What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-03-10 compared with 2025-03-13 · 167 added, 198 removed, 817 unchanged (31% of the section changed)

26 unchanged sentences

We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Accounting for the Registered Direct Offering

As described in Note 13 to the consolidated financial statements, the Company entered into a Securities Purchase Agreement with several institutional investors, pursuant to which the Company agreed to issue and sell, in a registered direct offering, an aggregate of:

(i) 3,000,000 shares of common stock and (ii) pre-funded warrants to purchase up to an aggregate of 2,934,690 shares of common stock.

After deducting incremental direct costs of the registered direct offering, the Company's net proceeds were approximately $6.8 million.

The pre-funded warrants are classified as equity in accordance with ASC 815, Derivatives and Hedging , given the pre-funded warrants are indexed to the Company’s own shares of common stock and meet the requirements to be classified in equity.

We identified the assessment of the initial accounting for the registered direct offering, specifically the accounting for the pre-funded warrants, as a critical audit matter because of the complexity in applying the accounting framework and the significant judgments made by management in the determination of the classification of the pre-funded warrants.

Auditing management’s conclusions involved especially subjective auditor judgment and an increase in audit effort due to the impact management’s judgments could have on the determination of the classification of the pre-funded warrants.

Our audit procedures related to accounting for the registered direct offering, including the pre-funded warrants, included the following, among others:

We obtained and read the agreements associated with the registered direct offering, including the related pre-funded warrant agreements, and tested the accuracy and completeness of the significant terms identified by management for purposes of determining the classification of the pre-funded warrants.

With the assistance of professionals in our firm having expertise in the accounting treatment for equity instruments, including warrants, we evaluated the Company’s conclusions regarding the accounting treatment applied to the pre-funded warrants, including the classification of the pre-funded warrants as equity.

Critical Audit Matters

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

We determined that there are no critical audit matters.

/s/ RSM US LLP

72 unchanged sentences

39,490 48,205

Gain on sale-leaseback

Loss from operations

3 unchanged sentences

( 5,589 ) ( 5,907 )

Other (expense) income, net

Loss on extinguishment of debt

Other income (expense), net

Total other expense, net

2 unchanged sentences

( 10,835 ) ( 23,307 )

Income tax expense (benefit)

252 ( 2,432 )

Income tax expense

( 11,105 ) ( 23,559 )

Net loss attributable to non-controlling interest

( 96 ) ( 137 )

Net loss attributable to stockholders

13 unchanged sentences

34,644 $ 35 $ 81,114 $ ( 54,448 ) $ 221 $ 26,922

Contributions from non-controlling interest

— — — — 147 147

Shares issued on stock options exercises for cash

35 — 86 — — 86

Stock based compensation

— — 4,013 — — 4,013

Shares issued on net settlement of stock options

Proceeds from debt allocated to warrants

Fair value of common stock issued in debt amendment

150 — 183 — — 183

Proceeds received from issuance of common stock and warrants in registered direct offering, net of issuance costs

3,000 3 6,773 — — 6,776

— — — ( 23,463 ) ( 96 ) ( 23,559 )

Balance at December 31, 2024

37,794 $ 38 $ 92,083 $ ( 77,911 ) $ 125 $ 14,335

Stock based compensation

Contributions from non-controlling interest

— — — — 60 60

Fair value of common stock issued in debt amendment

Shares issued on stock options exercises for cash

189 — 488 — — 488

Proceeds received from issuance of common stock and warrants in registered direct offering, net of issuance costs

Shares issued on net settlement of stock options

Shares issued on cashless exercise of warrants

1,011 1 ( 1 ) — — —

Stock based compensation

— — 2,001 — — 2,001

Proceeds received from issuance of common stock in public offering, net of issuance costs

2,762 3 9,049 — — 9,052

Net (loss) income

— — — ( 11,211 ) 106 ( 11,105 )

Balance at December 31, 2025

11 unchanged sentences

Provision for product warranties

Loss (gain) on disposal of property and equipment

Loss on extinguishment of debt

Loss on disposal of property and equipment

Stock based compensation

5 unchanged sentences

( 1,318 ) ( 2,035 )

Income tax receivables

Prepaid expenses and other assets

( 1,074 ) 2,263

Accounts payable

6 unchanged sentences

( 1,114 ) ( 722 )

Proceeds from sale of property and equipment

Net cash (used in) provided by investing activities

Net cash used in investing activities

( 1,114 ) ( 722 )

1 unchanged sentence

Proceeds from stock option exercises

Proceeds from registered direct offering

Payment of direct incremental costs in registered direct offering

Proceeds from long-term debt

Payment of debt costs

Proceeds from capital raise

Payment of direct incremental costs in capital raise

( 248 ) ( 224 )

Proceeds from debt allocated to warrants

Payment of debt costs

Repayment of finance lease liabilities

( 20 ) ( 20 )

Extinguishment of credit agreement

Contributions from non-controlling interest

12 unchanged sentences

Transfer of machinery and equipment to inventory

Right-of-use assets capitalized and operating lease liabilities recognized upon execution of lease

Transfer of right-of-use assets to property and equipment on exercise of purchase option

The accompanying notes are an integral part of the consolidated financial statements.

3 unchanged sentences

Apyx Medical Corporation (“Company”, “Apyx”, “it” and similar terms) was incorporated in 1982, under the laws of the State of Delaware and has its principal executive office at 5115 Ulmerton Road, Clearwater, FL 33760.

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

The Company is 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.

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.

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.

The Company also leverages its deep expertise and decades of experience in unique waveforms through OEM agreements with other medical device manufacturers.

