apyx20250331

apyx20250331_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

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: 001-31885

APYX MEDICAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

11-2644611


(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

5115 Ulmerton Road, Clearwater, FL 33760

(Address of principal executive offices, zip code)

(727) 384-2323

(Registrant’s telephone number)

Securities Registered Pursuant to Section 12 (b) of the Act:

Title of each class			Trading symbol(s)			Name of each exchange on which registered
Common Stock			APYX			Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes: ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes: ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☒	Smaller reporting company	☒

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes: ☐ No ☒

As of May 7, 2025, 37,793,886 shares of the registrant’s $0.001 par value common stock were outstanding.

		Page
Part I.	Financial Information	2

Item 1.	Condensed Consolidated Financial Statements (Unaudited)	2
	Condensed Consolidated Balance Sheets at March 31, 2025 and December 31, 2024	2
	Condensed Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024	3
	Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 2025 and 2024	4
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024	5
	Notes to Condensed Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	21
Item 4.	Controls and Procedures	21

Part II.	Other Information	22

Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3.	Defaults Upon Senior Securities	22
Item 4.	Mine Safety Disclosures	22
Item 5.	Other Information	22
Item 6.	Exhibits	23
	Signatures	24

	*March 31, 2025*
	*(Unaudited)*			*December 31, 2024*
ASSETS
Current assets:
Cash and cash equivalents	$	31,011		$	31,741
Trade accounts receivable, net of allowance of $1,000 and $1,000		11,645			15,480
Inventories, net of provision for obsolescence of $1,018 and $1,032		7,685			7,564
Prepaid expenses and other current assets		1,510			1,655
Total current assets		51,851			56,440
Property and equipment, net of accumulated depreciation and amortization of $4,053 and $3,989		1,910			1,987
Operating lease right-of-use assets		4,584			4,703
Finance lease right-of-use assets		43			48
Other assets		1,772			1,664
Total assets	$	60,160		$	64,842
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	2,305		$	2,615
Accrued expenses and other current liabilities		6,831			7,751
Current portion of operating lease liabilities		354			335
Current portion of finance lease liabilities		20			20
Total current liabilities		9,510			10,721
Long-term debt, net of debt discounts and issuance costs		34,127			33,893
Long-term operating lease liabilities		4,387			4,483
Long-term finance lease liabilities		28			33
Long-term contract liabilities		1,194			1,118
Other liabilities		270			259
Total liabilities		49,516			50,507
EQUITY
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0 issued and outstanding as of March 31, 2025 and December 31, 2024		—			—
Common stock, $0.001 par value; 75,000,000 shares authorized; 37,793,886 issued and outstanding as of March 31, 2025, and December 31, 2024		38			38
Additional paid-in capital		92,534			92,083
Accumulated deficit		(82,061	)		(77,911	)
Total stockholders’ equity		10,511			14,210
Non-controlling interest		133			125
Total equity		10,644			14,335
Total liabilities and equity	$	60,160		$	64,842

	*Three Months Ended*
	*March 31,*
	*2025*			*2024*
Sales	$	9,430		$	10,244
Cost of sales		3,765			4,295
Gross profit		5,665			5,949
Other costs and expenses:
Research and development		804			1,397
Professional services		1,449			1,574
Salaries and related costs		3,081			4,696
Selling, general and administrative		3,382			4,897
Total other costs and expenses		8,716			12,564
Loss from operations		(3,051	)		(6,615	)
Interest income		304			495
Interest expense		(1,376	)		(1,396	)
Other expense, net		—			(21	)
Total other expense, net		(1,072	)		(922	)
Loss before income taxes		(4,123	)		(7,537	)
Income tax expense		49			53
Net loss		(4,172	)		(7,590	)
Net loss attributable to non-controlling interest		(22	)		(14	)
Net loss attributable to stockholders	$	(4,150	)	$	(7,576	)

Loss per share:
Basic and diluted	$	(0.10	)	$	(0.22	)

					*Additional*					*Non-*
	*Common Stock*				*Paid-In*		*Accumulated*			*controlling*			*Total*
	*Shares*		*Par Value*		*Capital*		*Deficit*			*Interest*			*Equity*
Balance at December 31, 2023		34,644	$	35	$	81,114	$	(54,448	)	$	221		$	26,922
Stock-based compensation		—		—		1,128		—			—			1,128
Net loss		—		—		—		(7,576	)		(14	)		(7,590	)
Balance at March 31, 2024		34,644	$	35	$	82,242	$	(62,024	)	$	207		$	20,460

	*Three Months Ended March 31,*
	*2025*			*2024*
Cash flows from operating activities
Net loss	$	(4,172	)	$	(7,590	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		138			157
Provision for inventory obsolescence		28			7
Loss on disposal of property and equipment		—			20
Stock-based compensation		451			1,128
Non-cash lease expense		26			31
Non-cash interest expense		234			221
Changes in operating assets and liabilities:
Trade receivables		3,942			1,478
Prepaid expenses and other assets		37			241
Inventories		(199	)		138
Accounts payable		(331	)		(599	)
Accrued expenses and other liabilities		(856	)		(1,573	)
Net cash used in operating activities		(702	)		(6,341	)
Cash flows from investing activities
Purchases of property and equipment		(55	)		(35	)
Net cash used in investing activities		(55	)		(35	)
Cash flows from financing activities
Repayment of finance lease liabilities		(5	)		(5	)
Contributions from non-controlling interest		30			—
Net cash provided by (used in) financing activities		25			(5	)
Effect of exchange rates on cash		2			11
Net change in cash and cash equivalents		(730	)		(6,370	)
Cash and cash equivalents, beginning of period		31,741			43,652
Cash and cash equivalents, end of period	$	31,011		$	37,282
Cash paid for:
Interest	$	1,145		$	1,175
Income taxes	$	1		$	6

