Delaware
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000-51481
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13-3986004
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(State or Other
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(Commission File
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(I.R.S. Employer
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Jurisdiction of
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Number)
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Identification No.)
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Incorporation)
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100 Lakeside Drive, Suite 100, Horsham,
Pennsylvania
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19044
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(Address of Principal Executive Offices)
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(Zip Code)
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MELA SCIENCES, INC.
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Date: November 12, 2015
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By:
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/s/ Christina L. Allgeier |
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Christina L. Allgeier
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Chief Financial Officer
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Exhibit No.
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Exhibit Description
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99.1
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Press Release dated November 12, 2015 issued by Mela Sciences, Inc.
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·
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Third quarter revenue for the acquired businesses was $8.2 million in line with expectations.
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·
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The installed base of XTRAC systems in the U.S. expanded to 698 systems, up from 590 at the end of the third quarter 2014, as reported to us by PhotoMedex.
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·
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Achieved positive non-GAAP adjusted income in first full quarter of combined operations. See Non-GAAP Measures below.
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·
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Integration of the acquired businesses into MELA is essentially complete.
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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|||||||||||||||
(in thousands)
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2015
|
2014
|
2015
|
2014
|
||||||||||||
Net (loss) income as reported
|
$
|
(9,234
|
)
|
$
|
(2,288
|
)
|
$
|
(24,354
|
)
|
$
|
(9,641
|
)
|
||||
Adjustments:
|
||||||||||||||||
Depreciation and amortization expense
|
1,710
|
489
|
2,348
|
1,371
|
||||||||||||
Interest expense, net
|
506
|
104
|
794
|
105
|
||||||||||||
Non-cash interest expense
|
5,071
|
423
|
7,944
|
423
|
||||||||||||
EBITDA
|
(1,947
|
)
|
(1,272
|
)
|
(13,268
|
)
|
(7,742
|
)
|
||||||||
Stock-based compensation expense
|
1,007
|
115
|
1,483
|
447
|
||||||||||||
Acquisition costs
|
-
|
-
|
456
|
-
|
||||||||||||
Change in fair value of warrants
|
1,329
|
(2,108
|
)
|
679
|
(7,151
|
)
|
||||||||||
Registration rights liquidated charges
|
-
|
-
|
-
|
3,420
|
||||||||||||
Impairment of property and equipment
|
-
|
-
|
920
|
-
|
||||||||||||
Inventory obsolescence charges
|
-
|
-
|
4,818
|
-
|
||||||||||||
Non-GAAP adjusted income (loss)
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$
|
389
|
$
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(3,265
|
)
|
$
|
(4,912
|
)
|
$
|
(11,026
|
)
|
September 30, 2015
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December 31, 2014
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|||||||
ASSETS
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(unaudited)
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|||||||
Current assets:
|
||||||||
Cash and cash equivalents
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$
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3,169
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$
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11,434
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||||
Restricted cash
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100
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-
|
||||||
Accounts receivable, net
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4,182
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220
|
||||||
Inventories, net
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3,915
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5,275
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||||||
Other current assets
|
596
|
274
|
||||||
Property and equipment, net
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14,461
|
1,961
|
||||||
Goodwill and other intangible assets
|
24,608
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37
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||||||
Other non-current assets, net
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1,123
|
869
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||||||
Total assets
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$
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52,154
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$
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20,070
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||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
Current liabilities:
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||||||||
Senior Note payable and other notes payable
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$
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8,887
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$
|
-
|
||||
Accounts payable and accrued current liabilities
|
6,113
|
2,144
|
||||||
Current portion of deferred revenues
|
267
|
43
|
||||||
Senior secured convertible debentures, net
|
11,373
|
5,001
|
||||||
Warrant liability
|
9,535
|
499
|
||||||
Other long-term liabilities
|
103
|
107
|
||||||
Stockholders' equity
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15,876
|
12,276
|
||||||
Total liabilities and stockholders' equity
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$
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52,154
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$
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20,070
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For the Three Months Ended
September 30,
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For the Nine Months Ended
September 30,
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|||||||||||||||
2015
|
2014
|
2015
|
2014
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|||||||||||||
Revenues
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$
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8,323
