STRATA Skin Sciences, Inc. receives forgivable loan under
$ 2.0 million forgivable loan received
Provides Additional Business Update – Patient Awareness Program Launched
HORSHAM, Pa., April 27, 2020 (GLOBE NEWSWIRE) – STRATA Skin Sciences, Inc. (NASDAQ: SSKN) (“STRATA” or the “Company”), a developmentally dedicated dermatology and plastic surgery medical technology company and marketer of innovative products for the treatment of skin conditions, today announced that it has received a loan of approximately $ 2.0 million (the “PPP Loan”) from Republic Bank, as a lender, in accordance with the program. Payroll Check Protection (“PPP”) from Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) on April 22, 2020. The PPP loan matures on May 1, 2022 and carries a interest rate of 1.0% per annum. Payments of principal and interest on any outstanding balances begin on December 1, 2020.
All or part of the PPP loan may be canceled by the lender upon STRATA’s request beginning 60 days but no later than 120 days after loan approval and upon documentation of expenditure in accordance with the requirements set forth by the Small Business Administration (the “” SBA “) in accordance with the CARES Act. Under the CARES Act, loan cancellation is available for the sum of documented salary costs, covered rent payments, covered mortgage interest, and covered utilities during the eight-month period. weeks commencing on the date of disbursement of the PPP loan proceeds. For the purposes of the CARES Act, salary costs exclude individual employee compensation greater than $ 100,000, pro-rated annually. No more than 25% of the amount remitted shall be may be for non-salary costs Forgiveness is reduced if full-time staffing decreases or if the wages and salaries of employees with salaries of $ 100,000 or less per year are reduced by more than 25%. In the event that the PPP loan, or any part of it, is canceled under the PPP, the canceled amount is applied to the principal outstanding.
It should be noted that the SBA recently released the provisional final rule in light of some companies receiving PPP loans with respect to “companies owned by large companies with sufficient sources of liquidity to support the ongoing operations of the l eligible for a PPP loan? »STRATA is not owned by a large corporation and, although public, does not have substantial market value or access to capital markets; on the basis of its financial situation, STRATA considers itself eligible for the financing of a PPP loan.
Additionally, Dr. Rafaeli announced that as part of further efforts to conserve the Company’s cash resources, the STRATA management team has deferred the payment of its Fiscal 2019 bonuses of $ 333,000 and the board of directors deferred all second quarter attendance fees of $ 62,000.
As individual states across the United States begin to announce their return to normal business milestones, the Company is implementing its Patient Awareness Program, in which STRATA provides a unique benefit to its partner clinics, to rebuild quickly their patient referrals by re-engaging patients who were either in treatment or about to enter treatment before confinement. The Company, as part of its service to its partners, and using its internal call center and reimbursement teams, will provide outreach services on behalf of these clinics to their patients to bring them back for treatment. Currently, the company has hosted several webinars on this program with over 200 participants.
With a number of states updating their guidelines regarding the timing of authorization of elective procedures in health clinics, including dermatologists’ offices, we have already contacted 357 clinics in 18 states offering to assist these partners in their plans for openness and re-engagement with their patients.
By maintaining CDC and state guidelines, individual clinics will need to closely monitor the safety of their patients and staff; Commenting on his own reopening plans, Dr Barry Goldman, a certified dermatologist in New York City, said: “I don’t have to worry about the lack of data associated with COVID-19 and other modalities that can potentially cause immunosuppression when providing XTRAC therapy. XTRAC is a very safe and effective treatment for psoriasis and vitiligo. Strata Skin Sciences provides excellent support to help boost device usage.
Dr Dolev Rafaeli, President and CEO of the Company, said: “As a small publicly traded company, the stimulus from the federal government that we have received will help the company and our employees in these unprecedented times. The extra cash helps us get our patient education program started. The program is an affirmation of our business and the resilience of our unique business model where we can leverage our unique resources, systems and relationships with patients and our partner clinics to help get back to work in treating patients.