	•	Infiltration
	•	Dual aspiration to facilitate simultaneous users
	•	Ultrasound-assisted liposuction
	•	Electrocoagulation to support procedures requiring removal of excess tissue
	•	Closed loop contouring
	•	Renuvion treatment to address loose and lax skin

	*March 31,*			*December 31,*
(In thousands)	*2025*			*2024*
Raw materials	$	3,958		$	3,973
Work in process		2,115			1,918
Finished goods		2,630			2,705
Gross inventories		8,703			8,596
Less: provision for obsolescence		(1,018	)		(1,032	)
Inventories, net	$	7,685		$	7,564

(In thousands)
2025	$	—
2026		—
2027		2,216
2028		35,284
Total repayments	$	37,500

	*Three Months Ended*
	*March 31,*
(in thousands, except per share data)	*2025*			*2024*
Numerator:
Net loss attributable to stockholders	$	(4,150	)	$	(7,576	)

Denominator:
Weighted average shares outstanding - basic and diluted		40,729			34,644

Loss per share:
Basic and diluted	$	(0.10	)	$	(0.22	)

Anti-dilutive instruments excluded from diluted loss per common share:
Options		7,947			8,513
Warrants		1,500			1,500

				*Weighted average*
	*Number of options*			*exercise price*
Outstanding at December 31, 2024		7,638,458		$	5.50
Granted		842,250		$	1.42
Exercised		—		$	-
Canceled and forfeited		(533,305	)	$	5.46
Outstanding at March 31, 2025		7,947,403		$	5.07

	*March 31,*		*December 31,*
(in thousands)	*2025*		*2024*
Accrued payroll	$	1,146	$	995
Accrued commissions		526		981
Accrued product warranties		424		428
Accrued product liability claim insurance deductibles		2,887		3,168
Accrued professional fees		435		390
Short-term contract liabilities		430		693
Other accrued expenses and current liabilities		983		1,096
Total accrued expenses and other current liabilities	$	6,831	$	7,751

	*2025 Grants*
Strike price	1.42 -1.53
Risk-free rate		4.5	%
Expected dividend yield		—
Expected volatility		96.2% - 96.3%
Expected term (in years)		6
Grant date fair value		1.12 -1.21

	*March 31,*		*December 31,*
(In thousands)	*2025*		*2024*
Long-lived assets by Domestic and International
Domestic	$	5,430	$	5,532
International		1,107		1,206
Total	$	6,537	$	6,738

	Three Months Ended
	March 31,
(In thousands)	2025		2024		Change
Sales by Reportable Segment
Advanced Energy	$	7,887	$	7,453		5.8	%
OEM		1,543		2,791		(44.7	)%
Total	$	9,430	$	10,244		(7.9	)%

Sales by Domestic and International
Domestic	$	6,743	$	6,979		(3.4	)%
International		2,687		3,265		(17.7	)%
Total	$	9,430	$	10,244		(7.9	)%

	*Three Months Ended March 31, 2025*
(In thousands)	*Advanced Energy*		*OEM*		*Corporate & Other*			*Total*
Sales	$	7,887	$	1,543	$	—		$	9,430
Cost of sales		2,320		1,445		—			3,765
Gross profit		5,567		98		—			5,665

Commissions		839		—		—			839
All other expenses⁽ⁱ⁾		4,713		6		3,158			7,877
Income (loss) from operations		15		92		(3,158	)		(3,051	)
Interest income		—		—		304			304
Interest expense		—		—		(1,376	)		(1,376	)
Income (loss) before income taxes		15		92		(4,230	)		(4,123	)
Income tax expense		—		—		49			49
Net income (loss)		15		92		(4,279	)		(4,172	)

	*Three Months Ended March 31, 2024*
(In thousands)	*Advanced Energy*			*OEM*		*Corporate & Other*			*Total*
Sales	$	7,453		$	2,791	$	—		$	10,244
Cost of sales		2,262			2,033		—			4,295
Gross profit		5,191			758		—			5,949

Commissions		717			—		—			717
All other expenses⁽ⁱ⁾		7,414			26		4,407			11,847
(Loss) income from operations		(2,940	)		732		(4,407	)		(6,615	)
Interest income		—			—		495			495
Interest expense		—			—		(1,396	)		(1,396	)
Other loss, net		—			—		(21	)		(21	)
(Loss) income before income taxes		(2,940	)		732		(5,329	)		(7,537	)
Income tax expense		—			—		53			53
Net (loss) income		(2,940	)		732		(5,382	)		(7,590	)

SEC Form 10-Q filed by Apyx Medical Corporation