Apyx Medical Corp
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
APYX$2.93-4.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001437749-25-015356
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001437749-25-025422
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 62 previous paragraphs and 67 current paragraphs.
41 unchanged; 18 reworded; 4 added; 3 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 9 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
On May 13, 2025, we announced that we had received 510(k) clearance from the U.S. Food and Drug Administration (the “FDA”) for the AYON Body Contouring System™ (“AYON”). We are actively preparing for a commercial launch of AYON leveraging our relationships with key surgeons in critical geographies. The official commercial launch of AYON will commence in the second half of 2025.
Current report
This initial 510(k) clearance for AYON covers a wide variety of aesthetic treatments, including Renuvion to address loose and lax skin, ultrasound-assisted liposuction, electrocoagulation to support procedures requiring removal of excess tissue, along with several others. We intend to expand the cleared indications for AYON, to include power liposuction, with an additional 510(k) submission planned for later this year.
Current report
Total revenue decreased by 7.1%, or approximately $1.6 million, for the six months ended June 30, 2025 when compared with the six months ended June 30, 2024. Advanced Energy segment sales increased 2.0%, or approximately $0.3 million, for the six months ended June 30, 2025 when compared with the six months ended June 30, 2024. In the second quarter of 2025, in the U.S., we took preorders for the AYON system, which includes an Apyx One Console. For customers that did not already have an Apyx One Console, we shipped the Apyx One Console during the quarter and expect to ship the balance of the AYON system in the third and fourth quarters. OEM segment sales decreased 37.3%, or approximately $1.9 million, for the six months ended June 30, 2025 when compared with the six months ended June 30, 2024. The decrease in OEM sales was due to decreases in sales volume to existing customers, including Symmetry Surgical under our 10-year generator manufacturing and supply agreement.
Current report
Professional services expense decreased 16.3% for the six months ended June 30, 2025, primarily due to a decreases in legal expenses ($0.3 million), physician and marketing consulting ($0.1 million), recruiting expenses ($0.1 million) and accounting and audit fees ($0.1 million).
Removed paragraphs (3)
Previous report
On January 6, 2025, we announced that we had submitted a 510(k) premarket notification to the FDA for AYON.
Previous report
AYON was developed with a focus on versatility and innovation. AYON is designed to be the only device a surgeon needs for comprehensive body contouring solutions. This all-in-one system integrates advanced modalities to perform multiple functions seamlessly, removing unwanted fat, enhancing tissue contraction and addressing the full range of patient needs from contouring to aesthetic enhancement. The initial submission for AYON includes the following:
Previous report
We anticipate clearance by the FDA in the first half of 2025 and launch later in the year. During 2025, we plan to expand the indications with an additional 510(k) submission for AYON to include power assisted liposuction.
Reworded paragraphs (18)
Previous wording
We operate in two business segments: OEM and Advanced Energy. The OEM segment is primarily development and manufacturing contract and product driven. The Advanced Energy segment sells both capital equipment and consumables in the form of a single use handpiece. Sales of handpiece units are a substantial portion of our business and for the three months ended March 31, 2025 and 2024, we sold approximately 19,000 and 21,000 units, respectively. In the first quarter of 2025, our handpiece revenue grew 1% overall and 14% in the United States and handpiece revenue now accounts for more than 60% of our total Advanced Energy revenue.
Current wording
We operate in two business segments: OEM and Advanced Energy. The OEM segment is primarily development and manufacturing contract and product driven. The Advanced Energy segment sells both capital equipment and consumables in the form of a single-use handpiece. Sales of handpiece units are a substantial portion of our business and for the six months ended June 30, 2025 and 2024, we sold approximately 40,000 and 45,000 units, respectively, as a result of an overall lower number of liposuction procedures and commercial focus on the launch of AYON in the U.S. Handpiece revenue accounts for more than 60% of our total Advanced Energy revenue.
Previous wording
We believe the increased use of GLP-1s had an initial negative impact on the revenue for plastic and cosmetic surgeons and created uncertainty in the aesthetic space. However, we believe, as these drugs will have a ripple effect that will eventually drive people towards plastic surgery and may provide a tailwind for sales of our Renuvion products. Rapid weight loss caused by these drugs can contribute to loose skin, particularly in the curvier areas of the body. To address this, the cosmetic surgery market focuses on body contouring. Body contouring is a customizable treatment for patients to target specific fat deposits, engage in the transfer of fat, and treatments to address loose or lax skin. Renuvion is the only FDA approved device for the treatment of this issue post liposuction. Additionally, Renuvion may be used to treat skin laxity without the use of liposuction, potentially increasing the total available market for our products.
