Earnings call transcript Q3 2022

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Operator

Hello and welcome, ladies and gentlemen to Third Quarter of 2022 Earnings Conference Call for Apyx Medical Corporation. At this time, all participants have been placed in listen-only mode. At the end of the company’s prepared remarks, we will conduct a question-and-answer session. Please note that this conference call is being recorded and that the recording will be available on the company’s website for replay shortly.

Before we begin, I would like to remind everyone that our remarks and responses to your questions today may contain forward-looking statements that are based on the current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including without limitation to those identified in the risk factors section of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, our most recent 10-Q filing and the company’s other filings with the Securities and Exchange Commission. from available our on updated SEC, with maybe are which our factors time-to-time filings in the Such website.

non-GAAP future result We update undertake references Principles, calculated comparable new financial measures to a are GAAP. calculated measures also measures. Accepted Accounting in or publicly otherwise. information, Relations of of on not We these website. generally accordance financial most refer revise our the our those certain available or earnings in to presented call no as the forward-looking statements include are obligation in will events or measures to to accordance that and Generally non-GAAP Investor This GAAP press of financial Reconciliations with as portion the release with

the like sir. over Apyx Officer. now Charlie Goodwin, Chief turn President ahead, Please go would Mr. to Medical’s to and Executive call I

Charles Goodwin

Officer, on am Thanks, by our operator. call. earnings Welcome Financial I Semb. quarter everyone our call today’s third Tara joined to Chief

Turning our the our on of before we updated the factors to the I you update in third operational and what results today’s thoughts quarter earnings in and Q&A. in will call detail will will guidance we which with in for as guidance third some focus results discuss to quarter a Then our financial quarter months. revenue fourth I key financial release. then XXXX, well and during reviewing open of as intend of start the for our updated conclude areas performance. an I by will progress provide quick contributed our third to agenda that quarter with cover today, recent our we Tara

for review revenue results started of with QX. a Let’s get our

low million. our in the we of XX% Our on end provided that million third These the second the below quarter $X.X call August. quarter decreased total were of range expectations approximately revenue our $X.X results to year-over-year in earnings

which to million. decreased Energy XX% was partially total sales, year-over-year million Our and offset driven OEM year-over-year revenue by $X anticipated by $X.X performance XX% softer to sales, Advanced than increased which

Turning Energy Communication of is to quarter, to softer the results noting sales Energy in by of related late in detailed than timing by performance in Safety our it Advanced FDA posted Device that while sales March. the performance our our QX Advanced more our part, worth orders discussion were anticipated was the a in in global Medical impacted, business, largely

the and to our both products. We sales continue experience prolonged safety as pronounced domestically. global to Energy a of be we which Advanced more than had business proved ultimately disruption of disruption impacted and anticipated result communication, This internationally

domestic Energy forward trends and saw terms the quarter, not In international third performance experience our the of pronounced as monthly of to technology. with July headwinds our global quarter, with largest Advanced adoption the impact sales the continued sales during in we moving our in customers

Our improving and XX. July the and well during improving on U.S. in May were third to trends two receipt as Advanced quarter September Energy September. our which on adoption We trends in the corresponding updates August new XX and XXX(k) expectations had safety for assumed the the June as announced and communication XX products, clearances to July pleased we of following X see August

lower than magnitude anticipated. the were However, pace these of improvements and ultimately we had

Energy performance XX% more quarter products third Looking sales Advanced levels The mentioned, had to of remained of and by July, month year-over-year by that pleased primarily below performance was in our U.S. although anticipated. July. in see we than year-over-year Relative more saw during in at we sales Energy the improved detail, the to September, were August I performance in we decreased region Energy the driven weakness our year-over-year. geographic U.S. Advanced both decrease as improved by Advanced our

and slower experienced driven declines for throughout we markets continued by generators ordering primarily each region, to be largest handpieces COVID-related Taiwan, in both due communication. weaker key Latin also from in Outside demand distributors safety quarter Asia-Pacific of we These lockdowns. our in In countries, driven the our market, to in U.S., primary lowered which experienced was demand the Europe. of most part America notably and by the the

