Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $9.4 million, a decrease of 8% compared to $10.2 million in Q1 2024 [5][16] - Gross profit for Q1 2025 decreased to $5.7 million from $5.9 million in the prior year, with a gross profit margin of 60.1%, up from 58.1% [17][18] - Net loss attributable to shareholders was $4.2 million or $0.10 per share, compared to $7.6 million or $0.22 per share in the prior year [19] Business Line Data and Key Metrics Changes - Advanced Energy segment revenue increased by 6% to $7.9 million, driven by stronger sales of single-use handpieces in the U.S. [6][16] - OEM segment sales decreased by 44.7% to approximately $1.2 million, attributed to lower sales volume to existing customers [17] Market Data and Key Metrics Changes - Domestic revenue decreased by 3.4% year-over-year to $6.7 million, while international revenue decreased by 17.7% to $2.7 million [17] - The company noted a stabilization in demand for capital equipment in the U.S., with year-over-year increases for two consecutive quarters [6] Company Strategy and Development Direction - The company is focusing on the Renuvion offering as a key product for addressing loose and lax skin, particularly for patients experiencing rapid weight loss due to GLP-1 drugs [10][11] - AON body contouring platform is expected to differentiate the company in the market, with a planned launch in the second half of 2025 pending FDA clearance [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent macroeconomic headwinds but expressed optimism about the growth potential from the GLP-1 market [7][9] - The company expects to return to more normalized cash burn for the remainder of 2025, projecting cash flow into 2027 [20] Other Important Information - The company implemented significant cost-cutting measures, resulting in a decrease in operating expenses to $8.7 million from $12.6 million in the prior year [19] - Renuvion won the 2025 New Beauty Award for Best Minimally Invasive Skin Tightener, highlighting its market recognition [12] Q&A Session Summary Question: Progress on AON platform and customer enrollment - Management indicated they are not commenting on the AON pipeline yet but noted excitement in the marketplace regarding upgrades to the APYX-one console [24][25] Question: Demand for APYX One console upgrades - Management confirmed they are seeing increased demand for the APYX One console as customers prepare for AON [26][27] Question: Tariff impacts and supply chain - Management stated they have manufacturing flexibility between the U.S. and Bulgaria to mitigate potential tariff impacts [30][31] Question: Margin impact from tariffs - Management expects gross margins to remain around 60% for the year, indicating minimal impact from current tariff considerations [34] Question: Investments to support AON launch - Management emphasized that while controlling expenses is important, investments to support the AON launch will not be compromised [35]

Core Insights - Apyx Medical Corporation reported a total revenue of $9.4 million for Q1 2025, a decrease from $10.2 million in the same period last year, primarily due to a significant drop in OEM revenue [5][7] - The Advanced Energy segment saw a 6% increase in revenue to $7.9 million, driven by strong sales of generator units and single-use handpieces [4][5] - The company is preparing to launch the AYON Body Contouring System in the second half of 2025, pending FDA clearance, which is expected to enhance its market position in surgical aesthetics [3][5] Financial Performance - Total revenue decreased by 8% year-over-year, with Advanced Energy revenue increasing by 6% while OEM revenue fell by 45% [5][7] - Gross profit for Q1 2025 was $5.7 million, with a gross profit margin of 60%, up from 58% in the prior year [8] - Operating expenses decreased significantly by $3.8 million to $8.7 million, reflecting cost-cutting measures implemented in the previous quarter [9] Loss and Adjusted EBITDA - The net loss attributable to stockholders decreased by 45% to $4.2 million, or $0.10 per share, compared to a loss of $7.6 million, or $0.22 per share, in Q1 2024 [11][20] - Adjusted EBITDA loss improved to $2.4 million from $5.3 million in the prior year, indicating better operational efficiency [11][26] Market Position and Strategy - Renuvion, the company's flagship product, was awarded the 2025 NewBeauty Award for "Best Minimally Invasive Skin Tightener," highlighting its growing recognition in the market [5][11] - The company aims to capitalize on the increasing demand for aesthetic procedures, particularly among patients using GLP-1 drugs for weight loss [3][5] - Apyx Medical's management expressed confidence in the company's path to profitability following recent restructuring and cost management efforts [6][9]

