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Here are 1-3 brief analogies for Strata Skin Sciences (SSKN):

• A Stryker (SYK) for dermatology, manufacturing specialized light and laser devices for chronic skin conditions like psoriasis and vitiligo.
• The Intuitive Surgical (ISRG) for dermatology, providing advanced light and laser therapy systems to treat skin diseases.

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• XTRAC Excimer Laser System: This device delivers targeted narrowband UVB light to treat chronic skin conditions such as psoriasis, vitiligo, and atopic dermatitis.
• PHAROS Excimer Laser System: This is another excimer laser system used for targeted phototherapy to treat various chronic skin conditions.

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Strata Skin Sciences (SSKN) primarily sells its medical devices to other companies and organizations within the healthcare sector, rather than directly to individuals.

These customers are the medical professionals and practices who utilize the XTRAC and Pharos excimer lasers and the TheraClear X acne device for patient treatment. As such, Strata Skin Sciences does not typically identify specific major public company customers, as its customer base is comprised of a large number of individual practices, clinics, and hospital departments.

Its major categories of customers include:

• Dermatology Clinics and Practices
• Medical Spas and Aesthetic Centers
• Hospitals and Medical Centers with Dermatology Departments

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Dr. Dolev Rafaeli, Vice-Chairman, President and Chief Executive Officer

Dr. Rafaeli assumed the duties of Vice-Chairman, President and Chief Executive Officer of Strata Skin Sciences on October 30, 2023. He brings over 30 years of experience in the healthcare, medical device, consumer, and industrial services sectors. Dr. Rafaeli previously served as President and CEO of Strata Skin Sciences from 2018 to 2021. Prior to that, he was the President and CEO of PhotoMedex (Nasdaq: PHMD), the company responsible for developing the XTRAC® and VTRAC® technologies, which were subsequently sold to Strata in 2015. During his time as CEO of PhotoMedex from 2011 to 2017, he significantly expanded the global installed base to over 2,000 devices and established a unique suite of services that fueled growth in recurring revenue sales. From 2006 to 2017, Dr. Rafaeli also held the position of President and CEO of Radiancy Inc., a subsidiary of PhotoMedex. He currently serves on the Board of Directors of Trukera Medical (formerly TearLab Corporation). Dr. Rafaeli holds a PhD in business management and an MBA summa cum laude from Cornell University.

John Gillings, Principal Financial Officer & Chief Accounting Officer

John Gillings serves as the Principal Financial Officer and Chief Accounting Officer of Strata Skin Sciences.

Shmuel Gov, Chief Operating Officer

Shmuel Gov was promoted to Chief Operating Officer of Strata Skin Sciences on December 4, 2023. He has over 30 years of experience in medical device business, operations, and research and development. Prior to this role, he was the Senior Vice President and General Manager at Strata, overseeing operations at the company's manufacturing and R&D facility in Carlsbad, California. Mr. Gov joined Strata in 2015 as Vice President and General Manager. Before joining the company, he managed the acquisition of LasikPlus for Photomedex, a company from which Strata later acquired its XTRAC® and VTRAC® product lines. He was instrumental in developing Photomedex's unique go-to-market strategy for providing value-added services. Mr. Gov holds degrees in electronics engineering and international business management.

Jay Sturm, General Counsel & Corporate Secretary

Jay Sturm serves as the General Counsel & Corporate Secretary for Strata Skin Sciences.

Dr. Uri Geiger, Chairman of the Board

Dr. Uri Geiger is the Chairman of the Board of Directors for Strata Skin Sciences. He co-founded Accelmed, a private equity investment firm focused on medical device companies, in 2009, and serves as its Managing Partner. Before Accelmed, Dr. Geiger was CEO of Exalenz Bioscience Ltd., a medical technology company, from 2006 to 2008. He also co-founded and served as CEO of GalayOr Networks, a developer of optical components, from 2001 to 2003.

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The key risks to Strata Skin Sciences (symbol: SSKN) include its precarious financial health and liquidity, significant market volatility, and ongoing regulatory and competitive pressures.

1. Financial Health and Liquidity: Strata Skin Sciences exhibits poor financial strength, with a Piotroski F-Score of 3, indicating weak business operations. The company faces high leverage and liquidity concerns, evidenced by a current ratio of 0.95 and a quick ratio of 0.75. Its Altman Z-Score of -11.45 places it in the distress zone, suggesting a possibility of bankruptcy within the next two years. The company has reported losses with a negative operating income and has a critical need for capital, highlighted by an equity distribution agreement that introduces the risk of dilution for existing shareholders.
2. Market Volatility and Lack of Sustained Growth Drivers: SSKN's stock is characterized by "very high risk," marked by high daily volatility and at times, low trading volume. Despite occasional short-term speculative rallies, the company has experienced long-term underperformance, indicating a lack of fundamental drivers for sustained growth. This volatility makes it a high-risk proposition for most investors.
3. Regulatory and Competitive Pressures: Strata Skin Sciences operates within the medical devices industry, which is subject to inherent sector-specific risks such as regulatory changes and intense competitive pressures. The company is also facing ongoing litigation related to false advertising, which could result in financial and reputational damage. Furthermore, delays in securing temporary CPT (Current Procedural Terminology) codes for expanded reimbursement could negatively impact the company's financial stability until rules are finalized.