Recent Business Developments

On January 6, 2025, the Company announced that it had submitted a 510 (k) premarket notification to the U.S.

Food and Drug Administration (the “FDA”) for the AYON Body Contouring System (“AYON”).

On May 13, 2025, the Company announced that it had received 510 (k) clearance from the U.S.

Food and Drug Administration (the “FDA”) for AYON.

The Company completed the soft launch of AYON, leveraging its relationships with key surgeons in critical geographies.

Additionally, the Company commenced the commercial launch of AYON in September 2025.

AYON was developed with a focus on versatility and innovation.

8 unchanged sentences

• Renuvion treatment to address loose and lax skin

During 2025, the Company plans to expand the indications with an additional 510 (k) submission for AYON to include power assisted liposuction.

On October 13, 2025, the Company announced that it had submitted the 510 (k) premarket notification to the FDA for the label expansion of AYON to include power liposuction.

The Company anticipates receiving clearance in the second quarter 2026.

On July 28, 2025, the Company announced the launch of Renuvion in China following receipt of initial market clearance from the National Medical Products Administration of China.

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern.

18 unchanged sentences

workforce by nearly 25 %.

Management estimates the annualized future cost savings from the reduction in force to be approximately $ 4.3 million, which they expect to contribute to the goal of decreasing losses and achieving cash-flow breakeven.

Management estimated the annualized future cost savings from the reduction in force to be approximately $ 4.3 million.

The Company incurred pre-tax charges of approximately $ 0.6 million in the fourth quarter of 2024 representing, for the most part, one -time cash expenditures for severance and other employee termination benefits.

In addition to the reduction in force, the Company eliminated bonuses in 2024, reduced the board of directors from eight to five members and reduced board cash compensation from $ 0.5 million annually to $ 0.1 million.

In addition to the organizational changes, management has identified other direct cost savings they anticipate achieving in 2025.

The identified cost savings include reductions in professional fees, lower research and development costs as the development of AYON is completed, lower credit card fees and stock-based compensation.

Management foresees, in totality, these cost savings will reduce the Company's annual operating expenses below $40 million in 2025.

November 22, 2022, the Company filed a shelf registration statement providing it the ability to register and sell its securities in the aggregate amount up to

$ 100 million.

The shelf registration statement included an embedded ATM facility for up to

In addition to the organizational changes, management identified other direct cost savings the Company achieved in 2025.

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

These cost savings reduced the Company’s annual operating expenses below $ 40.0 million in 2025, as compared to $ 48.2 and $ 53.7 million in 2024 and 2023, respectively.

November 18, 2025, the Company entered into an underwriting agreement where it sold

2,762,431 shares of common stock at an offering price of

After deducting incremental direct costs of the Offering, the Company’s net proceeds were approximately

$ 9.1 million.

To date the Company has

not utilized this facility.

On November 7, 2024, the Company entered into an amendment to the Perceptive Credit Agreement.

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.

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.

The Perceptive Credit Agreement, as amended, continues to contain customary affirmative and negative covenants, including covenants limiting the ability of the Company and its 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.

Additionally, the Company 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, the Company was in compliance with the financial covenants contained within the Perceptive Credit Agreement, as amended.

The Company's 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.

On November 7, 2024, the Company 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.

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.

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.

On December 1, 2025, the Company filed a shelf registration statement providing it the ability to register and sell its securities in the aggregate amount up to $ 100 million.

This shelf registration statement replaced the Company's previous shelf registration statement that expired during December 2025.

SIGNIFICANT ACCOUNTING POLICIES

20 unchanged sentences

The economic uncertainty in the capital equipment market being experienced in the aesthetic space as a result of the disruption from GLP- 1's has resulted in the granting of extended credit terms.

Accounts receivable are determined to be past due if payments are not made in accordance with such agreements.

Accounts receivable are determined to be past due if payments are not made in accordance with such agreements, however are not considered significant financing components.

When evaluating the adequacy of the allowance for credit losses, we analyze historical bad debt experience, the composition of outstanding receivables by customer class, and the age of outstanding balances, and we make estimates in connection with establishing the allowance for credit losses, including the expected impacts of changes in the operating environment and other trends.

2 unchanged sentences

This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available.

Management believes that the allowances for credit losses of approximately $ 1.0 million and $ 0.6 million at December 31, 2024 and 2023 , respectively, are adequate to provide for probable credit losses.

Management believes that the allowances for credit losses of approximately $ 1.0 million at December 31, 2025 and 2024 , are adequate to provide for probable credit losses.

Inventories are stated at the lower of cost or net realizable value.

30 unchanged sentences

Product Warranties

The Company provides a four -year limited warranty on end-user sales of its Renuvion and J-Plasma generators, a two year warranty on mounting fixtures, and a one -year warranty on certain accessories.

The Company provides a four -year limited warranty on end-user sales of its AYON and Renuvion/J-Plasma generators, a two year warranty on mounting fixtures, and a one -year warranty on certain accessories.

The Company estimates and provides for future costs for product warranties in cost of sales at the time revenue is recognized.

15 unchanged sentences

and (v) recognizes revenue when, or as, it satisfies the performance obligation(s).

For sales of the Company's Advanced Energy products (Renuvion and J-Plasma), this is at a point in time when title has been transferred to the customer, which is generally at the time of shipment or receipt by customer for FOB destination terms.

For sales of the Company's Surgical Aesthetics products (Renuvion, AYON and J-Plasma), this is at a point in time when title has been transferred to the customer, which is generally at the time of shipment or receipt by customer for FOB destination terms.

For sales of products under its OEM agreements, the Company recognizes revenue over time when no alternative use exists for the manufactured goods and the Company has rights to payment.

