UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 000-51481

STRATA SKIN SCIENCES, INC.

(Exact name of registrant as specified in its charter)

Delaware		13-3986004
(State or Other Jurisdiction of incorporation or Organization)		(I.R.S. Employer Identification No.)

5 Walnut Grove Drive, Suite 140, Horsham, Pennsylvania		19044
(Address of principal executive offices)		(Zip code)

Registrant’s telephone number, including area code: (215) 619-3200

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class		Trading Symbol(s)		Name Of Each Exchange On Which Registered
Common Stock, $0.001 Par Value		SSKN		The Nasdaq Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.0405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐	Non-accelerated filer ☒	Smaller reporting company ☒
			Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of our common stock as of August 7, 2025 was 4,171,161 shares.

STRATA SKIN SCIENCES, INC.

TABLE OF CONTENTS

		Page
Part I.	FINANCIAL INFORMATION

Item 1.	Financial Statements:

	Condensed Consolidated Balance Sheets as of June 30, 2025 (unaudited) and December 31, 2024	1

	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024 (unaudited)	2

	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three and Six Months Ended June 30, 2025 and 2024 (unaudited)	3

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 (unaudited)	4

	Notes to Condensed Consolidated Financial Statements (unaudited)	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosure about Market Risk	30

Item 4.	Controls and Procedures	30

Part II.	OTHER INFORMATION

Item 1.	Legal Proceedings	31

Item 1A.	Risk Factors	31

Item 5.	Other Information	31

Item 6.	Exhibits	32

	Signatures	33

	Certifications

Table of Contents

PART I - Financial Information

ITEM 1.

Financial Statements

STRATA Skin Sciences, Inc. and Subsidiary

Condensed Consolidated Balance Sheets

As of June 30, 2025 and December 31, 2024

(in thousands, except share and per share data)

	June 30, 2025			December 31, 2024
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	5,966		$	7,261
Restricted cash		—			1,334
Accounts receivable, net of allowance for credit losses of $604 and $433 at June 30, 2025 and December 31, 2024, respectively		4,022			5,253
Inventories		3,236			2,246
Prepaid expenses and other current assets		550			501
Total current assets		13,774			16,595
Property and equipment, net		8,604			10,061
Operating lease right-of-use assets		1,092			1,264
Intangible assets, net		4,363			5,348
Goodwill		2,658			2,658
Other assets		231			231
Total assets	$	30,722		$	36,157

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	2,945		$	2,433
Accrued expenses and other current liabilities		7,401			8,593
Deferred revenues		2,372			2,241
Current portion of operating lease liabilities		303			328
Current portion of contingent consideration		983			1,030
Total current liabilities		14,004			14,625
Long-term debt, net		15,270			15,192
Deferred revenues and other liabilities		264			353
Operating lease liabilities, net of current portion		780			919
Contingent consideration, net of current portion		96			96
Total liabilities		30,414			31,185
Commitments and contingencies (Note 13)
Stockholders’ equity:
Series C convertible preferred stock, $0.10 par value; 10,000,000 shares authorized, no shares issued and outstanding		—			—
Common stock, $0.001 par value; 150,000,000 shares authorized; 4,171,161 shares issued and outstanding at both June 30, 2025 and December 31, 2024		4			4
Additional paid-in capital		253,369			253,112
Accumulated deficit		(253,065	)		(248,144	)
Total stockholders’ equity		308			4,972
Total liabilities and stockholders’ equity	$	30,722		$	36,157

The accompanying notes are an integral part of these condensed consolidated financial statements.

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STRATA Skin Sciences, Inc. and Subsidiary

Condensed Consolidated Statements of Operations

For the Three and Six Months Ended June 30, 2025 and 2024

(in thousands, except share and per share data)

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024

Revenues, net	$	7,663		$	8,435		$	14,475		$	15,189
Cost of revenues		3,357			3,458			6,392			7,016
Gross profit		4,306			4,977			8,083			8,173
Operating expenses:
Engineering and product development		86			199			182			440
Selling and marketing		3,533			3,054			6,656			6,188
General and administrative		2,911			2,210			5,484			4,920
Total operating expenses		6,530			5,463			12,322			11,548
Loss from operations		(2,224	)		(486	)		(4,239	)		(3,375	)
Other income (expense):
Interest expense		(491	)		(531	)		(977	)		(1,055	)
Interest income		226			54			295			99
Other income		—			864			—			864
Total other (expense) income		(265	)		387			(682	)		(92	)
Net loss	$	(2,489	)	$	(99	)	$	(4,921	)	$	(3,467	)

Net loss per share of common stock, basic and diluted	$	(0.60	)	$	(0.03	)	$	(1.18	)	$	(0.99	)
Weighted average shares of common stock outstanding, basic and diluted		4,171,161			3,506,025			4,171,161			3,506,025

The accompanying notes are an integral part of these condensed consolidated financial statements.

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STRATA Skin Sciences, Inc. and Subsidiary

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the Three and Six Months Ended June 30, 2025 and 2024

(in thousands, except share data)

(unaudited)

	Common Stock				Additional Paid-in-Capital		Accumulated Deficit			Total Stockholders’ Equity
	Shares		Amount		Additional Paid-in-Capital		Accumulated Deficit			Total Stockholders’ Equity
Balance at January 1, 2025		4,171,161	$	4	$	253,112	$	(248,144	)	$	4,972
Stock-based compensation expense		—		—		129		—			129
Net loss		—		—		—		(2,432	)		(2,432	)
Balance at March 31, 2025		4,171,161		4		253,241		(250,576	)		2,669
Stock-based compensation expense		—		—		128		—			128
Net loss		—		—		—		(2,489	)		(2,489	)
Balance at June 30, 2025		4,171,161	$	4	$	253,369	$	(253,065	)	$	308

	Common Stock				Additional Paid-in-Capital		Accumulated Deficit			Total Stockholders’ Equity
	Shares		Amount		Additional Paid-in-Capital		Accumulated Deficit			Total Stockholders’ Equity
Balance at January 1, 2024		3,506,025	$	4	$	250,742	$	(238,058	)	$	12,688
Stock-based compensation expense		—		—		112		—			112
Net loss		—		—		—		(3,368	)		(3,368	)
Balance at March 31, 2024		3,506,025		4		250,854		(241,426	)		9,432
Stock-based compensation expense		—		—		163		—			163
Net loss		—		—		—		(99	)		(99	)
Balance at June 30, 2024		3,506,025	$	4	$	251,017	$	(241,525	)	$	9,496

The accompanying notes are an integral part of these condensed consolidated financial statements.

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STRATA Skin Sciences, Inc. and Subsidiary

Condensed Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2025 and 2024

(in thousands)

(unaudited)

	Six Months Ended June 30,
	2025			2024
Cash flows from operating activities:
Net loss	$	(4,921	)	$	(3,467	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		2,438			2,499
Amortization of operating lease right-of-use assets		172			174
Amortization of deferred financing costs and debt discount		78			70
Provision for credit losses		166			30
Stock-based compensation expense		257			275
Loss on disposal of property and equipment		63			19
Inventory write-off		—			141
Changes in operating assets and liabilities:
Accounts receivable		1,065			431
Inventories		(912	)		6