Current wording
We believe the increased use of GLP-1s had an initial negative impact on the revenue for plastic and cosmetic surgeons and created uncertainty in the aesthetic space. However, we believe, that the use of these drugs will have a ripple effect which will drive people towards plastic surgery and may provide a tailwind for sales of our Renuvion products. Rapid weight loss caused by these drugs can contribute to loose skin. To address this, the cosmetic surgery market focuses on body contouring. Body contouring is a customizable treatment for patients to target specific fat deposits, engage in the transfer of fat, and treatments to address loose or lax skin. Renuvion is the only FDA approved device for the treatment of this issue post liposuction. Additionally, Renuvion may be used to treat skin laxity without the use of liposuction, potentially increasing the total available market for our products.
Previous wording
We have incurred recurring net losses and cash outflows from operations and we anticipate that losses will continue in the near term. We plan to continue to fund our operations and capital funding needs through existing cash, sales of our products and if necessary additional equity and/or debt financing. However, we cannot be certain that additional financing will be available when needed or that, if available, financing will be obtained on terms acceptable to us. The sale of additional equity would result in dilution to our stockholders. Incurring additional debt financing would result in further debt service obligations, and the instruments governing such debt could provide for operating and financing covenants that would restrict our operations. If we are unable to raise additional capital in sufficient amounts or on acceptable terms, it may be necessary to delay, limit, reduce, or terminate our sales, marketing and product development. Any of these actions could harm our business, results of operations and prospects.
Current wording
We have incurred recurring net losses and cash outflows from operations and we anticipate that losses will continue in the near term. We plan to continue to fund our operations and capital funding needs through existing cash, sales of our products and, if necessary, additional equity and/or debt financing. However, we cannot be certain that additional financing will be available when needed or that, if available, financing will be obtained on terms acceptable to us. The sale of additional equity would result in dilution to our stockholders. Incurring additional debt financing would result in further debt service obligations, and the instruments governing such debt could provide for operating and financing covenants that would restrict our operations. If we are unable to raise additional capital in sufficient amounts or on acceptable terms, it may be necessary to delay, limit, reduce, or terminate our sales, marketing and product development. Any of these actions could harm our business, prospects and results of operations.
Previous wording
Total revenue decreased by 7.9%, or approximately $0.8 million, for the three months ended March 31, 2025 when compared with the three months ended March 31, 2024. Advanced Energy segment sales increased 5.8%, or approximately $0.4 million, for the three months ended March 31, 2025 when compared with the three months ended March 31, 2024. The Advanced Energy sales increase was driven by an increased volume of single-use handpieces domestically, domestic and international sales of upgrades to the Apyx One Console and domestic sales of new generators. These increases were partially offset by a lower average selling price of generators to domestic customers and a general decrease in international sales. OEM segment sales decreased 44.7%, or approximately $1.2 million, for the three months ended March 31, 2025 when compared with the three months ended March 31, 2024. The decrease in OEM sales was due to decreases in sales volume to existing customers, excluding Symmetry Surgical under our 10-year generator manufacturing and supply agreement.
Current wording
Total revenue decreased by 6.4%, or approximately $0.8 million, for the three months ended June 30, 2025 when compared with the three months ended June 30, 2024. Advanced Energy segment sales decreased 1.0%, or approximately $0.1 million, for the three months ended June 30, 2025 when compared with the three months ended June 30, 2024. In the second quarter of 2025, in the U.S., we took preorders for the AYON system, which includes an Apyx One Console. For customers that did not already have an Apyx One Console, we shipped the Apyx One Console during the quarter and expect to ship the balance of the AYON system in the third and fourth quarters. OEM segment sales decreased 28.5%, or approximately $0.7 million, for the three months ended June 30, 2025 when compared with the three months ended June 30, 2024. The decrease in OEM sales was due to decreases in sales volume to existing customers, including Symmetry Surgical under our 10-year generator manufacturing and supply agreement.
Previous wording
International sales represented approximately 28.5% and 31.9% of total revenues for the three months ended March 31, 2025 and 2024, respectively. Management estimates our products have been sold in more than 60 countries through local dealers coordinated by sales and marketing personnel through our facilities in Clearwater, Florida and Sofia, Bulgaria.
Current wording
International sales represented approximately 31.6% and 30.2% of total revenues for the three and six months ended June 30, 2025, respectively, as compared with 28.5% and 30.0% of total revenues for the same period in the prior year. Management estimates our products have been sold in more than 60 countries through local dealers coordinated by sales and marketing personnel through our facilities in Clearwater, Florida and Sofia, Bulgaria.
