What changed in Apyx Medical Corp's 2025 10-K compared to 2024?

Across the narrative sections we track, Apyx Medical Corp (APYX) added 176 paragraphs, removed 178, and edited 140 between the 2024 and 2025 10-K filings. The biggest movers are Item 6. [Reserved] (+77/−83), Item 1. Business (+70/−66), Item 1A. Risk Factors (+26/−26).

Did Apyx Medical Corp add new Risk Factors in the 2025 10-K?

Yes — Item 1A Risk Factors shows 26 new/edited paragraphs and 26 removed paragraphs versus the 2024 10-K.

Where does this APYX 10-K diff come from?

The source filings are Apyx Medical Corp's official 2024 and 2025 Form 10-K annual reports from SEC EDGAR. 10q10k.net parses each filing, aligns paragraphs by section (Item 1, 1A, 1C, 2, 3, 7, 7A), and highlights every added, removed and edited sentence side-by-side.

What changed in Apyx Medical Corp's 10-K — 2024 vs 2025

Paragraph-level year-over-year comparison of Apyx Medical Corp's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+176 added−178 removedSource: 10-K (2026-03-10) vs 10-K (2025-03-13)

Top changes in Apyx Medical Corp's 2025 10-K

176 paragraphs added · 178 removed · 140 edited across 4 sections

Item 6. [Reserved]+77 / −83 · 60 edited
Item 1. Business+70 / −66 · 53 edited
Item 1A. Risk Factors+26 / −26 · 25 edited
Item 5. Market for Registrant's Common Equity+3 / −3 · 2 edited

Item 1. Business

Business — how the company describes what it does

53 edited+17 added−13 removed66 unchanged

2024 filing

2025 filing

Biggest changeThe costs of human healthcare have been and continue to be a subject of study, investigation and regulation by governmental agencies and legislative bodies around the world. In the U.S., attention has been focused by states, regulatory agencies and Congress on device prices and profits and programs that encourage doctors to recommend, use or purchase particular medical devices.

Biggest changeIn the U.S., attention has been focused by states, regulatory agencies and Congress on device prices and profits and programs that encourage doctors to recommend, use or purchase particular medical devices. Laws and regulations have been enacted to require adherence to strict compliance standards and prevent fraud and abuse in the healthcare industry.

A gap analysis against the prior Medical Device Directive (“MDD”), a compliance plan was implemented, and the plan is being executed for both the European Union and United Kingdom regulations to ensure compliance and minimize business disruption.

A gap analysis was conducted against the prior Medical Device Directive (“MDD”), a compliance plan was implemented, and the plan is being executed for both the European Union and United Kingdom regulations to ensure compliance and minimize business disruption.

We continued the sales of our Renuvion System 3 generator, to markets outside the U.S. and began introducing the Apyx Once Console in markets where we have received regulatory approval. Our high frequency electrosurgical generators can be used for delivery of RF energy and/or helium plasma to cut, coagulate and ablate soft tissue during open and minimally invasive surgical procedures.

We continued the sales of our Renuvion System 3 generator, to markets outside the U.S. and began introducing the Apyx One Console in markets where we have received regulatory approval. Our high frequency electrosurgical generators can be used for delivery of RF energy and/or helium plasma to cut, coagulate and ablate soft tissue during open and minimally invasive surgical procedures.

During 2024, we continued our full-scale, global, commercialization efforts for Renuvion in the cosmetic surgery market. Our direct sales force, along with our international network of distributors, is focused on becoming the sole provider of surgical equipment in the cosmetic surgery market.

During 2025, we continued our full-scale, global, commercialization efforts for Renuvion in the cosmetic surgery market. Our direct sales force, along with our international network of distributors, is focused on becoming the sole provider of surgical equipment in the cosmetic surgery market.

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 December 31, 2024, we were in compliance with the financial covenants contained within the Perceptive Credit Agreement, as amended.

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 December 31, 2025, we were in compliance with the financial covenants contained within the Perceptive Credit Agreement, as amended.

The regulatory agencies under whose purview the Company operates have administrative powers that may subject it to actions such as product withdrawals, recalls, seizure of products and other civil and criminal sanctions. In some cases, the Company may deem it advisable to initiate product recalls. The FDA and regulatory agencies around the globe are also increasing their enforcement activities.

The regulatory agencies under whose purview we operate have administrative powers that may subject it to actions such as product withdrawals, recalls, seizure of products and other civil and criminal sanctions. In some cases, we may deem it advisable to initiate product recalls. The FDA and regulatory agencies around the globe are also increasing their enforcement activities.

Helium Plasma Generator While we did a limited launch of our Apyx One Console in the U.S. in the fourth quarter of 2022, full commercial launch of the generator in the U.S. and select international markets started in 2023 and continued in 2024.

We believe our focus on the surgical aesthetic market provides us a competitive advantage over noninvasive products due to surgical treatments providing patients with more transformative and durable results.

Intellectual Property We rely on our intellectual property that we have developed or acquired over the years including patents, trade secrets, technical innovations and various licensing agreements to provide our future growth and build our competitive position. We have been issued 38 patents in the United States and 57 foreign patents.

Intellectual Property We rely on our intellectual property that we have developed or acquired over the years including patents, trade secrets, technical innovations and various licensing agreements to provide our future growth and build our competitive position. We have been issued 41 patents in the United States and 61 foreign patents.

None of our current employees are covered by a collective bargaining agreement and we have never experienced a work stoppage. During 2024, our voluntary employee turnover rate was approximately 11.8%. Equal Opportunity We have worked to create a culture that fosters employee engagement, where diverse talent is productive and passionate about the work they do.

None of our current employees are covered by a collective bargaining agreement and we have never experienced a work stoppage. During 2025, our voluntary employee turnover rate was approximately 4%. Equal Opportunity We have worked to create a culture that fosters employee engagement, where diverse talent is productive and passionate about the work they do.

Customers In the U.S., we primarily sell our Renuvion products through our direct sales force to physicians, cosmetic surgery offices and surgical centers. Outside of the U.S., our products are sold primarily through our distributor network. Products Our Advanced Energy Products consist of our Helium Plasma Technology lines (Renuvion and J-Plasma).

Customers In the U.S., we primarily sell our Renuvion and AYON products through our direct sales force to physicians, cosmetic surgery offices and surgical centers. Outside of the U.S., our products are sold primarily through our distributor network. Products Our Surgical Aesthetics Products consist of our Helium Plasma Technology lines (Renuvion and J-Plasma).

Advanced Energy Segment Overview Our product portfolio consists of our Helium Plasma Technology that is marketed and sold as Renuvion in the cosmetic surgery market and J-Plasma in the hospital surgical market.

Surgical Aesthetics Segment Overview Our product portfolio consists of our Helium Plasma Technology that is marketed and sold as Renuvion in the cosmetic surgery market and J-Plasma in the hospital surgical market.

Identified concerns and potential hazards are addressed immediately, which is evidenced by our low safety incident rate quarter over quarter. During 2024 and 2023, we had no lost time accidents. 4 Table of Contents APYX MEDICAL CORPORATION Our Two Business Segments Our reportable segments are principally organized, managed and disclosed as two operating segments: Advanced Energy and OEM.

Identified concerns and potential hazards are addressed immediately, which is evidenced by our low safety incident rate quarter over quarter. During 2025 and 2024, we had no lost time accidents. 4 Table of Contents APYX MEDICAL CORPORATION Our Two Business Segments Our reportable segments are principally organized, managed and disclosed as two operating segments: Surgical Aesthetics and OEM.

AYON has been designed to be the only device a surgeon needs for comprehensive body contouring solutions. This all-in-one system integrates advanced modalities to perform multiple functions seamlessly, removing unwanted fat, enhancing tissue contraction and addressing the full range of patient needs from contouring to aesthetic enhancement.

AYON was developed with a focus on versatility and innovation. AYON has been designed to be the only device a surgeon needs for comprehensive body contouring solutions. This all-in-one system integrates advanced modalities to perform multiple functions seamlessly, removing unwanted fat, enhancing tissue contraction and addressing the full range of patient needs from contouring to aesthetic enhancement.

Our continued compliance with covenants is subject to meeting or exceeding forecasted Advanced Energy revenues, as amended, and reducing operating expenses. For a more in-depth description of the terms of the Perceptive Credit Agreement, as amended, see Note 11 in Item 8 of this Annual Report on Form 10-K.

Our continued compliance with covenants is subject to meeting or exceeding forecasted Surgical Aesthetics revenues, as amended, and operating expenses targets. For a more in-depth description of the terms of the Perceptive Credit Agreement, as amended, see Note 10 in Item 8 of this Annual Report on Form 10-K.

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.

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.

These processes also are subject to complex and lengthy regulatory approvals. OEM Segment Overview We leverage our expertise in the design, development and manufacturing of electrosurgical equipment and medical devices by producing generators, medical devices and related accessories for large, well-known medical device manufacturers through OEM agreements, as well as start-up companies with the need for our energy-based designs.

OEM Segment Overview We leverage our expertise in the design, development and manufacturing of electrosurgical equipment and medical devices by producing generators, medical devices and related accessories for large, well-known medical device manufacturers through OEM agreements, as well as start-up companies with the need for our energy-based designs.

