How will the $2.42 million direct offering affect STRATA’s existing share dilution and earnings per share?

The $2.42 million registered direct offering will add 1,097,547 new common shares to STRATA’s capital base. Assuming the company’s current share count is roughly 15 million (the most recent filing shows ~14.9 M outstanding), the issuance represents an ~7 % increase in the float. In pure arithmetic terms, each existing shareholder’s ownership stake will be diluted by that same percentage, and earnings per share will be compressed by roughly the same magnitude unless net income rises proportionally. For example, if STRATA reported a net profit of $5 million for the most recent quarter, the additional shares would reduce quarterly EPS from about $0.34 to $0.32 – a modest but noticeable hit.

From a fundamentals perspective, the modest size of the raise (≈$2.4 M) relative to the company’s market‑cap (~$45 M) means the cash infusion is unlikely to dramatically shift the balance sheet, but it can be material for a biotech that needs funding for product launch or clinical work. If management deploys the proceeds efficiently—e.g., accelerating sales of its dermatologic devices or advancing pipeline candidates—revenues could grow enough to offset the dilution impact, potentially improving EPS in the medium term. Traders should therefore weigh the near‑term dilution drag against the upside upside of a better‑funded balance sheet. In practice, short‑term price pressure is typical after a direct offering (as new shares hit the market), so a modest pull‑back or sideways trade is expected. Long‑term investors may look for a buy‑the‑dip if the company’s pipeline milestones are near, while risk‑averse players might stay on the sidelines until the cash is deployed and EPS traction becomes evident.