2020 Q2 Form 10-Q Financial Statement

#000105151420000037 Filed on August 12, 2020

View on sec.gov

Income Statement

Concept 2020 Q2 2019 Q2
Revenue $4.030M $7.725M
YoY Change -47.83% 4.56%
Cost Of Revenue $2.066M $2.815M
YoY Change -26.61% -20.68%
Gross Profit $1.964M $4.910M
YoY Change -60.0% 27.9%
Gross Profit Margin 48.73% 63.56%
Selling, General & Admin $3.332M $5.658M
YoY Change -41.11% 18.15%
% of Gross Profit 169.65% 115.23%
Research & Development $247.0K $235.0K
YoY Change 5.11% -12.64%
% of Gross Profit 12.58% 4.79%
Depreciation & Amortization $495.0K $691.0K
YoY Change -28.36% -25.38%
% of Gross Profit 25.2% 14.07%
Operating Expenses $3.579M $5.893M
YoY Change -39.27% 16.51%
Operating Profit -$1.615M -$983.0K
YoY Change 64.29% -19.36%
Interest Expense -$20.00K $145.0K
YoY Change -113.79% -55.79%
% of Operating Profit
Other Income/Expense, Net -$18.00K -$145.0K
YoY Change -87.59% -60.81%
Pretax Income -$1.633M -$1.128M
YoY Change 44.77% -29.01%
Income Tax $47.00K -$46.00K
% Of Pretax Income
Net Earnings -$1.680M -$1.082M
YoY Change 55.27% -33.58%
Net Earnings / Revenue -41.69% -14.01%
Basic Earnings Per Share -$0.05 -$0.03
Diluted Earnings Per Share -$0.05 -$0.03
COMMON SHARES
Basic Shares Outstanding 33.73M 31.36M
Diluted Shares Outstanding 33.73M 31.36M

Balance Sheet

Concept 2020 Q2 2019 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $11.23M $15.94M
YoY Change -29.55% 10.31%
Cash & Equivalents $11.23M $15.94M
Short-Term Investments
Other Short-Term Assets $7.830M $630.0K
YoY Change 1142.86% -24.1%
Inventory $3.470M $3.607M
Prepaid Expenses
Receivables $1.361M $3.476M
Other Receivables $0.00 $0.00
Total Short-Term Assets $23.89M $23.65M
YoY Change 0.99% 16.75%
LONG-TERM ASSETS
Property, Plant & Equipment $4.999M $4.789M
YoY Change 4.39% -23.63%
Goodwill $8.803M $8.803M
YoY Change 0.0% 0.0%
Intangibles $7.050M $8.860M
YoY Change -20.43% -16.96%
Long-Term Investments
YoY Change
Other Assets $314.0K $376.0K
YoY Change -16.49% 683.33%
Total Long-Term Assets $22.32M $24.31M
YoY Change -8.19% -5.73%
TOTAL ASSETS
Total Short-Term Assets $23.89M $23.65M
Total Long-Term Assets $22.32M $24.31M
Total Assets $46.21M $47.97M
YoY Change -3.66% 4.16%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.451M $2.091M
YoY Change 17.22% 41.57%
Accrued Expenses $4.703M $4.748M
YoY Change -0.95% 26.48%
Deferred Revenue $1.020M $2.292M
YoY Change -55.5% 27.19%
Short-Term Debt $7.280M $0.00
YoY Change -100.0%
Long-Term Debt Due $799.0K $1.767M
YoY Change -54.78%
Total Short-Term Liabilities $16.60M $11.14M
YoY Change 49.06% 57.21%
LONG-TERM LIABILITIES
Long-Term Debt $1.729M $5.699M
YoY Change -69.66% -22.16%
Other Long-Term Liabilities $71.00K $383.0K
YoY Change -81.46% 32.99%
Total Long-Term Liabilities $1.800M $6.082M
YoY Change -70.4% -20.07%
TOTAL LIABILITIES
Total Short-Term Liabilities $16.60M $11.14M
Total Long-Term Liabilities $1.800M $6.082M
Total Liabilities $19.43M $18.51M
YoY Change 4.99% 19.8%
SHAREHOLDERS EQUITY
Retained Earnings -$217.3M -$213.2M
YoY Change 1.92% 2.44%
Common Stock $34.00K $33.00K
YoY Change 3.03% 10.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $26.78M $29.46M
YoY Change
Total Liabilities & Shareholders Equity $46.21M $47.97M
YoY Change -3.66% 4.16%

