SOLTA MEDICAL INC

CIK:0001171298|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]
Net revenue	$ 33,540	$ 35,028	$ 111,260	$ 104,744
Cost of revenue	14,491	13,813	44,430	39,738
Gross margin	19,049	21,215	66,830	65,006
Operating expenses
Sales and marketing	14,807	12,403	45,870	40,022
Research and development	4,701	4,849	15,478	15,167
General and administrative	6,246	4,557	19,651	13,832
Remeasurement of contingent consideration liability	(8,700)	1,900	(21,300)	32,600
Total operating expenses	17,054	23,709	59,699	101,621
Income (loss) from operations	1,995	(2,494)	7,131	(36,615)
Interest income	21	3	48	8
Interest expense	(877)	(377)	(2,372)	(1,078)
Other income (expense), net	(144)	46	(389)	(101)
Income (loss) before income taxes	995	(2,822)	4,418	(37,786)
Income tax provision	351	56	2,546	177
Net income (loss)	$ 644	$ (2,878)	$ 1,872	$ (37,963)
Net income (loss) per share:
Basic	$ 0.01	$ (0.04)	$ 0.02	$ (0.60)
Diluted	$ 0.01	$ (0.04)	$ 0.02	$ (0.60)
Weighted average shares outstanding used in calculating net income (loss) per common share:
Basic	79,791,789	65,947,361	77,171,829	63,017,220
Diluted	81,025,627	65,947,361	78,337,342	63,017,220

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities
Net income (loss)	$ 1,872	$ (37,963)
Adjustments to reconcile net loss to net cash provided (used) in operating activities:
Depreciation and amortization	9,755	8,012
Loss on disposal of property, plant and equipment		33
Stock-based compensation	3,034	3,553
Contingent consideration fair value adjustment	(21,300)	32,600
Tax benefit from stock option exercises		2
Loan warrant discount amortization	322	104
Final payment accrual on debt financings	782	399
Provision for doubtful accounts	451	520
Write-down of excess and obsolete inventory	405	591
Change in assets and liabilities:
Accounts receivable	2,117	(3,903)
Inventories	(3,351)	(845)
Prepaid expenses and other current assets	1,310	770
Other assets	73	(25)
Accounts payable	(1,318)	450
Accrued and other liabilities	(816)	(588)
Contingent consideration liability payment	(9,367)
Deferred revenue	(80)	(823)
Customer deposits	430	239
Deferred rent	16	(77)
Net cash provided by (used in) operating activities	(15,665)	3,049
Cash flows from investing activities
Acquisition of property and equipment	(1,451)	(2,115)
Payments for acquisitions, net of cash acquired	(4,243)
Net cash used in investing activities	(5,694)	(2,115)
Cash flows from financing activities
Repayment of loan agreements	(35,082)	(9,555)
Contingent consideration liability payment	(6,294)
Cash settlement of vested restricted stock units	(937)	(469)
Proceeds from equity financing		16,279
Payment of equity financing costs		(171)
Payment of debt financing fees	(2,440)
Proceeds from exercise of stock options	373	273
Proceeds from employee stock purchase plan	316	339
Proceeds from loan agreement borrowings	35,000	13,500
Net cash provided by (used in) financing activities	(9,064)	20,196
Net increase (decrease) in cash and cash equivalents	(30,423)	21,130
Cash and cash equivalents at beginning of period	38,097	17,417
Cash and cash equivalents at end of period	7,674	38,547
Supplemental disclosure of cash flow information
Cash paid for interest	1,061	576
Cash paid for taxes	157	51
Accounts payable and accrued liabilities related to property and equipment purchases	366	126
Issuance of common stock for vested restricted stock units	3,040	1,860
Issuance of warrants in connection with debt financing		$ 700

Condensed Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 7,674	$ 38,097
Accounts receivable, net	20,331	20,570
Inventories	22,414	16,611
Prepaid expenses and other current assets	5,767	8,476
Total current assets	56,186	83,754
Property and equipment, net	7,215	6,401
Purchased intangible assets, net	56,044	42,428
Goodwill	103,981	96,620
Other assets	948	520
Total assets	224,374	229,723
Liabilities:
Accounts payable	7,929	7,283
Accrued liabilities	13,656	17,343
Current portion of contingent consideration liability	7,839	21,400
Current portion of deferred revenue	3,953	3,985
Short-term borrowings	694	8,345
Customer deposits	1,067	637
Total current liabilities	35,138	58,993
Deferred revenue, net of current portion	744	683
Term loan, net of current portion	25,954	18,063
Non-current tax liabilities	4,818	2,478
Contingent consideration liability	21,500	38,500
Other liabilities	253	899
Total liabilities	88,407	119,616
Contingencies (Note 7)
Stockholders' equity:
Preferred stock, $0.001 par value: 10,000,000 shares authorized, none issued and outstanding
Common stock, $0.001 par value: 100,000,000 shares authorized, 79,838,671 and 68,795,987 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively.	80	69
Additional paid-in capital	244,467	220,489
Accumulated deficit	(108,580)	(110,451)
Total stockholders' equity	135,967	110,107
Total liabilities and stockholders' equity	$ 224,374	$ 229,723