Apyx Medical (APYX) 10-Q 9 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 08, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-31885
Entity Registrant Name	APYX MEDICAL CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	11-2644611
Entity Address, Address Line One	5115 Ulmerton Road,
Entity Address, City or Town	Clearwater
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33760
City Area Code	727
Local Phone Number	384-2323
Title of 12(b) Security	Common Stock
Trading Symbol	APYX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		34,643,926
Entity Central Index Key	0000719135
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 37,282	$ 43,652
Trade accounts receivable, net of allowance of $605 and $608	12,487	14,023
Inventories, net of provision for obsolescence of $880 and $875	9,795	9,923
Prepaid expenses and other current assets	2,362	2,764
Total current assets	61,926	70,362
Property and equipment, net of accumulated depreciation and amortization of $3,642 and $3,522	1,779	1,915
Operating lease right-of-use assets	5,049	5,162
Finance lease right-of-use assets	64	69
Other assets	1,893	1,732
Total assets	70,711	79,240
Current liabilities:
Accounts payable	2,103	2,712
Accrued expenses and other current liabilities	8,077	9,661
Current portion of operating lease liabilities	356	347
Current portion of finance lease liabilities	20	20
Total current liabilities	10,556	12,740
Long-term debt, net of debt discounts and issuance costs	33,406	33,185
Long-term operating lease liabilities	4,795	4,896
Long-term finance lease liabilities	48	53
Long-term contract liabilities	1,252	1,246
Other liabilities	194	198
Total liabilities	50,251	52,318
EQUITY
Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 0 issued and outstanding as of March 31, 2024 and December 31, 2023	0	0
Common stock, $0.001 par value; 75,000,000 shares authorized; 34,643,926 issued and outstanding as of March 31, 2024 and 34,643,888 issued and outstanding as of December 31, 2023	35	35
Additional paid-in capital	82,242	81,114
Accumulated deficit	(62,024)	(54,448)
Total stockholders' equity	20,253	26,701
Non-controlling interest	207	221
Total equity	20,460	26,922
Total liabilities and equity	$ 70,711	$ 79,240

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 605	$ 608
Inventories, provision for obsolescence	880	875
Property and equipment, accumulated depreciation and amortization	$ 3,642	$ 3,522
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, outstanding (in shares)	0	0
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common stock, shares issued (in shares)	34,643,926	34,643,888
Common stock, shares outstanding (in shares)	34,643,926	34,643,888

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Sales	$ 10,244	$ 12,142
Cost of sales	4,295	4,569
Gross profit	5,949	7,573
Other costs and expenses:
Research and development	1,397	1,271
Professional services	1,574	1,740
Salaries and related costs	4,696	4,918
Selling, general and administrative	4,897	5,255
Total other costs and expenses	12,564	13,184
Loss from operations	(6,615)	(5,611)
Interest income	495	51
Interest expense	(1,396)	(234)
Other loss, net	(21)	(5)
Total other loss, net	(922)	(188)
Loss before income taxes	(7,537)	(5,799)
Income tax expense (benefit)	53	(2,267)
Net loss	(7,590)	(3,532)
Net loss attributable to non-controlling interest	(14)	(49)
Net loss attributable to stockholders	$ (7,576)	$ (3,483)
Loss per share:
Basic (in dollars per share)	$ (0.22)	$ (0.10)
Diluted (in dollars per share)	$ (0.22)	$ (0.10)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Non-controlling Interest
Beginning balance (in shares) at Dec. 31, 2022		34,598
Beginning balance at Dec. 31, 2022	$ 37,793	$ 35	$ 73,282	$ (35,735)	$ 211
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	1,367		1,367
Proceeds from debt allocated to warrants	586		586
Net loss	(3,532)			(3,483)	(49)
Ending balance (in shares) at Mar. 31, 2023		34,598
Ending balance at Mar. 31, 2023	36,214	$ 35	75,235	(39,218)	162
Beginning balance (in shares) at Dec. 31, 2023		34,644
Beginning balance at Dec. 31, 2023	26,922	$ 35	81,114	(54,448)	221
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	1,128		1,128
Net loss	(7,590)			(7,576)	(14)
Ending balance (in shares) at Mar. 31, 2024		34,644
Ending balance at Mar. 31, 2024	$ 20,460	$ 35	$ 82,242	$ (62,024)	$ 207

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net loss	$ (7,590)	$ (3,532)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	157	203
Provision for inventory obsolescence	7	0
Loss on disposal of property and equipment	20	0
Stock based compensation	1,128	1,367
Allowance for credit losses	0	(142)
Non-cash lease expense	31	0
Non-cash interest expense	221	67
Changes in operating assets and liabilities:
Trade receivables	1,478	837
Prepaid expenses and other assets	241	858
Income tax receivables	0	(207)
Inventories	138	879
Accounts payable	(599)	(776)
Accrued expenses and other liabilities	(1,573)	(1,435)
Net cash used in operating activities	(6,341)	(1,881)
Cash flows from investing activities
Purchases of property and equipment	(35)	(110)
Net cash used in investing activities	(35)	(110)
Cash flows from financing activities
Proceeds from long-term debt	0	9,289
Payment of debt issuance costs	0	(1,754)
Proceeds from debt allocated to warrants	0	586
Repayment of finance lease liabilities	(5)	(9)
Net cash (used in) provided by financing activities	(5)	8,112
Effect of exchange rates on cash	11	(58)
Net change in cash and cash equivalents	(6,370)	6,063
Cash and cash equivalents, beginning of period	43,652	10,192
Cash and cash equivalents, end of period	37,282	16,255
Cash paid for:
Interest	1,175	1
Income taxes	$ 6	$ 125

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	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 an advanced energy technology company with a passion for elevating people’s lives through innovative products, including its Helium Plasma Technology products marketed and sold as Renuvion® in the cosmetic surgery market and J-Plasma® 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 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 based upon 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, 2023. 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. Reclassifications The Company has reclassified certain amounts presented in the prior period to conform to the current period presentation. These amounts primarily relate to management salaries that were previously included within salaries and related costs and are now included within research and development. These reclassifications had no impact on previously reported net loss, accumulated deficit or cash flows for the periods presented.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2024
Accounting Standards Update and Change in Accounting Principle [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS No 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.

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Inventories consisted of the following: (In thousands) March 31, December 31, Raw materials $ 3,941 $ 4,112 Work in process 2,338 2,257 Finished goods 4,396 4,429 Gross inventories 10,675 10,798 Less: provision for obsolescence (880) (875) Inventories, net $ 9,795 $ 9,923

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: (in thousands) March 31, December 31, Accrued payroll and related costs $ 1,277 $ 829 Accrued bonuses 593 1,545 Accrued commissions 576 1,489 Accrued product warranties 432 445 Accrued product liability claim insurance deductibles 3,401 3,521 Accrued professional fees and legal related contingent liabilities 328 518 Short-term contract liabilities 515 488 Other accrued expenses and current liabilities 955 826 Total accrued expenses and other current liabilities $ 8,077 $ 9,661

DEBT

DEBT	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
DEBT	DEBT The Company’s outstanding debt with Perceptive Credit Holdings IV, LP (as initial lender and administrative agent) (“Perceptive Credit Agreement”) at March 31, 2024 and December 31, 2023 bears interest at a floating rate based on one-month SOFR, subject to a floor of 5.0%, plus 7.0% (12.3% at March 31, 2024). Included in interest expense for the three months ended March 31, 2024 are $65,000 of amortization of the debt issuance costs and $156,000 of amortization of the debt discounts on outstanding debt. Included in interest expense for the three months ended March 31, 2023 are $29,000 of amortization of the debt issuance costs and $38,000 of amortization of the debt discounts including accretion of the exit fee on the Company’s prior credit agreement. A $7.5 million delayed draw loan is available until December 31, 2024, conditioned upon, among other things, the achievement of a minimum revenue target. If drawn, the loan will be used for working capital and general corporate purposes. The Perceptive debt 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. The Perceptive Credit Agreement also requires the Company to satisfy certain financial covenants, including minimum trailing twelve month net revenue targets relating to its Advanced Energy segment (tested quarterly), with year-end targets of $41.6 million, $57.0 million, $70.2 million, and $87.8 million for 2024, 2025, 2026, and 2027, respectively. Additionally, the Company must maintain a balance of $3 million in cash and cash equivalents during the duration of the Perceptive Credit Agreement’s term. As of March 31, 2024, the Company was in compliance with the financial covenants contained within the Perceptive Credit Agreement. The Company’s term loan under the Perceptive Credit Agreement, net consists of the following: (In thousands) March 31, December 31, Term loan $ 37,500 $ 37,500 Unamortized debt issuance costs (1,175) (1,240) Unamortized debt discount (2,919) (3,075) Term loan, net $ 33,406 $ 33,185 As of March 31, 2024, principal repayments on the debt are as follows: (In thousands) 2024 $ — 2025 — 2026 — 2027 2,216 2028 35,284 Total repayments $ 37,500

CHINA JOINT VENTURE

CHINA JOINT VENTURE	3 Months Ended
	Mar. 31, 2024
Noncontrolling Interest [Abstract]
CHINA JOINT VENTURE	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 China JV has been consolidated in these condensed consolidated financial statements. The agreement required the Company to make capital contributions into the newly formed entity of approximately $357,000, 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 $255,000, of which $153,000 has been made as of March 31, 2024. As of the date of these condensed consolidated financial statements, the joint venture has not commenced principal operations. Changes in the Company’s ownership investment in the China JV were as follows: Three Months Ended March 31, (In thousands) 2024 2023 Beginning interest in China JV $ 229 $ 219 Net loss attributable to Apyx (14) (51) Ending interest in China JV $ 215 $ 168

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER SHARE	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 (in thousands, except per share data) 2024 2023 Numerator: Net loss attributable to stockholders $ (7,576) $ (3,483) Denominator: Weighted average shares outstanding - basic and diluted 34,644 34,598 Loss per share: Basic and diluted $ (0.22) $ (0.10) Anti-dilutive instruments excluded from diluted loss per common share: Options 8,513 7,783 Warrants 1,500 250

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	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 grant date fair value 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 $1,128,000 in stock-based compensation expense for the three months ended March 31, 2024, as compared with $1,367,000 for the three months ended March 31, 2023. Stock option activity is summarized as follows: Number of options Weighted average exercise price Outstanding at December 31, 2023 7,342,883 $ 6.31 Granted 1,468,929 2.36 Exercised (569) 2.50 Canceled and forfeited (298,079) 7.63 Outstanding at March 31, 2024 8,513,164 $ 5.58 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. For the three months ended March 31, 2024, we received 531 options as payment in the exercise of 38 options. There were no such exercises for the three months ended March 31, 2023. 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 2024 (“2024 Grants”) utilizing a Black Scholes model. 2024 Grants Strike price $1.27 - $2.42 Risk-free rate 4.0% - 4.2% Expected dividend yield — Expected volatility 92.1% - 94.3% Expected term (in years) 6

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income tax expense (benefit) was approximately $53,000 and $(2,267,000) with effective tax rates of (0.7)% and 39.1% for the three months ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 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. For the three months ended March 31, 2023, the effective rate differs from the statutory rate primarily due to the reversal of the Company’s liability for uncertain tax positions, including accrued interest and penalties of approximately $2.1 million which were sustained upon the completion in January 2023 of the IRS examination of the Company’s 2018 through 2020 income tax returns, partially offset by a valuation allowance on the NOL and net deferred tax assets generated during the period.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	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 our Helium Plasma technology. The outcomes of these legal actions are not within the Company’s control and may not be known for prolonged periods of time. Management believes that such claims are adequately covered by insurance; however, in the case of one of the Company’s carriers, the Company is in a dispute regarding the total level of coverage available. 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. 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 $1,450,000 to $1,950,000. The Company recorded an estimated loss of $1,450,000 related to the matters during 2022. 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 in connection with off-label use of Renuvion products and the Company’s alleged mismarketing of the same. The suits are based 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 vigorously to 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 2023. 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 March 31, 2024, the Company had purchase commitments totaling approximately $2.7 million, substantially all of which is expected to be purchased within the next twelve months.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	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 March 31, 2024 and 2023, the Company made purchases from this supplier of approximately $51,000 and $44,000, respectively. At March 31, 2024 and December 31, 2023, respectively, the Company had net deposits with and payables to this supplier approximately $31,000 and $82,000, respectively.

GEOGRAPHIC AND SEGMENT INFORMAT

GEOGRAPHIC AND SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
GEOGRAPHIC AND SEGMENT INFORMATION	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 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 chief operating decision maker 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: Advanced Energy and OEM. “ Corporate & Other ” includes certain unallocated corporate and administrative costs which were 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, therefore no segment specific operating expenses are incurred. Summarized financial information with respect to reportable segments is as follows: Three Months Ended March 31, 2024 (In thousands) Advanced Energy OEM Corporate & Other Total Sales $ 7,453 $ 2,791 $ — $ 10,244 (Loss) income from operations (2,940) 732 (4,407) (6,615) Interest income — — 495 495 Interest expense — — (1,396) (1,396) Other loss, net — — (21) (21) Income tax expense — — 53 53 Three Months Ended March 31, 2023 (In thousands) Advanced Energy OEM Corporate & Other Total Sales $ 9,690 $ 2,452 $ — $ 12,142 (Loss) income from operations (1,476) 851 (4,986) (5,611) Interest income — — 51 51 Interest expense — — (234) (234) Other loss, net — — (5) (5) Income tax benefit — — (2,267) (2,267) International sales represented approximately 31.9% of total revenues for the three months ended March 31, 2024, as compared with approximately 26.9% of total revenues for the three months ended March 31, 2023. Revenue by geographic region, based on the customer's “ship to” location on the invoice, are as follows: Three Months Ended (In thousands) 2024 2023 Sales by Domestic and International Domestic $ 6,979 $ 8,871 International 3,265 3,271 Total $ 10,244 $ 12,142

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassifications	Reclassifications The Company has reclassified certain amounts presented in the prior period to conform to the current period presentation. These amounts primarily relate to management salaries that were previously included within salaries and related costs and are now included within research and development. These reclassifications had no impact on previously reported net loss, accumulated deficit or cash flows for the periods presented.
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS No 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.
Share 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 grant date fair value 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.

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consisted of the following: (In thousands) March 31, December 31, Raw materials $ 3,941 $ 4,112 Work in process 2,338 2,257 Finished goods 4,396 4,429 Gross inventories 10,675 10,798 Less: provision for obsolescence (880) (875) Inventories, net $ 9,795 $ 9,923

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	Accrued expenses and other current liabilities consisted of the following: (in thousands) March 31, December 31, Accrued payroll and related costs $ 1,277 $ 829 Accrued bonuses 593 1,545 Accrued commissions 576 1,489 Accrued product warranties 432 445 Accrued product liability claim insurance deductibles 3,401 3,521 Accrued professional fees and legal related contingent liabilities 328 518 Short-term contract liabilities 515 488 Other accrued expenses and current liabilities 955 826 Total accrued expenses and other current liabilities $ 8,077 $ 9,661