3 unchanged sentences

Generally, title and the risks and rewards of ownership are transferred to the customer when the product is shipped.

The transaction price is adjusted for any discounts provided to the customer.

Payment by the customer is due under fixed payment terms.

56 unchanged sentences

Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in selling, general and administrative expenses in the Consolidated Statements of Operations and were not material for the years ended December 31, 2025 and 2024 .

Reclassifications

The Company has reclassified certain amounts presented in the prior year to conform to the current year presentation.

These amounts primarily relate to management salaries that were previously included within salaries and related costs and are now included within research and development.

These reclassifications had no impact on previously reported net loss, accumulated deficit or cash flows for the periods presented.

RECENT ACCOUNTING PRONOUNCEMENTS

In November 2023 , the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023 - 07, Segment Reporting (Topic 280 ) , to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

Amongst other amendments, the standard requires annual and interim disclosures of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), and interim disclosures about a reportable segment’s profit or loss and assets that are currently required annually.

This standard does not change how an entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments.

The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

The Company adopted ASU 2023 - 07 on January 1, 2024.

The effect of adopting the standard resulted in additional segment disclosures (see Note 20 ).

In December 2023 , the FASB issued ASU 2023 - 09, Income Taxes (Topic 740 ) to improve income tax disclosures primarily related to the rate reconciliation and income taxes paid information.

The amendments in this ASU are effective for fiscal years beginning after December 15, 2024.

The Company is currently evaluating the impact of adoption of this standard on its consolidated financial statements.

The Company adopted ASU 2023 - 09 on January 1, 2025 on a retrospective basis.

Adopting the standard resulted in additional income tax disclosures (see Note 14 ).

In November 2024, the FASB issued ASU 2024 - 03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220 - 40 ) , to disclose specific information about certain costs and expenses in the notes to its financial statements for interim and annual reporting periods.

3 unchanged sentences

No other new accounting pronouncement issued or effective during the fiscal year are expected to have a material impact on the Company’s condensed consolidated financial statements or disclosures.

APYX MEDICAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

CHINA JOINT VENTURE

3 unchanged sentences

The amendment requires the Company to make additional capital contributions to the China JV of $ 408,000 , of which $ 214,000 has been made as of December 31, 2025 .

As of the date of these Consolidated Financial Statements, the joint venture has not commenced principal operations.

During May 2025, the China JV executed a distribution agreement with a Chinese distributor and commenced operations during the second quarter of 2025.

During 2024, the Company determined that the contributions made to the China JV to date are not sufficient for the China JV to fund expected losses without additional subordinated financial support.

3 unchanged sentences

The China JV is organized as a limited liability company under the laws of the Peoples Republic of China, accordingly the Company's exposure to losses in the China JV is limited to the Company's registered capital in the Company, which is equal to the sum of the required capital contributions above.

As the China JV has not commenced principal operations, the assets of the China JV are not available to settle obligations of the Company.

As the China JV is not currently sufficiently capitalized, the assets of the China JV are not available to settle obligations of the Company.

APYX MEDICAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The following table summarizes the assets and liabilities of the China JV included in our consolidated balance sheets at December 31, 2025 and 2024 , respectively:

1 unchanged sentence

Cash and cash equivalents

Trade accounts receivable

Prepaid expenses and other current assets

6 unchanged sentences

Contributions

Net loss attributable to Apyx

( 99 ) ( 143 )

Net income (loss) attributable to Apyx

Ending interest in China JV

APYX MEDICAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

Inventories consisted of the following:

26 unchanged sentences

Depreciation expense is included within cost of goods sold and selling, general and administrative expense in the Consolidated Statements of Operations.

On February 27, 2023, the Company’s Board of Directors approved a plan to sell and leaseback the Company's real property located in Clearwater, FL.

On March 14, 2023, the Company entered into a Purchase and Sale Agreement (the “Purchase Agreement”) with VK Acquisitions VI, LLC (the “Purchaser”), for the sale of the Company’s facility located at 5115 Ulmerton Road, Clearwater, Florida, as more fully described in the Purchase Agreement (collectively, the “Property”) for a purchase price of $ 7,650,000 .

On May 8, 2023, the Company closed on the Purchase Agreement and concurrently executed a 10 -year agreement to leaseback the underlying Property from the Purchaser (see Note 7 ).

The Company received net cash proceeds of approximately $ 6.6 million after withholding the security deposit of approximately $ 0.6 million, equal to one year's rent, taxes, first month's rent, expenses, and fees.

The $ 2.7 million gain on this transaction is presented in gain on sale-leaseback in the accompanying Consolidated Statement of Operations for the year ended December 31, 2023.

APYX MEDICAL CORPORATION

2 unchanged sentences

The Company leases its facilities in Clearwater, Florida and Sofia, Bulgaria under non-cancelable operating lease agreements.

In connection with the terms of the Purchase Agreement (see Note 6 ), during May 2023, the Company entered into a Single Tenant Industrial Building Lease (the “Lease”), pursuant to which the Property was leased back to the Company.

During May 2023, the Company entered into a Single Tenant Industrial Building Lease (the “Lease”), on property it previously owned in Clearwater, Florida.

The Lease has an initial term of ten ( 10 ) years commencing from the closing (the “Initial Term”), and a renewal term of five ( 5 ) years, exercisable at the Company’s option.

2 unchanged sentences

The Lease provides for a 3 % management fee on rent payments throughout the Initial Term and optional renewal term.

During the year ended December 31, 2022, the Company entered into a one year extension on one of its leases on computer equipment.

This extension resulted in reclassification of the lease from finance to operating.