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$
|
218
|
$
|
9,015
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$
|
541
|
||||||||
Cost of revenues
|
3,042
|
1,560
|
10,226
|
3,755
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||||||||||||
Gross profit (loss)
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5,281
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(1,342
|
)
|
(1,211
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)
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(3,214
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)
|
|||||||||
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||||||||||||||||
Operating expenses:
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||||||||||||||||
Engineering and product development
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471
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345
|
946
|
1,423
|
||||||||||||
Selling and marketing
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4,001
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429
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5,984
|
2,366
|
||||||||||||
General and administrative
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3,132
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1,885
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6,819
|
5,988
|
||||||||||||
|
7,604
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2,659
|
13,749
|
9,777
|
||||||||||||
Operating loss before other income (expense), net
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(2,323
|
)
|
(4,001
|
)
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(14,960
|
)
|
(12,991
|
)
|
||||||||
|
||||||||||||||||
Other income (expense), net:
|
||||||||||||||||
Interest expense, net
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(5,577
|
)
|
(527
|
)
|
(8,738
|
)
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(528
|
)
|
||||||||
Change in fair value of warrant liability
|
(1,329
|
)
|
2,108
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(679
|
)
|
7,151
|
||||||||||
Registrations rights liquidated damages
|
-
|
-
|
-
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(3,420
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)
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|||||||||||
Gain on sale of assets
|
-
|
11
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-
|
16
|
||||||||||||
Other (expense) income, net
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(5
|
)
|
121
|
23
|
131
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|||||||||||
(6,911
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)
|
1,713
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(9,394
|
)
|
3,350
|
|||||||||||
Net loss
|
( 9,234
|
)
|
(2,288
|
)
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( 24,354
|
)
|
( 9,641
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)
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||||||||
Deemed dividend related to warrant modification
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(2,962
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)
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-
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(2,962
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)
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-
|
||||||||||
Net loss attributable to common stockholders
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$
|
(12,196
|
)
|
$
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(2,288
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)
|
$
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(27,316
|
)
|
$
|
(9,641
|
)
|
||||
Basic and diluted net loss per share
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$
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(1.29
|
)
|
$
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(0.44
|
)
|
$
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(3.42
|
)
|
$
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(1.89
|
)
|
||||
Shares used in computing basic and diluted net loss per share
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9,442,022
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5,216,290
|
7,994,012
|
5,108,418
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||||||||||||
For the Nine Months Ended September 30,
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||||||||
2015
|
2014
|
|||||||
Cash Flows From Operating Activities:
|
||||||||
Net loss
|
$
|
(24,354
|
)
|
$
|
(9,641
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
2,347
|
1,371
|
||||||
Stock-based compensation
|
1,483
|
447
|
||||||
Impairment of long-lived assets
|
920
|
-
|
||||||
Inventory write-offs
|
4,818
|
1,076
|
||||||
Amortization of debt discount
|
7,571
|
385
|
||||||
Amortization of deferred financing costs
|
373
|
38
|
||||||
Change in fair value of warrant liability
|
679
|
(7,151
|
)
|
|||||
Other
|
20
|
1
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Current assets
|
(1,016
|
)
|
(966
|
)
|
||||
Current liabilities
|
114
|
(212
|
)
|
|||||
Net cash used in operating activities
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(7,045
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)
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(14,668
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)
|
||||
Cash Flows From Investing Activities:
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||||||||
Lasers placed-in-service, net
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(1,066
|
)
|
-
|
|||||
Acquisition costs, net of cash received
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(42,500
|
)
|
-
|
|||||
Other
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(17
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)
|
17
|
|||||
Net cash (used in) provided by investing activities
|
(43,583
|
)
|
17
|
|||||
Cash Flows From Financing Activities:
|
||||||||
Proceeds from convertible debentures
|
32,500
|
15,000
|
||||||
Proceeds from senior notes
|
10,000
|
-
|
||||||
Proceeds from credit facilities
|
-
|
11,452
|
||||||
Other financing activities
|
(154
|
)
|
(1,123
|
)
|
||||
Net cash provided by financing activities
|
42,346
|
25,335
|
||||||
Effect of exchange rate changes on cash
|
17
|
-
|
||||||
Net (decrease)/increase in cash and cash equivalents
|
(8,265
|
)
|
10,684
|
|||||
Cash and cash equivalents, beginning of period
|
11,434
|
3,783
|
||||||
Cash and cash equivalents, end of period
|
$
|
3,169
|
$
|
14,467
|
||||
Supplemental information:
|
||||||||
Cash paid for interest
|
$
|
402
|
$
|
-
|
||||
Supplemental information of non-cash investing and financing activities
|
||||||||
Conversion of senior secured convertible debentures into common stock
|
$
|
4,593
|
$
|
-
|
||||
Establishment of a warrant liability with a deemed dividend
|
$
|
2,962
|
$
|
-
|
||||
Exchange of series A convertible preferred stock for series B convertible preferred stock
|
$
|
-
|
$
|
12,300
|
||||
Reclassification of property and equipment to inventory, net
|
$
|
107
|
$
|
-
|
||||
Reclassification of warrant liability (from) to stockholders' equity
|
$
|
(5,399
|
)
|
$
|
652
|