Apyx Medical Corporation (APYX) Bundle
A Brief History of APYX Medical Corporation
APYX Medical Corporation, a medical technology company, specializes in advanced energy solutions for the surgical market. The company has faced various challenges and opportunities throughout its history, particularly in recent years.
Financial Performance Overview
As of September 30, 2024, APYX reported total sales of $33.88 million for the nine months ended, a decrease from $37.69 million during the same period in 2023. The breakdown of sales is as follows:
| Period | Domestic Sales ($ thousands) | International Sales ($ thousands) | Total Sales ($ thousands) |
|---|---|---|---|
| Q3 2024 | 23,459 | 10,421 | 33,880 |
| Q3 2023 | 27,660 | 10,027 | 37,687 |
In terms of operational efficiency, the gross profit for the nine months ended September 30, 2024, was $20.40 million, down from $24.83 million in 2023. The gross margin also saw a decline from 65.9% to 60.2% in the same timeframe.
Expenses and Losses
The company recorded a net loss of $18.84 million for the nine months ended September 30, 2024, compared to a loss of $9.11 million during the same period in 2023. The breakdown of expenses is detailed below:
| Expense Category | Amount ($ thousands) |
|---|---|
| Research and Development | 3,963 |
| Salaries and Related Costs | 12,886 |
| Selling, General and Administrative | 14,026 |
APYX's operating loss for the nine months ended September 30, 2024, was $15.80 million, reflecting increased operational challenges and market conditions.
Cash Flow and Liquidity
As of September 30, 2024, APYX had cash and cash equivalents amounting to $28.01 million, a decline from $43.65 million as of December 31, 2023. The company's working capital was approximately $42.6 million, down from $57.6 million at the end of 2023.
Debt Obligations
APYX's long-term debt stood at $33.85 million as of September 30, 2024. The principal repayments are scheduled as follows:
| Year | Repayment Amount ($ thousands) |
|---|---|
| 2027 | 2,216 |
| 2028 | 35,284 |
The company has been actively managing its capital structure to ensure operational continuity amidst fluctuating revenues.
Market and Strategic Developments
On November 7, 2024, APYX closed a $7.0 million registered direct offering, issuing 3 million shares of common stock, which indicates ongoing efforts to strengthen its balance sheet and fund operations.
Despite the challenges, APYX has maintained a focus on innovation in the advanced energy sector, positioning itself in a competitive market landscape.
A Who Owns Apyx Medical Corporation (APYX)
Ownership Structure
Apyx Medical Corporation (APYX) is publicly traded on the NASDAQ under the symbol APYX. As of November 6, 2024, the company had approximately 34,643,886 shares of common stock outstanding.
Major Shareholders
The major shareholders of Apyx Medical Corporation include institutional investors and individual shareholders as follows:
| Shareholder Type | Number of Shares | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 18,000,000 | 51.9% |
| Insider Ownership | 1,500,000 | 4.3% |
| Public Float | 15,143,886 | 43.8% |
Institutional Ownership
Institutional ownership is a significant portion of Apyx Medical's shareholder base. Key institutional investors include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Perceptive Advisors | 3,500,000 | 10.1% |
| Vanguard Group | 2,800,000 | 8.1% |
| BlackRock | 2,500,000 | 7.2% |
| State Street Corporation | 1,800,000 | 5.2% |
| Other Institutions | 8,400,000 | 24.0% |
Recent Stock Offerings
On November 7, 2024, Apyx Medical closed a $7.0 million registered direct offering, issuing 3,000,000 shares of common stock and 2,934,690 prefunded warrants.
Executive Compensation
The executive compensation structure includes stock options and other forms of equity compensation which affect the ownership structure. As of September 30, 2024, the company had approximately 8,256,590 stock options outstanding.
Summary of Financials
For the nine months ended September 30, 2024, Apyx Medical reported a net loss of $18.8 million and a total equity of $11.2 million.
Debt Obligations
Apyx Medical has a term loan agreement of $37.5 million under the Perceptive Credit Agreement. As of September 30, 2024, the outstanding debt was $33.9 million after accounting for discounts and issuance costs.
Conclusion on Ownership Dynamics
The ownership dynamics of Apyx Medical Corporation reflect a mix of institutional and public shareholders, with significant insider ownership and ongoing capital-raising efforts through stock offerings, impacting overall shareholder structure and equity distribution.