This lease expired during the year ended December 31, 2023 and the Company continued to rent the equipment on a month-to-month basis through January 2024 when it bought out the lease.

The Company determined that the underlying assets did not have a remaining economic life that was long-term in nature and it recognized the buyout as variable lease costs.

During the year ended December 31, 2022, the Company entered into a five -year extension of its Sofia, Bulgaria facility.

1 unchanged sentence

Finance Leases

The Company has entered into non-cancelable finance leases for certain computer equipment and a vehicle in Clearwater, Florida.

During the year ended December 31, 2023, the Company’s lease on the vehicle in Clearwater, Florida expired and the Company purchased the vehicle for the purchase price specified in the lease agreement.

Upon termination of the lease, the vehicle was transferred to fixed assets.

The Company has entered into non-cancelable finance leases for certain computer equipment in Clearwater, Florida.

During the year ended December 31, 2022, the Company entered into a 63 -month lease for computer equipment.

28 unchanged sentences

Less imputed interest

( 2,171 ) ( 1 )

Present value of lease liabilities

16 unchanged sentences

Included in accrued payroll and related costs at December 31, 2024 is approximately $ 0.4 million of accrued severance costs for the Company’s former Executive Vice President.

Included in accrued payroll and related costs at December 31, 2023 is approximately $ 0.3 million of accrued severance costs for the Company’s former Chief Financial Officer.

PRODUCT WARRANTIES

8 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

JOINT AND SEVERAL PAYROLL LIABILITY

During 2018 and 2019, the Company improperly calculated and reported the amount of income to certain employees and did not collect and remit the correct amount of its employees’ portion of income and payroll taxes, related to stock option exercises as required by the IRS.

Due to IRS statutory requirements, the Company had joint and several liability for the full amount that was not withheld and remitted to the proper taxing authorities.

During the year ended December 31, 2023, the Company was relieved of the remaining $ 0.3 million, of its joint and several payroll liability due to the lapse of the statute of limitations on the liability.

This adjustment is included in other income, net in the accompanying Consolidated Statements of Operations for the year ended December 31, 2023.

MIDCAP CREDIT AGREEMENT

On February 17, 2023, the Company entered into a Credit, Security and Guaranty Agreement (the “MidCap Credit Agreement”), by and among the Company (as borrower) and Apyx China Holding Corp., the Company’s wholly-owned subsidiary (as guarantor), and MidCap Funding IV Trust (as agent), and MidCap Financial Trust (as term loan servicer), and the lenders party thereto from time to time (collectively “MidCap”).

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

The MidCap Credit Agreement provided for senior secured term loans of up to $ 25 million, comprised of (i) an initial tranche of $ 10 million, (ii) a second tranche of $ 5 million, and (iii) a third tranche of $ 10 million.

The secured revolving facility provided for loans in an aggregate principal amount of up to $ 10 million, subject to a borrowing base equal to percentages of eligible accounts receivable and inventory determined in accordance with the MidCap Credit Agreement.

The MidCap Credit Agreement was to mature on February 1, 2028.

The outstanding borrowings under the MidCap Credit Agreement were repaid in full using proceeds from the execution of the Perceptive Credit Agreement.

Issuance of MidCap Warrants

In connection with the Company’s obligations under the MidCap Credit Agreement, the Company issued to a statutory trust of MidCap Financial warrants to purchase up to 250,000 shares of its common stock, par value $ 0.001 , with an exercise price of $ 3.40 per share.

These warrants remain outstanding as of December 31, 2024 .

The warrants have a 10 year term and can be exercised by issuing payment to the Company for the number of warrants exercised or exercised net by surrendering warrants with an intrinsic value equal to the cumulative exercise price of the warrants being exercised.

The Company determined that these warrants meet the criteria for equity classification and included the proceeds allocated to the warrants, on a relative fair value basis, as a debt discount and additional paid-in capital in the accompanying consolidated financial statements.

MidCap Debt Issuance Costs

In connection with entering into the MidCap Credit Agreement, the Company incurred debt issuance costs of approximately $ 1.6 million, comprised primarily of commissions paid to the financial advisor.

These costs were allocated to the issued and unissued term loans and the revolving facility.

The costs allocated to the issued term loan were being amortized using the effective interest method over the life of the loan.

The costs allocated to the unissued term loans were deferred and were being amortized over the life of the term loans starting at the issuance date.

The Company recognized the deferred costs at the point that the Company’s rights to borrow on the term loans expired.

The costs allocated to the revolving facility were being recognized on a straight-line basis over the term of the MidCap Credit Agreement.

Together with unamortized debt discounts and prepayment penalties incurred in the extinguishment, the Company recognized all unamortized debt issuance costs in loss on extinguishment of debt in the accompanying Consolidated Statement of Operations for the year ended December 31, 2023.

PERCEPTIVE CREDIT AGREEMENT

6 unchanged sentences

On November 7, 2024, the Company entered into an amendment to the Perceptive Credit Agreement.

The amendment reduced the financial covenant trailing twelve -month revenue targets relating to its Advanced Energy segment and introduced a maximum operating expense financial covenant for 2025 and 2026.

The amendment reduced the financial covenant trailing twelve -month revenue targets relating to its Surgical Aesthetics segment and introduced a maximum operating expense financial covenant for 2025 and 2026.

In connection with the amendment to the Perceptive Credit Agreement, the Company issued Perceptive 150,000 shares of its common stock.

The Company determined that the amendment was a modification in accordance with ASC 470.

APYX MEDICAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The initial loan of $ 37.5 million was fully funded on November 8, 2023, with approximately $ 11.0 million of the proceeds used to payoff the obligations under the MidCap Credit Agreement, including approximately $ 1.0 million of related prepayment penalties and exit fees, and $ 2.7 million for transaction fees and other expenses incurred in connection with the Perceptive Credit Agreement, which included a 2 % fee of the total facility payable to Perceptive at closing.

