Core Insights - Apyx Medical Corporation specializes in advanced energy solutions for surgical and medical applications, aiming to improve surgical outcomes in a competitive landscape with peers like Crinetics Pharmaceuticals, IDEAYA Biosciences, Harrow Health, Evelo Biosciences, and IRadimed Corporation [1] Financial Metrics - Apyx Medical's Return on Invested Capital (ROIC) is -26.00%, significantly lower than its Weighted Average Cost of Capital (WACC) of 11.53%, indicating inefficiency in capital utilization [2] - The ROIC to WACC ratio for Apyx is -2.26, further emphasizing its inability to generate sufficient returns to cover its cost of capital [2] - Crinetics Pharmaceuticals has a ROIC of -34.46% and a WACC of 4.90%, resulting in a ROIC to WACC ratio of -7.04, indicating similar struggles in capital efficiency [3] - IDEAYA Biosciences shows a ROIC of -38.96% against a WACC of 4.52%, leading to a ratio of -8.61, reflecting its challenges in generating returns above its cost of capital [3] - Harrow Health has a ROIC of 4.90% and a WACC of 5.87%, resulting in a ROIC to WACC ratio of 0.83, indicating returns just below its cost of capital [4] - Evelo Biosciences has a severely negative ROIC of -201.37% compared to its WACC of 9.04%, with a ratio of -22.28, showcasing extreme inefficiency [4] - IRadimed Corporation stands out with a ROIC of 19.35% and a WACC of 8.44%, resulting in a ROIC to WACC ratio of 2.29, indicating effective capital utilization and strong returns above its cost of capital [5]

Summary of Apex Medical Conference Call Company Overview - **Company**: Apex Medical - **Industry**: Medical Technology, specifically in surgical aesthetics - **Specialization**: Helium plasma energy solutions for minimally invasive cosmetic and surgical procedures [2][3] Core Insights and Arguments - **Market Leadership**: Apex Medical is positioned as a leader in surgical technologies for minimally invasive aesthetic procedures, particularly with their FDA-approved device, Renuvion, for treating loose and lax skin [4][5] - **Impact of GLP-1 Drugs**: The aesthetic market has significantly changed due to the introduction of GLP-1 drugs, which are projected to become a $100 billion market by 2030. Nearly 63% of GLP-1 users are new to aesthetic treatments, indicating a growing customer base for aesthetic procedures [5][6] - **Procedure Trends**: There has been a decline in liposuction procedures (down 10%), while surgical lifts have increased by over 20%. This trend aligns with the need for surgical interventions as patients lose weight and experience skin laxity [6][7] - **Patient Behavior**: 57% of patients seek treatment within six months after reaching their ideal weight, indicating a strong demand for surgical interventions post-weight loss [8][9] Financial Performance and Market Potential - **Revenue**: Apex Medical generated approximately $50 million in revenue last year, operating in a market valued at around $10 billion [11] - **Single-Use Handpieces**: The company sold 93,000 single-use handpieces, with an average selling price (ASP) of $500, marking a 14% growth in this segment [12] - **Cost Management**: The company aims to reduce operating costs to below $40 million this year, down from $53 million in 2023, to achieve profitability [25][26] Product Development and Launch - **AON Body Contouring System**: The AON system, approved in May, is set to launch commercially in September. It consolidates multiple technologies into one platform, enhancing efficiency and safety in surgical procedures [18][19] - **Ultrasonic Technology**: The AON system features advanced ultrasonic technology (LIFT technology) that improves fat emulsification speed and safety compared to existing technologies [20][21] Marketing and Consumer Engagement - **Direct-to-Consumer (DTC) Strategy**: Apex Medical is enhancing its DTC marketing for Renuvion to educate consumers about skin laxity treatment options, while focusing on B2B strategies for AON [22] - **Awards and Recognition**: Renuvion recently won the Best Minimally Invasive Skin Tightener award, highlighting its significance in the beauty market [22] Global Presence and Future Plans - **International Operations**: The company has R&D and manufacturing facilities in the U.S. and Bulgaria, with a joint venture in China, where it has recently begun commercial operations [23][24] - **Future Focus**: Apex Medical plans to expand the adoption of Renuvion and continue