News
12/06/2017   STRATA Skin Sciences Announces Departure of Chief Financial Officer

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

Primary Logo

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 

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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

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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

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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

 

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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

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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

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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

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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

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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

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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  
  Non-cash interest expense     706       927       2,673       8,871  
  Income taxes     64       119       255       119  
                   
  EBITDA     2,028       2,691       8,186       (10,577 )
                   
  Stock-based compensation expense     (288 )     270       113       1,753  
  Change in fair value of warrants     (80 )     (2,493 )     (5,396 )     (1,814 )
  Acquisition costs     -       -       -       456  
  Impairment of property and equipment     -       -       -       920  
  Inventory valuation reserves     -       -       -       4,818  
                   
Non-GAAP adjusted EBITDA   $ 1,660     $ 468     $  2,903     $ (4,444 )

* Includes depreciation on lasers placed-in-service of $1,052 and $1,185 for the three months ended December 31, 2016 and 2015, respectively, and $4,410 and $2,364 for the year ended December 31, 2016 and 2015, respectively.

STRATA previously announced the scheduling of a conference call with investors to review the results of the fourth quarter and year ended December 31, 2016. Following is the pertinent information for accessing that call. 

Conference Call Detail:

Date:   Thursday, March 9, 2017
Time:   4:30 pm Eastern Time
Toll Free:   800-327-5138
International:   719-325-2250
Passcode:   1973486
Webcast:   www.strataskinsciences.com

Replays available through March 23, 2017:

Toll Free:   844-512-2921
International:   412-317-6671
Passcode:   1973486
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 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.

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, and the Company’s ability to build a leading franchise in medical dermatology, 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       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)
   
  December 31, 2016   December 31, 2015
       
ASSETS      
Current assets:      
Cash and cash equivalents $   3,928   $   3,303
Restricted cash   -     15
Accounts receivable, net   3,390     4,068
Inventories, net   2,817     4,128
Other current assets   617     465
Property and equipment, net   10,180     13,851
Goodwill and other intangible assets   22,215     24,155
Other non-current assets, net   46     94
Total assets $ 43,193   $ 50,079
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
Note payable $   339   $    299
Current portion of long-term debt   1,714     -
Accounts payable and accrued current liabilities   3,845     6,607
Current portion of deferred revenues   235     173
Senior secured convertible debentures, net   12,028     9,839
Long-term debt, net   9,752     9,851
Warrant liability   105     7,042
Other long-term liabilities   456     181
Stockholders' equity   14,719     16,087
Total liabilities and stockholders’ equity $ 43,193   $ 50,079
       

 

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
December 31,
  For the Year Ended
December 31,
      2016       2015       2016       2015  
                 
Revenues   $ 8,631     $ 9,480     $ 31,757     $ 18,495  
                 
Cost of revenues     3,005       3,493       12,636       13,719  
                 
Gross profit     5,626       5,987       19,121       4,776  
                 
Operating expenses:                
Engineering and product development     388       740       1,929       2,029  
Selling and marketing     3,079       3,553       13,152       9,194  
General and administrative     1,755       3,209       7,637       10,028  
      5,222       7,502       22,718       21,251  
                 
Operating loss before other income (expense), net     404       (1,515 )     (3,597 )     (16,475 )
                 
Other income (expense), net:                
Interest expense, net     (1,329 )     (1,462 )     (4,900 )     (10,200 )
Change in fair value of warrant liability     80       2,493       5,396       1,814  
Other (expense) income, net     22       10       21       33  
      (1,227 )     1,041       517       (8,353 )
                 
Net loss before income taxes     (823 )     (474 )     (3,080 )     (24,828 )
                 
Income tax expense     (64 )     (119 )     (255 )     (119 )
                 
Net loss     (887 )     (593 )     (3,335 )     (24,947 )
                 
Deemed dividend related to warrant modification     -       -       -       (2,962 )
                 
Net loss attributable to common stockholders   $ (887 )   $ (593 )   $ (3,335 )   $ (27,909 )
                 
Net loss per share:                
  Basic   $ (0.08 )   $ (0.06 )   $ (0.31 )   $ (3.27 )
  Diluted   $ (0.09 )   $ (0.06 )   $ (0.75 )   $ (3.27 )
                 
                 
Shares used in computing net loss per share:                
  Basic     10,768,533       10,147,066       10,595,068       8,536,699  
  Diluted     10,768,533       10,147,066       11,578,573       8,536,699  
                 

 

STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
 
    For the Year Ended
December 31,
      2016       2015  
Cash Flows From Operating Activities:        
Net loss   $ (3,335 )   $ (24,947 )
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization     6,366       4,051  
Stock-based compensation     113       1,753  
Amortization of debt discount     2,473       8,479  
Amortization of deferred financing costs     200       391  
Change in fair value of warrant liability     (5,396 )     (1,814 )
Impairment of long-lived assets     -       920  
Inventory write-offs     -       4,818  
Other     484       139  
Changes in operating assets and liabilities:        
Current assets     2,093       (833 )
Current liabilities     (2,676 )     473  
 Net cash provided by (used in) operating activities     322       (6,570 )
         
Cash Flows From Investing Activities:        
Lasers placed-in-service, net     (1,008 )     (1,689 )
Other     140       (50 )
Acquisition costs, net of cash received     -       (42,500 )
 Net cash used in investing activities     (868 )     (44,239 )
         