After repayment of the MidCap Credit Agreement and payment of transaction fees and other expenses in connection with the Perceptive Credit Agreement, the net proceeds of these loans will be used for working capital and general corporate purposes.

After repayment of the MidCap Credit Agreement and payment of transaction fees and other expenses in connection with the Perceptive Credit Agreement, the net proceeds of these loans was used for working capital and general corporate purposes.

The initial loan bears interest at a floating rate based on one -month SOFR , subject to a floor of 5.0 %, plus 7.0 % ( 12.0 % at December 31, 2025 ).

8 unchanged sentences

As amended, the Perceptive Credit Agreement contains customary affirmative and negative covenants, including covenants limiting the ability of the Company and its 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.

As amended, the Perceptive Credit Agreement also requires the Company to satisfy certain financial covenants, including minimum trailing twelve month net revenue targets relating to its Advanced Energy segment (tested quarterly), with year-end targets of $ 34.4 million, $ 37.0 million, $ 52.4 million, and $ 60.3 million for 2024, 2025, 2026, and 2027, respectively.

As amended, the Perceptive Credit Agreement also requires the Company to satisfy certain financial covenants, including minimum trailing twelve month net revenue targets relating to its Surgical Aesthetics segment (tested quarterly), with year-end targets of $ 37.0 million, $ 52.4 million, and $ 60.3 million for 2025, 2026, and 2027, respectively.

The amendment introduced a maximum operating expense financial covenant, with full year targets of $ 40.0 million and $ 45.0 million for 2025 and 2026, respectively.

1 unchanged sentence

As of December 31, 2025 , the Company was in compliance with the financial covenants contained within the Perceptive Credit Agreement, as amended.

The Company’s continued compliance with covenants is subject to meeting or exceeding forecasted Advanced Energy revenues, as amended, and reducing operating expenses.

The Company’s continued compliance with covenants is subject to meeting or exceeding forecasted Surgical Aesthetics revenues, as amended, and reducing operating expenses.

Events of Default

The Perceptive Credit Agreement also contains customary Events of Default (as defined in the Perceptive Credit Agreement) that include, among other things, certain payment defaults, cross defaults to certain other contracts and indebtedness, covenant defaults, inaccuracy of representations and warranties, bankruptcy and insolvency defaults, judgment defaults, change of control defaults, defaults related to the failure to remain registered with the Securities and Exchange Commission and listed for trading on the Nasdaq Stock Market, and any material adverse change.

APYX MEDICAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

Upon the occurrence and during the continuance of an Event of Default under the Perceptive Credit Agreement, the administrative agent, if requested by the respective lenders, may, among other things, (i) terminate commitments, (ii) declare all outstanding obligations under the agreement (including principal and accrued and unpaid interest) immediately due and payable, and (iii) exercise the other rights and remedies provided for under the agreement.

2 unchanged sentences

The fair value of the bifurcated derivative is de minimis to the Company’s consolidated financial statements.

APYX MEDICAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

Debt Discounts - Issuance of Warrants and Common Stock

2 unchanged sentences

In connection with the amendment to the Perceptive Credit Agreement, the Company paid lender fees of approximately $ 11,000 and issued to Perceptive 150,000 shares of its common stock.

In connection with the amendment to the Perceptive Credit Agreement, the Company paid lender fees of approximately $ 11,000 and issued 150,000 shares of its common stock to Perceptive.

The Company included the fair value of the common stock in debt discounts and additional paid in capital in the accompanying consolidated financial statements.

4 unchanged sentences

The costs allocated to the unissued delayed draw term were deferred and were recognized on December 31, 2024, at the point that the Company's rights to borrow on the term loan expired.

Issuance of Warrants to Prior Lender

In connection with the Company’s prior credit agreement, the Company issued warrants to purchase up to 250,000 shares of its common stock, par value $ 0.001 , with an exercise price of $ 3.40 per share.

These warrants remain outstanding as of December 31, 2025 .

Other Debt Information

Included in interest expense for the year ended December 31, 2025 are $ 694,000 and $ 262,000 of amortization of the debt issuance costs and debt discounts, respectively.

Included in interest expense for the year ended December 31, 2023 are $ 214,000 and $ 331,000 of amortization of the debt issuance costs and debt discounts, respectively, including accretion of the exit fee on the Company’s prior credit agreement.

Included in interest expense for the year ended December 31, 2024 are $ 516,000 and $ 214,000 of amortization of the debt issuance costs and debt discounts, respectively.

The Company’s term loan, net consists of the following at

18 unchanged sentences

Other contract liabilities may be recognized when a customer prepays for goods or services or if the Company has an unfulfilled performance obligation that a customer has been invoiced for.

At December 31, 2024 and 2023 , respectively, the Company had recorded approximately $ 2.0 million and $ 1.7 million of contract liabilities and $ 0.4 million and $ 0.5 million of contract assets related to customer prepayments and the deferral of revenues and expenses under these agreements.

At December 31, 2025, 2024 and 2023, respectively, the Company had recorded approximately $ 1.7 million, $ 2.0 million and $ 1.7 million of contract liabilities and $ 0.3 million, $ 0.4 million and $ 0.5 million of contract assets related to customer prepayments and the deferral of revenues and expenses under these agreements.

At December 31, 2025 , $ 0.6 million of the contract liabilities and $ 0.1 million of the contract assets are presented as current in the accompanying Consolidated Balance Sheets within accrued expenses and other current liabilities and prepaid expenses and other current assets, respectively.