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Term Loan	The Company’s term loan under the Perceptive Credit Agreement, net consists of the following: (In thousands) March 31, December 31, Term loan $ 37,500 $ 37,500 Unamortized debt issuance costs (1,175) (1,240) Unamortized debt discount (2,919) (3,075) Term loan, net $ 33,406 $ 33,185
Schedule of Long-Term Debt Maturities	As of March 31, 2024, principal repayments on the debt are as follows: (In thousands) 2024 $ — 2025 — 2026 — 2027 2,216 2028 35,284 Total repayments $ 37,500

CHINA JOINT VENTURE (Tables)

CHINA JOINT VENTURE (Tables)	3 Months Ended
	Mar. 31, 2024
Noncontrolling Interest [Abstract]
Schedule of China Joint Venture	Changes in the Company’s ownership investment in the China JV were as follows: Three Months Ended March 31, (In thousands) 2024 2023 Beginning interest in China JV $ 229 $ 219 Net loss attributable to Apyx (14) (51) Ending interest in China JV $ 215 $ 168

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Earnings (Loss) Per Share	The following table provides the computation of basic and diluted loss per share. Three Months Ended (in thousands, except per share data) 2024 2023 Numerator: Net loss attributable to stockholders $ (7,576) $ (3,483) Denominator: Weighted average shares outstanding - basic and diluted 34,644 34,598 Loss per share: Basic and diluted $ (0.22) $ (0.10) Anti-dilutive instruments excluded from diluted loss per common share: Options 8,513 7,783 Warrants 1,500 250

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Options And Stock Awards	Stock option activity is summarized as follows: Number of options Weighted average exercise price Outstanding at December 31, 2023 7,342,883 $ 6.31 Granted 1,468,929 2.36 Exercised (569) 2.50 Canceled and forfeited (298,079) 7.63 Outstanding at March 31, 2024 8,513,164 $ 5.58
Schedule of Option Fair Value Assumptions	The Company calculated the grant date fair value of options granted in 2024 (“2024 Grants”) utilizing a Black Scholes model. 2024 Grants Strike price $1.27 - $2.42 Risk-free rate 4.0% - 4.2% Expected dividend yield — Expected volatility 92.1% - 94.3% Expected term (in years) 6

GEOGRAPHIC AND SEGMENT INFORM_2

GEOGRAPHIC AND SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Schedule of Reporting Information by Segment	Summarized financial information with respect to reportable segments is as follows: Three Months Ended March 31, 2024 (In thousands) Advanced Energy OEM Corporate & Other Total Sales $ 7,453 $ 2,791 $ — $ 10,244 (Loss) income from operations (2,940) 732 (4,407) (6,615) Interest income — — 495 495 Interest expense — — (1,396) (1,396) Other loss, net — — (21) (21) Income tax expense — — 53 53 Three Months Ended March 31, 2023 (In thousands) Advanced Energy OEM Corporate & Other Total Sales $ 9,690 $ 2,452 $ — $ 12,142 (Loss) income from operations (1,476) 851 (4,986) (5,611) Interest income — — 51 51 Interest expense — — (234) (234) Other loss, net — — (5) (5) Income tax benefit — — (2,267) (2,267)
Schedule of Revenue by Geographic Area	Revenue by geographic region, based on the customer's “ship to” location on the invoice, are as follows: Three Months Ended (In thousands) 2024 2023 Sales by Domestic and International Domestic $ 6,979 $ 8,871 International 3,265 3,271 Total $ 10,244 $ 12,142

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 3,941	$ 4,112
Work in process	2,338	2,257
Finished goods	4,396	4,429
Gross inventories	10,675	10,798
Less: provision for obsolescence	(880)	(875)
Inventories, net	$ 9,795	$ 9,923

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued payroll and related costs	$ 1,277	$ 829
Accrued bonuses	593	1,545
Accrued commissions	576	1,489
Accrued product warranties	432	445
Accrued product liability claim insurance deductibles	3,401	3,521
Accrued professional fees and legal related contingent liabilities	328	518
Short-term contract liabilities	515	488
Other accrued expenses and current liabilities	955	826
Total accrued expenses and other current liabilities	$ 8,077	$ 9,661

DEBT - Narrative (Details)

