10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 10 – Q/A

(Amendment No.1)

ý          QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2018

OR

☐          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to ___________

Commission File Number 0-51481

STRATA SKIN SCIENCES, INC.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization) 13-3986004 (I.R.S.  Employer Identification No.)

100 Lakeside Drive, Suite 100, Horsham, Pennsylvania 19044

(Address of principal executive offices, including zip code)

(215) 619-3200

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant: (i) 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 (ii) has been subject to such filing requirements for the past 90 days.

Yes ý  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 during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ý  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 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 ý
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 ý

The number of shares outstanding of the issuer's common stock as of November 13, 2018 was 29,943,086 shares.

Explanatory Note

This Amendment No. 1 to the Quarterly Report on Form 10-Q of STRATA Skin Sciences, Inc. (the "Company") for the quarter ended September 30, 2018, originally filed on November 14, 2018 (the "Original Filing"), is being filed solely to include the XBRL documents as Exhibit 101, which were inadvertently omitted from the Original Filing as originally filed due to technical difficulties.

Pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, as amended, this Form 10-Q/A also contains new certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, which are attached hereto.

Except as described above, no other changes have been made to the Original Filing, and this Form 10-Q/A does not modify, amend or update in any way any of the financial or other information contained in the Original Filing. This Form 10-Q/A does not reflect events that may have occurred subsequent to the filing date of the Original Filing.

2

EXHIBIT INDEX

The following is a list of all exhibits filed as a part of this Quarterly Report on Form 10-Q/A.

31.1	Rule 13a-14(a) Certificate of Chief Executive Officer
31.2	Rule 13a-14(a) Certificate of Chief Financial Officer
32.1*	Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Schema
101.CAL	XBRL Taxonomy Calculation Linkbase
101.DEF	XBRL Taxonomy Definition Linkbase
101.LAB	XBRL Taxonomy Label Linkbase
101.PRE	XBRL Taxonomy Presentation Linkbase

* The certifications attached as Exhibit 32.1 accompany this Quarterly Report on Form 10-Q/A pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed "filed" by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 STRATA SKIN SCIENCES, INC.

Date   November 14, 2018	By:	/s/ Dolev Rafaeli
		Name  Dolev Rafaeli
		Title    President & Chief Executive Officer

Date   November 14, 2018	By:	/s/ Matthew C. Hill
		Name  Matthew C. Hill
		Title    Chief Financial Officer

3

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Dolev Rafaeli, certify that:

(1) I have reviewed this quarterly report on Form 10-Q/A of STRATA Skin Sciences, Inc.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

(5) The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 14, 2018	By:	/s/ Dolev Rafaeli
		Name:  Dolev Rafaeli
		Title: Chief Executive Officer

E-31.1

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Matthew C. Hill, certify that:

(1) I have reviewed this quarterly report on Form 10-Q/A of STRATA Skin Sciences, Inc.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

(5) The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: November 14, 2018	By:	/s/ Matthew C. Hill
		Matthew C. Hill
		Chief Financial Officer

E-31.2

EX-32.1

EXHIBIT 32.1

SECTION 906 CERTIFICATION

CERTIFICATION (1)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350, as adopted), Dolev Rafaeli, the Chief Executive Officer of STRATA Skin Sciences, Inc. (the "Company"), and Matthew C. Hill, the Chief Financial Officer of the Company, each hereby certifies that, to the best of their knowledge:

1. The Company's Quarterly Report on Form 10-Q/A for the quarter ended September 30, 2018, to which this Certification is attached as Exhibit 32.1 (the "Periodic Report"), fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended, and

2. The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 14, 2018

/s/ Dolev Rafaeli                                

Name:  Dolev Rafaeli

Title: Chief Executive Officer

/s/ Matthew C. Hill                           

Name:  Matthew C. Hill

Title: Chief Financial Officer

(1) This certification accompanies the Quarterly Report on Form 10-Q/A to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of STRATA Skin Sciences, Inc. under the Securities Act of 1933, as amended, or the Exchange Act (whether made before or after the date of the Form 10-Q/A), irrespective of any general incorporation language contained in such filing. A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to STRATA Skin Sciences, Inc. and will be retained by STRATA Skin Sciences, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

E-32.1

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 13, 2018
Document And Entity Information
Entity Registrant Name	STRATA Skin Sciences, Inc.
Entity Central Index Key	0001051514
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		29,943,086
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 15,888	$ 4,069
Accounts receivable, net of allowance for doubtful accounts of $176 and $172, respectively	2,728	3,141
Inventories	2,488	3,009
Prepaid expenses and other current assets	670	533
Total current assets	21,774	10,752
Property and equipment, net	5,698	7,703
Intangible assets, net	9,867	11,325
Goodwill	8,803	8,803
Other assets	48	48
Total assets	46,190	38,631
Current liabilities:
Note payable	0	357
Current portion of long-term debt	0	2,387
Accounts payable	1,663	2,277
Other accrued liabilities	2,697	2,360
Warrant liability	104	0
Deferred revenues	327	291
Total current liabilities	4,791	7,672
Long-term liabilities:
Long-term debt, net	7,362	7,853
Deferred tax liability	392	414
Warrant liability	0	3
Other liabilities	268	444
Total liabilities	12,813	16,386
Commitments and contingencies (Note 16)
Stockholders' equity:
Common Stock, $.001 par value, 150,000,000 shares authorized; 29,943,086 and 4,304,425 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	30	4
Additional paid-in capital	266,854	251,643
Accumulated deficit	(233,508)	(229,406)
Total stockholders' equity	33,377	22,245
Total liabilities and stockholders' equity	46,190	38,631
Series C Convertible Preferred Stock [Member]
Stockholders' equity:
Series C Convertible Preferred Stock, $.10 par value, 10,000,000 shares authorized; 9,968 and 36,182 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	$ 1	$ 4

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Allowance for doubtful accounts	$ 176	$ 172
Stockholders' equity:
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	29,943,086	4,304,425
Common stock, shares outstanding (in shares)	29,943,086	4,304,425
Series C Convertible Preferred Stock [Member]
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.10	$ 0.10
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	9,968	36,182
Preferred stock, shares outstanding (in shares)	9,968	36,182

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract]
Revenues (Note 3)	$ 7,892	$ 7,285	$ 21,892	$ 22,852
Cost of revenues	3,049	3,276	9,842	9,182
Gross profit	4,843	4,009	12,050	13,670
Operating expenses:
Engineering and product development	224	411	831	1,309
Selling and marketing	2,487	2,492	7,737	8,312
General and administrative	2,184	1,678	6,319	4,999
Total operating expenses	4,895	4,581	14,887	14,620
Operating loss before other expense, net	(52)	(572)	(2,837)	(950)
Other income (expense), net:
Interest expense, net	(239)	(1,343)	(930)	(4,264)
Change in fair value of warrant liability	(79)	81	(101)	77
Other income, net			0	6
Loss on extinguishment of debentures	0	(11,799)	0	(11,799)
Other income (expense), net	(318)	(13,061)	(1,031)	(15,980)
Loss before income taxes	(370)	(13,633)	(3,868)	(16,930)
Income tax benefit (expense)	80	(38)	0	(181)
Net loss	(290)	(13,671)	(3,868)	(17,111)
Common Stock [Member]
Net loss	$ (257)	$ (8,235)	$ (2,493)	$ (13,835)
Net loss per share - basic and diluted (in dollars per share)	$ (0.01)	$ (3.32)	$ (0.15)	$ (5.94)
Shares used in computing net loss per basic and diluted (in shares)	29,912,827	2,477,743	16,099,752	2,328,274
Series C Preferred Stock [Member]
Net loss	$ (33)	$ (5,436)	$ (1,375)	$ (3,276)
Net loss per share - basic and diluted (in dollars per share)	$ (3.23)	$ (1,235.43)	$ (57.58)	$ (2,208.96)
Shares used in computing net loss per basic and diluted (in shares)	10,049	4,400	23,872	1,483

XML

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands	Preferred Stock [Member] Series C Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Deficit [Member] Effect of Adoption Higher / (Lower) [Member]	Total	Series C Convertible Preferred Stock [Member]
Beginning balance at Dec. 31, 2017	$ 4	$ 4	$ 251,643	$ (229,406)		$ 22,245
Beginning balance (ASU 2014-09 [Member]) at Dec. 31, 2017	$ 4	$ 4	251,643	(229,640)		22,011
Beginning balance (in shares) at Dec. 31, 2017	36,182	4,304,425
Beginning balance (in shares) (ASU 2014-09 [Member]) at Dec. 31, 2017	36,182	4,304,425
Adoption of accounting standard (ASU 2014-09 [Member]) at Dec. 31, 2017	$ 0	$ 0	0		$ (234)	(234)
Stock-based compensation	0	0	570	0		570
Conversion of convertible preferred stock into common stock	$ (3)	$ 10	(7)	0		0
Conversion of convertible preferred stock into common stock (in shares)	(26,214)	9,744,916
Sale of common stock, net of expenses	$ 0	$ 16	14,648	0		14,664
Sale of common stock, net of expenses (in shares)	0	15,893,745
Net loss	$ 0	$ 0	0	(3,868)		(3,868)	$ (1,375)
Ending balance at Sep. 30, 2018	$ 1	$ 30	$ 266,854	$ (233,508)		$ 33,377
Ending balance (in shares) at Sep. 30, 2018	9,968	29,943,086

XML

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) (Parenthetical) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) [Abstract]
Sale of common stock, expenses	$ 2,336

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flows From Operating Activities:
Net loss	$ (3,868)	$ (17,111)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	3,993	4,811
Provision for doubtful accounts	53	58
Loss on disposal of property and equipment	503	0
Gain on cancelation of distributor rights agreement	0	(40)
Net impairment of intangible asset and liability	(11)	23
Stock-based compensation	570	136
Deferred tax provision	(22)	180
Amortization of debt discount	44	2,344
Amortization of deferred financing costs	79	171
Loss on extinguishment of debt	0	11,799
Change in fair value of warrant liability	101	(77)
Changes in operating assets and liabilities:
Accounts receivable	361	130
Inventories	521	(716)
Prepaid expenses and other assets	(137)	406
Accounts payable	(614)	71
Other accrued liabilities	423	(162)
Other liabilities	(3)	108
Deferred revenues	(198)	115
Net cash provided by operating activities	1,795	2,246
Cash Flows From Investing Activities:
Lasers placed-in-service	(1,254)	(1,450)
Purchases of property and equipment, net	(6)	(321)
Payments on distributor rights liability	(23)	(115)
Net cash used in investing activities	(1,283)	(1,886)
Cash Flows From Financing Activities:
Proceeds from issuance of common stock	14,664	0
Repayments of long-term debt	(3,000)	(857)
Payments on notes payable	(357)	(304)
Net cash provided by (used in) financing activities	11,307	(1,161)
Net increase (decrease) in cash and cash equivalents	11,819	(801)
Cash and cash equivalents, beginning of period	4,069	3,928
Cash and cash equivalents, end of period	15,888	3,127
Supplemental information:
Cash paid for interest	808	1,934
Supplemental information of non-cash investing and financing activities:
Conversion of senior secured convertible debentures into common stock	0	262
Acquisition of distributor rights asset and license liability	0	286
Issuance of convertible preferred stock in exchange for convertible debentures	$ 0	$ 25,910

XML

The Company

9 Months Ended

Sep. 30, 2018

The Company [Abstract]

The Company

Note 1
The Company:

Background

STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions. Its products include the XTRAC® excimer laser and VTRAC® lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions; and the STRATAPEN® MicroSystem, marketed specifically for the intended use of micropigmentation.

The XTRAC is an ultraviolet light excimer laser system utilized to treat psoriasis, vitiligo and other skin diseases. The XTRAC received clearance from the United States Food and Drug Administration (the "FDA") in 2000. As of September 30, 2018, there were 746 XTRAC systems placed in dermatologists' offices in the United States under the Company's recurring revenue business model. The XTRAC systems deployed under the recurring revenue model generate revenue on a per procedure basis or include a fixed payment over an agreed upon period with a capped number of treatments, which if exceeded would incur additional fees. The per-procedure charge is inclusive of the use of the system and the services provided by the Company to the customer which includes system maintenance, and other services. The VTRAC Excimer Lamp system, offered in addition to the XTRAC system internationally, provides targeted therapeutic efficacy demonstrated by excimer technology with a lamp system.

During 2017, the Company entered into an agreement to license the Nordlys product line from Ellipse A/S. In 2018, the Company determined we would no longer market the line. In June, following the financing, the Company wrote down all inventory and fixed assets related to the product line to the net realizable value and recorded an expense of $280 in cost of revenues.

Effective February 1, 2017, the Company entered into an exclusive OEM distribution agreement with Esthetic Education, LLC to be the exclusive marketer and seller of private label versions of the SkinStylus MicroSystem and associated parts under the name of STRATAPEN. This three-year agreement allows for two one-year extensions.

Basis of Presentation:

Accounting Principles

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary in India. All significant intercompany balances and transactions have been eliminated in consolidation. In 2018, there are no operations in the subsidiary in India.

Unaudited Interim Condensed Consolidated Financial Statements

The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC") for interim financial reporting. These consolidated statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to state fairly the condensed consolidated balance sheets, condensed consolidated statements of operations condensed consolidated statements of cash flows and consolidated statement of changes in equity, for the periods presented in accordance with GAAP. The consolidated balance sheet at December 31, 2017 has been derived from the audited consolidated financial statements at that date. Operating results and cash flows for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018, or any  other future period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations for interim reporting of the SEC. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017, and other forms filed with the SEC from time to time.

Reclassifications

Certain reclassifications from the prior year presentation have been made to conform to the current year presentation. These reclassifications did not have a material impact on the Company's equity, results of operations or cash flows.

The Company records co-pay reimbursements made to patients receiving laser treatments as a reduction of revenue. For the three and nine months ended September 30, 2017, the Company reclassified such reimbursements in the amount of $195 and $602, respectively, from selling and marketing expenses to reduction in revenues. The Company has determined that this reclassifcation is not material to the condensed consolidated financial statements for the three and nine months ended September 30, 2017.

Significant Accounting Policies

The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed in our 2017 Form 10-K, and there have been no changes to the Company's significant account policies during the three and nine months ended September 30, 2018, except for the adoption of the new revenue recognition standard as discussed under Adoption of New Accounting Standards later within this Note 1.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates and be based on events different from those assumptions. As of September 30, 2018, the most significant estimates include (1) revenue recognition, (2) allowance for doubtful accounts of accounts receivable, (3) the estimated useful lives of intangible assets and property and equipment, (4) the inputs used in determining the fair value of equity-based awards, (5) the valuation allowance related to deferred tax assets and (6) the fair value of financial instruments, including derivative instruments.

