Core Viewpoint - Apyx Medical Corporation has announced a public offering of 2,762,431 shares of its common stock at a price of $3.62 per share, with the offering expected to close on or about November 19, 2025 [1][2]. Group 1: Offering Details - The offering is underwritten by Lucid Capital Markets, which is acting as the sole book-running manager [2]. - The company has granted the underwriter a 45-day option to purchase an additional 414,365 shares at the public offering price [2]. - The net proceeds from the offering will be used for working capital and general corporate purposes [3]. Group 2: Regulatory and Documentation - The offering is made pursuant to a shelf registration statement filed with the SEC, which was declared effective on December 2, 2022 [3]. - A preliminary prospectus supplement and accompanying prospectus have been filed with the SEC and are available on their website [4]. Group 3: Company Overview - Apyx Medical Corporation specializes in surgical aesthetics, offering products like Renuvion and the AYON Body Contouring System, which provide innovative solutions in cosmetic surgery [6]. - The company’s technologies, including Helium Plasma Platform Technology, are supported by over 90 clinical documents, demonstrating their effectiveness [6]. - The AYON Body Contouring System is FDA-cleared and designed to integrate multiple surgical capabilities, enhancing the treatment options available to surgeons [6].

Core Viewpoint - Apyx Medical Corporation is initiating an underwritten public offering of its common stock, subject to market conditions, with no assurance on the completion or terms of the offering [1]. Group 1: Offering Details - Lucid Capital Markets is the sole book-running manager for the offering [2]. - The offering is made under a shelf registration statement filed with the SEC on November 22, 2022, and declared effective on December 2, 2022 [2]. Group 2: Company Overview - Apyx Medical Corporation specializes in surgical aesthetics, offering products like Renuvion and the AYON Body Contouring System, which are designed to enhance surgical outcomes [5]. - The Renuvion and J-Plasma technologies provide controlled heat to tissue, supported by over 90 clinical documents [5]. - The AYON Body Contouring System is FDA-cleared and integrates multiple capabilities for comprehensive body contouring treatments [5].

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Revenue and Sales Performance - Total revenue increased by 12.1%, or approximately $1.4 million, for the three months ended September 30, 2025, compared to the same period in 2024[75]. - Surgical Aesthetics segment sales increased 19.1%, or approximately $1.8 million, for the three months ended September 30, 2025, driven by the commercial launch of AYON and increased sales of single-use handpieces[75]. - OEM segment sales decreased 17.6%, or approximately $0.4 million, for the three months ended September 30, 2025, due to lower sales volume to existing customers[75]. - Surgical Aesthetics sales increased 8.0%, or approximately $2.1 million, for the nine months ended September 30, 2025, compared to the same period in 2024[76]. - OEM segment sales decreased 31.4%, or approximately $2.3 million, for the nine months ended September 30, 2025, due to decreased sales volume to existing customers[76]. Profitability and Margins - Gross profit for the three months ended September 30, 2025, increased 19.3% to $8.3 million, with a gross margin of 64.4% compared to 60.5% for the same period in 2024[78]. - Gross profit for the nine months ended September 30, 2025, increased 3.2% to $21.0 million, with a gross margin of 62.5% compared to 60.2% in the prior year[80]. Cost Management and Expenses - The company reduced its workforce by nearly 25% in November 2024, estimating annualized future cost savings of approximately $4.3 million[69]. - The company plans to reduce annual operating expenses below $40 million in 2025 through various cost-saving measures[69]. - Research and development expenses decreased 38.7% for the nine months ended September 30, 2025, totaling $2.4 million, primarily due to lower compensation and benefits costs[82]. - Professional services expense decreased 14.4% for the nine months ended September 30, 2025, amounting to $4.6 million, driven by reductions in physician and marketing consulting expenses[84]. - Salaries and related expenses decreased 27.5% for the nine months ended September 30, 2025, totaling $9.3 million, due to lower headcount and stock-based compensation[86]. - Selling, general and administrative expenses decreased 20.3% for the nine months ended September 30, 2025, amounting to $11.2 million, primarily due to lower