apyx20260331

apyx20260331_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, 2026

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 6, 2026, 41,873,951 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, 2026 and December 31, 2025	2
	Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025	3
	Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 2026 and 2025	4
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025	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	22
Item 4.	Controls and Procedures	22

Part II.	Other Information	23

Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3.	Defaults Upon Senior Securities	23
Item 4.	Mine Safety Disclosures	23
Item 5.	Other Information	23
Item 6.	Exhibits	24
	Signatures	25

	*March 31, 2026*
	*(Unaudited)*			*December 31, 2025*
ASSETS
Current assets:
Cash and cash equivalents	$	31,137		$	31,740
Trade accounts receivable, net of allowance of $1,014 and $1,020		12,755			16,776
Inventories, net of provision for obsolescence of $1,100 and $1,207		9,536			8,602
Prepaid expenses and other current assets		1,367			1,353
Total current assets		54,795			58,471
Property and equipment, net of accumulated depreciation and amortization of $4,344 and $4,293		2,235			2,371
Operating lease right-of-use assets		4,092			4,218
Finance lease right-of-use assets		22			28
Other assets		1,881			1,752
Total assets	$	63,025		$	66,840
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	2,629		$	3,058
Accrued expenses and other current liabilities		6,377			8,214
Current portion of operating lease liabilities		420			407
Current portion of finance lease liabilities		21			21
Total current liabilities		9,447			11,700
Long-term debt, net of debt discounts and issuance costs		35,087			34,849
Long-term operating lease liabilities		3,926			4,051
Long-term finance lease liabilities		7			12
Long-term contract liabilities		1,131			1,050
Other liabilities		339			347
Total liabilities		49,937			52,009
EQUITY
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0 issued and outstanding as of March 31, 2026 and December 31, 2025		—			—
Common stock, $0.001 par value; 75,000,000 shares authorized; 41,868,436 issued and outstanding as of March 31, 2026, and 41,785,946 issued and outstanding as of December 31, 2025		42			42
Additional paid-in capital		104,020			103,620
Accumulated deficit		(91,230	)		(89,122	)
Total stockholders’ equity		12,832			14,540
Non-controlling interest		256			291
Total equity		13,088			14,831
Total liabilities and equity	$	63,025		$	66,840

	*Three Months Ended*
	*March 31,*
	*2026*			*2025*
Sales, net	$	12,490		$	9,430
Cost of sales		4,565			3,765
Gross profit		7,925			5,665
Other costs and expenses:
Research and development		765			804
Professional services		1,242			1,365
Salaries and related costs		3,253			3,081
Selling, general and administrative		3,576			3,466
Total other costs and expenses		8,836			8,716
Loss from operations		(911	)		(3,051	)
Interest income		244			304
Interest expense		(1,369	)		(1,376	)
Other income, net		36			—
Total other expense, net		(1,089	)		(1,072	)
Loss before income taxes		(2,000	)		(4,123	)
Income tax expense		143			49
Net loss		(2,143	)		(4,172	)
Net loss attributable to non-controlling interest		(35	)		(22	)
Net loss attributable to stockholders	$	(2,108	)	$	(4,150	)

Loss per share:
Basic and diluted	$	(0.05	)	$	(0.10	)

					*Additional*					*Non-*
	*Common Stock*				*Paid-In*		*Accumulated*			*controlling*			*Total*
	*Shares*		*Par Value*		*Capital*		*Deficit*			*Interest*			*Equity*
Balance at December 31, 2024		37,794	$	38	$	92,083	$	(77,911	)	$	125		$	14,335
Contributions from non-controlling interest		—		—		—		—			30			30
Stock-based compensation		—		—		451		—			—			451
Net loss		—		—		—		(4,150	)		(22	)		(4,172	)
Balance at March 31, 2025		37,794	$	38	$	92,534	$	(82,061	)	$	133		$	10,644

	*Three Months Ended March 31,*
	*2026*			*2025*
Cash flows from operating activities
Net loss	$	(2,143	)	$	(4,172	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		202			138
Provision for inventory obsolescence		10			28
Stock-based compensation		312			451
Non-cash lease expense		20			26
Non-cash interest expense		238			234
Changes in operating assets and liabilities:
Trade receivables		3,952			3,942
Prepaid expenses and other assets		(148	)		37
Inventories		(845	)		(199	)
Accounts payable		(411	)		(331	)
Accrued expenses and other liabilities		(1,759	)		(856	)
Net cash used in operating activities		(572	)		(702	)
Cash flows from investing activities
Purchases of property and equipment		(60	)		(55	)
Net cash used in investing activities		(60	)		(55	)
Cash flows from financing activities
Proceeds from stock option exercises		88			—
Repayment of finance lease liabilities		(5	)		(5	)
Contributions from non-controlling interest		—			30
Net cash provided by financing activities		83			25
Effect of exchange rates on cash		(54	)		2
Net change in cash and cash equivalents		(603	)		(730	)
Cash and cash equivalents, beginning of period		31,740			31,741
Cash and cash equivalents, end of period	$	31,137		$	31,011
Cash paid for:
Interest	$	1,131		$	1,145
Income taxes	$	—		$	1