developing AON for international markets, emphasizing evidence-based medicine and clinical research [27][28] Additional Insights - **Surgeon Partnerships**: The company focuses on building partnerships with plastic surgeons, aiming to support their practices and improve patient outcomes [30][31] - **Market Trends**: The rise of GLP-1 drugs is expected to influence aesthetic treatment trends globally, with increasing accessibility in markets like Brazil [33]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 decreased by 6% to $11,400,000 compared to $12,100,000 in the same period last year, primarily driven by a decrease in OEM product sales [6][18] - Gross profit for Q2 2025 decreased to $7,100,000 from $7,500,000 in the prior year, while gross profit margin slightly increased to 62.3% from 61.7% [20] - Net loss attributable to stockholders was $3,800,000 or $0.09 per share for Q2 2025, compared to $6,600,000 or $0.19 per share in the prior year [22] Business Line Data and Key Metrics Changes - Revenue for the Advanced Energy segment was relatively flat at $9,700,000 compared to $9,800,000 last year, reflecting a decrease in the volume of single-use handpieces sold domestically [18][19] - OEM segment sales decreased by 29% or approximately $1,700,000 compared to the previous year, with domestic revenue down 11% to $7,800,000 and international revenue down 4% to $3,600,000 [19] Market Data and Key Metrics Changes - The global aesthetic market remains challenging, but the company is identifying key growth opportunities, particularly with the Renuvion product [9][10] - The company has launched Renuvion in China, which is expected to be a significant growth driver due to the emerging middle to upper class and the presence of approximately 5,000 plastic surgeons in the region [12][40] Company Strategy and Development Direction - The company is focused on returning to growth and has appointed two senior sales leaders to enhance its market presence in North America and Europe/Asia [5] - The launch of the Aon system is a key strategic priority, with expectations of significant sales momentum as it addresses current market needs for body contouring [13][16] - The company aims to expand Renuvion's footprint in international markets, with a strong marketing campaign that has exceeded expectations in 2025 [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong early results from Aon presales and a belief that the next decade will be a significant growth period for surgeons [29][30] - The company anticipates a different seasonal revenue pattern due to the timing of Aon product shipments, which could lead to a stronger Q3 and Q4 [20][35] Other Important Information - Cash used in operating activities decreased to $1,200,000 compared to $4,300,000 in the prior year, indicating improved cash and working capital management [22] - The company updated its 2025 revenue guidance to a range of $50,000,000 to $52,000,000, up from previous guidance, reflecting confidence in the Aon launch [23][24] Q&A Session Summary Question: Customer receptivity to Aon and capital purchases in the current market - Management reported that the reaction from doctors to Aon has been overwhelmingly positive, indicating a strong demand for innovation in the market [26][28] Question: Impact of new commercial hires on product launches - The new hires bring extensive experience in the aesthetic space, which is expected to drive the adoption of Aon and Renuvion [31][33] Question: Seasonal revenue patterns and expectations for Q3 and Q4 - Management clarified that while a typical dip from Q2 to Q3 is expected, the launch of Aon could lead to a stronger Q3, with significant shipments anticipated in Q4 [34][35] Question: Market opportunity in China and partnership with GlamMoon - The company sees a substantial opportunity in China, supported by a strong partnership with GlamMoon, which has extensive facilities in the region [40][42]

