STRATA Skin Sciences, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>STRATA Skin Sciences, Inc. filed its 2023 10-K, detailing financial performance and corporate history.</b>

AI Summary

STRATA Skin Sciences, Inc. (SSKN) filed a Annual Report (10-K) with the SEC on March 28, 2024. STRATA Skin Sciences, Inc. filed its 2023 Form 10-K on March 28, 2024, reporting on the fiscal year ending December 31, 2023. The company was formerly known as MELA SCIENCES, INC. and ELECTRO OPTICAL SCIENCES INC. STRATA Skin Sciences operates in the SURGICAL & MEDICAL INSTRUMENTS & APPARATUS industry (SIC code 3841). The filing details financial information including common stock, additional paid-in capital, and retained earnings for fiscal years 2021, 2022, and 2023. Key financial facilities mentioned include Senior Term Facility One, Two, and Three with MidCap Financial Trust as of December 31, 2023.

Why It Matters

For investors and stakeholders tracking STRATA Skin Sciences, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of STRATA Skin Sciences' financial health and operational status for the fiscal year 2023, crucial for investors and stakeholders to assess the company's performance and future prospects. The inclusion of former company names and industry classification helps contextualize STRATA Skin Sciences within its historical evolution and market segment, aiding in understanding its business trajectory.

Risk Assessment

Risk Level: medium — STRATA Skin Sciences, Inc. shows moderate risk based on this filing. The company's financial disclosures, particularly regarding debt facilities and customer concentration, suggest potential risks that warrant careful investor consideration.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand STRATA Skin Sciences' financial position and operational challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-28 — Filing Date (Date of 10-K submission)
• 1997-12-16 — Name Change Date (Date of name change from ELECTRO OPTICAL SCIENCES INC)
• 2010-05-04 — Name Change Date (Date of name change from MELA SCIENCES, INC.)

Key Players & Entities

• STRATA Skin Sciences, Inc. (company) — Filer name
• MELA SCIENCES, INC. (company) — Former company name
• ELECTRO OPTICAL SCIENCES INC (company) — Former company name
• SURGICAL & MEDICAL INSTRUMENTS & APPARATUS (company) — Standard Industrial Classification
• MidCap Financial Trust (company) — Lender for debt facilities

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company's revenue and accounts receivable may be significantly impacted by a small number of customers, as indicated by disclosures for 'Customer One' and 'Two Customers'.

Key Dates

• 2023-12-31: Fiscal Year End — The end of the reporting period for the 2023 10-K.
• 2024-03-28: 10-K Filing Date — The date STRATA Skin Sciences, Inc. submitted its annual report.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the primary financial and operational overview for STRATA Skin Sciences for the fiscal year 2023.)

SIC Code

Standard Industrial Classification code, used to classify businesses based on their primary activity. (Identifies STRATA Skin Sciences' business sector as SURGICAL & MEDICAL INSTRUMENTS & APPARATUS.)

Key Financial Figures

• $0.001 — nge On Which Registered Common Stock, $0.001 Par Value SSKN The Nasdaq Stock Mar
• $0.95 — eference to the closing market price of $0.95 of the common stock as of June 30, 2023
• $153 — els, ranges for the three codes between $153 per treatment to $228 per treatment. (S
• $228 — ree codes between $153 per treatment to $228 per treatment. (See "Third Party Reimbu

Filing Documents

• ef20015284_10k.htm (10-K) — 1913KB
• ef20015284_ex4-2.htm (EX-4.2) — 46KB
• ef20015284_ex10-26.htm (EX-10.26) — 51KB
• ef20015284_ex10-39.htm (EX-10.39) — 31KB
• ef20015284_ex23-1.htm (EX-23.1) — 3KB
• ef20015284_ex31-1.htm (EX-31.1) — 13KB
• ef20015284_ex31-2.htm (EX-31.2) — 14KB
• ef20015284_ex32-1.htm (EX-32.1) — 9KB
• 0001140361-24-015754.txt (&nbsp;) — 9998KB
• sskn-20231231.xsd (EX-101.SCH) — 72KB
• sskn-20231231_cal.xml (EX-101.CAL) — 83KB
• sskn-20231231_def.xml (EX-101.DEF) — 366KB
• sskn-20231231_lab.xml (EX-101.LAB) — 935KB
• sskn-20231231_pre.xml (EX-101.PRE) — 589KB
• ef20015284_10k_htm.xml (XML) — 1514KB

of this Annual Report on Form 10-K

Part III of this Annual Report on Form 10-K. TABLE OF CONTENTS Page PART I 3 Item 1.

