s ability to incur savings and invest those savings internally or in potential acquisitions or licensing of new products and to access the capital markets in the future, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:    
Francis J. McCaney, President and Chief Executive Officer   Bob Yedid, Managing Director
STRATA Skin Sciences, Inc.    LifeSci Advisors, LLC
215-619-3213    646-597-6989
fmccaney@strataskin.com    Bob@LifeSciAdvisors.com

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences Announces Departure of Chief Financial Officer

HORSHAM, Pa., Dec. 06, 2017 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, today announced that Christina Allgeier resigned as Chief Financial Officer to pursue other opportunities and to commence the next chapter in her career. Ms. Allgeier intends to remain in her current role through December 31st.   

Jeff O’Donnell, Chairman of the Board stated, “We wish Christina well and thank her for her years of service; we have commenced a search for her replacement.”

Ms. Allgeier has agreed to assist the Company during the transition period as it searches for a new Chief Financial Officer by entering into a transition services agreement, under which she will provide STRATA with consulting services through March 31, 2018.   

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)   
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

Trademarks
Ellipse and Nordlys are trademarks of Ellipse S/A, Horsholm, Denmark.     

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trend, and. are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:

Frank McCaney, Chief Executive Officer   Bob Yedid, Managing Director
STRATA Skin Sciences, Inc.    LifeSci Advisors, LLC
215-619-3200    646-597-6989
fmccaney@strataskin.com   Bob@LifeSciAdvisors.com

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences Reports Third Quarter 2017 Financial Results

Conference call and webcast, today at 4:30 pm Eastern Time

HORSHAM, Pa., Nov. 09, 2017 (GLOBE NEWSWIRE) -- (NASDAQ:SSKN) STRATA Skin Sciences, Inc. (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, today reported financial results for the quarter ended September 30, 2017.

Third Quarter and Recent Corporate Highlights

  • Third quarter total revenues were $7.5 million, a decrease of 3.7% year-over-year; year to date revenues of $23.5 million, an increase of $328 thousand over the same period for 2016.  
  • Recurring XTRAC® revenues were $5.7 million, or 76.5% of total revenues. Recurring XTRAC revenues decreased 7.8% year-over-year.
  • Installed base of XTRAC systems in the U.S. expands to 776 systems placed, up 2.1% from 760 at the end of the third quarter 2016.
  • Recurring revenues were negatively impacted by hurricanes in Florida, Georgia, and Texas.

Frank McCaney, President and Chief Executive Officer of STRATA, stated, “A key strategic goal for the Company is to improve our current business and, in order to set the stage for a stronger 2018, we enacted a number of initiatives to improve the long term health of the company and to enhance our ability to grow. These decisions had an impact on the third quarter and will continue though this year. Among the initiatives was a restructuring of our sales organization, including the hiring of new regional sales directors as well as reps with proven track records in aesthetic capital sales. We also shifted our advertising focus from radio and TV to web and social media. The Company stopped radio and TV advertising early in the second quarter and very recently completed our first social media initiative in a limited rollout in one market.”

“STRATA made the proactive decision to remove XTRAC systems from underperforming practices in the third quarter,” added Mr. McCaney. “These systems will be redeployed in practices which we believe have better revenue potential using an improved qualification program.  Our goal is to boost the revenue per system and the profitability of dermatologists’ business over time. We are continuing to focus on increasing the treatment volume of our existing systems by having our salesforce work with dermatologists to improve their understanding of the value of XTRAC to their practices, including dermatological conditions that we have not promoted previously.”

One of our newer products is Nordlys. “We believe that Nordlys is a best-in-class aesthetic platform laser system,” continued Mr. McCaney. “The arena for this type of product is growing but is competitive.  We have recently hired seasoned capital sales professionals to focus on selling the Nordlys system, complementing STRATA’s traditional salesforce, which focuses primarily on XTRAC recurring revenue. We expect to close a number of Nordlys sales in the fourth quarter and build out our pipeline for 2018 with our new sales structure. We are also seeing early acceptance of the benefits of the STRATAPEN product and later in the fourth quarter, we will begin a promotion with our new partner MedResults Network (MRN). These Nordlys and STRATAPEN efforts are consistent with our goal to become The Dermatological and Aesthetic Practice Partner, leveraging our existing infrastructure, including our current sales presence, strong field service group, reimbursement capabilities and call center.”

“STRATA’s balance sheet and financial flexibility have been enhanced by the recent exchange of our convertible debt obligations for new shares of convertible preferred stock. The exchange underscores the Company’s efforts to improve the long term health of the business and will have the benefit of reducing our interest expense by over $4 million over the next four years, enhancing our ability to grow the business,” concluded Mr. McCaney.

Reported Financial Results
Revenues for the third quarter of 2017 were $7.5 million compared with revenues for the third quarter of 2016 of $7.8 million.

Net loss for the third quarter of 2017 was $13.7 million or ($5.52) per diluted share, which included other income of $0.1 million for the change in fair value of warrant liability, $1.3 million in interest expense and $1.6 million in depreciation and amortization expenses. The net loss also included an $11.8 million loss on the extinguishment of the convertible debentures, which were exchanged in during the quarter for convertible preferred stock. This compares with a net loss for the third quarter of 2016 of $1.5 million or ($0.71) per diluted share, which included other income of $0.1 million for the change in fair value of warrant liability, $1.2 million in interest expense and $1.5 million in depreciation and amortization expenses and $0.1 million for income tax expense.

Revenues for the nine months of 2017 were $23.5 million compared with revenues for the nine months of 2016 of $23.1 million.

Net loss for the nine months of 2017 was $17.1 million or ($7.35) per diluted share, which included other income of $0.1 million for the change in fair value of warrant liability, $4.3 million in interest expense, $4.8 million in depreciation and amortization expenses, $0.1 million for income tax expense, and $11.8 million loss on the extinguishment of the convertible debentures. This compares with net loss for the nine months of 2016 of $2.4 million or ($3.55) per diluted share, which included other income of $5.3 million for the change in fair value of warrant liability, $3.6 million in interest expense and $4.8 million in depreciation and amortization expenses and $0.2 million for income tax expense.

As of September 30, 2017, the Company had cash and cash equivalents of $3.1 million, compared with $3.9 million as of December 31, 2016.

Non-GAAP Measures

To supplement the Company’s consolidated financial statements, prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP adjusted EBITDA.

The Company’s reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of our current financial performance and to provide further information for comparative purposes.

Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of the Company’s core operating results and business outlook. In addition, the Company believes non-GAAP measures enhance the comparability of results against prior periods. Reconciliation to the most directly comparable GAAP measure of all non-GAAP measures included in this press release is as follows:

           
      Three Months Ended
September 30,
  Nine Months Ended
September 30,
      2017   2016   2017   2016
      (in thousands)
(Unaudited)
  (in thousands)
(Unaudited)
Net income loss as reported   ($13,671 )   ($1,509 )   ($17,111 )   ($2,448 )
Adjustments:                
  Depreciation and amortization expense*   1,602     1,521     4,811     4,844  
  Interest expense, net    564     537     1,752     1,604  
  Non-cash interest expense   779     638     2,512     1,967  
  Income taxes   38     64     181     191  
                   
  EBITDA   (10,688 )   1,251     (7,855 )   6,158  
                   
  Stock-based compensation expense   63     116     136     401  
  Change in fair value of warrants   (81 )   (132 )   (77 )   (5,316 )
  Loss on extinguishment of debentures   11,799     -     11,799     -  
                   
Non-GAAP adjusted EBITDA   $ 1,093     $ 1,235     $  4,003     $ 1,243  
                         

* Includes depreciation on lasers placed-in-service of $1,078 and $1,040 for the three months ended September 30, 2017 and 2016, respectively and $3,229 and $3,329 for the nine months ended September 30, 2017 and 2016, respectively.

STRATA previously announced the scheduling of a conference call with investors to review the results of the first quarter. Following is the pertinent information for accessing that call. 