As a year-over-year. by both our sales result, than of handpieces international generators XX% more decreased and

performance Shifting on to was a two discussion quarter, our primary recent the team priorities. progress, focused of and our operational during

and and related to products customers in of regulatory with related our First, additional engaging updates latest safety with and use the Renuvion them of our on strategy the advance our cosmetic new the existing to and new procedures. clearances provide secure efficacy to and surgery safety important our information the o-U.S. second, our continuing to to clearances two U.S. profile distributors XXX(k) technology communication,

risk are With customers the our our existing ensure materials our distributors focused incremental first have clinical After receiving remained respect new time their we and as and spending as updated marketing the products we of indications. of profile. well to clearances, portfolio they comfortable much use reflect priority, needed our with with as new to understand on appropriate prospects that XXX(k) specific to as two

eliminate the under our increasing are on this team the and the our prospects how coagulation their we we their sales they remains on been to cutting, materials of of as and related well educate safety use recent focused the international to time, as users soft new in indication by is the focused updates of the process Renuvion ablation specific questions, the with for general taking with has current sharing tissue. sales customers but our engage in and focused safety prospects address our to that and way. these and business, distributor encouraged effectiveness communication communication working support on recent and Ultimately, so with needed confusion weeks our Our the they potential providing in as clinical force and materials have our understand indications to remained engage partners surge customers In communication. with same

our engaging materials. we many quarter, the of on and U.S. updated portfolio third used focused with the to been recent in distributors our where our marketing in share explain countries technology is our clearances have Specifically,

from a As and we have United to clinicians. customers we as educating our majority of strong of States that and not with Renuvion portfolio received be profile. surgeons prolonged with of updating for process technology support efficacy The has positive, reminder, feedback the and globally their engage outside continues the proactiveness engaging do been safety transparency, the directly with our more and its large evidence-based appreciating the

were that obtain two the the the and QX, indications technology to clearances related new to respect for pleased second priority to I With new outlined technology. of second cosmetic very our XXX(k) to additional of of our use Renuvion Renuvion procedures, clearances in we related the XXX(k) use securing specific surgery

XX, on our appearance skin of lax or and is neck the Renuvion supplemental APR subcutaneous announced loose we indicated procedures use now in handpiece for dermatological and As July in the region. improve to esthetics

to safety the opportunity their clearance in procedures As safety performed earlier, further This in include related market study remain safety The the of technology. the by I multicenter the new Having the XXX(k) better IDE communication, of XX-patient the that addressable to by secured evidence the question and track market neck contouring support for our world the real to XXX,XXX strong end effectiveness to no communication. mentioned clearances clearance, expands profile there supported this and We U.S. two related annually. clearance following our XXX(k) begin Renuvion clinical the also our update validates of validation our positioned launches application cosmetic the of followed clearances receipt technology. updates our is we limited and new to FDA with XXXX. posted commercial XXX(k) are safety on clinical two important our

demand not safety fully impact to resolved. two With our It disruption assumed. this continues of and summer, that new has recovery while prior the XXX(k) to said, pace apparent the been beneficial communication not guidance has it is in performance our that resulted had clearances receiving related the overall to

pre-submission regulatory engaging secure the indication, to an believe have been potential the slower address recent the directly we anticipated the combination the demonstrating additional remaining and/or new for used our our pace regulatory which of in with of Given specific team than proactively to Renuvion FDA when submission appearance months, path technology submission potential safety In request understand submitted feedback will of our the with the September, recovery a liposuction. skin in we of indication improve for proposed safety to limitations of communication.

normal receive we expect timelines, the proposed feedback Assuming our on to would FDA’s December. response plan and formal in

to But the proactive strong the team our remain and and safety that are therapies back, Through communication. established as commitment Stepping the how importantly, remains aim to industry. technology. always This collaborative our and we demonstrate ongoing Apyx the to FDA the with evidence-based and obviously outcomes. safety within positive practices the engaged, continued we productive. challenges responsible Medical efficacy we to distinguish improved and in FDA, have thought we of our an convinced is business organization patient safety our Most frustrated engagement leadership related with

to adhering surgery safe procedures, during market cosmetic so We are of the used is to specific use liposuction technologies, products the to and effective which the focus no on best forward clearance on understanding our those the everyone to support FDA’s in industry there ensuring the that look or today. a of continued and with especially do after

guidance. over Tara? and Tara it to XXXX to review quarterly turn me our Let financial results

