STRATA Skin Sciences Reports First Quarter 2023 Revenue
Achieved revenue of
Company to host conference call and webcast today,
First Quarter 2023 and Recent Business Highlights:
- Revenue in the first quarter of 2023 was
$7.6 , compared to$7.0 million for the first quarter of 2022 - Officially launched TheraClear®X device in
January 2023 - 58 TheraClearX devices in the
U.S. as ofMarch 31, 2023 - Sold over 3,000 TheraClearX treatments in the first quarter
- Signed exclusive distribution agreement with
Spectra Medical Pvt Ltd. forIndia
“The first quarter of 2023 has been filled with commercial successes for STRATA, especially with the ramp-up of TheraClearX,” stated
First Quarter Financial Results
Revenues for the first quarter of 2023 were
Gross profit for the first quarter of 2023 was
Selling and marketing costs for the first quarter of 2023 were
Other expense for the first quarter of 2023 was
Net loss for the first quarter of 2023 was
Financial Outlook
STRATA continues to expect full year 2023 revenue to range from
Webcast and Conference Call Information
STRATA management will host a conference call today, beginning at
Reconciliation of Non-GAAP Measures
To supplement the Company’s consolidated financial statements, prepared in accordance with accounting principles generally accepted in the
The Company’s reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards but is 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 management and investors by isolating certain expenses, gains, and losses that may not be indicative of the Company’s core operating results and business outlook. In addition, the Company believes non-GAAP measures enhance the comparability of results against prior periods. Reconciliation of the GAAP measures of net loss to non-GAAP measures included in this press release is as follows (in thousands) (unaudited):
For the Three Months Ended |
||||||||
2023 | 2022 | |||||||
Net loss | $ | (2,835 | ) | $ | (2,502 | ) | ||
Adjustments: | ||||||||
Depreciation and amortization | 1,397 | 1,321 | ||||||
Amortization of operating lease right-of-use asset | 105 | 89 | ||||||
Loss on disposal of property and equipment | — | 17 | ||||||
Interest expense, net | 249 | 199 | ||||||
Non-GAAP EBITDA | (1,084 | ) | (876 | ) | ||||
Stock-based compensation expense | 325 | 368 | ||||||
Non-GAAP adjusted EBITDA | $ | (759 | ) | $ | (508 | ) |
XTRAC Gross Domestic Recurring Billings
XTRAC gross domestic recurring billings represent the amount invoiced to partner clinics when treatment codes are sold to the physician. It does not include normal GAAP adjustments, which are deferred revenue from prior quarters recorded as revenue in the current quarter, the deferral of revenue from the current quarter recorded as revenue in future quarters, adjustments for co-pay and other discounts. This excludes international recurring revenues.
The following is a reconciliation of non-GAAP XTRAC gross domestic billings to domestic recorded revenue for the first quarter 2023 and 2022 (in thousands):
Three Months Ended |
|||||||
2023 | 2022 | ||||||
Gross domestic recurring billings | $ | 4,735 | $ | 4,999 | |||
Co-Pay adjustments | (83 | ) | (170 | ) | |||
Other discounts | (28 | ) | (37 | ) | |||
Deferred revenue from prior quarters | 2,170 | 1,867 | |||||
Deferral of revenue to future quarters | (2,025 | ) | (1,970 | ) | |||
GAAP Recorded domestic revenue | $ | 4,769 | $ | 4,689 |
About
STRATA is proud to offer these exciting technologies in the
Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to launch and sell an acne treatment device and to integrate that device into its product offerings, the Company’s ability to develop, launch and sell products recently acquired or to be developed in the future, the Company’s ability to develop social media marketing campaigns, direct to dermatologist marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory, adverse market conditions labor supply shortages, or supply chain interruptions resulting from the coronavirus, fiscal, and political factors, responses, or conditions affecting the Company, the medical device industry and our customers and patients in general, as well as more specific risks and uncertainties set forth in the Company’s
Investor Contact:
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Condensed Consolidated Balance Sheets | ||||||||
(in thousands, except share and per share amounts) | ||||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,825 | $ | 5,434 | ||||
Restricted cash | 1,361 | 1,361 | ||||||
Accounts receivable, net of allowance for doubtful accounts of |
3,940 | 4,471 | ||||||
Inventories | 5,695 | 5,547 | ||||||
Prepaid expenses and other current assets | 691 | 691 | ||||||