Fair Value Measurements

The Company measures and discloses fair value in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification 820, Fair Value Measurements and Disclosures ("ASC Topic 820"). ASC Topic 820 defines fair value, establishes a framework and gives guidance regarding the methods used for measuring fair value, and expands disclosures about fair value measurements. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions there exists a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

• Level 1 – unadjusted quoted prices are available in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date.

• Level 2 – pricing inputs are other than quoted prices in active markets that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.

• Level 3 – pricing inputs are unobservable for the non-financial asset or liability and only used when there is little, if any, market activity for the non-financial asset or liability at the measurement date. The inputs into the determination of fair value require significant management judgment or estimation. Fair value is determined using comparable market transactions and other valuation methodologies, adjusted as appropriate for liquidity, credit, market and/or other risk factors.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.

The fair value of cash and cash equivalents are based on their respective demand value, which are equal to the carrying value. The fair value of derivative warrant liabilities is estimated using option pricing models that are based on the fair value of the Company's common stock as well as assumptions for volatility, remaining expected life, and the risk-free interest rate. The derivative warrant liabilities are the only recurring Level 3 fair value measures and the only asset or liability that is measured at fair value on a recurring basis. The carrying value of all other short-term monetary assets and liabilities is estimated to be approximate to their fair value due to the short-term nature of these instruments. As of September 30, 2018, and December 31, 2017, the Company assessed its long-term debt (including the current portion) and determined that the fair value of total debt approximated its book value due to the market rate on the debt.

Several of the warrants outstanding as of September 30, 2018 and 2017 have non-standard terms as they relate to a fundamental transaction and require a net-cash settlement upon change in control of the Company. All such warrants are classified as derivatives and are the Company's only recurring fair value measurement. These warrants have been recorded at their fair value using a Black Scholes option pricing model and continue to be recorded at their respective fair value at each subsequent balance sheet date until such terms expire. See Note 10, Warrants, for additional discussion. 

Recurring level 3 Activity and Recalculation

The table below provides a reconciliation of the beginning and ending balance for the liability measured at fair value using significant unobservable inputs (Level 3).

Issuance Date	December 31, 2017		Increase in Fair Value		September 30, 2018
10/31/2013		2		51		53
2/5/2014		1		50		51
	$	3	$	101	$	104

Issuance Date	December 31, 2016		Decrease in Fair Value			December 31, 2017
10/31/2013		39		(37	)		2
2/5/2014		66		(65	)		1
	$	105	$	(102	)	$	3

Earnings Per Share

The Company calculates net loss per share in accordance with ASC 260, Earnings per Share. Under ASC 260, basic net loss per common share is calculated by dividing net income by the weighted-average number of common shares outstanding during the reporting period and excludes dilution for potentially dilutive securities. Diluted earnings per share gives effect to dilutive options, warrants and other potential common shares outstanding during the period.

The Company's Series C Preferred Shares are subordinate to all other securities at the same subordination level as common stock and they participate in all dividends and distributions declared or paid with respect to common stock of the Company, on an as-converted basis. Therefore, the Series C Preferred Shares meet the definition of common stock under ASC 260. Earnings per share is presented for each class of security meeting the definition of common stock. The net loss is allocated to each class of security meeting the definition of common stock based on their contractual terms.

The following table presents the calculation of basic and diluted net loss per share by each class of security for the three and nine months ended September 30, 2018:

	Three Months Ended September 30, 2018						Nine Months Ended September 30, 2018
	Common Stock			Series C Preferred Stock			Common Stock			Series C Preferred Stock
Net loss	$	(257	)	$	(33	)	$	(2,493	)	$	(1,375	)
Weighted average number of shares outstanding during the period		29,912,827			10,049			16,099,752			23,872
Basic and Diluted net loss per share	$	(0.01	)	$	(3.23	)	$	(0.15	)	$	(57.58	)

The following table presents the calculation of basic and diluted net loss per share by each class of security for the three and nine months ended September 30, 2017:

	For the Three Months Ended September 30, 2017						For the Nine Months Ended September 30, 2017
	Common stock			Series C Preferred stock			Common stock			Series C Preferred stock
Net loss	$	(8,235	)	$	(5,436	)	$	(13,835	)	$	(3,276	)
Weighted average number of shares outstanding during the period		2,477,743			4,400			2,328,274			1,483
Basic and Diluted net loss per share	$	(3.32	)	$	(1,235.43	)	$	(5.94	)	$	(2,208.96	)

For the three and nine months ended September 30, 2018 and 2017, diluted net loss per common share and Series C Preferred share is equal to the basic net loss per common share and Series C Preferred share, respectively, since all potentially dilutive securities are antidilutive.

The weighted average of potential common stock equivalents outstanding during the nine months ended September 30, 2018 and 2017 consist of common stock equivalents of senior secured convertible debentures, common stock purchase warrants, convertible preferred stock, restricted stock units and common stock options, which are summarized as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2018	2017	2018		2017
Common stock equivalents of convertible debentures	-	7,546,299		-	8,191,777
Common stock purchase warrants	2,392,760	2,406,625	2,398,651		2,406,625
Common stock equivalents of convertible Preferred B stock	-	228,336	-		343,261
Common stock equivalents of convertible Preferred C stock	3,777,033	-	8,874,092		-
Restricted stock units	140,097	-	58,717		-
Common stock options	4,371,764	855,389	2,786,400		873,554
Total	10,681,654	11,036,649	14,117,860		11,815,217

Adoption of New Accounting Standards

Effective January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) using the modified retrospective method with a cumulative adjustment that increased its accumulated deficit and deferred revenue by approximately $234 as of January 1, 2018. The cumulative adjustment was related to the promise to provide service type contracts related to sales of dermatology procedures equipment for all outstanding contracts, outstanding as of January 1, 2018. A portion of the transaction price of equipment sold with these service type warranties is allocated to such warranties based on their stand-alone selling price, and the Company now recognizes revenue from these service type warranties ratably over the warranty term. The method used to estimate stand-alone selling price is the price observed in transactions where the customer is charged a discrete price for the extended warranty.

Other than the above change related to warranties, the adoption of this standard did not have a material impact on the Company's results of operations for the three and nine months ended September 30, 2018. The impact from adopting this standard on the Company's statement of operations for the three and nine months ended September 30, 2018 is as follows:

	For the Three Months Ended September 30, 2018
Statement of Operations	As Reported		Balances Without Adoption of ASC 606		Effect of Adoption Higher / (Lower)
Revenues	$	7,892	$	7,946	$	(54	)

	For the Nine Months Ended September 30, 2018
Statement of Operations	As Reported		Balances Without Adoption of ASC 606		Effect of Adoption Higher / (Lower)
Revenues	$	21,892	$	22,006	$	(114	)

See Note 3 for additional information.

Recently Issued Accounting Standards

In July 2017, the FASB issued a two-part ASU 2017-11, "(Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-Controlling Interests with a Scope Exception." For public business entities, the amendments in Part 1 of ASU 2017-11 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. The amendments in Part 2 of ASU 2017-11 do not require any transition guidance because those amendments do not have an accounting effect. The Company is currently evaluating the impact of this guidance on the Company's condensed consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new guidance eliminated Step 2 from the goodwill impairment test which was required in computing the implied fair value of goodwill. Instead, under the new amendments, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. If applicable, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The amendments in this guidance are effective for public business entities for annual and interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019 with early adoption permitted after January 1, 2017. As the Company has not identified a goodwill impairment loss, currently this guidance does not have an impact on the Company's condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02: Leases (Topic 842, as amended). The guidance introduces a lessee model that results in most leases impacting the balance sheet. Under ASU 2016-02, lessees will be required to recognize, for all leases with terms longer than 12 months, at the commencement date of the lease, a lease liability, which is a lessee's obligation to make lease payments arising from a lease measured on a discounted basis, and a right-to-use asset, which is an asset that represents the lessee's right to use or control the use of a specified asset for the lease term. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. Also, the new standard aligns many of the underlying principles of the new lessor model with those in ASC 606, the FASB's new revenue recognition model. The update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While we continue to evaluate the effect of adopting this guidance on our condensed consolidated financial statements and related disclosures, including the use of optional practical expedients, we expect our operating leases will be subject to the new standard. We will recognize right-of-use assets and operating lease liabilities on our consolidated balance sheets upon adoption, which will increase our total assets and liabilities. Regarding the Company's revenue from short-term leases, we do not expect the new standard to have a material impact on our condensed consolidated financial statements.

In June 2018, the FASB issued ASU No. 2018-07, "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," with the objective of simplifying several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The provisions of this update are effective for fiscal years beginning after December 15, 2018. Although we are evaluating the impact of adopting ASU No. 2018-07 on our financial position, results of operations and cash flows, we currently do not expect a material effect upon adoption because we do not have any nonemployee share-based payment transactions.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The new guidance improves and clarifies the fair value measurement disclosure requirement of ASC 820. The new disclosure requirements include the changes in unrealized gains or losses included in other comprehensive income for recurring Level 3 fair value measurement held at the end of reporting period and the explicit requirement to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The other provisions of ASU 2018-13 also include eliminated and modified disclosure requirements. The guidance is effective for fiscal years beginning after December 15, 2019 with early adoption permitted, including in an interim period for which financial statements have not been issued or made available for issuance. The Company has evaluated the impact of early adoption of this ASU and determined that it will have no significant impact on its condensed consolidated financial statements.

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Equity Financing and Liquidity

9 Months Ended

Sep. 30, 2018

Equity Financing and Liquidity [Abstract]

Equity Financing and Liquidity

Note 2

Equity Financing and Liquidity

Equity Financing

On March 30, 2018, the Company entered into multiple agreements in order to obtain $17,000 of equity financing (the "Financing") from the following sources:

☐ On March 30, 2018 the Company entered into a Stock Purchase Agreement (the "Accelmed SPA") and a Registration Rights Agreement with Accelmed Growth Partners L.P. ("Accelmed") investing $13,000 into the Company at a price per share of $1.08; upon closing Accelmed received 12,037,037 shares of its common stock.

☐ In connection with the Accelmed investment, the Company entered into two separate stock purchase agreements, each for approximately $1,000 with its then current shareholders, Broadfin Capital ("Broadfin") and Sabby Management ("Sabby"). Upon closing of these transactions, each of Sabby and Broadfin received 925,926 shares of the Company's common stock at a price per share of $1.08.

☐ Two separate subscription agreements were also executed on in connection with the Accelmed investment: (i) a subscription agreement with Gohan Investments, Ltd. for $1,000 to purchase 925,926 shares of the Company's common stock at $1.08 per share; and (ii) a subscription agreement with Dr. Dolev Rafaeli, the new CEO of the Company effective May 29, 2018, for $1,000 to purchase 925,926 shares of the Company's common stock at $1.08 per share.

The Company incurred $2,336 of costs related to the equity financing during the nine months ended September 30, 2018, which have been offset against the proceeds in the accompanying financial statements. These costs included reimbursing Accelmed $500 for legal fees, consulting, due diligence and administrative costs related to the stock purchase agreement. In addition, the Company incurred placement agent fees in the amount of $1,359, among other costs directly related to the financing.

In further consideration of entering into their respective stock purchase agreements, Sabby and Broadfin have each entered into separate agreements restricting their abilities to sell their holdings (the "Leak-Out Agreements"). Under the terms of each of the respective Leak-Out Agreements, the stockholder has agreed that from the later of (a) the date that the approval by the shareholders of the transactions is deemed effective and (b) the closing of the transactions contemplated pursuant to the SPA, the stockholder shall not sell dispose or otherwise transfer, directly or indirectly, (including, without limitation, any sales, short sales, swaps or any derivative transactions that would be equivalent to any sales or short positions) any shares of Common Stock of the Company held by the Stockholder on the date hereof or issuable to the Stockholder upon conversion of shares of the Company's Preferred Stock held by the Stockholder on the date hereof, (a) if prior to April 1, 2019, at a price per Company Share less than $1.296, subject to adjustment for reverse and forward stock splits and the like, or (b) thereafter, at a price per share reflecting less than the price set forth on the schedule in the Leak-Out Agreements subject to adjustment for reverse and forward stock splits and the like, unless, (1) in the case of either clauses (a) or (b), otherwise approved by the Company's Board of Directors, (2) in the case of clause (b), under a shelf prospectus or such other controlled offering as may be agreed to by the Principal Stockholders (as defined in the Stock Purchase Agreement) or (3) in the case of either clauses (a) or (b), in a sale pursuant to which any other stockholder(s) of the Company are offered the same terms of sale, including in a merger, consolidation, transfer or conversion involving the Company or any of its subsidiaries.

In addition, Sabby and Broadfin delivered to the Company a voting undertaking obligating Sabby and Broadfin to increase their respective "blocker" to 9.99% prior to the record date for the meeting of the shareholders.

On May 23, 2018 the Company held a special meeting of stockholders where the stockholders approved pursuant to Nasdaq Listing Rules 5635(b) and (d), the issuance of an aggregate of 15,740,741 shares of the Company's common stock pursuant to the Financing plus all additional shares that may be issued pursuant to the Retained Risk Provisions, as defined in the purchase agreements.

The investors in the Financing may receive additional shares, in the event of certain contingencies, as described in the Stock Purchase Agreements. At the closing, the Company determined certain contingencies had been met and in July 2018 the Company issued 153,004 shares associated with those contingencies. There are additional contingencies included in the SPA's that the Company has determined are not probable or estimable at this time.

In connection with the Agreements, we entered into a Registration Rights Agreement (the "Registration Rights Agreement") with the Investors to prepare and file with the SEC a registration statement covering the shares of common stock issued in the Financing. The Company filed a registration statement on Form S-3 which became effective on September 24, 2018.

Liquidity

We have experienced recurring operating losses and prior to 2017 negative cash flow from operations. Historically, we have been dependent on raising capital from the sale of securities in order to continue to operate and to meet our obligations in the ordinary course of business. We believe that our cash as of September 30, 2018, combined with the anticipated revenues from the rental or sale of our products and the investment discussed above, will be sufficient to satisfy our working capital needs, capital asset purchases, outstanding commitments and other liquidity requirements associated with our existing operations through the next 12 months following the filing of this Form 10-Q. In the Company's debt modification with MidCap, MidCap reduced the restrictive covenants. However, if we fail to meet the monthly revenue covenants per the MidCap loan agreement, we may be declared in breach of the credit facility agreement and MidCap will have the option to call the loan balance, for which the Company currently has sufficient funds to repay.

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Revenue

9 Months Ended

Sep. 30, 2018

Revenue [Abstract]

Revenue

Note 3

Revenue:

In the Dermatology Recurring Procedures Segment the Company has two types of arrangements for its phototherapy treatment equipment as follows: (i) the Company places its lasers in a physician's office at no charge to the physician, and generally charges the physician a fee for an agreed upon number of treatments; or (ii) the Company places its lasers in a physician's office and charges the physician a fixed fee for a specified period of time not to exceed an agreed upon number of treatments; if number is exceeded additional fees will have to be paid.