Tara Semb

by gross to material shipping product performance partially higher mix offset Energy geographic sales, already our we results decrease changes gross serve. profit mix newer segment, or APR Thanks, revenue total into to segment increased by in was product the within XX.X% two our segments, discussed profit primarily Gross $X.X results. mix XXXX the driven domestic our Energy them percentage in gross higher comprising profit our the mix Charlie. a million manufacture Advanced and at since quarter quarter the of we XX% obtained to These and headwinds I as continue costs the were registrations for our will year our experience with costs. and a of total start inventory, year-over-year countries models within XX.X% third line like my to OEM percentage $X.X compared higher our decreased with introduced our Charlie was review Advanced period. increased segment margin of The margin million. sales of of third we comprising our various the sales by prior as between Gross margin to sales, handpiece, and in

Operating XX% million, supplier expenses the total was driven primarily was surgical $XX,XXX year-over-year to to of $XX.X million. accrual. operations year. elimination primarily million, quarter compared and salaries by year. expense, $X.X the core decrease to arrangement $X.X of was for expenses operating change decreased was which million of the Loss costs, million. related XXXX in or bonus symmetry increased to year-over-year $X.X related $XX,XXX of $X.X our from year-over-year or to million in segment. with was The $XX,XXX due third $X.X decrease other primarily the our Total year-over-year driven X% divestiture to expense income Income last compared last wind by other net business The down tax the

$X.XX million adjusted to attributable for per to the Adjusted or loss in per of million stockholders period. XXXX loss Net third $X.X prior $X.X compared third or to of share quarter of XXXX. $X.XX $X.XX quarter EBITDA compared for EBITDA was loss $X.XX million the was year the million share

reconciliation EBITDA press As loss our release. to we earnings detailed a non-GAAP stockholders from a reminder, adjusted attributable net to provide loss in

September had million and cash million, of company $XX.X As compared equivalents as XXXX. to XXXX, of cash $XX.X December of XX, XX, the

million, months X in compared year-over-year first attributable The the of cash XXXX is for operations to from primarily $XX.X operations meet $XX.X of order year. was environment. increase demand light increase ensure million the to in of the in use used last levels our in customer and initiative are our increase supply challenging in strategic global to chain net to able we our to inventory loss Cash

press a guidance, XXXX which earnings updated of we to in review our Turning today. our financial release

months XX XX, prior X% growth revenue to million, of representing December total million X% to compares XX% a our of to or ended million, we $XX.X range decline XXXX, in $XX.X expect X% the the For This of year-over-year. $XX.X $XX of to range to year-over-year.

$X.X revenue Energy to compared prior year-over-year, million, Advanced to decline XX% $XX.X to $X.X assumes or of approximately $X range approximately XX% XX% $X.X or approximately prior $XX.X XX% representing to X% of range $XX.X of compared of million, to growth to our to to million, X% guidance of growth $XX.X of revenue OEM of revenue growth total of approximately XX% and year-over-year. Our representing million, a to XX% to year-over-year, range our year-over-year,

guidance. With to respect revenue Energy our Advanced

March FDA XX customer a medical our guidance safety on procedure device demand global to the range negative reflect impacts communications XXXX. First, continues potential on for adoption new of and result handpieces related as

Second, our thermal to guidance regions. skin lax and procedures in and from clinical of launches improve the the in range neck specific for continues resurfacing to the initial appearance procedures commercial contributions mental indications assume sub new

for end indications We continue demand range to to launch guidance commercial XXXX. and assume to of continues existing these outside third, driven expect growth markets. by And is international enter that both full our by the year U.S.

of In million, of our range our attributable our $XX.X $XX.X of $X.X compared terms fiscal expect million, EBITDA guidance prior adjusted and to in XXXX, year in $XX.X million million. now of loss to the of the to stockholders $XX.X profitability to compared prior $XX.X to we for range $XX to range range net $XX.X to loss

and prior our gross XX%, of XXXX of following financial in approximately formal margins XX% XXXX. year XX% XX% incorporates guidance for approximately Our year, purposes, modeling to XX% for to first to this fiscal the expectation compared considerations

expenses operating of the of XX% the to year had expectation prior approximately our reduction midpoint what range $X million our in by assumed. in compared reflects updated to guidance expense versus to to our X% expectations The guidance approximately of prior increase full year-over-year, Second, XX%. range X% our operating

expect other $X.X previously, $XXX,XXX in expense $XXX,XXX. of previously, $XXX,XXX million of and million, XX.X based to also compared $XXX,XXX outstanding expense Fourth, approximately of $XXX,XXX million of of $X interest of shares average to approximately amortization diluted approximately non-cash to million approximately non-cash approximately $X previously, compared non-controlling weighted compensation shares. stock interest approximately and compared income $XXXXXX to tax $XXX,XXX, to and net depreciation income Third we

to today’s September concern consideration the period with when guidance filed while cash of at going Lastly, the guidance of includes substantial of the financial raises company’s to for to financial X evaluating release, it our sheet SEC least continue doubt provide for to to our additional balance light sheet our balance to condition practice burn, and XX, we our XXXX. related language expected related condition. This is as language as a year, be not ability a XX-Q for earnings wanted to in provide our and revision XXXX about color

September as had equivalents XX, cash million. of of and First, $XX.X we cash

receivable represents in as tax investors of have an discussions XXXX, income our with on and we million. which balance liquidity in Second, approximately noted incremental our analysts $X.X sheet,

Third, GAAP what of guidance the the GAAP which guidance $X at updated low our by QX, guidance decrease sequential operating QX million, improvement. We million. now expenses prior a to million net loss $X expect compared compensation assumes. Together, working capital expected amortization of to in approximately reflecting midpoint updated total a offset of range partially to reflects $X.X our million million. $X fourth, approximately of of financial our in or in $X are year of X% assumes And in end and non-cash, these cash stock expense cash result is use depreciation be and end modest

business our XXXX from We continued and government. the our receivable run capital to U.S. the sheet uncertain to tax income potential to the to all enhance timing options additional actively of continue evaluate secure flexibility and needed provide the balance given

the remarks. to With call closing back turn that, for Charlie I’ll

Charles Goodwin

Tara. Thanks,

for We results the QX both had our have revised more XXXX our financial to trends sales in in softer pace during the quarter gradual business and guidance guidance assumed. than fourth recovery compared of to prior what reflect expected

our our to to to in very this guidance the to come. working strategic facilitate profitability of are initiatives. trajectory in growth secure we our in expect I mind, to In the and maximize efforts requisite progress time. years Apyx focused to cadence to on return want growth prudent capital With to challenging management of our this we strong Tara’s addition related historical towards are to emphasize during resources expense position that we comments, XXXX, our Medical Through

to quarter, featured leverage Looking program. ahead, promotional the support we engage In with them have marketing and understand related the continue the recent in customers our the updated and clearances safety two the now better we will to appreciate so prospects helping new received. notice language fourth our we doing in and developments

new preparing Renuvion of of have also use indications regulatory the continue additional on our front indications new technology to while recent the for received. technology, we will clinical our Renuvion related pace clearances to the We commercialize progress to with secure

outcomes for than and the the its for our and efforts differentiation innovation efficacy safety facilitating ever, us helping and We in mission. More the employees I Medical Renuvion we by surgery marketplace. their demonstrated of cosmetic Apyx by their and appreciate market our excited and within would investors thank its are today’s on adoption. support technology by like distributors call to awareness customers, everyone and our drive our continued

questions. now for With call that, operator, let’s the open

Operator

question Matt first Group. question. proceed of you. Please [Operator with Craig-Hallum with Instructions] And our Capital from line comes Thank the Hewitt your

Matt Hewitt

Thank Maybe what is domestically, Good FDA you was market you’re the taking for follow-up, the little one first pull a pretty the QX caused U.S. for between quarter. March, the safety putting morning. that happened or domestic strong question QX then and update and second that a the but in to question communication back the questions. a And bit? despite

Charles Goodwin

Yes, thanks, Matt.

Our end versus that of guidance, by about stated to adoption U.S. we slower August decline. new year-over-year a QX still to expected due mix the and versus in see drove but year-over-year U.S. as the that was decreased drove half primarily guidance. improved sales before, sales performance the by I was than impact. our the lower safety softer more related we majority the than did of pace customers And low anticipated sales performance the performance the September, our in in And of XX% than AE July

Matt Hewitt

international, that are markets call so a the bit your Okay, but in in far slower their have a of out And to on little international you And the laid of more bouncing as safety peers? are if maybe of little U.S. think there reaction quicker a bit markets, from any as success you. Thank something that that a some had remainder? kind the concerned, as that just QX recovery and communication you’re expecting with can international kind delayed than distributors replicate you the you is had that this maybe I talk back the then so,

Charles Goodwin

things to XX%, the U.S. sequential outside I the by September, both outside the They not those not still of of better. getting It’s notable just clear it’s they are safety see and as and States did it saw impact But the than sale was They thought America and quickly just as that August better understand decreased communication. are bet. more at we in Europe the thought still that you everybody in the regions improving that’s are from want the most getting just Yes, and improvements that things United but improving. are want were. we same. even be we pace Latin

Matt Hewitt

it. Got Thank you.

Operator

Sandler. next proceed line Please Matthew the question from O’Brien your Our comes Piper with with of question.

Matthew O’Brien

taking maybe I in more for my was you August, the the Thanks bit thoughts guess your are really guided of balanced. like the you Charlie, Great. little on I aspirational middle a but July than soft, rest seemed questions. year guess of knew

So, again, as business. we is look in advanced up at QX, energy big step the a there especially

for competence as indications the you indications? improvement, and why So, go those new type far as and what are and new of enthusiasm that seeing

Charles Goodwin

Yes.

dynamics the the Also, of are there potential to tailwinds. of fourth represents a because to facing quarter, multiple range. it obviously, headwinds QX in and ability our see confident in believe view that have in And risks where of the in we is we growth do we the deliver quarter guidance from it’s QX, the least at the We business. the low realistic So, end seasonal the strongest our – we are quarter. fourth

a has QX the with month-to-month, the QX. outside we sales months is and in improving in would in key and in in going potential taking on is it close pipeline. our that U.S., U.S. engagement prospects lot longer and more The visibility which is like, what’s strong resulted Our obviously the recent puts though to than

good done situation very so be And And want do it encouraging. we for of this a to-date in business March, again, this the low had guidance. with always proven job forecast before come are very being to we that And comfortable that very QX look, is last of safety thing able the are we we the notice. more trends end difficult believe but has to the safety the notice, our

Matthew O’Brien

getting in Okay. to a to going back That’s you your ‘XX. are top more rates, helpful. And growth here historical really then comments easy have about

snapback So, kind to just I hopefully, should historically mean should more there or and we seen is what we some upside? – of we anticipate your see next growth big guiding to year a of similar have more

Charles Goodwin

Yes.

But incredibly we going And we now, we ‘XX, appreciate about right to question. to about bullish as the bring prepared was talk other look, remain much think definitely our incredibly what we are to bullish So, obviously the remarks. about in in going of ‘XX this But not obviously will March, than about talk is what business, we opportunity. us.

Matthew O’Brien

Okay. Understood. Thank you.

Operator

comes the proceed Capital question. question of next Please Kyle Lake Our Bauser Markets. Street from with with line your

Kyle Bauser

mentioned in Great. taking back and Charlie, in the questions to WIPO. and Thanks to pathways all the go clearance my remarks little your a about bit a FDA with get you prepared for conjunction request the evaluate updates. to for

are be? by Just waiting wondering bit on, December. provide know back color you to pathways what would you potential if that hear a more I the little could

kind could to to data a run a Thank sufficient that trial, kind curious, do be Just have of of you for clearance the just you. you curious? need think

Charles Goodwin

Yes. I appreciate Thanks Kyle. the question.

