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CLEARWATER, FL — November 11, 2021 - Apyx Medical Corporation (NASDAQ:APYX) (the “Company”), a maker of medical devices and supplies and the developer of Helium Plasma Technology, marketed and sold as Renuvion® in the cosmetic surgery market and J-Plasma® in the hospital surgical market, today reported financial results for its third quarter ended September 30, 2021 and updated its financial outlook for the full year ending December 31, 2021.

•At September 30, 2021, the Company had cash and cash equivalents of $30.9 million, compared to $41.9 million as of December 31, 2020. At September 30, 2021, the Company had working capital of $48.2 million, including expected cash tax refunds of approximately $7.5 million the Company expects to receive during 2021 or 2022 related to the net operating loss carrybacks resulting from the 2020 CARES Act.

“We are excited by our team’s impressive execution during the third quarter, which enabled us to achieve 88% growth year-over-year in sales of our Advanced Energy products. Our Advanced Energy sales growth was driven primarily by strong, global utilization of our Advanced Energy handpieces, with global handpiece sales increasing more than 100% year-over-year. We also saw global Advanced Energy generator sales increase by more than 70% year-over-year, primarily reflecting healthy adoption of our Renuvion® technology in the U.S. cosmetic surgery market.”

Mr. Goodwin continued: “We are raising our 2021 financial outlook today in light of our stronger-than-anticipated performance that we achieved in the third quarter. Looking ahead, our financial outlook continues to reflect our expectations for continued improvement in the global capital equipment environment, coupled with strong utilization trends from our existing customers, during the fourth quarter. We expect to bring 2021 to a strong close as we continue to raise awareness of our innovative Helium Plasma Technology, expand our share of the multi-billion global cosmetic surgery market and enhance the foundation for strong, sustainable growth in the years ahead."


	Three Months Ended September 30,				Increase/Decrease				Nine Months Ended September 30,				Increase/Decrease
(In thousands)	2021		2020		$ Change		% Change		2021		2020		$ Change		% Change


Advanced Energy	$	10,313	$	5,479	$	4,834	88.2	%	$	27,951	$	12,332	$	15,619	126.7	%
OEM	1,518		1,475		43		2.9	%	3,742		3,915		(173)		(4.4)	%
Total	$	11,831	$	6,954	$	4,877	70.1	%	$	31,693	$	16,247	$	15,446	95.1	%


	Three Months Ended September 30,				Increase/Decrease				Nine Months Ended September 30,				Increase/Decrease
(In thousands)	2020		2019		$ Change		% Change		2020		2019		$ Change		% Change

Domestic	$	7,911	$	5,214	$	2,697	51.7	%	$	20,860	$	12,225	$	8,635	70.6	%
International	3,920		1,740		2,180		125.3	%	10,833		4,022		6,811		169.3	%
Total	$	11,831	$	6,954	$	4,877	70.1	%	$	31,693	$	16,247	$	15,446	95.1	%

Total revenue for the three months ended September 30, 2021 increased $4.9 million, or 70%, to $11.8 million, compared to $7.0 million in the prior year period. Advanced Energy segment sales increased $4.8 million, or 88% year-over-year, to $10.3 million, compared to $5.5 million in the prior year period. OEM segment sales increased 3% year-over-year. For the third quarter 2021, revenue in the United States increased $2.7 million, or 52% year-over-year, to $7.9 million, and international revenue increased $2.2 million, or 125% year-over-year, to $3.9 million. In the third quarter of 2021, total revenue growth was primarily driven by increased global utilization-based demand for handpieces and adoption of generators, despite continued headwinds related to the COVID-19 pandemic in certain geographic regions. COVID-19 related headwinds were relatively less severe on a global basis in the third quarter of 2021, compared to the prior year period.

Gross profit for the three months ended September 30, 2021, increased $3.3 million, or 70% year-over-year, to $8.1 million, compared to $4.7 million in the prior year period. Gross margin for the three months ended September 30, 2021, was 68.1%, compared to 67.9% for the same period in 2020. The increase in profit margins for the three months ended September 30, 2021 from the prior year period is primarily attributable to sales mix between the Advanced Energy and OEM segments, partially offset by product and geographic mix within the Advanced Energy segment and higher inbound shipping costs.

Operating expenses for the third quarter of 2021 increased $2.9 million, or 32% year-over-year, to $12.0 million, compared to $9.1 million for the third quarter of 2020. The year-over-year change in operating expenses was driven by a $1.9 million increase in selling, general and administrative expenses, a $0.7 million increase in salaries and related costs, a $0.2 million increase in professional services and a $0.1 million increase in research and development expenses.