Revenue Performance - Total revenue for Q1 2025 was $9.4 million, a decrease of 8% compared to $10.2 million in Q1 2024[6] - Advanced Energy segment revenue increased by 6% to $7.9 million, driven by strong generator unit sales and U.S. single-use handpiece sales[4] - OEM revenue decreased by 45% to approximately $1.5 million, down from $2.8 million in the prior year[6] - Financial guidance for full year 2025 projects total revenue between $47.6 million and $49.0 million, with Advanced Energy revenue expected to be $39.6 million to $41.0 million[11] Profitability and Loss - Net loss attributable to stockholders decreased by 45% to $4.2 million, or $0.10 per share, compared to a net loss of $7.6 million, or $0.22 per share, in Q1 2024[9] - Adjusted EBITDA loss improved by 54% to $2.4 million, compared to $5.3 million in the same period last year[10] - The net loss attributable to stockholders for Q1 2025 was $4,150,000, an improvement from a net loss of $7,576,000 in Q1 2024, indicating a reduction of about 45.5%[23] - Adjusted EBITDA for Q1 2025 was reported at $(2,440,000), compared to $(5,337,000) in Q1 2024, reflecting a year-over-year improvement of approximately 54.4%[23] Cost Management - Operating expenses decreased by $3.8 million to $8.7 million, reflecting cost-cutting measures implemented in Q4 2024[8] - Stock-based compensation expense for Q1 2025 was $451,000, down from $1,128,000 in Q1 2024, a decrease of about 60%[23] Asset and Liability Management - As of March 31, 2025, total assets decreased to $60,160,000 from $64,842,000 as of December 31, 2024, representing a decline of approximately 7.5%[20] - Total current assets decreased to $51,851,000 in Q1 2025 from $56,440,000 in Q4 2024, a decrease of about 8.5%[20] - Total liabilities decreased slightly to $49,516,000 in Q1 2025 from $50,507,000 in Q4 2024, a reduction of approximately 2%[20] - Cash and cash equivalents as of March 31, 2025, were $31,011,000, down from $31,741,000 at the end of 2024, a decrease of about 2.3%[20] - The company reported a decrease in trade accounts receivable to $11,645,000 in Q1 2025 from $15,480,000 in Q4 2024, a decline of approximately 24.9%[20] - The accumulated deficit increased to $(82,061,000) as of March 31, 2025, compared to $(77,911,000) at the end of 2024, reflecting an increase of approximately 5.5%[20] - The company’s long-term debt increased to $34,127,000 in Q1 2025 from $33,893,000 in Q4 2024, an increase of about 0.7%[20] Product Development - The company plans to launch the AYON Body Contouring System in the second half of 2025, pending FDA clearance[4] - Renuvion won the 2025 NewBeauty Award for "Best Minimally Invasive Skin Tightener"[4] Gross Profit Margin - Gross profit margin increased to 60% in Q1 2025, up from 58% in Q1 2024, due to changes in product and geographic mix[7]

Company Overview - Apyx Medical Corporation specializes in advanced energy technology, particularly in the cosmetic surgery market with its Helium Plasma Platform Technology products marketed as Renuvion and J-Plasma [5] - Renuvion is the only FDA-cleared device for use after liposuction, addressing issues related to loose skin with more than 90 evidence-based clinical publications supporting its effectiveness [3][5] - The company aims to elevate people's lives through innovative products that provide controlled heat to tissue for desired surgical results [5] Marketing Strategy - Dolores Catania has been appointed as the Chief of Confidence for Apyx Medical's Renew You consumer marketing campaign, focusing on body contouring and the challenges of loose skin [1][2] - Catania will be featured in various marketing initiatives across multiple platforms, including social media, public relations, live engagements, and physician events [4] - The campaign emphasizes the emotional and physical benefits of Renuvion treatments, aiming to empower consumers in their personal transformations [3][4] Industry Position - Renuvion is recognized as the 1 body contouring technology trusted by doctors to effectively address loose skin challenges [3][6] - An independent survey indicated that 4 out of 5 board-certified or eligible cosmetic and plastic surgeons in the US agree on the effectiveness of Renuvion [6]

Company Overview - Apyx Medical Corporation is an advanced energy technology company focused on innovative products, including its Helium Plasma Platform Technology marketed as Renuvion in the cosmetic surgery market and J-Plasma in the hospital surgical market [3] - The effectiveness of Renuvion and J-Plasma is supported by over 90 clinical publications, demonstrating the company's commitment to clinical validation [3] Financial Results Announcement - Apyx Medical will release its financial results for the first quarter of fiscal year 2025 before markets open on Thursday, May 8th [1] - A conference call will be held at 8:00 a.m. Eastern Time on the same day to discuss the quarterly results and include a question-and-answer session [2] Investor Relations - The investor relations contact for Apyx Medical is Jeremy Feffer, Managing Director at LifeSci Advisors, who can be reached at 212-915-2568 or via email [3]