Cash Flows From Financing Activities:        
Proceeds from convertible debentures     -       32,500  
Proceeds from senior notes     -       10,000  
Repayment of senior notes     -       (10,000 )
Proceeds from term debt     1,500       10,500  
Other financing activities     (333 )     (330 )
 Net cash provided by financing activities     1,167       42,670  
         
Effect of exchange rate changes on cash     4       8  
         
Net decrease in cash and cash equivalents     625       (8,131 )
Cash and cash equivalents, beginning of period     3,303       11,434  
         
Cash and cash equivalents, end of period   $   3,928     $ 3,303  


Supplemental information:            
Cash paid for interest   $ 2,054   $ 1,188  
             
Supplemental information of non-cash investing and financing activities:            
Modification of warrants recorded as a deemed dividend   $ -   $ 2,962  
Conversion of senior secured convertible debentures into common stock   $ 265   $ 4,815  
Reclassification of property and equipment to inventory, net   $ -   $ 107  
Reclassification of warrant liability to (from) stockholders’ equity   $ 1,541   $ (5,399 )
Recognition of debt discount and beneficial conversion feature on long-term debt   $ -   $ 27,300  
Recognition of warrants issued with term note credit facility as debt discount    $ 47   $ 321  
Prepaid insurance financed with notes payable   $ 372   $ 334  
Recognition of warrants issued in connection with financings   $ -   $ 2,958  

Primary Logo

STRATA Skin Sciences, Inc.

STRATA Skin Sciences, Inc. to Report Fiscal Year End 2016 Financial Results on Thursday, March 9

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

HORSHAM, Pa., Feb. 23, 2017 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN), a medical technology company dedicated to developing and commercializing innovative products for the diagnosis and treatment of serious dermatological disorders, will release fiscal year ended December 31, 2016 financial results on Thursday, March 9, after the market close.  STRATA Skin Sciences President and Chief Executive Officer, Frank J. McCaney, and Chief Financial Officer, Christina Allgeier, 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 9, 2017
Time: 4:30 pm Eastern Time
Toll Free: 800-327-5138
International: 719-325-2250
Passcode: 1973486
Webcast: www.strataskinsciences.com
   
Replays, available through March 23, 2017
   
Toll Free: 844-512-2921
International: 412-317-6671
Replay PIN: 1973486
   

About STRATA Skin Sciences, Inc.  (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company focused in the 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; and the MelaFind System used to assist in the identification and management of melanoma skin cancer.

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 Reports Third Quarter 2016 Financial Results

Company is cash flow positive for the third quarter

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

HORSHAM, Pa., Nov. 10, 2016 (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 ended September 30, 2016.

Third Quarter and Recent Corporate Highlights

  • Third quarter revenues were $7.7 million
  • Recurring XTRAC revenues were $6.2 million, down 11.8% year-over-year and up 1.8% sequentially
  • Installed base of XTRAC systems in the U.S. expanded to 760 systems placed, up 8.9% from 698 at the end of the third quarter 2015
  • Company generated positive operating cash flow for the third quarter and expects to be cash flow positive in the fourth quarter 2016
  • Podium presentation of new XTRAC data at Fall Clinical Dermatology Conference
  • On October 31, appointed Frank McCaney as President and CEO

“The STRATA business has been in its current form for about a year. We now have a good sense of what has been working well with the XTRAC business, where the challenges lie, and what actions we need to take to address them,” stated Frank McCaney, President and Chief Executive Officer. “I believe that gives us the opportunity to focus on growing the core business through technology enhancements, improved treatment protocols for patients and new marketing initiatives. Importantly, we believe that dermatology office practices are undergoing significant changes, and we plan to take an approach that helps dermatologists and their practices be more efficient, more successful and to better manage the business aspects of their offices.”

“Going forward, one of the priorities of our strategic plan for STRATA will be to expand our product offerings,” continued Mr. McCaney. “The Company already has significant resources in a dedicated dermatology sales organization, a Field Service force, and Field Clinical Specialists as well as a Call Center for Patient Recruitment and a Reimbursement Hotline. I will be working with our senior management to evaluate these resources and to determine if any further improvements need to be made. Together, I believe our current capabilities are important assets in the dermatology space that can and should be leveraged.  Overall, I believe we have the talent, innovation and the infrastructure to enhance our value proposition to our customers and ultimately the value to our shareholders.”  

Reported Financial Results

Revenues for the third quarter of 2016 were $7.7 million compared with revenues for the third quarter of 2015 of $8.3 million, a decrease of 6.7%.

Net loss for the third quarter of 2016 was $1.5 million or ($0.14) 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, $1.5 million in depreciation and amortization expenses and $0.1 million for income tax expense. This compares with a net loss for the third quarter of 2015 of $12.2 million or ($1.29) per diluted share, which included a deemed dividend of $3.0 million, other expense of $1.3 million for the change in fair value of warrant liability, $5.6 million in interest expense and $1.7 million in depreciation and amortization expenses.

Revenues for the nine months of 2016 were $23.1 million compared with revenues for the nine months of 2015 of $9.0 million. Reported revenues for the nine months ended September 30, 2016 are not comparable to the prior year period since the Company acquired certain assets of PhotoMedex as of June 22, 2015. 

Net loss for the nine months of 2016 was $2.4 million or ($0.71) 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, $4.8 million in depreciation and amortization expenses and $0.2 million for income tax expense. This compares with a net loss for the nine months of 2015 of $27.3 million or ($3.42) per diluted share, which included a deemed dividend of $3.0 million, other expense of $0.7 million for the change in fair value of warrant liability, $4.8 million in inventory obsolescence charges; $8.7 million in interest expense, $0.5 million in acquisition costs and $2.3 million in depreciation and amortization expenses.

