STRATA Skin Sciences, Inc. (NASDAQ: SSKN) filed a Form 25 with the SEC on February 19, 2026 to deregister its common stock and initiate delisting from the Nasdaq Capital Market. Trading of the company’s shares was suspended at the opening of business on that day, effectively removing the stock from public exchange trading.
The delisting follows a Nasdaq deficiency notice that the company failed to meet the exchange’s minimum stockholders’ equity requirement of $2.5 million. Despite a prior extension until February 16, 2026, STRATA was unable to raise sufficient capital on terms that would avoid significant dilution. The company’s balance sheet reflects a high debt‑to‑equity ratio of 12.41 and an Altman Z‑Score of –11.59, indicating severe liquidity pressure and a high probability of bankruptcy within two years.
In a statement, CEO Dr. Dolev Rafaeli emphasized that the decision was not driven by financial instability but by a strategic choice to eliminate the cost and administrative burden of being a Nasdaq‑listed, Exchange Act reporting company. He noted that the company finished the 2025 fiscal year with $8 million in cash and that the move would allow management to concentrate on executing its operating plan and reducing cash burn.
The company’s financial profile shows that, while cash reserves are modest, the debt load and negative operating and net margins—–18.84 % and –35.82 % respectively—highlight ongoing profitability challenges. The high leverage and declining margins underscore the need for a leaner operating model, which the “going dark” strategy aims to support by cutting reporting costs and freeing management bandwidth.
By terminating its SEC reporting obligations, STRATA will reduce compliance expenses and administrative overhead, but the delisting will also limit liquidity for shareholders and remove the transparency that public reporting provides. The company plans to file a Form 15 around March 2, 2026 to formally terminate its registration and fully “go dark.”
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