For the purposes of U.S. GAAP only, these two types of arrangements are treated as short term operating leases, and thus are outside the scope of ASC 606 and are accounted for in accordance with ASC 840, Leases. While these are not operating leases contractually, these are viewed as operating leases for accounting purposes since in these arrangements the Company provides the customers the rights to use the treatment equipment and the customers control physical access to the treatment equipment while controlling the utility and output of such equipment during the term of the arrangement. For the first type of arrangement, fees are recognized as revenue over the contract term, which equates to the usage period of the agreed upon number of treatments, as the treatments are being used. For the second type of arrangement fees are recognized as revenue ratably on a straight-line basis over the term period specified in the agreement. Contingent amounts that are due only if the customer exceeds the agreed upon number of treatments are recognized as revenue only once such treatments are exceeded and used. Prepaid amounts under the agreements are recorded in deferred revenue and recognized as revenue over the lease term in the patterns described above. Under both methods pricing is fixed with the customers.

The fee charged is inclusive of the use of the system and the services provided by the Company to the customer, which include system maintenance, and other services. The Company considers the other service and support elements in the contract to be perfunctory and inconsequential.

In the Dermatology Procedures Equipment segment the Company sells its products internationally through a distributor, and domestically directly to a physician. For the product sales, the Company fulfills its performance obligations and recognizes revenues when control of the promised products is transferred to the Company's customers. To indicate the transfer of control, the Company must have a present right to payment and legal title must have passed to the customer. The Company ships most of its products FOB shipping point, and as such, the Company primarily transfers control and records revenue upon shipment. From time to time the Company will grant certain customers, for example governmental customers, FOB destination terms, and the transfer of control for revenue recognition occurs upon receipt.

Remaining performance obligations related to ASC 606 represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period. Remaining performance obligations include the potential obligation to perform under extended warranties, but excludes any equipment accounted for as leases. As of September 30, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $313, and the Company expects to recognize $137 of the remaining performance obligations over the subsequent twelve months and the remainder thereafter. Contract assets primarily relate to the Company's rights to consideration for work completed in relation to its services performed but not billed at the reporting date. The contract assets are transferred to receivables when the rights become unconditional. Currently, the Company does not have any contract assets which have not transferred to a receivable. Contract liabilities primarily relate to extended warranties where we have received payments, but we have not yet satisfied the related performance obligations. The advance consideration received from customers for the services is a contract liability until services are provided to the customer.

The $82 of short-term contract liabilities is presented as deferred revenues on the September 30, 2018 Condensed Consolidated Balance Sheet, and the $231 of long-term contract liabilities is presented within Other Liabilities. For the three and nine months ended September 30, 2018, $14 and $35, respectively, was recognized as revenue from amounts classified as contract liabilities (i.e. deferred revenues) as of January 1, 2018.

With respect to contract acquisition costs, as the agreements with customers can be cancelled by either party with a 60-day notice, the Company applied the practical expedient and expenses these costs immediately.  This practical expedient is applied for all contracts.

The following table presents the Company's revenue disaggregated by geographical region for the three and nine months ended September 30, 2018. The revenue for the three and nine months ended September 30, 2017 have not been adjusted for the adoption of ASC 606. Domestic refers to revenue from customers based in the United States, and substantially all foreign revenue is derived from dermatology procedures equipment sales to the Company's international master distributor for physicians based primarily in Asia.

	Three Months Ended September 30, 2018
	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Domestic	$	5,556	$	366	$	5,922
Foreign		-	$	1,970		1,970
Total	$	5,556	$	2,366	$	7,892

	Nine Months Ended September 30, 2018
	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Domestic	$	15,221	$	1,337	$	16,558
Foreign		-	$	5,334		5,334
Total	$	15,221	$	6,671	$	21,892

	Three Months Ended September 30, 2017
	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Domestic	$	5,525	$	617	$	6,142
Foreign		-	$	1,143		1,143
Total	$	5,525	$	1,760	$	7,285

	Nine Months Ended September 30, 2017
	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Domestic	$	17,051	$	1,959	$	19,010
Foreign		-	$	3,842		3,842
Total	$	17,051	$	5,801	$	22,852

The comparability of the periods presented are impacted by the sales of the terminated Nordlys product line. Our overall sales for the three months ended September 30, 2018 and 2017, excluding Nordlys, were $7,835 and $7,165, respectively, and $21,558 and $22,343 for the nine months ended September 30, 2018 and 2017, respectively.

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Inventories

9 Months Ended

Sep. 30, 2018

Inventories [Abstract]

Inventories

Note 4

Inventories:

	September 30, 2018		December 31, 2017
Raw materials and work in progress	$	2,391	$	2,490
Finished goods		97		519
Total inventories	$	2,488	$	3,009

Work-in-process is immaterial, given the Company's typically short manufacturing cycle, and therefore is disclosed in conjunction with raw materials.

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Property and Equipment, net

9 Months Ended

Sep. 30, 2018

Property and Equipment, net [Abstract]

Property and Equipment, net

Note 5

Property and Equipment, net:

	September 30, 2018			December 31, 2017
Lasers placed-in-service	$	18,352		$	17,820
Equipment, computer hardware and software		185			462
Furniture and fixtures		130			124
Leasehold improvements		31			31
		18,698			18,437
Accumulated depreciation and amortization		(13,000	)		(10,734	)
Property and equipment, net	$	5,698		$	7,703

Depreciation and related amortization expense was $850 and $1,097 for the three months ended September 30, 2018 and 2017, respectively; and $2,762 and $3,292 for the nine months ended September 30, 2018 and 2017, respectively. XTRAC lasers placed in service are depreciated on a straight-line basis over the estimated useful life of five-years. For other property and equipment depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, primarily three to seven years for computer hardware and software, furniture and fixtures, automobiles and machinery and equipment. Leasehold improvements are amortized over the lesser of the useful lives or lease terms. Useful lives are determined based upon an estimate of either physical or economic obsolescence, or both.

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Intangible Assets, net

9 Months Ended

Sep. 30, 2018

Intangible Assets, net [Abstract]

Intangible Assets, net

Note 6

Intangible Assets, net:

Set forth below is a detailed listing of definite-lived intangible assets as of September 30, 2018:

	Balance		Accumulated Amortization			Intangible Assets, net
Core technology	$	5,700	$	(1,853	)	$	3,847
Product technology		1,500		(1,150	)		350
Customer relationships		6,900		(2,243	)		4,657
Tradenames		1,500		(487	)		1,013
	$	15,600	$	(5,733	)	$	9,867

Set forth below is a detailed listing of definite-lived intangible assets as of December 30, 2017:

	Balance		Accumulated Amortization			Intangible Assets, net
Core technology		5,700		(1,425	)		4,275
Product technology		1,500		(1,000	)		500
Customer relationships		6,900		(1,725	)		5,175
Tradenames		1,500		(375	)		1,125
Distribution rights		286		(36	)		250
	$	15,886	$	(4,561	)	$	11,325

Related amortization expense was $402 and $505 for the three months ended September 30, 2018 and 2017, respectively and $1,231 and $1,519 for the nine months ended September 30, 2018 and 2017, respectively. During the three and nine months ended September 30, 2017, the Company wrote off core technology of $274 and accumulated amortization of $251 related to the discontinuance of the MelaFind product. The value written off of $23 was recorded in cost of revenues.

Intangible assets consist of core technology, product technology, customer relationships, trademark and distribution rights. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from three to ten years.

During the first quarter of 2018, the Company wrote off distribution rights of $286 and accumulated amortization of $60 related to the discontinuance of the Nordlys product. The net value written off of $226 was recorded in selling and marketing expense. The Company wrote off distribution liabilities of $237 as a result of the termination of the agreement on May 31, 2018. The net value written off of $11 was recorded in selling and marketing expense. (See Note 1)

Estimated amortization expense for the above amortizable intangible assets for future periods is as follows:

Remaining 2018	$	402
2019		1,610
2020		1,510
2021		1,410
2022		1,410
Thereafter		3,525
Total	$	9,867

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Other Accrued Liabilities

9 Months Ended

Sep. 30, 2018

Other Accrued Liabilities [Abstract]

Other Accrued Liabilities

Note 7

Other Accrued Liabilities:

	September 30, 2018		December 31, 2017
Accrued warranty, current	$	146	$	109
Accrued compensation, including commissions and vacation		1,196		785
Accrued sales and other taxes		869		904
Distributor rights liability, current		-		85
Accrued professional fees and other accrued liabilities		486		477
Total other accrued liabilities	$	2,697	$	2,360

Included in accrued sales and other taxes are certain estimated sales and use taxes and related penalties and interest currently assessed but not adjudicated by taxing authorities. All the Company's tax positions are subject to audit. The Company has been subject to audits performed by the taxing authorities. The Company uses estimates when accruing its sales and use tax liability, including interest and penalties.  While the Company believes all its estimates and assumptions are reasonable and will be sustained upon audit, actual liabilities and credits may differ significantly. The Company believes its accruals cover all probable payments relating to sales and use taxes.

Accrued Warranty Costs

The Company offers a standard warranty on product sales generally for a one to two-year period, however, the Company has offered longer warranty periods, ranging from three to four years, in order to meet competition or meet customer demands. The Company provides for the estimated cost of the future warranty claims on the date the product is sold. Total accrued warranty is included in Other Accrued Liabilitiesand Other liabilitieson the condensed consolitated balance sheet. The activity in the warranty accrual during the nine months ended September 30, 2018 and 2017 is summarized as follows:

	September 30, 2018			December 31, 2017
Balance at beginning of period	$	178		$	115
Additions charged to warranty expense		91			161
Expiring warranties/claimed satisfied		(19	)		(98	)
Balance at end of period	$	250		$	178

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Long-term Debt

9 Months Ended

Sep. 30, 2018

Long-term Debt [Abstract]

Long-term Debt

Note 8

Long-term Debt:

	September 30, 2018		December 31, 2017
Term note, net of debt discount of $117 and $160, respectively; and deferred financing cost of $92 and $171, respectively	$	7,362	$	10,240
Less: current portion		-		(2,387	)
Total long-term debt	$	7,362	$	7,853

Term-Note Credit Facility

On December 30, 2015, the Company entered into a $12,000 credit facility pursuant to a Credit and Security Agreement (the "Credit Agreement") and related financing documents with MidCap Financial Trust ("MidCap") and the lenders listed therein. Under the Credit Agreement, the credit facility may be drawn down in two tranches, the first of which was drawn for $10,500 on December 30, 2015. The proceeds of this first tranche were used to repay $10,000 principal amount of short-term senior secured promissory notes, plus associated interest, loan fees and expenses. The second tranche was drawn for $1,500 on January 29, 2016. The maturity date of the credit facility is December 1, 2020. The Company's obligations under the credit facility are secured by a first priority lien on all the Company's assets. This credit facility includes both financial and non-financial covenants, including a minimum net revenue covenant. On November 10, 2017, the minimum net revenue covenant was amended prospectively. Additionally, on November 10, 2017, the Company entered into an amendment to modify the principal payments including a period of nine months where there are no principal payments due.

On March 26, 2018 the Company entered into a Third Amendment to the Credit Agreement with MidCap. For the period beginning on the closing date of the loan and ending on January 31, 2018, the gross revenue in accordance with GAAP for the twelve-month period ending on the last day of the most recently completed calendar month was amended to be less than the minimum amount on the Covenant Schedule, as defined in the Credit Agreement. This amendment waived the event of default related to the revenue covenant for the period ending February 2018. This amendment also amended the monthly net revenue covenant for March and April 2018.

On May 29, 2018, the Company entered into a Fourth Amendment to Credit Agreement (the "Amendment"), pursuant to which the Company repaid $3,000 in principal of the existing $10,600 credit facility established with MidCap in 2015. The terms of the credit facility have been amended to impose less restrictive covenants and lower prepayment and exit fees for the Company. The Amendment modified the principal payments including a period of 18 months where there are no principal payments due. The interest rate on the credit facility is one-month LIBOR plus 7.25%. Principal payments begin December 2019. Principal and interest payments beginning December 2019 are $252. The Company was in compliance with all covenants as of September 30, 2018.

These amendments have been accounted for as debt modifications as the present value of the cash flows changed by less than 10%.

The following table summarizes the future payments that the Company is obligated to make for the long-term debt for the future periods:

Remaining in 2018	$	-
2019		252
2020		3,029
2021		3,029
2022		1,261
	$	7,571

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Convertible Debentures

9 Months Ended

Sep. 30, 2018

Convertible Debentures [Abstract]

Convertible Debentures

Note 9

Convertible Debentures:

The Company issued $32,500 aggregate principal amount of Debentures (the "June 2015 Debentures") that, subject to certain ownership limitations and stockholder approval conditions, was convertible into 8,666,668 shares of Company common stock at an initial conversion price of $3.75 per share. The June 2015 Debentures were bearing interest at the rate of 2.25% per year, and, unless previously converted, were to mature on the five-year anniversary of the date of issuance, June 22, 2020.

The June 2015 Debentures included a beneficial conversion feature valued at $27,300 that was recorded as a discount to the debentures. On the date of issuance, the beneficial conversion feature value was calculated as the difference resulting from subtracting the conversion price of $3.75 from $6.90, the opening market value of the Company's common stock following the announcement of the transaction, multiplied by the number of common shares into which the June 2015 Debentures were convertible. This discount was being amortized over the five-year life of the June 2015 Debentures using the effective interest method. The embedded conversion feature contained an anti-dilution provision that allowed for downward exercise price adjustments in certain situations. The embedded conversion feature was not bifurcated as it did not meet all the elements of a derivative.

On July 21, 2014, the Company entered into a definitive Securities Purchase Agreement (the "Purchase Agreement") with institutional investors (the "Investors") providing for the issuance of Senior Secured Convertible Debentures in the aggregate principal amount of $15,000, due, subject to the terms therein, in July 2019 (the "July 2014 Debentures"), and warrants (the "July 2014 Series A Warrants") to purchase up to an aggregate of 1,239,769 shares of common stock, $0.001 par value per share, at an exercise price of $12.25 per share expiring in July 2019. The July 2014 Debentures were bearing interest at an annual rate of 4%, payable quarterly or upon conversion into shares of common stock. The Debentures were convertible at any time into an aggregate of 1,169,595 shares of common stock at an initial conversion price of $12.825 per share. The Company's obligations under the July 2014 Debentures was secured by a first priority lien on all the Company's intellectual property pursuant to the terms of a security agreement ("Security Agreement") dated July 21, 2014 among the Company and the Investors. In connection with the Purchase Agreement, the Company entered into a Registration Rights Agreement with the Investors pursuant to which the Company was obligated to file a registration statement to register for resale the shares of Common Stock issuable upon conversion of the Series B Preferred Stock, see Note 10, Warrants, and upon exercise of the Warrants. Under the terms of the Registration Rights Agreement, the Company filed a registration statement on August 19, 2014, which was declared effective by the SEC on October 20, 2014 (File No. 333-198249).