were combination liposuction. when though, the for to we with obtain is the plan specific additional appearance skin that request, It’s our we prepared would this on The got As we are I of been address remarks, the used And always FDA remaining doesn’t communication. safety said request feedback the of we demonstrating securing to in their we submission first get indication we the a more. indications new pre-submission to have technology safety get September. proposed of submitted directly our the in that the a always Renuvion after limitations indications, to improve just going on focused our to And objective were mean two stopped. because believe specific in of

in So, our and reviewed by data the study our world real request is supported in from evidence peer studies. IDE existing safety clinical supplemental area,

And timelines, from it And very of in feedback expect we response Renuvion. and plan safety a December. strong believe highlights would And our so we the assuming the much formal very case. that is it the normal FDA’s

Kyle Bauser

for I And And it. appreciate guess Got would gotten that. that. follow-up the get U.S. but clearance guess I I have with subdural physicians or is we course, Renuvion, then I to been am just distributors who I either waiting from pushback a or said, segmental Renuvion just region like in in you conjunction there the efforts, treatment resurfacing. Have with the coagulation marketing towards of in and lipo the and

up, doesn’t a for am maybe but to there out physicians clearance So, decision? kind come that there waiting forward final move of I are that just make are and wondering, that

Charles Goodwin

Yes.

when I thing okay that use other is So, waiting is have safety new the that combination have FDA, indication confusion prospects is if at the that out we for if know the look not because don’t the called specifically for have. among marketplace notice where in necessarily you the in the believe been by right with technologies they liposuction, and they that, there

sales the facts approved confusion than taking And process longer data, and the prospects that for with is why is something with and the else go in are what in to so combination we liposuction is to convince thought. having these them and we and everything talk is do that’s And procedures.

indication to just our they they that to waiting the the sales this teams are anybody. that it’s But all world for for that. facts know longer facts. knowledge, us thing don’t over exist taking the for And the are something. get fortunate is necessarily our But are I prospects comfortable have the they doesn’t So,

Kyle Bauser

it. Got

Okay.

just is kind I back of Appreciate queue. will jump getting it. resolving it. the be in Got people educated okay. Charles. Thank in the key you, marketplace, So, the confusion to going here,

Charles Goodwin

you. Thank

Operator

Our Dave JMP line Turkaly with question. next your with question of Securities. comes from proceed Please the

Dave Turkaly

what’s of thoughts going rep you in love anyone Good Charlie. guess are this? versus your you on little – could Okay. losing And people? that you headcount? talk today on bit just you been quickly, looks I Are maybe your about how just adding morning forest there? I a past? Are the because still Maybe

Charles Goodwin

Yes.

day, So, team the whole a same I tell team. you is that like it actually has I the I mean is of been it’s been on time. battle it’s can’t XX about it how And proud our and feet always there passionate them basis to remain everything out a of for today alleviate are every daily confusion the that safety through street, can steadfast the as the technology on am the exists this they marketplace and notice. but about actually result the a they in that doing help

And sit had team on here wood have team remains same so it’s entire and today, we the as knock the year. for we the that engaged, active

Dave Turkaly

I within combo lipo, am I that it had That’s they maybe must great. don’t it I given specifically just like well, didn’t language, with And of, you customers folks, as just existing seems the And to saying, but be feel But communication, I then I that before did. to wanted which the follow-up confirm on the numbers. buy sort lipo, the see impacted something it look imagining at mean I as new yes, specific so I could comfortable. the now totally this I recall that. remember

if So, I statement right would person. be legacy I in between not the two had jump willing am That’s curious just any there they why clearances. new, a using to which someone might been be that back if that’s in say, at looking more understandable has versus way now delineation new it they more And is think the past?