Previous wording
Gross profit for the three months ended March 31, 2025, decreased 4.8% to $5.7 million, compared to $5.9 million for the same period in the prior year. Gross margin for the three months ended March 31, 2025, was 60.1%, compared to 58.1% for the same period in 2024. The increase in gross margin for the three months ended March 31, 2025 from the prior year period is primarily attributable to mix between our segments with Advanced Energy comprising a higher percentage of total sales and geographic mix within our Advanced Energy segment, with domestic sales comprising a higher percentage of total sales. These increases were partially offset by a decrease in the average selling price of generators to domestic customers and product mix within our OEM segment.
Current wording
Gross profit for the three months ended June 30, 2025, decreased 5.5% to $7.1 million, compared to $7.5 million for the same period in the prior year. Gross margin for the three months ended June 30, 2025, was 62.3%, compared to 61.7% for the same period in 2024. The increase in gross margin for the three months ended June 30, 2025 from the prior year period is primarily attributable to mix between our segments with Advanced Energy comprising a higher percentage of total sales and product mix within our Advanced Energy segment. These increases were partially offset by a decrease in the average selling price of generators to domestic customers, geographic mix within our Advanced Energy segment, with international sales comprising a higher percentage of total sales and product mix within our OEM segment.
Previous wording
Research and development expenses decreased 42.4% for the three months ended March 31, 2025, primarily due to lower compensation and benefits costs ($0.4 million) and lower spending on our product development initiatives and clinical studies ($0.2 million).
Current wording
Research and development expenses decreased 42.1% for the three months ended June 30, 2025, primarily due to lower compensation and benefits costs ($0.4 million) and lower spending on our product development initiatives and clinical studies ($0.2 million).
Previous wording
Professional services expense decreased 7.9% for the three months ended March 31, 2025, primarily due to a decrease in recruiting expenses ($0.1 million).
Current wording
Professional services expense decreased 22.7% for the three months ended June 30, 2025, primarily due to a decreases in legal expenses ($0.3 million), physician and marketing consulting ($0.1 million) and accounting and audit fees ($0.1 million).
Previous wording
During the three months ended March 31, 2025, salaries and related expenses decreased 34.4%, primarily due to a decrease in salaries and benefits ($0.6 million), which was due to lower headcount following our reduction in force in the fourth quarter of 2024, bonus expense ($0.5 million), as bonuses for 2025 are discretionary, and lower stock based compensation expense ($0.5 million).
Current wording
During the three months ended June 30, 2025, salaries and related expenses decreased 34.4%, primarily due to a decrease in salaries and benefits ($0.7 million), which was due to lower headcount following our reduction in force in the fourth quarter of 2024, lower stock based compensation expense ($0.5 million) and bonus expense ($0.4 million), as bonuses for 2025 are discretionary.
Previous wording
During the three months ended March 31, 2025, selling, general and administrative expense decreased 30.9%, primarily due to lower travel expenses ($0.6 million), meeting and training costs ($0.5 million), regulatory expenses ($0.2 million), board of directors cash compensation ($0.1 million), sales and property taxes ($0.1 million), payment processing fees ($0.1 million) and foreign currency gains and losses ($0.1 million). These decreases were partially offset by higher advertising expense, including trade show fees and related costs ($0.2 million) and increases in commissions ($0.1 million).
Current wording
During the six months ended June 30, 2025, selling, general and administrative expense decreased 22.7%, primarily due to lower travel expenses ($0.8 million), meeting and training costs ($0.7 million), regulatory expenses ($0.2 million), board of directors cash compensation ($0.2 million), foreign currency gains and losses ($0.2 million), sales and property taxes ($0.1 million), payment processing fees ($0.1 million) and commissions ($0.1 million). These decreases were partially offset by higher advertising expense, including trade show fees and related costs ($0.2 million) and allowances for credit losses ($0.1 million).
Previous wording
Interest income decreased approximately $0.2 million for the three months ended March 31, 2025, when compared with the same period in the prior year. This decrease is due to a lower average balance and lower average yield in our investments in money market funds and U.S. Treasury securities included in cash and cash equivalents.
Current wording
Interest income decreased approximately $0.2 million and $0.4 million for the three and six months ended June 30, 2025, respectively, when compared with the same period in the prior year. These decreases are due to a lower average balance and lower average yield in our investments in money market funds and U.S. Treasury securities included in cash and cash equivalents.
Previous wording
Interest expense was flat at approximately $1.4 million for the three months ended March 31, 2025 and 2024.
Current wording
Interest expense was flat at approximately $1.4 million and $2.8 million for the three and six months ended June 30, 2025 and 2024, respectively.
