# EDGAR Filing Document

**Accession Number:** 0000719135
**File Stem:** 0001437749-25-033499
**Filing Date:** 2025-11
**Character Count:** 109870
**Document Hash:** 34515d93123e54027b2d10cf9589583a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-25-033499.hdr.sgml**: 20251106

**ACCESSION NUMBER**: 0001437749-25-033499

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 65

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251106

**DATE AS OF CHANGE**: 20251106

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Apyx Medical Corp
- **CENTRAL INDEX KEY:** 0000719135
- **STANDARD INDUSTRIAL CLASSIFICATION:** SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 112644611
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-31885
- **FILM NUMBER:** 251456705

**BUSINESS ADDRESS:**
- **STREET 1:** 5115 ULMERTON ROAD
- **CITY:** CLEARWATER
- **STATE:** FL
- **ZIP:** 33760
- **BUSINESS PHONE:** 7273842323

**MAIL ADDRESS:**
- **STREET 1:** 5115 ULMERTON ROAD
- **CITY:** CLEARWATER
- **STATE:** FL
- **ZIP:** 33760

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BOVIE MEDICAL Corp
- **DATE OF NAME CHANGE:** 20150319

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BOVIE MEDICAL CORP
- **DATE OF NAME CHANGE:** 19990216

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AN CON GENETICS INC
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'? apyx20250930_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 September 30, 2025** | **For the quarterly period ended September 30, 2025** |
| or | or |
| ☐ | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| **For the transition period from _____ to _____** | **For the transition period from _____ to _____** |
| **Commission File Number: 001-31885** | **Commission File Number: 001-31885** |

---

![logo01.jpg](logo01.jpg)

**APYX MEDICAL CORPORATION**<br>

**(Exact name of registrant as specified in its charter)**<br>

---

| | |
|:---|:---|
| **Delaware** | **11-2644611** |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. Employer<br> 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 November 5, 2025, 38,241,905 shares of the registrant's $0.001 par value common stock were outstanding.

------

[**Table of Contents**](#toc)

**APYX MEDICAL CORPORATION**

**INDEX TO QUARTERLY REPORT ON FORM 10-Q**

**For the quarterly period ended September 30, 2025**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| **Part I.** | [**Financial Information**](#partonefininfo) | [2](#partonefininfo) |
| Item 1. | [Condensed Consolidated Financial Statements (Unaudited)](#finstmts) | [2](#finstmts) |
| | &nbsp;&nbsp;&nbsp; [Condensed Consolidated Balance Sheets at September 30, 2025 and December 31, 2024](#bs) | [2](#bs) |
| | &nbsp;&nbsp;&nbsp; [Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024](#ops) | [3](#ops) |
| | &nbsp;&nbsp;&nbsp; [Condensed Consolidated Statements of Changes in Equity for the three and nine months ended September 30, 2025 and 2024](#equity) | [4](#equity) |
| | &nbsp;&nbsp;&nbsp; [Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024](#cf) | [5](#cf) |
| | &nbsp;&nbsp;&nbsp; [Notes to Condensed Consolidated Financial Statements](#notes) | [6](#notes) |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#mda) | [15](#mda) |
| Item 3. | [Quantitative and Qualitative Disclosures about Market Risk](#quant) | [23](#quant) |
| Item 4. | [Controls and Procedures](#controls) | [23](#controls) |
| **Part II.** | [**Other Information**](#parttwootherinfo) | [24](#parttwootherinfo) |
| Item 1. | [Legal Proceedings](#legal) | [24](#legal) |
| Item 1A. | [Risk Factors](#risk) | [24](#risk) |
| Item 2. | [Unregistered Sales of Equity Securities and Use of Proceeds](#unregistered) | [24](#unregistered) |
| Item 3. | [Defaults Upon Senior Securities](#defaults) | [24](#defaults) |
| Item 4. | [Mine Safety Disclosures](#mine) | [24](#mine) |
| Item 5. | [Other Information](#otherinformation) | [24](#otherinformation) |
| Item 6. | [Exhibits](#exhibits) | [25](#exhibits) |
| | [Signatures](#sigs) | [26](#sigs) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1

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[**Table of Contents**](#toc)

**PART I.** &nbsp;&nbsp;&nbsp;&nbsp;**Financial Information**

**ITEM 1. Condensed Consolidated Financial Statements**

**APYX MEDICAL CORPORATION**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

(In thousands, except share and per share data)

---

| | | |
|:---|:---|:---|
|  | ***September 30, 2025*** |  |
|  | ***(Unaudited)*** | ***December 31, 2024*** |
| **ASSETS** |  |  |
| **Current assets:** |  |  |
| Cash and cash equivalents | $25135 | $31741 |
| Trade accounts receivable, net of allowance of $1,180 and $1,000 | 12995 | 15480 |
| Inventories, net of provision for obsolescence of $1,134 and $1,032 | 9145 | 7564 |
| Prepaid expenses and other current assets | 1513 | 1655 |
| **Total current assets** | 48788 | 56440 |
| Property and equipment, net of accumulated depreciation and amortization of $4,270 and $3,989 | 2390 | 1987 |
| Operating lease right-of-use assets | 4342 | 4703 |
| Finance lease right-of-use assets | 33 | 48 |
| Other assets | 1812 | 1664 |
| **Total assets** | $57365 | $64842 |
| **LIABILITIES AND EQUITY** |  |  |
| **Current liabilities:** |  |  |
| Accounts payable | $3220 | $2615 |
| Accrued expenses and other current liabilities | 7344 | 7751 |
| Current portion of operating lease liabilities | 393 | 335 |
| Current portion of finance lease liabilities | 21 | 20 |
| **Total current liabilities** | 10978 | 10721 |
| Long-term debt, net of debt discounts and issuance costs | 34607 | 33893 |
| Long-term operating lease liabilities | 4173 | 4483 |
| Long-term finance lease liabilities | 18 | 33 |
| Long-term contract liabilities | 1216 | 1118 |
| Other liabilities | 293 | 259 |
| **Total liabilities** | 51285 | 50507 |
| **EQUITY** |  |  |
| Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0 issued and outstanding as of September 30, 2025 and December 31, 2024 |  |  |
| Common stock, $0.001 par value; 75,000,000 shares authorized; 37,819,478 issued and outstanding as of September 30, 2025, and 37,793,886 issued and outstanding as of December 31, 2024 | 38 | 38 |
| Additional paid-in capital | 93633 | 92083 |
| Accumulated deficit | (87823) | (77911) |
| **Total stockholders' equity** | 5848 | 14210 |
| Non-controlling interest | 232 | 125 |
| **Total equity** | 6080 | 14335 |
| **Total liabilities and equity** | $57365 | $64842 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2

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[**Table of Contents**](#toc)

**APYX MEDICAL CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Unaudited)**

(In thousands, except per share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** | ***Nine Months Ended*** | ***Nine Months Ended*** |
|  | ***September 30,*** | ***September 30,*** | ***September 30,*** | ***September 30,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| **Sales** | $12877 | $11487 | $33680 | $33880 |
| Cost of sales | 4580 | 4533 | 12635 | 13484 |
| **Gross profit** | 8297 | 6954 | 21045 | 20396 |
| Other costs and expenses: |  |  |  |  |
| Research and development | 801 | 1142 | 2429 | 3963 |
| Professional services | 1481 | 1648 | 4551 | 5318 |
| Salaries and related costs | 3191 | 3508 | 9344 | 12886 |
| Selling, general and administrative | 3656 | 4291 | 11178 | 14026 |
| **Total other costs and expenses** | 9129 | 10589 | 27502 | 36193 |
| **Loss from operations** | (832) | (3635) | (6457) | (15797) |
| Interest income | 292 | 378 | 874 | 1312 |
| Interest expense | (1413) | (1431) | (4182) | (4254) |
| Other income, net | 76 | 24 | 76 | 2 |
| **Total other expense, net** | (1045) | (1029) | (3232) | (2940) |
| **Loss before income taxes** | (1877) | (4664) | (9689) | (18737) |
| **Income tax expense** | 78 | 60 | 176 | 163 |
| **Net loss** | (1955) | (4724) | (9865) | (18900) |
| Net income (loss) attributable to non-controlling interest | 29 | (21) | 47 | (65) |
| **Net loss attributable to stockholders** | $(1984) | $(4703) | $(9912) | $(18835) |
| **Loss per share:** |  |  |  |  |
| Basic and diluted | $(0.05) | $(0.14) | $(0.24) | $(0.54) |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3

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[**Table of Contents**](#toc)