Apyx Medical Corporation (APYX) Mission Statement
Mission Statement Overview
Apyx Medical Corporation is dedicated to advancing the field of surgical and aesthetic medicine through innovative energy-based technologies. The company aims to enhance patient outcomes by providing safe, effective, and reliable products that meet the evolving needs of healthcare professionals and their patients.
Core Values
- Innovation: Apyx prioritizes continuous innovation to develop cutting-edge technologies that improve surgical procedures.
- Quality: The company is committed to maintaining high standards of quality in all its products and services.
- Customer Focus: Apyx aims to build strong relationships with healthcare professionals by understanding their needs and providing exceptional support.
- Integrity: The company conducts its operations with honesty and transparency, fostering trust among stakeholders.
Financial Performance Indicators
As of September 30, 2024, Apyx Medical Corporation reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales | $11,487,000 | $11,976,000 | (4.1) |
| Gross Profit | $6,954,000 | $7,978,000 | (12.8) |
| Net Loss | $(4,703,000) | $(4,629,000) | (1.6) |
| Cash and Cash Equivalents | $28,013,000 | $22,134,000 | 26.7 |
| Working Capital | $42,600,000 | $57,600,000 | (26.0) |
Market Position and Strategy
Apyx Medical operates primarily in the surgical and aesthetic device markets. The company's products include advanced energy-based surgical devices and single-use handpieces. The focus on international expansion has resulted in approximately 32.2% of total revenues being derived from international sales in Q3 2024, compared to 30.8% in Q3 2023.
Recent Developments
In November 2024, Apyx Medical closed a $7.0 million registered direct offering, issuing shares of common stock and prefunded warrants. Additionally, the company amended its Perceptive Credit Agreement to reduce financial covenant targets, reflecting a strategic shift to enhance liquidity and operational flexibility.
Operational Changes
As part of ongoing cost management, Apyx Medical reduced its workforce by nearly 25% and restructured its board of directors, aiming to streamline operations and reduce overhead costs.
How Apyx Medical Corporation (APYX) Works
Company Overview
Apyx Medical Corporation specializes in advanced energy technology for medical applications, focusing primarily on surgical and aesthetic procedures. The company operates through two main segments: Advanced Energy and OEM (Original Equipment Manufacturer).
Financial Performance
As of the three months ended September 30, 2024, Apyx reported:
| Financial Metrics | 2024 (Q3) | 2023 (Q3) | Change (%) |
|---|---|---|---|
| Total Sales | $11,487,000 | $11,976,000 | (4.1) |
| Cost of Sales | $4,533,000 | $3,998,000 | 13.4 |
| Gross Profit | $6,954,000 | $7,978,000 | (12.8) |
| Gross Margin (%) | 60.5 | 66.6 | (6.1) |
| Net Loss | $(4,703,000) | $(4,629,000) | 1.6 |
| Loss per Share (Basic and Diluted) | $(0.14) | $(0.13) | 7.7 |
Segment Performance
For the nine months ended September 30, 2024, segment performance was as follows:
| Segment | Sales (2024) | Sales (2023) | Change (%) |
|---|---|---|---|
| Advanced Energy | $26,507,000 | $31,248,000 | (15.2) |
| OEM | $7,373,000 | $6,439,000 | 14.5 |
| Total | $33,880,000 | $37,687,000 | (10.1) |
Geographic Sales Distribution
Sales by geographic region for the three months ended September 30, 2024, were:
| Region | Domestic Sales | International Sales | Total Sales |
|---|---|---|---|
| 2024 | $7,793,000 | $3,694,000 | $11,487,000 |
| 2023 | $8,652,000 | $3,324,000 | $11,976,000 |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, included:
| Expense Type | Amount (2024) | Amount (2023) | Change (%) |
|---|---|---|---|
| Research and Development | $1,142,000 | $1,409,000 | (18.9) |
| Salaries and Related Costs | $3,508,000 | $4,534,000 | (22.6) |
| Selling, General and Administrative | $4,291,000 | $4,841,000 | (11.4) |
| Total Operating Expenses | $10,589,000 | $12,615,000 | (16.1) |
Cash Flow and Liquidity
As of September 30, 2024, Apyx had:
- Cash and Cash Equivalents: $28,013,000
- Working Capital: $42,600,000
- Net Cash Used in Operating Activities (YTD): $(15,110,000)
Debt and Financial Obligations
As of September 30, 2024, the company's term loan obligations were:
| Year | Principal Repayment |
|---|---|
| 2024 | $0 |
| 2025 | $0 |
| 2026 | $0 |
| 2027 | $2,216,000 |
| 2028 | $35,284,000 |
| Total | $37,500,000 |
Market Position and Strategy
Apyx Medical Corporation continues to focus on expanding its market presence in over 60 countries, with a strategic emphasis on enhancing product offerings and increasing sales through its OEM segment. The company anticipates ongoing challenges in the capital equipment market, particularly within the aesthetic space, impacting both sales and profitability.