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The emergence of topical Janus kinase (JAK) inhibitors, specifically ruxolitinib cream (Opzelura), represents a clear emerging threat. Opzelura was the first and remains the only FDA-approved topical treatment specifically for repigmentation in nonsegmental vitiligo, receiving approval in July 2022. This directly competes with Strata Skin Sciences' XTRAC excimer laser, which is also used for vitiligo repigmentation. Opzelura offers patients a convenient at-home topical application, potentially reducing the need for in-office light-based therapies and shifting market share in the vitiligo treatment landscape.

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Strata Skin Sciences (SSKN) focuses on innovative products for the in-office treatment of various dermatologic conditions, primarily through its XTRAC® excimer laser system, VTRAC® lamp systems, and the TheraClear®X Acne Therapy System.

Addressable Markets:

• XTRAC®/VTRAC® Systems (for Psoriasis, Vitiligo, Eczema, Atopic Dermatitis, Leukoderma)
  • The global phototherapy treatment market size is estimated at approximately $1.77 billion in 2025 and is projected to reach around $2.58 billion by 2034.
  • The North American phototherapy treatment market size surpassed $612.00 million in 2024.
  • The global phototherapy equipment market was valued at $654.3 million in 2024 and is anticipated to grow to $1.2 billion by 2034.
  • The North American phototherapy equipment market accounted for $219.4 million in 2024.
  • In the U.S., the addressable patient population for XTRAC® excimer laser treatments, including inflammatory and autoimmune skin conditions like vitiligo, atopic dermatitis, and alopecia areata, in addition to psoriasis, is potentially over 30 million patients.
• TheraClear®X Acne Therapy System (for Acne Treatment)
  • The global acne treatment market size is estimated at approximately $7.2 billion in 2024 and is forecasted to reach $12.44 billion by 2034.
  • Another estimate places the global acne treatment market size at $11.62 billion in 2024, projected to reach $17.48 billion by 2032.
  • The North American acne treatment market was valued at $5.70 billion in 2024.
  • The U.S. acne treatment market size was approximately $2.79 billion in 2024 and is projected to reach around $4.88 billion by 2034.
• Combined Market in Mexico (Acne, Psoriasis, and Vitiligo)
  • Strata Skin Sciences has access to a nearly $300 million market in Mexico for acne, psoriasis, and vitiligo.

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Here are the expected drivers of future revenue growth for Strata Skin Sciences (SSKN) over the next 2-3 years:

1. Expanded Indications and Reimbursement for XTRAC: The American Medical Association's CPT Editorial Panel has approved updates to CPT codes, expanding reimbursement eligibility for XTRAC excimer laser treatments to include all inflammatory and autoimmune skin conditions, such as vitiligo, atopic dermatitis, and alopecia areata, in addition to psoriasis, effective January 1, 2027. Strata is actively working with the Centers for Medicare & Medicaid Services (CMS) to secure temporary codes to make these expanded indications reimbursable as early as the 2026 rule cycle. This expansion is projected to effectively triple the addressable patient population to over 30 million patients and could increase revenue per procedure from $160 to $230.
2. Growth of the Elevate 360 (E360) Consulting Services Platform: The E360 program is designed to help dermatology clinics maximize revenue opportunities by implementing best practices in marketing, reimbursement, patient scheduling, and retention. Since the beginning of 2025, 99 of the approximately 844 clinics operating under XTRAC usage agreements have adopted E360, reporting an average 7% year-over-year revenue increase. This program also contributes to new clinic partnership agreements and strengthens the economics of the XTRAC platform.
3. Direct-to-Consumer (DTC) Marketing Initiatives: Strata's DTC efforts are a key component of its turnaround strategy and are demonstrating promising results. The company's DTC strategy continues to strengthen, driving a significant increase in unique psoriasis and acne patients. For instance, in the first quarter of 2025, DTC initiatives drove 32% more unique psoriasis patients and 128% more unique acne patients compared to the prior-year period.
4. Expansion of TheraClearX Device Placements and Acne Treatment Market: The TheraClearX device, which treats acne, is a growing part of Strata's revenue. The company has been expanding its domestic installed base of TheraClearX devices, reaching 161 devices in the U.S. by the end of Q2 2025, up from 117 devices at the end of Q2 2024. TheraClearX offers dermatologists a reimbursable option for acne treatment, improving practice economics and addressing limitations of existing therapies. Strata has also secured pre-authorizations for over 2,000 acne patients at partner clinics, indicating continued growth potential.
5. Strategic International Expansion and Distribution: Strata is focused on expanding its international presence, which accounted for nearly a third of its total revenue in 2023. The company has renewed exclusive distribution agreements in key markets such as China and Japan, providing improved visibility for its international segment. Additionally, Strata entered an exclusive distribution agreement in Mexico in January 2023, for its TheraClearX, VTRAC, and XTRAC products, aiming to tap into a nearly $300 million market for acne, psoriasis, and vitiligo. International sales saw a 41% increase year-over-year in Q4 2024.

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Share Issuance

• In September 2025, Strata Skin Sciences completed a registered direct offering, issuing 1,097,547 shares of common stock at $2.204 per share, resulting in gross proceeds of approximately $2.42 million. The company intends to use the net proceeds for working capital and general corporate purposes.
• A 1-for-10 reverse stock split of common stock was effected in June 2024.

Inbound Investments

• The company received approximately $2.42 million in gross proceeds from a registered direct offering of common stock in September 2025, with funds allocated for working capital and general corporate purposes.

Capital Expenditures

• Strata Skin Sciences plans to continue deploying its existing capital equipment and intends to increase capital expenditures once its current installed base of equipment is fully utilized.