For financial reporting purposes, out of the $15,000 funded by the Investors on July 21, 2014 $5,296 was allocated first to the Warrants issued, then $4,565 to the intrinsic value of the beneficial conversion feature on the July 2014 Debentures. The balance was further reduced by the fair value of warrants issued to the placement agent for services rendered of $491, resulting in an initial carrying value of the Debentures of $4,647. The initial debt discount on the July 2014 Debentures totaled $10,353 and was being amortized using the effective interest method over the five-year life of the July 2014 Debentures.

During the nine months ended September 30, 2017, the investors converted debentures amounting to $262 into 70,000 shares of common stock for the June 2015 note. The debt discount and deferred financing cost adjustment resulting from the conversions increased interest expense by $197 for the nine months ended September 30, 2017.

As a condition of the new note facility, see Note 8, Long-term Debt, each of the June 2015 Debentures and the July 2014 Debentures collectively the "Debentures" were amended. The Debentures holders' first priority lien was subordinated to the new term note facility. Additionally, as a condition of the term note facility, the maturity date of both Debentures was extended to June 30, 2021 and treated as a modification.

On June 6, 2017, the Company entered into a Securities Exchange Agreement (the "Agreement") with the holders of its 2.25% Senior Series A Secured Convertible Debentures due June 30, 2021 and 4% Senior Secured Convertible Debentures due July 30, 2021, pursuant to which the holders have agreed to exchange all such outstanding debentures into shares of newly created Series C Convertible Preferred Stock. The elimination of the senior secured debt also eliminated the Company's obligation to pay approximately $4,000 of interest payments over the next four years. The stockholders approved the exchange at the stockholders' meeting held on September 14, 2017. The closing of the exchange was effective on September 20, 2017 and $40,465 principal was exchanged for 40,482 shares of Series C Preferred Stock. In accordance with ASC Topic 470, Debt, the aforementioned exchange was treated as an extinguishment of debt. As there was no intrinsic value for the conversion feature on the date of extinguishment, none of the proceeds were allocated to the extinguishment of the beneficial conversion feature. As such, the difference between the fair value of the convertible preferred stock issued (determined based on the market value of the underlying common stock) and the net carrying value of the Debentures (adjusted for unamortized premium discount), of $11,799 was recognized as a loss on extinguishment of Debentures.

Other than the limitations on conversions to keep each such holder's beneficial ownership below 9.99%, the terms of the Series C Convertible Preferred Stock generally bestow the same rights to each holder as such holder would receive if they are common stock shareholder and are not redeemable by the holders, except the Series C Convertible Preferred Stock shares do not have voting rights. The Series C Convertible Preferred Stock have the same level of subordination as common stock. Each share of Series C Convertible Preferred Stock has a stated value of $1,000 and is convertible into 372 shares of common stock (at a conversion price equal to $2.69) for a total of approximately 15,049,000 shares of common stock.

The total outstanding Debentures was exchanged for convertible Preferred C stock on September 20, 2017, thus there was no remaining outstanding balance as of September 30, 2018 or December 31, 2017.

Total interest expense related to the Debentures was $961 and $3,116 for the three and nine months ended September 30, 2017, respectively.

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Warrants

9 Months Ended

Sep. 30, 2018

Warrants [Abstract]

Warrants

Note 10

Warrants:

The Company accounts for warrants that require net cash settlement upon change of control of the Company as liabilities instead of equity. Currently there are warrants to purchase 403,090 shares of common stock with an exercise price of $3.75 per share and they expire between February 5, 2019 and April 30, 2019. The fair value of these derivatives was $104 and $3 as of September 30, 2018 and December 31, 2017, respectively. The change in fair value of these derivatives was recorded as $79 of other expense and $81 of other income for the three months ended September 30, 2018 and 2017, and $101 and $77 in other expense for the nine months ended September 30, 2018 and 2017 respectively.

Outstanding common stock warrants at September 30, 2018 consist of the following:

Issue Date	Expiration Date	Total Warrants		Exercise Price
10/31/2013*	4/30/2019		137,143	$	3.75
2/5/2014*	2/5/2019		265,947	$	3.75
7/24/2014	7/24/2019		1,239,769	$	3.75 - $ 12.25
6/22/2015	6/22/2020		600,000	$	3.75
12/30/2015	12/30/2020		130,089	$	5.65
1/29/2016	1/29/2021		19,812	$	5.30
			2,392,760

*These warrants are classified as liabilities.

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Stock-based Compensation

9 Months Ended

Sep. 30, 2018

Stock-based Compensation [Abstract]

Stock-based Compensation

Note 11

Stock-based Compensation:

At September 30, 2018, the Company had options to purchase 4,342,765 shares of common stock outstanding with a weighted-average exercise price of $2.02. As of September 30, 2018, options to purchase 785,461 shares are vested and exercisable.

On March 30, 2018, the Company issued options to purchase 1,557,628 shares of common stock to its then Interim Chief Executive Officer with a strike price of $1.12 per share. The options vest over three years and expire ten years from the date of grant. The aggregate fair value of the options granted was $950.

On May 23, 2018, the Company issued options to purchase 1,413,249 shares of common stock to its Chief Executive Officer with a strike price of $1.66 per share. The options vest over three years and expire ten years from the date of grant. The aggregate fair value of the options granted was $1,237.

There were additional grants made to management during the quarter ended June 30, 2018 totaling 800,000 at strike prices ranging from $1.66 to $1.93. The options vest over three years and expire ten years from the date of grant. The aggregate fair value of the options granted was $801.

In connection with the closing of the Financing, there were changes to the board of directors and the Company issued initial grants to new members as well as grants to all members as compensation. In total, the Company granted 140,097 restricted stock units to the board members at a strike price of $2.07. The restricted stock units vest quarterly over twelve months and expire ten years from the date of grant. The aggregate fair value of the restricted stock units granted was $290.

Stock-based compensation expense, which is included in general and administrative expense, for the three and nine months ended September 30, 2018 was $367 and $570, respectively. For the three and nine months ended September 30, 2017 stock-based compensation was $63 and $136, respectively. As of September 30, 2018, there was $2,854 in unrecognized compensation expense, which will be recognized over a weighted average period of 1.37 years. There are 1,134,521 options available for issuance as of September 30, 2018.

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Income Taxes

9 Months Ended

Sep. 30, 2018

Income Taxes [Abstract]

Income Taxes

Note 12

Income Taxes:

The Company accounts for income taxes using the asset and liability method for deferred income taxes. The provision for income taxes includes federal, state and local income taxes currently payable and deferred taxes resulting from temporary differences between the financial statement and tax bases of assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized.

Income tax benefit of $80 for the three months ended September 30, 2018 and an expense of $38 and $181 for the three and nine months ended September 30, 2017, respectively, was comprised primarily of the change in deferred tax liability related to goodwill. Goodwill is an amortizing asset according to tax regulations.

The Company has experienced certain ownership changes, which under the provisions of Section 382 of the Internal Revenue Code of 1986, as amended, result in annual limitations on the Company's ability to utilize its net operating losses in the future.  Although the Company has not performed a Section 382 study, any limitation of its pre-change net operating loss carryforwards that would result in a reduction of its deferred tax asset would also have an equal and offsetting adjustment to the valuation allowance.

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Business Segments

9 Months Ended

Sep. 30, 2018

Business Segments [Abstract]

Business Segments

Note 13

Business Segments:

In 2018, the Company organized its business into two operating segments to better align its organization based upon the Company's management structure, products and services offered, markets served and types of customers, as follows: The Dermatology Recurring Procedures segment derives its revenues from the XTRAC procedures performed by dermatologists. The Dermatology Procedures Equipment segment generates revenues from the sale of equipment, such as lasers and lamp products. The Dermatology Imaging segment generated revenues from the sale and usage of imaging devices. The Company announced that it will no longer support the imaging devices effective September 30, 2017 thus there will be minimal, if any, continuing revenues for this segment. This is no longer a reportable segment in 2018. Management reviews financial information presented on an operating segment basis for the purposes of making certain operating decisions and assessing financial performance.

Unallocated operating expenses include costs that are not specific to a particular segment but are general to the group; included are expenses incurred for administrative and accounting staff, general liability and other insurance, professional fees and other similar corporate expenses. Interest expense and other income (expense), net are also not allocated to the operating segments.

The following tables reflect results of operations from our business segments for the periods indicated below:

Three Months Ended September 30, 2018

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues	$	5,556		$	2,336		$	7,892
Costs of revenues		1,757			1,292			3,049
Gross profit		3,799			1,044			4,843
Gross profit %		68.4	%		44.7	%		61.4	%
Allocated operating expenses:
Engineering and product development		178			46			224
Selling and marketing		2,276			211			2,487
Unallocated operating expenses		-			-			2,184
		2,454			257			4,895
Income (loss) from operations		1,345			787			(52	)
Interest expense, net		-			-			(239	)
Change in fair value of warranty liability		-			-			(79	)
Income (loss) before income taxes	$	1,345		$	787		$	(370	)

Three Months Ended September 30, 2017

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Dermatology Imaging			TOTAL
Revenues	$	5,525		$	1,751		$	9		$	7,285
Costs of revenues		2,084			967			225			3,276
Gross profit		3,441			784			(216	)		4,009
Gross profit %		62.3	%		44.8	%		(2400.0	%)		55.0	%
Allocated operating expenses:
Engineering and product development		348			63			-			411
Selling and marketing expenses		2,043			449			-			2,492
Unallocated operating expenses		-			-			-			1,678
		2,391			512			-			4,581
Income (loss) from operations		1,050			272			(216	)		(572	)
Interest expense, net		-			-			-			(1,343	)
Change in fair value of warrant liability		-			-			-			81
Loss on extinguishment of debt		-			-			-			(11,799	)
Income (loss) before income taxes	$	1,050		$	272		$	(216	)	$	(13,633	)

The following tables reflect results of operations from our business segments for the periods indicated below:

Nine Months Ended September 30, 2018

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues	$	15,221		$	6,671		$	21,892
Costs of revenues		5,587			4,255			9,842
Gross profit		9,634			2,416			12,050
Gross profit %		63.3	%		36.2	%		55.0	%
Allocated operating expenses:
Engineering and product development		663			168			831
Selling and marketing		6,663			1,074			7,737
Unallocated operating expenses		-			-			6,319
		7,326			1,242			14,887
Income (loss) from operations		2,308			1,174			(2,837	)
Interest expense, net		-			-			(930	)
Change in fair value of warrant liability		-			-			(101	)
Income (loss) before income taxes	$	2,308		$	1,174		$	(3,868	)

Nine Months Ended September 30, 2017

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Dermatology Imaging			TOTAL
Revenues	$	17,051		$	5,784		$	17		$	22,852
Costs of revenues		5,969			2,988			225			9,182
Gross profit		11,082			2,796			( 208	)		13,670
Gross profit %		65.0	%		48.3	%		(1,223.5	%)		59.8	%
Allocated operating expenses:
Engineering and product development		1,104			204			1			1,309
Selling and marketing expenses		7,145			1,167			-			8,312
Unallocated operating expenses		-			-			-			4,999
		8,249			1,371			1			14,620
Income (loss) from operations		2,833			1,425			(209	)		(950	)
Interest expense, net		-			-			-			(4,264	)
Change in fair value of warrant liability		-			-			-			77
Loss on extinguishment of debt		-			-			-			(11,799	)
Other income (expense), net		-			-			-			6
Income (loss) before income taxes	$	2,833		$	1,425		$	(209	)	$	(16,930	)

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Significant Customer Concentration

9 Months Ended

Sep. 30, 2018

Significant Customer Concentration [Abstract]

Significant Customer Concentration

Note 14

Significant Customer Concentration:

For the three and nine months ended September 30, 2018, revenues from sales to the Company's international master distributor (GlobalMed Technologies) were $2,077 and $5,379, or 26 % and 24%, of total revenues for such period, respectively. At September 30, 2018, the accounts receivable balance from GlobalMed Technologies was $356 or 13.0%, of total net accounts receivable.

For the three and nine months ended September 30, 2017, revenues from sales to GlobalMed Technologies were $1,148 and $3,861, or 15.3% and 16.9%, of total revenues for such period, respectively. At September 30, 2017, the accounts receivable balance from GlobalMed Technologies was $418, or 13.1%, of total net accounts receivable.

No other customer represented more than 10% of total company revenues for the three and nine months ended September 30, 2018 and 2017. No other customer represented more than 10% of total accounts receivable as of September 30, 2018 and 2017.

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Related Parties

9 Months Ended

Sep. 30, 2018

Related Parties [Abstract]

Related Parties

Note 15

Related Parties:

On March 30, 2018, in connection with the Financing, the Company entered into the Broadfin SPA and the Sabby SPA, each for approximately $1,000 with our then current shareholders, Broadfin and Sabby. Upon closing of the Financing, each of Sabby and Broadfin received 925,926 shares of our common stock at a price per share of $1.08. In addition, the Company also entered into a Subscription Agreement with Dr. Dolev Rafaeli, our Chief Executive Officer and Director for $1,000 to purchase 925,926 shares of our common stock at $1.08 per share. See Note 2 for more information on the Financing.

On June 22, 2015, the Company entered into a securities purchase agreement with the Purchasers, including certain funds managed by Sabby Management, LLC and Broadfin Capital LLC (existing Company shareholders), in connection with a private placement. The Purchasers were issued Warrants to purchase an aggregate of 0.6 million shares of common stock, having an exercise price of $3.75 per share. We also issued $32.5 million aggregate principal amount of Debentures that, subject to certain ownership limitations and stockholder approval conditions, were convertible into 8,666,668 shares of common stock at an initial conversion price of $3.75 per share. The Debentures were bearing interest at the rate of 2.25% per year, and, unless previously converted, were to mature on the five-year anniversary of the date of issuance. Refer to Note 9 for information on the interest expense relating to the Debentures. On September 30, 2015, the Company repriced outstanding Warrants held by certain investors to reduce the exercise price to $3.75 per share.

On June 6, 2017, the Company entered into a Securities Exchange Agreement (the "Agreement") with the holders of its 2.25% Senior Series A Secured Convertible Debentures due June 30, 2021 and 4% Senior Secured Convertible Debentures due July 30, 2021, pursuant to which the holders have agreed to exchange all of such outstanding debentures into shares of newly created Series C Convertible Preferred Stock. The stockholders approved the exchange at the stockholders' meeting held on September 14, 2017. The closing of the exchange was effective on September 20, 2017 and $40,465 of principal was exchanged for 40,482 shares of Series C Preferred Stock. In accordance with ASC Topic 470, Debt, the aforementioned exchange was treated as an extinguishment of debt.

In 2017, the Company had consulting contracts with two of its directors. The directors were paid $10 per month for their services to provide strategic support, advice and guidance to the Company and its management team in connection with the integration and operation of the expanded business, investor relations and internal and external business development activities. The agreements expired per their terms on June 30, 2017 and December 31, 2017 and no extensions or renewals of the agreements were entered into.