As of September 30, 2016 the Company had cash, cash equivalents and short-term investments of $3.0 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.

Q3 2016 Supplemental Proforma Financial Information
As of September 30, 2016, Q3 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       -     $ 17,826    
                                           

*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
September 30,
  Nine Months Ended
September 30,
      2016
  2015
  2016
  2015
      (in thousands)
(Unaudited)
  (in thousands)
(Unaudited)
                                 
Net loss as reported   $ (1,509 )   $ (9,234 )   $ (2,448 )   $ (24,354 )
Adjustments:                
  Depreciation and amortization expense *     1,521       1,710       4,844       2,348  
  Interest expense, net     537       506       1,604       794  
  Non-cash interest expense     638       5,071       1,967       7,944  
  Income taxes     64       -       191       -  
                   
EBITDA     1,251       (1,947 )     6,158       (13,268 )
                   
  Stock-based compensation expense     116       1,007       401       1,483  
  Change in fair value of warrants     (132 )     1,329       (5,316 )     679  
  Acquisition costs     -       -       -       456  
  Impairment of property and equipment     -       -       -       920  
  Inventory valuation reserves     -       -       -       4,818  
                   
Non-GAAP adjusted EBITDA   $ 1,235     $ 389     $ 1,243     $ (4,912 )
                                 

* Includes depreciation on lasers placed-in-service of $1,040 and $1,169 for the three months ended September 30, 2016 and 2015, respectively, and $3,329 and $1,169 for the nine months ended September 30, 2016 and 2015, respectively.

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:   Thursday, November 10, 2016
Time:   4:30 pm Eastern Time
Toll Free:   888-503-8175
International:   719-457-2631
Passcode:   5890827
Webcast:   www.strataskinsciences.com
     

Replays available through November 26, 2016:

Toll Free:   844-512-2921
International:   412-317-6671
Passcode:   5890827
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 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, and the MelaFind® system used to assist in the identification and management of melanoma skin cancer.

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 to expand its product offerings,  the public’s reaction to the Company’s new advertisements and marketing campaign, and the Company’s ability to build a leading franchise in medical dermatology, 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)
     
    September 30, 2016   December 31, 2015
    (unaudited)    
ASSETS        
Current assets:        
Cash and cash equivalents   $ 2,957     $ 3,303  
Restricted cash     -       15  
Accounts receivable, net     2,936       4,068  
Inventories, net     3,229       4,128  
Other current assets     266       465  
Property and equipment, net     10,848       13,851  
Goodwill and other intangible assets     22,668       24,155  
Other non-current assets, net     46       94  
Total assets   $ 42,950     $ 50,079  
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Note payable   $ -     $ 299  
Current portion of long-term debt     857       -  
Accounts payable and accrued current liabilities     3,437       6,607  
Current portion of deferred revenues     327       173  
Senior secured convertible debentures, net     11,398       9,839  
Long-term debt, net     10,549       9,851  
Warrant liability     185       7,042  
Other long-term liabilities     320       181  
Stockholders' equity     15,877       16,087  
Total liabilities and stockholders’ equity   $ 42,950     $ 50,079  
         


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,
    2016   2015   2016   2015
                 
Revenues   $ 7,767     $ 8,323     $ 23,126     $ 9,015  
                 
Cost of revenues     3,070       3,042       9,631       10,226  
                 
Gross profit (loss)     4,697       5,281       13,495       (1,211 )
                 
Operating expenses:                
Engineering and product development     382       560       1,541       1,289  
Selling and marketing     2,840       3,913       10,073       5,641  
General and administrative     1,880       3,131       5,882       6,819  
      5,102       7,604       17,496       13,749  
                 
Operating loss before other income (expense), net     (405 )     (2,323 )     (4,001 )     (14,960 )
                 
Other income (expense), net:                
Interest expense, net     (1,175 )     (5,577 )     (3,571 )     (8,738 )
Change in fair value of warrant liability     132       (1,329 )     5,316       (679 )
Other (expense) income, net     3       (5 )     (1 )     23  
      1,040       (6,911 )     1,744       (9,394 )
                 
Net loss before income taxes     (1,445 )     (9,234 )     (2,257 )     (24,354 )
                 
Income tax expense     (64 )     -       (191 )     -  
                 
Net loss     (1,509 )     (9,234 )     (2,448 )     (24,354 )
                 
Deemed dividend related to warrant modification     -       (2,962 )     -       (2,962 )
                 
Net loss attributable to common stockholders   $ (1,509 )   $ (12,196 )   $ (2,448 )   $ (27,316 )
                 
Net loss per share:                
Basic   $ (0.14 )   $ (1.29 )   $ (0.23 )   $ (3.42 )
Diluted   $ (0.14 )   $ (1.29 )   $ (0.71 )   $ (3.42 )
                 
                 
Shares used in computing net loss per share:                
Basic     10,679,761       9,442,022       10,536,824       7,994,012  
Diluted     10,679,761       9,442,022       10,947,713       7,994,012  
                 


STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
 
  For the Nine Months Ended
September 30,
    2016   2015
Cash Flows From Operating Activities:        
Net loss   $ (2,448 )   $ (24,354 )
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization     4,844       2,348  
Stock-based compensation     401       1,483  
Amortization of debt discount     1,821       7,571  
Amortization of deferred financing costs     145       373  
Change in fair value of warrant liability     (5,316 )     679  
Impairment of long-lived assets     -       920  
Inventory write-offs     -       4,818  
Other     395       20  
Changes in operating assets and liabilities:        
Current assets     2,142       (916 )
Current liabilities     (3,068 )     113  
Net cash used in operating activities     (1,084 )     (6,945 )
         
Cash Flows From Investing Activities:        
Lasers placed-in-service, net     (607 )     (1,066 )
Other     140       (117 )
Acquisition costs, net of cash received     -       (42,500 )
Net cash used in investing activities     (467 )     (43,683 )
         
Cash Flows From Financing Activities:        
Proceeds from convertible debentures     -       32,500  
Proceeds from senior notes     -       10,000  
Proceeds from term debt     1,500       -  
Other financing activities     (299 )     (154 )
Net cash provided by financing activities     1,201       42,346  
         
Effect of exchange rate changes on cash     4       17  
         
Net decrease in cash and cash equivalents     (346 )     (8,265 )
Cash and cash equivalents, beginning of period     3,303       11,434  
         
Cash and cash equivalents, end of period   $ 2,957     $ 3,169  
                 
Supplemental information:                
Cash paid for interest   $ 1,517     $ 402  
                 
Supplemental information of non-cash investing and financing activities:                
Conversion of convertible preferred stock into common stock   $ 309     $ 5,283  
Conversion of senior secured convertible debentures into common stock   $ 248     $ 4,593  
Reclassification of property and equipment to inventory, net   $ -     $ 107  
Reclassification of warrants to (from) stockholders’ equity   $ 1,541     $ (5,399 )
Establishment of a warrant liability with a deemed dividend   $ -     $ 2,962  
Recognition of debt discount and beneficial conversion feature on long-term debt   $ -     $ 27,300  
Recognition of warrants issued as debt discount   $ 47     $ -  
                 
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 Names Frank McCaney as President and CEO

HORSHAM, Pa., Nov. 01, 2016 (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 announced that its Board of Directors has named Mr. McCaney, 61, as the company’s next President and Chief Executive Officer, effective November 1, 2016.

Mr. McCaney replaces Michael Stewart, who has resigned as President and CEO and member of the Board of Directors, effective immediately. Mr. Stewart has agreed to remain with STRATA as an independent consultant to assist in both commercial and clinical aspects of the company’s continued growth.

Jeffrey O’Donnell Sr., Chairman of the Board of STRATA Skin Sciences, stated, “The Board thanks Mike Stewart for his tireless efforts and dedication to Strata Skin Sciences.  We are confident that Frank McCaney has the skill sets to build the company into a major innovator and partner to dermatologists and their clinical teams.  We look forward to building the value in this changing environment.”   

In expressing his views on his reasons for joining STRATA and his visions for the company’s growth, Mr. McCaney stated, “The core business of Strata is healthy and I believe that there is significant potential for growth both in the core business and in expanding the company's business model to better serve both dermatologists and patients.”

Mr. McCaney was most recently CEO of Corpak MedSystems, a private equity-backed medical device company in the field of enteral feeding. Corpak was sold to Halyard Health (NYSE:HYH) for $174 million in May 2016. Prior to Corpak, he was the founder and CEO of Nitric BioTherapeutics, a venture backed-medical technology company from 2006 until 2012. Prior to Nitric Bio, he was a senior executive at Viasys Healthcare, Inc., a medical technology company focusing on respiratory, neurology, medical disposable and orthopedic products and had a lead role in spinning Viasys out of Thermo Electron Corporation.  While at Viasys, Mr. McCaney had several responsibilities including strategy, business development and investor relations. He currently serves as a director of Diasome Pharmaceuticals, a privately-held company.

As previously announced, STRATA will release its financial results for the third quarter ended September 30, 2016 after the close of the financial markets on Thursday, November 10, 2016.  STRATA’s management will host an investment community conference call the same day at 4:30 p.m. Eastern Time to discuss these results.

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, and the MelaFind® system used to assist in the identification and management of melanoma skin cancer.

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 plans for acquisitions and entering new markets, the public’s reaction the Company’s new advertisements and marketing campaign, and the Company’s ability to build a leading franchise in medical dermatology, with growth in the Company’s core business and expanding the Company’s business model , 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.

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 3rd Quarter 2016 Financial Results on Thursday, November 10

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

HORSHAM, Pa., Oct. 27, 2016 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN), a medical technology company dedicated to developing and commercializing innovative products for the diagnosis and treatment of serious dermatological disorders, will release third quarter financial results on Thursday, November 10, after the market close.  STRATA Skin Sciences President and Chief Executive Officer, Michael Stewart, 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 10, 2016
Time: 4:30 pm Eastern Time
Toll Free:   888-503-8175
International:   719-457-2631
Passcode: 5890827
Webcast:  www.strataskinsciences.com
   
Replays, available through November 26, 2016
Toll Free: 844-512-2921
International:   412-317-6671
Replay PIN:  5890827

About STRATA Skin Sciences, Inc.  (www.strataskinsciences.com)
STRATA Skin Sciences is a medical technology company focused in the 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; and the MelaFind System used to assist in the identification and management of melanoma skin cancer.

