EX-12.(A)(1)(D) 2 ex-a1d.htm AMEND OFFER TO EXCHANGE OUTSTANDING OPTIONS FOR COMMON STOCK ex-a1d.htm


EXHIBIT (a)(1)(D)



 
PHOTOMEDEX, INC.
 
AMENDMENT TO
OFFER TO EXCHANGE OUTSTANDING OPTIONS FOR COMMON STOCK

THE OFFER EXPIRES AT 12:00 P.M., U.S. PACIFIC STANDARD TIME (“PST”),
ON DECEMBER 31, 2010, UNLESS WE EXTEND THE OFFER

Reference is made to that certain Offer to Exchange Outstanding Options for Common Stock dated December 1, 2010 (the “Offer to Exchange”) pursuant to which PhotoMedex, Inc. (the “Company” or “we”) is offering its employees, directors and other third-party service-providers the opportunity to exchange their outstanding stock options with exercise prices greater than $10.00 (the “Eligible Options” or “Eligible Option Grants”) for shares of our Common Stock (the “Common Stock”).  The Company hereby amends the Offer to Exchange as follows:

1.  
The definition of “Expiration Date” appearing in the Glossary of the Offer to Exchange is hereby replaced in its entirety with the following:

Expiration Date means the date that the Offer will expire, which is currently set to be at 12:00 p.m., PST, on December 31, 2010, unless we extend the Offer to a later time and/or date.

2.  
All references in the Offer to Exchange referring to December 30, 2010 as the date on which the Expiration Date is currently set are hereby replaced by reference to December 31, 2010.

3.  
All references in the Offer to Exchange referring to 5:00 p.m., PST as the time on the Expiration Date at which the Offer will expire are hereby replaced by reference to 12:00 p.m., PST.

4.  
Section 6 of the Offer to Exchange is hereby amended such that the sentence “Our failure to exercise any of these rights is not a waiver of any of these rights” is hereby deleted from the second to last paragraph of Section 6.  Giving effect to such deletion, such paragraph hereby is amended to state in its entirety:

The waiver of any of these rights with respect to particular facts and circumstances is not a waiver with respect to any other facts and circumstances. Any determination we make concerning the events described in this Section 6 will be final and binding upon everyone.

5.  
Annex A to this Amendment to the Offer to Exchange is hereby incorporated into and made a part of the Offer to Exchange.

Amendment to Offer to Exchange dated December 14, 2010



 
 
 

 
ANNEX A
SELECTED SUMMARIZED FINANCIAL DATA

Annex A provides you with selected summarized financial data about the Company that may be useful to you in deciding whether and how to participate in the Offer to Exchange.  The tables of financial data are attached to, and are an integral part of, this Annex A.  The tables set forth:

1.           Summarized annual and quarterly financial information;
 
2.           Loss per common share from continuing operations (basic and diluted, if applicable);
 
3.           Net loss per common share (basic and diluted, if applicable); and
 
4.           Book value per share as of the date of the most recent balance sheet, that book value is $7.12 as of September 30, 2010.
 


Audited Balance Sheet Data
(At Period End)(in '000s)
 
   
31-Dec 2009
    
31-Dec 2008
 
   
 
        
Current assets
   $ 13,542     $ 16,455  
Non-current assets
     39,626       30,259  
     Total assets
   $ 53,168     $ 46,714  
Current liabilities
   $ 11,327     $ 13,047  
Non-current liabilities
     18,919       3,985  
     Total liabilities
   $ 30,246     $ 17,032  
     Stockholders' equity
   $ 22,922     $ 29,682  


 
Audited Statement of Operations Data
(in '000s except shares data):

   
31-Dec 2009
    
31-Dec 2008
  
                 
Revenues
   $ 32,688     $ 34,770  
Cost of revenues
     17,426       16,995  
Gross profit
     15,262       17,775  
Selling, general and administrative
     23,083       26,797  
Engineering and product development
     1,138       1,073  
Loss from continuing operations before
                
     interest and other income, net
     -8,959       -10,095  
Interest income
     8       156  
Interest expense
     -2,379       -1,189  
Change in fair value of warrant liability
     809       0  
Loss from continuing operations
     -10,521       -11,128  
Income from discontinued operations
     0       286  
Loss on sale of discontinued operations
     0       -449  
Net loss
   $ -10,521     $ -11,291  
                 
Loss per share, basic and diluted
                
     From continuing operations
   $ -6.42     $ -7.41  
     From discontinued operations
   $ 0.00     $ -0.11  
Net loss per share, basic and diluted           $ -6.42      $ -7.52   
Shares used in computing basic and diluted
                
     loss per share
     1,640,006       1,500,767  


 
 
 

Unaudited Balance Sheet Data
(At Period End)
 
   
31-Mar 2010
          
30-Jun 2010
         
30-Sep 2010
        
Current assets
   $ 12,257             $ 14,228             $ 14,021          
Non-current assets
     39,686               38,409               36,973          
     Total assets
   $ 51,943             $ 52,637             $ 50,994          
Current liabilities
   $ 9,835             $ 9,864             $ 11,184          
Non-current liabilities
     22,148               21,265               20,058          
     Total liabilities
   $ 31,983             $ 31,129             $ 31,242          
     Stockholders' equity
   $ 19,960             $ 21,508             $ 19,752          
                                                 
     Book value per share
   $ 8.92             $ 7.76             $ 7.12          
     Shares outstanding at end of period
     2,238,637               2,772,637               2,772,637          

 
 
Unaudited Statement of Operations Data
(in '000s except shares data):

   
3 mos ended
    
6 mos ended
    
9 mos ended
  
   
3/31/10
    
3/31/09
    
6/30/10
    
6/30/09
    
9/30/10
    
9/30/09
  
                                     
Revenues
   $ 6,687     $ 7,498     $ 14,698     $ 15,812     $ 24,283     $ 24,409  
Cost of revenues
     3,594       3,797       7,680       7,704       13,310       12,585  
Gross profit
     3,093       3,701       7,018       8,108       10,973       11,824  
Selling, general and administrative
     5,085       6,700       9,838       13,631       14,458       18,673  
Engineering and product development
     339       202       619       538       891       850  
Loss from continuing operations before
                                                
     interest and other income, net
     -2,331       -3,201       -3,439       -6,061       -4,376       -7,699  
Interest expense, net of interest income
     -654       -403       -1,539       -1,084       -2,402       -1,739  
Change in fair value of warrant liability
     -931       92       -98       923       -133       1,205  
Net loss
   $ -3,916     $ -3,512     $ -5,076     $ -6,222     $ -6,911     $ -8,233  
                                                 
Net loss per share from continuing operations, basic and diluted
   $ -1.75     $ -2.34     $ -2.12     $ -4.14     $ -2.74     $ -5.48  
Net loss per share, basic and diluted
   $ -1.75      $ -2.34     $ -2.12     $ -4.14     $ -2.74     $ -5.48  
Shares used in computing basic and diluted net loss per share
     2,238,456       1,500,835       2,397,620       1,501,236       2,523,838       1,502,683