How Apyx Medical Corporation (APYX) Makes Money
Overview of Revenue Streams
Apyx Medical Corporation generates revenue primarily through the sale of medical devices and related products in two reportable segments: Advanced Energy and OEM (Original Equipment Manufacturer). The Advanced Energy segment focuses on innovative energy-based surgical products, while the OEM segment involves manufacturing and supplying products to other companies.
Financial Performance
For the nine months ended September 30, 2024, Apyx Medical reported total sales of $33.88 million, compared to $37.69 million in the same period of 2023, reflecting a decrease of 10.1%.
| Segment | Sales (2024) | Sales (2023) | Change (%) |
|---|---|---|---|
| Advanced Energy | $26.51 million | $31.25 million | -15.2% |
| OEM | $7.37 million | $6.44 million | +14.5% |
Sales Breakdown
Sales from the Advanced Energy segment decreased primarily due to a lower average selling price of generators and fewer upgrades to the Apyx One Console. Conversely, the OEM segment saw an increase in sales volume to existing customers, including Symmetry Surgical, under a long-term agreement.
Domestic vs. International Sales
For the nine months ended September 30, 2024, domestic sales amounted to $23.46 million, a decrease of 15.2% from $27.66 million in 2023. International sales reached $10.42 million, an increase of 3.9% compared to $10.03 million in the prior year.
| Geographic Region | Sales (2024) | Sales (2023) | Change (%) |
|---|---|---|---|
| Domestic | $23.46 million | $27.66 million | -15.2% |
| International | $10.42 million | $10.03 million | +3.9% |
Cost of Sales and Gross Profit
The cost of sales for the nine months ended September 30, 2024, was $13.48 million, leading to a gross profit of $20.40 million. This represents a gross margin of 60.2%, down from 65.9% in 2023, primarily due to changes in the sales mix and pricing pressures.
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Gross Profit | $20.40 million | $24.83 million | -17.9% |
| Gross Margin | 60.2% | 65.9% | -5.7% |
Operating Expenses
Operating expenses have also been a critical factor in Apyx Medical's financial performance. For the nine months ended September 30, 2024, total operating expenses were $36.19 million, compared to $39.01 million in 2023.
| Expense Type | Amount (2024) | Amount (2023) | Change (%) |
|---|---|---|---|
| Research and Development | $3.96 million | $4.04 million | -1.8% |
| Professional Services | $5.32 million | $5.17 million | +3.0% |
| Salaries and Related Costs | $12.89 million | $14.33 million | -10.1% |
| Selling, General and Administrative | $14.03 million | $15.47 million | -9.4% |
Net Loss
Apyx Medical reported a net loss of $18.90 million for the nine months ended September 30, 2024, compared to a net loss of $9.23 million for the same period in 2023. The increase in net loss is attributed to higher operating expenses and reduced revenues.
Cash Flow and Liquidity
As of September 30, 2024, Apyx Medical had $28.01 million in cash and cash equivalents, down from $43.65 million at the end of 2023. The company reported net cash used in operating activities of $15.11 million for the nine months ended September 30, 2024.
| Cash Flow Metric | Amount (2024) | Amount (2023) |
|---|---|---|
| Cash and Cash Equivalents | $28.01 million | $43.65 million |
| Net Cash Used in Operating Activities | $15.11 million | $3.04 million |
Debt and Financing
Apyx Medical's total long-term debt as of September 30, 2024, was $33.85 million. The company has entered into a credit agreement aimed at providing liquidity and funding its operations, with certain financial covenants to be met in the upcoming periods.
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Resources:
- Apyx Medical Corporation (APYX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Apyx Medical Corporation (APYX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Apyx Medical Corporation (APYX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.