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 Reports Second Quarter 2016 Financial Results

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

HORSHAM, Pa., Aug. 11, 2016 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (“STRATA”) (NASDAQ:SSKN) 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 ended June 30, 2016.

Second Quarter and Recent Corporate Highlights

  • Second quarter revenues were $7.7 million.
  • Recurring XTRAC revenues were $6.1 million, down 8.8% year-over-year and up 10.2% sequentially.
  • Installed base of XTRAC systems in the U.S. expanded to 748 systems placed, up 12.7% from 664 at the end of the second quarter 2015.

The operating results of the Company for the three months ended June 30, 2016 include activity from the XTRAC and VTRAC businesses for the entire period. As a result of purchase accounting rules, the operating results of the XTRAC and VTRAC businesses for the three months ended June 30, 2015 are included for the period of June 23 through June 30 in consolidated statements of operations.

“As we work to drive further market penetration of XTRAC we are continuing to implement improvements to our marketing and awareness campaigns aimed at expanding patient awareness and better facilitating the patient’s XTRAC experience.  Over the coming quarters, we expect to see greater efficiencies from our newly revamped website coupled with new creatives and more targeted approach in television, radio and social media. In addition, our team has implemented a new process to work with dermatology practices with newly placed XTRAC systems in an effort to ramp revenues more quickly and maintain a consistent and growing level of procedures,” said Michael R. Stewart, President and CEO of the Company. 

Continuing, Mr. Stewart added, “We are seeing a greater consolidation of individual dermatology practices in the marketplace through corporate buyouts. Over time, we believe this is an important growth opportunity for the XTRAC as our sales approach adapts to addressing the needs of these corporate entities, including the potential expansion of the deployment of XTRAC into a greater number of owned practices. Separately, as patients face the reset of their deductible and co-pays at the start of each year, and as insurers are raising these deductible limits for many consumers, we believe this appears to have been reflected in fewer patient visits to dermatologists during the past quarter than in the same quarter a year ago.”

“We are excited about the opportunity for growth of the XTRAC system.  We continue to pursue R&D projects that may deliver a more effective treatment using a higher dose of light, increasing the appeal of the XTRAC system to dermatologists and patients. In addition to accelerating our revenue growth, we are also engaged in several engineering and R&D projects to help lower Strata’s costs of installing and maintaining the XTRAC systems in place,” added Mr. Stewart.

Reported Financial Results
Revenues for the second quarter of 2016 were $7.7 million compared with revenues for the second quarter of 2015 of $0.6 million.

Net income for the second quarter of 2016 was $0.5 million or ($0.23) 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, $1.6 million in depreciation and amortization expenses and $0.1 million for income tax expense. This compares with a net loss for the second quarter of 2015 of $7.8 million or ($1.01) per diluted share, which included other income of $2.0 million for the change in fair value of warrant liability, $0.8 million in interest expense and $0.3 million in depreciation and amortization expenses.

Revenues for the six months of 2016 were $15.4 million compared with revenues for the six months of 2015 of $0.7 million.

Net loss for the six months of 2016 was $0.9 million or ($0.55) 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, $3.3 million in depreciation and amortization expenses and $0.1 million for income tax expense. This compares with a net loss for the six months of 2015 of $15.1 million or ($2.08) per diluted share, which included other income of $0.7 million for the change in fair value of warrant liability, $4.8 million in inventory obsolescence charges; $3.2 million in interest expense, $0.5 million in acquisition costs and $0.6 million in depreciation and amortization expenses.

As of June 30, 2016 the Company had cash, cash equivalents and short-term investments of $2.8 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.

 
Q2 2016 Supplemental Proforma Financial Information
As of June 30, 2016, Q2 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               $ 11,621    
                                     

*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
June 30,
  Six Months Ended
June 30,
        2016       2015       2016       2015  
      (in thousands)
(Unaudited)
  (in thousands)
(Unaudited)
                                 
Net income (loss) as reported   $ 498     $ (7,847 )   $ (939 )   $ (15,120 )
Adjustments:                
  Depreciation and amortization expense     1,640       322       3,323       641  
  Interest expense, net     535       151       1,067       290  
  Non-cash interest expense     643       687       1,329       2,872  
  Income taxes     61       -       127       -  
                   
  EBITDA     3,377       (6,687 )     4,907       (11,317 )
                   
  Stock-based compensation expense     116       246       286       476  
  Change in fair value of warrants     (3,199 )     (1,985 )     (5,184 )     (651 )
  Acquisition costs     -       456       -       456  
  Impairment of property and equipment     -       920       -       920  
  Inventory valuation reserves     -       4,818       -       4,818  
                   
Non-GAAP adjusted EBITDA   $ 294     $ (2,232 )   $ 9     $ (5,298 )
                                 

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:   Thursday, August 11, 2016
Time:   4:30 pm Eastern Time
Toll Free:   888.430.8691
International:   719.457.2664
Passcode:   1347868
Webcast:   www.strataskinsciences.com
     

Replays available through August 25, 2016:

Toll Free:   877.870.5176
International:   858.384.5517
Passcode:   1347868
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 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, and the MelaFind® system used to assist in the identification and management of melanoma skin cancer.