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 36 Item 1C. Cybersecurity 36 Item 2.

Properties

Properties 37 Item 3.

Legal Proceedings

Legal Proceedings 37 Item 4. Mine Safety Disclosures 38 PART II 38 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 38 Item 6. [Reserved] 39 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 39 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 53 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 53 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 53 Item 9A.

Controls and Procedures

Controls and Procedures 53 Item 9B. Other Information 54 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 54 PART III 55 Item 10. Directors, Executive Officers and Corporate Governance 55 Item 11.

Executive Compensation

Executive Compensation 55 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 55 Item 13. Certain Relationships and Related Transactions, and Director Independence 55 Item 14. Principal Accounting Fees and Services 55 PART IV 56 Item 15. Exhibits and Financial Statement Schedules 56 Item 16. Form 10-K Summary 58 1 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (the "Annual Report"), including the sections entitled "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business," includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements relate to, among others, our plans, objectives and expectations for our business, operations and financial performance and condition, and can be identified by terminology such as "may," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "will," "could," "project," "target," "potential," "continue" and similar expressions that do not relate solely to historical matters. Forward-looking statements are based on management's belief and assumptions and on information currently available to management. Although we believe that the expectations reflected in forward-looking statements are reasonable, such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements.

Forward-looking statements include, but are not limited to, statements about

Forward-looking statements include, but are not limited to, statements about: forecasts of future business performance, consumer trends and macro-economic conditions; descriptions of market, competitive conditions, and competitive product introductions; descriptions of plans or objectives of management for future operations, products or services; actions by the FDA or other regulatory agencies with respect to our products or product candidates; changes to third-party reimbursement of laser treatments using our devices; our estimates regarding the sufficiency of our cash resources, expenses, capital requirements and needs for additional financing and our ability to obtain additional financing; our ability to protect our intellectual property and operate our business without infringing upon the intellectual property rights of others; anticipated results of existing or future litigation or government actions; health emergencies, the spread of infectious disease or pandemics; and descriptions or assumptions underlying or related to any of the above items. In light of these assumptions, risks and uncertainties, the results and events discussed in the forward-looking statements contained in this Annual Report might not occur. Investors are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this Annual Report, even if subsequently made available by us on our website or otherwise. We are not under any obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. You should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. All subsequent forward-looking statements attributable to us or to any person acting on our behalf are expressly qualified in their entirety by the cautionary

BUSINESS

BUSINESS Our Company Overview We are a medical technology company in dermatology dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Our products include the XTRAC and now Pharos excimer lasers and VTRAC lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions. Our products also include the TheraClear Acne Therapy System utilized in the treatment of mild to moderate inflammatory, comedonal and pustular acne. Corporate Overview We were incorporated in the State of New York in 1989 under the name Electro-Optical Sciences, Inc. and subsequently reincorporated under the laws of the State of Delaware in 1997. In April 2010, we changed our name to MELA Sciences, Inc. In June 2015, we completed the acquisition of the XTRAC Excimer Laser and the VTRAC excimer lamp businesses from PhotoMedex, Inc. (the "Acquisition"). Prior to the Acquisition, the Company's only product was the MelaFind system, or MelaFind, a device for aiding dermatologists in the evaluation of clinically atypical pigmented skin lesions. On January 5, 2016, we changed our name to STRATA Skin Sciences, Inc., and we have discontinued the MelaFind business. In August 2021 and January 2022, we acquired the Pharos U.S. dermatology business and the TheraClear acne treatment business, respectively. Post- COVID-19 Pandemic Since March 2020, the global pandemic related to a new strain of coronavirus ("COVID-19") has negatively impacted business conditions in the industry in which we operate, disrupted global supply chains, constrained workforce participation and created significant volatility and disruption of financial markets. The pandemic led to the suspension of elective procedures in the U.S. and to the temporary closure of many physician practices, which are our primary customers. While most offices have reopened, some physician practices closed and never reopened. Accordingly, the COVID-19 pand

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View this 10-K filing on SEC EDGAR