STRATA Skin Sciences, Inc. (NASDAQ: SSKN) is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions.
Recent Events
October 5, 2017. The company announced signing an Agreement with MedResults Network (MRN). MRN is a Group Purchasing Organization that has more than 3,000 members including Dermatology Offices, Plastic Surgery Practices, Facial Plastic Practices, MediSpas and other providers. MRN researches product categories and selects advantaged products and then negotiates pricing for its membership. MRN focuses on the aesthetic market and has agreements with more than 50 vendors with only one vendor per product category.
The management believes the products that STRATA introduced earlier this year in the Aesthetic space are outstanding, technology-advantaged products but lacked broad awareness. They believe that the reach and credibility of MRN will greatly benefit sales efforts. MedResults Network is a free membership service that offers instant discounts and quarterly rebates at no risk or obligation. They have partnered with over 50 leading national vendors to negotiate cost savings for its members in product categories including dermal fillers, lasers, skin care, and more.
Sept. 25, 2017. The company announced the closing of a transaction in which holders of its 2.25% Senior Series A Secured Convertible Debentures and 4% Senior Secured Convertible Debentures, both due July 30, 2021, have agreed to exchange all of such debentures, with an aggregate principal amount of approximately $40.7 million, into 40,617 shares of newly created Series C Convertible Preferred Stock, convertible into 15.1 million shares of common stock. In addition to eliminating the senior secured debt, the exchange has also eliminated the Company’s obligation to pay approximately $4.0 million of interest payments over the next four years.
Management believes the reduction in debt will result in a simplified balance sheet, and will improve access to the capital markets and increase financial flexibility.
September 5, 2017. SSKN received a response letter from the U.S. Food and Drug Administration concerning possible paths for 510k clearance of their new Optimal Dosing Technology (OTD) proposed to be used for the treatment of psoriasis, vitiligo, and other skin conditions.
The FDA response letter proposes two alternative paths for seeking regulatory clearance. The first path requires a clinical trial to substantiate potential claims for the OTD, and the second path is to seek regulatory clearance with no new claims regarding treatment or efficacy. Should the Company take the second path, they will likely consider initiatives to develop potential proprietary features for the OTD technology.
Products
The XTRAC excimer laser uses a highly targeted beam of therapeutic UVB light to treat affected skin areas without damaging surrounding healthy skin.1-3 Improvement is possible without the troublesome side effects of biologics or drug therapies, the messy application of topical treatments multiple times a day or the worry of exposing healthy skin to UV light.
Nordlys® Laser
The Nordlys Hybrid System incorporates a multitude of light-based technologies in an all-in-one compact platform – SWT (Selective Waveband Technology: the latest evolution and most efficacious utilization of Intense Pulsed Light), Nd:YAG and the FRAX 1550 non-ablative fractionated technology. The Nordlys laser uses Ellipse’s patented Dual Wave Filtration, a technology that has made the Nordlys the device of choice to over 6,000 cosmetic and dermatologic physician offices worldwide. The Nordlys system has 16 indications cleared to date by the U.S. Food and Drug Administration (FDA).
STRATAPENTM
STRATAPEN MicroSystems is a micropigmentation device that provides advanced technology offering exceptional results. The STRATAPEN features both a patent-pending Biolock cartridge, which incorporates a seven-step safety system to prevent fluids from entering the motor, as well as a patent-pending removable nose cone.
Market
According to Future Market Insights analysis, the global dermatology devices market is expected to reach US$ 2,708.4M in terms of revenue for 2016, witnessing a year-over-year growth of 6.2%.
Factors such as rising prevalence of skin problems including acne leading to scars, increasing obesity, and growing aesthetic awareness among people are likely to contribute to the revenue growth of the global dermatology devices market over the forecast period. Economic factors such as growing healthcare expenditure, increasing disposable income per capita, and rising government support in developed economies are expected to boost the growth of the global dermatology devices market over the forecast period.