**APYX MEDICAL CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

**(Unaudited)**

(In thousands)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | ***Additional*** |  | ***Non-*** |  |
|  | ***Common Stock*** | ***Common Stock*** | ***Paid-In*** | ***Accumulated*** | ***controlling*** | ***Total*** |
|  | ***Shares*** | ***Par Value*** | ***Capital*** | ***Deficit*** | ***Interest*** | ***Equity*** |
| Balance at December 31, 2023 | 34644 | $35 | $81114 | $(54448) | $221 | $26922 |
| Stock-based compensation | *—* |  | 1128 |  |  | 1128 |
| Net loss | *—* |  |  | (7576) | (14) | (7590) |
| Balance at March 31, 2024 | 34644 | $35 | $82242 | $(62024) | $207 | $20460 |
| Stock-based compensation | *—* |  | 1050 |  |  | 1050 |
| Net loss | *—* |  |  | (6556) | (30) | (6586) |
| Balance at June 30, 2024 | 34644 | $35 | $83292 | $(68580) | $177 | $14924 |
| Stock-based compensation | *—* |  | 997 |  |  | 997 |
| Net loss | *—* |  |  | (4703) | (21) | (4724) |
| Balance at September 30, 2024 | 34644 | $35 | $84289 | $(73283) | $156 | $11197 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | ***Additional*** |  | ***Non-*** |  |
|  | ***Common Stock*** | ***Common Stock*** | ***Paid-In*** | ***Accumulated*** | ***controlling*** |  |
|  | ***Shares*** | ***Par Value*** | ***Capital*** | ***Deficit*** | ***Interest*** | ***Total*** |
| Balance at December 31, 2024 | 37794 | $38 | $92083 | $(77911) | $125 | $14335 |
| Contributions from non-controlling interest | *—* |  |  |  | 30 | 30 |
| Stock-based compensation | *—* |  | 451 |  |  | 451 |
| Net loss | *—* |  |  | (4150) | (22) | (4172) |
| Balance at March 31, 2025 | 37794 | $38 | $92534 | $(82061) | $133 | $10644 |
| Contributions from non-controlling interest | *—* |  |  |  | 30 | 30 |
| Stock-based compensation | *—* |  | 520 |  |  | 520 |
| Net (loss) income | *—* |  |  | (3778) | 40 | (3738) |
| Balance at June 30, 2025 | 37794 | $38 | $93054 | $(85839) | $203 | $7456 |
| Shares issued on stock options exercised for cash | 25 |  | 49 |  |  | 49 |
| Stock-based compensation | *—* |  | 530 |  |  | 530 |
| Net (loss) income | *—* |  |  | (1984) | 29 | (1955) |
| Balance at September 30, 2025 | 37819 | $38 | $93633 | $(87823) | $232 | $6080 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4

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[**Table of Contents**](#toc)

**APYX MEDICAL CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

(In thousands)

---

| | | |
|:---|:---|:---|
|  | ***Nine Months Ended September 30,*** | ***Nine Months Ended September 30,*** |
|  | ***2025*** | ***2024*** |
| **Cash flows from operating activities** |  |  |
| Net loss | $(9865) | $(18900) |
| **Adjustments to reconcile net loss to net cash used in operating activities:** |  |  |
| Depreciation and amortization | 434 | 457 |
| Provision for inventory obsolescence | 205 | 61 |
| Loss on disposal of property and equipment | 19 | 48 |
| Stock-based compensation | 1501 | 3175 |
| Allowance for credit losses | 286 | 146 |
| Non-cash lease expense | 68 | 86 |
| Non-cash interest expense | 714 | 668 |
| Changes in operating assets and liabilities: |  |  |
| Trade receivables | 2577 | 879 |
| Prepaid expenses and other assets | 9 | 542 |
| Inventories | (1585) | 902 |
| Accounts payable | 510 | (819) |
| Accrued expenses and other liabilities | (344) | (2355) |
| **Net cash used in operating activities** | (5471) | (15110) |
| **Cash flows from investing activities** |  |  |
| Purchases of property and equipment | (839) | (477) |
| **Net cash used in investing activities** | (839) | (477) |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from stock option exercises | 49 |  |
| Repayment of finance lease liabilities | (14) | (15) |
| &nbsp;&nbsp;&nbsp; Contributions from non-controlling interest | 60 |  |
| **Net cash provided by (used in) financing activities** | 95 | (15) |
| **Effect of exchange rates on cash** | (391) | (37) |
| Net change in cash and cash equivalents | (6606) | (15639) |
| **Cash and cash equivalents, beginning of period** | 31741 | 43652 |
| **Cash and cash equivalents, end of period** | $25135 | $28013 |
| **Cash paid for:** |  |  |
| Interest | $3472 | $3579 |
| Income taxes | $80 | $211 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5

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[**Table of Contents**](#toc)

**APYX MEDICAL CORPORATION**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE *1.*** &nbsp;&nbsp;&nbsp;&nbsp;**BASIS OF PRESENTATION**

Apyx Medical Corporation ("Company", "Apyx", "it" and similar terms) was incorporated in *1982,* under the laws of the State of Delaware and has its principal executive office at *5115* Ulmerton Road, Clearwater, FL *33760.*

The Company is a surgical aesthetics company with a passion for elevating people's lives through innovative products, including its Helium Plasma Platform Technology products marketed and sold as Renuvion<sup>®</sup> and the AYON Body Contouring System<sup>TM</sup> in the cosmetic surgery market and J-Plasma<sup>®</sup> in the hospital surgical market. Renuvion and J-Plasma offer surgeons a unique ability to provide controlled heat to tissue to achieve their desired results. The AYON Body Contouring System<sup>TM</sup> is an FDA-cleared, surgeon-designed body contouring system that combines precision, versatility, and innovation in an all-in-*one* platform. It seamlessly integrates fat removal, closed loop contouring, and Renuvion's tissue contraction and electrosurgical capabilities, empowering surgeons to deliver comprehensive body contouring treatments for patients. The Company also leverages its deep expertise and decades of experience in unique waveforms through OEM agreements with other medical device manufacturers.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Securities and Exchange Commission ("SEC") rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, please refer to the consolidated financial statements included in the Company's Annual Report on Form *10*-K for the year ended *December 31, 2024*. In the opinion of management these condensed consolidated financial statements reflect all adjustments that are necessary for a fair presentation of results of consolidated operations and financial condition for the interim periods shown, including normal recurring accruals and other items. The results for the interim periods are *not* necessarily indicative of results for the full year.

**Recent Business Developments**

On *May 13, 2025,* the Company announced it had received *510*(k) clearance from the U.S. Food and Drug Administration (the "FDA") for the AYON Body Contouring System™ ("AYON"). The Company completed its soft launch of AYON, leveraging its relationships with key surgeons in critical geographies. Additionally, the Company commenced the commercial launch of AYON in *September 2025.*

The initial *510*(k) clearance for AYON covers a wide variety of aesthetic treatments, including Renuvion to address loose and lax skin, ultrasound-assisted liposuction, electrosurgery to support procedures requiring removal of excess tissue and closed loop contouring among others. On *October 13, 2025,* the Company announced that it had submitted the *510*(k) premarket notification to the FDA for the label expansion of AYON to include power liposuction.

**Liquidity**

The Company has incurred recurring net losses and cash outflows from operations and anticipates that losses will continue, at least, in the near term. The Company plans to continue to fund operations and capital funding needs through existing cash, sales of its products and, if necessary, additional equity and/or debt financing. However, the Company cannot be certain that additional financing will be available when needed or that, if available, financing will be obtained on acceptable terms. The sale of additional equity would result in dilution to its 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 operations. If the Company is unable to raise additional capital in sufficient amounts or on acceptable terms, it *may* be required to delay, limit, reduce, or terminate sales, marketing and product development. Any of these actions could harm the Company's business, prospects and results of operations.

In *November 2024,* the Company undertook a cost saving restructuring which included an organizational reduction in force to better focus, optimize and streamline operations. As a result of the organizational change, the Company reduced its US workforce by nearly 25%. The estimated annualized future cost savings from the reduction in force is approximately $4.3 million, which is expected to contribute to the goal of decreasing loss and achieving cash-flow breakeven. In addition to the reduction in force, the Company eliminated bonuses in *2024,* reduced the board of directors from eight to five members and reduced board cash compensation from $0.5 million annually to approximately $0.1 million. In addition to the organizational changes, the Company has identified other direct cost savings it anticipates achieving in *2025.* The identified cost savings include reductions in professional fees, lower research and development costs as we complete the development of AYON, credit card fees and stock-based compensation. The Company foresees, in totality, these cost savings will reduce its annual operating expenses below *$40* million in fiscal *2025.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *6*

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Unaudited)

**NOTE *2.*** &nbsp;&nbsp;&nbsp;&nbsp;**RECENT ACCOUNTING PRONOUNCEMENTS** 

In *December 2023,* the FASB issued ASU *2023*-*09, Income Taxes (Topic *740*)* to improve income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this ASU are effective for fiscal years beginning after *December 15, 2024.* The Company adopted ASU *2023*-*09* on *January 1, 2025.* The Company expects incremental disclosures in its Annual Report on Form *10*-K for the *2025* year. This includes additional items in the income tax rate reconciliation, qualitative information for significant reconciling items, disclosing additional information about taxes paid and disclosing loss before income taxes by domestic and foreign.

