•
|
Total revenue was $7.7 million, an increase of 37.4% as compared to the third quarter of 2020
|
- |
Recurring revenue was $5.7 million, a 48.9% increase over the third quarter of 2020
|
-
|
Gross domestic recurring billings were $5.8 million, a 23.5% increase over the third quarter 2020 (See Reconciliation of Non-GAAP measures below)
|
•
|
Total gross margins were 69.7%, a 12.2% increase over third quarter 2020
|
•
|
Entered into a credit and security agreement with MidCap Financial Trust, providing STRATA with a senior secured term loan facility of $8 million
|
-
|
Eliminated restricted cash
|
•
|
Cash and cash equivalents at September 30, 2021 were $13.1 million
|
•
|
Concluded the quarter with a global recurring revenue installed base of 929 XTRAC devices, an increase of 40 devices from June 30, 2021, including 13 conversions of Ra Medical Pharos customers
|
•
|
Completed acquisition of U.S. dermatology business of Ra Medical Systems
|
•
|
Appointed Christopher Lesovitz as Chief Financial Officer
|
For the Three Months
Ended September 30,
|
For the Nine Months
Ended September 30,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Net loss
|
$
|
(521
|
)
|
$
|
(1,254
|
)
|
$
|
(1,857
|
)
|
$
|
(3,969
|
)
| ||||
Adjustments:
| ||||||||||||||||
Depreciation and amortization
|
983
|
807
|
2,689
|
2,793
| ||||||||||||
Amortization of right-of-use-asset
|
87
|
83
|
261
|
242
| ||||||||||||
Loss (gain) on disposal of property and equipment
|
10
|
4
|
73
|
23
| ||||||||||||
Income taxes
|
4
|
72
|
12
|
207
| ||||||||||||
Gain on forgiveness of debt
|
-
|
-
|
(2,028
|
)
|
-
| |||||||||||
Interest expense, net
|
52
|
21
|
93
|
38
| ||||||||||||
Non-GAAP EBITDA
|
615
|
(267
|
)
|
(757
|
)
|
(666
|
)
| |||||||||
Stock compensation
|
320
|
403
|
1,563
|
1,243
| ||||||||||||
Non-GAAP adjusted EBITDA
|
$
|
935
|
$
|
136
|
$
|
806
|
$
|
577
|
2021
|
2020
| |||||||
Gross domestic recurring billings
|
$
|
5,822
|
$
|
4,700
| ||||
Co-Pay adjustments
|
(199
|
)
|
(160
|
)
| ||||
Other discounts
|
(43
|
)
|
(6
|
)
| ||||
Deferred revenue from prior quarters
|
1,897
|
546
| ||||||
Deferral of revenue to future quarters
|
(2,107
|
)
|
(1,390
|
)
| ||||
GAAP Recorded revenue
|
$
|
5,370
|
$
|
3,690
|
Leigh Salvo
| ||
(415) 937-5404
| ||
ir@strataskin.com
|
September30, 2021
|
December 31, 2020
| |||||||
ASSETS
|
(unaudited)
| |||||||
Current assets:
| ||||||||
Cash and cash equivalents
|
$
|
13,047
|
$
|
10,604
| ||||
Restricted cash
|
-
|
7,508
| ||||||
Accounts receivable, net of allowance for doubtful accounts of $248 and $274, respectively
|
3,151
|
2,944
| ||||||
Inventories
|
3,225
|
3,444
| ||||||
Prepaid expenses and other current assets
|
623
|
331
| ||||||
Total current assets
|
20,046
|
24,831
| ||||||
Property and equipment, net
|
6,403
|
5,529
| ||||||
Operating lease right-of-use assets, net
|
727
|
988
| ||||||
Intangible assets, net
|
10,546
|
6,345
| ||||||
Goodwill
|
8,803
|
8,803
| ||||||
Other assets
|
233
|
282
| ||||||
Total assets
|
$
|
46,758
|
$
|
46,778
| ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
| ||||||||
Current liabilities:
| ||||||||
Note payable
|
$
|
-
|
$
|
7,275
| ||||
Current portion of long-term debt
|
-
|
1,478
| ||||||
Accounts payable
|
2,480
|
2,764
| ||||||
Other accrued liabilities
|
5,548
|
4,690
| ||||||
Current portion of operating lease liabilities
|
359
|
369
| ||||||
Deferred revenues
|
3,767
|
2,262
| ||||||
Total current liabilities
|
12,154
|
18,838
| ||||||
Long-term liabilities:
| ||||||||
Long-term debt, net
|
7,282
|
1,050
| ||||||
Deferred tax liability
|
266
|
254
| ||||||
Long-term operating lease liabilities, net
|
445
|
710
| ||||||
Other liabilities
|
428
|
34
| ||||||
Total liabilities
|
20,575
|
20,886
| ||||||
Commitments and contingencies (see Note 15)
| ||||||||
Stockholders' equity:
| ||||||||
Series C Convertible Preferred Stock, $0.10 par value, 10,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2021 and
December 31, 2020
|
-
|
-
| ||||||
Common Stock, $.001 par value, 150,000,000 shares authorized; 34,364,679, and 33,801,045 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively
|
34
|
34
| ||||||
Additional paid-in capital
|
246,979
|
244,831
| ||||||
Accumulated deficit
|
(220,830
|
)
|
(218,973
|
)
| ||||
Total stockholders' equity
|
26,183
|
25,892
| ||||||
Total liabilities and stockholders' equity
|
$
|
46,758
|
$
|
46,778
|
For the Three Months Ended
September 30,
| ||||||||
2021
|
2020
| |||||||
Revenues, net
|
$
|
7,711
|
$
|
5,613
| ||||
Cost of revenues
|
2,335
|
2,383
| ||||||
Gross profit
|
5,376
|
3,230
| ||||||
Operating expenses:
| ||||||||
Engineering and product development
|
371
|
411
| ||||||
Selling and marketing
|
3,295
|
2,051
| ||||||
General and administrative
|
2,175
|
1,929
| ||||||
5,841
|
4,391
| |||||||
Loss from operations
|
(465
|
)
|
(1,161
|
)
| ||||
Interest expense, net
|
(52
|
)
|
(21
|
)
| ||||
Loss before income taxes
|
(517
|
)
|
(1,182
|
)
| ||||
Income tax expense
|
(4
|
)
|
(72
|
)
| ||||
Net loss
|
$
|
(521
|
)
|
$
|
(1,254
|
)
| ||
Loss per common share - basic and diluted
|
$
|
(0.02
|
)
|
$
|
(0.04
|
)
| ||
Weighted average shares of common stock outstanding - basic and diluted
|
34,150,438
|
33,754,909
|
For the Nine Months Ended
September 30,
| ||||||||
2021
|
2020
| |||||||
Revenues, net
|
$
|
20,920
|
$
|
16,373
| ||||
Cost of revenues
|
7,070
|
6,780
| ||||||
Gross profit
|
13,850
|
9,593
| ||||||
Operating expenses:
| ||||||||
Engineering and product development
|
1,158
|
950
| ||||||
Selling and marketing
|
9,387
|
6,446
| ||||||
General and administrative
|
7,085
|
5,921
| ||||||
17,630
|
13,317
| |||||||
Loss from operations
|
(3,780
|
)
|
(3,724
|
)
| ||||
Other income (expense), net:
| ||||||||
Gain on forgiveness of debt
|
2,028
|
-
| ||||||
Interest expense, net
|
(93
|
)
|
(38
|
)
| ||||
1,935
|
(38
|
)
| ||||||
Loss before income taxes
|
(1,845
|
)
|
(3,762
|
)
| ||||
Income tax expense
|
(12
|
)
|
(207
|
)
| ||||
Net loss
|
$
|
(1,857
|
)
|
$
|
(3,969
|
)
| ||
Loss attributable to common shares
|
$
|
(1,857
|
)
|
$
|
(3,947
|
)
| ||