PART I. Financial Information Presents unaudited consolidated financial statements and management's discussion of financial condition and operations [ITEM 1. Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements of Apyx Medical Corporation for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of operations, changes in equity, and cash flows, along with detailed notes explaining the basis of presentation, recent accounting pronouncements, and specific financial line items [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific reporting dates Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total current assets | $49,915 | $56,440 | | Total assets | $58,188 | $64,842 | | Total current liabilities | $10,566 | $10,721 | | Total liabilities | $50,732 | $50,507 | | Total stockholders' equity | $7,253 | $14,210 | | Total equity | $7,456 | $14,335 | - Total assets decreased by approximately **$6.65 million** from December 31, 2024, to June 30, 2025, primarily driven by a reduction in current assets, including cash and cash equivalents and trade accounts receivable[8](index=8&type=chunk) - Total equity significantly decreased from **$14.335 million** at December 31, 2024, to **$7.456 million** at June 30, 2025, largely due to an accumulated deficit[8](index=8&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's financial performance over specific periods, including sales, gross profit, and net loss Condensed Consolidated Statements of Operations (in thousands, except per share) | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sales | $11,373 | $12,149 | $20,803 | $22,393 | | Gross profit | $7,083 | $7,493 | $12,748 | $13,442 | | Loss from operations | $(2,574) | $(5,547) | $(5,625) | $(12,162) | | Net loss attributable to stockholders | $(3,778) | $(6,556) | $(7,928) | $(14,132) | | Basic and diluted loss per share | $(0.09) | $(0.19) | $(0.19) | $(0.41) | - Sales decreased by **6.4%** for the three months ended June 30, 2025, and by **7.1%** for the six months ended June 30, 2025, compared to the prior year periods[11](index=11&type=chunk) - Net loss attributable to stockholders significantly improved, decreasing from **$(6,556) thousand** to **$(3,778) thousand** for the three months ended June 30, 2025, and from **$(14,132) thousand** to **$(7,928) thousand** for the six months ended June 30, 2025, primarily due to reduced operating expenses[11](index=11&type=chunk) [Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) This section outlines the changes in the company's equity components, including common stock, additional paid-in capital, and accumulated deficit Condensed Consolidated Statements of Changes in Equity (in thousands) | Metric (in thousands) | Balance at Dec 31, 2024 | Balance at June 30, 2025 | | :-------------------- | :---------------------- | :----------------------- | | Common Stock Par Value | $38 | $38 | | Additional Paid-In Capital | $92,083 | $93,054 | | Accumulated Deficit | $(77,911) | $(85,839) | | Non-controlling Interest | $125 | $203 | | Total Equity | $14,335 | $7,456 | - Total equity decreased by **$6,879 thousand** from December 31, 2024, to June 30, 2025, primarily due to net losses, partially offset by stock-based compensation and contributions from non-controlling interest[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the cash inflows and outflows from operating, investing, and financing activities, reflecting the company's liquidity Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(1,935) | $(10,670) | | Net cash used in investing activities | $(320) | $(324) | | Net cash provided by (used in) financing activities | $50 | $(10) | | Net change in cash and cash equivalents | $(2,440) | $(10,974) | | Cash and cash equivalents, end of period | $29,301 | $32,678 | - Net cash used in operating activities significantly decreased from **$(10.67) million** in H1 2024 to **$(1.935) million** in H1 2025, driven by improved accounts receivable and reduced operating losses[16](index=16&type=chunk)[95](index=95&type=chunk) - Cash and cash equivalents decreased by **$2.44 million** in H1 2025, ending the period at **$29.301 million**[16](index=16&type=chunk)[94](index=94&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the financial statements, covering accounting policies and specific line items [NOTE 1. BASIS OF PRESENTATION](index=8&type=section&id=NOTE%201.