Financial Results
Revenues for the second quarter of 2017 were $8.7 million compared with revenues for the second quarter of 2016 of $7.7 million.
Net loss for the second quarter of 2017 was $1.2 million or ($0.52) per diluted share, which included other income of $0.1 million for the change in fair value of warrant liability, $1.6 million in interest expense, $1.7 million in depreciation and amortization expenses and $0.1 million for income tax expense. This compares with net income for the second quarter of 2016 of $0.5 million or ($1.17) per diluted share, which included other income of $3.2 million for the change in fair value of warrant liability, $1.2 million in interest expense and $1.6 million in depreciation and amortization expenses and $0.1 million for income tax expense.
Revenues for the six months of 2017 were $16.0 million compared with revenues for the six months of 2016 of $15.4 million.
Net loss for the six months of 2017 was $3.4 million or ($1.53) per diluted share, which included $2.9 million in interest expense, $3.2 million in depreciation and amortization expenses and $0.1 million for income tax expense. This compares with net loss for the six months of 2016 of $0.9 million or ($2.76) per diluted share, which included other income of $5.2 million for the change in fair value of warrant liability, $2.4 million in interest expense and $3.3 million in depreciation and amortization expenses and $0.1 million for income tax expense.
SSKN is scheduled to release Q3 earnings on or about November 9, 2017.
Analysts Opinion
May-16-17 Reiterated Rodman & Renshaw Buy $1.50 → $12
Feb-21-17 Resumed Rodman & Renshaw Buy $1.50
Stock Influences and Risk Factors
The new MRN deal could generate significant revenue;
Any positive results from the FDA could be an immediate catalyst;
Laser treatments of psoriasis, vitiligo, atopic dermatitis, and leukoderma and any of our future products or services may fail to gain market acceptance;
The success of their products depends on third-party reimbursement of patients’ costs;
Rapid changes in technology in the medical devices industry or the development of a cure for skin conditions treated by their products could make their treatment system obsolete.
Stock Chart
On Wednesday, October 25, 2017, in intra-day trading, SSKN shares were at $1.42 (-4.05%) on traded volume of 340K shares. The current RSI (14) is 37.49
SSKN shares are trading below their 50-day moving average of $1.72 and below their 200-day moving average of $2.42.
Welcome to Traders News Source
Are you up over 400% this year? Our members are…
Traders News Source recent profiles and track record, 440% in verifiable potential gains for our members on 3 small cap alerts alone! These are just three examples from over a dozen winners this year.
June 7th, 2017- (NASDAQ: ARCI) alerted at .55/share hit $1.00/share the next day and $1.75/share within 3 months for gains of over 200%.
March 27th, 2017- (NYSE: XXII) opened at $1.09/share hit a high of $3.03/share so far our member potential gains 200%.
February 7th, 2017 (NASDAQ: OBCI) opening at $4.10/share. This coverage was due to the consistent exceptional quarterly growth coupled with a special divvy issued last year and as anticipated was announced again this year. So far OBCI has traded as high as $5.90/share for potential gains of 43% so far.
So, if you’ve been on the fence, perhaps it’s time to start doing some research and verify our numbers for yourself. We are constantly raising the bar and separate ourselves from the rest of the small-cap newsletters as the best in business.
We know with a large following comes a large responsibility as we have everyone from institutional investors to the beginner following our profiled securities in our newsletters. This is something we take very seriously always seeking small cap growth companies that have both near and long-term potential for our members.
Big Opportunities Trading Small Cap Stocks
***Get our small cap profiles, special situation and watch alerts in real time. We are now offering our VIP – SMS/text alert service for free, simply text the word “Traders” to the phone number “25827” from your cell phone***
Disclaimer
Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.
Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Vikas Agrawal, CFA. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I, wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.
This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.
We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.
When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.
17B Disclosure
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.
PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.
Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.