Cashflow Statement

Concept 2020 Q2 2019 Q2
OPERATING ACTIVITIES
Net Income -$1.680M -$1.082M
YoY Change 55.27% -33.58%
Depreciation, Depletion And Amortization $495.0K $691.0K
YoY Change -28.36% -25.38%
Cash From Operating Activities $600.0K $70.00K
YoY Change 757.14% -153.85%
INVESTING ACTIVITIES
Capital Expenditures -$130.0K -$520.0K
YoY Change -75.0% 1.96%
Acquisitions
YoY Change
Other Investing Activities $0.00
YoY Change
Cash From Investing Activities -$130.0K -$520.0K
YoY Change -75.0% 4.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.530M 0.000
YoY Change -100.0%
NET CHANGE
Cash From Operating Activities 600.0K 70.00K
Cash From Investing Activities -130.0K -520.0K
Cash From Financing Activities 2.530M 0.000
Net Change In Cash 3.000M -450.0K
YoY Change -766.67% -104.08%
FREE CASH FLOW
Cash From Operating Activities $600.0K $70.00K
Capital Expenditures -$130.0K -$520.0K
Free Cash Flow $730.0K $590.0K
YoY Change 23.73% 55.26%

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us-gaap Prior Period Reclassification Adjustment Description
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<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: justify; font-style: italic; font-weight: bold;">Reclassifications</div><div style="text-align: justify;">Certain reclassifications from the prior year presentation have been made to conform to the current year presentation. These reclassifications did not have a material impact on the Company&#8217;s equity, results of operations, or cash flows.</div></div>
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
2528000
us-gaap Proceeds From Issuance Of Long Term Debt
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0
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CY2020Q2 us-gaap Product Warranty Accrual Payments
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ProductWarrantyAccrualPayments
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us-gaap Product Warranty Accrual Payments
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CY2020Q1 us-gaap Product Warranty Accrual
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ProductWarrantyAccrual
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CY2020Q2 us-gaap Product Warranty Accrual Period Increase Decrease
ProductWarrantyAccrualPeriodIncreaseDecrease
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CY2019Q2 us-gaap Product Warranty Accrual Period Increase Decrease
ProductWarrantyAccrualPeriodIncreaseDecrease
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us-gaap Product Warranty Accrual Period Increase Decrease
ProductWarrantyAccrualPeriodIncreaseDecrease
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us-gaap Product Warranty Accrual Period Increase Decrease
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CY2019Q2 us-gaap Product Warranty Accrual Noncurrent
ProductWarrantyAccrualNoncurrent
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sskn Payment For Lasers Placed In Service Net
PaymentForLasersPlacedInServiceNet
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PropertyPlantAndEquipmentGross
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PropertyPlantAndEquipmentNet
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CY2019Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
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us-gaap Provision For Doubtful Accounts
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us-gaap Provision For Doubtful Accounts
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CY2020Q2 us-gaap Research And Development Expense
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us-gaap Research And Development Expense
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ResearchAndDevelopmentExpense
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CY2019Q4 us-gaap Restricted Cash Current
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CY2019Q2 us-gaap Restricted Cash Current
RestrictedCashCurrent
0
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CY2019Q4 us-gaap Retained Earnings Accumulated Deficit
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CY2020Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
4030000
CY2019Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
