Core Insights - Apyx Medical Corporation reported financial results for Q4 and the full year 2024, highlighting a decrease in total revenue but improved operational metrics and strategic initiatives [1][5][14]. Financial Performance - Total revenue for Q4 2024 was $14.2 million, a decrease of 3% from $14.7 million in Q4 2023 [8]. - Advanced Energy segment revenue was approximately $12.1 million, remaining flat year-over-year, while OEM segment revenue decreased by 16% to $2.1 million [5][8]. - For the full year 2024, total revenue decreased by 8% to $48.1 million compared to $52.3 million in 2023 [14]. Profitability Metrics - Gross profit for Q4 2024 increased slightly to $9.0 million, with a gross profit margin of 63.0%, up from 60.9% in the prior year [9]. - The net loss attributable to stockholders for Q4 2024 was $4.6 million, a significant reduction of 52% from $9.6 million in Q4 2023 [12]. - Adjusted EBITDA loss for Q4 2024 was $2.2 million, down from $4.7 million in the same period last year [13]. Operational Highlights - The company experienced a 5% increase in single-use handpiece units shipped in Q4 2024, with a notable 20% increase in the U.S. market compared to the previous year [4]. - Apyx Medical submitted a 510(k) premarket notification for the AYON Body Contouring System to the FDA ahead of schedule, with plans for a launch in the latter half of 2025 [4][20]. Cost Management - Operating expenses decreased to $12.0 million in Q4 2024, down from $14.7 million in the prior year, driven by reductions in various expense categories [10][16]. - The company implemented a cost-saving restructuring program, reducing its U.S. workforce by nearly 25%, which is expected to yield annualized savings of approximately $4.3 million [5][10]. Future Outlook - For 2025, the company projects total revenue in the range of $47.6 million to $49.0 million, with Advanced Energy revenue expected between $39.6 million and $41.0 million [20]. - Operating expenses are anticipated to remain below $40.0 million for the year [20].

Group 1 - Apyx Medical Corporation will release its financial results for the fourth quarter and fiscal year 2024 on March 13, 2025, before the market opens [1] - A conference call will be held on the same day at 8:30 a.m. Eastern Time to discuss the financial results and include a question-and-answer session [2] - The company specializes in advanced energy technology, particularly its proprietary helium plasma and radiofrequency technology marketed as Renuvion and J-Plasma [3] Group 2 - Renuvion and J-Plasma provide surgeons with the ability to deliver controlled heat to tissue, supported by over 90 clinical documents [3] - Apyx Medical has established OEM agreements with other medical device manufacturers, leveraging its expertise in unique waveforms [3]

Core Insights - Apyx Medical Corporation reported preliminary revenue results for Q4 and full year 2024, indicating a strong performance in the Advanced Energy segment with over 25% sales growth quarter-over-quarter [2][4] - The company anticipates launching the AYON™ Body Contouring System in the second half of 2025, pending FDA clearance, which is expected to enhance its position in the surgical aesthetics market [4] Preliminary Fourth Quarter 2024 Revenue Summary - Total revenue is expected to be in the range of approximately $14.1 to $14.3 million, representing a decrease of 4% to 3% year-over-year [6] - Advanced Energy revenue is expected to be in the range of approximately $12.0 to $12.2 million, which is relatively flat year-over-year [6] - OEM revenue is expected to be approximately $2.1 million, representing a decrease of 17% year-over-year [6] Preliminary Full Year 2024 Revenue Summary - Total revenue is expected to be in the range of approximately $48.0 to $48.2 million, representing a decrease of 8% year-over-year [6] - Advanced Energy revenue is expected to be in the range of approximately $38.5 to $38.7 million, representing a decrease of 11% year-over-year [6] - OEM revenue is expected to be approximately $9.5 million, representing growth of 6% year-over-year [6] Management Comments - The company expressed satisfaction with its financial performance in Q4 2024, highlighting improved U.S. capital sales and a doubling of generator unit sales compared to the first half of 2024 [4] - There is an increasing demand for treatments addressing loose and lax skin, partly due to significant patient weight loss from GLP-1 drugs, which the company aims to capitalize on [4]

Core Viewpoint - Apyx Medical Corporation has submitted a 510(k) premarket notification to the FDA for its AYON Body Contouring System, which aims to revolutionize body contouring procedures by providing an all-in-one solution for surgeons [1][2][4]. Product Development - The AYON Body Contouring System is designed to be versatile and innovative, integrating multiple advanced modalities to perform functions such as fat removal, tissue contraction, and aesthetic enhancement [2]. - The company plans to expand the indications for AYON with an additional 510(k) submission later in the year to include power-assisted liposuction [3]. Company Positioning - The AYON Body Contouring System is expected to differentiate Apyx Medical in the aesthetic surgical market, positioning the company as a premier provider in this field [4]. - The announcement of the submission was made approximately 90 days earlier than anticipated, highlighting the efficiency of the company's research, development, quality, and regulatory teams [4]. Company Background - Apyx Medical Corporation specializes in advanced energy technology, particularly its Helium Plasma Platform Technology products marketed as Renuvion and J-Plasma, which provide controlled heat to tissue for surgical procedures [5]. - The effectiveness of Renuvion and J-Plasma is supported by over 90 clinical documents, showcasing the company's commitment to innovation and clinical validation [5].

Core Viewpoint - Apyx Medical Corporation is actively engaging with investors by attending the 15th Annual Craig-Hallum Alpha Select Conference on November 19, 2024, in New York City, highlighting its commitment to investor relations and market presence [1]. Company Overview - Apyx Medical Corporation specializes in advanced energy technology, focusing on innovative products such as the Helium Plasma Platform Technology, marketed as Renuvion in the cosmetic surgery market and J-Plasma in the hospital surgical market [2]. - The Renuvion and J-Plasma technologies provide surgeons with the capability to deliver controlled heat to tissue, enhancing surgical outcomes, supported by over 90 clinical documents [2]. - The company also engages in OEM agreements with other medical device manufacturers, leveraging its expertise in unique waveforms [2].

Workforce Reduction and Cost Savings - The company reduced its US workforce by nearly 25% and expects annualized future cost savings of approximately $4.3 million from this reduction[70]. - The company plans to reduce annual operating expenses below $40 million in 2025 through identified cost savings[71]. - The company incurred pre-tax charges of approximately $0.6 million in the fourth quarter of 2024 due to the organizational changes[70]. Revenue and Sales Performance - Total revenue decreased by 4.1%, or approximately $0.5 million, for the three months ended September 30, 2024, compared to the same period in 2023[75]. - Advanced Energy segment sales decreased by 15.2%, or approximately $4.7 million, for the nine months ended September 30, 2024, compared to the same period in 2023[76]. - The OEM segment sales increased by 14.5%, or approximately $0.9 million, for the nine months ended September 30, 2024, compared to the same period in 2023[76]. - International sales represented approximately 32.2% of total revenues for the three months ended September 30, 2024, compared to 27.8% for the same period in the prior year[77]. Profitability and Expenses - Gross profit for the three months ended September 30, 2024, decreased 12.8% to $6.95 million, with a gross margin of 60.5%[79]. - Research and development expenses decreased 18.9% for the three months ended September 30, 2024, primarily due to lower compensation and benefits costs[81]. - Research and development expenses decreased by 1.8% for the nine months ended September 30, 2024, primarily due to lower compensation and benefits costs of $0.1 million[82]. - Professional services expense decreased by 10.0% for the three months ended September 30, 2024, primarily due to decreases in accounting and audit fees, board of director's stock-based compensation, and recruiting expenses totaling $0.4 million[82]. - Salaries and related expenses decreased by 22.6% for the three months ended September 30, 2024, primarily due to a decrease in bonus expense of $0.8 million[85]. - Selling, general and administrative (SG&A) expenses decreased by 11.4% for the three months ended September 30, 2024, primarily due to decreases in commissions and advertising expenses totaling $0.4 million[87]. Cash Flow and Financing - Net cash used in operating activities for the nine months ended September 30, 2024, was approximately $15.1 million, primarily funding a loss from operations of $15.8 million[97]. - At September 30, 2024, the company had approximately $28.0 million in cash and cash equivalents, down from approximately $43.7 million at December 31, 2023[96]. - The company plans to continue funding operations through existing cash, product sales, and potentially additional equity or debt financing, but there is uncertainty regarding the availability of such financing[100]. - The company closed a $7.0 million registered direct offering, issuing 3,000,000 shares of common stock and 2,934,690 prefunded warrants with an exercise price of $0.001 per share[105]. - The company issued 150,000 shares of common stock in connection with the amendment to the Perceptive Credit Agreement[103]. Financial Covenants and Agreements - The amendment to the Perceptive Credit Agreement reduced the financial covenant trailing twelve-month revenue targets for the Advanced Energy segment to $34.4 million for 2024, $37.0 million for 2025, $52.4 million for 2026, and $60.3 million for 2027[102]. - A maximum operating expense financial covenant was introduced with full year targets of $40.0 million for 2025 and $45.0 million for 2026[102]. - As of September 30, 2024, the company was in compliance with the financial covenants of the Perceptive Credit Agreement, as amended[102]. Inventory and Receivables Management - The company maintains a reserve for uncollectible accounts receivable, analyzing historical bad debt experience and the composition of outstanding receivables[111]. - A reserve for excess and obsolete inventory is maintained, reflecting the potential inability to sell products at prices exceeding current carrying costs[112]. - The company recorded a valuation allowance on net deferred tax assets due to historical losses and expectations of continued losses in the near future[115]. Market Conditions and Challenges - Inflation and global supply chain instability are being addressed through initiatives such as finding alternative suppliers and streamlining the supplier network[117]. Interest Income and Expense - Interest income increased by approximately $0.1 million and $0.8 million for the three and nine months ended September 30, 2024, respectively, due to a higher average balance in investments[91]. - Interest expense increased by approximately $0.8 million and $2.9 million for the three and nine months ended September 30, 2024, respectively, due to cash and noncash interest expense on the Perceptive Credit Agreement[92]. Other Financial Highlights - Gain on sale-leaseback for the nine months ended September 30, 2023, was approximately $2.7 million, resulting from the sale and leaseback of the Clearwater, FL facility[89]. - Purchase commitments totaled approximately $2.7 million, expected to be purchased within the next twelve months[105].

