EX-12.(A)(1)(G) 2 exha1g.htm SECOND AMENDMENT TO THE OFFER TO EXCHANGE exha1g.htm


EXHIBIT (a)(1)(G)

PHOTOMEDEX, INC.
 
SECOND 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, as amended by the Amendment to Offer to Exchange Outstanding Options for Common Stock dated December 14, 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 second paragraph of Section 18 of the Offer to Exchange is hereby replaced in its entirety with the following:

If at any time we become aware of any jurisdiction within the United States where the making of the Offer violates the law, we will make a good faith effort to comply with the law.  If we cannot comply with the law, the Offer will not be made to, nor will exchanges be accepted from or on behalf of, the option holders residing in that jurisdiction within the United States.

2.  
Annex A to the Offer to Exchange is hereby amended and supplemented by adding the following:
 
Disclosure of the Company’s ratio of earnings to fixed charges, as follows:
 
   
Year ended
    
3 mos ended
    
6 mos ended
    
9 mos ended
  
   
12/31/09
    
12/31/08
    
3/31/10
    
3/31/09
    
6/30/10
    
6/30/09
    
9/30/10
    
9/30/09
  
                                                 
Ratio of earnings to fixed charges
   
-1.13
      
-6.28
      
0.00
      
-0.03
      
-0.08
      
-0.51
      
-0.27
      
-0.72
  
                                                                 
Dollar deficiency
  
$
10,521
    
$
11,128
    
$
3,916
    
$
3,512
    
$
5,076
    
$
6,222
    
$
6,911
    
$
8,233
  


Second Amendment to Offer to Exchange dated December 17, 2010
 
 
 
 
 
 
 

REVISED 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 revised Annex A.  The tables set forth:

1.           Summarized annual and quarterly financial information;
 
2.           Loss per common share from continuing operations (basic and diluted);
 
3.           Net loss per common share (basic and diluted);
 
4.           Ratio of earnings to fixed charges; and 
 
5.   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  
Ratio of earnings to fixed charges
     -1.13       -6.28  
Dollar deficiency
   $ 10,521     $ 11,128  
 
 
 
 
 
 
 
 

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 loss per share
     2,238,456       1,500,835       2,397,620       1,501,236       2,523,838       1,502,683  
Ratio of earnings to fixed charges
     0.00       -0.03       -0.08       -0.51       -0.27       -0.72  
Dollar deficiency
   $ 3,916     $ 3,512     $ 5,076     $ 6,222     $ 6,911     $ 8,233