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us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
15208000
CY2020Q2 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
214000
CY2020Q2 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
163000
CY2020Q2 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
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P1Y
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P0Y11M19D
CY2020Q2 us-gaap Sales And Excise Tax Payable Current
SalesAndExciseTaxPayableCurrent
3097000
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SalesAndExciseTaxPayableCurrent
3193000
sskn Earnings Per Share Basic And Diluted Preferred Share
EarningsPerShareBasicAndDilutedPreferredShare
-26.66
CY2020Q2 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
1442000
CY2019Q2 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
2958000
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
4395000
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
6024000
us-gaap Share Based Compensation
ShareBasedCompensation
840000
us-gaap Share Based Compensation
ShareBasedCompensation
626000
CY2020Q2 us-gaap Share Based Compensation
ShareBasedCompensation
410000
CY2019Q2 us-gaap Share Based Compensation
ShareBasedCompensation
303000
CY2020Q2 us-gaap Short Term Bank Loans And Notes Payable
ShortTermBankLoansAndNotesPayable
7275000
CY2019Q4 us-gaap Short Term Bank Loans And Notes Payable
ShortTermBankLoansAndNotesPayable
7275000
dei Amendment Flag
AmendmentFlag
false
CY2019Q1 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
0
CY2019Q2 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
0
CY2020Q2 us-gaap Stock Issued During Period Value Restricted Stock Award Gross
StockIssuedDuringPeriodValueRestrictedStockAwardGross
0
CY2020Q2 us-gaap Stockholders Equity
StockholdersEquity
26778000
CY2019Q4 us-gaap Stockholders Equity
StockholdersEquity
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CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
31248000
CY2019Q1 us-gaap Stockholders Equity
StockholdersEquity
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CY2019Q2 us-gaap Stockholders Equity
StockholdersEquity
29459000
CY2020Q1 us-gaap Stockholders Equity
StockholdersEquity
28048000
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: justify; font-style: italic; font-weight: bold;">Use of Estimates</div><div style="text-align: justify;">The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates and be based on events different from those assumptions. As of June 30, 2020, the more significant estimates include (1) revenue recognition, in regards to deferred revenues and the contract term and valuation allowances of accounts receivable, (2) the inputs used in the impairment analyses of goodwill, (3) the estimated useful lives of intangible assets and property and equipment, (4) the inputs used in determining the fair value of equity-based awards, (5) the valuation allowance related to deferred tax assets, (6) the inventory reserves, (7) state sales and use tax accruals and (8) warranty claims.</div><div>&#160;</div><div style="text-align: justify;">Additionally, the full impact of the COVID-19 outbreak is unknown and cannot be reasonably estimated. However, management has made appropriate accounting estimates on certain accounting matters, which include the allowance for doubtful accounts, inventory valuation, carrying value of the goodwill and other long-lived assets, based on the facts and circumstances available as of the reporting date. The Company&#8217;s future assessment of the magnitude and duration of the COVID-19 outbreak, as well as other factors, could result in material impacts to the Company&#8217;s financial statements in future reporting periods.</div></div>
CY2020Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
33731739
CY2019Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
31359104
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
31033114
CY2020Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
33731739
CY2019Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
31033114
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Period End Date
DocumentPeriodEndDate
2020-06-30
dei Entity Address State Or Province
EntityAddressStateOrProvince
PA
dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
dei Entity Filer Category