travel and meeting costs[89]. Cash Flow and Financial Position - At September 30, 2025, cash and cash equivalents were approximately $25.1 million, down from $31.7 million at December 31, 2024[93]. - Net cash used in operating activities for the nine months ended September 30, 2025, was approximately $5.5 million, a decrease from $15.5 million in the prior year[94]. - The company had purchase commitments totaling approximately $4.4 million, expected to be purchased within the next twelve months[101]. Compliance and Risk Management - As of September 30, 2025, the company was in compliance with the financial covenants of the Perceptive Credit Agreement, which includes revenue targets for the Surgical Aesthetics segment[98]. - The company has adjusted its accounts receivable allowance due to economic uncertainty in the capital equipment market, particularly in the aesthetic space, resulting in extended credit terms granted to customers[104]. - The company maintains a reserve for uncollectible accounts receivable, analyzing historical bad debt experience and the composition of outstanding receivables[104]. - There are no off-balance sheet arrangements currently in place[106]. - The company has not identified any changes in internal control over financial reporting that materially affect its operations[111]. - The management's disclosure controls and procedures were deemed effective as of September 30, 2025[110]. - There have been no material changes to the risk factors previously described in the Annual Report for the fiscal year ended December 31, 2024[115]. - The company has recorded liabilities for litigation contingencies when a loss is known or considered probable, requiring significant judgment[105]. - The company has not reported any unregistered sales of equity securities or defaults upon senior securities[116][117]. - The company has not disclosed any new products, technologies, market expansions, or acquisitions in the current report[108]. - There are no significant quantitative or qualitative disclosures about market risk applicable to the company[109]. Product Development - The AYON Body Contouring System™ received 510(k) clearance from the FDA on May 13, 2025, and the commercial launch commenced in September 2025[66].

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 increased by 12% to $12.9 million compared to $11.5 million in the same period last year [5][16] - Gross profit for Q3 2025 increased to $8.3 million, with a gross profit margin of 64.4%, up from 60.5% in the prior year [17][19] - Net loss attributable to stockholders decreased to $2 million, or $0.05 per share, compared to $4.7 million, or $0.14 per share in the prior year [19] - Cash used in operating activities decreased to $3.5 million for Q3 2025, down from $4.4 million in the prior year [20] Business Line Data and Key Metrics Changes - Revenue from the surgical aesthetics segment increased by 19% to $11.1 million compared to $9.3 million last year, driven by the commercial launch of the Aon body contouring system [5][16] - OEM revenue decreased by 18% to $1.8 million for Q3 2025, down from $2.2 million in the same period last year, due to reduced sales volumes to existing customers [7][17] Market Data and Key Metrics Changes - Domestic revenue increased by 20% year-over-year to $9.3 million, while international revenue decreased by 4% year-over-year to $3.5 million [17] - The company noted that the medical device industry typically experiences seasonality, with revenue trends generally lowest in the first and third quarters [17] Company Strategy and Development Direction - The company announced a rebranding of its advanced energy segment to "surgical aesthetics" to better align with its mission and the results delivered by its products [5] - The Aon body contouring system is positioned as a groundbreaking solution in the market, integrating multiple functions to enhance surgical outcomes [9][10] - The company is focusing resources on the surgical aesthetics segment, particularly the Aon launch, which is seen as the future of the company [7][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market's response to the Aon system, highlighting strong pre-sales and initial deliveries [6][14] - The company anticipates continued growth driven by the increasing adoption of GLP-1 medications, which create a demand for body contouring solutions [12][34] - Management updated revenue guidance for 2025 to a range of $50.5 million to $52.5 million, reflecting the strength of the Aon launch [21][22] Other Important Information - The company has successfully reduced operating expenses to $9.1 million for Q3 2025, down from $10.6 million in the prior year, due