Apyx Medical(APYX)2025-05-08 16:27Revenue Performance - Total revenue decreased by 7.9%, or approximately $0.8 million, for the three months ended March 31, 2025, compared to the same period in 2024[78]. - Advanced Energy segment sales increased by 5.8%, or approximately $0.4 million, driven by increased volume of single-use handpieces domestically[78]. - OEM segment sales decreased by 44.7%, or approximately $1.2 million, due to decreases in sales volume to existing customers[78]. - International sales represented approximately 28.5% of total revenues for the three months ended March 31, 2025[79]. Profitability and Expenses - Gross profit for the three months ended March 31, 2025, decreased 4.8% to $5.7 million, with a gross margin of 60.1%[80]. - Research and development expenses decreased by 42.4% to $0.8 million, primarily due to lower compensation and benefits costs[82]. - Salaries and related expenses decreased by 34.4% to $3.1 million, attributed to a reduction in workforce and discretionary bonuses[84]. - Selling, general and administrative (SG&A) expenses decreased by 30.9% to $3,382,000 for the three months ended March 31, 2025, compared to $4,897,000 in the same period of 2024, representing 35.9% of sales[85]. Future Outlook and Cost Management - The company anticipates clearance for the AYON device by the FDA in the first half of 2025, with a launch planned later in the year[70]. - The company expects annualized future cost savings of approximately $4.3 million from a workforce reduction of nearly 25%[72]. - The company plans to reduce annual operating expenses below $40 million in 2025 through identified cost savings initiatives[72]. Financial Position - Cash and cash equivalents decreased to approximately $31.0 million as of March 31, 2025, from approximately $31.7 million at December 31, 2024[91]. - Net cash used in operating activities improved to approximately $0.7 million for the three months ended March 31, 2025, compared to $6.3 million in the same period of 2024[92]. - The company has incurred recurring net losses and anticipates that losses will continue in the near term, planning to fund operations through existing cash and potential additional financing[94]. - As of March 31, 2025, the company had purchase commitments totaling approximately $2.9 million, expected to be purchased within the next twelve months[99]. Compliance and Agreements - The company entered into an amendment to the Perceptive Credit Agreement, reducing financial covenant revenue targets for the Advanced Energy segment to $37.0 million for 2025[96]. - The company was in compliance with the financial covenants of the Perceptive Credit Agreement as of March 31, 2025[96]. - Apyx Medical Corporation's financial report was signed by CEO Charles D. Goodwin II and CFO Matthew Hill on May 8, 2025[123][124]. Interest and Taxation - Interest income decreased by approximately $0.2 million to $304,000 for the three months ended March 31, 2025, compared to $495,000 in the same period of 2024, with a percentage of sales decline from 4.8% to 3.2%[86]. - Interest expense remained flat at approximately $1.4 million for both the three months ended March 31, 2025, and 2024[87]. - Income tax expense was approximately $49,000 for the three months ended March 31, 2025, compared to $53,000 in the same period of 2024, with effective tax rates of (1.2)% and (0.7)%, respectively[89].