Any adverse regulatory action, depending on its magnitude, may restrict us from effectively marketing and selling our products and limit our ability to obtain future clearances or approvals, and could result in a substantial modification to our business practices and operations. Equivalent enforcement mechanisms exist in different countries in which we conduct business.

In addition to the reduction in force, we eliminated bonuses in 2024, reduced the size of the board of directors from eight to five members and reduced aggregate board cash compensation from $0.5 million annually to $0.1 million, while increasing board stock-based compensation.

In some of our international markets, we continue to provide support to our customers who have adopted our J-Plasma technology for the hospital surgical market. We continue to develop a clinical and regulatory strategy, and corresponding marketing campaigns, to support our market focus.

Our commercial strategy is primarily focused on advancing the usage of Renuvion in the cosmetic surgery market. In some of our international markets, we continue to provide support to our customers who have adopted our J-Plasma technology for the hospital surgical market. We continue to develop a clinical and regulatory strategy, and corresponding marketing campaigns, to support our market focus.

Currently, two 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 injectable medications. 2 Table of Contents APYX MEDICAL CORPORATION We believe the increased use of GLP-1’s has had an initial negative impact on the revenue for plastic and cosmetic surgeons and created uncertainty in the aesthetic space.

Currently, two GLP-1’s are cleared by the FDA for weight loss and now oral versions have been approved, and we anticipate a number of additional drug candidates will be approved. We believe the increased use of GLP-1’s has had an initial negative impact on the revenue for plastic and cosmetic surgeons and created uncertainty in the aesthetic space.

We are an advanced energy technology company with a passion for elevating people’s lives through innovative products, including our Helium Plasma Platform Technology products marketed and sold as Renuvion ® in the cosmetic surgery market and J-Plasma ® in the hospital surgical market.

We are 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 ® and the AYON Body Contouring System TM (“AYON”) in the cosmetic surgery market and J-Plasma ® in the hospital surgical market.

The FDA accepts MDSAP audit reports as a substitute for routine Agency inspections. Global Supply Chain Impact We rely on global supply chains, and production and distribution processes, which are complex, are subject to increasing regulatory requirements, and may be faced with unexpected changes that may affect sourcing, supply and pricing of materials, including tariffs, used in our products.

Global Supply Chain Impact We rely on global supply chains, and production and distribution processes, which are complex, are subject to increasing regulatory requirements, and may be faced with unexpected changes that may affect sourcing, supply and pricing of materials, including tariffs, used in our products. These processes also are subject to complex and lengthy regulatory approvals.

In order to assist us in leveraging our Helium Plasma Technology’s precision and effectiveness in multiple surgical specialties, we continue to utilize our Medical Advisory Board, which currently consists of 5 members representing the plastic surgery, facial plastic surgery, and cosmetic procedure specialties. Our commercial strategy is primarily focused on advancing the usage of Renuvion in the cosmetic surgery market.

We anticipate receiving clearance in the second quarter 2026. In order to assist us in leveraging our Helium Plasma Technology’s precision and effectiveness in multiple surgical specialties, we continue to utilize our Medical Advisory Board, which currently consists of 5 members representing the plastic surgery, facial plastic surgery, and cosmetic procedure specialties.

The initial submission for AYON includes the following: • Infiltration • Dual aspiration to facilitate simultaneous users • Ultrasound-assisted liposuction • Electrocoagulation to support procedures requiring removal of excess tissue • Volume enhancement capabilities • Renuvion treatment to address loose and lax skin During 2025, we plan to expand the indications with an additional 510(k) submission for AYON to include power assisted liposuction.

The initial submission for AYON includes the following: • Infiltration • Dual aspiration to facilitate simultaneous users • Ultrasound-assisted liposuction • Electrocoagulation to support procedures requiring removal of excess tissue • Volume enhancement capabilities • Renuvion treatment to address loose and lax skin On 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.

We have 14 pending patent applications in the United States and 19 pending foreign applications. We have 9 U.S. registered trademarks, 29 international registered trademarks, 1 pending U.S. trademark application, and 9 pending international trademark applications.

We have 11 pending patent applications in the United States and 21 pending foreign applications. We have 10 U.S. registered trademarks, 32 international registered trademarks, 1 pending U.S. trademark application, and 8 pending international trademark applications.

Various transparency laws and regulations require disclosures of payments and other transfers of value made to physicians and teaching hospitals and, beginning with disclosures in 2022, to certain non-physician practitioners.

There is increased focus on interactions and financial relationships between healthcare companies and healthcare providers. Various transparency laws and regulations require disclosures of payments and other transfers of value made to physicians and teaching hospitals and, beginning with disclosures in 2022, to certain non-physician practitioners.

The amendment reduced the financial covenant trailing twelve-month revenue targets relating to its Advanced Energy segment (tested quarterly), with amended year-end targets of $34.4 million, $37.0 million, $52.4 million and $60.3 million for 2024, 2025, 2026 and 2027, respectively.

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 our 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.

Any of these actions could harm our business, results of operations, cash flows, and prospects. 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 U.S. workforce by nearly 25%.

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 U.S. workforce by nearly 25%. We estimated the annualized future cost savings from the reduction in force to be approximately $4.3 million.

We launched numerous new extensions to our Helium Plasma product lines in an effort to target new surgical procedures, users, and markets. Most notably, throughout 2021, we continued our launch of our Renuvion Apyx Plasma RF handpieces (“APR”) around the world. These handpieces were designed with improved ergonomics and usability for our Renuvion customers.

Most notably, throughout 2021, we continued our launch of our Renuvion Apyx Plasma RF handpieces (“APR”) around the world. These handpieces were designed with improved ergonomics and usability for our Renuvion customers.

Industry The cosmetic surgery market is a special segment of the medical field, which is involved in the restoration, reconstruction, or alteration of the human body to enhance the body’s appearance. The market for cosmetic surgery includes surgical, minimally invasive, and nonsurgical cosmetic procedures.

The joint venture commenced operations in the second quarter of 2025. Industry The cosmetic surgery market is a special segment of the medical field, which is involved in the restoration, reconstruction, or alteration of the human body to enhance the body’s appearance.

Today the regulatory authority members include the US, Australia, Brazil, Canada and Japan, official observers European Union and United Kingdom, and affiliates Argentina, Israel, South Korea, and Singapore. In February 2022, we underwent a successful annual MDSAP audit by our registrar GMED SAS. There were no observations related to safety or efficacy of our products noted during this MDSAP audit.

Today the regulatory authority members include the US, Australia, Brazil, Canada and Japan, official observers European Union and United Kingdom, and affiliates Argentina, Israel, South Korea, and Singapore. In January 2026, we underwent successful annual MDSAP audits of both our Clearwater and Bulgaria facilities by our registrar GMED SAS.

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, lower credit card fees and stock-based compensation.

The identified cost savings include reductions in professional fees, lower research and development costs, lower credit card fees and stock-based compensation.

Glucagon- like peptide -1 peptide receptor agonists (“GLP-1’s”), such as Mounjaro®, Wegovy® and Ozempic®, 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.

The market for cosmetic surgery includes surgical, minimally invasive, and nonsurgical cosmetic procedures. 2 Table of Contents APYX MEDICAL CORPORATION Glucagon- like peptide -1 peptide receptor agonists (“GLP-1’s”), such as Mounjaro ® , Wegovy ® and Ozempic ® , are prescribed for the treatment of diabetes and or weight loss in combination with exercise to improve glycemic control.

Recent Business Developments On January 6, 2025, we announced that we had submitted a 510(k) premarket notification to the FDA for the AYON Body Contouring System ("AYON"). AYON was developed with a focus on versatility and innovation. AYON has been designed to be the only device a surgeon needs for comprehensive body contouring solutions.

Additionally, we commenced the commercial launch of AYON in September 2025. AYON was developed with a focus on versatility and innovation. AYON has been designed to be the only device a surgeon needs for comprehensive body contouring solutions.

Backlog The value of unshipped factory orders is not material. 3 Table of Contents APYX MEDICAL CORPORATION Human Capital Management At December 31, 2024, we had 220 full-time employees world-wide, of whom 4 were executive officers, 44 were supervisory personnel, 21 were sales personnel and 151 were technical support, administrative and production employees.

Accordingly, the significance of the future impact to our business and financial statements remains subject to significant uncertainty. 3 Table of Contents APYX MEDICAL CORPORATION Human Capital Management At December 31, 2025, we had 205 full-time employees world-wide, of whom 4 were executive officers, 42 were supervisory personnel, 21 were sales personnel and 138 were technical support, administrative and production employees.

The new medical device regulatory framework and the new privacy regulations in Europe and in other countries are examples of such increased regulation.

The new medical device regulatory framework and the new privacy regulations in Europe and in other countries are examples of such increased regulation. For example, the European Union enacted the Medical Device Regulation (EU) 2017/745, or EU MDR, in May 2017, with full application beginning in May 2021.

Joint Venture In 2019, we executed a joint venture agreement with its Chinese supplier whereby we have a 51% ownership interest, to establish a presence in the Chinese market for the manufacturing and sale of our Advanced Energy products. As of the date of this report, the joint venture has not commenced its principal operations.