During 2018, the Company had an agreement with the son of a former Board Member for direct to consumer advertising. The Company incurred $13 of expense, over a nine month period, and no longer uses the service.

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Commitments

9 Months Ended

Sep. 30, 2018

Commitments [Abstract]

Commitments

Note 16

Commitments:

On September 28, 2018, the Company entered into a Sublease Agreement (the "Sublease") with the Luigi Bormioli Corporation ("Bormioli") to sublease approximately 8,513 square feet of space of an office building located at 5 Walnut Grove Drive, Horsham, PA 19044 for the Company's new headquarters location.  The Company's current lease for its headquarters expires on November 30, 2018.  Bormioli is the prime tenant of the premises in a prime lease agreement with RVOP, LLC. The Sublease term commences on November 15, 2018 and expires on January 31, 2023, with the Company having the option of extending the term for one additional term of two years. The Sublease contains certain protections for the Company in the event of a default by Bormioli under the prime lease.

The Sublease also contains customary terms and conditions for a real property sublease as well as default provisions allowing Bormioli to terminate the Sublease in the event of an unremedied breach by the Company.

The Company has various non-cancelable operating lease agreements for real property and several minor operating leases these arrangements expire at various dates through January 2023. Rent expense was $110 and $332 for the three and nine months ended September 30, 2018, respectively, and $111 and $338 for the three and nine months ended September 30, 2017, respectively. The future annual minimum payments under these leases are as follows:

Year Ending December 31,
2018	92
2019	352
2020	213
2021	220
2022	227
Thereafter	17

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The Company (Policies)

9 Months Ended

Sep. 30, 2018

The Company [Abstract]

Accounting Principles

Accounting Principles

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary in India. All significant intercompany balances and transactions have been eliminated in consolidation. In 2018, there are no operations in the subsidiary in India.

Unaudited Interim Condensed Consolidated Financial Statements

Unaudited Interim Condensed Consolidated Financial Statements

The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC") for interim financial reporting. These consolidated statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to state fairly the condensed consolidated balance sheets, condensed consolidated statements of operations condensed consolidated statements of cash flows and consolidated statement of changes in equity, for the periods presented in accordance with GAAP. The consolidated balance sheet at December 31, 2017 has been derived from the audited consolidated financial statements at that date. Operating results and cash flows for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018, or any  other future period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations for interim reporting of the SEC. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017, and other forms filed with the SEC from time to time.

Reclassifications

Reclassifications

Certain reclassifications from the prior year presentation have been made to conform to the current year presentation. These reclassifications did not have a material impact on the Company's equity, results of operations or cash flows.

The Company records co-pay reimbursements made to patients receiving laser treatments as a reduction of revenue. For the three and nine months ended September 30, 2017, the Company reclassified such reimbursements in the amount of $195 and $602, respectively, from selling and marketing expenses to reduction in revenues. The Company has determined that this reclassifcation is not material to the condensed consolidated financial statements for the three and nine months ended September 30, 2017.

Significant Accounting Policies

Significant Accounting Policies

The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed in our 2017 Form 10-K, and there have been no changes to the Company's significant account policies during the three and nine months ended September 30, 2018, except for the adoption of the new revenue recognition standard as discussed under Adoption of New Accounting Standards later within this Note 1.

Use of Estimates

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates and be based on events different from those assumptions. As of September 30, 2018, the most significant estimates include (1) revenue recognition, (2) allowance for doubtful accounts of accounts receivable, (3) the estimated useful lives of intangible assets and property and equipment, (4) the inputs used in determining the fair value of equity-based awards, (5) the valuation allowance related to deferred tax assets and (6) the fair value of financial instruments, including derivative instruments.

Fair Value Measurements

Fair Value Measurements

The Company measures and discloses fair value in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification 820, Fair Value Measurements and Disclosures ("ASC Topic 820"). ASC Topic 820 defines fair value, establishes a framework and gives guidance regarding the methods used for measuring fair value, and expands disclosures about fair value measurements. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions there exists a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

• Level 1 – unadjusted quoted prices are available in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date.

• Level 2 – pricing inputs are other than quoted prices in active markets that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.

• Level 3 – pricing inputs are unobservable for the non-financial asset or liability and only used when there is little, if any, market activity for the non-financial asset or liability at the measurement date. The inputs into the determination of fair value require significant management judgment or estimation. Fair value is determined using comparable market transactions and other valuation methodologies, adjusted as appropriate for liquidity, credit, market and/or other risk factors.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.

The fair value of cash and cash equivalents are based on their respective demand value, which are equal to the carrying value. The fair value of derivative warrant liabilities is estimated using option pricing models that are based on the fair value of the Company's common stock as well as assumptions for volatility, remaining expected life, and the risk-free interest rate. The derivative warrant liabilities are the only recurring Level 3 fair value measures and the only asset or liability that is measured at fair value on a recurring basis. The carrying value of all other short-term monetary assets and liabilities is estimated to be approximate to their fair value due to the short-term nature of these instruments. As of September 30, 2018, and December 31, 2017, the Company assessed its long-term debt (including the current portion) and determined that the fair value of total debt approximated its book value due to the market rate on the debt.

Several of the warrants outstanding as of September 30, 2018 and 2017 have non-standard terms as they relate to a fundamental transaction and require a net-cash settlement upon change in control of the Company. All such warrants are classified as derivatives and are the Company's only recurring fair value measurement. These warrants have been recorded at their fair value using a Black Scholes option pricing model and continue to be recorded at their respective fair value at each subsequent balance sheet date until such terms expire. See Note 10, Warrants, for additional discussion. 

Recurring level 3 Activity and Recalculation

The table below provides a reconciliation of the beginning and ending balance for the liability measured at fair value using significant unobservable inputs (Level 3).

Issuance Date	December 31, 2017		Increase in Fair Value		September 30, 2018
10/31/2013		2		51		53
2/5/2014		1		50		51
	$	3	$	101	$	104

Issuance Date	December 31, 2016		Decrease in Fair Value			December 31, 2017
10/31/2013		39		(37	)		2
2/5/2014		66		(65	)		1
	$	105	$	(102	)	$	3

Earnings Per Share

Earnings Per Share

The Company calculates net loss per share in accordance with ASC 260, Earnings per Share. Under ASC 260, basic net loss per common share is calculated by dividing net income by the weighted-average number of common shares outstanding during the reporting period and excludes dilution for potentially dilutive securities. Diluted earnings per share gives effect to dilutive options, warrants and other potential common shares outstanding during the period.

The Company's Series C Preferred Shares are subordinate to all other securities at the same subordination level as common stock and they participate in all dividends and distributions declared or paid with respect to common stock of the Company, on an as-converted basis. Therefore, the Series C Preferred Shares meet the definition of common stock under ASC 260. Earnings per share is presented for each class of security meeting the definition of common stock. The net loss is allocated to each class of security meeting the definition of common stock based on their contractual terms.

The following table presents the calculation of basic and diluted net loss per share by each class of security for the three and nine months ended September 30, 2018:

	Three Months Ended September 30, 2018						Nine Months Ended September 30, 2018
	Common Stock			Series C Preferred Stock			Common Stock			Series C Preferred Stock
Net loss	$	(257	)	$	(33	)	$	(2,493	)	$	(1,375	)
Weighted average number of shares outstanding during the period		29,912,827			10,049			16,099,752			23,872
Basic and Diluted net loss per share	$	(0.01	)	$	(3.23	)	$	(0.15	)	$	(57.58	)

The following table presents the calculation of basic and diluted net loss per share by each class of security for the three and nine months ended September 30, 2017:

	For the Three Months Ended September 30, 2017						For the Nine Months Ended September 30, 2017
	Common stock			Series C Preferred stock			Common stock			Series C Preferred stock
Net loss	$	(8,235	)	$	(5,436	)	$	(13,835	)	$	(3,276	)
Weighted average number of shares outstanding during the period		2,477,743			4,400			2,328,274			1,483
Basic and Diluted net loss per share	$	(3.32	)	$	(1,235.43	)	$	(5.94	)	$	(2,208.96	)

For the three and nine months ended September 30, 2018 and 2017, diluted net loss per common share and Series C Preferred share is equal to the basic net loss per common share and Series C Preferred share, respectively, since all potentially dilutive securities are antidilutive.

The weighted average of potential common stock equivalents outstanding during the nine months ended September 30, 2018 and 2017 consist of common stock equivalents of senior secured convertible debentures, common stock purchase warrants, convertible preferred stock, restricted stock units and common stock options, which are summarized as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2018	2017	2018		2017
Common stock equivalents of convertible debentures	-	7,546,299		-	8,191,777
Common stock purchase warrants	2,392,760	2,406,625	2,398,651		2,406,625
Common stock equivalents of convertible Preferred B stock	-	228,336	-		343,261
Common stock equivalents of convertible Preferred C stock	3,777,033	-	8,874,092		-
Restricted stock units	140,097	-	58,717		-
Common stock options	4,371,764	855,389	2,786,400		873,554
Total	10,681,654	11,036,649	14,117,860		11,815,217

Adoption of New Accounting Standards

Adoption of New Accounting Standards

Effective January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) using the modified retrospective method with a cumulative adjustment that increased its accumulated deficit and deferred revenue by approximately $234 as of January 1, 2018. The cumulative adjustment was related to the promise to provide service type contracts related to sales of dermatology procedures equipment for all outstanding contracts, outstanding as of January 1, 2018. A portion of the transaction price of equipment sold with these service type warranties is allocated to such warranties based on their stand-alone selling price, and the Company now recognizes revenue from these service type warranties ratably over the warranty term. The method used to estimate stand-alone selling price is the price observed in transactions where the customer is charged a discrete price for the extended warranty.

Other than the above change related to warranties, the adoption of this standard did not have a material impact on the Company's results of operations for the three and nine months ended September 30, 2018. The impact from adopting this standard on the Company's statement of operations for the three and nine months ended September 30, 2018 is as follows:

	For the Three Months Ended September 30, 2018
Statement of Operations	As Reported		Balances Without Adoption of ASC 606		Effect of Adoption Higher / (Lower)
Revenues	$	7,892	$	7,946	$	(54	)

	For the Nine Months Ended September 30, 2018
Statement of Operations	As Reported		Balances Without Adoption of ASC 606		Effect of Adoption Higher / (Lower)
Revenues	$	21,892	$	22,006	$	(114	)

See Note 3 for additional information.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In July 2017, the FASB issued a two-part ASU 2017-11, "(Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-Controlling Interests with a Scope Exception." For public business entities, the amendments in Part 1 of ASU 2017-11 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. The amendments in Part 2 of ASU 2017-11 do not require any transition guidance because those amendments do not have an accounting effect. The Company is currently evaluating the impact of this guidance on the Company's condensed consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new guidance eliminated Step 2 from the goodwill impairment test which was required in computing the implied fair value of goodwill. Instead, under the new amendments, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. If applicable, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The amendments in this guidance are effective for public business entities for annual and interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019 with early adoption permitted after January 1, 2017. As the Company has not identified a goodwill impairment loss, currently this guidance does not have an impact on the Company's condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02: Leases (Topic 842, as amended). The guidance introduces a lessee model that results in most leases impacting the balance sheet. Under ASU 2016-02, lessees will be required to recognize, for all leases with terms longer than 12 months, at the commencement date of the lease, a lease liability, which is a lessee's obligation to make lease payments arising from a lease measured on a discounted basis, and a right-to-use asset, which is an asset that represents the lessee's right to use or control the use of a specified asset for the lease term. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. Also, the new standard aligns many of the underlying principles of the new lessor model with those in ASC 606, the FASB's new revenue recognition model. The update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While we continue to evaluate the effect of adopting this guidance on our condensed consolidated financial statements and related disclosures, including the use of optional practical expedients, we expect our operating leases will be subject to the new standard. We will recognize right-of-use assets and operating lease liabilities on our consolidated balance sheets upon adoption, which will increase our total assets and liabilities. Regarding the Company's revenue from short-term leases, we do not expect the new standard to have a material impact on our condensed consolidated financial statements.

In June 2018, the FASB issued ASU No. 2018-07, "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," with the objective of simplifying several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The provisions of this update are effective for fiscal years beginning after December 15, 2018. Although we are evaluating the impact of adopting ASU No. 2018-07 on our financial position, results of operations and cash flows, we currently do not expect a material effect upon adoption because we do not have any nonemployee share-based payment transactions.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The new guidance improves and clarifies the fair value measurement disclosure requirement of ASC 820. The new disclosure requirements include the changes in unrealized gains or losses included in other comprehensive income for recurring Level 3 fair value measurement held at the end of reporting period and the explicit requirement to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The other provisions of ASU 2018-13 also include eliminated and modified disclosure requirements. The guidance is effective for fiscal years beginning after December 15, 2019 with early adoption permitted, including in an interim period for which financial statements have not been issued or made available for issuance. The Company has evaluated the impact of early adoption of this ASU and determined that it will have no significant impact on its condensed consolidated financial statements.

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The Company (Tables)

9 Months Ended

Sep. 30, 2018

The Company [Abstract]

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

The table below provides a reconciliation of the beginning and ending balance for the liability measured at fair value using significant unobservable inputs (Level 3).