Conference Call Detail:

Date:   Thursday, November 9
Time:   4:30 pm Eastern Time
Toll Free:   877-874-1571
International:   719-325-2281
Passcode:   2299656
Webcast:   www.strataskinsciences.com

Replays available through November 23, 2017:

Toll Free:   844-512-2921
International:   412-317-6671
Passcode:   2299656
Webcast:   www.strataskinsciences.com
     

About STRATA Skin Sciences, Inc.
(www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

Trademarks
Ellipse and Nordlys are trademarks of Ellipse S/A, Horsholm, Denmark.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including the Company’s ability to generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations and research and development activities beginning at any time in the future, the public’s reaction to the Company’s new advertisements and marketing campaigns under development, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:

Christina L. Allgeier, Chief Financial Officer Bob Yedid, Managing Director
STRATA Skin Sciences, Inc.  LifeSci Advisors, LLC
215-619-3267  646-597-6989
callgeier@strataskin.com Bob@LifeSciAdvisors.com


 
STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
   
  September 30, 2017   December 31, 2016
  (unaudited)    
ASSETS      
Current assets:      
Cash and cash equivalents $ 3,127   $  3,928
Accounts receivable, net 3,184   3,390
Inventories 3,533   2,817
Other current assets 209   617
Property and equipment, net 8,658   10,180
Goodwill and intangible assets, net 21,105   22,215
Other non-current assets, net 48   46
Total assets $ 39,864   $ 43,193
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
Long-term debt and other notes payable $ 10,812   $ 11,805
Accounts payable and accrued current liabilities 3,806   3,845
Current portion of deferred revenues 350   235
Senior secured convertible debentures, net -   12,028
Warrant liability 28   105
Other long-term liabilities 951   456
Stockholders' equity 23,917   14,719
Total liabilities and stockholders’ equity $ 39,864   $ 43,193
       


 
STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)
         
    For the Three Months Ended
September 30,
  For the Nine Months Ended
September 30,
    2017   2016   2017   2016
                 
Revenues   $ 7,480     $ 7,767     $ 23,454     $ 23,126  
                 
Cost of revenues   3,276     3,070     9,182     9,631  
                 
Gross profit   4,204     4,697     14,272     13,495  
                 
Operating expenses:                
Engineering and product development   411     382     1,309     1,541  
Selling and marketing   2,687     2,840     8,914     10,073  
General and administrative   1,678     1,880     4,999     5,882  
    4,776     5,102     15,222     17,496  
                 
Operating loss before other income (expense), net   (572 )   (405 )   (950 )   (4,001 )
                 
Other income (expense), net:                
Interest expense, net   (1,343 )   (1,175 )   (4,264 )   (3,571 )
Change in fair value of warrant liability   81     132     77     5,316  
Loss on extinguishment of debentures   (11,799 )   -     (11,799 )   -  
Other (expense) income, net   -     3     6     (1 )
    (13,061 )   (1,040 )   (15,980 )   1,744  
                 
Net loss before income taxes   (13,633 )   (1,445 )   (16,930 )   (2,257 )
                 
Income tax expense   (38 )   (64 )   (181 )   (191 )
                 
Net loss   ($ 13,671 )   ($ 1,509 )   ($ 17,111 )   ($ 2,448 )
                 
                 
Net loss per share:                
Basic   ($ 5.52 )   ($ 0.71 )   ($ 7.35 )   ($ 1.16 )
Diluted   ($ 5.52 )   ($ 0.71 )   ($ 7.35 )   ($ 3.55 )
                 
                 
Shares used in computing net loss per share:                
Basic   2,477,743     2,135,952     2,328,274     2,107,365  
Diluted   2,477,743     2,135,952     2,328,274     2,189,543  
                 


 
STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
   
  For the Nine Months Ended
   September 30,
  2017   2016
Cash Flows From Operating Activities:      
Net loss  ($ 17,111 )   ($ 2,448 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Depreciation and amortization   4,811       4,844  
Stock-based compensation   136       401  
Amortization of debt discount   2,344       1,821  
Amortization of deferred financing costs   171       145  
Loss on extinguishment of debentures   11,799       -  
Change in fair value of warrant liability   (77 )     (5,316 )
Other   221       395  
Changes in operating assets and liabilities:       
Current assets   (390 )     2,142  
Current liabilities   342       (3,068 )
Net cash provided by (used in) operating activities   2,246       (1,084 )
       
Cash Flows From Investing Activities:      
Lasers placed-in-service, net   (1,450 )     (607 )
Other   (436 )     140  
Net cash used in investing activities   (1,886 )     (467 )
       
Cash Flows From Financing Activities:      
Proceeds from term debt   -       1,500  
Repayment of term debt   (857 )     -  
Other financing activities   (304 )     (299 )
Net cash provided by (used in) financing activities    (1,161 )     1,201  
       
Effect of exchange rate changes on cash   -       4  
       
Net decrease in cash and cash equivalents   (801 )     (346 )
Cash and cash equivalents, beginning of period   3,928       3,303  
       
Cash and cash equivalents, end of period $ 3,127     $ 2,957  
               
 
Supplemental information:      
Cash paid for interest $ 1,934     $ 1,517  
       
Supplemental information of non-cash investing and financing activities:      
Conversion of senior secured convertible debentures into common stock $ 262     $ 248  
Conversion of convertible preferred stock into common stock $ -     $ 309  
Recognition of warrants issued as debt discount $ -     $ 47  
Reclassification of warrant liabilities to equity $ -     $ 1,541  
Acquisition of distributor rights asset and license liability $ 286     $ -  
Issuance of convertible preferred stock in exchange for convertible debentures $ 25,910     $ -  
               


STRATA Skin Sciences, Inc.

STRATA Skin Sciences, Inc. to Report 3rd Quarter 2017 Financial Results on Thursday, November 9

-- Conference Call to Follow at 4:30 p.m. EST --

HORSHAM, Pa., Oct. 26, 2017 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatological conditions, will release third quarter financial results on Thursday, November 9, after the market close.  STRATA Skin Sciences President and Chief Executive Officer, Frank J. McCaney, and Christina Allgeier, Chief Financial Officer, will host a conference call at 4:30 pm Eastern Time to review the Company’s progress and answer questions.

Conference Call Details:
Date:                 Thursday, November 9
Time:                 4:30 pm Eastern Time
Toll Free:                 877-874-1571
International:                 719-325-2281
Passcode:                 2299656
Webcast:                 www.strataskinsciences.com
                   
                   
Replays, available through November 23, 2017
Toll Free:                 844-512-2921
International:                 412-317-6671
Replay PIN:                 2299656
                   

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com
STRATA Skin Sciences is a medical technology company focused on the therapeutic and aesthetic dermatology market. Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

Investor Contacts:
Christina L. Allgeier                                                      
STRATA Skin Sciences, Inc.                                            
215 619 3267                                                                 
callgeier@strataskin.com                                                    

Bob Yedid
LifeSci Advisors, LLC
646-597-6989
Bob@LifeSciAdvisors.com 

 

Primary Logo

STRATA Skin Sciences, Inc.

STRATA Skin Sciences Announces Agreement with MedResults Network, a GPO Exclusive to the Aesthetic Medical Market

Agreement will enhance sales efforts of Nordlys and STRATAPEN

HORSHAM, Pa., Oct. 17, 2017 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, today announced signing an Agreement with MedResults Network (MRN). MRN is a Group Purchasing Organization that has more than 3,000 members including Dermatology Offices, Plastic Surgery Practices, Facial Plastic Practices, MediSpas and other providers. MRN researches product categories and selects advantaged products and then negotiates pricing for its membership. MRN focuses on the aesthetic market and has agreements with more than 50 vendors with only one vendor per product category.

Frank McCaney, President and Chief Executive Officer of STRATA, commented, “We are pleased to announce this relationship, which we believe has major benefits to STRATA. MRN has a loyal and long-term subscriber base and a reputation for providing value to its members. MRN provides additional value to its members by offering educational seminars and value to its vendors by active promotion of the products on agreement with them.”

“Furthermore, the products that STRATA introduced earlier this year in the Aesthetic space are outstanding, technology-advantaged products but lacked broad awareness. We believe that the reach and credibility of MRN will greatly benefit our sales efforts,” continued Mr. McCaney.

Jeff Routledge, President of MRN, added, “We are excited about the opportunity to assist STRATA in marketing their products to our membership. STRATA’s Aesthetic products, Nordlys and STRATAPEN, are excellent products that are in growing sectors of the Aesthetic market. MRN’s mission is to offer our members best-in-class products from world class companies through pricing that can only be achieved by leveraging the buying power of our 3,000 member practices and medical spas.”

The relationship between MRN and STRATA, which offers special pricing to MRN members, is being fully launched to the membership this week.

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)         
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

About MedResults Network  (www.medresultsnetwork.com)
MedResults Network is a free membership service that offers instant discounts and quarterly rebates at no risk or obligation. They have partnered with over 50 leading national vendors to negotiate cost savings for its members in product categories including dermal fillers, lasers, skin care, and more. Since 2008, MRN’s leadership team has worked closely with both their members and partners to ensure their continued growth and success.

Nordlys® Laser
The Nordlys Hybrid System incorporates a multitude of light-based technologies in an all-in-one compact platform – SWT (Selective Waveband Technology: the latest evolution and most efficacious utilization of Intense Pulsed Light), Nd:YAG and the FRAX 1550 non-ablative fractionated technology. The Nordlys laser uses Ellipse’s patented Dual Wave Filtration, a technology that has made the Nordlys the device of choice to over 6,000 cosmetic and dermatologic physician offices worldwide.  The Nordlys system has 16 indications cleared to date by the U.S. Food and Drug Administration (FDA).

STRATAPENTM
STRATAPEN MicroSystems is a micropigmentation device that provides advanced technology offering exceptional results. The STRATAPEN features both a patent-pending Biolock cartridge, which incorporates a seven-step safety system to prevent fluids from entering the motor, as well as a patent-pending removable nose cone.

Nordlys is a registered trademark of Ellipse A/S, Horsholm, Denmark.

Safe Harbor

This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including the Company’s ability to sell products to MRN members,  generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations beginning at any time in the future, the Company’s ability to license or acquire new products, the public’s reaction to the Company’s new advertisements and marketing campaign, access to capital markets, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:

Christina L. Allgeier, Chief Financial Officer         Bob Yedid, Managing Director
STRATA Skin Sciences, Inc.          LifeSci Advisors, LLC
215-619-3267          646-597-6989
callgeier@strataskin.com         Bob@LifeSciAdvisors.com


Primary Logo

STRATA Skin Sciences, Inc.

