Apyx Medical Corp Segments Disclosure

NOTE 19.     GEOGRAPHIC AND SEGMENT INFORMATION 

 

Operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics. In addition to similar economic characteristics, the Company also considers the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to its Chief Operating Decision Maker (“CODM”) for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors. Charles D. Goodwin, CEO, is the Company’s CODM. The CODM uses gross profit to assess segment performance and allocate resources, including employees and capital resources. The Company has included additional financial measures regularly reported to the CODM on a segment basis in the tables below along with a reconciliation between these measures and net loss (income). All other operating expenses are not regularly reported to the CODM on a segment basis. Asset information is not reviewed by the CODM by segment and is not available by segment. Accordingly, the Company has not presented a measure of assets by segment.

 

The Company’s reportable segments are disclosed as principally organized and managed as two operating segments: 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 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. 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 OEM segment is comprised primarily of sales related to the development and contract manufacturing of surgical devices, accessories and handpieces. 

 

Summarized financial information with respect to reportable segments is as follows:

 

		Year Ended December 31, 2025
(In thousands)		Surgical Aesthetics				OEM				Corporate & Other				Total
Sales, net		$	45,332			$	7,512			$	—			$	52,844
Cost of sales			14,156				5,644				—				19,800
Gross profit			31,176				1,868				—				33,044
Commissions			5,062				—				—				5,062
All other expenses(i)			19,428				13				14,987				34,428
Income (loss) from operations			6,686				1,855				(14,987	)			(6,446	)
Interest income			—				—				1,108				1,108
Interest expense			—				—				(5,589	)			(5,589	)
Other income, net			—				—				92				92
Income (loss) before income taxes			6,686				1,855				(19,376	)			(10,835	)
Income tax expense			—				—				270				270
Net income (loss)			6,686				1,855				(19,646	)			(11,105	)

 

		Year Ended December 31, 2024
(In thousands)		Surgical Aesthetics				OEM				Corporate & Other				Total
Sales, net		$	38,606			$	9,496			$	—			$	48,102
Cost of sales			11,259				7,483				—				18,742
Gross profit			27,347				2,013				—				29,360
Commissions			4,546				—				—				4,546
All other expenses(i)			26,690				40				16,929				43,659
(Loss) income from operations			(3,889	)			1,973				(16,929	)			(18,845	)
Interest income			—				—				1,606				1,606
Interest expense			—				—				(5,907	)			(5,907	)
Other loss, net			—				—				(161	)			(161	)
(Loss) income before income taxes			(3,889	)			1,973				(21,391	)			(23,307	)
Income tax expense			—				—				252				252
Net (loss) income			(3,889	)			1,973				(21,643	)			(23,559	)

 

(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. For Corporate & Other, all other expenses includes salaries and related costs, professional services, including legal, accounting and audit fees, investor relations consulting, information technology consulting, board of directors’ stock compensation expense, and general and administrative expenses, such as insurance, building lease costs, depreciation and computer software.

 

International sales in 2025 and 2024, were 26.6% and 29.3% of sales, respectively. Revenue by geographic region, based on the “ship to” location on the invoice are as follows:

 

		Year Ended December 31,
(In thousands)		2025				2024
Sales by Domestic and International
Domestic		$	38,801			$	34,022
International			14,043				14,080
Total		$	52,844			$	48,102

 

Tangible long-lived assets by geographic location are as follows:

 

		Year Ended December 31,
(In thousands)		2025				2024
Long-lived assets by Domestic and International
Domestic		$	5,614			$	5,532
International			1,003				1,206
Total		$	6,617			$	6,738