Issuance Date	December 31, 2017		Increase in Fair Value		September 30, 2018
10/31/2013		2		51		53
2/5/2014		1		50		51
	$	3	$	101	$	104

Issuance Date	December 31, 2016		Decrease in Fair Value			December 31, 2017
10/31/2013		39		(37	)		2
2/5/2014		66		(65	)		1
	$	105	$	(102	)	$	3

Calculation of Basic and Diluted Net Loss Per Share by Class of Security

The following table presents the calculation of basic and diluted net loss per share by each class of security for the three and nine months ended September 30, 2018:

	Three Months Ended September 30, 2018						Nine Months Ended September 30, 2018
	Common Stock			Series C Preferred Stock			Common Stock			Series C Preferred Stock
Net loss	$	(257	)	$	(33	)	$	(2,493	)	$	(1,375	)
Weighted average number of shares outstanding during the period		29,912,827			10,049			16,099,752			23,872
Basic and Diluted net loss per share	$	(0.01	)	$	(3.23	)	$	(0.15	)	$	(57.58	)

The following table presents the calculation of basic and diluted net loss per share by each class of security for the three and nine months ended September 30, 2017:

	For the Three Months Ended September 30, 2017						For the Nine Months Ended September 30, 2017
	Common stock			Series C Preferred stock			Common stock			Series C Preferred stock
Net loss	$	(8,235	)	$	(5,436	)	$	(13,835	)	$	(3,276	)
Weighted average number of shares outstanding during the period		2,477,743			4,400			2,328,274			1,483
Basic and Diluted net loss per share	$	(3.32	)	$	(1,235.43	)	$	(5.94	)	$	(2,208.96	)

Antidilutive Securities Excluded from Computation of Earnings Per Share

The weighted average of potential common stock equivalents outstanding during the nine months ended September 30, 2018 and 2017 consist of common stock equivalents of senior secured convertible debentures, common stock purchase warrants, convertible preferred stock, restricted stock units and common stock options, which are summarized as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2018	2017	2018		2017
Common stock equivalents of convertible debentures	-	7,546,299		-	8,191,777
Common stock purchase warrants	2,392,760	2,406,625	2,398,651		2,406,625
Common stock equivalents of convertible Preferred B stock	-	228,336	-		343,261
Common stock equivalents of convertible Preferred C stock	3,777,033	-	8,874,092		-
Restricted stock units	140,097	-	58,717		-
Common stock options	4,371,764	855,389	2,786,400		873,554
Total	10,681,654	11,036,649	14,117,860		11,815,217

Impact of Adoption of New Accounting Standards on the Statement of Operations and Comprehensive Loss

The impact from adopting this standard on the Company's statement of operations for the three and nine months ended September 30, 2018 is as follows:

	For the Three Months Ended September 30, 2018
Statement of Operations	As Reported		Balances Without Adoption of ASC 606		Effect of Adoption Higher / (Lower)
Revenues	$	7,892	$	7,946	$	(54	)

	For the Nine Months Ended September 30, 2018
Statement of Operations	As Reported		Balances Without Adoption of ASC 606		Effect of Adoption Higher / (Lower)
Revenues	$	21,892	$	22,006	$	(114	)

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Revenue (Tables)

9 Months Ended

Sep. 30, 2018

Revenue [Abstract]

Disaggregation of Revenue

The following table presents the Company's revenue disaggregated by geographical region for the three and nine months ended September 30, 2018. The revenue for the three and nine months ended September 30, 2017 have not been adjusted for the adoption of ASC 606. Domestic refers to revenue from customers based in the United States, and substantially all foreign revenue is derived from dermatology procedures equipment sales to the Company's international master distributor for physicians based primarily in Asia.

	Three Months Ended September 30, 2018
	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Domestic	$	5,556	$	366	$	5,922
Foreign		-	$	1,970		1,970
Total	$	5,556	$	2,366	$	7,892

	Nine Months Ended September 30, 2018
	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Domestic	$	15,221	$	1,337	$	16,558
Foreign		-	$	5,334		5,334
Total	$	15,221	$	6,671	$	21,892

	Three Months Ended September 30, 2017
	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Domestic	$	5,525	$	617	$	6,142
Foreign		-	$	1,143		1,143
Total	$	5,525	$	1,760	$	7,285

	Nine Months Ended September 30, 2017
	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Domestic	$	17,051	$	1,959	$	19,010
Foreign		-	$	3,842		3,842
Total	$	17,051	$	5,801	$	22,852

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Inventories (Tables)

9 Months Ended

Sep. 30, 2018

Inventories [Abstract]

Inventory

	September 30, 2018		December 31, 2017
Raw materials and work in progress	$	2,391	$	2,490
Finished goods		97		519
Total inventories	$	2,488	$	3,009

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Property and Equipment, net (Tables)

9 Months Ended

Sep. 30, 2018

Property and Equipment, net [Abstract]

Property and Equipment, Net

	September 30, 2018			December 31, 2017
Lasers placed-in-service	$	18,352		$	17,820
Equipment, computer hardware and software		185			462
Furniture and fixtures		130			124
Leasehold improvements		31			31
		18,698			18,437
Accumulated depreciation and amortization		(13,000	)		(10,734	)
Property and equipment, net	$	5,698		$	7,703

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Intangible Assets, net (Tables)

9 Months Ended

Sep. 30, 2018

Intangible Assets, net [Abstract]

Definite-lived Intangible Assets

Set forth below is a detailed listing of definite-lived intangible assets as of September 30, 2018:

	Balance		Accumulated Amortization			Intangible Assets, net
Core technology	$	5,700	$	(1,853	)	$	3,847
Product technology		1,500		(1,150	)		350
Customer relationships		6,900		(2,243	)		4,657
Tradenames		1,500		(487	)		1,013
	$	15,600	$	(5,733	)	$	9,867

Set forth below is a detailed listing of definite-lived intangible assets as of December 30, 2017:

	Balance		Accumulated Amortization			Intangible Assets, net
Core technology		5,700		(1,425	)		4,275
Product technology		1,500		(1,000	)		500
Customer relationships		6,900		(1,725	)		5,175
Tradenames		1,500		(375	)		1,125
Distribution rights		286		(36	)		250
	$	15,886	$	(4,561	)	$	11,325

Finite-lived Intangible Assets Amortization Expense

Estimated amortization expense for the above amortizable intangible assets for future periods is as follows:

Remaining 2018	$	402
2019		1,610
2020		1,510
2021		1,410
2022		1,410
Thereafter		3,525
Total	$	9,867

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Other Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Other Accrued Liabilities [Abstract]

Other Accrued Liabilities

	September 30, 2018		December 31, 2017
Accrued warranty, current	$	146	$	109
Accrued compensation, including commissions and vacation		1,196		785
Accrued sales and other taxes		869		904
Distributor rights liability, current		-		85
Accrued professional fees and other accrued liabilities		486		477
Total other accrued liabilities	$	2,697	$	2,360

Accrued Warranty Costs Activity

The activity in the warranty accrual during the nine months ended September 30, 2018 and 2017 is summarized as follows:

	September 30, 2018			December 31, 2017
Balance at beginning of period	$	178		$	115
Additions charged to warranty expense		91			161
Expiring warranties/claimed satisfied		(19	)		(98	)
Balance at end of period	$	250		$	178

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Long-term Debt (Tables)

9 Months Ended

Sep. 30, 2018

Long-term Debt [Abstract]

Long-term Debt

	September 30, 2018		December 31, 2017
Term note, net of debt discount of $117 and $160, respectively; and deferred financing cost of $92 and $171, respectively	$	7,362	$	10,240
Less: current portion		-		(2,387	)
Total long-term debt	$	7,362	$	7,853

Maturities of Long-term Debt

The following table summarizes the future payments that the Company is obligated to make for the long-term debt for the future periods:

Remaining in 2018	$	-
2019		252
2020		3,029
2021		3,029
2022		1,261
	$	7,571

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Warrants (Tables)

9 Months Ended

Sep. 30, 2018

Warrants [Abstract]

Outstanding Common Stock Warrants

Outstanding common stock warrants at September 30, 2018 consist of the following:

Issue Date	Expiration Date	Total Warrants		Exercise Price
10/31/2013*	4/30/2019		137,143	$	3.75
2/5/2014*	2/5/2019		265,947	$	3.75
7/24/2014	7/24/2019		1,239,769	$	3.75 - $ 12.25
6/22/2015	6/22/2020		600,000	$	3.75
12/30/2015	12/30/2020		130,089	$	5.65
1/29/2016	1/29/2021		19,812	$	5.30
			2,392,760

*These warrants are classified as liabilities.

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Business Segments (Tables)

9 Months Ended

Sep. 30, 2018

Business Segments [Abstract]

Segment Reporting Information by Segment

The following tables reflect results of operations from our business segments for the periods indicated below:

Three Months Ended September 30, 2018

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues	$	5,556		$	2,336		$	7,892
Costs of revenues		1,757			1,292			3,049
Gross profit		3,799			1,044			4,843
Gross profit %		68.4	%		44.7	%		61.4	%
Allocated operating expenses:
Engineering and product development		178			46			224
Selling and marketing		2,276			211			2,487
Unallocated operating expenses		-			-			2,184
		2,454			257			4,895
Income (loss) from operations		1,345			787			(52	)
Interest expense, net		-			-			(239	)
Change in fair value of warranty liability		-			-			(79	)
Income (loss) before income taxes	$	1,345		$	787		$	(370	)

Three Months Ended September 30, 2017

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Dermatology Imaging			TOTAL
Revenues	$	5,525		$	1,751		$	9		$	7,285
Costs of revenues		2,084			967			225			3,276
Gross profit		3,441			784			(216	)		4,009
Gross profit %		62.3	%		44.8	%		(2400.0	%)		55.0	%
Allocated operating expenses:
Engineering and product development		348			63			-			411
Selling and marketing expenses		2,043			449			-			2,492
Unallocated operating expenses		-			-			-			1,678
		2,391			512			-			4,581
Income (loss) from operations		1,050			272			(216	)		(572	)
Interest expense, net		-			-			-			(1,343	)
Change in fair value of warrant liability		-			-			-			81
Loss on extinguishment of debt		-			-			-			(11,799	)
Income (loss) before income taxes	$	1,050		$	272		$	(216	)	$	(13,633	)

The following tables reflect results of operations from our business segments for the periods indicated below:

Nine Months Ended September 30, 2018

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues	$	15,221		$	6,671		$	21,892
Costs of revenues		5,587			4,255			9,842
Gross profit		9,634			2,416			12,050
Gross profit %		63.3	%		36.2	%		55.0	%
Allocated operating expenses:
Engineering and product development		663			168			831
Selling and marketing		6,663			1,074			7,737
Unallocated operating expenses		-			-			6,319
		7,326			1,242			14,887
Income (loss) from operations		2,308			1,174			(2,837	)
Interest expense, net		-			-			(930	)
Change in fair value of warrant liability		-			-			(101	)
Income (loss) before income taxes	$	2,308		$	1,174		$	(3,868	)

Nine Months Ended September 30, 2017

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Dermatology Imaging			TOTAL
Revenues	$	17,051		$	5,784		$	17		$	22,852
Costs of revenues		5,969			2,988			225			9,182
Gross profit		11,082			2,796			( 208	)		13,670
Gross profit %		65.0	%		48.3	%		(1,223.5	%)		59.8	%
Allocated operating expenses:
Engineering and product development		1,104			204			1			1,309
Selling and marketing expenses		7,145			1,167			-			8,312
Unallocated operating expenses		-			-			-			4,999
		8,249			1,371			1			14,620
Income (loss) from operations		2,833			1,425			(209	)		(950	)
Interest expense, net		-			-			-			(4,264	)
Change in fair value of warrant liability		-			-			-			77
Loss on extinguishment of debt		-			-			-			(11,799	)
Other income (expense), net		-			-			-			6
Income (loss) before income taxes	$	2,833		$	1,425		$	(209	)	$	(16,930	)

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Commitments (Tables)

9 Months Ended

Sep. 30, 2018

Commitments [Abstract]

Future Annual Minimum Payments under Operating Leases

The future annual minimum payments under these leases are as follows:

Year Ending December 31,
2018	92
2019	352
2020	213
2021	220
2022	227
Thereafter	17

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The Company, Background (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) Systems Extension	Sep. 30, 2017 USD ($)
Finite-Lived Intangible Assets, Net [Abstract]
Cost of revenues	$ 3,049	$ 3,276	$ 9,842	$ 9,182
Esthetic Education, LLC [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Agreement period			3 years
Number of extensions allowed | Extension			2
Period of extension			1 year
Ellipse New Agreement [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Cost of revenues			$ 280
XTRAC [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Number of systems placed in dermatologists offices | Systems			746

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The Company, Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Reclassifications [Abstract]
Selling and marketing expenses	$ 2,487	$ 2,492	$ 7,737	$ 8,312
Revenues	$ 7,892	7,285	$ 21,892	22,852
Reclassification [Member]
Reclassifications [Abstract]
Selling and marketing expenses		(195)		(602)
Revenues		$ 195		$ 602

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The Company, Fair Value Measurements (Details) - Level 3 [Member] - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Roll Forward]
Beginning balance	$ 3	$ 105
Increase (decrease) in fair value	101	(102)
Ending balance	104
10/31/2013 [Member]
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Roll Forward]
Beginning balance	2	39
Increase (decrease) in fair value	51	(37)
Ending balance	53
2/5/2014 [Member]
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Roll Forward]
Beginning balance	1	66
Increase (decrease) in fair value	50	$ (65)
Ending balance	$ 51

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The Company, Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Net loss	$ (290)	$ (13,671)	$ (3,868)	$ (17,111)
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]
Potential common stock equivalents (in shares)	10,681,654	11,036,649	14,117,860	11,815,217
Common Stock [Member]
Earnings Per Share [Abstract]
Net loss	$ (257)	$ (8,235)	$ (2,493)	$ (13,835)
Weighted average number of shares outstanding during the period (in shares)	29,912,827	2,477,743	16,099,752	2,328,274
Basic and Diluted net loss per share (in dollars per share)	$ (0.01)	$ (3.32)	$ (0.15)	$ (5.94)
Series C Preferred Stock [Member]
Earnings Per Share [Abstract]
Net loss	$ (33)	$ (5,436)	$ (1,375)	$ (3,276)
Weighted average number of shares outstanding during the period (in shares)	10,049	4,400	23,872	1,483
Basic and Diluted net loss per share (in dollars per share)	$ (3.23)	$ (1,235.43)	$ (57.58)	$ (2,208.96)
Common Stock Equivalents of Convertible Debentures [Member]
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]
Potential common stock equivalents (in shares)	0	7,546,299	0	8,191,777
Common Stock Purchase Warrants [Member]
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]
Potential common stock equivalents (in shares)	2,392,760	2,406,625	2,398,651	2,406,625
Common Stock Equivalents of Convertible Preferred Stock [Member] | Series C Preferred Stock [Member]
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]
Potential common stock equivalents (in shares)	3,777,033	0	8,874,092	0
Common Stock Equivalents of Convertible Preferred Stock [Member] | Series B Preferred Stock [Member]
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]
Potential common stock equivalents (in shares)	0	228,336	0	343,261
Restricted Stock Units [Member]
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]
Potential common stock equivalents (in shares)	140,097	0	58,717	0
Common Stock Options [Member]
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]
Potential common stock equivalents (in shares)	4,371,764	855,389	2,786,400	873,554

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The Company, Adoption of New Accounting Standards (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Statement of Operations [Abstract]
Revenues	$ 7,892	$ 7,285	$ 21,892	$ 22,852
ASU 2014-09 [Member]
Net Assets, Adjusted Balance [Abstract]
Adoption of accounting standard					$ (234)
Balances Without Adoption of ASC 606 [Member] | ASU 2014-09 [Member]
Statement of Operations [Abstract]
Revenues	7,946		22,006
Effect of Adoption Higher / (Lower) [Member] | ASU 2014-09 [Member]
Net Assets, Adjusted Balance [Abstract]
Deferred revenue					234
Statement of Operations [Abstract]
Revenues	$ (54)		$ (114)
Effect of Adoption Higher / (Lower) [Member] | ASU 2014-09 [Member] | Accumulated Deficit [Member]
Net Assets, Adjusted Balance [Abstract]
Adoption of accounting standard					$ (234)