%20BASIS%20OF%20PRESENTATION) Apyx Medical Corporation, incorporated in 1982, is an advanced energy technology company specializing in Helium Plasma Platform Technology products (Renuvion® and J-Plasma®) for cosmetic and hospital surgical markets, and OEM agreements. The company received 510(k) clearance for its AYON Body Contouring System™ in May 2025, with a commercial launch planned for H2 2025. Despite recurring net losses and cash outflows, the company plans to fund operations through existing cash, product sales, and potential additional financing. A cost-saving restructuring in November 2024, including a 25% workforce reduction, is expected to yield $4.3 million in annualized savings and reduce annual operating expenses below $40 million in fiscal 2025 - Apyx Medical Corporation received 510(k) clearance from the FDA for its AYON Body Contouring System™ on May 13, 2025, with commercial launch anticipated in the second half of 2025[21](index=21&type=chunk)[68](index=68&type=chunk) - The company implemented a cost-saving restructuring in November 2024, reducing its US workforce by nearly **25%**, with estimated annualized future cost savings of approximately **$4.3 million**[24](index=24&type=chunk)[71](index=71&type=chunk) - Total annual operating expenses are projected to be reduced below **$40 million** in fiscal 2025 due to identified cost savings, including reductions in professional fees, R&D, credit card fees, and stock-based compensation[24](index=24&type=chunk)[71](index=71&type=chunk) [NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS](index=9&type=section&id=NOTE%202.%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) The company adopted ASU 2023-09, Income Taxes (Topic 740), on January 1, 2025, expecting incremental disclosures in its 2025 Annual Report. It is currently evaluating the impact of ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), effective for fiscal years beginning after December 15, 2026 - The Company adopted ASU 2023-09, Income Taxes (Topic 740), on January 1, 2025, which will lead to incremental disclosures in its 2025 Annual Report on Form 10-K[25](index=25&type=chunk) - The Company is evaluating the impact of ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), effective for fiscal years beginning after December 15, 2026[26](index=

Core Points - Apyx Medical Corporation granted a nonstatutory stock option to John Featherstone, Vice President of North American Sales, for 100,000 shares as an inducement for employment [1][2] - The stock option has an exercise price of $1.85, which is the closing price of Apyx Medical's common stock on the grant date [2] - The stock option vests over a four-year period, with 25% vesting on the first anniversary and the remainder vesting annually, contingent on continued employment [2] Company Overview - Apyx Medical Corporation specializes in advanced energy technology, focusing on innovative products such as the Helium Plasma Platform Technology, marketed as Renuvion and AYON Body Contouring System in the cosmetic surgery market, and J-Plasma in the hospital surgical market [3] - Renuvion and J-Plasma provide surgeons with the ability to deliver controlled heat to tissue, supported by over 90 clinical documents [3] - The company also engages in OEM agreements with other medical device manufacturers, leveraging its expertise in unique waveforms [3]

[Second Quarter 2025 Earnings Report Overview](index=1&type=section&id=Second%20Quarter%202025%20Earnings%20Report%20Overview) Apyx Medical reported Q2 2025 financial results, including $11.4 million revenue, reduced net loss, and launched AYON Body Contouring System and Renuvion in China, raising full-year guidance [Recent Financial and Operating Highlights](index=1&type=section&id=Recent%20Financial%20and%20Operating%20Highlights) Apyx Medical achieved key operational milestones with the AYON Body Contouring System™ launch and Renuvion® sales in China, alongside improved Q2 2025 financial metrics - Apyx Medical successfully launched the AYON Body Contouring System™ to key surgeons in critical geographies and initiated commercial sales of Renuvion® in China with strong clinical interest, leading to an increased full-year 2025 revenue guidance[3](index=3&type=chunk)[4](index=4&type=chunk) Second Quarter 2025 Key Financial Highlights: | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :-------------------------------- | :-------- | :-------- | :--------- | :--------- | | Total Revenue | $11.4M | $12.1M | $(0.7M) | (6.4)% | | Advanced Energy Revenue | $9.7M | $9.8M | $(0.1M) | (1.0)% | | OEM Revenue | $1.7M | $2.4M | $(0.7M) | (28.5)% | | Net Loss Attributable to Stockholders | $(3.8M) | $(6.6M) | $2.8M | (42)% | | Adjusted EBITDA Loss | $(2.0M) | $(4.3M) | $2.3M | (54)% | - The AYON Body Contouring System™ received 510(k) clearance from the U.S. Food and Drug Administration (FDA) and is an all-in-one system integrating advanced modalities for fat removal, tissue contraction, and aesthetic enhancement[4](index=4&type=chunk) - The company strengthened its