In *November 2024,* the FASB issued ASU **2024*-*03,* Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic *220*-*40*)*, to disclose specific information about certain costs and expenses in the notes to its financial statements for interim and annual reporting periods. The objective of the disclosure requirements is to provide disaggregated information about a public business entity's expenses to help investors (a) better understand the entity's performance, (b) better assess the entity's prospects for future cash flows, and (c) compare an entity's performance over time and with that of other entities. The amendments in this ASU are effective for fiscal years beginning after *December 15, 2026,* interim periods within fiscal years beginning after *December 15, 2027.* The Company is currently evaluating the impact of adoption of this standard on its consolidated financial statements.

*No* other new accounting pronouncement issued or effective during the fiscal year are expected to have a material impact on the Company's condensed consolidated financial statements or disclosures.

**NOTE *3.*** &nbsp;&nbsp;&nbsp;&nbsp;**INVENTORIES**

Inventories consisted of the following:

---

| | | |
|:---|:---|:---|
|  | ***September 30,*** | ***December 31,*** |
| *(In thousands)* | ***2025*** | ***2024*** |
| Raw materials | $4716 | $3973 |
| Work in process | 2689 | 1918 |
| Finished goods | 2874 | 2705 |
| Gross inventories | 10279 | 8596 |
| Less: provision for obsolescence | (1134) | (1032) |
| Inventories, net | $9145 | $7564 |

---

**NOTE *4.*** &nbsp;&nbsp;&nbsp;&nbsp;**ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES**

Accrued expenses and other current liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
|  | ***September 30,*** | ***December 31,*** |
| *(in thousands)* | ***2025*** | ***2024*** |
| Accrued payroll | $1179 | $995 |
| Accrued commissions | 787 | 981 |
| Accrued product warranties | 418 | 428 |
| Accrued product liability claim insurance deductibles | 2265 | 3168 |
| Accrued professional fees | 424 | 390 |
| Short-term contract liabilities | 1173 | 693 |
| Other accrued expenses and current liabilities | 1098 | 1096 |
| Total accrued expenses and other current liabilities | $7344 | $7751 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *7*

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[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Unaudited)

**NOTE *5.*** &nbsp;&nbsp;&nbsp;&nbsp;**DEBT**

The Company's outstanding debt with Perceptive Credit Holdings IV, LP ("Perceptive") (as initial lender and administrative agent) ("Perceptive Credit Agreement") at *September 30, 2025* and *December 31, 2024* bears interest at a floating rate based on *one*-month SOFR, subject to a floor of 5.0%, plus 7.0% (12.0% at *September 30, 2025*). Included in interest expense for the *three* and *nine* months ended *September 30, 2025* are $66,000 and $196,000, respectively, of amortization of debt issuance costs and $176,000 and $518,000, respectively, of amortization of debt discounts. Included in interest expense for the *three* and *nine* months ended *September 30, 2024* are $66,000 and $195,000, respectively, of amortization of debt issuance costs and $159,000 and $473,000, respectively, of amortization of debt discounts.

On *November 7, 2024,* the Company entered into an amendment to the Perceptive Credit Agreement. The amendment reduced the financial covenant trailing *twelve*-month revenue targets relating to its Surgical Aesthetics segment, formerly known as Advanced Energy (tested quarterly), with amended year-end targets of $37.0 million, $52.4 million and $60.3 million for *2025, 2026* and *2027,* respectively. The amendment also introduced a maximum operating expense financial covenant, with full year targets of $40.0 million and $45.0 million for *2025* and *2026,* respectively. The Perceptive Credit Agreement, as amended, contains customary affirmative and negative covenants, including covenants limiting the ability of the Company and its subsidiaries, among other things, to incur debt, grant liens, make distributions, enter certain restrictive agreements, pay or modify subordinated debt, dispose of assets, make investments and acquisitions, enter into certain transactions with affiliates, and undergo certain fundamental changes, in each case, subject to limitations and exceptions set forth in the Perceptive Credit Agreement. Additionally, the Company must maintain a balance of $3.0 million in cash and cash equivalents during the term of the Perceptive Credit Agreement. As of *September 30, 2025,* the Company was in compliance with the financial covenants contained within the Perceptive Credit Agreement, as amended. The Company's continued compliance with covenants is subject to meeting or exceeding forecasted Surgical Aesthetics revenues, as amended, and reducing operating expenses.

In connection with the amendment to the Perceptive Credit Agreement, the Company issued Perceptive 150,000 shares of its common stock.

In connection with the Company's initial loan under the Perceptive Credit Agreement, the Company issued Perceptive warrants to purchase up to 1,250,000 shares of its common stock, with an exercise price of $2.43 per share.

The Company's term loan under the Perceptive Credit Agreement, net consists of the following:

---

| | | |
|:---|:---|:---|
|  | ***September 30,*** | ***December 31,*** |
| *(In thousands)* | ***2025*** | ***2024*** |
| Term loan | $37500 | $37500 |
| Unamortized debt issuance costs | (783) | (979) |
| Unamortized debt discount | (2110) | (2628) |
| Term loan, net | $34607 | $33893 |

---

As of *September 30, 2025*, principal repayments on the debt are as follows:

---

| | | |
|:---|:---|:---|
| *(In thousands)* |  | |
| 2025 | $— |  |
| 2026 |  |  |
| 2027 | 2216 |  |
| 2028 | 35284 |  |
| Total repayments | $37500 |  |

---

**NOTE *6.*** &nbsp;&nbsp;&nbsp;&nbsp;**CHINA JOINT VENTURE**

In *2019,* the Company executed a joint venture agreement with its Chinese supplier (the "China JV") whereby the Company has a 51% ownership interest. The agreement required the Company to make capital contributions of approximately $357,000 into the newly formed entity, which were made in prior years. In *June 2023,* the Company executed an amendment to the joint venture agreement to increase the amount of its registered capital. The amendment requires the Company to make additional capital contributions to the China JV of $408,000, of which $214,000 has been made as of *September 30, 2025*. During *May 2025,* the China JV executed a distribution agreement with a Chinese distributor and commenced operations during the *second* quarter of *2025.*

During *2024,* the Company determined that the contributions made to the China JV to date are *not* sufficient for the China JV to fund expected losses without additional subordinated financial support. Accordingly, the Company has determined that the China JV is a VIE. The Company has determined that because it has the sole right to direct the activities of the China JV that most significantly impact its economic performance, and as the majority owner, has the obligation to absorb losses of the VIE and the right to receive benefits from the VIE that are significant to the China JV, that the Company is the primary beneficiary of the VIE. Accordingly, the China JV has been consolidated in these consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *8*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Unaudited)

The China JV is organized as a limited liability company under the laws of the Peoples Republic of China, accordingly the Company's exposure to losses in the China JV is limited to the Company's registered capital in the Company, which is equal to the sum of the required capital contributions above. As the China JV is *not* currently sufficiently capitalized, the assets of the China JV are *not* available to settle obligations of the Company.

The following table summarizes the assets and liabilities of the China JV, a consolidated variable interest entity, included in the Company's consolidated balance sheets at *September 30, 2025* and *December 31, 2024,* respectively:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | ***September 30,*** | ***September 30,*** |  | ***December 31,*** | ***December 31,*** |  |
|  | ***2025*** | ***2025*** |  | ***2024*** | ***2024*** |  |
| *(In thousands)* |  |  | |  |  | |
| Cash and cash equivalents |  | 373 |  |  | 13 |  |
| Prepaid expenses and other current assets |  | 122 |  |  | 54 |  |
| Property and equipment, net |  | 231 |  |  | 247 |  |
| Accounts payable |  | 116 |  |  | 8 |  |
| Accrued expenses and other current liabilities |  | 115 |  |  | 33 |  |

---

Changes in the Company's ownership investment in the China JV were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** | ***Nine Months Ended*** | ***Nine Months Ended*** |
|  | ***September 30,*** | ***September 30,*** | ***September 30,*** | ***September 30,*** |
| *(In thousands)* | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Beginning interest in China JV | $210 | $184 | $130 | $229 |
| Contributions |  |  | 61 |  |
| Net income (loss) attributable to Apyx | 31 | (22) | 50 | (67) |
| Ending interest in China JV | $241 | $162 | $241 | $162 |

---

**NOTE *7.*** &nbsp;&nbsp;&nbsp;&nbsp;**EARNINGS (LOSS) PER SHARE** 

Basic earnings (loss) per share ("basic EPS") is computed by dividing the net income or loss by the weighted average number of common shares outstanding for the reporting period. Diluted earnings (loss) per share ("diluted EPS") gives effect to all dilutive potential shares outstanding. As the Company is in a net loss position for all periods presented, all potential shares outstanding are anti-dilutive. The following table provides the computation of basic and diluted loss per share.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** | ***Nine Months Ended*** | ***Nine Months Ended*** |
|  | ***September 30,*** | ***September 30,*** | ***September 30,*** | ***September 30,*** |
| *(in thousands, except per share data)* | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Numerator: |  |  |  |  |
| Net loss attributable to stockholders | $(1984) | $(4703) | $(9912) | $(18835) |
| Denominator: |  |  |  |  |
| Weighted average shares outstanding - basic and diluted | 40748 | 34644 | 40735 | 34644 |
| Loss per share: |  |  |  |  |
| Basic and diluted | $(0.05) | $(0.14) | $(0.24) | $(0.54) |
| Anti-dilutive instruments excluded from diluted loss per common share: |  |  |  |  |
| Options | 8327 | 8257 | 8327 | 8257 |
| Warrants | 1500 | 1500 | 1500 | 1500 |

---

During *November 2024,* the Company sold pre-funded warrants to purchase 2,934,690 shares of its Common Stock. The pre-funded warrants are included in weighted average shares outstanding in the calculation of basic and diluted loss per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *9*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Unaudited)

**NOTE *8.*** &nbsp;&nbsp;&nbsp;&nbsp;**STOCK-BASED COMPENSATION** 

Under the Company's stock option plans, the Board of Directors *may* grant restricted stock and options to purchase common shares to the Company's employees, officers, directors and consultants. The Company accounts for stock options in accordance with FASB ASC Topic *718, Compensation - Stock Compensation*, with stock-based compensation expense recognized over the vesting period based on the fair value on the grant date utilizing the Black-Scholes model, which includes a number of estimates that affect the grant date fair value and the amount of expense to recognize.

The Company recognized approximately $530,000 and $1,501,000, respectively, in stock-based compensation expense during the *three* and *nine* months ended *September 30, 2025*, as compared with $997,000 and $3,175,000, respectively, for the *three* and *nine* months ended *September 30, 2024*.

Stock option activity is summarized as follows:

---

| | | |
|:---|:---|:---|
|  |  | ***Weighted average*** |
|  | ***Number of options*** | ***exercise price*** |
| Outstanding at December 31, 2024 | 7638458 | $5.50 |
| Granted | 1858000 | $1.38 |
| Exercised | (25592) | $1.91 |
| Canceled and forfeited | (1143921) | $4.94 |
| Outstanding at September 30, 2025 | 8326945 | $4.67 |

---

The Company allows stock option holders to exercise stock-based awards by surrendering stock-based awards with an intrinsic value equal to the cumulative exercise price of the stock-based awards being exercised, referred to as net settlements. These surrenders are included in stock options exercised in the options rollforward above. There were no such exercises for the *three* and *nine* months ended *September 30, 2025*. For the *nine* months ended *September 30, 2024*, the Company received 531 options as payment in the exercise of 38 options.

Common shares required to be issued upon the exercise of stock options would be issued from authorized and unissued shares. The Company calculated the grant date fair value of options granted in *2025* ("*2025* Grants") utilizing a Black-Scholes model.

---

| | |
|:---|:---|
|  | ***2025 Grants*** |
| Strike price | $0.90 - $1.85 |
| Risk-free rate | 3.9% - 4.5% |
| Expected dividend yield |  |
| Expected volatility | 94.5% - 98.1% |
| Expected term (in years) | 6 |
| Grant date fair value | $0.70 - $1.47 |

---

**NOTE *9.*** &nbsp;&nbsp;&nbsp;&nbsp;**INCOME TAXES** 

Income tax expense was approximately $78,000 and $60,000 with effective tax rates of (4.2)% and (1.3)% for the *three* months ended *September 30, 2025* and *2024*, respectively. Income tax expense was approximately $176,000 and $163,000 with effective tax rates of (1.8)% and (0.9)% for the *nine* months ended *September 30, 2025* and *2024*, respectively. For the *three* and *nine* months ended *September 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *10*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Unaudited)

**NOTE *10.*** &nbsp;&nbsp;&nbsp;&nbsp;**COMMITMENTS AND CONTINGENCIES**

**Litigation** 

The medical device industry is characterized by frequent claims and litigation, and the Company *may* become subject to various claims, lawsuits and proceedings in the ordinary course of our business. Such claims *may* include claims by current or former employees, distributors and competitors, claims concerning the marketing and promotion of the Company's products and product liability claims.

The Company is involved in a number of legal actions relating to the use of its Helium Plasma Platform Technology, which actions are being defended by the Company's insurance carrier-appointed counsel. The outcomes of these legal actions are *not* within the Company's control and *may not* be known for prolonged periods of time. Management has *not* yet received from carrier-appointed defense counsel the estimates of the net potential range of losses in all of these cases, as would be required to confirm whether all of the claims in total are adequately covered by the varying levels of aggregate insurance coverage available for each relevant insurance policy period. Notwithstanding the foregoing, in the opinion of management, the Company has meritorious defenses, and such claims are *not* expected, individually or in the aggregate, to result in a material, adverse effect on its financial condition, results of operations and cash flows. However, in the event that damages exceed the aggregate coverage limits of the Company's policies or if its insurance carriers disclaim coverage, management believes it is possible that costs associated with these claims could have a material adverse impact on the consolidated financial condition, results of operations and cash flows.

The Company accrues a liability in its condensed consolidated financial statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and *no* amount within the range is a better estimate than any other, the minimum amount of the range is recorded. If a loss is reasonably possible, but *not* known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the consolidated financial statements. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded, actual results *may* differ from these estimates.

During *2022,* the Company was notified of certain procedures alleged to have been performed by the same physician and which are currently the subject of *two* related products liability cases within the courts. During *2023,* the Company was notified by its insurance carriers that all or most of the *ten* individual plaintiff's allegations could be subject to separate deductibles notwithstanding the commonality of each underlying occurrence. During *March 2024, two* of the plaintiffs claims were dismissed by the courts. Additionally, during *2024,* the Company determined that *one* of the procedures was performed by a different physician. The Company has determined that a loss, comprised of estimated costs to defend the Company against the lawsuits, is probable and that the range of estimated losses is approximately $1,650,000 to $1,950,000. The Company recorded an estimated loss of $1,450,000 related to the matters during *2022* and $200,000 related to the matters during *2024.* It is at least reasonably possible that a change in the actual amount of loss will occur in the near term, though management expects the actual amount of loss will be within the estimated range of losses.

During *March 2024,* the Company was named as a defendant in a number of product liability lawsuits filed under the direction of a single plaintiff's tort firm alleging off-label use of Renuvion products and the Company's mismarketing of the same. The suits are venued predominantly in Florida and nearly all involve procedures conducted prior to *2023,* which was before the Company received FDA *510k* clearance for the use of Renuvion in the types of procedures at issue. The Company denies liability and intends to vigorously defend these suits and believes that it has applicable substantive and procedural defenses. The Company has determined that a loss, comprised of estimated costs to defend the Company against the lawsuits, is probable and currently estimates the range of losses in connection with these matters to be between $1,300,000 and $1,500,000. The Company recorded an estimated loss of $1,300,000 related to these matters during *2024*. The Company has also determined that there is a reasonable possibility that there will be an additional loss related to the matters, but the Company is unable to provide an estimate of the range of such additional loss at this time.

**Purchase Commitments**

At *September 30, 2025*, the Company had purchase commitments totaling approximately $4.4 million, substantially all of which is expected to be purchased within the next *twelve* months.

**NOTE *11.*** &nbsp;&nbsp;&nbsp;&nbsp;**RELATED PARTY TRANSACTIONS**

Two relatives of Nikolay Shilev, Apyx Bulgaria's Managing Director, are considered related parties. Teodora Shileva, Mr. Shilev's spouse, is an employee of the Company working in the accounting department. Svetoslav Shilev, Mr. Shilev's son, is a quality manager in the quality assurance department.

The partner in the Company's China JV is also a supplier to the Company. For the *three* months ended *September 30, 2025* and *2024*, the Company made purchases from this supplier of approximately $588,000 and $189,000, respectively. For the *nine* months ended *September 30, 2025* and *2024*, the Company made purchases from this supplier of approximately $958,000 and $282,000, respectively. At *September 30, 2025* and *December 31, 2024*, respectively, the Company had net payables to this supplier of approximately $482,000 and $243,000, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *11*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Unaudited)

**NOTE *12.*** &nbsp;&nbsp;&nbsp;&nbsp;**GEOGRAPHIC AND SEGMENT INFORMATION** 

Operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics. In addition to similar economic characteristics, the Company also considers the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to its Chief Operating Decision Maker ("CODM") for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors. Charles D. Goodwin, CEO, is the Company's CODM. The CODM uses gross profit to assess segment performance and allocate resources, including employees and capital resources. The Company has included additional financial measures regularly reported to the CODM on a segment basis in the tables below along with a reconciliation between these measures and net income (loss). All other operating expenses are *not* regularly reported to the CODM on a segment basis. Asset information is *not* reviewed by the CODM by segment and is *not* available by segment. Accordingly, the Company has *not* presented a measure of assets by segment.

The Company's reportable segments are disclosed as principally organized and managed as two operating segments: Surgical Aesthetics, formerly known as Advanced Energy, and OEM. "Corporate & Other" includes certain unallocated corporate and administrative costs which were *not* specifically attributed to any reportable segment. The Surgical Aesthetics segment is comprised primarily of sales of its Helium Plasma Technology products marketed and sold as Renuvion and the AYON Body Contouring System in the cosmetic surgery market. Renuvion and J-Plasma offer surgeons a unique ability to provide controlled heat to tissue to achieve their desired results. These sales consist of electrosurgical generators, single-use handpieces, accessories and related products sold in the cosmetic surgical market. The AYON Body Contouring System is an FDA-cleared, surgeon-designed body contouring system that combines precision, versatility, and innovation in an all-in-*one* platform. It seamlessly integrates fat removal, closed loop contouring, and Renuvion's tissue contraction and electrosurgical capabilities, empowering surgeons to deliver comprehensive body contouring treatments for patients. The OEM segment is comprised primarily of sales related to the development and contract manufacturing of surgical devices, accessories and handpieces.

Summarized financial information with respect to reportable segments is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Three Months Ended September 30, 2025*** | ***Three Months Ended September 30, 2025*** | ***Three Months Ended September 30, 2025*** | ***Three Months Ended September 30, 2025*** |
| *(In thousands)* | ***Surgical Aesthetics*** | ***OEM*** | ***Corporate & Other*** | ***Total*** |
| Sales | $11065 | $1812 | $— | $12877 |
| Cost of sales | 3438 | 1142 |  | 4580 |
| Gross profit | 7627 | 670 |  | 8297 |
| Commissions | 1255 |  |  | 1255 |
| All other expenses<sup>(i)</sup> | 4477 | 3 | 3394 | 7874 |
| Income (loss) from operations | 1895 | 667 | (3394) | (832) |
| Interest income |  |  | 292 | 292 |
| Interest expense |  |  | (1413) | (1413) |
| Other income, net |  |  | 76 | 76 |
| Income (loss) before income taxes | 1895 | 667 | (4439) | (1877) |
| Income tax expense |  |  | 78 | 78 |
| Net income (loss) | 1895 | 667 | (4517) | (1955) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Three Months Ended September 30, 2024*** | ***Three Months Ended September 30, 2024*** | ***Three Months Ended September 30, 2024*** | ***Three Months Ended September 30, 2024*** |
| *(In thousands)* | ***Surgical Aesthetics*** | ***OEM*** | ***Corporate & Other*** | ***Total*** |
| Sales | $9288 | $2199 | $— | $11487 |
| Cost of sales | 2716 | 1817 |  | 4533 |
| Gross profit | 6572 | 382 |  | 6954 |
| Commissions | 1132 |  |  | 1132 |
| All other expenses<sup>(i)</sup> | 5909 | 9 | 3539 | 9457 |
| (Loss) income from operations | (469) | 373 | (3539) | (3635) |
| Interest income |  |  | 378 | 378 |
| Interest expense |  |  | (1431) | (1431) |
| Other income, net |  |  | 24 | 24 |
| (Loss) income before income taxes | (469) | 373 | (4568) | (4664) |
| Income tax expense |  |  | 60 | 60 |
| Net (loss) income | (469) | 373 | (4628) | (4724) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *12*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Nine Months Ended September 30, 2025*** | ***Nine Months Ended September 30, 2025*** | ***Nine Months Ended September 30, 2025*** | ***Nine Months Ended September 30, 2025*** |
| *(In thousands)* | ***Surgical Aesthetics*** | ***OEM*** | ***Corporate & Other*** | ***Total*** |
| Sales | $28622 | $5058 | $— | $33680 |
| Cost of sales | 8530 | 4105 |  | 12635 |
| Gross profit | 20092 | 953 |  | 21045 |
| Commissions | 3046 |  |  | 3046 |
| All other expenses<sup>(i)</sup> | 14474 | 13 | 9969 | 24456 |
| Income (loss) from operations | 2572 | 940 | (9969) | (6457) |
| Interest income |  |  | 874 | 874 |
| Interest expense |  |  | (4182) | (4182) |
| Other income, net |  |  | 76 | 76 |
| Income (loss) income before income taxes | 2572 | 940 | (13201) | (9689) |
| Income tax expense |  |  | 176 | 176 |
| Net income (loss) | 2572 | 940 | (13377) | (9865) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Nine Months Ended September 30, 2024*** | ***Nine Months Ended September 30, 2024*** | ***Nine Months Ended September 30, 2024*** | ***Nine Months Ended September 30, 2024*** |
| *(In thousands)* | ***Surgical Aesthetics*** | ***OEM*** | ***Corporate & Other*** | ***Total*** |
| Sales | $26507 | $7373 | $— | $33880 |
| Cost of sales | 7712 | 5772 |  | 13484 |
| Gross profit | 18795 | 1601 |  | 20396 |
| Commissions | 2972 |  |  | 2972 |
| All other expenses<sup>(i)</sup> | 20928 | 35 | 12258 | 33221 |
| (Loss) income from operations | (5105) | 1566 | (12258) | (15797) |
| Interest income |  |  | 1312 | 1312 |
| Interest expense |  |  | (4254) | (4254) |
| Other income, net |  |  | 2 | 2 |
| (Loss) income before income taxes | (5105) | 1566 | (15198) | (18737) |
| Income tax expense |  |  | 163 | 163 |
| Net (loss) income | (5105) | 1566 | (15361) | (18900) |

---

(i) For the Surgical Aesthetics segment, all other expenses includes salaries and related costs, research and development, professional services, including marketing and physician consulting, and other selling, general, and administrative expenses such as travel and entertainment, advertising, trade show fees and meeting and training costs. For the OEM segment, substantially all related expenses are recorded as cost of sales, therefore *no* significant segment specific operating expenses are incurred. For Corporate & Other, all other expenses includes salaries and related costs, professional services, including legal, accounting and audit fees, investor relations consulting, information technology consulting, board of directors' stock compensation expense, and general and administrative expenses, such as insurance, building lease costs, depreciation and computer software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *13*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Unaudited)

International sales represented approximately 27.5% and 29.2% of total revenues for the *three* and *nine* months ended *September 30, 2025*, respectively, as compared with approximately 32.2% and 30.8% of total revenues for the *three* and *nine* months ended *September 30, 2024*, respectively.

Sales by geographic region, based on the customer's "ship to" location on the invoice, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** | ***Nine Months Ended*** | ***Nine Months Ended*** |
|  | ***September 30,*** | ***September 30,*** | ***September 30,*** | ***September 30,*** |
| *(In thousands)* | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| **Sales by Domestic and International** |  |  |  |  |
| Domestic | $9332 | $7793 | $23851 | $23459 |
| International | 3545 | 3694 | 9829 | 10421 |
| Total | $12877 | $11487 | $33680 | $33880 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tangible long-lived assets by geographic location are as follows:

---

| | | |
|:---|:---|:---|
|  | ***September 30,*** | ***December 31,*** |
| *(In thousands)* | ***2025*** | ***2024*** |
| **Long-lived assets by Domestic and International** |  |  |
| Domestic | $5701 | $5532 |
| International | 1064 | 1206 |
| Total | $6765 | $6738 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *14*

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**APYX MEDICAL CORPORATION**

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF**

**FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**ITEM 2**. **Management**'**s Discussion and Analysis of Financial Condition and Results of Operations** 

The following discussion and analysis should be read in conjunction with our financial statements and related notes contained elsewhere in this report and with the audited consolidated financial statements and footnotes as of and for the year ended December 31, 2024 contained within our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 13, 2025. This discussion contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors discussed in this report and those discussed in other documents we file with the SEC. In light of these risks, uncertainties and assumptions, readers are cautioned not to place undue reliance on such forward-looking statements. These forward-looking statements represent beliefs and assumptions as of the date of this report. While we may elect to update forward-looking statements and at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. Past performance does not guarantee future results.

