Financial Data and Key Metrics Changes - Second quarter revenue was $9.1 million, reflecting a 23% year-over-year growth, including a one-time capital equipment sale in China of approximately $1 million [9][29] - Equipment revenues for the second quarter were $3.5 million, an 83% increase compared to $1.9 million for the second quarter of 2021 [29] - Recurring revenues in the second quarter were $5.6 million, a 2% increase over the second quarter of 2021 [31] - Overall gross profit for the second quarter was $5 million or 55% of revenues, compared to $4.8 million or 65% of revenues for the second quarter of 2021 [31] - Net loss for the second quarter of 2022 was $1.9 million, compared to net earnings of $1.1 million for the second quarter of 2021 [35] Business Line Data and Key Metrics Changes - Domestic XTRAC installed base increased to 915 devices, up from 903 at the end of Q1 2022 [10] - High volume accounts contributed 54% of total gross domestic recurring revenues in Q2, up from 51% in Q2 2021 [12] - The company plans to deploy 15 to 20 XTRAC Momentum machines by year-end, focusing on high volume customers [13][42] Market Data and Key Metrics Changes - The company is targeting the $5.5 billion acne treatment market with the launch of TheraClearX, a noninvasive in-office procedure [16] - Internationally, the company received a one-time payment of approximately $1 million from a capital equipment sale in China, reinforcing its strategy to offer flexible models to international customers [23] Company Strategy and Development Direction - The company continues to focus on high volume accounts, which are critical for revenue generation [12] - STRATA is expanding its portfolio and entering new markets, with a strong emphasis on direct-to-consumer and direct-to-dermatologist marketing [13][27] - The company aims to improve gross margins throughout the remainder of 2022, returning to historical levels in the mid-sixties [32] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second half of 2022, expecting full-year revenue growth in the range of 10% to 17% year-over-year [26] - The company is monitoring macroeconomic factors and adjusting commercial strategies as necessary [26] - Management noted that patient levels have returned to normal, although staffing remains an issue in some offices [50] Other Important Information - The company welcomed a new Head of International Sales to enhance its commercial leadership team [24] - STRATA is actively engaging with key leaders in dermatology to support partner clinics and drive product adoption [18] Q&A Session Summary Question: Should we expect the lump from China to normalize back to previous levels for the back half of the year? - Management confirmed that the one-time capital equipment sale was an anomaly and expects normalization going forward [39] Question: Do you expect the ex-U.S. revenue to occur on the recurring side? - Management indicated that Japan has a good recurring revenue model, but other partners are more focused on equipment sales [40] Question: Can you walk us through some of the differences on the Momentum machine? - Management described the Momentum machine as more efficient and faster, allowing dermatologists to see more patients [41] Question: Any updates on the per system metrics for utilization? - Management stated that average recurring revenue per system is around $5,700, with a trend of increasing quarter-over-quarter [49] Question: Any material COVID or staffing impacts in any of your geographies? - Management noted that patient levels have returned to normal, but staffing remains an issue in some offices [50] Question: Any updates on topical Jack inhibitors and their impacts? - Management mentioned that new approvals for atopic dermatitis and vitiligo could drive more patients seeking treatment [53] Question: Is the conversion rate still in the range of 40% to 45%? - Management confirmed that the conversion rate remains in that range and is expected to improve as older machines begin to break down [55]