	*March 31,*			*December 31,*
(In thousands)	*2026*			*2025*
Raw materials	$	4,967		$	4,885
Work in process		2,316			2,195
Finished goods		3,353			2,729
Gross inventories		10,636			9,809
Less: provision for obsolescence		(1,100	)		(1,207	)
Inventories, net	$	9,536		$	8,602

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

	*Three Months Ended*
	*March 31,*
(in thousands, except per share data)	*2026*			*2025*
Numerator:
Net loss attributable to stockholders	$	(2,108	)	$	(4,150	)

Denominator:
Weighted average shares outstanding - basic and diluted		43,742			40,729

Loss per share:
Basic and diluted	$	(0.05	)	$	(0.10	)

Anti-dilutive instruments excluded from diluted loss per common share:
Options		7,405			7,947
Warrants		1,500			1,500

				*Weighted average*
	*Number of options*			*exercise price*
Outstanding at December 31, 2025		7,579,377		$	4.54
Granted		—		$	-
Exercised		(119,081	)	$	1.91
Canceled and forfeited		(55,000	)	$	1.86
Outstanding at March 31, 2026		7,405,296		$	4.60

	*Three Months Ended March 31, 2026*
(In thousands)	*Surgical Aesthetics*		*OEM*		*Corporate & Other*			*Total*
Sales, net	$	10,734	$	1,756	$	—		$	12,490
Cost of sales		3,260		1,305		—			4,565
Gross profit		7,474		451		—			7,925

Commissions		1,066		—		—			1,066
All other expenses⁽ⁱ⁾		4,423		8		3,339			7,770
Income (loss) from operations		1,985		443		(3,339	)		(911	)
Interest income		—		—		244			244
Interest expense		—		—		(1,369	)		(1,369	)
Other income, net		—		—		36			36
Income (loss) before income taxes		1,985		443		(4,428	)		(2,000	)
Income tax expense		—		—		143			143
Net income (loss)		1,985		443		(4,571	)		(2,143	)

	*March 31,*		*December 31,*
(in thousands)	*2026*		*2025*
Accrued payroll	$	1,217	$	633
Accrued bonuses		—		1,749
Accrued commissions		607		958
Accrued product warranties		441		434
Accrued product liability claim insurance deductibles		2,174		2,263
Accrued professional fees		290		320
Short-term contract liabilities		714		643
Other accrued expenses and current liabilities		934		1,214
Total accrued expenses and other current liabilities	$	6,377	$	8,214

	*March 31,*		*December 31,*
(In thousands)	*2026*		*2025*
Long-lived assets by Domestic and International
Domestic	$	5,433	$	5,614
International		916		1,003
Total	$	6,349	$	6,617

	Three Months Ended
	March 31,
(In thousands)	2026		2025		Change
Sales by Reportable Segment
Surgical Aesthetics	$	10,734	$	7,887		36.1	%
OEM		1,756		1,543		13.8	%
Total	$	12,490	$	9,430		32.4	%

Sales by Domestic and International
Domestic	$	8,112	$	6,743		20.3	%
International		4,378		2,687		62.9	%
Total	$	12,490	$	9,430		32.4	%

	Three Months Ended
	March 31,
(In thousands)	2026			2025			Change
Cost of sales	$	4,565		$	3,765			21.2	%
Percentage of sales		36.5	%		39.9	%
Gross profit	$	7,925		$	5,665			39.9	%
Percentage of sales		63.5	%		60.1	%

	*Three Months Ended March 31, 2025*
(In thousands)	*Surgical Aesthetics*		*OEM*		*Corporate & Other*			*Total*
Sales, net	$	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	)

3.1			Articles of Incorporation of the Registrant (Incorporated by reference to Exhibit 3.1 to the Registrant’s report on Form 10-K/A filed on March 31, 2011)
3.2			By laws of the Registrant (Incorporated by reference to Exhibit 3.2 to the Registrant’s report on Form 10-K/A filed on March 31, 2011)
3.3			Certificate of Amendment of the Certificate of Incorporation of the Registrant (Incorporated by reference to Exhibit 3.5 to the Registrant’s Quarterly Report on Form 10-Q filed on November 3, 2017)
3.4			Certificate of Elimination (Incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on May 3, 2018)
3.5			Certificate of Amendment of the Certificate of Incorporation of the Registrant (Incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on December 28, 2018)
3.6			Certificate of Amendment to the Certificate of Incorporation of Registrant (Incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on December 12, 2025)
31.1*			Certification pursuant to Section 302 of Sarbanes-Oxley Act of 2002
31.2*			Certification pursuant to Section 302 of Sarbanes-Oxley Act of 2002
32.1*			Certification pursuant to Section 906 of Sarbanes-Oxley Act of 2002
32.2*			Certification pursuant to Section 906 of Sarbanes-Oxley Act of 2002
101.INS**			Inline XBRL Instance Document
101.SCH**			Inline XBRL Taxonomy Extension Schema Document
101.CAL**			Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**			Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB**			Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE**			Inline XBRL Taxonomy Extension Label Presentation Document
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

SEC Form 10-Q filed by Apyx Medical Corporation