2 unchanged sentences

During the year ended December 31, 2024, the Company recognized approximately $ 0.1 million of contract liabilities and $ 0.1 million of contract assets that existed as of December 31, 2023, in sales and cost of sales, respectively, in the accompanying Consolidated Statement of Operations.

CAPITAL RAISES

PUBLIC OFFERING

On November 18, 2025, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Lucid Capital Markets, LLC (the “Underwriter”), pursuant to which the Company agreed to issue and sell to the Underwriter 2,762,431 shares of common stock at an offering price of $ 3.62 and grant to the Underwriter an overallotment option for the purchase up to 414,365 additional shares of common stock at $ 3.62 (the “Option”) (the “Offering”).

The Offering closed on November 19, 2025.

The Option expired unexercised.

After deducting incremental direct costs of the Offering, the Company’s net proceeds were approximately $ 9.1 million.

The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes.

The Underwriting Agreement contains customary representations and warranties and agreements of the Company and the Underwriter, customary conditions to closing, and customary indemnification obligations of the Company.

REGISTERED DIRECT OFFERING

1 unchanged sentence

(i) 3,000,000 shares (the “Shares”) of Common Stock, at an offering price of $ 1.18 per share, and (ii) pre-funded warrants (the “Pre-Funded Warrants”) to purchase up to an aggregate of 2,934,690 shares of Common Stock (the “Warrant Shares”) at an offering price of $ 1.179 per Pre-Funded Warrant (which represents the per share offering price for Common Stock, less the exercise price per share for each Pre-Funded Warrant of $ 0.001 ).

The Registered Offering closed on November 8, 2024.

After deducting incremental direct costs of the Registered Offering, the Company’s net proceeds were approximately $ 6.8 million.

The Company intends to use the net proceeds from the Registered Offering for working capital and general corporate purposes.

The Registered Offering closed on November 8, 2024.

The Purchase Agreement contains customary representations and warranties and agreements of the Company and the Purchasers and customary indemnification rights and obligations of the parties.

3 unchanged sentences

The Pre-Funded warrants are included in the calculation of basic and diluted loss per share.

During 2025, the Company received 275 Pre-Funded warrants as payment in the cashless exercise of 1,010,792 Pre-Funded warrants.

APYX MEDICAL CORPORATION

14 unchanged sentences

Anti-dilutive instruments excluded from diluted loss per common share:

Components of income tax (benefit) expense are as follows:

The components of (loss) income before provision for income taxes are as follows:

Year Ended December 31,

(in thousands)

$ ( 13,855 ) $ ( 25,762 )

252 ( 2,432 )

( 3,669 ) ( 3,386 )

( 585 ) ( 989 )

( 4,254 ) ( 4,375 )

Valuation allowance

Total income tax (benefit) expense

Net loss before taxes

$ ( 10,835 ) $ ( 23,307 )

Components of income tax expense are as follows:

(In thousands)

Total income tax expense

APYX MEDICAL CORPORATION

2 unchanged sentences

Year Ended December 31,

Federal tax provision

federal statutory tax rate

$ ( 2,275 ) 21.0 % $ ( 4,894 ) 21.0 %

State taxes (net of federal benefit)

Valuation allowance

State and local income taxes, net of federal income tax effect and valuation allowance(i)

18 ( 0.2 )% 19 ( 0.1 )%

Incentive stock compensation expense

Foreign tax effects:

Statutory tax rate difference

( 332 ) 3.1 % ( 270 ) 1.2 %

( 55 ) 0.5 % ( 17 ) 0.1 %

Changes in federal valuation allowance

1,262 ( 11.6 )% 3,669 ( 15.8 )%

Effect of cross-border tax laws:

608 ( 5.6 )% 450 ( 1.9 )%

Nontaxable or nondeductible items:

Stock compensation expense

786 ( 7.3 )% 787 ( 3.4 )%

Section 162(m) compensation

1 unchanged sentence

111 ( 1.0 )% 211 ( 0.9 )%

Uncertain tax positions

Other adjustments:

71 ( 0.7 )% 24 ( 0.1 )%

$ 270 ( 2.5 )% $ 252 ( 1.1 )%

(i) The states that contribute to the majority (greater than 50% ) of the tax effect in this category includes Florida and California for each of the years ended December 31, 2025 and 2024.

Major components of the Company’s deferred tax assets (liabilities) are as follows:

26 unchanged sentences

The Company considers all positive and negative evidence regarding the realization of deferred tax assets, including past operating results and future sources of taxable income.

For the years ended December 31, 2025 and 2024, the valuation allowance increased by $ 1.4 million and $ 4.3 million, respectively.

The $ 22.1 million valuation allowance at December 31, 2025 is related to Federal and State deferred tax assets the Company believes are not more likely than not to be realized.

APYX MEDICAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

At December 31, 2025 the Company had federal net operating loss carryforwards of approximately $ 44.3 million which will be carried forward indefinitely and may be used to offset up to 80 % of federal taxable income.

In addition, the Company has state net operating loss carryforwards of approximately $ 79.9 million.

Approximately $ 36.9 million will begin to expire in 2029 and the remainder will be carried forward indefinitely.

Additionally the Company has federal research and development carryforwards of approximately $ 0.3 million.

Cash taxes paid are as follows:

Year Ended December 31,

(in thousands)

Total foreign

In 2025, the individual jurisdiction with cash taxes paid that equaled or exceeded 5% of total income taxes paid was Bulgaria and Texas.

In 2024, the individual jurisdiction with cash taxes paid that equaled or exceeded 5% of total income taxes paid was Bulgaria.