Revenue Growth - Total revenues for the three months ended June 30, 2022, were $9,105,000, an increase from $7,382,000 in the same period of 2021, representing a growth of approximately 23.3%[140] - Recognized recurring treatment revenue for the three months ended June 30, 2022, was $5,582,000, compared to $5,452,000 for the same period in 2021, reflecting an increase of about 2.4%[142] - The estimated number of treatments for the three months ended June 30, 2022, was approximately 86,000, compared to 78,000 treatments in the same period of 2021, reflecting a growth of about 10.3%[142] - Dermatology procedures equipment revenues for the three months ended June 30, 2022, were $3,523 million, up from $1,930 million in the same period of 2021, representing an increase of 82.6%[145][146] - Total revenues for the three months ended June 30, 2022, were $9,105 million, compared to $7,382 million for the same period in 2021, reflecting a growth of 23.3%[149] Acquisitions - The acquisition of Pharos U.S. dermatology business from Ra Medical Systems, Inc. was completed for an upfront cash payment of $3,700,000, aimed at increasing the recurring revenue base[133] - The acquisition of TheraClear Devices from Theravant Corporation involved an upfront cash payment of $500,000 and potential future earnout payments of up to $3,000,000 based on revenue milestones[134] Market Opportunity - The company estimates that there are approximately 7.5 million people in the U.S. suffering from psoriasis, and up to 125 million people worldwide, indicating a significant market opportunity[127] - The XTRAC system's use for psoriasis is covered by nearly all major insurance companies, including Medicare, enhancing its market accessibility[136] - The company plans to continue executing direct-to-patient advertising programs targeting psoriasis and vitiligo patients to increase market awareness and acceptance[143] Financial Performance - Gross profit for the three months ended June 30, 2022, was $4,993 million, with a gross profit percentage of 54.8%, down from 64.5% in the same period of 2021[149] - Gross profit for the six months ended June 30, 2022, was $9,121 million, with a gross profit percentage of 56.5%, down from 64.2% in the same period of 2021[150] - For the three months ended June 30, 2022, the company reported a net loss of $1,892 million compared to a net income of $1,082 million for the same period in 2021[164] - Non-GAAP adjusted EBITDA for the six months ended June 30, 2022, was $(301) million, a decrease from $(129) million for the same period in 2021[165] Expenses - Selling and marketing expenses for the three months ended June 30, 2022, increased to $4,146 million from $3,160 million in the same period of 2021, marking a rise of 31.0%[157] - Engineering and product development expenses decreased to $209 million for the three months ended June 30, 2022, from $403 million in the same period of 2021, a reduction of 48.2%[156] - Interest expense rose significantly to $208 million for the three months ended June 30, 2022, compared to $26 million in the same period of 2021, an increase of 700%[162] Cash Flow and Working Capital - As of June 30, 2022, the company's working capital was $4,266 million, down from $7,168 million as of December 31, 2021, primarily due to decreases in cash and accounts receivable[165] - Cash and cash equivalents were $10,036 million as of June 30, 2022, compared to $12,586 million as of December 31, 2021[165] - Net cash used in operating activities for the six months ended June 30, 2022, was $409 million, a decline from net cash provided of $387 million for the same period in 2021[169] - Net cash used in investing activities increased to $2,141 million for the six months ended June 30, 2022, compared to $1,466 million for the same period in 2021, primarily due to the asset purchase of TheraClear[170] - The company anticipates that its cash and cash equivalents, along with expected revenues, will be sufficient to meet its working capital needs for at least the next 12 months[168] Credit and Equity Agreements - The company entered into a credit agreement in September 2021, borrowing $8,000 million with a maturity date of September 1, 2026[166] - The company has an equity distribution agreement allowing for the sale of up to $11,000 million of common stock, with no shares sold under this agreement as of June 30, 2022[167] System Placement and Sales - The number of XTRAC systems placed in dermatologists' offices increased to 915 as of June 30, 2022, up from 890 at the end of December 31, 2021, indicating a growth of approximately 2.8%[127] - The company sold 35 systems internationally during the three months ended June 30, 2022, compared to 14 systems in the same period of 2021, indicating a growth in international sales[145][146] Deferred Revenues - As of June 30, 2022, deferred net revenues were $2,501,000, compared to $1,897,000 in the same period of 2021, indicating an increase of approximately 32%[144] - The company recognized approximately $220 million and $620 million of deferred service revenue associated with assumed service contracts from Ra Medical during the three and six months ended June 30, 2022, respectively[145]

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STRATA Skin Sciences, Inc. (NASDAQ:SSKN) Q1 2022 Earnings Conference Call May 11, 2022 4:30 PM ET Company Participants Leigh Salvo - Investor Relations Robert Moccia - Chief Executive Officer Christopher Lesovitz - Chief Financial Officer Conference Call Participants Destiny Alexandra Buch - Ladenburg Thalmann & Co. Inc. Suraj Kalia - Oppenheimer & Company, Inc. Operator Greetings. Welcome to the STRATA Skin Sciences First Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note, this conf ...