STRATA Skin Sciences Announces Closing of Agreement to Eliminate $40.7 Million of Outstanding Senior Secured Convertible Debentures

Share Exchange Strengthens Balance Sheet and Eliminates a Total of $4 Million of Interest Expense Over 4 Years

HORSHAM, Pa., Sept. 25, 2017 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (“STRATA”) (NASDAQ:SSKN), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, today announced the closing of a transaction in which holders of its 2.25% Senior Series A Secured Convertible Debentures and 4% Senior Secured Convertible Debentures, both due July 30, 2021, have agreed to exchange all of such debentures, with an aggregate principal amount of approximately $40.7 million, into 40,617 shares of newly created Series C Convertible Preferred Stock, convertible into 15.1 million shares of common stock.  In addition to eliminating the senior secured debt, the exchange has also eliminated the Company's obligation to pay approximately $4.0 million of interest payments over the next four years.

Frank McCaney, President and Chief Executive Officer of Strata, commented, “We are pleased to announce this share exchange agreement which we believe has major benefits to STRATA.   The exchange removes our obligation to repay the convertible debt in 2021 and, as there is no dividend due or interest rate on newly issued non-voting convertible preferred stock, it also eliminates our obligation to pay approximately $4 million of cash interest payments over the next four years.  The interest savings will also provide flexibility to carry out our strategic plan of external and organic growth.  An important part of STRATA’s growth strategy is to leverage our salesforce of 28 sales reps and our current base of over 750 recurring revenue dermatology and plastic surgery customers, and our existing infrastructure.”

“Furthermore, the reduction in debt will result in a simplified balance sheet,” continued Mr. McCaney. “We believe this will improve our access to the capital markets and increase our financial flexibility.”

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.  Upon conversion of the Series C Preferred Stock the holders would receive an aggregate of 15,098,981 shares.  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 are a common stock shareholder and are not redeemable by the holders.

With the completion of the exchange, the aggregate principal amount of STRATA’s debt has been reduced to approximately $12 million, comprised of the existing term note facility with MidCap Financial Trust.

As a result of the completion of the exchange agreement, the holders of the Series C Convertible Preferred Stock will own 85.9% of the common stock of the company on a fully-dilutive basis.  Prior to this exchange, as a comparison, the holders of its 2.25% Senior Series A Secured Convertible Debentures and 4% Senior Secured Convertible Debentures held 78.8% of the common stock of Strata on an if-converted basis, subject to the same 9.9% ownership limitation.

On September 14, 2017 the Company announced that STRATA’s shareholders had authorized STRATA, pursuant to NASDAQ Marketplace Rules, the issuance up to an aggregate of 15,098,981 shares of STRATA common stock upon conversion of the Series C Convertible Preferred Stock to be issued upon the proposed conversion of the debentures described above.

About STRATA Skin Sciences, Inc.
(www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

Trademarks
Ellipse and Nordlys are trademarks of Ellipse S/A, Horsholm, Denmark.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including the Company’s ability to generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations beginning at any time in the future, the Company’s ability to license or acquire new products, the Company’s ability to develop and leverage its sales force to sell new products, the public’s reaction the Company’s new advertisements and marketing campaign, access to capital markets, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:    
Christina L. Allgeier, Chief Financial Officer   Bob Yedid, Managing Director
STRATA Skin Sciences, Inc.    LifeSci Advisors, LLC
215-619-3267    646-597-6989
callgeier@strataskin.com   Bob@LifeSciAdvisors.com 

Primary Logo

STRATA Skin Sciences, Inc.

STRATA Skin Sciences to Present at the Rodman & Renshaw 19th Annual Global Investment Conference

HORSHAM, Pa., Sept. 11, 2017 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, today announced that Frank McCaney, President and Chief Executive Officer, will provide a corporate overview at the Rodman & Renshaw 19th Annual Global Investment Conference, being held September 11-12, 2017, in New York City.

Presentation Details:
Date: Tuesday, September 12
Time: 9:35am Eastern Time
Location: The Lotte New York Palace Hotel, The Louis Room

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

Investor Contacts:

Christina L. Allgeier, Chief Financial Officer                             Bob Yedid, Managing Director
STRATA Skin Sciences, Inc.    LifeSci Advisors, LLC
215-619-3267    646-597-6989
callgeier@strataskin.com   Bob@LifeSciAdvisors.com

 

Primary Logo

STRATA Skin Sciences, Inc.

STRATA Skin Sciences Reports Second Quarter 2017 Financial Results

Conference call and webcast, today at 4:30 pm Eastern Time

HORSHAM, Pa., Aug. 10, 2017 (GLOBE NEWSWIRE) -- (NASDAQ:SSKN) STRATA Skin Sciences, Inc. (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, today reported financial results for the quarter ended June 30, 2017.

Second Quarter and Recent Corporate Highlights

  • Second quarter total revenues were $8.7 million, up 12.5% year-over-year. 
  • Recurring XTRAC® revenues were $6.2 million, or 71.3% of total revenues. Recurring XTRAC revenues were up 1.8% year-over-year.
  • Installed base of XTRAC systems in the U.S. expands to 795 systems placed, up 6.3% from 748 at the end of the second quarter 2016.

“STRATA made solid progress in growing revenues in both the second quarter and first half of 2017, as we continue to position the company for further growth,” stated Frank McCaney, President and Chief Executive Officer of STRATA.  “We are continuing to focus on increasing the treatment volume of our existing systems by having our salesforce work with dermatologists to improve their understanding of the value of the XTRAC to their practices, including dermatological conditions that we have not promoted previously.  Moreover, our operational initiatives are showing positive results as gross margins have improved by several percentage points.”

"We are excited about the early acceptance of the STRATAPEN product, a differentiated aesthetic dermatological product that is specifically developed for micropigmentation, which incorporates a patent-pending technology cartridge which greatly reduces the risk of contamination," added Mr. McCaney. "The licensing agreement is consistent with our goal to become The Dermatological and Aesthetic Practice Partner, leveraging our existing infrastructure, including our current group of sales representatives, strong field service group, reimbursement capabilities and call center."

"By working with debt holders, who are also significant shareholders in STRATA, we were pleased to announce, the pending exchange of our convertible debt obligations for new shares of convertible preferred stock," noted Mr. McCaney. "If approved by shareholders on September 14th, the exchange will have the benefits of reducing our interest expense by over $4 million over the next four years and improving our financial flexibility."

"We have had a much slower than anticipated start to our sub-distribution of the Nordlys system from Ellipse USA the distributor, due to contract issues. All of the parties involved, including Ellipse USA, Ellipse A/S the manufacturer, and STRATA met this week, to resolve those issues. While the signatures of the parties are still pending, the issues have been favorably resolved and STRATA will be dealing directly with Ellipse A/S going forward, which will enhance our ability to market and distribute the Nordlys system," added Mr. McCaney.

"Moreover, we are in the process of hiring or reassigning sales professionals to focus on selling this product line. We believe strongly in the commercial potential for the Nordlys system, but currently estimate that we are six months behind our previously announced sales projections."

As a result of the lower than expected Nordlys sales and the issues with the US distributor, Ellipse USA, STRATA is withdrawing its prior forecast of $4.0 to $4.5 million in sales for the device and the contribution of $500,000-600,000 in non-GAAP adjusted EBITDA from April 2017 to the end of the calendar year.

Reported Financial Results
Revenues for the second quarter of 2017 were $8.7 million compared with revenues for the second quarter of 2016 of $7.7 million.

Net loss for the second quarter of 2017 was $1.2 million or ($0.52) per diluted share, which included other income of $0.1 million for the change in fair value of warrant liability, $1.6 million in interest expense, $1.7 million in depreciation and amortization expenses and $0.1 million for income tax expense. This compares with net income for the second quarter of 2016 of $0.5 million or ($1.17) per diluted share, which included other income of $3.2 million for the change in fair value of warrant liability, $1.2 million in interest expense and $1.6 million in depreciation and amortization expenses and $0.1 million for income tax expense.

Revenues for the six months of 2017 were $16.0 million compared with revenues for the six months of 2016 of $15.4 million.

Net loss for the six months of 2017 was $3.4 million or ($1.53) per diluted share, which included $2.9 million in interest expense, $3.2 million in depreciation and amortization expenses and $0.1 million for income tax expense. This compares with net loss for the six months of 2016 of $0.9 million or ($2.76) per diluted share, which included other income of $5.2 million for the change in fair value of warrant liability, $2.4 million in interest expense and $3.3 million in depreciation and amortization expenses and $0.1 million for income tax expense.

As of June 30, 2017, the Company had cash and cash equivalents of $3.9 million, compared with $3.9 million as of December 31, 2016.

Non-GAAP Measures

To supplement the Company’s consolidated financial statements, prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP adjusted EBITDA.

The Company’s reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of our current financial performance and to provide further information for comparative purposes.

Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of the Company’s core operating results and business outlook. In addition, the Company believes non-GAAP measures enhance the comparability of results against prior periods. Reconciliation to the most directly comparable GAAP measure of all non-GAAP measures included in this press release is as follows:

    Three Months Ended
June 30,
  Six Months Ended
June 30,
    2017   2016   2017   2016
                 
    (in thousands)
(Unaudited)
  (in thousands)
(Unaudited)
Net income (loss) as reported   ($1,205)   $498   ($3,440)   ($939)
Adjustments:                
Depreciation and amortization expense*   1,666   1,640   3,209   3,323
Interest expense, net   619   535   1,188   1,067
Non-cash interest expense   956   643   1,733   1,329
Income taxes   73   61   143   127
                 
EBITDA   2,109   3,377   2,833   4,907
                 
Stock-based compensation expense   21   116   73   286
Change in fair value of warrants   (128)   (3,199)   4   (5,184)
                 
Non-GAAP adjusted EBITDA   $2,002   $294   $ 2,910   $ 9

* Includes depreciation on lasers placed-in-service of $1,080 and $1,140 for the three months ended June 30, 2017 and 2016, respectively and $2,151 and $2,308 for the six months ended June 30, 2017 and 2016, respectively.

STRATA previously announced the scheduling of a conference call with investors to review the results of the first quarter. Following is the pertinent information for accessing that call. 

Conference Call Detail:

Date:   Thursday, August 10
Time:   4:30 pm Eastern Time
Toll Free:   888-299-7209
International:   719-325-4821
Passcode:   9972674
Webcast:   www.strataskinsciences.com

Replays available through August 24, 2017:

Toll Free:   844-512-2921
International:   412-317-6671
Passcode:   9972674
Webcast:   www.strataskinsciences.com


About STRATA Skin Sciences, Inc.

(www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions.  Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

Trademarks
Ellipse and Nordlys are trademarks of Ellipse S/A, Horsholm, Denmark.

Safe Harbor

This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including the Company’s ability to generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations beginning at any time in the future, the public’s reaction the Company’s new advertisements and marketing campaign, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
     
    June 30, 2017   December 31, 2016
    (unaudited)    
ASSETS        
Current assets:        
Cash and cash equivalents   $3,938   $3,928
Accounts receivable, net   3,560   3,390
Inventories   3,487   2,817
Other current assets   373   617
Property and equipment, net   9,396   10,180
Goodwill and intangible assets, net   22,101   22,215
Other non-current assets, net   47   46
Total assets   $42,902   $43,193
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Long-term debt and other notes payable   $ 11,716   $ 11,805
Accounts payable and accrued current liabilities   4,461   3,845
Current portion of deferred revenues   413   235
Senior secured convertible debentures, net   13,386   12,028
Warrant liability   109   105
Other long-term liabilities   1,203   456
Stockholders' equity   11,614   14,719
Total liabilities and stockholders’ equity   $ 42,902   $ 43,193
         


STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)
         
    For the Three Months Ended
June 30,
  For the Six Months Ended
June 30,
    2017   2016   2017   2016
                 
Revenues   $ 8,702   $ 7,739   $ 15,974   $ 15,359
                 
Cost of revenues   3,173   3,139   5,906   6,561
                 
Gross profit   5,529   4,600   10,068   8,798
                 
Operating expenses:                
Engineering and product development   423   634   898   1,159
Selling and marketing   3,077   3,523   6,227   7,233
General and administrative   1,720   1,901   3,321   4,002
    5,220   6,058   10,446   12,394
                 
Operating income (loss) before other income (expense), net   309   (1,458)   (378)   (3,596)
                 
Other income (expense), net:                
Interest expense, net   (1,575)   (1,178)   (2,921)   (2,396)
Change in fair value of warrant liability   128   3,199   (4)   5,184
Other (expense) income, net   6   (4)   6   (4)
    (1,441)   2,017   (2,919)   2,784
                 
Net (loss) income before income taxes   (1,132)   559   (3,297)   (812)
                 
Income tax expense   (73)   (61)   (143)   (127)
                 
Net (loss) income   ($ 1,205)   $  498   ($ 3,440)   ($ 939)
                 
                 
Net (loss) income per share:                
Basic   ($ 0.52)   $ 0.24   ($ 1.53)   ($ 0.45)
Diluted   ($ 0.52)   ($ 1.17)   ($ 1.53)   ($ 2.76)
                 
                 
Shares used in computing net (loss) income per share:                
Basic   2,327,041   2,117,897   2,252,301   2,092,914
Diluted   2,327,041   2,311,047   2,252,301   2,216,181
                 


STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
(In thousands, unaudited)
                 
    For the Six Months Ended
 June 30,
    2017   2016
Cash Flows From Operating Activities:        
Net loss   ($ 3,440 )   ($ 939 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        
Depreciation and amortization     3,209       3,323  
Stock-based compensation     73       286  
Amortization of debt discount     1,618       1,239  
Amortization of deferred financing costs     115       91  
Change in fair value of warrant liability     4       (5,184 )
Other     142       329  
Changes in operating assets and liabilities:        
Current assets     (574 )     1,817  
Current liabilities     550       (2,536 )
Net cash provided by (used in) operating activities     1,697       (1,574 )
         
Cash Flows From Investing Activities:        
Lasers placed-in-service, net     (1,205 )     (328 )
Other     (281 )     140  
Net cash used in investing activities     (1,486 )     (188 )
         
Cash Flows From Financing Activities:        
Proceeds from term debt     -       1,500  
Other financing activities     (201 )     (207 )
Net cash provided by (used in) financing activities     (201 )     1,293  
         
Effect of exchange rate changes on cash     -       7  
         
Net decrease in cash and cash equivalents     10       (462 )
Cash and cash equivalents, beginning of period     3,928       3,303  
         
Cash and cash equivalents, end of period   $ 3,938     $ 2,841  
                 
Supplemental information:                
Cash paid for interest   $ 1,133     $ 980  
                 
Supplemental information of non-cash investing and financing activities:                
Conversion of senior secured convertible debentures into common stock   $ 262     $ 248  
Recognition of warrants issued as debt discount   $ -     $ 47  
Reclassification of warrant liabilities to equity   $ -     $ 1,541  
Acquisition of distributor rights asset and license liability   $ 900     $ -  
                 
Investor Contacts:
Christina L. Allgeier, Chief Financial Officer
STRATA Skin Sciences, Inc.
215-619-3267
callgeier@strataskin.com

Bob Yedid, Managing Director
LifeSci Advisors, LLC
646-597-6989
Bob@LifeSciAdvisors.com

Primary Logo

STRATA Skin Sciences, Inc.

STRATA Skin Sciences, Inc. to Report 2nd Quarter 2017 Financial Results on Thursday, August 10

Conference Call to Follow at 4:30 p.m. EDT

HORSHAM, Pa., July 27, 2017 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatological conditions, will release second quarter financial results on Thursday, August 10, after the market close.  STRATA Skin Sciences President and Chief Executive Officer, Frank J. McCaney, and Christina Allgeier, Chief Financial Officer, will host a conference call at 4:30 pm Eastern Time to review the Company’s progress and answer questions.

Conference Call Details: 
Date: Thursday, August 10
Time: 4:30 pm Eastern Time
Toll Free: 888-299-7209
International: 719-325-4821
Passcode: 9972674
Webcast: www.strataskinsciences.com
   
Replays, available through August 24, 2017    
Toll Free: 844-512-2921
International:           412-317-6671
Replay PIN: 9972674


About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company focused on the therapeutic and aesthetic dermatology market. Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

Investor Contacts:
Christina L. Allgeier 
STRATA Skin Sciences, Inc. 
215 619 3267
callgeier@strataskin.com

Bob Yedid
LifeSci Advisors, LLC
646-597-6989
Bob@LifeSciAdvisors.com

Primary Logo

STRATA Skin Sciences, Inc.

STRATA Skin Sciences Announces Agreement to Eliminate $40.7 Million of Outstanding Senior Secured Convertible Debentures

Share Exchange Eliminates a Total of $4 Million of Interest Expense Over 4 Years

Significantly Strengthens Balance Sheet

Positions the Company to Continue to Execute on its Growth Strategy

HORSHAM, Pa., June 07, 2017 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN) (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, announced today that the holders of its 2.25% Senior Series A Secured Convertible Debentures and 4% Senior Secured Convertible Debentures, both due July 30, 2021, have agreed to exchange all of such debentures, with an aggregate principal amount of approximately $40.7 million, into 40,617 shares of newly created Series C Convertible Preferred Stock. In addition to eliminating this senior secured convertible debt, the exchange will also eliminate STRATA’s obligation to pay approximately $4 million of cash interest payments over the next four years. 