to cost-cutting measures [18] - Cash and cash equivalents as of September 30, 2025, were $25.1 million, down from $31.7 million as of December 31, 2024 [21] Q&A Session Summary Question: Clarification on generator sales decline - Management explained that the decline in generator sales is due to the integration of existing generators with the new Aon system, which is classified as Aon sales [25][26] Question: Gross margin impact and future expectations - Management refrained from providing specific guidance on gross margins but indicated that the surgical aesthetics business typically has the highest gross margins [27][29] Question: Expected uptake in consumables alongside capital sales - Management noted that new customers adopting Renuvion technology would drive consumable sales, while existing customers may not see significant increases [32] Question: Market demand trends and GLP-1 dynamics - Management confirmed that the market is being disrupted by GLP-1 drugs, with a significant percentage of patients being new to aesthetics, indicating a growing opportunity [34][35] Question: Pipeline growth and implementation - Management acknowledged an increase in guidance due to strong interest in Aon and confirmed that a third party is assisting with installations to meet demand [45][46] Question: International rollout plans for Aon - Management indicated that while the focus is currently on the U.S. market, there are plans to register Aon in various international markets, including Europe and Latin America [48][49]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 increased by 12% to $12.9 million compared to $11.5 million in the same period last year [5][16] - Gross profit for Q3 2025 increased to $8.3 million, with a gross profit margin of 64.4%, up from 60.5% in the prior year [17][19] - Net loss attributable to stockholders decreased to $2 million, or $0.05 per share, compared to $4.7 million, or $0.14 per share in the prior year [19] Business Line Data and Key Metrics Changes - Revenue from the Surgical Aesthetics segment increased by 19% to $11.1 million, driven by the AYON Body Contouring System launch and increased sales of single-use handpieces [5][16] - OEM revenue decreased by 18% to $1.8 million, attributed to reduced sales volumes to existing customers [7][17] Market Data and Key Metrics Changes - Domestic revenue increased by 20% year-over-year to $9.3 million, while international revenue decreased by 4% to $3.5 million [17] - The company noted that the medical device industry typically experiences seasonality, with revenue trends generally lowest in the first and third quarters [17] Company Strategy and Development Direction - The company announced the rebranding of its Advanced Energy segment to Surgical Aesthetics to better align with its mission and product offerings [5] - The focus has shifted towards the Surgical Aesthetics segment, particularly the AYON launch, which is seen as the future of the company [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market's response to AYON, highlighting strong pre-sales and initial deliveries [6][15] - The company anticipates continued growth driven by the increasing adoption of GLP-1 medications, which create a demand for body contouring solutions [12][34] Other Important Information - The company has successfully reduced operating expenses to $9.1 million for Q3 2025, down from $10.6 million in the prior year [18] - Cash used in operating activities decreased to $3.5 million for Q3 2025, compared to $4.4 million in the prior year [19][20] Summary of Q&A Session Question: Clarification on generator sales decline - Management clarified that the decline in generator sales is due to customers integrating existing generators with AYON, rather than purchasing new generators [25][26] Question: Gross margin impact and future guidance - Management refrained from providing specific guidance on gross margins but indicated that the Surgical Aesthetics business typically has the highest gross margins [27][29] Question: Expectations for consumables uptake - Management noted that the greatest driver of consumable sales will come from new customers adopting Renuvion technology [32] Question: Market demand trends and GLP-1 dynamics - Management stated that the market is being disrupted by GLP-1 drugs, with a significant percentage of patients being new to aesthetics [34][35] Question: Growth in single-use handpieces - Management indicated that growth in handpieces is driven by new doctors adopting the technology and higher attach rates for Renuvion [39] Question: Pipeline growth and installation processes - Management confirmed an increase in guidance for Surgical Aesthetics and highlighted the effective management of supply chain and installations [45][46] Question: International rollout of AYON - Management discussed plans for international registration of AYON, with a focus on Europe and other regions in the future [48][49]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 increased by 12% to $12.9 million compared to $11.5 million in the same period last year [5][14] - Gross profit for Q3 2025 increased to $8.3 million, with a gross profit margin of 64.4%, up from 60.5% in the prior year [15][17] - Net loss attributable to stockholders decreased to $2 million, or $0.05 per share, compared to $4.7 million, or $0.14 per share in the prior year [17] - Cash used in operating activities decreased to $3.5 million from $4.4 million in the prior year [17][18] Business Line Data and Key Metrics Changes - Revenue from the surgical aesthetics segment increased by 19% to $11.1 million, driven by the commercial launch of the Aon body contouring system [5][14] - OEM revenue decreased by 18% to $1.8 million, attributed to reduced sales volumes to existing customers [6][15] Market Data and Key Metrics Changes - Domestic revenue increased by 20% year-over-year to $9.3 million, while international revenue decreased by 4% year-over-year to $3.5 million [15] - The market for aesthetic procedures is expected to grow significantly due to the increasing adoption of GLP-1 medications, with over 15 million people currently on these drugs in the U.S. [11][32] Company Strategy and Development Direction - The company announced a rebranding of its advanced energy segment to "surgical aesthetics" to better align with its mission and product offerings [5] - The Aon system is positioned as a comprehensive solution for body contouring, integrating multiple functions that address market needs [8][10] - The company plans to expand the Aon system internationally, targeting markets such as Europe and Latin America [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing commercial launch of Aon, which has exceeded expectations in terms of market interest and pre-orders [12][19] - The company anticipates a strong future in the aesthetic market, particularly due to the impact of GLP-1 drugs on patient demand for body contouring solutions [11][32] Other Important Information - The company updated its 2025 revenue guidance to a range of $50.5 million to $52.5 million, reflecting strong performance in the surgical aesthetics segment [18][20] - Gross margins are expected to be approximately 61% for the year, with total operating expenses not exceeding $40 million [21] Q&A Session Summary Question: Clarification on generator sales decline - Management explained that the decline in generator sales is due to the integration of the Aon system, where existing customers can upgrade their generators instead of purchasing new ones [24] Question: Gross margin impact from Aon rollout - Management refrained from providing specific guidance on gross margins but indicated that the surgical aesthetics business typically has the highest gross margins [26] Question: Expected uptake in consumables alongside capital sales - Management noted that new customer acquisitions would drive consumable sales, while existing customers may not see significant increases [30] Question: Market environment and GLP-1 dynamics - Management highlighted that the market is being disrupted by GLP-1 drugs, with a significant percentage of patients being new to aesthetic treatments [32] Question: Growth in handpiece sales - Management indicated that growth in handpiece sales was driven by new doctor adoption, higher attach rates, and standalone uses of Renuvion technology [36] Question: Pipeline growth and implementation - Management confirmed an increase in guidance due to strong interest in Aon and mentioned that a third party is assisting with installations to meet demand [40][41] Question: International rollout of Aon - Management stated that while the focus is currently on the U.S. market, plans for international registration and rollout are in consideration for 2026 [43][44]