Charles Goodwin

Yes.

wrinkles submental notice. of of So, for were three the our indications the safety first area been part of Two them is your yes, by rhytides. parts and reversed there had and question for

safety The other of combination with was used notice the lipo. part in

so the portion for fact, okay. for FDA that or use effective made a And updates the in updated safety the two in lipo, when still safe clearances still point it communications proven exists. hasn’t specific talking of after the they with our been indications that And about their fact

exist. that So, that’s does one number still

reps basis, have there a actually of what and a second of all have had customer U.S. the markets. by international more increased to a FDA digits has world, Your the have a see over mid-single of base clearly been But to we both over our means, customer holding than strong existing we of part all impacted communication work the And is we to we world, retention a installed customer And that And sales U.S. base. of the distributors our active had installed and parts certain sales much safety base active In XX% base of pause than in we great have increased this the our us on done that are both pace team, we recovery, our amount our confidence job engaged on and are road gives assumed. at our see existing our but in because was the and originally question world. the of tremendous to the we pleased adoption. with year-over-year slower we and execution – the quarter-over-quarter reflects the this internationally. albeit the have

holding are that. So, well through we

Dave Turkaly

that. Thank you for

Operator

proceed with the O’Brien [Operator Please Instructions] Matthew Our with of Piper your next question. line from question Sandler. comes

Matthew O’Brien

came be more sure follow-up. of if year but things. seems Tara, bit Thanks of goes, $XX adjustments I And not think you still I at about said burn the $XX cash to expecting hear some spending I for you Charlie Tara, or as I to just out this are as far it’s are little of you the taking would like the million with of QX. a lot cash, am here in mean love [ph], making for million on side QX a but end

the little options options million But for any that the I just long that terms question. in a tax your capital? those you how could out of you flesh number? cash timing when in that sorry of have get assuming you soon more, am receivables is we see executed can can then of income some Thanks. year-end And not on that of sense bit $XX raising or So,

Tara Semb

Act, we Cares part Again, COVID, the been years to was been on the It But that processes is interaction had under are IRS. X we close we ago. that the are long do the with we we have which close we very the of end not. process. painful process. And the a feel IRS with happened see in that this have It’s of that

included expenses get yes, liquidity that at balance And expectations. to for balance. are all we enhancing they hopeful we options to in we revenue ending it’s that. near-term. very continue are look as at sure not sheet with our actively But the commensurate we the And looking that and increasing the speak, are make in So, to

Matthew O’Brien

Thank you. it. Got

Operator

comes from Russell with Capital. question of question. [Operator Instructions] line Cleveland proceed with RENN the next your Please Our

Russell Cleveland

Hello fellows.

could the One was admit to never a our FDA for shown – which bureaucrats safe to me enormous that there products. mistake. have don’t and of have will seems we our But many were XXX(k) clarification, because safety the the the effective their now basically harm us of a need make had questions, on am wondering what my with do done to here. communication, know I by FDA, I amends

what with out to they ruin can is, question I up the to they we do company. don’t FDA have really exactly the believe that’s But come the mess this created. have clear what’s to happening. interact what’s So,

So, comment you on could that?

Charles Goodwin

Yes.

can everything the we that. do things are look, regulatory the doing do in of with are getting everything the partnering are them care we involved And taken new teams that to agency, need. getting that are we to get there we for in clearances with order and So, requisite our that

forward. we we But position our as company be but is believe that we fun our So, a will in very as basis. asked day-to-day a leadership mission. on get This or believe we anything that we we for, isn’t can technology, wanted in isn’t something for us not a this. the in And we through company move

will of. we the We respect keep get things continue and agency the working to a It’s we we this But taken care turn will want. didn’t to just taking done. get with that agency,

Russell Cleveland

at I the what do to think that needed you time, expressed to that’s could challenged. agency Well, specifically, here? be the question. the And I make communication this to big amends

they clear products? this misinformation FDA do to what the really from question up about is, so And big can whole the our

Charles Goodwin

Well, are Yes. working… we

Russell Cleveland

to What can company this? we as do a to FDA they the what about can – talk

Charles Goodwin

about working working definitely company our publicly them. on – to with with lot to resolved. as talking are is the talk of working to FDA are not the going we with what we And the are, get Yes, focus things but and agency a this those

Russell Cleveland

done? they aware Okay, are So, they damage have of the

Charles Goodwin

constant Look, – have we we dialogue have agency. going agency is aware yes. dialogues with The the of on, what’s

Russell Cleveland

for so question. much Thanks Okay. taking the

Operator

conference participation. conclude you remaining are our showing no for this questions your we today. Thank for currently That at time. does And

Apyx Medical (APYX) 10 Nov 222022 Q3 Earnings call transcript