EntityFilerCategory
Non-accelerated Filer
dei Entity Registrant Name
EntityRegistrantName
STRATA Skin Sciences, Inc.
dei Entity Central Index Key
EntityCentralIndexKey
0001051514
CY2020Q3 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
33754909
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2020
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q2
dei Document Type
DocumentType
10-Q
dei Entity Interactive Data Current
EntityInteractiveDataCurrent
Yes
dei Entity Shell Company
EntityShellCompany
false
dei Entity Emerging Growth Company
EntityEmergingGrowthCompany
false
dei Entity Small Business
EntitySmallBusiness
true
sskn Increase Decrease In Operating Lease Liabilities
IncreaseDecreaseInOperatingLeaseLiabilities
-142000
sskn Increase Decrease In Operating Lease Liabilities
IncreaseDecreaseInOperatingLeaseLiabilities
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sskn Payment For Lasers Placed In Service Net
PaymentForLasersPlacedInServiceNet
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sskn Increase Decrease Of Lease Liabilities Arising From Obtaining Right Of Use Assets
IncreaseDecreaseOfLeaseLiabilitiesArisingFromObtainingRightOfUseAssets
0
sskn Increase Decrease Of Lease Liabilities Arising From Obtaining Right Of Use Assets
IncreaseDecreaseOfLeaseLiabilitiesArisingFromObtainingRightOfUseAssets
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CY2020Q2 sskn Earnings Per Share Basic And Diluted Preferred Share
EarningsPerShareBasicAndDilutedPreferredShare
0
CY2019Q2 sskn Earnings Per Share Basic And Diluted Preferred Share
EarningsPerShareBasicAndDilutedPreferredShare
-11.94
sskn Earnings Per Share Basic And Diluted Preferred Share
EarningsPerShareBasicAndDilutedPreferredShare
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CY2020Q2 sskn Weighted Average Number Of Share Outstanding Basic And Diluted Preferred Stock
WeightedAverageNumberOfShareOutstandingBasicAndDilutedPreferredStock
0
CY2019Q2 sskn Weighted Average Number Of Share Outstanding Basic And Diluted Preferred Stock
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sskn Weighted Average Number Of Share Outstanding Basic And Diluted Preferred Stock
WeightedAverageNumberOfShareOutstandingBasicAndDilutedPreferredStock
740
sskn Weighted Average Number Of Share Outstanding Basic And Diluted Preferred Stock
WeightedAverageNumberOfShareOutstandingBasicAndDilutedPreferredStock
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CY2020Q2 sskn Contract With Customer Liability Current Advance Consideration
ContractWithCustomerLiabilityCurrentAdvanceConsideration
163000
CY2020Q2 sskn Co Pay Reimbursements Recorded As Reduction Of Revenue
CoPayReimbursementsRecordedAsReductionOfRevenue
-86000
CY2019Q2 sskn Co Pay Reimbursements Recorded As Reduction Of Revenue
CoPayReimbursementsRecordedAsReductionOfRevenue
-177000
sskn Co Pay Reimbursements Recorded As Reduction Of Revenue
CoPayReimbursementsRecordedAsReductionOfRevenue
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sskn Co Pay Reimbursements Recorded As Reduction Of Revenue
CoPayReimbursementsRecordedAsReductionOfRevenue
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CY2019Q1 sskn Conversion Of Convertible Preferred Stock Amount
ConversionOfConvertiblePreferredStockAmount
0
CY2019Q2 sskn Conversion Of Convertible Preferred Stock Amount
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0
CY2020Q1 sskn Conversion Of Convertible Preferred Stock Amount
ConversionOfConvertiblePreferredStockAmount
0
sskn Operating Lease Incremental Borrowing Rate Percent
OperatingLeaseIncrementalBorrowingRatePercent
0.0976
CY2020Q2 sskn Accrued Professional Fees Other Accrued Liabilities
AccruedProfessionalFeesOtherAccruedLiabilities
487000
CY2019Q4 sskn Accrued Professional Fees Other Accrued Liabilities
AccruedProfessionalFeesOtherAccruedLiabilities
578000
CY2020Q2 sskn Percentage Of Gross Profit
PercentageOfGrossProfit
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sskn Percentage Of Gross Profit
PercentageOfGrossProfit
0.5910
CY2019Q2 sskn Percentage Of Gross Profit
PercentageOfGrossProfit
0.6360
sskn Percentage Of Gross Profit
PercentageOfGrossProfit
0.6260
CY2020Q2 sskn Delayed Payment To Vendors
DelayedPaymentToVendors
781000

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