management team with the appointments of John Featherstone as Vice President of North American Sales and Simon Davies as Director of International Sales, Europe and Asia-Pacific, to drive sustained sales growth worldwide[4](index=4&type=chunk) [Second Quarter 2025 Financial Performance Analysis](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Performance%20Analysis) Apyx Medical's Q2 2025 financial performance showed decreased revenue, improved gross margin, reduced operating expenses, and a significant reduction in net and Adjusted EBITDA losses [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Total revenue for Q2 2025 decreased by 6.4% year-over-year to $11.4 million. Advanced Energy revenue remained relatively flat, while OEM revenue saw a significant decline of 28.5% due to decreased sales volume to existing customers. Domestic sales decreased, while international sales showed a slight increase Revenue by Segment (Three Months Ended June 30): | Segment | 2025 (in thousands) | 2024 (in thousands) | $ Change | % Change | | :---------------- | :------------------ | :------------------ | :------- | :------- | | Advanced Energy | $9,670 | $9,766 | $(96) | (1.0)% | | OEM | $1,703 | $2,383 | $(680) | (28.5)% | | **Total** | **$11,373** | **$12,149** | **$(776)** | **(6.4)%** | Revenue by Geography (Three Months Ended June 30): | Geography | 2025 (in thousands) | 2024 (in thousands) | $ Change | % Change | | :---------------- | :------------------ | :------------------ | :------- | :------- | | Domestic | $7,776 | $8,687 | $(911) | (10.5)% | | International | $3,597 | $3,462 | $135 | 3.9% | | **Total** | **$11,373** | **$12,149** | **$(776)** | **(6.4)%** | - The decrease in OEM sales was primarily due to decreases in sales volume to existing customers, including Symmetry Surgical under the Company's 10-year generator manufacturing and supply agreement[6](index=6&type=chunk) [Gross Profit and Margin](index=2&type=section&id=Gross%20Profit%20and%20Margin) Gross profit decreased to $7.1 million in Q2 2025 from $7.5 million in the prior year, but gross margin improved to 62.3% from 61.7%. This margin improvement was primarily driven by a favorable product mix, with Advanced Energy comprising a higher percentage of total sales Gross Profit and Margin (Three Months Ended June 30): | Metric | 2025 (in thousands) | 2024 (in thousands) | | :---------- | :------------------ | :------------------ | | Gross Profit | $7,083 | $7,493 | | Gross Margin | 62.3% | 61.7% | - The increase in gross margin is primarily attributable to changes in product mix between segments, with Advanced Energy comprising a higher percentage of total sales, as well as product mix within the Advanced Energy segment[7](index=7&type=chunk) [Operating Expenses](index=3&type=section&id=Operating%20Expenses) Operating expenses significantly decreased by $3.4 million to $9.7 million for the three months ended June 30, 2025, primarily due to reductions in salaries and related costs, selling, general and administrative expenses, research and development expenses, and professional services expenses - Operating expenses decreased **$3.4 million** to **$9.7 million** for Q2 2025, driven by[9](index=9&type=chunk)[22](index=22&type=chunk) * **$1.6 million** decrease in salaries and related costs * **$0.7 million** decrease in selling, general and administrative expenses * **$0.6 million** decrease in research and development expenses * **$0.5 million** decrease in professional services expenses [Other Income/Expense and Income Tax](index=3&type=section&id=Other%20Income%2FExpense%20and%20Income%20Tax) Other expense, net, slightly increased to $1.1 million in Q2 2025, mainly due to a decrease in interest income. Income tax expense remained stable at $49,000 Other Expense, Net and Income Tax (Three Months Ended June 30): | Metric | 2025 (in thousands) | 2024 (in thousands) | | :---------------- | :------------------ | :------------------ | | Other expense, net | $1,115 | $989 | | Income tax expense | $49 | $50 | - The increase in other expense, net, was primarily due to a **$0.2 million** decrease in interest income[10](index=10&type=chunk) [Net Loss and EPS](index=3&type=section&id=Net%20Loss%20and%20EPS) Net loss attributable to stockholders decreased substantially by 42% to $3.8 million, or $0.09 per share, for the three months ended June 30, 2025, compared with $6.6 million, or $0.19 per share, in the prior year period Net Loss and EPS (Three