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Equity Financing and Liquidity (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	9 Months Ended
	May 23, 2018	Mar. 30, 2018	Jul. 31, 2018	Sep. 30, 2018
Equity Financing [Abstract]
Expected equity financing investment		$ 17,000
Sale of common stock, net of expenses				$ 14,664
Sale of common stock, net of expenses (in shares)	15,740,741		153,004
Equity financing cost				2,336
Legal fees				500
Placement agent fees				$ 1,359
Broadfin Capital [Member]
Equity Financing [Abstract]
Percentage of blocker prior to record date for meeting of shareholders		9.99%
Sabby Management [Member]
Equity Financing [Abstract]
Percentage of blocker prior to record date for meeting of shareholders		9.99%
Accelmed Stock Purchase Agreement [Member] | Accelmed Growth Partners L.P. [Member]
Equity Financing [Abstract]
Sale of common stock, net of expenses		$ 13,000
Share price (in dollars per share)		$ 1.08
Sale of common stock, net of expenses (in shares)		12,037,037
Broadfin Capital and Sabby Management Stock Purchase Agreements [Member]
Equity Financing [Abstract]
Preferred stock, conversion price (in dollars per share)		$ 1.296
Broadfin Capital and Sabby Management Stock Purchase Agreements [Member] | Broadfin Capital [Member]
Equity Financing [Abstract]
Sale of common stock, net of expenses		$ 1,000
Share price (in dollars per share)		$ 1.08
Sale of common stock, net of expenses (in shares)		925,926
Broadfin Capital and Sabby Management Stock Purchase Agreements [Member] | Sabby Management [Member]
Equity Financing [Abstract]
Sale of common stock, net of expenses		$ 1,000
Share price (in dollars per share)		$ 1.08
Sale of common stock, net of expenses (in shares)		925,926
Subscription Agreement [Member] | Gohan Investments, Ltd [Member]
Equity Financing [Abstract]
Sale of common stock, net of expenses		$ 1,000
Share price (in dollars per share)		$ 1.08
Sale of common stock, net of expenses (in shares)		925,926
Subscription Agreement [Member] | Dr. Dolev Rafaeli [Member]
Equity Financing [Abstract]
Sale of common stock, net of expenses		$ 1,000
Share price (in dollars per share)		$ 1.08
Sale of common stock, net of expenses (in shares)		925,926

XML

Revenue, Remaining Performance Obligation (Details) $ in Thousands	Sep. 30, 2018 USD ($)
Remaining Performance Obligation [Abstract]
Remaining performance obligations	$ 313
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01
Remaining Performance Obligation [Abstract]
Remaining performance obligations	$ 137
Expected timing of satisfaction period	12 months

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Revenue, Contract Liabilities (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018 USD ($)	Sep. 30, 2018 USD ($)
Contract with Customer, Liability [Abstract]
Short-term contract liabilities	$ 82	$ 82
Long-term contract liabilities	231	231
Change in Contract with Customer, Liability [Abstract]
Contract liabilities recognized as revenue	$ 14	$ 35
Notice period to cancel contract agreement		60 days

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Revenue, Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Abstract]
Revenues	$ 7,892	$ 7,285	$ 21,892	$ 22,852
Revenue from customers excluding Nordlys product line	7,835	7,165	21,558	22,343
Dermatology Recurring Procedures [Member]
Disaggregation of Revenue [Abstract]
Revenues	5,556	5,525	15,221	17,051
Dermatology Procedures Equipment [Member]
Disaggregation of Revenue [Abstract]
Revenues	2,366	1,760	6,671	5,801
Domestic [Member]
Disaggregation of Revenue [Abstract]
Revenues	5,922	6,142	16,558	19,010
Domestic [Member] | Dermatology Recurring Procedures [Member]
Disaggregation of Revenue [Abstract]
Revenues	5,556	5,525	15,221	17,051
Domestic [Member] | Dermatology Procedures Equipment [Member]
Disaggregation of Revenue [Abstract]
Revenues	366	617	1,337	1,959
Foreign [Member]
Disaggregation of Revenue [Abstract]
Revenues	1,970	1,143	5,334	3,842
Foreign [Member] | Dermatology Recurring Procedures [Member]
Disaggregation of Revenue [Abstract]
Revenues	0	0	0	0
Foreign [Member] | Dermatology Procedures Equipment [Member]
Disaggregation of Revenue [Abstract]
Revenues	$ 1,970	$ 1,143	$ 5,334	$ 3,842

XML

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schedule of inventory [Abstract]
Raw materials and work in progress	$ 2,391	$ 2,490
Finished goods	97	519
Total inventories	$ 2,488	$ 3,009

XML

Property and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 18,698		$ 18,698		$ 18,437
Accumulated depreciation and amortization	(13,000)		(13,000)		(10,734)
Property and equipment, net	5,698		5,698		7,703
Depreciation and related amortization expense	850	$ 1,097	2,762	$ 3,292
Lasers Placed-In-Service [Member]
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	18,352		$ 18,352		17,820
Estimated useful life			5 years
Equipment, Computer Hardware and Software [Member]
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	185		$ 185		462
Equipment, Computer Hardware and Software [Member] | Minimum [Member]
Property, Plant and Equipment, Net [Abstract]
Estimated useful life			3 years
Equipment, Computer Hardware and Software [Member] | Maximum [Member]
Property, Plant and Equipment, Net [Abstract]
Estimated useful life			7 years
Furniture and Fixtures [Member]
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	130		$ 130		124
Furniture and Fixtures [Member] | Minimum [Member]
Property, Plant and Equipment, Net [Abstract]
Estimated useful life			3 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, Plant and Equipment, Net [Abstract]
Estimated useful life			7 years
Leasehold Improvements [Member]
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 31		$ 31		$ 31
Automobiles [Member] | Minimum [Member]
Property, Plant and Equipment, Net [Abstract]
Estimated useful life			3 years
Automobiles [Member] | Maximum [Member]
Property, Plant and Equipment, Net [Abstract]
Estimated useful life			7 years
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment, Net [Abstract]
Estimated useful life			3 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment, Net [Abstract]
Estimated useful life			7 years

XML

Intangible Assets, net (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets, Net [Abstract]
Balance	$ 15,600				$ 15,600		$ 15,886
Accumulated amortization	(5,733)				(5,733)		(4,561)
Intangible assets, net	9,867				9,867		11,325
Amortization expense of intangible assets	402			$ 505	1,231	$ 1,519
Estimated amortization expense [Abstract]
Remaining 2018	402				402
2019	1,610				1,610
2020	1,510				1,510
2021	1,410				1,410
2022	1,410				1,410
Thereafter	3,525				3,525
Intangible assets, net	9,867				$ 9,867		11,325
Minimum [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Estimated useful life					3 years
Maximum [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Estimated useful life					10 years
Core Technology [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Balance	5,700				$ 5,700		5,700
Accumulated amortization	(1,853)				(1,853)		(1,425)
Intangible assets, net	3,847				3,847		4,275
Estimated amortization expense [Abstract]
Intangible assets, net	3,847				3,847		4,275
Core Technology [Member] | MelaFind Product [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Finite lived intangible assets, gross, write-off				274		274
Finite lived intangible assets, accumulated Amortization, write-off				251		251
Core Technology [Member] | MelaFind Product [Member] | Cost of Revenues [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Write-off of Intangible Assets, Finite-lived				$ 23		$ 23
Product Technology [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Balance	1,500				1,500		1,500
Accumulated amortization	(1,150)				(1,150)		(1,000)
Intangible assets, net	350				350		500
Estimated amortization expense [Abstract]
Intangible assets, net	350				350		500
Customer Relationships [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Balance	6,900				6,900		6,900
Accumulated amortization	(2,243)				(2,243)		(1,725)
Intangible assets, net	4,657				4,657		5,175
Estimated amortization expense [Abstract]
Intangible assets, net	4,657				4,657		5,175
Tradenames [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Balance	1,500				1,500		1,500
Accumulated amortization	(487)				(487)		(375)
Intangible assets, net	1,013				1,013		1,125
Estimated amortization expense [Abstract]
Intangible assets, net	$ 1,013				$ 1,013		1,125
Distribution Rights [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Balance							286
Accumulated amortization							(36)
Intangible assets, net							250
Finite lived intangible assets, gross, write-off		$ 237
Estimated amortization expense [Abstract]
Intangible assets, net							$ 250
Distribution Rights [Member] | Selling and Marketing Expense [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Write-off of Intangible Assets, Finite-lived		$ 11
Distribution Rights [Member] | Nordlys Product [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Finite lived intangible assets, gross, write-off			$ 286
Finite lived intangible assets, accumulated Amortization, write-off			60
Distribution Rights [Member] | Nordlys Product [Member] | Selling and Marketing Expense [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Write-off of Intangible Assets, Finite-lived			$ 226

XML

Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Other Accrued Liabilities [Abstract]
Accrued warranty, current	$ 146	$ 109
Accrued compensation, including commissions and vacation	1,196	785
Accrued sales and other taxes	869	904
Distributor rights liability, current	0	85
Accrued professional fees and other accrued liabilities	486	477
Total other accrued liabilities	$ 2,697	$ 2,360

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Other Accrued Liabilities, Accrued Warranty Costs (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 178	$ 115
Additions charged to warranty expense	91	161
Expiring warranties/claimed satisfied	(19)	(98)
Balance at end of period	$ 250	$ 178
Minimum [Member]
Accrued warranty costs [Abstract]
Standard warranty period	1 year
Offered warranty period	3 years
Maximum [Member]
Accrued warranty costs [Abstract]
Standard warranty period	2 years
Offered warranty period	4 years

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Long-term Debt (Details) $ in Thousands				9 Months Ended
	May 29, 2018 USD ($)	Jan. 29, 2016 USD ($)	Dec. 30, 2015 USD ($)	Sep. 30, 2018 USD ($) Tranche	Dec. 31, 2017 USD ($)
Long-term Debt [Abstract]
Term note, net of debt discount and deferred financing cost				$ 7,362	$ 10,240
Less: current portion				0	(2,387)
Long-term debt				7,362	7,853
Term-Note Credit Facility [Member]
Long-term Debt [Abstract]
Unamortized discount on the long term debt				117	160
Deferred financing costs				92	$ 171
Maturities of Long-term Debt [Abstract]
Remaining in 2018				0
2019				252
2020				3,029
2021				3,029
2022				1,261
Total long-term debt				7,571
MidCap Financial Trust [Member] | Term-Note Credit Facility [Member]
Long-term Debt [Abstract]
Maximum borrowing capacity under the agreement				$ 12,000
Number of tranches | Tranche				2
Maturity date				Dec. 01, 2020
Credit facility amount outstanding	$ 10,600
Period without debt principal payments due				18 months
MidCap Financial Trust [Member] | Term-Note Credit Facility [Member] | Maximum [Member]
Long-term Debt [Abstract]
Percentage of change in cash flows, due to debt modifications				10.00%
MidCap Financial Trust [Member] | Term-Note Credit Facility [Member] | LIBOR [Member]
Long-term Debt [Abstract]
Debt instrument term of variable rate				1 month
Debt instrument variable rate				7.25%
MidCap Financial Trust [Member] | Term-Note Credit Facility [Member] | First Tranche [Member]
Long-term Debt [Abstract]
Proceeds from credit facility			$ 10,500
Repayment of debt	$ (3,000)		$ (10,000)
MidCap Financial Trust [Member] | Term-Note Credit Facility [Member] | Second Tranche [Member]
Long-term Debt [Abstract]
Proceeds from credit facility		$ 1,500

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Convertible Debentures (Details) $ / shares in Units, $ in Thousands				3 Months Ended		9 Months Ended
	Sep. 14, 2017 shares	Jun. 06, 2017 USD ($) shares $ / shares	Jul. 21, 2014 USD ($) shares $ / shares	Sep. 30, 2018 USD ($) $ / shares	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) shares $ / shares	Sep. 30, 2017 USD ($) shares	Dec. 31, 2017 USD ($) $ / shares	Sep. 13, 2017 USD ($)
Interest and Debt Expense [Abstract]
Common stock, par value (in dollars per share) | $ / shares				$ 0.001		$ 0.001		$ 0.001
Change in fair value of warrant liability				$ 79	$ (81)	$ 101	$ (77)
Debentures converted in shares of common stock, value						0	262
Loss on extinguishment of debentures				$ 0	(11,799)	$ 0	(11,799)
Convertible debt					0		0	$ 0
Interest expense related to convertible debenture					$ 961		3,116
Series C Convertible Preferred Stock [Member]
Interest and Debt Expense [Abstract]
Aggregate principal amount of debt									$ 40,465
Preferred stock, par value (in dollars per share) | $ / shares				$ 0.10		$ 0.10		$ 0.10
Senior Secured 2.25% Convertible Debentures [Member]
Interest and Debt Expense [Abstract]
Aggregate principal amount of debt				$ 32,500		$ 32,500
Number of shares debt convertible (in shares) | shares						8,666,668
Senior secured convertible debentures conversion price (in dollars per share) | $ / shares				$ 3.75		$ 3.75
Interest rate				2.25%		2.25%
Maturity period						5 years
Debt instrument, convertible, beneficial conversion feature						$ 27,300
Maturity date						Jun. 30, 2021
Senior Secured 2.25% Convertible Debentures [Member] | Minimum [Member]
Interest and Debt Expense [Abstract]
Senior secured convertible debentures conversion price (in dollars per share) | $ / shares				$ 3.75		$ 3.75
Senior Secured 2.25% Convertible Debentures [Member] | Maximum [Member]
Interest and Debt Expense [Abstract]
Senior secured convertible debentures conversion price (in dollars per share) | $ / shares				$ 6.90		$ 6.90
Senior Secured 4% Convertible Debentures [Member]
Interest and Debt Expense [Abstract]
Aggregate principal amount of debt			$ 15,000	$ 15,000		$ 15,000
Number of shares debt convertible (in shares) | shares			1,169,595
Senior secured convertible debentures conversion price (in dollars per share) | $ / shares			$ 12.825
Interest rate		4.00%		4.00%		4.00%
Maturity period						5 years
Debt instrument, convertible, beneficial conversion feature			$ 4,565
Fair value of warrants			5,296
Change in fair value of warrant liability			491
Debt instrument initial carrying amount			4,647
Debt instrument, unamortized discount			$ 10,353
Debentures converted in shares of common stock, value							$ 262
Debt conversion, converted instrument, issued (in shares) | shares							70,000
Interest expense on debt							$ 197
Maturity date						Jul. 30, 2021
Senior Secured 4% Convertible Debentures [Member] | Series A Warrants [Member]
Interest and Debt Expense [Abstract]
Number of warrants to purchase common stock (in shares) | shares			1,239,769
Common stock, par value (in dollars per share) | $ / shares			$ 0.001
Exercise price of warrants (in dollars per share) | $ / shares			$ 12.25
Warrants expiration date						Jul. 31, 2019
Senior Secured 2.25% Convertible Debentures and Senior Secured 4% Convertible Debentures [Member]
Interest and Debt Expense [Abstract]
Debt instrument, interest payment		$ 4,000
Deferral period of interest payments						4 years
Senior Secured 2.25% Convertible Debentures and Senior Secured 4% Convertible Debentures [Member] | Series C Convertible Preferred Stock [Member]
Interest and Debt Expense [Abstract]
Number of shares debt convertible (in shares) | shares		15,049,000
Senior secured convertible debentures conversion price (in dollars per share) | $ / shares		$ 2.69
Debt conversion, converted instrument, issued (in shares) | shares	40,482
Preferred stock, par value (in dollars per share) | $ / shares		$ 1,000
Each share of preferred stock to common stock (in shares) | shares		372
Senior Secured 2.25% Convertible Debentures and Senior Secured 4% Convertible Debentures [Member] | Series C Convertible Preferred Stock [Member] | Maximum [Member]
Interest and Debt Expense [Abstract]
Beneficial ownership percentage		9.99%