The facility also distributes products directly to customers in certain international markets and provides warranty and repair services. Joint Venture In 2019, we executed a joint venture agreement with its Chinese supplier whereby we have a 51% ownership interest, to establish a presence in the Chinese market for the manufacturing and sale of our Surgical Aesthetics products.

As of December 31, 2024, we had cash and cash equivalents of $31.7 million. 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.

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.

Revenue, costs and expenses resulting from this agreement are reported in our Consolidated Statements of Operations as a component of income or loss from operations of our OEM reporting segment. 8 Table of Contents APYX MEDICAL CORPORATION

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, we may be required to delay, limit, reduce, or terminate our sales, marketing and product development.

If we are unable to raise additional capital in sufficient amounts or on acceptable terms, we may be required to delay, limit, reduce, or terminate our sales, marketing and product development. Any of these actions could harm our business, results of operations, cash flows, and prospects.

For the year ended December 31, 2024, our Advanced Energy segment contributed 80.3% of our consolidated total revenue and our OEM segment contributed 19.7% of our consolidated total revenue.

For the year ended December 31, 2025, our Surgical Aesthetics segment contributed 85.8% of our consolidated total revenue and our OEM segment contributed 14.2% of our consolidated total revenue.

Liquidity We have incurred recurring net losses and cash outflows from operations and we anticipate that losses will continue in the near term. For the year ended December 31, 2024, we incurred a loss from operations of $18.8 million and used $18.0 million of cash in operations.

For the year ended December 31, 2025, we incurred a loss from operations of $6.4 million and used $8.0 million of cash in operations. As of December 31, 2025, we had cash and cash equivalents of $31.7 million.

We foresee, in totality, these cost savings will reduce our annual operating expenses below $40 million in 2025. 1 Table of Contents APYX MEDICAL CORPORATION 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.

On December 1, 2025, we filed a shelf registration statement providing us the ability to register and sell our securities in the aggregate amount up to $100 million. This shelf registration statement replaced our previous shelf registration statement that expired during December 2025.

This sales force is supported by a global team of clinical support specialists, which focuses on supporting our users to ensure optimal outcomes for their patients. In addition, we have invested in training programs and marketing-related activities to support accelerated adoption of our technology into surgeons' practices.

Our direct sales force, along with our international network of distributors, is focused on becoming the sole provider of surgical equipment in the cosmetic surgical markets. This sales force is supported by a global team of clinical support specialists, which focuses on supporting our users to ensure optimal outcomes for their patients.

The Renuvion Micro Handpiece is designed for use with the Apyx One Console. 5 Table of Contents APYX MEDICAL CORPORATION On January 6, 2025, we announced that we had submitted a 510(k) premarket notification to the FDA for AYON. AYON was developed with a focus on versatility and innovation.

The Renuvion Micro Handpiece is designed for use with the Apyx One Console. 5 Table of Contents APYX MEDICAL CORPORATION On May 13, 2025, we announced that we had received 510(k) clearance from the U.S. Food and Drug Administration (the “FDA”) for AYON. We completed the soft launch of AYON, leveraging our relationships with key surgeons in critical geographies.

During 2021, we began to launch these new handpieces in our international markets, designed specifically for minimally invasive use, with improved ergonomics and safety features. Competition Currently, we are the only company with helium-based plasma products and four specific indications from the FDA.

During 2021, we began to launch these new handpieces in our international markets, designed specifically for minimally invasive use, with improved ergonomics and safety features. AYON Body Contouring System AYON is an FDA-cleared device that provides the surgeon with an all-in-one system to perform any surgical procedure needed in their offices or surgical suite.

According to the recent International Society of Aesthetic Plastic Surgery (“ISAPS”) 2023 Global Survey report, while liposuction procedures contracted 2.9% year-over-year, it continues to be the number one aesthetic surgical procedure globally and all surgical procedures increased 5.5% year-over-year. Currently, the majority of procedures utilizing our Renuvion technology occur in conjunction with liposuction procedures.

According to the recent International Society of Aesthetic Plastic Surgery (“ISAPS”) 2024 Global Survey report, while liposuction procedures in the U.S. contracted approximately 10% year-over-year, it continues to be in the top two aesthetic surgical procedure globally and, as a result of the impact of the GLP-1’s on loose and lax skin, surgical lifts have increased greater than 20%.

We strongly encourage investors to visit our website: www.apyxmedical.com to view the most current news and to review our filings with the Securities and Exchange Commission. Significant Subsidiaries Apyx Bulgaria, EOOD is a wholly owned limited liability company incorporated under Bulgarian law, located in Sofia, Bulgaria.

In addition, we have invested in training programs and marketing-related activities to support accelerated adoption of our technology into surgeons' practices. We strongly encourage investors to visit our website: www.apyxmedical.com to view the most current news and to review our filings with the Securities and Exchange Commission.

For a more in-depth description of the terms of the registered direct offering, see Note 13 in Item 8 of this Annual Report on Form 10-K. Our direct sales force, along with our international network of distributors, is focused on becoming the sole provider of surgical equipment in the cosmetic surgical markets.

After deducting incremental direct costs of the Offering, the Company’s net proceeds were approximately $9.1 million. For a more in-depth description of the terms of the offering, see Note 12 in Item 8 of this Annual Report on Form 10-K.

Renuvion and J-Plasma offer surgeons a unique ability to provide controlled heat to tissue to achieve their desired results. We also leverage our deep expertise and decades of experience in unique waveforms through Original Equipment Manufacturer (“OEM”) agreements with other medical device manufacturers.

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.

It is engaged in the business of development and manufacturing of our advanced energy generators, as well as the manufacturing of our single-use handpieces and accessories, and development and manufacturing of OEM generators and related accessories. The facility also distributes products directly to customers in certain international markets and provides warranty and repair services.

Significant Subsidiaries Apyx Bulgaria, EOOD is a wholly owned limited liability company incorporated under Bulgarian law, located in Sofia, Bulgaria. It is engaged in the business of development and manufacturing of our surgical aesthetics generators, AYON equipment, as well as the manufacturing of our single-use handpieces and accessories, and development and manufacturing of OEM generators and related accessories.

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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.

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Renuvion and J-Plasma offer surgeons a unique ability to provide controlled heat to tissue to achieve their desired results. AYON is an FDA-cleared, surgeon-designed body contouring system that combines precision, versatility, and innovation in an all-in-one platform.

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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 losses and achieving cash-flow breakeven.

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Recent Business Developments On May 13, 2025, we announced that we had received 510(k) clearance from the U.S. Food and Drug Administration (the “FDA”) for AYON. We completed the soft launch of AYON, leveraging our relationships with key surgeons in critical geographies. Additionally, we commenced the commercial launch of AYON in September 2025.

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The shelf registration statement included an embedded ATM facility for up to $40 million. To date we have not utilized this facility. On November 7, 2024, we entered into an amendment to the Perceptive Credit Agreement.

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We anticipate receiving clearance in the second quarter 2026. On July 28, 2025, we announced the launch of Renuvion in China following receipt of initial market clearance from the National Medical Products Administration of China. Liquidity We have incurred recurring net losses and cash outflows from operations and we anticipate that losses will continue in the near term.

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To our knowledge, none of the products that we source are through entities manufacturing in the Xinjiang province.

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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.

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Accordingly, the significance of the future impact to our business and financial statements remains subject to significant uncertainty.

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These cost savings reduced our annual operating expenses below $40.0 million in 2025, as compared to $48.2 million and $53.7 million in 2024 and 2023, respectively. 1 Table of Contents APYX MEDICAL CORPORATION On November 8, 2023, we entered into a Credit and Guaranty Agreement (the “Perceptive Credit Agreement”), by and among Apyx Medical (as borrower), Apyx China Holding Corp. and Apyx Bulgaria EOOD, our wholly-owned subsidiaries (as subsidiary guarantors), and Perceptive Credit Holdings IV, LP (as initial lender and administrative agent) (“Perceptive”), and the lenders from time to time party thereto.

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While the FDA Safety Communication did impact our sales, and we face competition from RF-based, argon plasma, and CO2 laser products within our target market, we still believe our competitive position did not change in 2024.

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The Perceptive Credit Agreement provided for a facility of up to $45 million, consisting of senior secured term loans. The Perceptive Credit Agreement provided for (i) an initial loan of $37.5 million and (ii) a delayed draw loan of $7.5 million. Our ability to borrow the delayed draw loan of $7.5 million lapsed on December 31, 2024.

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For example, the European Union enacted the European Union Medical Device Regulation in May 2017 with an effective date of May 2021, which imposes stricter requirements for the marketing and sale of medical devices, including in the areas of clinical evaluation requirements, quality systems, labeling and post-market surveillance.

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For a more in-depth description of the terms of the registered direct offering, see Note 12 in Item 8 of this Annual Report on Form 10-K. On November 18, 2025, we entered into an underwriting agreement where we sold 2,762,431 shares of common stock at an offering price of $3.62.

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Additionally, as a result of the exit of the United Kingdom from the European Union (Brexit), new medical device regulations were released by the United Kingdom, which became effective January 1, 2021.