Income tax expense for the third quarter of 2021 was $0.1 million, compared to an income tax benefit of $0.7 million for the third quarter of 2020. The year-over-year change in income tax expense (benefit) was primarily due to the net operating loss carryback recognized in the third quarter of 2020, which did not impact income tax expense in the third quarter of 2021.

Net loss attributable to stockholders for third quarter of 2021 was $4.2 million, or $0.12 per share, compared to a net loss of $3.7 million, or $0.11 per share, for the third quarter of 2020. Net loss attributable to stockholders in the third quarter of 2020 included an income tax benefit of $0.7 million.

Total revenue for the nine months ended September 30, 2021 increased $15.4 million, or 95%, to $31.7 million, compared to $16.2 million in the prior year period. Advanced Energy segment sales increased $15.6 million, or 127% year-over-year, to $28.0 million, compared to $12.3 million in the prior year period. OEM segment sales decreased $0.2 million, or 4% year-over-year, to $3.7 million, compared to $3.9 million in the prior year period. For the nine months ended September 30, 2021, revenue in the United States increased $8.6 million, or 71% year-over-year, to $20.9 million, and international revenue increased $6.8 million, or 169% year-over-year, to $10.8 million.

Net loss attributable to stockholders for the nine months ended September 30, 2021 was $13.2 million, or $0.38 per share, compared to a net loss of $10.4 million, or $0.30 per share, for the nine months ended September 30, 2020. Net loss attributable to stockholders for the nine months ended September 30, 2020 included an income tax benefit of $7.1 million.

•Total revenue in the range of $44.0 million to $45.0 million, representing growth of 59% to 62% year-over-year, compared to total revenue of $27.7 million for the year ended December 31, 2020. The Company’s prior guidance range for total revenue was $40.6 million to $42.6 million, representing growth of 46% to 54% year-over-year.

•Advanced Energy revenue in the range of approximately $39.0 million to $40.0 million, representing growth of 76% to 80% year-over-year, compared to Advanced Energy revenue of $22.2 million for the year ended December 31, 2020. The Company’s prior guidance range for Advanced Energy revenue was $36.0 million to $38.0 million, representing growth of 62% to 71% year-over-year.

•Net loss attributable to stockholders in the range of $17.8 million to $17.2 million, compared to net loss attributable to stockholders of $11.9 million for the year ended December 31, 2020. Net loss attributable to stockholders for the year ended December 31, 2020 included an income tax benefit of $7.7 million. The Company’s prior guidance range for net loss attributable to stockholders was $19.3 million to $18.0 million.

Management will host a conference call at 5:00 p.m. Eastern Time on November 11, 2021 to discuss the results of the quarter and to host a question and answer session. To listen to the call by phone, interested parties may dial 877-407-8289 (or 201-689-8341 for international callers) and provide access code 13723897. Participants should ask for the Apyx Medical Corporation Call. A live webcast of the call will be accessible via the Investor Relations section of the Company’s website and at:

A telephonic replay will be available approximately two hours after the end of the call through November 25, 2021. The replay can be accessed by dialing 877-660-6853 for U.S. callers or 201-612-7415 for international callers and using the replay access code: 13723897. The webcast will be archived on the Investor Relations section of the Company’s website.

Apyx Medical Corporation is an advanced energy technology company with a passion for elevating people’s lives through innovative products in the cosmetic and surgical markets. Known for its innovative Helium Plasma Technology, Apyx is solely focused on bringing transformative solutions to the physicians and patients it serves. The Company’s Helium Plasma Technology is marketed and sold as Renuvion® in the cosmetic surgery market and J-Plasma® in the hospital surgical market. Renuvion® offers surgeons and physicians a unique ability to provide controlled heat to the tissue to achieve their desired results. The J-Plasma® system allows surgeons to operate with a high level of precision and virtually eliminating unintended tissue trauma. The Company also leverages its deep expertise and decades of experience in unique waveforms through original equipment manufacturing (OEM) agreements with other medical device manufacturers. For further information about the Company and its products, please refer to the Apyx Medical Corporation website at www.ApyxMedical.com.

Certain matters discussed in this release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.

Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company’s ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this release can be found in the Company’s filings with the Securities and Exchange Commission including the Company’s Report on Form 10-K for the year ended December 31, 2020. For forward-looking statements in this release, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.