Revenue Performance - Total revenues for the three months ended March 31, 2022, were $7,041,000, an increase of 20.8% from $5,827,000 for the same period in 2021[125]. - Recognized recurring treatment revenue for the three months ended March 31, 2022, was $5,067,000, representing approximately 71,000 treatments, compared to $4,679,000 for approximately 67,000 treatments in the same period of 2021[126]. - Dermatology procedures equipment revenues for the three months ended March 31, 2022, were $1,974,000, up from $1,148,000 in the same period of 2021[129]. - Revenues from dermatology recurring procedures rose to $5,067 million in Q1 2022 from $4,679 million in Q1 2021, with a gross profit percentage decrease to 59.9% from 67.9%[133]. - Revenues from dermatology procedures equipment increased to $1,974 million in Q1 2022 from $1,148 million in Q1 2021, with a gross profit percentage increase to 55.4% from 46.6%[134]. Cost and Profitability - The cost of revenues for dermatology recurring procedures was $2,032,000 for the three months ended March 31, 2022, compared to $1,501,000 for the same period in 2021[131]. - Gross profit increased to $4,128 million for the three months ended March 31, 2022, compared to $3,713 million for the same period in 2021, with a gross profit percentage of 58.6% down from 63.7%[132]. - Non-GAAP adjusted EBITDA improved to $(508) million in Q1 2022 from $(811) million in Q1 2021, indicating a reduction in losses[140]. Expenses - Engineering and product development expenses decreased to $163 million in Q1 2022 from $384 million in Q1 2021, primarily due to reduced costs related to the development of XTRAC MomentumTM 1.0[135]. - Selling and marketing expenses increased to $3,616 million in Q1 2022 from $2,932 million in Q1 2021, driven by investments in sales and marketing and increased employee-related expenses[136]. - General and administrative expenses decreased to $2,652 million in Q1 2022 from $2,789 million in Q1 2021, mainly due to higher compensation and severance costs in the prior year[137]. - Interest expense rose significantly to $199 million in Q1 2022 from $30 million in Q1 2021, attributed to a higher interest rate on the Senior Term Facility[138]. Acquisitions and Business Expansion - The company acquired the Pharos U.S. dermatology business for $3.7 million in August 2021, expanding its customer base to 400 dermatology practices[118]. - In January 2022, the company acquired TheraClear Devices for an upfront cash payment of $0.5 million and potential future payments totaling up to $4.5 million based on performance milestones[119]. - As of March 31, 2022, there were 903 XTRAC systems placed in dermatologists' offices in the U.S., an increase from 890 at the end of 2021[111]. Market and Operational Impact - The company estimates that approximately 7.5 million people in the U.S. and up to 125 million people worldwide suffer from psoriasis, with 1% to 2% of the global population affected by vitiligo[111]. - Deferred net revenues as of March 31, 2022, were $1,971,000, compared to $1,769,000 for the same period in 2021, indicating a favorable impact on revenue recognition[128]. - The ongoing COVID-19 pandemic has negatively impacted operational performance, with staffing issues in physician offices affecting business[117]. Cash Flow and Working Capital - As of March 31, 2022, working capital was $4,627 million, down from $7,168 million as of December 31, 2021, primarily due to decreases in cash and accounts receivable[141]. - Net cash used in operating activities was $353 million for Q1 2022, compared to net cash provided of $153 million in Q1 2021, reflecting changes in asset and liability accounts[145].

| --- | --- | --- | --- | --- | |-------|-------|-------|-------|---------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Driving Value to Dermatology Partners | | | | | | Matching Patients with Clinics | | | | | | | | | | | | Investor Presentation April 2022 • | December 2020 Safe Harbor Statement 2 This presentation includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These st ...

• December 2020 March 2022 Driving Value to Dermatology Partners Matching Patients with Clinics Investor Presentation Safe Harbor Statement 2 This presentation 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' ...

STRATA Skin Sciences, Inc. (NASDAQ:SSKN) Q4 2021 Earnings Conference Call March 21, 2022 4:30 PM ET Company Participants Leigh Salvo - Investor Relations Robert Moccia - Chief Executive Officer Christopher Lesovitz - Chief Financial Officer Conference Call Participants Jeffrey Cohen - Ladenburg Thalmann & Co. Inc. Suraj Kalia - Oppenheimer & Company, Inc. Operator Greetings. Welcome to the STRATA Skin Sciences Fourth Quarter and Full Year 2021 Earnings Conference Call. At this time, all participants are in ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 0-11635 STRATA SKIN SCIENCES, INC. (Exact name of registrant as specified in its charter) | Delaware | 13-3986004 | | --- | --- | | (State or Other Jurisdiction of | (I.R.S. Employe ...

• December 2020 March 2022 Driving Value to Dermatology Partners Matching Patients with Clinics Investor Presentation Safe Harbor Statement 2 This presentation 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' ...