Apyx Medical Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in revenue and increased net losses compared to the previous fiscal period. The company generated total sales of $11.5 million for the three months ended September 30, 2024, down 4.1% from $12.0 million in the same period in 2023. For the nine months, sales decreased by 10.1% to $33.9 million from $37.7 million year-over-year. The Advanced Energy segment, which includes the Renuvion® and J-Plasma® product lines, experienced a 15.2% decline in sales, attributed to lower domestic and international demand amid economic uncertainty. Conversely, the OEM segment saw a 14.5% increase in sales due to higher volumes to existing customers.

Gross profit for the third quarter was $6.95 million, a decrease of 12.8% from $8.0 million in 2023, resulting in a gross margin of 60.5%, down from 66.6%. For the nine-month period, gross profit fell 17.9% to $20.4 million, with a gross margin of 60.2%. The company reported a loss from operations of $3.6 million for the third quarter, an improvement from a loss of $4.6 million in the prior year, but the nine-month loss from operations increased to $15.8 million from $11.5 million.

Net loss attributable to stockholders for the third quarter was $4.7 million, compared to $4.6 million in 2023, while the nine-month net loss rose significantly to $18.8 million from $9.1 million. Basic and diluted loss per share for the third quarter was $(0.14), compared to $(0.13) in the same period last year, and $(0.54) for the nine months, up from $(0.26).

In response to ongoing financial challenges, Apyx Medical implemented a cost-saving restructuring in November 2024, which included a nearly 25% reduction in its U.S. workforce, expected to yield annual savings of approximately $4.3 million. The board of directors was also reduced from eight to five members, with a significant cut in board compensation. The company anticipates further cost reductions in 2025, aiming to lower annual operating expenses below $40 million.

As of September 30, 2024, Apyx Medical had cash and cash equivalents of $28.0 million, down from $43.7 million at the end of 2023. The company reported net cash used in operating activities of $15.1 million for the nine months, a significant increase from $3.0 million in the prior year, primarily due to accrued bonuses and higher cash interest expenses. The company remains in compliance with its financial covenants under the Perceptive Credit Agreement, which was amended in November 2024 to adjust revenue targets and operating expense limits.