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 to the Company’s new advertisements and marketing campaign, and the Company’s ability to build a leading franchise in medical dermatology, 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, 2016   December 31, 2015
  (unaudited)    
ASSETS      
Current assets:      
Cash and cash equivalents $ 2,841     $ 3,303  
Restricted cash   -       15  
Accounts receivable, net   2,708       4,068  
Inventories, net   3,754       4,128  
Other current assets   252       465  
Property and equipment, net   11,635       13,851  
Goodwill and other intangible assets   23,122       24,155  
Other non-current assets, net   94       94  
Total assets $ 44,406     $ 50,079  
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
Note payable $ 93     $ 299  
Accounts payable and accrued current liabilities   4,097       6,607  
Current portion of deferred revenues   204       173  
Senior secured convertible debentures, net   10,824       9,839  
Long-term debt, net   11,345       9,851  
Warrant liability   317       7,042  
Other long-term liabilities   254       181  
Stockholders' equity   17,272       16,087  
Total liabilities and stockholders’ equity $ 44,406     $ 50,079  
       


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,
      2016       2015       2016       2015  
                 
Revenues   $ 7,739     $ 611     $ 15,359     $ 692  
                 
Cost of revenues     3,139       6,474       6,561       7,185  
                 
Gross profit (loss)     4,600       (5,863 )     8,798       (6,493 )
                 
Operating expenses:                
Engineering and product development     634       282       1,159       521  
Selling and marketing     3,523       910       7,233       1,937  
General and administrative     1,901       1,950       4,002       3,686  
      6,058       3,142       12,394       6,144  
                 
Operating loss before other income (expense), net     (1,458 )     (9,005 )     (3,596 )     (12,637 )
                 
Other income (expense), net:                
Interest expense, net     (1,178 )     (838 )     (2,396 )     (3,162 )
Change in fair value of warrant liability     3,199       1,985       5,184       651  
Other (expense) income, net     (4 )     11       (4 )     28  
      2,017       1,158       2,784       (2,483 )
                 
Net income (loss) before income taxes     559       (7,847 )     (812 )     (15,120 )
                 
Income tax expense     (61 )     -       (127 )     -  
                 
Net income (loss)   $ 498     $ (7,847 )   $ (939 )   $ (15,120 )
                 
                 
Net income (loss) per share:                
Basic   $ 0.05     $ (0.97 )   $ (0.09 )   $ (2.08 )
Diluted   $ (0.23 )   $ (1.01 )   $ (0.55 )   $ (2.08 )
                 
                 
Shares used in computing net income (loss) per share:                
Basic     10,589,485       8,067,991       10,464,571       7,274,358  
Diluted     11,555,236       9,687,623       11,080,904       7,274,358  
                 


STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
   
  For the Six Months Ended
  June 30,
      2016       2015  
Cash Flows From Operating Activities:        
Net loss   $ (939 )   $ (15,120 )
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization     3,323       641  
Stock-based compensation     286       476  
Amortization of debt discount     1,239       2,662  
Amortization of deferred financing costs     91       219  
Change in fair value of warrant liability     (5,184 )     (651 )
Impairment of long-lived assets     -       920  
Inventory write-offs     -       4,818  
Other     329       -  
Changes in operating assets and liabilities:        
Current assets     1,817       513  
Current liabilities     (2,536 )     (33 )
Net cash used in operating activities     (1,574 )     (5,555 )
         
Cash Flows From Investing Activities:        
Lasers placed-in-service, net     (328 )     (123 )
Other     140       (100 )
Acquisition costs, net of cash received     -       (42,500 )
Net cash used in investing activities     (188 )     (42,723 )
         
Cash Flows From Financing Activities:        
Proceeds from convertible debentures     -       32,500  
Proceeds from senior notes     -       10,000  
Proceeds from term debt     1,500       -  
Other financing activities     (207 )     (105 )
Net cash provided by financing activities      1,293       42,395  
         
Effect of exchange rate changes on cash     7       2  
         
Net decrease in cash and cash equivalents     (462 )     (5,881 )
Cash and cash equivalents, beginning of period     3,303       11,434  
         
Cash and cash equivalents, end of period   $ 2,841     $ 5,553  
 
Supplemental information:        
Cash paid for interest   $ 980     $ 250  
         
Supplemental information of non-cash investing and financing activities:        
Conversion of convertible preferred stock into common stock   $ -     $ 5,283  
Conversion of senior secured convertible debentures into common stock   $ 248     $ 2,308  
Reclassification of property and equipment to inventory, net   $ -     $ 107  
Reclassification of warrants to equity   $ 1,541     $ -  
Recognition of warrants issued as debt discount   $ 47     $ -  
                 


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 2016 Financial Results on Thursday, August 11

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

HORSHAM, Pa., July 28, 2016 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN), a medical technology company dedicated to developing and commercializing innovative products for the diagnosis and treatment of serious dermatological disorders, will release second quarter financial results on Thursday, August 11, after the market close.  STRATA Skin Sciences President and Chief Executive Officer, Michael Stewart, 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 11
Time:     4:30 pm Eastern Time
Toll Free:     888-430-8691
International:     719-457-2664
Passcode:     1347868
Webcast:     www.strataskinsciences.com
       
Replays, available through August 25, 2016
Toll Free:     877-870-5176
International:     858-384-5517
Replay PIN:     1347868
       

About STRATA Skin Sciences, Inc.  (www.strataskinsciences.com)        
STRATA Skin Sciences is a medical technology company focused in the 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; and the MelaFind System used to assist in the identification and management of melanoma skin cancer.

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 to Host Key Opinion Leader Lunch

KOL Lunch in New York City on Thursday, June 16

HORSHAM, Pa., June 13, 2016 (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 dermatological disorders, announced today that it will host a Key Opinion Leader meeting on Thursday, June 16th at 12pm ET in New York City.