***Executive Level Overview***

We are a surgical aesthetics company with a passion for elevating people's lives through innovative products, including our Helium Plasma Platform Technology products marketed and sold as Renuvion<sup>®</sup> and the AYON Body Contouring System<sup>TM</sup> in the cosmetic surgery market and J-Plasma<sup>®</sup> in the hospital surgical market. Renuvion and J-Plasma offer surgeons a unique ability to provide controlled heat to tissue to achieve their desired results. The AYON Body Contouring System<sup>TM</sup> is an FDA-cleared, surgeon-designed body contouring system that combines precision, versatility, and innovation in an all-in-one platform. It seamlessly integrates fat removal, closed loop contouring, and Renuvion's tissue contraction and electrosurgical capabilities, empowering surgeons to deliver comprehensive body contouring treatments for patients. We also leverage our deep expertise and decades of experience in unique waveforms through OEM agreements with other medical device manufacturers.

We operate in two business segments: OEM and Surgical Aesthetics, formerly known as Advanced Energy. The OEM segment is primarily development and manufacturing contracts and product driven. The Surgical Aesthetics 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 nine months ended September 30, 2025 and 2024, we sold approximately 63,000 and 64,000 units, respectively. This is 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 50% of our total Surgical Aesthetics revenue.

***Recent Activities***

Glucagon- like peptide -1 receptor agonists ("GLP-1s"), such as Mounjaro<sup>®</sup>, Wegovy<sup>®</sup> and Ozempic<sup>®</sup>, are prescribed for the treatment of diabetes and/or weight loss in combination with exercise to improve glycemic control. GLP-1's have also been found to mimic the GLP-1 satiety hormone in our bodies. When one eats, GLP-1 is released in the small intestines regulating blood sugar and sending signals to the brain centers that control appetite. Studies have shown patients taking GLP-1's have experienced a loss of body weight. Currently, three GLP-1's are cleared by the FDA for weight loss, but we anticipate a number of additional drug candidates will be cleared, as well as oral versions of these medications.

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.

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 completed our soft launch of AYON, leveraging our relationships with key surgeons in critical geographies. Additionally, we commenced the commercial launch of AYON in September 2025.

The initial 510(k) clearance for AYON covers a wide variety of aesthetic treatments, including Renuvion to address loose and lax skin, ultrasound-assisted liposuction, electrosurgery to support procedures requiring removal of excess tissue and closed loop contouring, among others. October 13, 2025, we announced that we had submitted the 510(k) premarket notification to the FDA for the label expansion of AYON to include power liposuction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT'S DISCUSSION AND ANALYSIS OF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

***Liquidity***

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.

In November 2024, we undertook a cost saving restructuring which included an organizational reduction in force to better focus, optimize and streamline operations. As a result of the organizational changes, we reduced our workforce by nearly 25%. We estimate the annualized future cost savings from the reduction in force to be approximately $4.3 million which we expect to contribute to our goal of decreasing loss and achieving cash-flow breakeven. In addition, to the reduction in force, we eliminated bonuses in 2024, reduced the board of directors from eight to five members and reduced board cash compensation from $0.5 million annually to $0.1 million. In addition to the organizational changes, we have identified other direct cost savings we anticipate achieving in 2025. The identified cost savings include reductions in professional fees, lower research and development costs as we complete the development of AYON, credit card fees and stock-based compensation. We foresee, in totality, these cost savings will reduce our annual operating expenses below $40 million in 2025.

We are actively monitoring trade policy and tariff announcements including the recent executive orders issued by the U.S. federal administration regarding tariffs on imports from various countries, including the European Union, Canada, Mexico and China. In addition, we are monitoring the potential impact of actions taken by these countries in response to the announced tariffs. We currently manufacture in Clearwater, Florida and Sofia, Bulgaria and we intend to utilize these locations to minimize the impact of the tariffs, but such tariffs may make our products less cost competitive and reduce gross margins. At this time, the overall impact on our business related to these or any other tariffs that may be imposed, remains uncertain and depends on multiple factors, including the duration and expansion of current tariffs, future changes to tariff rates, scope or enforcement, retaliatory measures by impacted trade partners, inflationary effects, and the effectiveness of our responses in managing these challenges.

 ***Inflation***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The consequences of global supply chain instability and inflationary cost increases, potential and actual tariffs, and their adverse impact to the global economy, continue to evolve. Accordingly, the significance of the future impact to our business and financial statements remains subject to significant uncertainty. We continue to work on initiatives to mitigate the effects of inflation on our business, including finding alternative suppliers that meet our quality standards, streamlining our supplier network to reduce the use of middlemen and redesigning some components to achieve better volume purchase prices. Inflation has not, to date, materially impacted our operations or financial performance. However, as these trends continue for raw materials, freight, and labor costs, our future financial performance could be adversely impacted.

In regard to our operating segments, results are aggregated into reportable segments only if they exhibit similar economic characteristics. In addition to similar economic characteristics, we also consider the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to our chief operating decision maker for operating and administrative activities, availability of discrete financial information, and information presented to the Board of Directors and investors. Asset information is not reviewed by the CODM by segment and is not available by segment and, accordingly, we have not presented a measure of assets by reportable segment.

Our reportable segments are disclosed as principally organized and managed as two operating segments: Surgical Aesthetics and OEM. "Corporate & Other" includes certain unallocated corporate and administrative costs which are not specifically attributed to any reportable segment. The OEM segment is primarily development and manufacturing contract and product driven. All related expenses are recorded as cost of sales and therefore no segment specific operating expenses are incurred.

We strongly encourage investors to visit our website: <u>www.apyxmedical.com</u> to view the most current news and to review our filings with the Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT'S DISCUSSION AND ANALYSIS OF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

**Results of Operations**

*Sales*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  | **Nine Months Ended** | **Nine Months Ended** |  |
|  | **September 30,** | **September 30,** |  | **September 30,** | **September 30,** |  |
| *(In thousands)* | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** |
| **Sales by Reportable Segment** |  |  |  |  |  |  |
| Surgical Aesthetics | $11065 | $9288 | 19.1% | $28622 | $26507 | 8.0% |
| OEM | 1812 | 2199 | (17.6)% | 5058 | 7373 | (31.4)% |
| Total | $12877 | $11487 | 12.1% | $33680 | $33880 | (0.6)% |
| **Sales by Domestic and International** |  |  |  |  |  |  |
| Domestic | $9332 | $7793 | 19.7% | $23851 | $23459 | 1.7% |
| International | 3545 | 3694 | (4.0)% | 9829 | 10421 | (5.7)% |
| Total | $12877 | $11487 | 12.1% | $33680 | $33880 | (0.6)% |

---

Total revenue increased by 12.1%, or approximately $1.4 million, for the three months ended September 30, 2025 when compared with the three months ended September 30, 2024. Surgical Aesthetics segment sales increased 19.1%, or approximately $1.8 million, for the three months ended September 30, 2025 when compared with the three months ended September 30, 2024. The Surgical Aesthetics sales increase was driven by sales of AYON, as we commenced our commercial launch during the quarter and an increased volume of single-use handpieces in both domestic and international markets. These increases were partially offset by decreases in domestic sales of generators, including upgrades to the Apyx One Console, where the purchase of AYON was not part of the sale and upgrades to the Apyx One Console in international markets. Overall, domestic Surgical Aesthetics segment sales increased by over 30% from the prior year period. OEM segment sales decreased 17.6%, or approximately $0.4 million, for the three months ended September 30, 2025 when compared with the three months ended September 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.

Total revenue decreased by 0.6%, or approximately $0.2 million, for the nine months ended September 30, 2025 when compared with the nine months ended September 30, 2024. Surgical Aesthetics segment sales increased 8.0%, or approximately $2.1 million, for the nine months ended September 30, 2025 when compared with the nine months ended September 30, 2024. The Surgical Aesthetics sales increase was driven by sales of AYON, as we commenced our commercial launch during the third quarter. This increase was partially offset by decreases in domestic and internal sales of generators, including upgrades to the Apyx One Console, where the purchase of AYON was not part of the sale. OEM segment sales decreased 31.4%, or approximately $2.3 million, for the nine months ended September 30, 2025 when compared with the nine months ended September 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.

International sales represented approximately 27.5% and 29.2% of total revenues for the three and nine months ended September 30, 2025, respectively, as compared with 32.2% and 30.8% 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 our sales and marketing personnel through our facilities in Clearwater, Florida and Sofia, Bulgaria.

