STRATA Skin Sciences Incurs New Financial Obligation

TL;DR

**STRATA Skin Sciences just took on a new financial obligation, signaling potential changes to its balance sheet.**

AI Summary

STRATA Skin Sciences, Inc. (NASDAQ: SSKN) entered into a material definitive agreement and incurred a direct financial obligation on February 20, 2024. This 8-K filing, dated February 21, 2024, reports on these events, which include the creation of a new financial obligation for the company. The company, based in Horsham, Pennsylvania, operates in the surgical and medical instruments sector.

Why It Matters

This filing indicates STRATA Skin Sciences has taken on new debt or a significant financial commitment, which could impact its future liquidity and operational flexibility.

Risk Assessment

Risk Level: medium — The creation of a direct financial obligation introduces new liabilities and potential interest expenses, which could impact the company's financial health.

Key Players & Entities

• STRATA Skin Sciences, Inc. (company) — Registrant
• February 20, 2024 (date) — Date of earliest event reported
• February 21, 2024 (date) — Filing date
• Horsham, Pennsylvania (company) — Business address location
• 000-51481 (other) — SEC File Number

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value per share SSKN The NASDAQ
• $29.0 m — threshold financial covenant are set at $29.0 million, $29.25 million, $29.5 million an
• $29.25 m — cial covenant are set at $29.0 million, $29.25 million, $29.5 million and $30.0 million
• $29.5 million — e set at $29.0 million, $29.25 million, $29.5 million and $30.0 million for the periods endin
• $30.0 million — lion, $29.25 million, $29.5 million and $30.0 million for the periods ending March 31, 2024,
• $40,000 — on September 30, 2021 in the amount of $40,000, which was fully earned and paid; (b) o

Filing Documents

• ef20022109_8k.htm (8-K) — 37KB
• ef20022109_ex10-1.htm (EX-10.1) — 99KB
• ef20022109_ex10-4.htm (EX-10.4) — 27KB
• image0.jpg (GRAPHIC) — 65KB
• image00001.jpg (GRAPHIC) — 4KB
• 0001140361-24-008801.txt ( ) — 468KB
• sskn-20240220.xsd (EX-101.SCH) — 4KB
• sskn-20240220_lab.xml (EX-101.LAB) — 22KB
• sskn-20240220_pre.xml (EX-101.PRE) — 16KB
• ef20022109_8k_htm.xml (XML) — 4KB

01

Item 1.01. Entry into a Material Definitive Agreement. On February 20, 2024, STRATA Skin Sciences, Inc. (the "Company") entered into (a) the Amendment No. 4 to Credit and Security Agreement (the "Amendment") among MidCap Financial Trust ("MidCap"), as administrative agent, and the lenders identified therein, which amended the Credit and Security Agreement, dated as of September 30, 2021, as amended January 10, 2022, September 6, 2022 and June 30, 2023 (as amended by the Amendment, the "MidCap Credit Agreement"), and (b) a second amended and restated letter agreement (the "Second Amended and Restated Fee Letter Agreement") with MidCap, as agent. In connection with the Amendment, the parties revised the applicable minimum net revenue threshold financial covenant are set at $29.0 million, $29.25 million, $29.5 million and $30.0 million for the periods ending March 31, 2024, June 30, 2024, September 30, 2024 and December 31, 2024, respectively, and as set forth in the Amendment thereafter. Because the Company did not anticipate being in compliance with the applicable minimum net revenue financial threshold covenant for the period ended December 31, 2023 under the MidCap Credit Agreement, MidCap and the lenders in the Amendment, among other things, agreed to grant a limited waiver of the foregoing event that had occurred prior to the effectiveness of the Amendment and of any right the lenders may have to exercise any of their rights against the Company as a result. Pursuant to the Second Amended and Restated Fee Letter Agreement, the Company agreed to pay MidCap, as administrative agent, the following fees: (a) an origination fee on September 30, 2021 in the amount of $40,000, which was fully earned and paid; (b) on the maturity date of the MidCap Credit Agreement or any earlier date on which the obligations thereunder become due and payable in full or are otherwise paid full (such date, the "Full Exit Fee Payment Date"), the Company shall pay an exit fee equal to (

03

Item 2.03. Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of the Registrant. The information set forth in Item 1.01 of this Current Report on Form 8-K regarding the Financing Agreements is incorporated herein by reference in this Item 2.03.

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits: 10.1 Amendment No. 4 to Credit and Security Agreement, dated as of February 20, 204, among STRATA Skin Sciences, Inc., MidCap Financial Trust, as administrative agent, and the lenders identified therein. 10.2 Amendment No. 3 to Credit and Security Agreement, dated as of June 30, 2023, among STRATA Skin Sciences, Inc., MidCap Financial Trust, as administrative agent, and the lenders identified therein (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on June 30, 2023). 10.3 Credit and Security Agreement, dated as of September 30, 2021, as amended January 10, 2022, September 6, 2022 and June 30, 2023, among STRATA Skin Sciences, Inc., MidCap Financial Trust, as administrative agent, and the lenders identified therein (incorporated by reference to Exhibit A to Exhibit 10.2). 10.4 Letter agreement, dated as of February 20, 2024, between STRATA Skin Sciences, Inc. and MidCap Financial Trust, as administrative agent. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). * Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish a copy of such schedules and exhibits, or any section thereof, to the SEC upon request.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. STRATA SKIN SCIENCES, INC. Date: February 21, 2024 By: /s/ Christopher Lesovitz Christopher Lesovitz Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR