Thu, May 8, 4:29 PM (4 days ago)
**APYX Medical Corporation (APYX, NASDAQ: APYX) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenue decreased by 7.9% to $9,430,000 in Q1 2025 from $10,244,000 in Q1 2024. Advanced Energy segment sales increased by 5.8% to $7,887,000, while OEM segment sales decreased by 44.7% to $1,543,000. - **Profit Margins:** Gross profit decreased by 4.8% to $5,665,000, with a gross margin of 60.1% in Q1 2025, up from 58.1% in Q1 2024. Operating loss narrowed to $3,051,000 from $6,615,000. - **Cash Flow:** Net cash used in operating activities was $702,000 in Q1 2025, an improvement from $6,341,000 in Q1 2024. Cash and cash equivalents decreased to $31,011,000 from $31,741,000. **Earnings and Changes:** - **Net Loss:** Net loss attributable to stockholders was $4,150,000 in Q1 2025, an improvement from $7,576,000 in Q1 2024. Loss per share was $0.10, compared to $0.22 in the prior year. - **Cost Savings:** The company implemented cost-saving measures, including a reduction in force, elimination of bonuses, and reduction in board compensation, aiming to achieve annual cost savings of approximately $4.3 million. **Trends and Uncertainties:** - **Product Development:** The company submitted a 510(k) premarket notification to the FDA for AYON, an all-in-one body contouring system, anticipating clearance in the first half of 2025. - **Market Conditions:** The company is monitoring the impact of GLP-1 drugs on the aesthetic market and potential tariffs on imports, which could affect gross margins. - **Liquidity:** The company plans to fund operations through existing cash, product sales, and potentially additional equity or debt financing. Compliance with financial covenants is subject to meeting revenue targets and reducing operating expenses. **Future Operations Impact:** - **Cost Savings:** The company expects to reduce annual operating expenses below $40 million in 2025 through various cost-saving initiatives. - **Product Launch:** The successful launch of AYON and potential expansion of indications could drive future revenue growth. - **Market Risks:** The company faces uncertainties related to market conditions, regulatory approvals, and potential tariffs, which could impact financial performance.