Group 1 - Renuvion is recognized as the "Best Minimally Invasive Skin Tightener" by NewBeauty Awards, highlighting its effectiveness in addressing consumer beauty concerns [1][2] - The technology is the only FDA-cleared device for use after liposuction, with over 90 evidence-based clinical publications supporting its long-lasting results from a single treatment [2][5] - There has been a significant increase in consumer interest regarding loose skin, with searches for "sagging skin" rising by 168.7% in 2024 compared to the previous year [2] Group 2 - Apyx Medical Corporation specializes in advanced energy technology, particularly through its Helium Plasma Platform Technology marketed as Renuvion in cosmetic surgery and J-Plasma in hospital surgical markets [5] - The company emphasizes its ability to provide controlled heat to tissue, which is crucial for achieving desired surgical outcomes [5] - Apyx Medical has established OEM agreements with other medical device manufacturers, leveraging its expertise in unique waveforms [5]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $14.2 million, a decrease of 3% compared to $14.7 million in Q4 2023 [7][23] - Gross profit for Q4 2024 increased to $9 million, with a gross profit margin of 63.0%, up from 60.9% in the prior year [25] - Net loss attributable to stockholders was $4.6 million or $0.12 per share for Q4 2024, compared to a net loss of $9.6 million or $0.28 per share in Q4 2023 [28] Business Segment Data and Key Metrics Changes - Advanced Energy segment revenue was flat at approximately $12.1 million, with a 30% increase compared to Q3 2024 [8][24] - OEM segment sales decreased by 16% to approximately $1.6 million in Q4 2024 compared to Q4 2023 [24] - Domestic revenue increased by 1% year-over-year to $10.6 million, while international revenue decreased by 8% to $3.7 million [25] Market Data and Key Metrics Changes - The aesthetic market has faced challenges due to the macroeconomic environment and the adoption of GLP-1 drugs, which have diverted discretionary spending [9][10] - The company believes that patients who have lost weight due to GLP-1 drugs will seek surgical solutions, positioning the Renuvion system favorably [11][12] Company Strategy and Development Direction - The company is focusing on the launch of the AYON Body Contouring System, expected in the second half of 2025, which integrates multiple surgical technologies [16][18] - Apyx Medical aims to capitalize on the growing demand for surgical aesthetics, particularly for patients experiencing skin laxity after significant weight loss [12][60] - A restructuring program was implemented to reduce U.S. workforce by nearly 25%, aiming for annualized cost savings of approximately $4.3 million [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum in the Advanced Energy segment and the potential for growth in 2025 [8][9] - The company anticipates total revenue for 2025 to be in the range of $47.6 million to $49.0 million, reflecting a slight increase from 2024 [30] - Management noted that the aesthetic space is experiencing disruption due to the impact of GLP-1 drugs, which could benefit companies with the right technologies [62] Other Important Information - The company completed a registered direct offering with net proceeds of approximately $6.8 million to strengthen its balance sheet [21] - Cash and cash equivalents as of December 31, 2024, were $31.7 million, down from $43.7 million a year earlier [29] Q&A Session Summary Question: Confirmation of gross margin for 2025 - Management confirmed that they expect gross margins to be around 60% for 2025 [34][35] Question: Timing and revenue expectations for AYON - Management indicated that the guidance for AYON has not been updated despite the earlier submission for FDA approval, and revenue expectations remain conservative [40][41] Question: Changes in direct-to-consumer campaign and future outlook - Management highlighted the success of the DTC campaign and the importance of addressing the needs of patients experiencing skin laxity due to weight loss [50][52] Question: Domestic vs. international market performance - Management noted that the U.S. market is performing better due to early adoption of GLP-1 drugs, with expectations for similar trends internationally [56][58] Question: Adoption of GLP-1s and utilization of Renuvion - Management reported growth in handpiece sales in the U.S. and noted that surgical practices are adapting to treat patients with skin laxity effectively [66][70] Question: Upgrades for the Apyx One Console - Management stated that there is still a significant number of customers who need to upgrade to the Apyx One Console before AYON's launch [72][75]