The meeting will feature keynote presentations by renowned dermatological experts R. Rox Anderson, MD and Noah S. Scheinfeld, JD, MD, who will discuss new approaches to treating serious dermatological disorders, including psoriasis and vitiligo.  Members of the STRATA Skin Sciences executive management team will provide an overview of the Company’s XTRAC® laser and VTRAC® excimer lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions.

Dr. Rox Anderson serves as Director of Massachusetts General Hospital’s Wellman Center for Photomedicine, the world’s largest academic facility dedicated to photomedicine. He is also a professor at Harvard Medical School and an adjunct professor at MIT.  Dr. Anderson was previously President of the American Society for Laser Medicine & Surgery, where he now serves as Director of Government Communications and Education. He currently serves on STRATA Skin Sciences’ Board of Directors.

Dr. Anderson conceived and developed many of the non-scarring laser treatments now widely used in dermatology, such as selective photothermolysis for birthmarks, microvascular and pigmented lesions, tattoo and permanent hair removal. His research has significantly advanced the knowledge of human skin photobiology, drug photosensitization mechanisms, and laser-tissue interactions, and has contributed to the development of tissue optics, photodynamic therapy, and optical diagnostics.

Dr. Anderson graduated from MIT, received his MD degree magna cum laude from the joint MIT-Harvard Medical Program, Health Sciences and Technology, and completed his residency in dermatology and research fellowships at Harvard.

Dr. Noah Scheinfeld maintains a private dermatology practice in New York City. He is also an Assistant Clinical Professor of Dermatology at Columbia University Medical Center and serves as an Assistant Attending Physician at Beth Israel Medical Center and St. Luke's Roosevelt Hospital Center.

Dr. Scheinfeld  is a nationally recognized expert on psoriasis, hidradenitis suppurativa & Degos disease. As of 2010, he has authored or coauthored more than 175 peer-reviewed articles and has given more than 60 national dermatology presentations. He is an editor for Journal Drugs & Dermatology, SKINmed, Cutis, Skin & Aging, Dermatology Online Journal & American Journal of Clinical Dermatology.

Dr. Scheinfeld graduated  magna cum laude from Columbia University. He received his JD from Harvard Law School and his MD from Yale University School of Medicine. He completed his residency in dermatology at Albert Einstein College of Medicine and has been certified by the American Board of Dermatology in Dermatology and Pediatric Dermatology.

The event is intended for institutional investors and sell-side analysts only. If you would like to attend in person, please contact Mac MacDonald at 212-915-2567 or via e-mail at mac@lifesciadvisors.com to reserve a place.

A live webcast of the event, with slides, will be available at http://lifesci.rampard.com/20160616/reg.jsp and in the Investors section of the Company’s website at http://strataskinsciences.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, and the MelaFind® system used to assist in the identification and management of melanoma skin cancer.

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 to the Company’s new advertisements and marketing campaign, and the Company’s ability to build a leading franchise in medical dermatology, 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.
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 Reports First Quarter 2016 Financial Results

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

HORSHAM, Pa., May 12, 2016 (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 dermatological disorders, today reported financial results for the quarter ended March 31, 2016.

First Quarter and Recent Corporate Highlights

  • First quarter total revenues of $7.6 million, which included recurring XTRAC revenue of $5.5 million, accounting for 72.5% of total revenues
  • Installed base of XTRAC systems in the U.S. expands to 730 systems placed, up 14.1% from 640 at the end of the first quarter 2015

The operating results of the Company for the three months ended March 31, 2016 include activity from the XTRAC and VTRAC businesses for the entire period. As a result of purchase accounting rules, the operating results of the XTRAC and VTRAC businesses for the three months ended March 31, 2015 are not included in consolidated statements of operations, including revenue amounts discussed in this release, for the period ended March 31, 2015.

“We continued to make solid progress with the XTRAC business in the first quarter of 2016,” said Michael R. Stewart, President and CEO of the Company. “As we anticipated, first quarter procedure volume and system placements were seasonally soft as patients respond to deductible and co-pay resets which occur in the first quarter of the year for many healthcare plans. New marketing initiatives planned for the second quarter and the rest of the year include broadcasting a new TV commercial with greater direct-to-patient appeal, enhanced radio spots, a greater social media presence for XTRAC and an improved XTRAC website for patients.” 

“We are excited about the opportunity for growth of the XTRAC system in the near- and long-term as dermatologists and their patients look for highly effective, less costly treatment options,” added Mr. Stewart.

Reported Financial Results
Revenues for the first quarter of 2016 were $7.6 million compared with revenues for the first quarter of 2015 of $0.8 million.

Net loss for the first quarter of 2016 was $1.4 million or ($0.26) 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, $1.7 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 2015 of $7.3 million or ($1.12) per diluted share, which included other expense of $1.3 million for the change in fair value of warrant liability, $2.3 million in interest expense and $0.3 million in depreciation and amortization expenses.

As of March 31, 2016 the Company had cash, cash equivalents and short-term investments of $3.1 million, compared with $3.3 million of unrestricted cash 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.