Previous wording
Income tax expense was approximately $49,000 and $53,000 with effective tax rates of (1.2)% and (0.7)% for the three months ended March 31, 2025 and 2024, respectively. For the three months ended March 31, 2025 and 2024, the effective rate differs from the statutory rate primarily due to the full valuation allowance recorded on the net operating loss (“NOL”) and net deferred tax assets generated during the period.
Current wording
Income tax expense was approximately $49,000 and $50,000 with effective tax rates of (1.3)% and (0.8)% for the three months ended June 30, 2025 and 2024, respectively. Income tax expense was approximately $98,000 and $103,000 with effective tax rates of (1.3)% and (0.7)% for the six months ended June 30, 2025 and 2024, respectively. For the three and six months ended June 30, 2025 and 2024, the effective rate differs from the statutory rate primarily due to the full valuation allowance recorded on the net operating loss (“NOL”) and net deferred tax assets generated during the period.
Previous wording
At March 31, 2025, we had approximately $31.0 million in cash and cash equivalents as compared to approximately $31.7 million in cash and cash equivalents at December 31, 2024. Our working capital at March 31, 2025 was approximately $42.3 million compared with $45.7 million at December 31, 2024.
Current wording
At June 30, 2025, we had approximately $29.3 million in cash and cash equivalents as compared to approximately $31.7 million in cash and cash equivalents at December 31, 2024. Our working capital at June 30, 2025 was approximately $39.3 million compared with $45.7 million at December 31, 2024.
Previous wording
For the three months ended March 31, 2025, net cash used in operating activities was approximately $0.7 million, compared with net cash used in operating activities of approximately $6.3 million in the three months ended March 31, 2024. The decrease in cash used in operations is primarily due to improvements in our accounts receivable position and the decrease in operating loss, which is a result of the cost cutting measures implemented in the fourth quarter of 2024, compared to the same period in the prior year.
Current wording
For the six months ended June 30, 2025, net cash used in operating activities was approximately $1.9 million, compared with net cash used in operating activities of approximately $10.7 million in the six months ended June 30, 2024. The decrease in cash used in operations is primarily due to improvements in our accounts receivable position and the decrease in operating loss, which is a result of the cost cutting measures implemented in the fourth quarter of 2024, compared to the same period in the prior year.
Previous wording
Net cash used in investing activities for the three months ended March 31, 2025 and 2024, was $55,000 and $35,000, respectively, related to investments in property and equipment.
Current wording
Net cash used in investing activities for the six months ended June 30, 2025 and 2024, was $0.3 million related to investments in property and equipment.
Previous wording
Net cash provided by financing activities for the three months ended March 31, 2025 was $25,000 and was primarily related to contributions to the China JV by the non-controlling member.
Current wording
Net cash provided by financing activities for the six months ended June 30, 2025 was $50,000 and was primarily related to contributions to the China JV by the non-controlling member.
Previous wording
At March 31, 2025, we had purchase commitments totaling approximately $2.9 million, substantially all of which is expected to be purchased within the next twelve months.
Current wording
At June 30, 2025, we had purchase commitments totaling approximately $3.6 million, substantially all of which is expected to be purchased within the next twelve months.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Gross profit for the six months ended June 30, 2025, decreased 5.2% to $12.7 million, compared to $13.4 million for the same period in the prior year. Gross margin for the six months ended June 30, 2025, was 61.3%, compared to 60.0% for the same period in 2024. The increase in gross margin for the six months ended June 30, 2025 from the prior year period is primarily attributable to mix between our segments with Advanced Energy comprising a higher percentage of total sales and product mix within our Advanced Energy segment. These increases were partially offset by a decrease in the average selling price of generators to domestic customers and product mix within our OEM segment.
Current report — wording carried from elsewhere
Research and development expenses decreased 42.3% for the six months ended June 30, 2025, primarily due to lower compensation and benefits costs ($0.8 million) and lower spending on our product development initiatives and clinical studies ($0.4 million).
Current report — wording carried from elsewhere
During the six months ended June 30, 2025, salaries and related expenses decreased 34.4%, primarily due to a decrease in salaries and benefits ($1.4 million), which was due to lower headcount following our reduction in force in the fourth quarter of 2024, lower stock based compensation expense ($0.9 million) and bonus expense ($0.9 million), as bonuses for 2025 are discretionary.
Current report — wording carried from elsewhere
During the three months ended June 30, 2025, selling, general and administrative expense decreased 14.4%, primarily due to lower meeting and training costs ($0.2 million), commissions ($0.2 million), travel expenses ($0.1 million), board of directors cash compensation ($0.1 million) and foreign currency gains and losses ($0.1 million). These decreases were partially offset by an increase in allowances for credit losses ($0.1 million).