“We are pleased to announce this share exchange agreement, which despite the relative dilution resulting from the proposed exchange, we believe will be beneficial to STRATA,” stated Frank McCaney, President and Chief Executive Officer of STRATA. “As there is no dividend due or interest rate on the proposed non-voting convertible preferred stock we will issue if the transaction receives shareholder approval and closes, we will save approximately $4.0 million in aggregate interest payments over the next four years, providing us with additional flexibility to carry out our strategic plan of external and organic growth.  An important part of STRATA’s growth strategy is to leverage our current salesforce of 28 reps and over 750 dermatology and plastic surgery clients. We expect to be able to invest the savings resulting from this share exchange into potential acquisitions or licenses of new products we can market to this client base.  Since the beginning of 2017, we have successfully completed two important licensing deals of the best-in-class Nordlys lasers from Ellipse USA and the STRATAPEN product which is marketed for micropigmentation.  In addition, we plan to invest internally into our shorter treatment protocols for psoriasis with the goal of delivering a greater dose of light using our XTRAC platform, and other product enhancements.”

“Furthermore, the reduction in debt will result in a simplified balance sheet,” continued Mr. McCaney. “We believe this will improve our access to the capital markets, important in the event that we are able to identify appropriate licensing or acquisition targets.”

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.  The number of shares of common stock the holders would be able to receive upon conversion of the Series C Preferred Stock acquired in the proposed exchange transaction will be 15,098,981 shares.  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 are a common stock shareholder and are not redeemable by the holders.

The closing of the exchange, and the elimination of such senior convertible debentures, will occur within two business days of the approval of STRATA’s stockholders of the exchange, including the issuance of the shares of common stock issuable upon conversion of the shares of preferred stock, subject to customary closing conditions.

Upon completion of the exchange, the aggregate principal amount of STRATA’s debt will be reduced to approximately $12 million, comprised of the existing term note facility with MidCap Financial Trust.

This announcement is neither an offer to exchange nor a solicitation of an offer to exchange any of these securities.

Additional Information and Where to Find It

This press release may be deemed solicitation material in respect of the proposed issuance of preferred stock in the exchange for the convertible debentures and the subsequent conversion of those shares of preferred stock into common stock of STRATA, which is subject to stockholder approval.  STRATA intends to file with the Securities and Exchange Commission (the “SEC”) and mail to its stockholders a definitive proxy statement in connection with the proposed transaction.  This press release does not constitute a solicitation of any vote or approval.  STRATA’S STOCKHOLDERS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT STRATA AND THE PROPOSED TRANSACTION.  Investors and stockholders may obtain a free copy of the proxy statement and other documents filed with the SEC, when they become available, from the SEC’s website at www.sec.gov or by accessing STRATA’s website at www.strataskinsciences.com.

Certain Information Concerning Participants

STRATA, its directors, executive officers and certain other members of management and employees of STRATA may be deemed to be participants in the solicitation of proxies from STRATA’s stockholders with respect to the proposed exchange transaction.  Information about such persons who may, under the rules of the SEC, be considered participants in the solicitation of stockholders of STRATA in connection with the proposed transaction, and any interest they may have in the proposed transaction, will be set forth in the definitive proxy statement when it is filed with the SEC, which may be obtained as indicated above.  Investors and stockholders can find additional information about STRATA’s directors and executive officers in STRATA’s annual report on Form 10-K, which STRATA filed with the SEC on March 13, 2017. 

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)       
STRATA Skin Sciences is a medical technology company focused on the therapeutic and aesthetic dermatology market.  Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including the Company’s ability to obtain stockholder approval and to close the proposed exchange transaction, the Company’s ability to generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations beginning at any time in the future, the Company’s ability to incur savings and invest those savings internally or in potential acquisitions or licensing of new products and to access the capital markets in the future, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:

Christina L. Allgeier, Chief Financial Officer   Bob Yedid, Managing Director
STRATA Skin Sciences, Inc.    LifeSci Advisors, LLC
215-619-3267    646-597-6989
callgeier@strataskin.com   Bob@LifeSciAdvisors.com

 

Primary Logo

STRATA Skin Sciences, Inc.

STRATA Skin Sciences Reports First Quarter 2017 Financial Results

Licensing of Two New Products Demonstrates Execution on Corporate Strategy

Conference call and webcast, today at 4:30 pm Eastern Time

HORSHAM, Pa., May 11, 2017 (GLOBE NEWSWIRE) --  (NASDAQ:SSKN) STRATA Skin Sciences, Inc. (“STRATA”) a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, today reported financial results for the quarter ended March 31, 2017.

First Quarter and Recent Corporate Highlights

  • First quarter total revenues of $7.3 million, which included recurring XTRAC® revenue of $5.7 million, accounting for 78.8% of total revenues
  • Recurring XTRAC revenues were $5.7 million, up 3.7% year-over-year
  • Installed base of XTRAC systems in the U.S. expands to 791 systems placed, up 8.4% from 730 at the end of the first quarter 2016

“The first quarter saw continued progress on the commercial front as we continue to position STRATA for further growth. Both recurring revenues and XTRAC placements were up year over year.  Business development is a key element of our corporate strategy and we were pleased to announce in March that STRATA is now the exclusive U.S. distributor of the differentiated best-in-class Ellipse line of lasers, with the Nordlys representing the latest in non-ablative fractionated laser technology,” stated Frank McCaney, President and Chief Executive Officer of STRATA. “This agreement is consistent with our goal to become The Dermatological and Aesthetic Practice Partner, leveraging our existing infrastructure, including our current group of sales representatives, strong field service group, reimbursement capabilities and call center.  We expect that the Nordlys laser will have an immediate positive impact on STRATA’s financials and will contribute to overall sales and non-GAAP adjusted EBITDA for the balance of 2017.”

“We have also added the STRATAPEN Product, which we have licensed from an OEM.  This is a highly advantaged aesthetic dermatological product that is specifically developed for micropigmentation,” added Mr. McCaney. “The STRATAPEN utilizes the patent-pending Biolock™ cartridge, which greatly reduces the risk of contamination, and also the patent-pending removable and autoclavable nosecone, further improving safety. Both the Nordlys laser and the STRATAPEN are excellent complements to our XTRAC system, where we continue to fine tune our business with the goal of better serving the needs of our customers and the marketplace.”

Reported Financial Results
Revenues for the first quarter of 2017 were $7.3 million compared with revenues for the first quarter of 2016 of $7.6 million.

Net loss for the first quarter of 2017 was $2.2 million or ($1.03) per diluted share, which included other expense of $0.1 million for the change in fair value of warrant liability, $1.3 million in interest expense, $1.5 million in depreciation and amortization expenses and $0.1 million for income tax expense. This compares with a net loss for the first quarter of 2016 of $1.4 million or ($1.30) per diluted share, which included other income of $2.0 million for the change in fair value of warrant liability, $1.2 million in interest expense and $1.7 million in depreciation and amortization expenses.

As of March 31, 2017, the Company had cash and cash equivalents of $3.8 million, compared with $3.9 million as of December 31, 2016.

Non-GAAP Measures

To supplement the Company’s consolidated financial statements, prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP adjusted EBITDA.

The Company’s reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of our current financial performance and to provide further information for comparative purposes.

Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of the Company’s core operating results and business outlook. In addition, the Company believes non-GAAP measures enhance the comparability of results against prior periods. Reconciliation to the most directly comparable GAAP measure of all non-GAAP measures included in this press release is as follows:

      Three Months Ended
March 31,
      2017   2016
      (in thousands)
(Unaudited)
Net loss as reported   ($ 2,235 )   ($ 1,437 )
Adjustments:        
  Depreciation and amortization expense   1,542     1,684  
  Interest expense, net   569     532  
  Non-cash interest expense   777     686  
  Income taxes   70     66  
           
Non-GAAP EBITDA   723     1,531  
           
  Stock-based compensation expense   52     170  
  Change in fair value of warrants   132     (1,985 )
           
Non-GAAP adjusted EBITDA   $ 907     ($ 284 )
           

STRATA previously announced the scheduling of a conference call with investors to review the results of the first quarter. Following is the pertinent information for accessing that call. 

Conference Call Detail:

Date:   Thursday, May 11
Time:   4:30 pm Eastern Time
Toll Free:   888.857.6930
International:   719.325.2432
Passcode:   3263032
Webcast:   www.strataskinsciences.com

Replays available through May 25, 2017:

Toll Free:   844.512.2921
International:   412.317.6671
Passcode:   3263032
Webcast:   www.strataskinsciences.com

About STRATA Skin Sciences, Inc.
(www.strataskinsciences.com)           
STRATA Skin Sciences is a medical technology company focused on the therapeutic and aesthetic dermatology market.  Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

Trademarks
Ellipse and Nordlys are trademarks of Ellipse S/A, Horsholm, Denmark

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including the Company’s ability to generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations beginning at any time in the future, the public’s reaction the Company’s new advertisements and marketing campaign, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

 
STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
   
  March 31, 2017   December 31, 2016
  (unaudited)    
ASSETS      
Current assets:      
Cash and cash equivalents $ 3,763   $ 3,928
Accounts receivable, net   3,288     3,390
Inventories   2,670     2,817
Other current assets   804     617
Property and equipment, net   9,975     10,180
Goodwill and intangible assets, net   22,661     22,215
Other non-current assets, net   46     46
Total assets $ 43,207   $ 43,193
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
Long-term debt and other notes payable $ 11,758   $ 11,805
Accounts payable and accrued current liabilities   4,420     3,845
Current portion of deferred revenues   334     235
Senior secured convertible debentures, net   12,695     12,028
Warrant liability   237     105
Other long-term liabilities   1,171     456
Stockholders' equity   12,592     14,719
Total liabilities and stockholders’ equity $ 43,207   $ 43,193
           


STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)
     
    For the Three Months Ended March 31,
    2017   2016
         
Revenues   $ 7,272     $ 7,620  
         
Cost of revenues   2,733     3,422  
         
Gross profit   4,539     4,198  
         
Operating expenses:        
Engineering and product development   475     525  
Selling and marketing   3,150     3,710  
General and administrative   1,601     2,101  
    5,226     6,336  
         
Operating loss before other income (expense), net   (687 )   (2,138 )
         
Other income (expense), net:        
Interest expense, net   (1,346 )   (1,218 )
Change in fair value of warrant liability   (132 )   1,985  
    (1,478 )   767  
         
Loss before income taxes   (2,165 )   (1,371 )
         
Income tax expense   (70 )   (66 )
         
Net loss   ($ 2,235 )   ($ 1,437 )
         
Net loss per share:        
Basic   ($ 1.03 )   ($ 0.70 )
Diluted   ($ 1.03 )   ($ 1.30 )
         
         
Shares used in computing net loss per share:        
Basic   2,176,731     2,067,931  
Diluted   2,176,731     2,661,585  
             


STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
   
  For the Three Months Ended
 March 31,
  2017   2016
Cash Flows From Operating Activities:      
Net loss ($ 2,235 )   ($ 1,437 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Depreciation and amortization 1,543     1,684  
Stock-based compensation 52     170  
Amortization of debt discount 723     639  
Amortization of deferred financing costs 54     48  
Change in fair value of warrant liability 132     (1,985 )
Other 60     100  
Changes in operating assets and liabilities:      
Current assets 61     846  
Current liabilities 428     (1,461 )
Net cash provided by (used in) operating activities 818     (1,396 )
       
Cash Flows From Investing Activities:      
Lasers placed-in-service, net (683 )   (197 )
Other (200 )   15  
Net cash used in investing activities (883 )   (182 )
       
Cash Flows From Financing Activities:      
Proceeds from term debt -     1,500  
Other financing activities (100 )   (105 )
Net cash provided by (used in) financing activities (100 )   1,395  
       
Net decrease in cash and cash equivalents (165 )   (183 )
Cash and cash equivalents, beginning of period 3,928     3,303  
       
Cash and cash equivalents, end of period $ 3,763     $ 3,120  
           
           
Supplemental information:          
Cash paid for interest $ 540     $ 442  
           
Supplemental information of non-cash investing and financing activities:          
Conversion of senior secured convertible debentures into common stock $ 56     $ 165  
Recognition of warrants issued as debt discount $ -     $ 47  
Acquisition of distributor rights asset and license liability $ 900     $ -  
           


Investor Contacts:
Christina L. Allgeier, Chief Financial Officer
STRATA Skin Sciences, Inc.
215-619-3267
callgeier@strataskin.com

Bob Yedid, Managing Director
LifeSci Advisors, LLC
646-597-6989
Bob@LifeSciAdvisors.com

Primary Logo

STRATA Skin Sciences, Inc.

STRATA Skin Sciences, Inc. Announces the Appointment of James L. Coyne to its Board of Directors

Dr. R. Rox Anderson Steps Down as Board Member and will head the STRATA Skin Sciences, Inc. Scientific Advisory Board

HORSHAM, Pa., May 10, 2017 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN) (“STRATA”), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, announced the appointment of James L. Coyne to its Board of Directors. STRATA’s product offerings include the XTRAC excimer laser, the STRATApen MicroSystem, and the Nordlys multi-technology aesthetic laser. 

Jeffrey F. O'Donnell, Chairman of the STRATA Board, stated, “We are excited to have Jim Coyne join as our newest Board member. Jim has over 20 years of experience as both a CEO and an entrepreneur having successfully guided the development, growth and exits of several products and companies. As the Chief Executive Officer for privately held Modevity, LLC, Jim has provided leadership and vision in developing Modevity’s software products, including those in the life sciences and education fields.”

Mr. O’Donnell continued, “Jim’s breadth of experience and knowledge in marketing and selling technology products and services will bring a tremendous advantage to STRATA as we continue our growth to be the business partner of choice to physicians in the dermatologic, cosmetic and aesthetics fields.”   

Mr. O'Donnell also stated, "We are sorry that the demands of Dr. Anderson’s professional duties no longer allow him the time he would like to devote to STRATA as a member of our Board of Directors. However, at the same time we are excited to have such a world-renowned expert in the fields of dermatology and photomedicine head up our newly reconstituted Scientific Advisory Board.   Dr. Anderson’s experience with XTRAC goes back many years, and he led the team that developed the first XTRAC system at Massachusetts General Hospital. He has been at the forefront of a number of major discoveries and developments in the science of photomedicine.”

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company focused on the therapeutic and aesthetic dermatology market. Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation which utilizes the patent-pending Biolock™ cartridge; and Nordlys, a multi-technology aesthetic laser device.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:
Christina L. Allgeier, Chief Financial Officer
STRATA Skin Sciences, Inc.
callgeier@strataskin.com
215-619-3267

Bob Yedid, Managing Director
LifeSci Advisors, LLC
bob@LifeSciAdvisors.com
646-597-6989

Primary Logo

STRATA Skin Sciences, Inc.

STRATA Skin Sciences, Inc. Announces Launch of the Nordlys System and Announces 2017 Revenue Expectations for Nordlys Hybrid System

Nordlys System Featured in Podium Presentation by Dr. Vic Ross at ASLMS Meeting

HORSHAM, Pa., April 27, 2017 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN) (“STRATA”), a medical technology company dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, announced the  launch of the Nordlys device at the American Society for Lasers in Medicine and Surgery (ASLMS) which took place in San Diego from April 5-9, 2017.  STRATA is also announcing its expectations for revenue and earnings contributions from the sale of Nordlys products for the balance of 2017. STRATA is the exclusive United States distributor of the Nordlys laser manufactured by Ellipse Global A/S. 

Frank McCaney, CEO of STRATA said, “We are thrilled to launch the latest in non-ablative fractionated laser technology with the Nordlys device. Ellipse and STRATA have been working closely with globally renowned dermatologist Dr. Vic Ross to create the most advanced rejuvenation laser on the market. In a podium presentation at ASLMS, Dr. Ross demonstrated the uses and advantages of the Nordlys device, and presented the results of his study utilizing the Nordlys novel FRAX 1550 rolling fractional 1550nm laser on improving the effects of aging on facial skin.”

Mr. McCaney added, “We expect that the system can become the device of choice for dermatologists and other physicians practicing in the aesthetic medicine field.  We are forecasting sales of the device and accessories to be in the range of $4.0 to $4.5 million for 2017 which would contribute $500,000-600,000 in non-GAAP adjusted EBITDA.”

Mr. McCaney also stated that, “The Nordlys system has 24 indications cleared to date by the FDA.  It incorporates a multitude of light-based technologies all in one compact platform –SWT (Selective Waveband Technology: the latest evolution and most efficacious utilization of Intense Pulsed Light), Nd:YAG and the FRAX 1550 non-ablative fractionated technology. The Nordlys laser uses Ellipse’s patented Dual Wave Filtration, a technology that has made the Nordlys the device of choice to over 6,000 cosmetic and dermatologic physician offices worldwide.”

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company focused on the therapeutic and aesthetic dermatology market. Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystem, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the performance and market acceptability of the Nordlys device, and revenue and EBITDA targets, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due too financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:
Christina L. Allgeier, Chief Financial Officer
STRATA Skin Sciences, Inc.
callgeier@strataskin.com
215-619-3267

Bob Yedid, Managing Director
LifeSci Advisors, LLC
bob@LifeSciAdvisors.com
646-597-6989

Primary Logo

STRATA Skin Sciences, Inc.

STRATA Skin Sciences, Inc. to Report 1st Quarter 2017 Financial Results on Thursday, May 11

Conference Call to Follow at 4:30 p.m. EDT

HORSHAM, Pa., April 27, 2017 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN), a medical technology company dedicated to developing and commercializing innovative products for the treatment of serious dermatological disorders, and best-in-class products for the medical aesthetic market, will release first quarter financial results on Thursday, May 11, after the market close. STRATA Skin Sciences President and Chief Executive Officer, Frank J. McCaney, and Christina Allgeier, Chief Financial Officer, will host a conference call at 4:30 pm Eastern Time to review the Company’s progress and answer questions.

Conference Call Details:
Date: Thursday, May 11
Time: 4:30 pm Eastern Time
Toll Free: 888-857-6930
International: 719-325-2432
Passcode: 3263032
Webcast: www.strataskinsciences.com
   
Replays, available through May 25, 2017
Toll Free: 844-512-2921
International: 412-317-6671
Replay PIN: 3263032

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)

STRATA Skin Sciences is a medical technology company focused on the therapeutic and medical-aesthetic dermatology market. STRATA sales include the following products: the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystems, a micropigmentation device which provides advanced technology and exceptional results; and Nordlys, a multi-technology aesthetic laser device for treating vascular and pigmented lesions.