*Gross Profit*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  | **Nine Months Ended** | **Nine Months Ended** |  |
|  | **September 30,** | **September 30,** |  | **September 30,** | **September 30,** |  |
| *(In thousands)* | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** |
| Cost of sales | $4580 | $4533 | 1.0% | $12635 | $13484 | (6.3)% |
| Percentage of sales | 35.6% | 39.5% |  | 37.5% | 39.8% |  |
| Gross profit | $8297 | $6954 | 19.3% | $21045 | $20396 | 3.2% |
| Percentage of sales | 64.4% | 60.5% |  | 62.5% | 60.2% |  |

---

Gross profit for the three months ended September 30, 2025, increased 19.3% to $8.3 million, compared to $7.0 million for the same period in the prior year. Gross margin for the three months ended September 30, 2025, was 64.4%, compared to 60.5% for the same period in 2024. The increase in gross margin for the three months ended September 30, 2025 from the prior year period is primarily attributable to mix between our segments with Surgical Aesthetics comprising a higher percentage of total sales, geographic mix, with domestic sales comprising a higher percentage of total sales and product mix within our OEM segment. These increases were partially offset by changes in product mix within our Surgical Aesthetics segment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT'S DISCUSSION AND ANALYSIS OF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Gross profit for the nine months ended September 30, 2025, increased 3.2% to $21.0 million, compared to $20.4 million for the same period in the prior year. Gross margin for the nine months ended September 30, 2025, was 62.5%, compared to 60.2% for the same period in 2024. The increase in gross margin for the nine months ended September 30, 2025 from the prior year period is primarily attributable to mix between our segments with Surgical Aesthetics comprising a higher percentage of total sales, geographic mix, with domestic sales comprising a higher percentage of total sales. These increases were partially offset by changes in product mix within our OEM segment.

*Other Costs and Expenses*

*Research and development*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  | **Nine Months Ended** | **Nine Months Ended** |  |
|  | **September 30,** | **September 30,** |  | **September 30,** | **September 30,** |  |
| *(In thousands)* | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** |
| Research and development expense | $801 | $1142 | (29.9)% | $2429 | $3963 | (38.7)% |
| Percentage of sales | 6.2% | 9.9% |  | 7.2% | 11.7% |  |

---

Research and development expenses decreased 29.9% for the three months ended September 30, 2025, primarily due to lower compensation and benefits costs ($0.2 million) and lower spending on our product development initiatives and clinical studies ($0.1 million), as we complete the development of AYON.

Research and development expenses decreased 38.7% for the nine months ended September 30, 2025, primarily due to lower compensation and benefits costs ($1.0 million) and lower spending on our product development initiatives and clinical studies ($0.5 million), as we complete the development of AYON.

*Professional services*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  | **Nine Months Ended** | **Nine Months Ended** |  |
|  | **September 30,** | **September 30,** |  | **September 30,** | **September 30,** |  |
| *(In thousands)* | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** |
| Professional services expense | $1481 | $1648 | (10.1)% | $4551 | $5318 | (14.4)% |
| Percentage of sales | 11.5% | 14.3% |  | 13.5% | 15.7% |  |

---

Professional services expense decreased 10.1% for the three months ended September 30, 2025, primarily due to a decrease in physician and marketing consulting expenses ($0.3 million). This decrease was partially offset by an increase in board of director's stock-based compensation expense ($0.1 million), which was offset by lower board cash compensation included in selling, general and administrative expenses.

Professional services expense decreased 14.4% for the nine months ended September 30, 2025, primarily due to a decreases in physician and marketing consulting expenses ($0.4 million), legal expenses ($0.3 million), recruiting expenses ($0.1 million) and accounting and audit fees ($0.1 million). This decrease was partially offset by an increase in board of director's stock-based compensation expense ($0.1 million), which was offset by lower board cash compensation included in selling, general and administrative expenses.

*Salaries and related costs*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  | **Nine Months Ended** | **Nine Months Ended** |  |
|  | **September 30,** | **September 30,** |  | **September 30,** | **September 30,** |  |
| *(In thousands)* | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** |
| Salaries and related expenses | $3191 | $3508 | (9.0)% | $9344 | $12886 | (27.5)% |
| Percentage of sales | 24.8% | 30.5% |  | 27.7% | 38.0% |  |

---

During the three months ended September 30, 2025, salaries and related expenses decreased 9.0%, 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 and lower stock-based compensation expense ($0.5 million). These decreases were partially offset by the prior year reversal of our annual bonus accrual during the third quarter of 2024 (0.7 million). Annual bonuses for 2025 are discretionary.

During the nine months ended September 30, 2025, salaries and related expenses decreased 27.5%, primarily due to a decrease in salaries and benefits ($1.9 million), which was due to lower headcount following our reduction in force in the fourth quarter of 2024, lower stock-based compensation expense ($1.4 million) and bonus expense ($0.2 million), as bonuses for 2025 are discretionary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT'S DISCUSSION AND ANALYSIS OF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

*Selling, general and administrative expenses*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  | **Nine Months Ended** | **Nine Months Ended** |  |
|  | **September 30,** | **September 30,** |  | **September 30,** | **September 30,** |  |
| *(In thousands)* | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** |
| SG&A expense | $3656 | $4291 | (14.8)% | $11178 | $14026 | (20.3)% |
| Percentage of sales | 28.4% | 37.4% |  | 33.2% | 41.4% |  |

---

During the three months ended September 30, 2025, selling, general and administrative expense decreased 14.8%, primarily due to lower insurance expense, including claims on our policies ($0.3 million), lower meeting and training costs ($0.1 million), travel expenses ($0.1 million) and board of directors cash compensation ($0.1 million). These decreases were partially offset by an increase in commissions ($0.1 million).

During the nine months ended September 30, 2025, selling, general and administrative expense decreased 20.3%, primarily due to lower travel expenses ($0.9 million), meeting and training costs ($0.8 million), regulatory and translation expenses ($0.4 million), insurance expense, including claims on our policies ($0.3 million), board of directors cash compensation ($0.3 million), sales and property taxes ($0.1 million), payment processing fees ($0.1 million), software subscriptions ($0.1 million), foreign currency gains and losses ($0.1 million) and office supplies and shipping costs ($0.1 million). These decreases were partially offset by higher advertising expense, including trade show fees and related costs ($0.3 million) and allowances for credit losses ($0.1 million).

*Interest Income (Expense)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| *(In thousands)* | **2025** | **2024** | **2025** | **2024** |
| Interest income | $292 | $378 | $874 | $1312 |
| Percentage of sales | 2.3% | 3.3% | 2.6% | 3.9% |
| Interest expense | $(1413) | $(1431) | $(4182) | $(4254) |
| Percentage of sales | (11.0)% | (12.5)% | (12.4)% | (12.6)% |

---

Interest income decreased approximately $0.1 million and $0.4 million for the three and nine months ended September 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.

Interest expense was largely unchanged at approximately $1.4 million and approximately $4.2 million for the three and nine months ended September 30, 2025 and 2024, respectively.

*Income Taxes*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| *(In thousands)* | **2025** | **2024** | **2025** | **2024** |
| Income tax expense | $78 | $60 | $176 | $163 |
| Effective tax rate | (4.2)% | (1.3)% | (1.8)% | (0.9)% |

---

Income tax expense was approximately $78,000 and $60,000 with effective tax rates of (4.2)% and (1.3)% for the three months ended September 30, 2025 and 2024, respectively. Income tax expense was approximately $176,000 and $163,000 with effective tax rates of (1.8)% and (0.9)% for the nine months ended September 30, 2025 and 2024, respectively. For the three and nine months ended September 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT'S DISCUSSION AND ANALYSIS OF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

**Liquidity and Capital Resources** 

At September 30, 2025, we had approximately $25.1 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 September 30, 2025 was approximately $37.8 million compared with $45.7 million at December 31, 2024.

For the nine months ended September 30, 2025, net cash used in operating activities was approximately $5.5 million, compared with net cash used in operating activities of approximately $15.5 million in the nine months ended September 30, 2024. The decrease in cash used in operations is primarily due to improvements in our accounts receivable and accounts payable positions 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. These decreases were partially offset by cash used to procure inventory as we commenced the commercial rollout of AYON during the period and decreases in non-cash expenses included in our operating losses.

Net cash used in investing activities for the nine months ended September 30, 2025 and 2024, was $0.8 million and $0.5 million, respectively, related to investments in property and equipment.

Net cash provided by financing activities for the nine months ended September 30, 2025 was $95,000 and was primarily related to contributions to the China JV by the non-controlling member and proceeds on the exercise of stock options.

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.

On November 22, 2022, we filed a shelf registration statement providing us the ability to register and sell our securities in the aggregate amount up to $100 million. The shelf registration statement included an embedded ATM facility for up to $40 million.