On July 4, 2025 changes to U.S.

tax law were enacted.

The provisions allow for the immediate expensing of domestic research and experimentation costs, 100% accelerated bonus depreciation on eligible capital expenditures, and other tax law changes impacting 2025 with other changes impacting the Company and being effective in 2026.

The impacts of these changes are included in our results for the year ended December 31, 2025.

The Company considers the earnings of Apyx Bulgaria, EOOD to be indefinitely invested outside the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and our specific plans for reinvestment of those subsidiary earnings.

5 unchanged sentences

As of December 31, 2025 and 2024 , the Company has no uncertain tax positions.

APYX MEDICAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The Company is subject to U.S.

1 unchanged sentence

The Company’s 2022 through 2024 U.S.

federal income tax returns are subject to examination by the Internal Revenue Service (“IRS”).

federal income tax returns are subject to examination by the Internal Revenue Service.

The Company’s state income tax returns are subject to examination for the 2021 through 2024 tax years.

During 2022, the Company was notified by the IRS that it was examining the Company’s 2018, 2019 and 2020 federal income tax returns.

During January 2023, the Company was notified that the examination process was complete and that the Company's tax refunds were approved for substantially the amount recorded in the Company's Consolidated Balance Sheet at December 31, 2022.

On August 10, 2023, the Company received $ 8.1 million from the IRS, which included approximately $ 0.4 million of interest on the $ 7.7 million of income tax refunds.

In the examination, the Company's uncertain tax positions were accepted by the IRS as submitted on our income tax returns and the Company reversed its uncertain tax positions in January 2023.

RETIREMENT PLAN

5 unchanged sentences

The Company makes matching contributions of 50 % of the employee contributions up to a total of 3 % of participant payroll.

Matching contributions made by the Company totaled approximately $ 0.3 million and $ 0.4 million for the years ended December 31, 2024 and 2023 , respectively.

Matching contributions made by the Company totaled approximately $ 0.3 for each of the years ended December 31, 2025 and 2024 .

RELATED PARTY TRANSACTIONS

Some relatives of Nikolay Shilev, Apyx Bulgaria’s Managing Director, are considered related parties.

Certain relatives of Nikolay Shilev, Apyx Bulgaria’s Managing Director, are considered related parties.

Teodora Shileva, Mr.

5 unchanged sentences

At December 31, 2025 and 2024 , the Company had payables to this supplier of approximately $ 372,000 and $ 243,000 , respectively.

APYX MEDICAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

COMMITMENTS AND CONTINGENCIES

7 unchanged sentences

However, in the event that damages exceed the aggregate coverage limits of the Company’s policies or if its insurance carriers disclaim coverage, management believes it is possible that costs associated with these claims could have a material adverse impact on the consolidated financial condition, results of operations and cash flows.

APYX MEDICAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

During 2022, the Company was notified of certain procedures alleged to have been performed by the same physician and which are currently the subject of two related products liability cases within the courts.

During 2023, the Company was notified by its insurance carriers that all or most of the ten individual plaintiff’s allegations could be subject to separate deductibles notwithstanding the commonality of each underlying occurrence.

During March 2024, two of the plaintiffs claims were dismissed by the courts.

Additionally, during 2024, the Company determined that one of the procedures was performed by a different physician.

The Company has determined that a loss, comprised of estimated costs to defend the Company against the lawsuits, is probable and that the range of estimated losses is approximately $ 1,650,000 to $ 1,950,000 .

The Company recorded an estimated loss of $ 1,450,000 related to the matters during 2022 and $ 200,000 related to the matters during 2024.

It is at least reasonably possible that a change in the actual amount of loss will occur in the near term, though management expects the actual amount of loss will be within the estimated range of losses.

2022, the Company was notified of certain procedures alleged to have been performed by the same physician and which are currently the subject of

two related products liability cases within the courts.

2023, the Company was notified by its insurance carriers that all or most of the

ten individual plaintiff’s allegations could be subject to separate deductibles notwithstanding the commonality of each underlying occurrence.

two of the plaintiffs claims were dismissed by the courts.

Additionally, during

2024, the Company determined that

one of the procedures was performed by a different physician.

The Company has determined that a loss, comprised of estimated costs to defend the Company against the lawsuits, is probable and that the estimated loss is approximately

$ 1,950,000 .

The Company recorded an estimated loss of

$ 1,450,000 related to the matters during

$ 200,000 related to the matters during

$ 300,000 related to the matters during

During March 2024, the Company was named as a defendant in a number of product liability lawsuits filed under the direction of a single plaintiff’s tort firm alleging off-label use of Renuvion products and the Company’s mismarketing of the same.

2 unchanged sentences

The Company has determined that a loss, comprised of estimated costs to defend the Company against the lawsuits, is probable and currently estimates the range of losses in connection with these matters to be between $ 1,625,000 and $ 1,825,000 .

The Company recorded an estimated loss of $ 1,300,000 related to these matters during 2023.

The Company recorded an estimated loss of $ 1,300,000 related to these matters during 2023 and $ 325,000 related to these matters in 2025.

The Company has also determined that there is a reasonable possibility that there will be an additional loss related to the matters, but the Company is unable to provide an estimate of the range of such additional loss at this time.

These losses are included in accrued product liability claim insurance deductibles at December 31, 2025 and 2024, which is reduced for deductibles paid on the claims.

Purchase Commitments

2 unchanged sentences

Sales to one customer within the OEM segment represented 11 % of sales for the year ended December 31, 2024.

Receivables from two customers within the Advanced Energy segment represented 22 % of trade accounts receivable at December 31, 2023.

There were no other significant sales or receivable concentrations for the years ended December 31, 2025 and 2024 .

APYX MEDICAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

STOCK OPTIONS

1 unchanged sentence

# Approved by

# Approved by December 31,

Stockholder approved plan

1 unchanged sentence

2015 Executive and Employee Stock Option Plan

2,000,000 260,000

2017 Executive and Employee Stock Option Plan

6 unchanged sentences

1,600,000 450,000

On January 15, 2025, the Company granted employees and directors approximately 800,000 options to purchase common shares of the Company's stock at an exercise price of $ 1.42 .

All options granted were pursuant to the plans noted above.

The employee options vest over a period of three years and the directors options vest over a period of one year.

APYX MEDICAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The status of the Company’s stock options is summarized as follows:

5 unchanged sentences

1,587,929 2.26

( 57,000 ) 2.65

Canceled and forfeited

3 unchanged sentences

1,858,000 1.38

( 275,143 ) 2.53

Canceled and forfeited

24 unchanged sentences

Expected term (in years)

Grant date fair value

$ 0.70 - $ 1.47 $ 0.80 - $ 1.87

The Company recognized approximately $ 2,001,000 and $ 4,013,000 in stock-based compensation expense during the years ended December 31, 2025 and 2024 , respectively.

1 unchanged sentence

Aggregate intrinsic value represents the value that would have been received by the holders of in-the-money options had they exercised their options on the last trading day of the year and sold the underlying shares at the closing stock price on such day.

The intrinsic value calculation at December 31, 2024 is based on the $ 1.58 closing stock price of the Company's common stock on December 31, 2024, the last trading day of 2024.

The intrinsic value calculation at

December 31, 2025 is based on the

$ 3.50 closing stock price of the Company's common stock on

December 31, 2025 , the last trading day of

As of December 31, 2025 , there were 7,154,906 stock options outstanding and expected to vest with an aggregate intrinsic value of approximately $ 5,730,000 .

These options have a weighted average exercise price of $ 4.70 and a weighted average remaining contractual term of approximately 6 years.

APYX MEDICAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

As of December 31, 2025 , there were 5,457,024 stock options outstanding and exercisable with an aggregate intrinsic value of approximately $ 2,790,000 .

2 unchanged sentences

Intrinsic value of exercised shares is the fair value of such shares on the date of exercise less the exercise price of the option on the exercise date.

APYX MEDICAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

The total fair value of options granted during the years ended December 31, 2025 and 2024 , was approximately $ 2,030,000 and $ 2,770,000 , respectively.

17 unchanged sentences

The Company’s reportable segments are disclosed as principally organized and managed as two operating segments:

Advanced Energy and OEM.

Surgical Aesthetics, formerly known as Advanced Energy, and OEM.

“Corporate & Other” includes certain unallocated corporate and administrative costs which were not specifically attributed to any reportable segment.

The Advanced Energy segment is comprised primarily of sales of its Helium Plasma Technology products marketed and sold as Renuvion in the cosmetic surgery market.

The Surgical Aesthetics segment is comprised primarily of sales of its Helium Plasma Technology products marketed and sold as Renuvion and the AYON Body Contouring System in the cosmetic surgery market.

Renuvion and J-Plasma offer surgeons a unique ability to provide controlled heat to tissue to achieve their desired results.

These sales consist of electrosurgical generators, single-use handpieces, accessories and related products sold in the cosmetic surgical market.

The AYON Body Contouring System is an FDA-cleared, surgeon-designed body contouring system that combines precision, versatility, and innovation in an all-in- one platform.

The OEM segment is comprised primarily of sales related to the development and contract manufacturing of surgical devices, accessories and handpieces.

2 unchanged sentences

(In thousands)

Advanced Energy

Surgical Aesthetics

Corporate & Other

6 unchanged sentences

19,428 13 14,987 34,428

(Loss) income from operations

Income (loss) from operations

6,686 1,855 ( 14,987 ) ( 6,446 )

3 unchanged sentences

— — ( 5,589 ) ( 5,589 )

Other loss, net

— — ( 161 ) ( 161 )

(Loss) income before income taxes

Other income, net

Income (loss) before income taxes

6,686 1,855 ( 19,376 ) ( 10,835 )

Income tax expense

Net (loss) income

Net income (loss)

6,686 1,855 ( 19,646 ) ( 11,105 )

3 unchanged sentences

(In thousands)

Advanced Energy

Surgical Aesthetics

Corporate & Other

4 unchanged sentences

4,546 — — 4,546

All other expenses

25,657 19 21,519 47,195

Gain on sale-leaseback

All other expenses(i)

26,690 40 16,929 43,659

2 unchanged sentences

Interest income

— — 1,606 1,606

Interest expense

— — ( 5,907 ) ( 5,907 )

Other income, net

Loss on extinguishment of debt

Other loss, net

— — ( 161 ) ( 161 )

2 unchanged sentences

Income tax expense

( 2,432 ) ( 2,432 )

Net (loss) income

( 3,889 ) 1,973 ( 21,643 ) ( 23,559 )

(i) For the Advanced Energy segment, all other expenses includes salaries and related costs, research and development, professional services, including marketing and physician consulting, and other selling, general, and administrative expenses such as travel and entertainment, advertising, trade show fees and meeting and training costs.

(i) For the Surgical Aesthetics segment, all other expenses includes salaries and related costs, research and development, professional services, including marketing and physician consulting, and other selling, general, and administrative expenses such as travel and entertainment, advertising, trade show fees and meeting and training costs.

For the OEM segment, substantially all related expenses are recorded as cost of sales, therefore no significant segment specific operating expenses are incurred.

17 unchanged sentences

APYX MEDICAL CORPORATION

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data