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 ...

Strengthened balance sheet with a common stock registered direct offering with gross proceeds of approximately $7.0 million; and amended revenue covenants for the Company’s credit agreement with PerceptiveAnnounces cost savings restructuring program to better focus, optimize and streamline operations, including a nearly 25% reduction in U.S. workforce Announces 9% overall growth in single-use handpiece revenue and 15% growth in the U.S.Management to host a conference call today at 8:00 a.m. ET CLEARWATER, F ...

CLEARWATER, Fla., Oct. 25, 2024 (GLOBE NEWSWIRE) -- Apyx® Medical Corporation (NASDAQ:APYX) (“Apyx Medical;” the “Company”), the manufacturer of a proprietary helium plasma and radiofrequency platform technology marketed and sold as Renuvion®, today announced that financial results for the third quarter of fiscal year 2024 will be released before the market opens on Friday, November 8th. Management will host a conference call at 8:00 a.m. Eastern Time on November 8th to discuss the results of the quarter, a ...

Apyx Medical (APYX) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a changing ear ...

Independent survey reveals Renuvion is #1 trusted body contouring technology* with plastic and cosmetic surgeons. CLEARWATER, Fla., Aug. 13, 2024 /PRNewswire/ -- Apyx® Medical Corporation (NASDAQ: APYX) ("Apyx Medical;" the "Company"), a leader in advanced energy technology and the manufacturer of Renuvion®, today announced that doctors named Renuvion as the #1 trusted body contouring technology in an independent survey by Wakefield Research.** This recognition underscores the effectiveness of Renuvion's no ...

Apyx Medical Corporation (NASDAQ:APYX) Q2 2024 Earnings Conference Call August 8, 2024 8:30 AM ET Company Participants Charles Goodwin - President, Chief Executive Officer & Director Matthew Hill - Chief Financial Officer Conference Call Participants Matt Hewitt - Craig-Hallum Capital Frank Takkinen - Lake Street Capitals George Sellers - Stephens Inc Operator Hello, and welcome, ladies and gentlemen, to the Second Quarter of Fiscal Year 2024 Earnings Conference Call for Apyx Medical Corporation. At this ti ...