XML

Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Warrants and Rights [Abstract]
Change in fair value of warrant liability	$ 79	$ (81)	$ 101	$ (77)
Warrant [Member]
Warrants and Rights [Abstract]
Number of shares underlying the warrants (in shares)	403,090		403,090
Exercise price (in dollars per share)	$ 3.75		$ 3.75
Fair value of derivative liability	$ 104		$ 104		$ 3
Change in fair value of warrant liability	$ 79	$ (81)	$ 101	$ 77

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Warrants, Outstanding Common Stock Warrants (Details)	9 Months Ended
	Sep. 30, 2018 $ / shares shares
Warrants and Rights [Abstract]
Total Warrants (in shares) | shares	2,392,760
Expiration Date, April 30, 2019 [Member]
Warrants and Rights [Abstract]
Issue Date	Oct. 31, 2013	[1]
Expiration Date	Apr. 30, 2019	[1]
Total Warrants (in shares) | shares	137,143	[1]
Exercise price (in dollars per share) | $ / shares	$ 3.75	[1]
Expiration Date, February 5, 2019 [Member]
Warrants and Rights [Abstract]
Issue Date	Feb. 05, 2014	[1]
Expiration Date	Feb. 05, 2019	[1]
Total Warrants (in shares) | shares	265,947	[1]
Exercise price (in dollars per share) | $ / shares	$ 3.75	[1]
Expiration Date, July 24, 2019 [Member]
Warrants and Rights [Abstract]
Issue Date	Jul. 24, 2014
Expiration Date	Jul. 24, 2019
Total Warrants (in shares) | shares	1,239,769
Expiration Date, July 24, 2019 [Member] | Minimum [Member]
Warrants and Rights [Abstract]
Exercise price (in dollars per share) | $ / shares	$ 3.75
Expiration Date, July 24, 2019 [Member] | Maximum [Member]
Warrants and Rights [Abstract]
Exercise price (in dollars per share) | $ / shares	$ 12.25
Expiration Date, June 22, 2020 [Member]
Warrants and Rights [Abstract]
Issue Date	Jun. 22, 2015
Expiration Date	Jun. 22, 2020
Total Warrants (in shares) | shares	600,000
Exercise price (in dollars per share) | $ / shares	$ 3.75
Expiration Date, December 30, 2020 [Member]
Warrants and Rights [Abstract]
Issue Date	Dec. 30, 2015
Expiration Date	Dec. 30, 2020
Total Warrants (in shares) | shares	130,089
Exercise price (in dollars per share) | $ / shares	$ 5.65
Expiration Date, January 29, 2021 [Member]
Warrants and Rights [Abstract]
Issue Date	Jan. 29, 2016
Expiration Date	Jan. 29, 2021
Total Warrants (in shares) | shares	19,812
Exercise price (in dollars per share) | $ / shares	$ 5.30

[1] These warrants are classified as liabilities.

XML

Stock-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended			9 Months Ended
	May 23, 2018	Mar. 30, 2018	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Additional General Disclosures [Abstract]
Stock-based compensation expense			$ 367		$ 63	$ 570	$ 136
Compensation Cost Not yet Recognized [Abstract]
Unrecognized compensation expense			$ 2,854			$ 2,854
Unrecognized compensation expense, weighted average period						1 year 4 months 13 days
Stock Options [Member]
Number of Stock Options [Abstract]
Options outstanding (in shares)			4,342,765			4,342,765
Weighted average exercise price (in dollars per share)			$ 2.02			$ 2.02
Vested (in shares)			785,461			785,461
Exercisable (in shares)			785,461			785,461
Number of shares available for issuance (in shares)			1,134,521			1,134,521
Additional General Disclosures [Abstract]
Term of vesting						3 years
Expiration period						10 years
Stock Options [Member] | March 30, 2018 [Member] | Interim Chief Executive Officer [Member]
Number of Stock Options [Abstract]
Granted (in shares)		1,557,628
Strike price (in dollars per share)		$ 1.12
Additional General Disclosures [Abstract]
Aggregate fair value of shares issued		$ 950
Stock Options [Member] | May 23, 2018 [Member] | Interim Chief Executive Officer [Member]
Number of Stock Options [Abstract]
Granted (in shares)	1,413,249
Strike price (in dollars per share)	$ 1.66
Additional General Disclosures [Abstract]
Aggregate fair value of shares issued	$ 1,237
Stock Options [Member] | May 29, 2018 [Member] | Management [Member]
Number of Stock Options [Abstract]
Granted (in shares)				800,000
Additional General Disclosures [Abstract]
Aggregate fair value of shares issued				$ 801
Stock Options [Member] | May 29, 2018 [Member] | Management [Member] | Minimum [Member]
Number of Stock Options [Abstract]
Strike price (in dollars per share)				$ 1.66
Stock Options [Member] | May 29, 2018 [Member] | Management [Member] | Maximum [Member]
Number of Stock Options [Abstract]
Strike price (in dollars per share)				$ 1.93
Restricted Stock Units [Member] | June 6, 2018 [Member] | New Members of the Board of Directors [Member]
Additional General Disclosures [Abstract]
Term of vesting						12 months
Expiration period						10 years
Restricted Stock Units [Abstract]
Granted (in shares)						140,097
Strike price (in dollars per share)						$ 2.07
Aggregate grant date fair value						$ 290

XML

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2017
Income Taxes [Abstract]
Income tax expense (benefit) change in deferred tax liability related to goodwill	$ (80)	$ 38	$ 181

XML

Business Segments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) Segment	Sep. 30, 2017 USD ($)
Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments [Abstract]
Number of operating segments | Segment			2
Results of Operations from Business Segments [Abstract]
Revenues	$ 7,892	$ 7,285	$ 21,892	$ 22,852
Cost of revenues	3,049	3,276	9,842	9,182
Gross profit	$ 4,843	$ 4,009	$ 12,050	$ 13,670
Gross profit %	61.40%	55.00%	55.00%	59.80%
Allocated operating expenses [Abstract]
Engineering and product development	$ 224	$ 411	$ 831	$ 1,309
Selling and marketing	2,487	2,492	7,737	8,312
Unallocated operating expenses	2,184	1,678	6,319	4,999
Total operating expenses	4,895	4,581	14,887	14,620
Operating loss before other expense, net	(52)	(572)	(2,837)	(950)
Interest expense, net	(239)	(1,343)	(930)	(4,264)
Change in fair value of warranty liability	(79)	81	(101)	77
Loss on extinguishment of debentures	0	(11,799)	0	(11,799)
Other income (expense), net			0	6
Loss before income taxes	(370)	(13,633)	(3,868)	(16,930)
Dermatology Recurring Procedures [Member]
Results of Operations from Business Segments [Abstract]
Revenues	5,556	5,525	15,221	17,051
Dermatology Procedures Equipment [Member]
Results of Operations from Business Segments [Abstract]
Revenues	2,366	1,760	6,671	5,801
Operating Segments [Member] | Dermatology Recurring Procedures [Member]
Results of Operations from Business Segments [Abstract]
Revenues	5,556	5,525	15,221	17,051
Cost of revenues	1,757	2,084	5,587	5,969
Gross profit	$ 3,799	$ 3,441	$ 9,634	$ 11,082
Gross profit %	68.40%	62.30%	63.30%	65.00%
Allocated operating expenses [Abstract]
Engineering and product development	$ 178	$ 348	$ 663	$ 1,104
Selling and marketing	2,276	2,043	6,663	7,145
Unallocated operating expenses	0	0	0	0
Total operating expenses	2,454	2,391	7,326	8,249
Operating loss before other expense, net	1,345	1,050	2,308	2,833
Interest expense, net	0	0	0	0
Change in fair value of warranty liability	0	0	0	0
Loss on extinguishment of debentures		0		0
Other income (expense), net				0
Loss before income taxes	1,345	1,050	2,308	2,833
Operating Segments [Member] | Dermatology Procedures Equipment [Member]
Results of Operations from Business Segments [Abstract]
Revenues	2,336	1,751	6,671	5,784
Cost of revenues	1,292	967	4,255	2,988
Gross profit	$ 1,044	$ 784	$ 2,416	$ 2,796
Gross profit %	44.70%	44.80%	36.20%	48.30%
Allocated operating expenses [Abstract]
Engineering and product development	$ 46	$ 63	$ 168	$ 204
Selling and marketing	211	449	1,074	1,167
Unallocated operating expenses	0	0	0	0
Total operating expenses	257	512	1,242	1,371
Operating loss before other expense, net	787	272	1,174	1,425
Interest expense, net	0	0	0	0
Change in fair value of warranty liability	0	0	0	0
Loss on extinguishment of debentures		0		0
Other income (expense), net				0
Loss before income taxes	$ 787	272	$ 1,174	1,425
Operating Segments [Member] | Dermatology Imaging [Member]
Results of Operations from Business Segments [Abstract]
Revenues		9		17
Cost of revenues		225		225
Gross profit		$ (216)		$ (208)
Gross profit %		(2400.00%)		(1223.50%)
Allocated operating expenses [Abstract]
Engineering and product development		$ 0		$ 1
Selling and marketing		0		0
Unallocated operating expenses		0		0
Total operating expenses		0		1
Operating loss before other expense, net		(216)		(209)
Interest expense, net		0		0
Change in fair value of warranty liability		0		0
Loss on extinguishment of debentures		0		0
Other income (expense), net				0
Loss before income taxes		$ (216)		$ (209)

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Significant Customer Concentration (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Concentration Risk Percentage [Abstract]
Revenues	$ 7,892	$ 7,285	$ 21,892	$ 22,852
Revenue [Member] | Customer Concentration Risk [Member]
Concentration Risk Percentage [Abstract]
Revenues	$ 2,077	$ 1,148	$ 5,379	$ 3,861
Concentration risk percentage	26.00%	15.30%	24.00%	16.90%
Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk Percentage [Abstract]
Accounts receivable	$ 356	$ 418	$ 356	$ 418
Concentration risk percentage			13.00%	13.10%

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Related Parties (Details) $ / shares in Units, $ in Thousands							1 Months Ended	9 Months Ended
	May 23, 2018 shares	Mar. 30, 2018 USD ($) $ / shares shares	Sep. 14, 2017 shares	Jun. 06, 2017 shares $ / shares	Jun. 22, 2015 USD ($) shares $ / shares	Jul. 21, 2014 USD ($) shares $ / shares	Jul. 31, 2018 shares	Sep. 30, 2018 USD ($) shares Director $ / shares	Sep. 30, 2017 USD ($) shares	Sep. 13, 2017 USD ($)
Related Party Transaction [Abstract]
Sale of common stock, net of expenses | $								$ 14,664
Sale of common stock, net of expenses (in shares)	15,740,741						153,004
Number of directors | Director								2
Related party expense | $								$ 13
Series C Convertible Preferred Stock [Member]
Related Party Transaction [Abstract]
Aggregate principal amount of debt | $										$ 40,465
Senior Secured 2.25% Convertible Debentures [Member]
Related Party Transaction [Abstract]
Aggregate principal amount of debt | $								$ 32,500
Number of shares debt convertible (in shares)								8,666,668
Initial conversion price (in dollars per share) | $ / shares								$ 3.75
Interest rate								2.25%
Maturity period								5 years
Maturity date								Jun. 30, 2021
Senior Secured 4% Convertible Debentures [Member]
Related Party Transaction [Abstract]
Aggregate principal amount of debt | $						$ 15,000		$ 15,000
Number of shares debt convertible (in shares)						1,169,595
Initial conversion price (in dollars per share) | $ / shares						$ 12.825
Interest rate				4.00%				4.00%
Maturity period								5 years
Maturity date								Jul. 30, 2021
Debt conversion, converted instrument, issued (in shares)									70,000
Senior Secured 2.25% Convertible Debentures and Senior Secured 4% Convertible Debentures [Member] | Series C Convertible Preferred Stock [Member]
Related Party Transaction [Abstract]
Number of shares debt convertible (in shares)				15,049,000
Initial conversion price (in dollars per share) | $ / shares				$ 2.69
Debt conversion, converted instrument, issued (in shares)			40,482
Sabby Management LLC and Broadfin LLC [Member]
Related Party Transaction [Abstract]
Number of shares underlying warrants (in shares)					600,000
Exercise price of warrants (in dollars per share) | $ / shares					$ 3.75
Sabby Management LLC and Broadfin LLC [Member] | Senior Secured 2.25% Convertible Debentures [Member]
Related Party Transaction [Abstract]
Exercise price of warrants (in dollars per share) | $ / shares					$ 3.75
Aggregate principal amount of debt | $					$ 32,500
Number of shares debt convertible (in shares)					8,666,668
Initial conversion price (in dollars per share) | $ / shares					$ 3.75
Interest rate					2.25%
Maturity period								5 years
Maturity date								Jun. 30, 2021
Two Board Directors [Member]
Related Party Transaction [Abstract]
Monthly retainer fee | $									$ 10
Broadfin Capital and Sabby Management Stock Purchase Agreements [Member] | Broadfin Capital [Member]
Related Party Transaction [Abstract]
Sale of common stock, net of expenses | $		$ 1,000
Sale of common stock, net of expenses (in shares)		925,926
Share price (in dollars per share) | $ / shares		$ 1.08
Broadfin Capital and Sabby Management Stock Purchase Agreements [Member] | Sabby Management LLC and Broadfin LLC [Member]
Related Party Transaction [Abstract]
Sale of common stock, net of expenses | $		$ 1,000
Sale of common stock, net of expenses (in shares)		925,926
Share price (in dollars per share) | $ / shares		$ 1.08
Subscription Agreement [Member] | Dr. Dolev Rafaeli [Member]
Related Party Transaction [Abstract]
Sale of common stock, net of expenses | $		$ 1,000
Sale of common stock, net of expenses (in shares)		925,926
Share price (in dollars per share) | $ / shares		$ 1.08

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Commitments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) ft²	Sep. 30, 2017 USD ($)
Sublease [Abstract]
Rent expense	$ 110	$ 111	$ 332	$ 338
Future Annual Minimum Payments under Operating Leases [Abstract]
2018	92		92
2019	352		352
2020	213		213
2021	220		220
2022	227		227
Thereafter	$ 17		$ 17
Bormioli [Member]
Sublease [Abstract]
Area of office building space | ft²			8,513
Optional term extension of lease			2 years