Financial Performance - For the year ended December 31, 2024, Apyx Medical incurred a loss from operations of $18.8 million and used $18.0 million of cash in operations[22]. - As of December 31, 2024, Apyx Medical had cash and cash equivalents of $31.7 million[22]. - The company plans to reduce annual operating expenses below $40 million in 2025 through identified cost savings[23]. - The company closed a $7.0 million registered direct offering, issuing 3,000,000 shares of common stock[29]. - The company anticipates needing to raise additional capital to fund operations due to recurring net losses and demand for technology adoption[97]. - The company incurred pre-tax charges of approximately $0.6 million in Q4 2024 for severance and employee termination benefits[22]. Cost-Saving Measures - The company reduced its U.S. workforce by nearly 25% as part of a cost-saving restructuring, estimating annualized future cost savings of approximately $4.3 million[22]. - The voluntary employee turnover rate was approximately 11.8% during 2024, reflecting the company's workforce stability[48]. Product Development and Regulatory Approvals - Apyx Medical submitted a 510(k) premarket notification to the FDA for the AYON Body Contouring System on January 6, 2025[20]. - The company plans to submit an additional 510(k) application for AYON in 2025 to expand its indications to include power-assisted liposuction[67]. - The Renuvion technology has received FDA clearance and CE mark, allowing for its sale in multiple countries, and is designed for controlled heat application in cosmetic procedures[59]. - The Renuvion APR handpiece received FDA clearance for coagulation of subcutaneous soft tissues following liposuction on May 10, 2023[83]. - The Renuvion Micro handpiece was cleared by the FDA on June 14, 2023, for delivering RF energy and/or helium plasma for soft tissue coagulation[84]. Market Trends and Opportunities - The global aesthetic surgery market is projected to grow steadily, driven by social media influence, beauty standards, and rising disposable income, despite a 2.9% year-over-year decline in liposuction procedures[39]. - The company anticipates that the increased use of GLP-1 medications may eventually drive demand for plastic surgery and Renuvion products due to associated skin laxity[38]. - Renuvion is the only FDA-approved device for treating skin laxity post-liposuction, potentially expanding the total available market for the company's products[38]. Intellectual Property - The company has been issued 38 patents in the U.S. and 57 foreign patents, with 14 pending U.S. patent applications and 19 pending foreign applications, indicating a strong focus on intellectual property[41]. - The company relies on trade secrets and non-disclosure agreements to protect its proprietary information, but breaches could lead to loss of competitive advantage[112]. Competitive Position - The company is the only one with helium-based plasma products and four specific FDA indications, maintaining a competitive position despite facing competition from RF-based and CO2 laser products[76]. - The company aims to become the sole provider of surgical equipment in the cosmetic surgery market through its direct sales force and international distributors[61]. Supply Chain and Regulatory Challenges - The company continues to face potential supply chain disruptions but has not yet experienced a meaningful backlog of sales orders[43]. - The company relies on global supply chains, which are subject to regulatory requirements and unexpected changes affecting sourcing and pricing[88]. - Increased regulatory scrutiny and enforcement may materially affect the company's financial condition and business operations[77]. - The global regulatory environment for medical devices is becoming increasingly stringent, impacting the time and cost of obtaining product approvals[125]. Manufacturing and Environmental Considerations - The company’s manufacturing facilities are located in Clearwater, Florida, and Sofia, Bulgaria, and are vulnerable to weather risks, particularly hurricanes[118]. - The company is subject to stringent environmental regulations that may impact manufacturing and sterilization processes, including compliance with laws like REACH and Proposition 65[133]. Future Outlook - The company is committed to investing in the development and marketing of Renuvion technology for long-term growth, although future revenue and profitability are uncertain[70]. - The company expects to launch the AYON product in 2025, but successful commercialization depends on obtaining necessary regulatory approvals and demonstrating safety and efficacy[102].