Q1 2016 Supplemental Proforma Financial Information
As of March 31, 2016, Q1 Earnings Report
(unaudited)
(in thousands)
 
    2015        2016  
  Qtr. 1     Qtr. 2     Qtr. 3   Qtr. 4   YTD     Qtr. 1
XTRAC Recurring
Revenue
$ 5,376   *   $ 6,678   **   $ 7,032     $ 7,479     $ 26,565   ***   $ 5,528  
                             

*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
March 31,
 
            2016         2015    
 
      (in thousands)
(Unaudited)
 
Net loss as reported   $     (1,437 )     $       (7,272 )  
Adjustments:            
  Depreciation and amortization expense         1,684           316    
  Interest expense, net          532         139    
  Non-cash interest expense         686         2,185    
  Income taxes         66         -    
               
EBITDA         1,531         (4,632 )  
               
  Stock-based compensation expense         170         230    
  Change in fair value of warrants         (1,985 )       1,334    
               
Non-GAAP adjusted EBITDA   $     (284 )     $ (3,068 )  
 

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

Conference Call Detail:

Date:   Thursday, May 12
Time:   4:30 pm Eastern Time
Toll Free:   888-576-4387
International:   719-457-2697
Passcode:   3418132
Webcast:   www.strataskinsciences.com
     

Replays available through May 26, 2016:

Toll Free:   877-870-5176
International:   858-384-5517
Passcode:   3418132
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 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, and the MelaFind® system used to assist in the identification and management of melanoma skin cancer.

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 to the Company’s new advertisements and marketing campaign, and the Company’s ability to build a leading franchise in medical dermatology, 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, 2016   December 31, 2015
    (unaudited)    
ASSETS        
Current assets:        
Cash and cash equivalents   $  3,120     $  3,303  
Restricted cash     -       15  
Accounts receivable, net     3,247       4,068  
Inventories, net     4,152       4,128  
Other current assets     377       465  
Property and equipment, net     12,818       13,851  
Goodwill and other intangible assets     23,701       24,155  
Other non-current assets, net     94       94  
Total assets   $ 47,509     $ 50,079  
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Long-term debt and other notes payable   $ 11,539     $ 10,150  
Accounts payable and accrued current liabilities     5,142       6,607  
Current portion of deferred revenues     225       173  
Senior secured convertible debentures, net     10,308       9,839  
Warrant liability     5,057       7,042  
Other long-term liabilities     206       181  
Stockholders' equity     15,032       16,087  
Total liabilities and stockholders’ equity   $ 47,509     $ 50,079  



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,
 
      2016       2015    
           
Revenues   $ 7,620     $ 81    
           
Cost of revenues     3,422       711    
           
Gross profit (loss)     4,198       (630 )  
           
Operating expenses:          
Engineering and product development     525       239    
Selling and marketing     3,710       1,027    
General and administrative     2,101       1,736    
      6,336       3,002    
           
Operating loss before other income (expense), net     (2,138 )     (3,632 )  
           
Other income (expense), net:          
Interest expense, net     (1,218 )     (2,324 )  
Change in fair value of warrant liability     1,985       (1,334 )  
Other (expense) income, net     -       18    
      767       (3,640 )  
           
Loss before income taxes     (1,371 )     (7,272 )  
           
Income tax expense     (66 )     -    
           
Net loss   $ (1,437 )   $ (7,272 )  
           
Net loss per share:          
  Basic   $ (0.14 )   $ (1.12 )  
  Diluted   $ (0.26 )   $ (1.12 )  
           
           
Shares used in computing net loss per share:          
  Basic     10,339,657       6,471,906    
  Diluted     13,307,923       6,471,906    





STRATA SKIN SCIENCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
 
  For the Three Months Ended
 March 31,
      2016       2015  
Cash Flows From Operating Activities:        
Net loss   $ (1,437 )   $ (7,272 )
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization     1,684       316  
Stock-based compensation     170       230  
Amortization of debt discount     639       2,015  
Amortization of deferred financing costs     48       180  
Change in fair value of warrant liability     (1,985 )     1,334  
Other     100       1  
Changes in operating assets and liabilities:        
Current assets     846       251  
Current liabilities     (1,461 )     (155 )
Net cash used in operating activities     (1,396 )     (3,201 )
         
Cash Flows From Investing Activities:        
Lasers placed-in-service, net     (197 )     -  
Other     15       (100 )
Net cash used in investing activities     (182 )     (100 )
         
Cash Flows From Financing Activities:        
Proceeds from term debt     1,500       -  
Other financing activities     (105 )     -  
Net cash provided by financing activities     1,395       -  
         
Net decrease in cash and cash equivalents     (183 )     (3,201 )
Cash and cash equivalents, beginning of period     3,303       11,434  
         
Cash and cash equivalents, end of period   $   3,120     $ 8,233  
 
Supplemental information:                
Cash paid for interest   $ 442     $ 139  
                 
Supplemental information of non-cash investing and financing activities:                
Conversion of convertible preferred stock into common stock   $ -     $ 1,508  
Conversion of senior secured convertible debentures into common stock   $ 165     $ 2,308  
Reclassification of property and equipment to inventory, net   $ -     $ 26  
Recognition of warrants issued as debt discount   $ 47     $ -  


 

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

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STRATA Skin Sciences, Inc.

STRATA Skin Sciences, Inc. to Report 1st Quarter 2016 Financial Results on Thursday, May 12

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

HORSHAM, Pa., April 29, 2016 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN), a medical technology company dedicated to developing and commercializing innovative products for the diagnosis and treatment of serious dermatological disorders, will release first quarter financial results on Thursday, May 12, after the market close.  STRATA Skin Sciences President and Chief Executive Officer, Michael Stewart, 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 12
Time: