Apyx Medical Corporation (NASDAQ:APYX) Q3 2022 Earnings Conference Call November 10, 2022 8:00 AM ET Company Participants Charles Goodwin - President and Chief Executive Officer Tara Semb - Chief Financial Officer Conference Call Participants Matt Hewitt - Craig-Hallum Capital Group Matthew O’Brien - Piper Sandler Kyle Bauser - Lake Street Capital Markets Dave Turkaly - JMP Securities Russell Cleveland - RENN Capital Operator Hello and welcome, ladies and gentlemen to Third Quarter of 2022 Earnings Conferen ...

Apyx Medical Corporation (NASDAQ:APYX) Q2 2022 Earnings Conference Call August 11, 2022 5:00 PM ET Company Participants Charles Goodwin – President and Chief Executive Officer Tara Semb – Chief Financial Officer Conference Call Participants Dave Turkaly – JMP Securities Matt Hewitt – Craig-Hallum Capital Group Kyle Bauser – Lake Street Capital Operator Hello, and welcome, ladies and gentlemen, to the Second Quarter of 2022 Earnings Conference Call for Apyx Medical Corporation. At this time, all participants ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock APYX Nasdaq Stock Market, LLC FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 0-1 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock APYX Nasdaq Stock Market, LLC Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☐ Smaller reporting company ☒ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES E ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2020 was $5 million, an 11% decline year over year, at the low end of the guidance range provided [6][7] - Net loss for Q1 2020 was $2 million or $0.06 per diluted share, significantly lower than the net loss of $5.6 million or $0.17 per diluted share in Q1 2019 [35][36] - Cash and cash equivalents as of March 31, 2020, were $51.4 million, down from $58.8 million as of December 31, 2019 [37] Business Line Data and Key Metrics Changes - U.S. sales declined 7% year over year to $3.6 million, while international sales declined 20% year over year to $1.4 million [9] - Advanced Energy business sales declined 9% year over year to $4 million, and OEM business sales declined 20% year over year to $1 million [9][10] - Advanced Energy sales in March declined nearly 50% year over year, with U.S. cosmetic surgery customer sales down nearly 30% year over year [13] Market Data and Key Metrics Changes - The COVID-19 pandemic caused significant disruptions, leading to a sharp decline in procedural trends, particularly in the U.S. and international markets [12][13] - The company experienced a 90% year-over-year decline in sales during April 2020, with a slight recovery noted in the second half of the month [42] Company Strategy and Development Direction - The company is focused on four strategic initiatives to drive long-term growth in the cosmetic surgery market, including pursuing new clinical indications for Renuvion technology [19][30] - Despite the pandemic, the company plans to continue investing in key areas that support future growth, such as clinical studies and manufacturing efficiencies [17][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges posed by COVID-19 but expressed confidence in the company's ability to recover and return to strong growth [24][30] - The company is well-capitalized with over $51 million in cash, allowing it to fund operations for multiple years [25] Other Important Information - The company will not provide full-year 2020 financial guidance due to uncertainties related to the pandemic [37] - The company has implemented cost-reduction measures, including delaying discretionary spending and eliminating bonus accruals [17][36] Q&A Session Summary Question: Has there been heightened demand from Renuvion users as practices reopen? - Management noted that there has been a slight pickup in handpiece demand in late April, with overall sales down 90% year over year for the month [42] Question: How are lean initiatives impacting manufacturing? - Management confirmed that manufacturing efficiencies have improved product margins in the Advanced Energy segment, and they continue to focus on these initiatives [44][45] Question: How did virtual event attendance compare to in-person events? - Virtual events saw significantly higher attendance, with one recent event attracting 123 participants, much larger than typical in-person events [49] Question: How has COVID-19 impacted international device approvals? - Management indicated that there have been no significant issues with device registrations in other countries, and they remain confident in meeting proposed timelines [51] Question: What percentage of customer offices are currently open? - Management stated that it is difficult to quantify the percentage of open offices due to varying state restrictions, but they are encouraged by the lifting of restrictions [54][55] Question: What is the timeline for resuming clinical trials? - Management could not provide a specific timeline for resuming clinical trials, as it depends on clinicians reopening their practices [58]

Financial Performance - Total revenue decreased by 11.2% or approximately $0.6 million for the three months ended March 31, 2020, compared to the same period in 2019[67]. - Advanced Energy segment sales decreased by 8.8% or approximately $0.4 million for the three months ended March 31, 2020, compared to the same period in 2019[67]. - Gross profit for the three months ended March 31, 2020, decreased by 16.3% year-over-year to $2.98 million, with a gross margin of 59.7% compared to 63.3% in 2019[75]. - The company incurred a net loss of $(7.5) million for the first quarter of 2020, which was primarily funded by cash used in operating activities[86]. - For the three months ended March 31, 2020, the company reported a net cash used in operating activities of approximately $7.4 million, compared to $5.1 million in the same period for 2019, reflecting an increase in operating loss[86]. - The company's working capital decreased to approximately $63.6 million as of March 31, 2020, from $64.4 million at December 31, 2019, primarily due to the net loss incurred during the first quarter[85]. Expenses - Research and development expenses increased by 34.2% for the three months ended March 31, 2020, primarily due to spending on two IDE clinical studies[77]. - Selling, general and administrative expenses increased by approximately 28.4% for the three months ended March 31, 2020, primarily due to higher bad debt expense of $0.6 million[81]. - Interest income decreased by 48.9% for the three months ended March 31, 2020, compared to the prior year, due to a lower average balance and yield on investments[83]. International Sales - International sales represented approximately 27.6% of total revenues for the three months ended March 31, 2020, down from 30.5% in the prior year[68]. - International sales are coordinated by sales and marketing personnel at the Clearwater, Florida facility, with products sold in more than 45 countries[68]. COVID-19 Impact - The company expects decreased demand to continue into the second quarter of 2020 and possibly beyond due to the impact of the COVID-19 pandemic[74]. - The company has implemented hiring restrictions and reduced discretionary spending in response to the COVID-19 pandemic[65]. - The company is actively working with customers to collect receivables amid multiple requests for extensions due to the impact of the COVID-19 pandemic[87]. - The company expects that utilizing the net operating loss carryback provisions will significantly help mitigate the working capital impact of the COVID-19 pandemic on sales and operations[86]. Tax and Financial Obligations - The effective tax rate for the three months ended March 31, 2020, was 71.5%, significantly higher than (0.1)% for the same period in 2019, primarily due to the release of a valuation allowance on net operating loss carryforwards[84]. - The company recognized an income tax benefit of approximately $4.9 million in Q1 2020, with an expected tax refund of approximately $3.7 million by the end of 2020[86]. - The CARES Act allows the company to defer payroll tax payments incurred between March 27, 2020, and December 31, 2020, with an expected deferral of between $0.4 million and $0.5 million[87]. - The company has purchase commitments totaling approximately $0.7 million, expected to be fulfilled within the next six months[89]. Legal Matters - The company has accrued $1,000,000 for defense costs related to legal claims, with $820,000 still accrued as of March 31, 2020[122]. - The company is involved in various legal actions concerning its Helium Plasma technology, which may have a material adverse impact on its financial condition if damages exceed insurance coverage limits[119]. - The company intends to vigorously defend against allegations in a class action lawsuit related to public statements about its JPlasma® technology[121]. - The company believes that the allegations in the Amended Complaint are without merit and that claims are adequately covered by insurance[122]. Internal Controls - The company has identified material weaknesses in internal control over financial reporting as of December 31, 2019, and is in the process of remediation[112]. - Management has identified three material weaknesses in internal control over financial reporting as of December 31, 2019, including the need for additional qualified accounting personnel[109]. - The company has taken steps to remediate material weaknesses by hiring a new Chief Financial Officer and a Corporate Controller with relevant experience[114]. - The company continues to monitor the effectiveness of its internal controls over financial reporting on an ongoing basis[115]. - There were no changes in internal control over financial reporting that materially affected the company during the three months ended March 31, 2020[116]. - The company accrues a liability in its consolidated financial statements for known or probable losses that can be reasonably estimated[123]. - If the estimated loss is a range, the minimum amount of the range is recorded when no amount within the range is a better estimate[123]. - Significant judgment is required to estimate the amount and timing of a loss to be recorded, indicating potential variability in actual results[123].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each Class Trading Symbol Name of each Exchange on which registered Common Stock, $.001 Par Value APYX NASDAQ Stock Market LLC FORM 10-K ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: ...