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $14.2 million, a slight decrease of 3% compared to $14.7 million in Q4 2023 [7][23] - Gross profit for Q4 2024 increased to $9 million, with a gross profit margin of 63.0%, up from 60.9% in the prior year [25] - Net loss attributable to stockholders was $4.6 million or $0.12 per share for Q4 2024, compared to $9.6 million or $0.28 per share in Q4 2023 [28] Business Segment Data and Key Metrics Changes - Advanced Energy segment revenue was flat at approximately $12.1 million, with a 30% growth compared to Q3 2024 [8][24] - OEM segment sales decreased by 16% to approximately $1.6 million in Q4 2024 compared to Q4 2023 [24] - Domestic revenue increased by 1% year-over-year to $10.6 million, while international revenue decreased by 8% to $3.7 million [25] Market Data and Key Metrics Changes - The aesthetic market has faced softness due to macroeconomic factors and the adoption of GLP-1 drugs, which have diverted discretionary spending [9][10] - The company anticipates a surge in demand for surgical solutions as patients who have lost weight from GLP-1 drugs seek treatments for loose skin [11][12] Company Strategy and Development Direction - The company is focusing on the launch of the AYON Body Contouring System, expected in the second half of 2025, which integrates multiple surgical technologies [16][18] - Apyx Medical aims to position itself as a leader in surgical aesthetics, leveraging its proprietary technology and direct-to-consumer marketing strategies [12][15] Management's Comments on Operating Environment and Future Outlook - Management noted that the aesthetic space is undergoing significant changes due to the impact of GLP-1 drugs, which have disrupted traditional non-invasive procedures [61][62] - The company believes that its Renuvion system is uniquely positioned to meet the needs of patients post-weight loss, and it expects to see growth in surgical procedures as a result [11][12] Other Important Information - A restructuring program was implemented, reducing the U.S. workforce by nearly 25%, expected to yield annualized cost savings of approximately $4.3 million [20][21] - The company completed a registered direct offering with net proceeds of approximately $6.8 million to strengthen its balance sheet [21] Q&A Session Summary Question: Confirmation of gross margin for 2025 - Management confirmed that they expect gross margins to be around 60% for 2025, similar to 2024 [35][37] Question: Timing and revenue expectations for AYON - Management indicated that the guidance for AYON has not been updated despite the earlier submission for FDA approval, and revenue expectations remain conservative [40][42] Question: Success of direct-to-consumer campaign - Management highlighted that the direct-to-consumer campaign has significantly exceeded expectations, driven by the unique needs of patients experiencing skin laxity post-weight loss [52][53] Question: Domestic vs. international market performance - Management noted that the U.S. market is performing better due to early adoption of GLP-1 drugs, and they expect similar trends to emerge internationally [56][58] Question: Adoption of GLP-1s and utilization of Renuvion - Management reported growth in handpiece sales in the U.S. and noted that surgical practices are adapting to meet the needs of patients with skin laxity [67][70] Question: Upgrades for the Apyx One Console - Management stated that there is still a significant number of customers who need to upgrade to the Apyx One Console, and they plan to offer special pricing for existing customers [75]

Financial Results - Apyx Medical Corporation reported preliminary revenue results for Q4 and the year ended December 31, 2024[5] - The press release detailing these results was issued on January 13, 2025[5] Company Information - The company is listed on the Nasdaq Global Select Market under the trading symbol APYX[3] - Apyx Medical Corporation has not elected to use the extended transition period for new financial accounting standards[4] Reporting Format - The report includes a cover page interactive data file embedded within the Inline XBRL document[8]