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On July 28, 2025, we announced the launch of Renuvion in China following receipt of initial market clearance from the National Medical Products Administration of China. We launched numerous new extensions to our Helium Plasma product lines in an effort to target new surgical procedures, users, and markets.

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On March 14, 2022, the FDA posted a Safety Communication that warns consumers and health care providers against the use of our Advanced Energy products outside of their FDA-cleared indications for general use in cutting, coagulation, and ablation of soft tissue during open and laparoscopic surgical procedures.

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The core of the system is our Apyx One Console for the treatment of loose and lax skin and integrates infiltration, aspiration, suction assisted liposuction, ultrasound assisted liposuction, a closed loop for at transfer and electrosurgical capabilities. In addition, it streamlines surgical procedures, reducing procedure time and improving overall workflow and efficiency.

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Following the Safety Communication, we experienced slowed demand for the adoption of our Helium Plasma Technology.

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To replicate the functionality of AYON, the surgeon would need to purchase five separate systems and we can deliver AYON at a competitive cost to the physician. On May 13, 2025, we announced we had received 510(k) clearance from the FDA for AYON. We completed our soft launch of AYON, leveraging its relationships with key surgeons in critical geographies.

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Throughout 2022, and continuing into 2023, we worked closely with the FDA to gain clearances for the use of our products in various surgical applications, demonstrating our commitment to both safety and efficacy, supported by both clinical study and real-world data. 7 Table of Contents APYX MEDICAL CORPORATION On May 10, 2023, the FDA updated the Safety Communication to inform consumers and healthcare providers about the clearance for the Renuvion APR handpiece for the coagulation of subcutaneous soft tissues following liposuction.

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Additionally, we commenced the commercial launch of AYON in September 2025. On 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. We anticipate receiving clearance in the second quarter 2026.

Removed

On June 14, 2023, we announced that we received 510(k) clearance from the FDA for the Renuvion Micro handpiece, a new addition to the Renuvion production family. The Renuvion Micro handpiece was cleared with an indication for the delivery of radiofrequency energy and/or helium plasma where coagulation/contraction of soft tissue is needed. Soft tissue includes subcutaneous tissue.

Added

Competition Currently, we are the only company with helium-based plasma products and four specific indications from the FDA. With the launch of AYON, we now compete directly with companies that have devices that perform liposuction procedures. The major liposuction manufacturers are Solta Medical (owned by Bausch Health Companies, Inc.) and MicroAire Surgical Instruments.

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Laws and regulations have been enacted to require adherence to strict compliance standards and prevent fraud and abuse in the healthcare industry. There is increased focus on interactions and financial relationships between healthcare companies and healthcare providers.

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The EU MDR imposes more stringent requirements for the design, manufacture, clinical evaluation, certification, labeling and post-market surveillance of medical devices marketed in the European Union. Compliance with these requirements has increased, and may continue to increase, the time and cost required to obtain regulatory approvals and maintain compliance for our products.

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In addition, following the United Kingdom’s withdrawal from the European Union, the United Kingdom implemented changes to its medical device regulatory framework effective January 1, 2021. These changes include the introduction of the UK Conformity Assessed (UKCA) marking and additional device registration requirements with the United Kingdom Medicines and Healthcare products Regulatory Agency (MHRA) for devices marketed in Great Britain.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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2024 filing

2025 filing

Biggest changeThe decision to utilize our products may therefore be influenced by a number of factors, including: • consumer disposable income and access to consumer credit, which as a result of an unstable economy, may be significantly impacted; • the cost, safety and effectiveness of alternative treatments; • the success of our direct to consumer sales and marketing efforts; • the impact of GLP-1 drugs on the consumer demand as a result of a reallocation of discretionary spend to the drugs, the delay in aesthetic procedures as a result of patients waiting to hit their ideal weight, or the redistribution of aesthetic procedures away from traditional liposuction; and • the education of our customers and their patients on the benefits and uses of our products, compared to competitors’ products and technologies.

However, in the event that damages exceed the aggregate coverage limits of our policy, or if our insurance carriers disclaim coverage, or if we are unable to continue to obtain coverage on commercially reasonable terms, we believe it is possible that costs associated with these claims could have a material adverse impact on our consolidated financial position, results of operations and cash flows (see below ITEM 3: Legal Proceedings).

Changes in U.S. trade policy could trigger retaliatory actions by affected countries, resulting in "trade wars," in increased costs for goods imported into the United States, which may reduce customer demand for these products if the parties having to pay those tariffs increase their prices, or in trading partners limiting their trade with the United States.

Changes in U.S. or foreign trade policy could trigger retaliatory actions by affected countries, resulting in "trade wars," in increased costs for goods imported into the United States, which may reduce customer demand for these products if the parties having to pay those tariffs increase their prices, or in trading partners limiting their trade with the United States.

The health of the economy may affect consumer purchases of discretionary services, such as cosmetic services, which could have a material adverse effect on our business, financial condition, results of operations and cash flows. Our results of operations may be materially affected by conditions in the capital and credit markets and the economy generally.

The health of the economy may affect consumer purchases of discretionary services, such as cosmetic and aesthetic services, which could have a material adverse effect on our business, financial condition, results of operations and cash flows. Our results of operations may be materially affected by conditions in the capital and credit markets and the economy generally.

Our ability to successfully commercialize our products, including AYON, which we expect to launch during 2025, will depend on a number of factors, any of which could delay or prevent commercialization, including: • our inability to obtain the necessary regulatory clearances or approvals for expanded indications, new products, or product modifications; • our inability to demonstrate, if required, the safety and efficacy of new products with data from preclinical studies and clinical trials; • if our product is determined to be ineffective or unsafe following approval, and is removed from the market or we are required to perform additional research and development to further prove the safety and effectiveness of the product before re-entry into the market; • if the regulatory approvals/clearances of our new products are delayed or denied, or we are required to conduct further research and development of our products prior to receiving regulatory approval; 10 Table of Contents APYX MEDICAL CORPORATION • our inability to build and maintain a sales and marketing group to successfully launch and sell our new products; • if we experience sudden or extreme volatility in commodity prices and availability, including supply chain disruptions; • if we are required to allocate available funds to litigation matters; • if the needs of our physicians or their patients are not sufficiently met; • if we are unable to manufacture the quantity of products needed, in accordance with quality manufacturing standards, to meet market demand; • competition from other products or technologies prevents or reduces market acceptance of our products; • if we do not have, and cannot obtain, the intellectual property rights needed to manufacture or market our products without infringing on another company’s patents; or • if we are unsuccessful in defending against patent infringement, or other intellectual property rights claims, that could be brought against us, our products or technologies.

Our ability to successfully commercialize our products, including AYON, which launched in September 2025, will depend on a number of factors, any of which could delay or prevent commercialization, including: • our inability to obtain the necessary regulatory clearances or approvals for expanded indications, new products, or product modifications; • our inability to demonstrate, if required, the safety and efficacy of new products with data from preclinical studies and clinical trials; • if our product is determined to be ineffective or unsafe following approval, and is removed from the market or we are required to perform additional research and development to further prove the safety and effectiveness of the product before re-entry into the market; • if the regulatory approvals/clearances of our new products are delayed or denied, or we are required to conduct further research and development of our products prior to receiving regulatory approval; 10 Table of Contents APYX MEDICAL CORPORATION • our inability to build and maintain a sales and marketing group to successfully launch and sell our new products; • if we experience sudden or extreme volatility in commodity prices and availability, including supply chain disruptions; • if we are required to allocate available funds to litigation matters; • if the needs of our physicians or their patients are not sufficiently met; • if we are unable to manufacture the quantity of products needed, in accordance with quality manufacturing standards, to meet market demand; • competition from other products or technologies prevents or reduces market acceptance of our products; • if we do not have, and cannot obtain, the intellectual property rights needed to manufacture or market our products without infringing on another company’s patents; or • if we are unsuccessful in defending against patent infringement, or other intellectual property rights claims, that could be brought against us, our products or technologies.

Changes in U.S. trade policies could significantly increase the cost of imported goods into the United States, which may materially reduce our sales or profitability.

Changes in U.S. or foreign trade policies could significantly increase the cost of imported goods into the United States, which may materially reduce our sales or profitability.

We also have collaborative arrangements with three key foreign suppliers under which we request the development of certain items and components, which we purchase pursuant to purchase orders. Our purchase order commitments are never more than one year in duration and are supported by our sales forecasts. The majority of our raw materials are purchased from sole-source suppliers.

The failure to successfully commercialize our products will have a material and adverse effect on the future growth of our business, financial condition, results of operations and cash flows. The energy-based medical device industry in the aesthetics market is highly competitive and we may be unable to compete effectively.

The failure to successfully commercialize our products will have a material and adverse effect on the future growth of our business, financial condition, results of operations and cash flows. The energy-based medical device industry for the aesthetics market is highly competitive and we may be unable to compete effectively.

While we have concluded that, as of December 31, 2024, our disclosure and reporting controls were effective as included in Part II, Item 9A of this Form 10-K, there can be no assurance that future control deficiencies or material weaknesses will not be identified.