Months Ended June 30): | Metric | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------------- | :----- | :----- | :--------- | :--------- | | Net loss attributable to stockholders | $(3.8M) | $(6.6M) | $2.8M | (42)% | | Loss per share (Basic and diluted) | $(0.09) | $(0.19) | $0.10 | (52.6)% | [Adjusted EBITDA](index=3&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA loss improved by 54% to $2.0 million for the three months ended June 30, 2025, down from $4.3 million in the comparable prior year period, reflecting improved operational efficiency Adjusted EBITDA Loss (Three Months Ended June 30): | Metric | 2025 (in thousands) | 2024 (in thousands) | $ Change | % Change | | :---------------- | :------------------ | :------------------ | :------- | :------- | | Adjusted EBITDA Loss | $(1,962) | $(4,312) | $2,350 | (54.5)% | [Full Year 2025 Financial Guidance](index=3&type=section&id=Financial%20Guidance%20for%20Full%20Year%202025) Apyx Medical revised its full-year 2025 financial guidance upwards, projecting total revenue between $50.0 million and $52.0 million, an increase from previous guidance. This revision is driven by increased expectations for Advanced Energy revenue, while OEM revenue is expected to decrease. Operating expenses are projected to be less than $40.0 million Revised Full Year 2025 Revenue Guidance: | Metric | Previous Guidance | Revised Guidance | FY 2024 Actual | | :---------------------- | :------------------ | :--------------- | :------------- | | Total Revenue | $47.6M - $49.0M | $50.0M - $52.0M | $48.1M | | Advanced Energy Revenue | $39.6M - $41.0M | $42.0M - $44.0M | $38.6M | | OEM Revenue | ~$8.0M (implied) | ~$8.0M | $9.5M | - The Company expects total operating expenses of less than **$40.0 million** for the year ended December 31, 2025[13](index=13&type=chunk) [Company and Product Information](index=4&type=section&id=Company%20and%20Product%20Information) This section provides details on the Q2 2025 conference call, introduces the AYON Body Contouring System, outlines Apyx Medical's core business, and includes a cautionary statement on forward-looking information [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) Management hosted a conference call on August 7, 2025, at 4:30 p.m. Eastern Time to discuss the second quarter 2025 results, with details provided for phone access and a live webcast - A conference call was hosted on August 7, 2025, at 4:30 p.m. Eastern Time to discuss the second quarter 2025 results and host a question and answer session[14](index=14&type=chunk) - Interested parties could listen to the call by phone (800-717-1738 or 646-307-1865 for international callers, access code 35370) or via a live webcast accessible through the Investor Relations section of the Company's website[14](index=14&type=chunk) [About AYON Body Contouring System™](index=4&type=section&id=About%20AYON%20Body%20Contouring%20System%E2%84%A2) AYON is a groundbreaking, surgeon-designed all-in-one body contouring system that combines precision, versatility, and innovation, integrating fat removal, closed-loop contouring, tissue contraction, and electrosurgical capabilities to deliver comprehensive treatments - AYON is a surgeon-designed body contouring system that integrates fat removal, closed loop contouring, tissue contraction, and electrosurgical capabilities in an all-in-one platform[15](index=15&type=chunk) - The system features LIFT Technology for real-time adjustments and Renuvion for enhanced tissue contraction, aiming to streamline procedures and maximize patient outcomes[15](index=15&type=chunk) [About Apyx Medical Corporation](index=4&type=section&id=About%20Apyx%20Medical%20Corporation) Apyx Medical Corporation is an advanced energy technology company specializing in Helium Plasma Platform Technology products like Renuvion, J-Plasma, and the new AYON Body Contouring System for cosmetic and hospital surgical markets, supported by extensive clinical documentation and OEM agreements - Apyx Medical Corporation is an advanced energy technology company focused on its proprietary Helium Plasma Platform Technology products, marketed as Renuvion® and the AYON Body Contouring System™ in cosmetic surgery, and J-Plasma® in the hospital surgical market[16](index=16&type=chunk) - The company also leverages its expertise in unique waveforms through OEM agreements with other medical device manufacturers[16](index=16&type=chunk) [Cautionary Statement on Forward-Looking