Investor Contacts:
Christina L. Allgeier
STRATA Skin Sciences, Inc.
215 619 3267
callgeier@strataskin.com

Bob Yedid
LifeSci Advisors, LLC
646-597-6989
Bob@LifeSciAdvisors.com

Primary Logo

STRATA Skin Sciences, Inc.

STRATA Skin Sciences, Inc. Announces 1-for-5 Reverse Stock Split

HORSHAM, Pa., April 06, 2017 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN) (“STRATA”) a medical technology company dedicated to developing and commercializing innovative products for the treatment and diagnosis of serious dermatologic disorders, today announced a reverse stock split of its shares of common stock at a ratio of 1-for-5 to become effective at 5:00 p.m. Eastern Time on April 6, 2017. At the opening of trading on April 7, 2017, STRATA’s common stock will begin trading on a split-adjusted basis and the number of shares of STRATA’s common stock outstanding will decrease from approximately 10.9 million pre-split shares to approximately 2.2 million post-split shares.  STRATA’s new CUSIP number will be 86272A 206, and its common stock will continue to trade on The Nasdaq Capital Market under the symbol “SSKN.”

The primary purpose of the reverse stock split is to enable STRATA to regain compliance with the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market. STRATA has until April 24, 2017 to regain compliance with the minimum bid price requirement and has submitted written notice to Nasdaq of its intention to cure the minimum bid price deficiency by effecting a reverse stock split. To regain compliance, the closing bid price of STRATA’s common stock must be at least $1.00 for a minimum of ten consecutive trading days.

In the reverse stock split, every five shares of STRATA’s common stock outstanding will automatically be changed and reclassified into one new share of common stock. No fractional shares will be issued in connection with the reverse stock split. Any fractional share of common stock that would otherwise have resulted from the reverse stock split will be rounded up to the nearest whole share.

The reverse stock split will affect all STRATA stockholders uniformly and will not affect any stockholder’s percentage ownership interests in STRATA (except to the extent that the reverse stock split results in any stockholders owning only a fractional share). Additionally, all STRATA convertible notes, convertible preferred stock, stock options, other equity awards and warrants outstanding immediately prior to the reverse stock split will be proportionately adjusted.

STRATA’s transfer agent, American Stock Transfer & Trust Company, LLC, which is also acting as the exchange agent for the reverse split, will provide instructions to stockholders regarding the process for exchanging share certificates.  Stockholders who hold their shares electronically in book-entry form at a brokerage firm need not take any action, as their shares will automatically be adjusted by their brokerage firm to reflect the reverse stock split. Beneficial holders may contact their bank, broker or nominee with any questions regarding the procedure of implementing the reverse stock split.

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company focused on the therapeutic and aesthetic dermatology market. Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; the STRATAPEN™ MicroSystems, marketed specifically for the intended use of micropigmentation; and Nordlys, a multi-technology aesthetic laser device.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the effective date and the trading date of the reverse stock split, and the expected effect of the reverse stock split on the trading price of the Company’s common stock and the Company’s ability to comply with Nasdaq’s continued listing standards, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:
Christina L. Allgeier, Chief Financial Officer
STRATA Skin Sciences, Inc.
callgeier@strataskin.com
215-619-3267

Bob Yedid, Managing Director
LifeSci Advisors, LLC
bob@LifeSciAdvisors.com
646-597-6989

Primary Logo

STRATA Skin Sciences, Inc.

Psoriasis Drugs Among Leaders in Drug Side Effect Reporting

Is it time to look at psoriasis treatment in a new light?

HORSHAM, PA, March 31, 2017 /PRNewswire/ - According to a recent USA Today Network Exclusive analysis*, the number of drug side effect reports filed with the U.S. Food and Drug Administration (FDA) has increased five-fold from 2004 to 2015. This equated to more than 1.2 million reports in 2015.1

This analysis showed that the drugs used to treat psoriasis and other autoimmune disorders such as rheumatoid arthritis and Crohn's disease are among those with the greatest number of reports.1 These drugs work by suppressing the immune system, which can increase the risk of serious or even potentially deadly infections such as tuberculosis. They have also been associated with blood diseases, cancer and lymphomas.2

The article goes on to mention Humira (approved to treat 10 different conditions including psoriasis) specifically as an autoimmune drug that has been linked to over 200,000 side effect reports since 2013, including 4,200 deaths.1

The other drugs cited as being top contributors in terms of number of side effect reports are those used to treat multiple sclerosis, a type of cancer, and those used to treat diabetes.1

The authors of this exclusive, Matthew Wynn* and John Fauber*, acknowledge that although the dramatic increase in reports may be indicative of a growing number of patients being harmed, it could also be a result of more vigilant reporting, which is a goal the FDA is striving to achieve. They go on to say that it very well may be that the increase is a result of a combination of the two, according to experts.1

In addition to the autoimmune drugs that are used to treat psoriasis, topical therapies (such as creams and ointments), other drugs taken orally and light therapy are treatment options that can be considered.3 Light therapy, as stated in the American Academy of Dermatology guidelines of care for the management of psoriasis:3

"…is effective and economical without many of the potential toxicities [side effects] of traditional and biologic [autoimmune drug] therapies."    

At STRATA Skin Sciences, Inc. (NASDAQ:SSKN) ("STRATA"), we are committed to helping patients suffering from serious dermatologic conditions, such as psoriasis, through our innovative medical technologies including our XTRAC targeted-light therapy.

What makes XTRAC Therapy an attractive option for patients with psoriasis, especially when considering this new information on drug side effect reporting, is that it works very effectively but is associated with virtually no side effects. Over 100,000 patients have been safely treated with XTRAC Therapy.4 Some patients may experience a reaction similar to sunburn or some blistering at the area treated, and in some cases an increase in skin pigmentation may occur.

XTRAC Therapy is FDA-cleared and has been shown to provide true remission for patients with psoriasis.4 It has also demonstrated in clinical studies excellent efficacy with extremely high clearance rates (greater than 95% in just over 10 treatments).5 Furthermore, XTRAC Therapy has been proven to be effective in treating thick, scaled plaques on the knees and elbows, which are difficult-to-treat areas and often resistant to conventional treatments.6

Almost any patient with plaque psoriasis can be considered for XTRAC Therapy – patients with mild, moderate or severe disease are all suitable candidates. For more information on XTRAC Therapy, call 1-800-800-4758 or visit www.XtracClear.com.

About STRATA Skin Sciences, Inc.
(www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company focused on the therapeutic and diagnostic dermatology market. Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions.

* John Fauber is a reporter for the Milwaukee Journal Sentinel. Matthew Wynn is a reporter for MedPage Today. The original USA Today Network Exclusive story was reported as a joint project of the Journal Sentinel and MedPage Today, which provides a clinical perspective for physicians on breaking medical news.

  1. Wynn M and Fauber J for USA Today Network. Analysis: reports of side effects increase fivefold in 12 years. http://www.usatoday.com/story/news/nation-now/2017/03/19/analysis-reports-drug-side-effects-increase-fivefold-12-years/99384190/, accessed March 23, 2017.
  2. National Institute of Arthritis and Musculoskeletal and Skin Diseases. Questions and answers about psoriasis. https://www.niams.nih.gov/Health_Info/Psoriasis/default.asp#5, accessed March 23, 2017.
  3. Menter A, Korman NJ, Elmets CA, for the American Academy of Dermatology Work Group. Guidelines of care for the management of psoriasis and psoriatic arthritis. Section 6. Guidelines of care for the treatment of psoriasis and psoriatic arthritis: case-based presentations and evidence-based conclusions. J Am Acad Dermatol 2011;65:137-174.
  4. Data on file. STRATA Skin Sciences, Inc.
  5. Taneja A, Treha M, Taylor C. 308-nm excimer laser for the treatment of psoriasis – induration-based dosimetry. Arch Dermolol. vol 139, June 2003, pp. 759-764.
  6. Gerber W, Arheliger B, Ha TA, Hermann J and Ockenfeis HM. Ultraviolet B 308-nm excimer laser treatment of psoriasis: a new phototherapeutic approach. British J Derm, vol 149, December 2003, pp. 1250-1258.

 

SOURCE STRATA Skin Sciences, Inc.

Christina L. Allgeier, Chief Financial Officer, STRATA Skin Sciences, Inc., 215-619-3267, callgeier@strataskin.com; Bob Yedid, Managing Director, LifeSci Advisors, LLC, 646-597-6989, Bob@LifeSciAdvisors.co

STRATA Skin Sciences, Inc. Announces a Strategic Alliance With Ellipse USA, LLC

  • Leverages STRATA’s Current Sales, Service and Support Organizations and Strong Relationships with the Dermatology Community
  • Ellipse Offers a Broad Range of Dermatological Lasers with over 6,000 Placements Worldwide

HORSHAM, Pa., March 14, 2017 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN) (“STRATA”) a medical technology company dedicated to developing and commercializing innovative products for the treatment and diagnosis of serious dermatologic disorders, today announced an agreement to license the exclusive US distribution rights for the Ellipse family of products from Ellipse USA.

This uniquely designed class of laser with patented Dual Mode Filtration is manufactured in Denmark by Ellipse Global A/S under the brand name Nordlys.  Nordlys utilizes the latest advancements in cosmetic and medical technology and offers a superior patient, provider and practice experience. There is no requirement for medications or needles, and little to no downtime.