DEBT - Narrative (Details) - Line of Credit - USD ($) $ in Thousands			3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Perceptive Credit Agreement
Debt Instrument [Line Items]
Interest rate floor	5%	5%	5%
Basis spread on variable rate	7%	7%
Interest rate at end of period	12.30%		12.30%
Amortization of debt issuance costs			$ 65	$ 29
Amortization of debt discount			156	$ 38
Twelve month net revenue target, year one			41,600
Twelve month net revenue target, year two			57,000
Twelve month net revenue target, year three			70,200
Twelve month net revenue target, year four			87,800
Cash and cash equivalents balance	$ 3,000		3,000
Perceptive Credit Agreement, Delayed Draw Loan
Debt Instrument [Line Items]
Amount available	$ 7,500		$ 7,500

DEBT - Schedule of Term Loan (D

DEBT - Schedule of Term Loan (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Term loan	$ 37,500
Secured Debt | Term Loan
Debt Instrument [Line Items]
Term loan	37,500	$ 37,500
Unamortized debt issuance costs	(1,175)	(1,240)
Unamortized debt discount	(2,919)	(3,075)
Term loan, net	$ 33,406	$ 33,185

DEBT - Schedule of Long-Term De

DEBT - Schedule of Long-Term Debt Maturities (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Debt Disclosure [Abstract]
2024	$ 0
2025	0
2026	0
2027	2,216
2028	35,284
Total repayments	$ 37,500

CHINA JOINT VENTURE - Narrative

CHINA JOINT VENTURE - Narrative (Details) - USD ($) $ in Thousands	10 Months Ended
	Mar. 31, 2024	Jun. 30, 2023	Dec. 31, 2019
China Joint Venture
Noncontrolling Interest [Line Items]
Required capital contribution		$ 255	$ 357
Contributions from non-controlling interest	$ 153
Chinese Supplier
Noncontrolling Interest [Line Items]
Ownership interest			51%

CHINA JOINT VENTURE - Rollforwa

CHINA JOINT VENTURE - Rollforward of Joint Venture (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Beginning interest in China JV	$ 221
Net loss attributable to Apyx	(14)	$ (49)
Ending interest in China JV	207
China Joint Venture
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Beginning interest in China JV	229	219
Net loss attributable to Apyx	(14)	(51)
Ending interest in China JV	$ 215	$ 168

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net loss attributable to stockholders, basic	$ (7,576)	$ (3,483)
Net loss attributable to stockholders, diluted	$ (7,576)	$ (3,483)
Denominator:
Weighted average shares outstanding - basic (in shares)	34,644	34,598
Weighted average shares outstanding - diluted (in shares)	34,644	34,598
Loss per share:
Basic (in dollars per share)	$ (0.22)	$ (0.10)
Diluted (in dollars per share)	$ (0.22)	$ (0.10)
Options
Anti-dilutive instruments excluded from diluted loss per common share:
Anti-dilutive instruments (in shares)	8,513	7,783
Warrants
Anti-dilutive instruments excluded from diluted loss per common share:
Anti-dilutive instruments (in shares)	1,500	250

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Stock-based compensation expense	$ 1,128	$ 1,367
Shares received in stock swaps (in shares)	531
Shares issued in stock swaps (in shares)	38

STOCK-BASED COMPENSATION - Summ

STOCK-BASED COMPENSATION - Summary of Stock Options (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Number of options
Outstanding, beginning of period (in shares) | shares	7,342,883
Granted (in shares) | shares	1,468,929
Exercised (in shares) | shares	(569)
Canceled and forfeited (in shares) | shares	(298,079)
Outstanding, end of period (in shares) | shares	8,513,164
Weighted average exercise price
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 6.31
Granted (in dollars per share) | $ / shares	2.36
Exercised (in dollars per share) | $ / shares	2.50
Canceled and forfeited (in dollars per shares) | $ / shares	7.63
Outstanding, end of period (in dollars per share) | $ / shares	$ 5.58