Financial Data and Key Metrics Changes - The company reported total revenue of $11.5 million for Q3 2024, a decrease of 4% compared to $12 million in Q3 2023 [16][22] - Advanced Energy products sales decreased 6% year-over-year to $9.3 million, primarily due to soft generator capital sales [16][22] - Gross profit for Q3 2024 decreased by $1 million or 13% to $7 million, with a gross profit margin of 60.5% compared to 66.6% in the prior year [23] - Net loss attributable to shareholders was $4.7 million or $0.14 per share, compared to $4.6 million or $0.13 per share in the prior year [25] Business Line Data and Key Metrics Changes - Disposable handpiece revenue grew 9% overall and 15% in the United States, now accounting for more than 60% of total Advanced Energy revenue [17][19] - OEM segment sales increased by 3% to approximately $0.1 million in Q3 2024 compared to Q3 2023, driven by increased sales volumes to existing customers [22] Market Data and Key Metrics Changes - The company noted that the macroeconomic environment and the introduction of GLP-1 drugs have negatively impacted procedural volumes, leading to a postponement of aesthetic procedures [16][18] - The company anticipates that the growing population on GLP-1 drugs will create a significant tailwind for Renuvion, the only FDA-approved solution for loose skin [19] Company Strategy and Development Direction - Apyx Medical is implementing an organizational restructuring, reducing its US workforce by nearly 25% to streamline operations and focus resources [7][9] - The company is developing the Ayon body contouring system, which integrates multiple technologies into a single device, aiming for FDA submission by the end of Q1 2025 and a launch in the second half of 2025 [20][31] - Apyx Medical plans to enhance its direct-to-consumer marketing strategy to increase awareness of Renuvion and educate patients on treatment options [19][38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth, citing the potential of the Ayon platform and the expected recovery in the capital equipment market [10][28] - The company anticipates total revenue for 2024 to be in the range of $46.6 million to $47.6 million, representing a decrease of approximately 11% to 9% year-over-year [28][31] Other Important Information - The company announced a $7 million registered direct cash investment from Nantahala Capital Management to strengthen its balance sheet [13][26] - Apyx Medical has amended its credit agreement with Perceptive Advisors, reducing revenue covenants and adding operating expense covenants for 2025 and 2026 [13][26] Q&A Session Summary Question: Where will the growth for Advanced Energy come from in 2025? - Management indicated that growth is expected to come from continued handpiece growth and some contribution from Ayon in the latter half of the year [33] Question: Can you elaborate on the Ayon product and its market potential? - Management described Ayon as a game changer that integrates various technologies, with a focus on making surgical procedures safer and more efficient [34][40] Question: How is the company positioning for growth in 2025 amidst changing market conditions? - Management highlighted an increase in direct-to-consumer marketing efforts and a focus on educating patients about treatment options [38] Question: What are the implications of the reduction in force? - The reduction was across the board, aimed at right-sizing the organization to focus on profitability [44] Question: Will Ayon cannibalize the Renuvion market? - Management clarified that Ayon will not replace Renuvion but will enhance the offerings for existing customers who have the Apyx One generator [39][40] Question: How quickly will the identified cost savings be implemented? - Management confirmed that the cost savings will be realized in the current quarter, with no additional one-time charges expected [49]

Apyx Medical (APYX) came out with a quarterly loss of $0.14 per share versus the Zacks Consensus Estimate of a loss of $0.15. This compares to loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.67%. A quarter ago, it was expected that this medical device maker would post a loss of $0.18 per share when it actually produced a loss of $0.19, delivering a surprise of -5.56%.Over the last four quarters, the company has ...

Exhibit 10.2 SECURITIES PURCHASE AGREEMENT This Securities Purchase Agreement (this "Agreement") is dated as of November 7, 2024, between Apyx Medical Corporation, a Delaware corporation (the "Company"), and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a "Purchaser" and collectively the "Purchasers"). WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities Act (as ...

CLEARWATER, Fla., Nov. 08, 2024 (GLOBE NEWSWIRE) -- Apyx Medical Corporation (NASDAQ:APYX) (“Apyx Medical” or the “Company”), the manufacturer of a proprietary helium plasma and radiofrequency platform technology marketed and sold as Renuvion®, today announced it has entered into a definitive purchase agreement with Nantahala Capital for the purchase and sale in a registered direct offering of 3,000,000 shares of the Company’s common stock at a purchase price of $1.18 per share and pre-funded warrants to pu ...