About STRATA Skin Sciences, Inc. (www.strataskinsciences.com)
STRATA Skin Sciences is a dermatology and plastic surgery medical technology company dedicated to the development, commercialization and commercialization of innovative products for the treatment of dermatological conditions. Its products include the XTRAC ® excimer laser and VTRAC ® lamp systems used in the treatment of psoriasis, vitiligo and various other skin conditions.
The company’s exclusive XTRAC® The excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic dermatitis and leukoderma, diseases that affect more than 35 million patients in the United States alone. The technology is covered by several patents, including exclusive rights to patents for the delivery of treatment to patients with vitiligo.
STRATA’s unique business model leverages Direct-to-Consumer (DTC) targeted advertising to generate awareness and uses its in-house call center and insurance advocacy teams to increase the volume of partner dermatology clinics. Society.
XTRAC has used this proven DTC model to expand its network of national dermatology partners to more than 822 clinics, with a global installed base of more than 2,000 devices. The Company is able to offer 90% of DTP patients an introduction to physicians prescribing a reimbursable solution, using XTRAC, within 10 miles of their home. The Company is a leader in generating clinical dermatology business for its partners.
This press release and oral statements made regarding the subjects of this press release contain “forward-looking statements” within the meaning of the Securities Litigation Reform Act of 1995 or the Reform Act, which may include, but are not limited to, statements. regarding estimates of revenue growth, plans, objectives, expectations and intentions of the Company and other statements contained in this press release that are not historical facts, including statements identified by words such as “Believe”, “plan”, “seek”, “expect”, “intend”, “estimate”, “anticipate”, “want” and similar expressions. All statements regarding the ability of the Company to generate the expected revenue stream, the ability of the Company to generate sufficient cash flow to fund ongoing operations and the research and development activities of the Company commencing at any time in the future ; litigation and regulatory proceedings to which the Company may be subject; the Company’s ability to execute business strategies, including its acquisition, business development and return strategies; the Company’s acquisition and business development strategy may fail to find advantageous targets; the Company’s ability to successfully integrate all of the assets, liabilities, customers, systems and executive personnel it acquires into its operations and its ability to achieve revenue synergies, strategic gains and cost savings may be considerably more difficult to achieve, if at all, or may take longer to achieve; potential goodwill impairment charges, future impairment charges and fluctuations in the fair value of business units or assets in the event that the projected financial results are not achieved on schedule; the Company’s debt and debt service requirements which may limit its operational and financial flexibility, as well as impose unfavorable interest and financing charges; the Company’s ability to maintain its existing credit facilities or obtain new satisfactory credit facilities; regulatory and political factors or conditions affecting the Company and / or the medical device industry in general; the public reaction to the Company’s advertisements and marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, the impact of COVID-19 on the use of XTRAC or the impact of COVID-19 in the dermatological segment, the risks and uncertainties associated with the duration of the COVID-19 epidemic and the measures that can be taken by government authorities to contain the epidemic or to deal with its impact, changes in regulation and supervision related to PPP; and the ability of the Company to increase its revenues and maintain such growth and statements expressing optimism or pessimism about the future results of operations are forward-looking statements within the meaning of the Reform Act. Forward-looking statements are based on management’s current beliefs and assumptions regarding future events and operating performance, and are inherently subject to significant business, economic and competitive uncertainties and contingencies and to changes in circumstances, many of which are beyond the control of the Company. Statements contained in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company assumes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.
Although the Company does not make forward-looking statements unless it believes it has a reasonable basis for doing so, the Company cannot guarantee their accuracy. The foregoing factors, among others, could cause actual results to differ materially from those described in these forward-looking statements. For a list of other factors that could affect the Company’s results, including estimates of revenue growth, see the documents filed by the Company with the Securities and Exchange Commission, including the “Caution Regarding Statements prospective ”,“ Article 1A. Risk factors ”and“ Article 7. Management report and analysis of the financial situation and operating results ”appearing in the Company’s annual report on form 10-K for the year ended December 31, 2019. No confidence Undue should not be given to any forward-looking statement.