STOCK-BASED COMPENSATION - Fair

STOCK-BASED COMPENSATION - Fair Value Assumptions (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Strike price (in dollars per share)	$ 2.36
Risk-free rate, minimum	4%
Risk-free rate, maximum	4.20%
Expected dividend yield	0%
Expected volatility, minimum	92.10%
Expected volatility, maximum	94.30%
Expected term (in years)	6 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Strike price (in dollars per share)	$ 1.27
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Strike price (in dollars per share)	$ 2.42

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 53	$ (2,267)
Effective income tax rate	(0.70%)	39.10%
Reversal of liability for uncertain tax positions, including accrued interest and penalties		$ 2,100

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Mar. 31, 2024 USD ($) claim	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($) plaintiff	Dec. 31, 2022 USD ($) case
Other Commitments [Line Items]
Purchase obligation	$ 2,700	$ 2,700
Purchase obligation, expected purchase period		12 months
Product Liability Matters
Other Commitments [Line Items]
Number of cases | case				2
Number of plaintiffs | plaintiff			10
Number of claims dismissed | claim	2
Loss (recovery) in period				$ 1,450
Product Liability Matters | Minimum
Other Commitments [Line Items]
Estimate of possible loss	$ 1,450	$ 1,450
Product Liability Matters | Maximum
Other Commitments [Line Items]
Estimate of possible loss	1,950	1,950
Renuvion Product Liability Matters
Other Commitments [Line Items]
Loss (recovery) in period			$ 1,300
Renuvion Product Liability Matters | Minimum
Other Commitments [Line Items]
Estimate of possible loss	1,300	1,300
Renuvion Product Liability Matters | Maximum
Other Commitments [Line Items]
Estimate of possible loss	$ 1,500	$ 1,500

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) related_party	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Related Party Transaction [Line Items]
Number of related parties | related_party	2
Net deposits	$ 12,487		$ 14,023
Co-venturer
Related Party Transaction [Line Items]
Purchases from related party	51	$ 44
Net deposits	$ 31
Payables			$ 82

GEOGRAPHIC AND SEGMENT INFORM_3

GEOGRAPHIC AND SEGMENT INFORMATION - Narrative (Details) - segment	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting [Abstract]
Number of reportable segments	2
Number of operating segments	2
International sales, percent of total revenue	31.90%	26.90%

GEOGRAPHIC AND SEGMENT INFORM_4

GEOGRAPHIC AND SEGMENT INFORMATION - Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Sales	$ 10,244	$ 12,142
(Loss) income from operations	(6,615)	(5,611)
Interest income	495	51
Interest expense	(1,396)	(234)
Other loss, net	(21)	(5)
Income tax (benefit) expense	53	(2,267)
Operating Segments | Advanced Energy
Segment Reporting Information [Line Items]
Sales	7,453	9,690
(Loss) income from operations	(2,940)	(1,476)
Interest income	0	0
Interest expense	0	0
Other loss, net	0	0
Income tax (benefit) expense	0	0
Operating Segments | OEM
Segment Reporting Information [Line Items]
Sales	2,791	2,452
(Loss) income from operations	732	851
Interest income	0	0
Interest expense	0	0
Other loss, net	0	0
Income tax (benefit) expense	0	0
Corporate & Other
Segment Reporting Information [Line Items]
Sales	0	0
(Loss) income from operations	(4,407)	(4,986)
Interest income	495	51
Interest expense	(1,396)	(234)
Other loss, net	(21)	(5)
Income tax (benefit) expense	$ 53	$ (2,267)

GEOGRAPHIC AND SEGMENT INFORM_5

GEOGRAPHIC AND SEGMENT INFORMATION - Geographic (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Sales	$ 10,244	$ 12,142
Domestic
Segment Reporting Information [Line Items]
Sales	6,979	8,871
International
Segment Reporting Information [Line Items]
Sales	$ 3,265	$ 3,271