While we have concluded that, as of December 31, 2025, our disclosure and reporting controls were effective as included in Part II, Item 9A of this Form 10-K, there can be no assurance that future control deficiencies or material weaknesses will not be identified.

If we are unable to obtain the requisite amount of financing needed to fund our planned operations, it would have a material adverse effect on our business and ability to continue as a going concern. Our indebtedness levels could impact our business.

The energy-based medical device industry for the aesthetics market is highly competitive. Many competitors in this industry are well-established, do a substantially greater amount of business, and have greater financial resources and facilities than we do. We have invested and continue to invest, substantial resources to develop and monetize our Renuvion technology into the cosmetic surgery market.

We are subject to governmental export controls and economic sanctions that could impair our ability to compete in international markets due to licensing requirements and subject us to potential liability if we are not in compliance with applicable laws. Any non-compliance could have a material adverse effect on our business, financial condition, results of operations and cash flows.

We are subject to governmental export controls and regulations that could impair our ability to compete in international markets due to licensing requirements and subject us to potential liability if we are not in compliance with applicable laws. Any non-compliance could have a material adverse effect on our business, financial condition, results of operations and cash flows.

These announcements may include: • our listing status on the Nasdaq Global Select Market; • our operating results falling below the expectations of public market analysts and investors; • developments in our relationships with or developments affecting our major customers; • negative regulatory action or regulatory non-approval with respect to our new products; • government regulation, governmental investigations, or audits related to us or to our products; • developments related to our patents or other proprietary rights or those of our competitors and • changes in the position of securities analysts with respect to our stock.

These announcements may include: • our listing status on the Nasdaq Global Select Market; • our operating results falling below the expectations of public market analysts and investors; • developments in our relationships with or developments affecting our major customers; • negative regulatory action or regulatory non-approval with respect to our new products; • government regulation, governmental investigations, or audits related to us or to our products; • developments related to our patents or other proprietary rights or those of our competitors; • results of product liability claims or future claims; and • changes in the position of securities analysts with respect to our stock.

Further, reductions in consumer lending and the availability of consumer credit could limit the number of patients with the financial means to afford the procedures where our products are used. Higher interest rates could increase our costs or the monthly payments for consumer products financed through other sources of consumer financing.

Further, reductions in consumer lending and the availability of consumer credit could limit the number of patients with the financial means to afford the procedures where our products are used. Higher interest rates could increase our costs, decrease our selling price, or increase the monthly payments for consumer products financed through other sources of consumer financing.

If we are unable to protect our patents or other proprietary rights, or if we infringe on the patents or other proprietary rights of others, our competitiveness and business prospects may be materially damaged. We have been issued 38 patents in the United States and 57 foreign patents.

If we are unable to protect our patents or other proprietary rights, or if we infringe on the patents or other proprietary rights of others, our competitiveness and business prospects may be materially damaged. We have been issued 41 patents in the United States and 61 foreign patents.

We have 14 pending patent applications in the United States and 19 pending foreign applications. Our intellectual property portfolio for our Renuvion and J-Plasma products continues to grow on an annual basis. We intend to continue to seek legal protection, primarily through patents, for our proprietary technology.

We have 11 pending patent applications in the United States and 21 pending foreign applications. Our intellectual property portfolio for our Renuvion, AYON and J-Plasma products continues to grow on an annual basis. We intend to continue to seek legal protection, primarily through patents, for our proprietary technology.

Uncertainty in the economy could adversely impact customer purchases of discretionary services, including cosmetic services.

Uncertainty in the economy could adversely impact customer purchases of discretionary services, including cosmetic and aesthetic services.

These potential consequences, as well as any adverse outcome from government investigations, could have a material adverse effect on our business, results of operations, financial condition, and cash flows. In addition, the FDA has taken the position that device manufacturers are prohibited from promoting their products other than for the uses and indications set forth in the cleared product labeling.

These potential consequences, as well as any adverse outcome from government investigations, could have a material adverse effect on our business, results of operations, financial condition, and cash flows. In addition, the FDA prohibits device manufacturers from promoting their products other than for the uses and indications set forth in the cleared product labeling.

Our cash needs will depend on numerous factors, including our revenues, successful completion of our FDA product clearance activities, our continued ability to commercialize our advanced energy products, and our ability to reduce and control costs.

Our cash needs will depend on numerous factors, including our revenues, successful completion of our FDA product clearance activities, our continued ability to commercialize our surgical aesthetics products, and our ability to reduce and control costs.

Historically, some doctors have financed their purchase of generators through third-party credit providers some of whom with which we have existing relationships.

Historically, some doctors have financed their purchase of capital equipment through third-party credit providers some of whom with which we have existing relationships.

Additionally, in the registered direct offering that we completed in November 2024, we issued 2,934,690 pre-funded warrants which will have a dilutive effect on our common stock outstanding when exercised. As of the date of this annual report on Form 10-K, the dilution is 7.8%.

Additionally, in the registered direct offering that we completed in November 2024, we issued 2,934,690 pre-funded warrants, of which 1,923,623 remain outstanding and unexercised, which will have a dilutive effect on our common stock outstanding when exercised. As of the date of this annual report on Form 10-K, the dilution is 4.6%.

Higher interest rates can also impact our customers’ ability to purchase capital. We cannot assure you that our access to capital and other sources of funding will not become constrained, which could adversely affect the availability and terms of future borrowings.

We cannot assure you that our access to capital and other sources of funding will not become constrained, which could adversely affect the availability and terms of future borrowings.

Macroeconomic trends including inflation and higher interest rates may adversely affect our financial condition, results of operations and cash flows. We are in an inflationary period in the United States and is expected to continue at an elevated level in the near-term. Higher inflation and interest rates could have an adverse impact on our operating expenses and our credit facilities.

Macroeconomic trends including inflation and higher interest rates may adversely affect our financial condition, results of operations and cash flows. Higher inflation and interest rates could have an adverse impact on our operating expenses and our credit facilities. There is no guarantee we will be able to mitigate the impact of inflation.

In connection with the execution of the MidCap Credit Agreement and the Perceptive Credit Agreement, we issued warrants to purchase 1,500,000 shares of our commons stock, representing approximately 4.0% of our outstanding common stock.

As of December 31, 2025, our outstanding stock options to our employees, officers, directors and consultants amounted to 7,579,377 shares of our common stock, representing approximately 18.1% of our outstanding common stock. In connection with the execution of certain credit agreements, we issued warrants to purchase 1,500,000 shares of our commons stock, representing approximately 3.6% of our outstanding common stock.

There is no guarantee we will be able to mitigate the impact of inflation. The Federal Reserve has raised interest rates to combat inflation and restore price stability. Increases in interest rates on any of our debt will result in higher debt service costs, which will adversely affect our cash flows.

Increases in interest rates on any of our debt will result in higher debt service costs, which will adversely affect our cash flows. Higher interest rates can also impact our customers’ ability to purchase capital.

Removed

As of December 31, 2024, our outstanding stock options to our employees, officers, directors and consultants amounted to 7,638,458 shares of our common stock, representing approximately 20.2% of our outstanding common stock.

Added

In recent years, the Federal Reserve (the “Fed”) executed an aggressive tightening cycle increasing rates above 5% in 2023. For most of 2024, the Fed paused rated increases and at the end of 2024 and throughout 2025 implemented several rate cuts.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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2025 filing

Biggest changeITEM 5. Market for Registrant ’ s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock currently is traded on the Nasdaq Global Select Market. As of March 11, 2025, we had approximately 600 stockholders of record.

Biggest changeITEM 5. Market for Registrant ’ s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock currently is traded on the Nasdaq Global Select Market. As of March 9, 2026, we had approximately 600 stockholders of record.

The line graph assumes, in each case, an initial investment of $100 on December 31, 2020, based on the market prices at the end of each fiscal year through and including December 31, 2024, and reinvestment of dividends.

The line graph assumes, in each case, an initial investment of $100 on December 31, 2021, based on the market prices at the end of each fiscal year through and including December 31, 2025, and reinvestment of dividends.

Removed

December 31, 2020 2021 2022 2023 2024 Apyx Medical Corporation 100 178.06 19.58 36.38 21.94 Russell 2000 Index 100 113.69 89.18 102.64 112.92 Russell 3000 Index 100 124.60 99.08 122.81 150.01 22 Table of Contents APYX MEDICAL CORPORATION

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December 31, 2021 2022 2023 2024 2025 Apyx Medical Corporation 100 11.00 20.44 12.33 27.31 Russell 2000 Index 100 78.44 90.28 99.33 110.54 Russell 3000 Index 100 79.52 98.57 120.40 139.26 22 Table of Contents APYX MEDICAL CORPORATION

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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2025 filing

Biggest changeThe decrease in gross profit margins for the year ended December 31, 2024 from the prior year is primarily due to a decrease in the average selling price of generators to domestic customers, changes in the sales mix between our two segments, with our OEM segment comprising a higher percentage of total sales and geographic mix within our Advanced Energy segment, with international sales comprising a higher percentage of total sales. 26 Table of Contents APYX MEDICAL CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued Other Costs and Expenses Research and development Year Ended December 31, (In thousands) 2024 2023 Change Research and development expense $ 5,080 $ 5,440 (6.6 )% Percentage of sales 10.6 % 10.4 % Our expenses for research and development related activities decreased by 6.6% or approximately $0.4 million for the year ended December 31, 2024, compared with 2023.