Revenue Performance - Total revenue for Q3 2025 increased to $12.9 million, up 12.1% from $11.5 million in Q3 2024[8] - Surgical Aesthetics revenue rose 19.1% to $11.1 million, compared to $9.3 million in the same quarter last year, with over 30% growth in the U.S.[6][8] - OEM revenue decreased by 17.6% to approximately $1.8 million, down from $2.2 million in Q3 2024[6][8] - Full year 2025 total revenue guidance increased to a range of $50.5 million to $52.5 million, up from previous guidance of $50.0 million to $52.0 million[14] - Surgical Aesthetics revenue for FY2025 is expected to be in the range of $43.0 million to $45.0 million, compared to approximately $38.6 million reported for FY2024[14] - Sales for the three months ended September 30, 2025, were $12,877 million, a 12.1% increase from $11,487 million in the same period of 2024[24] Profitability and Loss - Net loss attributable to stockholders narrowed to $2.0 million, or $0.05 per share, compared to a net loss of $4.7 million, or $0.14 per share, in Q3 2024[13] - Adjusted EBITDA loss decreased 96% to $0.1 million for Q3 2025, compared to $2.4 million for Q3 2024[13] - Gross profit for Q3 2025 increased to $8.3 million, with a gross margin of 64.4%, up from 60.5% in the prior year[9] - Gross profit for the three months ended September 30, 2025, was $8,297 million, compared to $6,954 million in 2024, reflecting a gross margin improvement[24] - The net loss attributable to stockholders for the three months ended September 30, 2025, was $1,984 million, an improvement from a net loss of $4,703 million in the same period of 2024[24] - Adjusted EBITDA for the three months ended September 30, 2025, was $(91) million, compared to $(2,449) million in Q3 2024, indicating a significant reduction in losses[29] Expenses and Cost Management - Operating expenses decreased by $1.5 million to $9.1 million in Q3 2025, compared to $10.6 million in Q3 2024[11] - Research and development expenses decreased to $801 million in Q3 2025 from $1,142 million in Q3 2024, a reduction of 29.9%[24] Balance Sheet and Cash Flow - Total current assets as of September 30, 2025, were $48,788 million, down from $56,440 million at the end of 2024[26] - Total liabilities increased to $51,285 million as of September 30, 2025, compared to $50,507 million at the end of 2024[26] - Cash and cash equivalents decreased to $25,135 million as of September 30, 2025, from $31,741 million at the end of 2024[26] - The accumulated deficit increased to $(87,823) million as of September 30, 2025, from $(77,911) million at the end of 2024[26] Product Launch - Apyx Medical initiated a full U.S. commercial launch of the AYON Body Contouring System™ in September 2025, with pre-orders exceeding expectations[6][8]

Core Insights - Apyx Medical Corporation reported a 19% increase in Surgical Aesthetics revenue for Q3 2025, driven by the successful commercialization of the AYON Body Contouring System [3][9] - The company anticipates further growth in sales following the pending FDA clearance for the AYON's label expansion to include power liposuction [4][7] - Total revenue for Q3 2025 reached $12.9 million, a 12.1% increase compared to $11.5 million in the same period last year [7][9] Financial Performance - Surgical Aesthetics revenue for Q3 2025 was $11.1 million, up from $9.3 million in Q3 2024, reflecting a 19% increase [9][10] - OEM revenue decreased by 18% to approximately $1.8 million in Q3 2025 compared to $2.2 million in Q3 2024 [7][9] - Gross profit for Q3 2025 increased to $8.3 million, with a gross margin of 64.4%, up from 60.5% in the prior year [10][12] Operating Expenses and Losses - Operating expenses decreased by $1.5 million to $9.1 million in Q3 2025 compared to $10.6 million in Q3 2024 [11] - Net loss attributable to stockholders was $2.0 million in Q3 2025, an improvement from a net loss of $4.7 million in Q3 2024 [12][24] - Adjusted EBITDA loss decreased significantly to $0.1 million for Q3 2025, compared to $2.4 million for the same period in 2024 [13][31] Future Outlook - The company raised its total revenue guidance for FY2025 to a range of $50.5 million to $52.5 million, up from the previous guidance of $50.0 million to $52.0 million [6][20] - Surgical Aesthetics revenue is expected to be between $43.0 million and $45.0 million for FY2025, compared to approximately $38.6 million reported for FY2024 [20] - The company plans to continue expanding the user base for AYON, which is expected to drive growth in single-use handpiece sales [4][6]

Core Insights - Apyx Medical Corporation is set to participate in two upcoming investor conferences, showcasing its proprietary technologies [1][2] Company Overview - Apyx Medical Corporation specializes in advanced energy technology, focusing on innovative products such as Renuvion and the AYON Body Contouring System™ [3] - Renuvion and J-Plasma technologies provide surgeons with the ability to deliver controlled heat to tissue, supported by over 90 clinical documents [3] - The AYON Body Contouring System™ is an FDA-cleared platform that integrates multiple capabilities for comprehensive body contouring treatments [3] - The company also engages in OEM agreements with other medical device manufacturers, leveraging its expertise in unique waveforms [3]