Total current assets | 14,512 | 17,504 | ||||||
Property and equipment, net | 8,182 | 7,498 | ||||||
Operating lease right-of-use assets | 870 | 975 | ||||||
Intangible assets, net | 16,674 | 17,394 | ||||||
8,803 | 8,803 | |||||||
Other assets | 82 | 98 | ||||||
Total assets | $ | 49,123 | $ | 52,272 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,099 | $ | 3,425 | ||||
Accrued expenses and other current liabilities | 6,549 | 6,555 | ||||||
Deferred revenues | 2,548 | 2,778 | ||||||
Current portion of operating lease liabilities | 381 | 355 | ||||||
Current portion of contingent consideration | 481 | 313 | ||||||
Total current liabilities | 13,058 | 13,426 | ||||||
Long-term debt, net | 7,517 | 7,476 | ||||||
Deferred revenues and other liabilities | 305 | 314 | ||||||
Deferred tax liability | 306 | 306 | ||||||
Operating lease liabilities, net of current portion | 489 | 610 | ||||||
Contingent consideration, net of current portion | 8,127 | 8,309 | ||||||
Total liabilities | 29,802 | 30,441 | ||||||
Stockholders’ equity: | ||||||||
Series C convertible preferred stock, |
— | — | ||||||
Common stock, |
35 | 35 | ||||||
Additional paid-in capital | 249,349 | 249,024 | ||||||
Accumulated deficit | (230,063 | ) | (227,228 | ) | ||||
Total stockholders’ equity | 19,321 | 21, 831 | ||||||
Total liabilities and stockholders’ equity | $ | 49,123 | $ | 52,272 |
Condensed Consolidated Statement of Operations | ||||||||
(in thousands, except share and per share amounts) | ||||||||
(unaudited) | ||||||||
Three Months Ended |
||||||||
2023 | 2022 | |||||||
Revenues, net | $ | 7,567 | $ | 7,041 | ||||
Cost of revenues | 3,179 | 2,913 | ||||||
Gross profit | 4,388 | 4,128 | ||||||
Operating expenses: | ||||||||
Engineering and product development | 315 | 163 | ||||||
Selling and marketing | 3,742 | 3,616 | ||||||
General and administrative | 2,917 | 2,652 | ||||||
6,974 | 6,431 | |||||||
Loss from operations | (2,586 | ) | (2,303 | ) | ||||
Other (expense) income: | ||||||||
Interest expense | (286 | ) | (199 | ) | ||||
Interest income | 37 | — | ||||||
(249 | ) | (199 | ) | |||||
Net loss | $ | (2,835 | ) | $ | (2,502 | ) | ||
Net loss per share of common stock, basic and diluted | $ | (0.08 | ) | $ | (0.07 | ) | ||
Weighted average shares of common stock outstanding, basic and diluted | 34,862,092 | 34,679,246 |
Condensed Consolidated Statements of Cash Flows | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
For the Three Months Ended |
||||||||
2023 | 2022 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (2,835 | ) | $ | (2,502 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 1,397 | 1,321 | ||||||
Amortization of operating lease right-of-use assets | 105 | 89 | ||||||
Amortization of deferred financing costs and debt discount | 41 | 37 | ||||||
(Recoveries of) provision for doubtful accounts | (95 | ) | 13 | |||||
Stock-based compensation expense | 325 | 368 | ||||||
Loss on disposal of property and equipment | — | 17 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 626 | 448 | ||||||
Inventories | (103 | ) | (1,198 | ) | ||||
Prepaid expenses and other assets | 16 | 85 | ||||||
Accounts payable | (326 | ) | 1,148 | |||||
Accrued expenses and other liabilities | (12 | ) | 175 | |||||
Deferred revenues | (247 | ) | (257 | ) | ||||
Operating lease liabilities | (95 | ) | (97 | ) | ||||
Net cash used in operating activities | (1,203 | ) | (353 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment | (1,406 | ) | (679 | ) | ||||
Cash paid in connection with TheraClear asset acquisition | — | (631 | ) | |||||
Net cash used in investing activities | (1,406 | ) | (1,310 | ) | ||||
Net decrease in cash, cash equivalents and restricted cash | (2,609 | ) | (1,663 | ) | ||||
Cash, cash equivalents and restricted cash, beginning of period | 6,795 | 12,586 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 4,186 | $ | 10,923 | ||||
Cash and cash equivalents | $ | 2,825 | $ | 10,923 | ||||
Restricted cash | 1,361 | — | ||||||
$ | 4,186 | $ | 10,923 | |||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 241 | $ | 160 | ||||
Supplemental disclosure of non-cash operating, investing and financing activities: | ||||||||
Inventories acquired in connection with TheraClear asset acquisition | $ | — | $ | 71 | ||||
Intangible assets acquired in connection with TheraClear asset acquisition | $ | — | $ | 10,182 | ||||
Contingent consideration issued in connection with TheraClear asset acquisition | $ | — | $ | 9,122 | ||||
Common stock issued in connection with TheraClear asset acquisition | $ | — | $ | 500 | ||||
Transfer of property and equipment to inventories | $ | 45 | $ | — | ||||
Accrued payment of contingent consideration | $ | 14 | $ | — |
Source: STRATA Skin Sciences, Inc.