On November 7, 2024, we entered into an amendment to the Perceptive Credit Agreement. The amendment reduced the financial covenant trailing twelve-month revenue targets relating to its Surgical Aesthetics segment (tested quarterly), with amended year-end targets of $37.0 million, $52.4 million and $60.3 million for 2025, 2026 and 2027, respectively. The amendment also introduced a maximum operating expense financial covenant, with full year targets of $40.0 million and $45.0 million for 2025 and 2026, respectively. The Perceptive Credit Agreement, as amended, continues to contain customary affirmative and negative covenants, including covenants limiting the ability of us and our subsidiaries, among other things, to incur debt, grant liens, make distributions, enter certain restrictive agreements, pay or modify subordinated debt, dispose of assets, make investments and acquisitions, enter into certain transactions with affiliates, and undergo certain fundamental changes, in each case, subject to limitations and exceptions set forth in the Perceptive Credit Agreement. Additionally, we must maintain a balance of $3.0 million in cash and cash equivalents during the term of the Perceptive Credit Agreement. As of September 30, 2025, we were in compliance with the financial covenants contained within the Perceptive Credit Agreement, as amended. Our continued compliance with covenants is subject to meeting or exceeding forecasted Surgical Aesthetics revenues, as amended and reducing operating expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT'S DISCUSSION AND ANALYSIS OF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

For a more in-depth description of the terms of the Perceptive Credit Agreement, as amended, see Note 11 in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2024 and Note 5 of Notes to Condensed Consolidated Financial Statements in Item 1 of this Quarterly Report on Form 10-Q.

At September 30, 2025, we had purchase commitments totaling approximately $4.4 million, substantially all of which is expected to be purchased within the next twelve months.

**Critical Accounting Estimates**

In preparing the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), we have adopted various accounting policies. Our most significant accounting policies are disclosed in Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 13, 2025.

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Our estimates and assumptions, including those related to inventories, intangible assets, property, plant and equipment, legal proceedings, research and development, warranty obligations, product liability, sales returns and discounts, stock-based compensation and income taxes are updated as appropriate, which in most cases is at least quarterly. We base our estimates on historical experience, or various assumptions that are believed to be reasonable under the circumstances and the results form the basis for making judgments about the reported values of assets, liabilities, revenues and expenses. Actual results may materially differ from these estimates.

Estimates are considered to be critical if they meet both of the following criteria: (1) the estimate requires assumptions about material matters that are uncertain at the time the accounting estimates are made and (2) other materially different estimates could have been reasonably made or material changes in the estimates are reasonably likely to occur from period to period. Our critical accounting estimates include the following:

**Accounts Receivable Allowance**

We maintain a reserve for uncollectible accounts receivable. When evaluating the adequacy of the allowance for credit losses, we analyze historical bad debt experience, the composition of outstanding receivables by customer class, and the age of outstanding balances, and we make estimates in connection with establishing the allowance for credit losses, including the expected impacts of changes in the operating environment in multiple countries as well as the credit terms being offered to customer, to determine where adjustments to historical experience are warranted. The economic uncertainty in the capital equipment market being experienced in the aesthetic space as a result of the disruption from GLP-1's has resulted in the granting of extended credit terms. Accordingly, we believe that there is additional exposure in our outstanding receivables and have adjusted our accounts receivable allowance for this expectation. Changes in estimates are reflected in the period they are made. If the financial condition of our customers deteriorates, resulting in an inability to make payments, additional allowances may be required.

**Litigation Contingencies**

In accordance with authoritative guidance, we record a liability in our consolidated financial statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible, but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the consolidated financial statements. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. We discuss significant judgements with counsel, which include determining the legitimacy of asserted and unasserted claims, the probability that a loss has been incurred, the estimates of the net potential range of losses associated with these claims, the timing of the losses associated with these claims and historical experience with these claims. Additionally, the deductibles on our insurance policies that cover these claims have increased in recent periods, creating additional exposure and losses in excess of historical experience. It is at least reasonably possible that a change in the actual amount of loss will occur in the near term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT'S DISCUSSION AND ANALYSIS OF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

**Off-Balance Sheet Arrangements**

We have no off-balance sheet arrangements at this time.

**Recent Accounting Pronouncements**

[<u>See Note 2 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q</u>](#recent).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22

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**APYX MEDICAL CORPORATION**

**ITEM 3**. **Quantitative and Qualitative Disclosures about Market Risk**

Not applicable.

**ITEM 4. Controls and Procedures**

**Disclosure Controls and Procedures** 

Our management has established and maintains disclosure controls and procedures that are designed to ensure that the information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Management carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of September 30, 2025, the Company's disclosure controls and procedures were effective.

**Changes in Internal Control Over Financial Reporting**

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the period covered by the Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

**PART II.** &nbsp;&nbsp;&nbsp;&nbsp;**Other Information**

**ITEM 1. Legal Proceedings**

[<u>See Note 10 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q</u>](#Note_10_Commitments_and_Contingencies).

**ITEM 1A. Risk Factors**

There have been no material changes to the risk factors described under Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

**ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds**

None.

**ITEM 3. Defaults Upon Senior Securities**

None.

**ITEM 4. Mine Safety Disclosures**

Not Applicable.

**ITEM *5.* Other Information**

None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

**ITEM 6. Exhibits**

---

| | |
|:---|:---|
| 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)](http://www.sec.gov/Archives/edgar/data/719135/000100944811000015/exhibit31.htm) |
| 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)](http://www.sec.gov/Archives/edgar/data/719135/000100944811000015/exhibit32.htm) |
| 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)](http://www.sec.gov/Archives/edgar/data/719135/000071913517000064/a2017q3exhibit35.htm) |
| 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)](http://www.sec.gov/Archives/edgar/data/719135/000071913518000021/bvx_201805xex31certificate.htm) |
| 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)](http://www.sec.gov/Archives/edgar/data/719135/000071913518000086/bvx_20181228xex31.htm) |
| 31.1\* | [Certification pursuant to Section 302 of Sarbanes-Oxley Act of 2002](ex_854183.htm) |
| 31.2\* | [Certification pursuant to Section 302 of Sarbanes-Oxley Act of 2002](ex_854184.htm) |
| 32.1\* | [Certification pursuant to Section 906 of Sarbanes-Oxley Act of 2002](ex_854185.htm) |
| 32.2\* | [Certification pursuant to Section 906 of Sarbanes-Oxley Act of 2002](ex_854186.htm) |
| 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) |

---

\* Filed herewith.

\*\* XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended and otherwise is not subject to liability under these sections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APYX MEDICAL CORPORATION

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **Apyx Medical Corporation** | **Apyx Medical Corporation** |
| Date: November 6, 2025 | By: | */s/ Charles D. Goodwin II* |
|  |  | Charles D. Goodwin II |
|  |  | President, Chief Executive Officer and Director |
|  |  | (Principal Executive Officer) |
| Date: November 6, 2025 | By: | */s/ Matthew Hill* |
|  |  | Matthew Hill |
|  |  | Chief Financial Officer, |
|  |  | Treasurer and Secretary |
|  |  | (Principal Financial Officer) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26

## Exhibit 31.1

**EXHIBIT 31.1**

**Certificate Pursuant to Section 302**

**of Sarbanes** – **Oxley Act of 2002**

**CERTIFICATION OF CEO**

I, Charles D Goodwin II, the Registrant's Chief Executive Officer, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Apyx Medical Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: November 6, 2025 | By: | */s/ Charles D. Goodwin II* |
|  |  | Charles D. Goodwin II |
|  |  | President and Chief Executive Officer |

---

## Exhibit 31.2

**EXHIBIT 31.2**

**Certificate Pursuant to Section 302**

**of Sarbanes** – **Oxley Act of 2002**

**CERTIFICATION OF CFO**

I, Matthew Hill, the Registrant's Chief Financial Officer, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Apyx Medical Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: November 6, 2025 | By: | */s/ Matthew Hill* |
|  |  | Matthew Hill |
|  |  | Chief Financial Officer, Treasurer and Secretary |

---

## Exhibit 32.1

**EXHIBIT 32.1**

**Certificate Pursuant to 18 U.S.C Section 1350, as adopted pursuant to**

**Section 906 of Sarbanes** – **Oxley Act of 2002**

**CERTIFICATION OF CEO**

In connection with the quarterly report on Form 10-Q of Apyx Medical Corporation (the *"Company"*) for the period ended September 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the *"Report"*), the undersigned Chief Executive Officer certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: November 6, 2025 | By: | */s/ Charles D. Goodwin II* |
|  |  | Charles D. Goodwin II |
|  |  | President and Chief Executive Officer |

---

## Exhibit 32.2

**EXHIBIT 32.2**

**Certificate Pursuant to 18 U.S.C Section 1350, as adopted pursuant to**

**Section 906 of Sarbanes** – **Oxley Act of 2002**

**CERTIFICATION OF CFO**

In connection with the quarterly report on Form 10-Q of Apyx Medical Corporation (the *"Company"*) for the period ended September 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the *"Report"*), the undersigned Chief Financial Officer certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: November 6, 2025 | By: | */s/ Matthew Hill* |
|  |  | Matthew Hill |
|  |  | Chief Financial Officer, Treasurer and Secretary |

---