The Ellipse systems have 24 indications cleared to date by the FDA and have the ability to use a multitude of light based technologies all in one compact platform –SWT (Selective Waveband Technology: the latest evolution and advancements of Intense Pulsed Light), Nd:YAG and the FRAX 1550 non-ablative fractionated technology. Ellipse users include leading dermatologists, plastic surgeons and cosmetic physicians with over 6,000 placements worldwide.

Under the terms of the agreement, STRATA will be the exclusive distributor of Ellipse lasers for three years, with an automatic extension out to a five-year term as long as minimum sales targets are achieved.  STRATA will pay an annual license fee as well as a commission for each system sold.  As part of the transaction, the majority of sales and marketing professionals from Ellipse USA will be joining STRATA’s team.

Frank McCaney, President and Chief Executive Officer of STRATA, commented, “We are excited to enter into this agreement with Ellipse USA, LLC, with STRATA becoming the exclusive U.S. distributor of the differentiated best-in-class Ellipse line of lasers.  The agreement is consistent with our core strategy to become The Dermatological and Aesthetic Practice Partner of Choice, by leveraging our existing infrastructure, including our substantial group of 23 sales representatives, a strong field service group, reimbursement capabilities and call center."

“We will continue to look for complementary dermatologic and aesthetic products via thoughtful business development in order to build STRATA’s revenue base and add more products to better serve our existing call points,” added Mr. McCaney.

Jon Urbana, Founder of Ellipse USA, LLC. stated, "With global success and a loyal physician following, our Ellipse family is excited to continue the journey of providing the world’s most proven and progressive physicians with best-in-class technology. STRATA is the ideal partner as we continue to build our distribution network within the aesthetic marketplace here in the U.S.  We look forward to increasing market penetration of our proprietary lasers in the U.S. by taking advantage of STRATA’s infrastructure and strong relationships in the dermatology community.”

About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company focused on the therapeutic and diagnostic dermatology market. Its products include the XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions.

About Ellipse and Ellipse USA
Ellipse is a privately held company, with headquarters in Copenhagen, Denmark, that develops, manufactures and markets high-quality laser and SWT based systems. Since 1997, Ellipse has been on the forefront of non-invasive rejuvenation technology; driven by a single obsession: to provide the most efficacious and versatile skin solutions. Offering unsurpassed clinical and technical support as well as clinically proven, safe and effective solutions, Ellipse currently markets its products to more than 50 countries worldwide. Ellipse USA is the USA Distributor for Ellipse products. For more information, refer to www.ellipse.com.

Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, including the Company’s ability to generate the anticipated revenue stream, the Company’s ability to generate sufficient cash flow to fund the Company’s ongoing operations beginning at any time in the future, the Company’s ability to execute on on-going or new R&D or treatment protocol programs, the Company’s ability expand its product offerings, the public’s reaction the Company’s new advertisements and marketing campaign,  the Company’s ability to build a leading franchise in medical dermatology, and the Company’s ability to leverage its sales and field service forces, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due too financial, economic, business, competitive, market, regulatory and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all of these forward-looking statements may prove to be incorrect or unreliable. The Company assumes no duty to update its forward-looking statements and urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.

Investor Contacts:
Christina L. Allgeier, Chief Financial Officer
STRATA Skin Sciences, Inc.
callgeier@strataskin.com
215-619-3267

Bob Yedid, Managing Director
LifeSci Advisors, LLC
bob@LifeSciAdvisors.com
646-597-6989

Primary Logo

STRATA Skin Sciences, Inc.

STRATA Skin Sciences Reports Fourth Quarter and Full Year 2016 Financial Results

Company is cash flow positive for the fourth quarter

Conference call and webcast, today at 4:30 pm Eastern Time

HORSHAM, Pa., March 09, 2017 (GLOBE NEWSWIRE) -- (NASDAQ:SSKN) STRATA Skin Sciences, Inc. (“STRATA”) a medical technology company dedicated to developing and commercializing innovative products for the treatment and diagnosis of serious dermatological disorders, today reported financial results for the quarter and year ended December 31, 2016.

Fourth Quarter and Recent Corporate Highlights

  • Fourth quarter revenues were $8.6 million
  • Recurring XTRAC revenues were $6.7 million, down 10.0% year-over-year and up 8.5% sequentially
  • Installed base of XTRAC systems in the U.S. expanded to 775 systems placed, up 7.9% from 718 at the end of the fourth quarter 2015
  • Company generated positive operating cash flow for the fourth quarter

“We are in the process of implementing a strategy that we believe will enhance our offering to the dermatology community and accelerate growth in our business,” stated Frank McCaney, President and Chief Executive Officer of STRATA. “The initiatives we rolled out in recent months, together with work conducted under my predecessor, had a positive impact on our Q4 results. We continue to believe that medical office practices are undergoing significant changes and we are adjusting our business with the goal of better serving the needs of our customers and the marketplace. Our response to those changes underlies our longer term thinking about how best to grow our enterprise.”

“We have prioritized the clinical development work on our Optimal Therapeutic Dose for XTRAC and are expanding outreach for building awareness about the use of XTRAC for vitiligo, atopic dermatitis (which includes eczema, particularly pediatric eczema) and scalp psoriasis. We believe that there is the potential for significant revenue growth through these campaigns. We are also active in business development with the objective of bringing other products for our call points into our available portfolio. We believe that by providing a set of unique and advantaged products we can help our customers to become more successful, thereby establishing STRATA as the Preferred Partner to the dermatology community.”

Financial Results for the Fourth Quarter 2016
Revenues for the fourth quarter of 2016 were $8.6 million compared with revenues for the fourth quarter of 2015 of $9.5 million, a decrease of 8.9%.

Net loss for the fourth quarter of 2016 was $0.9 million or ($0.09) per diluted share, which included other income of $0.1 million for the change in fair value of warrant liability, $1.3 million in interest expense, $1.5 million in depreciation and amortization expenses and $0.1 million for income tax expense. This compares with a net loss for the fourth quarter of 2015 of $0.6 million or ($0.21) per diluted share, which included other income of $2.5 million for the change in fair value of warrant liability, $1.5 million in interest expense, $1.7 million in depreciation and amortization expenses and $0.1 million for income tax expense.

Financial Results for the Full Year 2016
Revenues for the full year 2016 were $31.8 million compared with revenues of $18.5 million in 2015. Reported revenues are not directly comparable to the prior year period since the Company acquired certain assets of PhotoMedex as of June 22, 2015. 

Net loss for the year 2016 was $3.3 million or ($0.75) per diluted share, which included other income of $5.4 million for the change in fair value of warrant liability, $4.9 million in interest expense, $6.4 million in depreciation and amortization expenses and $0.3 million for income tax expense. This compares with a net loss in 2015 of $27.9 million or ($3.27) per diluted share, which included a deemed dividend of $3.0 million, other income of $1.8 million for the change in fair value of warrant liability, $4.8 million in inventory obsolescence charges; $10.2 million in interest expense, $0.5 million in acquisition costs and $4.0 million in depreciation and amortization expenses.

As of December 31, 2016 the Company had cash, cash equivalents and short-term investments of $3.9 million, compared with $3.3 million as of December 31, 2015.

In order to provide information that is helpful to investors relating to the historical and current growth of the XTRAC recurring revenues, the Company is providing the following table, including information obtained from the predecessor company’s disclosures of previous period results.

Q4 2016 Supplemental Proforma Financial Information
As of December 31, 2016, Q4 Earnings Report
(unaudited)
(in thousands)
                           
      2015  
    Qtr. 1     Qtr. 2     Qtr. 3     Qtr. 4     YTD  
XTRAC Recurring Revenue   $ 5,376 *   $ 6,678 **   $ 7,032     $ 7,479     $ 26,565 ***
                               
                               
      2016  
    Qtr. 1     Qtr. 2     Qtr. 3     Qtr. 4     YTD  
XTRAC Recurring Revenue   $ 5,528     $ 6,093     $ 6,205     $ 6,732     $ 24,558  

*As reported by PhotoMedex, Inc.
**$104 reported by the Company; balance reported by PhotoMedex, Inc.
***$14,615 reported by the Company; balance reported by PhotoMedex, Inc.

Non-GAAP Measures
To supplement the Company’s consolidated financial statements, prepared in accordance with GAAP, the Company provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP adjusted EBITDA.

The Company’s reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of our current financial performance and to provide further information for comparative purposes.

Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of the Company’s core operating results and business outlook. In addition, the Company believes non-GAAP measures enhance the comparability of results against prior periods. Reconciliation to the most directly comparable GAAP measure of all non-GAAP measures included in this press release is as follows:

      Three Months Ended
December 31,
  Year Ended
December 31,
        2016       2015       2016       2015  
      (in thousands)
(Unaudited)
  (in thousands)
(Unaudited)
Net loss as reported   $ (887 )   $   (593 )   $ (3,335 )   $  (24,947 )
Adjustments:                
  Depreciation and amortization expense *     1,522       1,703       6,366       4,051  
  Interest expense, net      623       535       2,227       1,329