	Three Months Ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Sales	$	11,831	$	6,954	$	31,693	$	16,247
Cost of sales	3,775		2,229		10,243		6,444
Gross profit	8,056		4,725		21,450		9,803
Other costs and expenses:
Research and development	1,175		1,047		3,374		3,002
Professional services	2,032		1,835		5,442		5,882
Salaries and related costs	4,206		3,508		12,794		10,258
Selling, general and administrative	4,611		2,706		12,596		8,691


Total other costs and expenses	12,024		9,096		34,206		27,833
Loss from operations	(3,968)		(4,371)		(12,756)		(18,030)
Interest income	2		10		9		233


Interest expense	(3)		(25)		(9)		(39)
Other (loss) income, net	(192)		(63)		(188)		349
Total other (loss) income, net	(193)		(78)		(188)		543
Loss before income taxes	(4,161)		(4,449)		(12,944)		(17,487)
Income tax expense (benefit)	73		(715)		246		(7,112)
Net loss	(4,234)		(3,734)		(13,190)		(10,375)
Net loss attributable to non-controlling interest	(12)		(6)		(21)		(6)
Net loss attributable to stockholders	$	(4,222)	$	(3,728)	$	(13,169)	$	(10,369)

Loss per share
Basic and Diluted	$	(0.12)	$	(0.11)	$	(0.38)	$	(0.30)











Weighted average number of shares outstanding - basic and diluted	34,330		34,216		34,318		34,193


	September 30, 2021 (Unaudited)		December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	30,898	$	41,915


Trade accounts receivable, net of allowance of $360 and $300	11,444		8,399
Income tax receivables	7,654		7,654
Other receivables	873		1,275
Inventories, net of provision for obsolescence of $303 and $388	6,040		4,051


Prepaid expenses and other current assets	2,967		2,795

Total current assets	59,876		66,089
Property and equipment, net	6,412		6,541
Operating lease right-of-use assets	152		237
Finance lease right-of-use assets	274		437






Other assets	1,055		807

Total assets	$	67,769	$	74,111

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	3,044	$	1,511

Accrued expenses and other liabilities	8,324		7,278
Current portion of operating lease liabilities	125		126
Current portion of finance lease liabilities	218		238












Total current liabilities	11,711		9,153





Long-term operating lease liabilities	30		129
Long-term finance lease liabilities	22		183
Contract liabilities	1,200		621
Other liabilities	146		166
Total liabilities	13,109		10,252
EQUITY



Common stock, $0.001 par value; 75,000,000 shares authorized; 34,339,533 issued and outstanding as of September 30, 2021, and 34,289,222 outstanding as of December 31, 2020	34		34
Additional paid-in capital	64,862		61,066
(Accumulated deficit) retained earnings	(10,548)		2,621
Total stockholders' equity	54,348		63,721
Non-controlling interest	312		138
Total equity	54,660		63,859
Total liabilities and equity	$	67,769	$	74,111

We present the following non-GAAP measure because we believe such measure is a useful indicator of our operating performance. Our management uses this non-GAAP measure principally as a measure of our operating performance and believes that this measure is useful to investors because it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We also believe that this measure is useful to our management and investors as a measure of comparative operating performance from period to period.

The Company has presented the following non-GAAP financial measure in this press release: adjusted EBITDA. The Company defines adjusted EBITDA as its reported net income (loss) attributable to stockholders (GAAP) plus income tax expense (benefit), interest, depreciation and amortization, and stock-based compensation expense.


(In thousands)	Three Months Ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Net loss attributable to stockholders	$	(4,222)	$	(3,728)	$	(13,169)	$	(10,369)
Interest income	(2)		(10)		(9)		(233)
Interest expense	3		25		9		39
Income tax expense (benefit)	73		(715)		246		(7,112)
Depreciation and amortization	234		223		674		662
Stock based compensation	1,184		1,063		3,747		3,209
Adjusted EBITDA	$	(2,730)	$	(3,142)	$	(8,502)	$	(13,804)

The following unaudited table presents a reconciliation of net loss attributable to stockholders to Adjusted EBITDA loss for the year ending December 31, 2021. The reconciliation assumes the mid-point of the Adjusted EBITDA loss range and the midpoint of each component of the reconciliation, corresponding to guidance for GAAP net loss attributable to stockholders of $17.8 million to $17.2 million for the year ending December 31, 2021.



APYX MEDICAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)



APYX MEDICAL CORPORATION RECONCILIATION OF GAAP NET LOSS RESULTS TO NON-GAAP ADJUSTED EBITDA (Unaudited)


(In millions)	Year Ending December 31, 2021
Net loss attributable to stockholders	$	(17.5)

Interest income	—

Interest expense	—
Income tax expense	0.3
Depreciation and amortization	0.9
Stock based compensation	5.2


Adjusted EBITDA	$	(11.2)
Note: figures may not sum to totals due to rounding


						EXHIBIT 99.1