Biggest changeOther Costs and Expenses Research and development Year Ended December 31, (In thousands) 2025 2024 Change Research and development expense $ 3,373 $ 5,080 (33.6 )% Percentage of sales 6.4 % 10.6 % Our expenses for research and development related activities decreased by 33.6%, or approximately $1.7 million for the year ended December 31, 2025, compared with 2024.

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.

On November 7, 2024, we closed a $7.0 million registered direct offering with a healthcare-focused fund and issued 3,000,000 shares of common stock and 2,934,690 of pre-funded warrants to purchase common stock with an exercise price of $.001 per share.

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.

The Perceptive Credit Agreement, as amended, continues to contain customary affirmative and negative covenants, including covenants limiting our ability, and our subsidiaries to, 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 provided for a facility of up to $45 million, consisting of senior secured term loans. The Perceptive Credit Agreement provided for (i) an initial loan of $37.5 million and (ii) a delayed draw loan of $7.5 million. The Company's ability to borrow the delayed draw loan of $7.5 million lapsed on December 31, 2024.

The MidCap Credit Agreement was extinguished when, on November 8, 2023, we entered into a Credit and Guaranty Agreement (the “Perceptive Credit Agreement”), by and among Apyx Medical (as borrower), Apyx China Holding Corp. and Apyx Bulgaria EOOD, our wholly-owned subsidiaries (as subsidiary guarantors), and Perceptive Credit Holdings IV, LP (as initial lender and administrative agent) (“Perceptive”), and the lenders from time to time party thereto.

On November 8, 2023, we entered into a Credit and Guaranty Agreement (the “Perceptive Credit Agreement”), by and among Apyx Medical (as borrower), Apyx China Holding Corp. and Apyx Bulgaria EOOD, our wholly-owned subsidiaries (as subsidiary guarantors), and Perceptive Credit Holdings IV, LP (as initial lender and administrative agent) (“Perceptive”), and the lenders from time to time party thereto.

We believe that our continued investment and focus on the following strategic initiatives in 2025 and beyond will position the Company for long-term growth in the cosmetic surgery market: • To provide enhanced physician and practice support for our cosmetic surgery customers • To expand our regulatory approvals to expand product availability in new markets worldwide • To execute our regulatory pathway for our AYON in the United States • To successfully launch AYON in the United States and eventually worldwide • To generate consumer interest in the treatment of loose and lax skin through a focused direct-to-consumer advertising strategy, including as a result of the side effects of GLP-1's In regards to our operating segments, our results are aggregated into reportable segments only if they exhibit similar economic characteristics.

We believe that our continued investment and focus on the following strategic initiatives in 2026 and beyond will position us for long-term growth in the cosmetic surgery market: • To provide enhanced physician and practice support for our cosmetic surgery customers • To expand our regulatory approvals to expand product availability in new markets worldwide • To continue to execute our regulatory pathway for AYON in the United States • To continue the successful launch AYON in the United States and eventually worldwide • To generate consumer interest in the treatment of loose and lax skin through a focused direct-to-consumer advertising strategy, including as a result of the side effects of GLP-1's In regards to our operating segments, our results are aggregated into reportable segments only if they exhibit similar economic characteristics.

Our continued compliance with covenants is subject to meeting or exceeding forecasted Surgical Aesthetics revenues, as amended, and reducing operating expenses. For a more in-depth description of the terms of the Perceptive Credit Agreement, as amended, see Note 10 in Item 8 of this Annual Report on Form 10-K.

Our continued compliance with covenants is subject to meeting or exceeding forecasted Advanced Energy revenues, as amended and reducing operating expenses. For a more in-depth description of the terms of the Midcap Credit Agreement and the Perceptive Credit Agreement, as amended, see Note 11 in Item 8 of this Annual Report on Form 10-K.

For the year ended December 31, 2024, we incurred a loss from operations of $18.8 million and used $18.0 million of cash in operations. As of December 31, 2024, we had cash and cash equivalents of $31.7 million.

Currently, two 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 injectable medications. We believe the increased use of GLP-1’s has had an initial negative impact on the revenue for plastic and cosmetic surgeons and created uncertainty in the aesthetic space.

Currently, two GLP-1’s are cleared by the FDA for weight loss and now oral versions have been approved and, we anticipate a number of additional drug candidates will be approved. We believe the increased use of GLP-1’s has had an initial negative impact on the revenue for plastic and cosmetic surgeons and created uncertainty in the aesthetic space.

Income Taxes Year Ended December 31, (In thousands) 2024 2023 Income tax expense (benefit) $ 252 $ (2,432 ) Effective tax rate (1.1 )% 11.4 % Income tax expense (benefit) was approximately $0.3 million and $(2.4 million), with effective tax rates of (1.1)% and 11.4%, respectively, for the years ended December 31, 2024 and 2023, respectively.

Income Taxes Year Ended December 31, (In thousands) 2025 2024 Income tax expense $ 270 $ 252 Effective tax rate (2.5 )% (1.1 )% Income tax expense was approximately $0.3 million, with effective tax rates of (2.5)% and (1.1)%, respectively, for the years ended December 31, 2025 and 2024, respectively.

Executive Level Overview We are a surgical aesthetic company with a passion for elevating people’s lives through innovative products, including our Helium Plasma Platform Technology products marketed and sold as Renuvion in the cosmetic surgery market and J-Plasma in the hospital surgical market.

Executive Level Overview We are 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 ® and the AYON Body Contouring System TM (“AYON”) in the cosmetic surgery market and J-Plasma® in the hospital surgical market.

Professional services Year Ended December 31, (In thousands) 2024 2023 Change Professional services expense $ 6,914 $ 7,031 (1.7 )% Percentage of sales 14.4 % 13.4 % Professional services expenses decreased 1.7%, or approximately $0.1 million for the year ended December 31, 2024, compared with 2023.

Professional services Year Ended December 31, (In thousands) 2025 2024 Change Professional services expense $ 6,303 $ 6,914 (8.8 )% Percentage of sales 11.9 % 14.4 % Professional services expenses decreased 8.8%, or approximately $0.6 million for the year ended December 31, 2025, compared with 2024.

This increase was primarily due to lower compensation and benefits costs from the prior year ($0.3 million) and lower spending on our product development initiatives and clinical studies ($0.1 million).

This decrease was primarily due to lower compensation and benefits costs from the prior year ($1.1 million) and lower spending on our product development initiatives and clinical studies ($0.6 million), as we complete the development of AYON.

This increase is due to a higher average balance in on our investments in money market funds and U.S. Treasury securities included in cash and cash equivalents. Interest expense increased approximately $3.4 million for the year ended December 31, 2024, when compared with the prior year.

This decrease is due to a lower average balance and lower average yield in on our cash equivalents in money market funds and U.S. Treasury securities. Interest expense decreased approximately $0.3 million for the year ended December 31, 2025, when compared with the prior year.

Salaries and related costs Year Ended December 31, (In thousands) 2024 2023 Change Salaries and related expenses $ 17,353 $ 19,041 (8.9 )% Percentage of sales 36.1 % 36.4 % Salaries and related expenses decreased 8.9% or approximately $1.7 million for the year ended December 31, 2024, compared to 2023.

Salaries and related costs Year Ended December 31, (In thousands) 2025 2024 Change Salaries and related expenses $ 14,011 $ 17,353 (19.3 )% Percentage of sales 26.5 % 36.1 % Salaries and related expenses decreased 19.3%, or approximately $3.3 million for the year ended December 31, 2025, compared to 2024.

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.

For the year ended December 31, 2023, the effective tax rate differs from the statutory rate primarily due to the valuation allowance on our Federal and state net operating losses (NOLs) combined with the reversal of our uncertain tax positions upon completion of the IRS audit of our tax return for the 2018, 2019 and 2020 years in January 2023. 28 Table of Contents APYX MEDICAL CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued Liquidity and Capital Resources At December 31, 2024, we had approximately $31.7 million in cash and cash equivalents as compared to approximately $43.7 million in cash and cash equivalents at December 31, 2023.

For each of the years ended December 31, 2025 and 2024, the effective tax rate differs from the statutory rate primarily due to the valuation allowance on our Federal and state net operating losses (NOLs) and net deferred tax assets generated during the year. 28 Table of Contents APYX MEDICAL CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued Liquidity and Capital Resources At December 31, 2025 and 2024, we had approximately $31.7 million in cash and cash equivalents.

The initial submission for AYON includes the following: • Infiltration • Dual aspiration to facilitate simultaneous users • Ultrasound-assisted liposuction • Electrocoagulation to support procedures requiring removal of excess tissue • Volume enhancement capabilities • Renuvion treatment to address loose and lax skin On 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.

Interest Income (Expense) Year Ended December 31, (In thousands) 2024 2023 Interest income $ 1,606 $ 921 Percentage of sales 3.3 % 1.8 % Interest expense $ (5,907 ) $ (2,478 ) Percentage of sales (12.3 )% (4.7 )% Interest income increased approximately $0.7 million for the year ended December 31, 2024, compared with 2023.

Interest Income (Expense) Year Ended December 31, (In thousands) 2025 2024 Interest income $ 1,108 $ 1,606 Percentage of sales 2.1 % 3.3 % Interest expense $ (5,589 ) $ (5,907 ) Percentage of sales (10.6 )% (12.3 )% Interest income decreased approximately $0.5 million for the year ended December 31, 2025, compared with 2024.

We continue to work on initiatives to combat inflation, 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.

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 combat inflation, 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.

Other Income (Loss), net Year Ended December 31, (In thousands) 2024 2023 Other (expense) income, net $ (161 ) $ 622 Percentage of sales (0.3 )% 1.2 % Loss on extinguishment of debt $ — $ (3,088 ) Percentage of sales — % (5.9 )% Other (expense) income, net decreased approximately $0.8 million for the year ended December 31, 2024, compared with 2023.

Other Income (Loss), net Year Ended December 31, (In thousands) 2025 2024 Other income (expense), net $ 92 $ (161 ) Percentage of sales 0.2 % (0.3 )% Other income (expense), net increased approximately $0.3 million for the year ended December 31, 2025, compared with 2024.

These decreases were partially offset by improvements in our prepaid expenses and inventory positions. Net cash used in investing activities for the year ended December 31, 2024, was $0.7 million related to investments in property and equipment.

Net cash provided by investing activities for the year ended December 31, 2024, was $0.7 million related to investments in property and equipment.

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.

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.

This decrease was primarily due to the current year recording of a joint and several liability for sales taxes related to one customer ($0.2 million), a small insurance recovery in 2023 ($0.2 million) and the release of our joint and several payroll liability due to the lapse of the statute of limitations on a portion of the liability ($0.4 million) in 2023.

This increase was primarily due to the prior year recording of a joint and several liability for sales taxes related to one customer ($0.2 million) and the current year reversal of a portion of this liability due to the statute of limitations lapsing ($0.1 million).

For the year ended December 31, 2024, net cash used in operating activities was $18.0 million, which principally funded our loss from operations of $18.8 million, compared with net cash used in operating activities, exclusive of the receipt of our $8.1 million final income tax refund, of approximately $13.3 million for 2023.

Our working capital at December 31, 2025 was approximately $46.8 million compared with $45.7 million at December 31, 2024. For the year ended December 31, 2025, net cash used in operating activities was $8.0 million, which principally funded our loss from operations of $6.4 million, compared with net cash used in operating activities of approximately $18.0 million for 2024.

Results of Operations Sales Year Ended December 31, (In thousands) 2024 2023 Change Sales by Reportable Segment Advanced Energy $ 38,606 $ 43,382 (11.0 )% OEM 9,496 8,967 5.9 % Total $ 48,102 $ 52,349 (8.1 )% Sales by Domestic and International Domestic $ 34,022 $ 38,345 (11.3 )% International 14,080 14,004 0.5 % Total $ 48,102 $ 52,349 (8.1 )% Total revenue decreased by 8.1% or approximately $4.2 million for the year ended December 31, 2024 when compared with 2023.

Results of Operations Sales, net Year Ended December 31, (In thousands) 2025 2024 Change Sales by Reportable Segment Surgical Aesthetics $ 45,332 $ 38,606 17.4 % OEM 7,512 9,496 (20.9 )% Total $ 52,844 $ 48,102 9.9 % Sales by Domestic and International Domestic $ 38,801 $ 34,022 14.0 % International 14,043 14,080 (0.3 )% Total $ 52,844 $ 48,102 9.9 % Total revenue increased by 9.9% or approximately $4.7 million for the year ended December 31, 2025 when compared with 2024.

The identified cost savings include reductions in professional fees, lower research and development costs, lower credit card fees and stock-based compensation.

If the financial condition of our customers deteriorates, resulting in an inability to make payments, additional allowances may be required. 30 Table of Contents APYX MEDICAL CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued 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.

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.

These decreases were partially offset by increased volume of single-use handpieces globally and sales of Apyx One Console upgrades internationally. The OEM product line consists of proprietary products designed specifically for third party equipment manufacturers. Revenue for this product line increased 5.9%, or approximately $0.5 million, when compared to 2023.

This increase was 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 decreased volume of single-use handpieces. The OEM product line consists of proprietary products designed specifically for third party equipment manufacturers.

Asset information is not reviewed by the chief operating decision maker by segment and is not available by segment and, accordingly, we have not presented a measure of assets by reportable segment. 25 Table of Contents APYX MEDICAL CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued e operate in two business segments: OEM and Advanced Energy.

Asset information is not reviewed by the chief operating decision maker by segment and is not available by segment and, accordingly, we have not presented a measure of assets by reportable segment. We operate in two business segments: Surgical Aesthetics and OEM. The Surgical Aesthetics segment sells both capital equipment and consumables in the form of a single use handpiece.

However, as these trends continue for raw materials, freight, and labor costs, our future financial performance could be adversely impacted. Off-Balance Sheet Arrangements We have no off-balance sheet arrangements at this time. Recent Accounting Pronouncements See Note 3 of the Notes to Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K. ITEM 7A .

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. Off-Balance Sheet Arrangements We have no off-balance sheet arrangements at this time.

The OEM segment is primarily development and manufacturing contract and product driven, and all related expenses are recorded as cost of sales, therefore no segment specific operating expenses are incurred. We strongly encourage investors to visit our website: www.apyxmedical.com to view the most current news and to review our filings with the Securities and Exchange Commission.

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

This decrease was primarily due to decreases in board of director’s stock-based compensation expense ($0.5 million), recruiting expenses ($0.4 million) and accounting and audit fees ($0.2 million).

This decrease was primarily due to decreases in physician and marketing consulting ($0.3 million), legal expenses ($0.3 million), accounting and audit fees ($0.1 million) and recruiting expenses ($0.1 million).

Selling, general and administrative expenses Year Ended December 31, (In thousands) 2024 2023 Change SG&A expense $ 18,858 $ 22,198 (15.0 )% Percentage of sales 39.2 % 42.4 % Selling, general and administrative expense decreased by 15.0% or approximately $3.3 million for the year ended December 31, 2024, compared with 2023.

These decreases were partially offset by increases in bonus expense ($1.3 million) as the compensation committee declared a discretionary bonus in 2025 based on our financial and operational results and temporary labor costs ($0.1 million). 27 Table of Contents Selling, general and administrative expenses Year Ended December 31, (In thousands) 2025 2024 Change SG&A expense $ 15,803 $ 18,858 (16.2 )% Percentage of sales 29.9 % 39.2 % Selling, general and administrative expense decreased by 16.2%, or approximately $3.1 million for the year ended December 31, 2025, compared with 2024.

In addition, we have invested in training programs and marketing-related activities to support accelerated adoption of our technology into surgeons' practices.

Net cash provided by financing activities for the year ended December 31, 2023, was $32.2 million, which primarily related to proceeds received upon the execution of the Perceptive Credit Agreement ($36.4 million) less debt issuance costs incurred in the transactions with both the Perceptive Credit Agreement and MidCap Credit Agreement ($3.1 million) and fees, premiums and costs to extinguish the MidCap Credit Agreement ($1.3 million).

Net cash provided by financing activities for the year ended December 31, 2025, was $9.6 million, which primarily related to proceeds received upon the closing of an underwriting agreement ($9.3 million) less costs incurred in the transaction ($0.2 million) as well as cash received upon stock option exercises ($0.5 million).

The OEM segment is primarily development and manufacturing contract and product driven. The Advanced Energy segment sells both capital equipment and consumables in the form of a single use handpiece. Sales of handpiece units are a substantial portion of our business and for the years ended December 31, 2024 and 2023, we sold approximately 94,000 and 87,000 units, respectively.

Sales of handpiece units are a substantial portion of our business and for the years ended December 31, 2025 and 2024, we sold approximately 84,000 and 94,000 units, respectively. Our single-use handpiece revenue accounts for approximately 50% and 63% of our total Surgical Aesthetics revenue for the years ended December 31, 2025 and 2024, respectively.

Net cash provided by investing activities for the year ended December 31, 2023, was $6.7 million related to the sale of our Clearwater, FL facility ($7.3 million), partially offset by investments in property and equipment ($0.5 million).

This reduction was partially offset by higher trade accounts receivable on our higher sales and cash used to procure inventory for our expanded product portfolio. Net cash used in investing activities for the year ended December 31, 2025, was $1.1 million related to investments in property and equipment.

The MidCap Credit Agreement provided for an up to $35 million facility, consisting of senior secured term loans and a secured revolving facility.

The increase in OEM sales was due to increases in sales volume to existing customers, including Symmetry Surgical under our 10-year generator manufacturing and supply agreement. International sales represented approximately 29.3% and 26.8% of total revenues for the years ended December 31, 2024 and 2023, respectively.

International sales represented approximately 26.6% and 29.3% of total revenues for the years ended December 31, 2025 and 2024, respectively.

Renuvion and J-Plasma offer surgeons a unique ability to provide controlled heat to tissue to achieve their desired results. We also leverage our deep expertise and decades of experience in unique waveforms through OEM agreements with other medical device manufacturers.