Loss attributable to Preferred Series C shares
|
$
|
-
|
$
|
(22
|
)
| |||
Loss per common share - basic and diluted
|
$
|
(0.05
|
)
|
$
|
(0.12
|
)
| ||
Weighted average common shares outstanding - basic and diluted
|
33,944,321
|
33,551,070
| ||||||
Loss per Preferred Series C share - basic and diluted
|
-
|
$
|
(43.73
|
)
| ||||
Shares used in computing loss per basic and diluted Preferred Series C Shares
|
-
|
491
|
For the Nine Months Ended
September 30,
| ||||||||
2021
|
2020
| |||||||
Cash Flows From Operating Activities:
| ||||||||
Net loss
|
$
|
(1,857
|
)
|
$
|
(3,969
|
)
| ||
Adjustments to reconcile net loss to net cash provided by operating activities:
| ||||||||
Depreciation and amortization
|
2,689
|
2,793
| ||||||
Amortization of right-of-use asset
|
261
|
242
| ||||||
Provision (recoveries) for doubtful accounts
|
(26
|
)
|
65
| |||||
Stock-based compensation
|
1,563
|
1,243
| ||||||
Loss on disposal of property and equipment
|
73
|
23
| ||||||
Gain on forgiveness of debt
|
(2,028
|
)
|
-
| |||||
Deferred taxes
|
12
|
207
| ||||||
Changes in operating assets and liabilities:
| ||||||||
Accounts receivable
|
(181
|
)
|
1,811
| |||||
Inventories
|
219
|
(475
|
)
| |||||
Prepaid expenses and other assets
|
(243
|
)
|
98
| |||||
Accounts payable
|
(284
|
)
|
1,608
| |||||
Other accrued liabilities
|
859
|
(576
|
)
| |||||
Other liabilities
|
(88
|
)
|
(126
|
)
| ||||
Operating lease liabilities
|
(275
|
)
|
(226
|
)
| ||||
Deferred revenues
|
145
|
(968
|
)
| |||||
Net cash provided by operating activities
|
839
|
1,750
| ||||||
Cash Flows From Investing Activities:
| ||||||||
Purchase of property and equipment
|
(2,523
|
)
|
(1,447
|
)
| ||||
Cash paid in connection with Ra Medical asset acquisition
|
(3,473
|
)
|
-
| |||||
Net cash used in investing activities
|
(5,996
|
)
|
(1,447
|
)
| ||||
Cash Flows From Financing Activities
| ||||||||
Proceeds from Senior Term Facility borrowings, net of fees
|
7,867
|
-
| ||||||
Repayment of note payable
|
(7,275
|
)
|
-
| |||||
Proceeds from (repayment of) long-term debt
|
(500
|
)
|
2,528
| |||||
Net cash provided by financing activities
|
92
|
2,528
| ||||||
Net (decrease) increase in cash and cash equivalents and restricted cash
|
(5,065
|
)
|
2,831
| |||||
Cash, cash equivalents and restricted cash, beginning of period
|
18,112
|
15,629
| ||||||
Cash, cash equivalents and restricted cash, end of period
|
$
|
13,047
|
$
|
18,460
| ||||
Cash and cash equivalents
|
$
|
13,047
|
$
|
11,063
| ||||
Restricted cash
|
-
|
7,397
| ||||||
$
|
13,047
|
$
|
18,460
| |||||
Supplemental information of cash and non-cash transactions:
| ||||||||
Cash paid for interest
|
$
|
109
|
$
|
157
| ||||
Fair value of warrants issued in connection with debt
|
$
|
585
|
$
|
-
| ||||
Assumed deferred revenue in connection with Ra Medical asset acquisition
|
$
|
1,841
|
$
|
-
|
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Disclaimer
STRATA Skin Sciences Inc. published this content on 10 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2021 21:21:16 UTC.