Apyx Medical (APYX) Piper Sandler 36th Annual Healthcare Conference summary

Financial position and cost management

• Operating expenses reduced from $53 million in 2023 to under $40 million projected for 2025, improving capital position and reducing cash burn.

• $7 million deal completed, resulting in $35 million cash on hand at end of Q3.

• EBITDA positive targeted for 2026, with $60 million in revenue needed for break-even at current gross margin.

• Board restructured from eight to five members, saving $400,000 annually; board compensation shifted to equity.

• R&D spend to decrease, but marketing investment maintained to support direct-to-consumer and B2B growth.

Product innovation and Aion system launch

• Aion system integrates all major surgical body contouring technologies, offering ultrasonic and power-assisted liposuction, fat transfer, skin tightening, and a Bovie generator.

• System developed over three years with leading surgeons, improving workflow, efficiency, and safety.

• Aion consolidates multiple devices into a single, compact footprint, streamlining purchasing and clinical training.

• Expected FDA 510(k) submission by end of Q1, with approval anticipated in Q4 and domestic rollout in 2025.

• Manufacturing capacity may be limited in 2025 but will scale fully by 2026.

Market trends and business outlook

• Consumables business represents 60% of advanced energy revenue and is growing in low double digits.

• Aesthetic market challenged by GLP-1 drugs, with non-invasive procedures down but surgical procedures and consumables growing.

• Practices focusing on weight loss management are seeing strong growth and are likely early adopters of Aion.

• Anticipates a shift toward more surgical procedures as patient demand for body contouring rises.

• U.S. generator market estimated at $1.2–$1.3 billion, with global opportunity much larger.