Statements](index=4&type=section&id=Cautionary%20Statement%20on%20Forward-Looking%20Statements) This section advises that certain discussions and oral statements may contain forward-looking information, which is subject to inherent risks, trends, and uncertainties that could cause actual results to differ materially from projections. The company claims the protection of the safe harbor provisions and assumes no obligation to update these statements - Forward-looking statements are subject to certain risks, trends, and uncertainties that could cause actual results to differ materially from those projected, including regulatory approvals, supply chain disruptions, and macroeconomic or geopolitical matters[19](index=19&type=chunk)[20](index=20&type=chunk) - The Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and assumes no obligation to update or supplement any forward-looking statements[20](index=20&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents the condensed consolidated statements of operations and balance sheets, providing a detailed overview of the company's financial performance and position [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The condensed consolidated statements of operations provide a detailed breakdown of revenues, cost of sales, gross profit, operating expenses, and net loss for the three and six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Operations (Unaudited, In thousands, except per share data): | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sales | $11,373 | $12,149 | $20,803 | $22,393 | | Cost of sales | 4,290 | 4,656 | 8,055 | 8,951 | | Gross profit | 7,083 | 7,493 | 12,748 | 13,442 | | Total other costs and expenses | 9,657 | 13,040 | 18,373 | 25,604 | | Loss from operations | (2,574) | (5,547) | (5,625) | (12,162) | | Total other expense, net | (1,115) | (989) | (2,187) | (1,911) | | Loss before income taxes | (3,689) | (6,536) | (7,812) | (14,073) | | Income tax expense | 49 | 50 | 98 | 103 | | Net loss | (3,738) | (6,586) | (7,910) | (14,176) | | Net loss attributable to stockholders | $(3,778) | $(6,556) | $(7,928) | $(14,132) | | Loss per share: Basic and diluted | $(0.09) | $(0.19) | $(0.19) | $(0.41) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The condensed consolidated balance sheets present the company's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheets (In thousands, except share and per share data): | (In thousands) | June 30, 2025 (Unaudited) | December 31, 2024 | | :-------------------------------- | :-------------------------- | :------------------ | | **ASSETS** | | | | Cash and cash equivalents | $29,301 | $31,741 | | Total current assets | 49,915 | 56,440 | | Total assets | $58,188 | $64,842 | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | $10,566 | $10,721 | | Long-term debt, net | 34,365 | 33,893 | | Total liabilities | 50,732 | 50,507 | | Total stockholders' equity | 7,253 | 14,210 | | Total equity | 7,456 | 14,335 | | Total liabilities and equity | $58,188 | $64,842 | [Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA](index=8&type=section&id=RECONCILIATION%20OF%20GAAP%20NET%20LOSS%20TO%20NON-GAAP%20ADJUSTED%20EBITDA) This section provides a reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA, defining Adjusted EBITDA as net income (loss) attributable to stockholders adjusted for income tax, interest, depreciation, amortization, stock-based compensation, and other non-recurring items, used by management and investors as a measure of operating performance - Adjusted EBITDA is defined as the reported net income (loss) attributable to stockholders (GAAP) plus income tax expense (benefit), interest, depreciation and amortization, stock-based compensation expense, and other significant non-recurring items[26](index=26&type=chunk) Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (Unaudited, In thousands): | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss attributable to stockholders | $(3,778) | $(6,556) | $(7,928) | $(14,132) | | Interest income | (278) | (439) | (582) | (934) | | Interest expense | 1,393 | 1,427 | 2,769 | 2,823 | | Income tax expense | 49 | 50 | 98 | 103 | | Depreciation and amortization | 132 | 156 | 270 | 313 | | Stock-based compensation | 520 | 1,050 | 971 | 2,178 | | **Adjusted EBITDA** | **$(1,962)** | **$(4,312)** | **$(4,402)** | **$(9,649)** |

Company Overview - Apyx Medical Corporation specializes in advanced energy technology, focusing on innovative products such as Renuvion® and the AYON Body Contouring System™ for the cosmetic surgery market, as well as J-Plasma® for the hospital surgical market [3] - The company's technologies provide surgeons with the ability to deliver controlled heat to tissue, supported by over 90 clinical publications [3] Upcoming Events - Management will participate in the Canaccord Genuity 45th Annual Growth Conference on August 12, 2025, in Boston, MA [1] - The President and CEO, Charlie Goodwin, along with CFO, Matt Hill, will engage in a fireside chat at 4:00 PM ET and will hold one-on-one meetings with investors throughout the day [2] Investor Relations - For further inquiries, the investor relations contact is Jeremy Feffer, Managing Director at LifeSci Advisors, reachable at 212-915-2568 or via email [4]

Core Insights - Apyx Medical Corporation has launched Renuvion in China, marking a significant step in its global expansion strategy [2][3] - The company has entered into a distribution agreement with GlamMoon Medical Technology, a division of BeauCare Clinics Investment Co., Ltd., to facilitate the sales and marketing of Renuvion in the Chinese market [1][2] - Initial market clearance has been received from the National Medical Products Administration of China, indicating regulatory approval for the product [1] Company Overview - Apyx Medical Corporation specializes in advanced energy technology, focusing on innovative products such as Renuvion and J-Plasma, which provide controlled heat to tissue for surgical applications [3] - The effectiveness of Renuvion and J-Plasma is supported by over 90 clinical documents, showcasing the company's commitment to clinical validation [3] Partner Overview - BeauCare Clinics Investment Co., Ltd. (BCC) is a leading player in China's medical aesthetics industry, operating over 60 medical aesthetics hospitals and clinics across 15 cities [4] - BCC has established a strong supply chain and a group purchasing alliance with over 400 members, enhancing its market position in the medical aesthetics sector [4]

Core Viewpoint - Apyx Medical Corporation will release its financial results for Q2 of fiscal year 2025 on August 7, 2025, after market close [1] Financial Results Announcement - The financial results will be discussed in a conference call scheduled for 4:30 p.m. Eastern Time on the same day [2] - Interested parties can join the call by dialing 800-717-1738 or 646-307-1865 for international callers, using access code 35370 [2] - A live webcast of the call will be available on the company's website and will be archived for future reference [2] Company Overview - Apyx Medical Corporation specializes in advanced energy technology, focusing on innovative products like Renuvion and the AYON Body Contouring System™ [3] - The company’s Helium Plasma Platform Technology is utilized in both cosmetic surgery and hospital surgical markets, providing surgeons with controlled heat to achieve desired results [3] - The effectiveness of Renuvion and J-Plasma is supported by over 90 clinical publications, showcasing the company's commitment to clinical validation [3] - Apyx Medical also engages in OEM agreements with other medical device manufacturers, leveraging its expertise in unique waveforms [3]

Core Insights - Apyx Medical Corporation is showcasing its Renuvion technology at Miami Swim Week, emphasizing real patient transformations and the empowerment of individuals through body contouring solutions [1][2][3] Company Overview - Apyx Medical Corporation specializes in advanced energy technology, particularly its Helium Plasma Platform Technology, marketed as Renuvion, and the AYON Body Contouring System™ [5] - The company provides innovative products that enable surgeons to deliver controlled heat to tissue, supported by over 90 clinical documents [5] Product Highlights - Renuvion combines helium plasma and radiofrequency energy to achieve tissue contraction and collagen remodeling, making it a trusted tool for plastic surgeons globally [3] - The technology addresses loose skin concerns, which affect millions, offering a solution with minimal downtime [2][3] Marketing and Branding - The company aims to redefine beauty standards by highlighting real patient journeys and encouraging self-acceptance through its marketing efforts at major cultural events [3] - Apyx Medical's mission extends beyond aesthetics, focusing on restoring confidence to individuals struggling with loose skin [3]