Gross Profit Year Ended December 31, (In thousands) 2024 2023 Change Cost of sales $ 18,742 $ 18,590 0.8 % Percentage of sales 39.0 % 35.5 % Gross profit $ 29,360 $ 33,759 (13.0 )% Percentage of sales 61.0 % 64.5 % Our gross profit margin as a percentage of sales decreased by approximately 3.5% during the year ended December 31, 2024, compared with 2023.

Management estimates our products have been sold in more than 60 countries through local distributors coordinated by sales and marketing personnel through our facilities in Clearwater, Florida and Sofia, Bulgaria. 26 Table of Contents Gross Profit Year Ended December 31, (In thousands) 2025 2024 Change Cost of sales $ 19,800 $ 18,742 5.6 % Percentage of sales 37.5 % 39.0 % Gross profit $ 33,044 $ 29,360 12.5 % Percentage of sales 62.5 % 61.0 % Our gross profit margin as a percentage of sales increased by approximately 1.5% during the year ended December 31, 2025, compared with 2024.

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 included an embedded ATM facility for up to $40 million. To date we have not utilized this facility.

For a more in-depth description of the terms of the registered direct offering, see Note 13 in Item 8 of this Annual Report on Form 10-K. At December 31, 2024, we had purchase commitments for inventories totaling approximately $2.6 million, all of which is expected to be purchased by the end of 2025.

This shelf registration statement replaced our previous shelf registration statement that expired during December 2025. At December 31, 2025, we had purchase commitments for inventories totaling approximately $4.9 million, all of which is expected to be purchased by the end of 2026.

Management estimates that our products have been sold in more than 60 countries. Our direct sales force, along with our international network of distributors, is focused on becoming the sole provider of surgical equipment in the cosmetic surgical markets.

The change is primarily due to decreases in commissions ($2.0 million), insurance expense, including claims on our policies ($1.4 million), advertising expense, including trade show fees and related costs ($0.5 million), travel expense ($0.4 million) and payment processing fees ($0.2 million).

The change is primarily due to lower meeting and training costs ($1.0 million), travel expenses ($0.9 million), insurance expense, including claims on our policies ($0.6 million), regulatory and translation expenses ($0.4 million), board of directors cash compensation ($0.3 million), foreign currency gains and losses ($0.2 million), sales and property taxes ($0.1 million), payment processing fees ($0.1 million), software subscriptions ($0.1 million) and office supplies and shipping costs ($0.1 million).

We foresee, in totality, these cost savings will reduce our annual operating expenses below $40 million in 2025. 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.

For a more in-depth description of the terms of the offering, see Note 12 in Item 8 of this Annual Report on Form 10-K. 29 Table of Contents On December 1, 2025, we filed a shelf registration statement providing us the ability to register and sell our securities in the aggregate amount up to $100 million.

Quantitative and Qualitative Disclosures about Market Risk Not required. 31 Table of Contents APYX MEDICAL CORPORATION

Recent Accounting Pronouncements See Note 3 of the Notes to Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K. ITEM 7A . Quantitative and Qualitative Disclosures about Market Risk Not required. 31 Table of Contents APYX MEDICAL CORPORATION

For a more in-depth description of the terms of the registered direct offering, see Note 13 in Item 8 of this Annual Report on Form 10-K. On January 6, 2025, we announced that we had submitted a 510(k) premarket notification to the FDA for AYON. AYON was developed with a focus on versatility and innovation.

Inflation The consequences of global supply chain instability, 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.

It is at least reasonably possible that a change in the actual amount of loss will occur in the near term. 30 Table of Contents APYX MEDICAL CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued Inflation The consequences of global supply chain instability, inflationary cost increases, potential and actual tariffs, and their adverse impact to the global economy, continue to evolve.

For a more in-depth description of the terms of the Purchase Agreement see Notes 6 and 7 in Item 8 of this Annual Report on Form 10-K. 29 Table of Contents APYX MEDICAL CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued On November 7, 2024, we entered into an amendment to the Perceptive Credit Agreement.

The decrease was primarily due to a decrease in bonus expense ($1.0 million) as we reversed our entire annual bonus accrual during the third quarter because of economic uncertainty for capital equipment purchases in the aesthetics space. The decrease was also the result of lower stock-based compensation expense ($0.5 million) and temporary labor expenses ($0.2 million).

The decrease was primarily due to a decrease in salaries and benefits ($2.9 million), which was due to lower headcount following our reduction in force in the fourth quarter of 2024 and lower stock-based compensation expense ($1.8 million).

Removed

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 losses and achieving cash-flow breakeven.

Added

Removed

To date we have not utilized this facility. 24 Table of Contents APYX MEDICAL CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued On November 7, 2024, we entered into an amendment to the Perceptive Credit Agreement.

Added

These cost savings reduced our annual operating expenses below $40.0 million in 2025, as compared to $48.2 million and $53.7 million in 2024 and 2023, respectively. 24 Table of Contents APYX MEDICAL CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued On November 8, 2023, we entered into a Credit and Guaranty Agreement (the “Perceptive Credit Agreement”), by and among Apyx Medical (as borrower), Apyx China Holding Corp. and Apyx Bulgaria EOOD, our wholly-owned subsidiaries (as subsidiary guarantors), and Perceptive Credit Holdings IV, LP (as initial lender and administrative agent) (“Perceptive”), and the lenders from time to time party thereto.

Removed

Other Matters During 2024, we continued to drive sales in our Advanced Energy business by increasing the adoption and utilization of our handpieces in the U.S. cosmetic surgery market and fulfilling demand from distributors in our international markets. Management estimates that our products have been sold in more than 60 countries.

Added

After deducting incremental direct costs of the Offering, the our net proceeds were approximately $9.1 million. For a more in-depth description of the terms of the offering, see Note 12 in Item 8 of this Annual Report on Form 10-K.

Removed

During 2024, our single-use handpiece unit sales grew 8% overall and 15% in the United States and handpiece revenue currently accounts for more than 60% of our total Advanced Energy revenue. “Corporate & Other” includes certain unallocated corporate and administrative costs which are not specifically attributed to any reportable segment.

Added

Food and Drug Administration (the “FDA”) for AYON. We completed the soft launch of AYON, leveraging our relationships with key surgeons in critical geographies. Additionally, we commenced the commercial launch of AYON in September 2025. AYON was developed with a focus on versatility and innovation.

Removed

Advanced Energy segment sales decreased 11.0% or approximately $4.8 million for the year ended December 31, 2024 when compared with 2023.

Added

We anticipate the clearance in the second quarter 2026.

Removed

The Advanced Energy sales decrease was primarily due to lower sales of our generators in both domestic and certain international markets as a result of economic uncertainty in the capital equipment market that is being experienced in the aesthetic space and a lower average selling price of generators to domestic customers as a result of these market conditions.

Added

On July 28, 2025, we announced the launch of Renuvion in China following receipt of initial market clearance from the National Medical Products Administration of China. 25 Table of Contents Other Matters During 2025, we continued to accelerate sales growth in our Surgical Aesthetics business by launching AYON in the U.S. aesthetic surgery market, beginning in September, and fulfilling demand from distributors for Renuvion in our international markets.

Removed

Added

“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, and all related expenses are recorded as cost of sales, therefore no segment specific operating expenses are incurred.

Removed

These decreases were partially offset by increases in physician and marketing consulting ($0.6 million) and legal expenses ($0.4 million), as a result of the reversal of a legal loss contingency in the prior year.

Added

Surgical Aesthetics segment sales increased 17.4% or approximately $6.7 million for the year ended December 31, 2025 when compared with 2024. The Surgical Aesthetics sales increase was driven by sales of AYON in the U.S., as we commenced our commercial launch during September 2025.

Removed

These decreases were partially offset by higher meeting and training costs ($0.7 million), building lease expense ($0.2 million), allowances for credit losses ($0.1 million) and regulatory fees ($0.1 million). 27 Table of Contents APYX MEDICAL CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued Gain on sale-leaseback Year Ended December 31, (In thousands) 2024 2023 Gain on sale-leaseback $ — $ 2,692 Percentage of sales — % 5.1 % During the year ended December 31, 2023, gain on sale-leaseback was approximately $2.7 million as a result of the gain on the sale and leaseback of our Clearwater, FL facility in May 2023.

Added

Revenue for this product line decreased 20.9%, or approximately $2.0 million, when compared to 2024. The decrease in OEM sales was due to decreases in sales volume to existing customers. With the focus on Surgical Aesthetics, we anticipate that the OEM segment revenue will continue to decrease over time.

Removed

These increases are due to cash and noncash interest expense on the Perceptive Credit Agreement.

Added

The increase in gross profit margins for the year ended December 31, 2025 from the prior year is primarily due to mix between our two segments, with Surgical Aesthetics comprising a higher percentage of total sales and geographic mix, with domestic sales comprising a higher percentage of total sales.

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Top changes in Apyx Medical Corp's 2025 10-K

Item 1. Business

Item 1A. Risk Factors

Item 5. Market for Registrant's Common Equity

Item 6. [Reserved]

Other APYX 10-K year-over-year comparisons