Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 05, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-12183 | |
Entity Registrant Name | APYX MEDICAL CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 11-2644611 | |
Entity Address, Address Line One | 5115 Ulmerton Road, | |
Entity Address, City or Town | Clearwater | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33760 | |
City Area Code | 727 | |
Local Phone Number | 384-2323 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | APYX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 34,274,771 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0000719135 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 43,539 | $ 58,812 |
Trade accounts receivable, net of allowance of $760 and $273 | 6,154 | 7,987 |
Income tax receivables | 7,238 | 426 |
Other receivables | 1,158 | 1,233 |
Inventories, net of provision for obsolescence of $537 and $392 | 5,416 | 5,068 |
Prepaid expenses and other current assets | 4,159 | 3,207 |
Total current assets | 67,664 | 76,733 |
Property and equipment, net of accumulated depreciation and amortization of $4,677 and $4,403 | 6,348 | 6,618 |
Operating lease right-of-use assets | 266 | 350 |
Finance lease right-of-use assets | 629 | 653 |
Other assets | 508 | 391 |
Total assets | 75,415 | 84,745 |
Current liabilities: | ||
Accounts payable | 2,479 | 2,438 |
Accrued expenses and other liabilities | 6,588 | 9,396 |
Current portion of operating lease liabilities | 118 | 108 |
Current portion of finance lease liabilities | 269 | 229 |
Related party note payable | 140 | 140 |
Total current liabilities | 9,594 | 12,311 |
Long-term operating lease liabilities | 153 | 235 |
Long-term finance lease liabilities | 347 | 421 |
Contract liabilities | 583 | 405 |
Other liabilities | 400 | 114 |
Total liabilities | 11,077 | 13,486 |
EQUITY | ||
Common stock, $0.001 par value; 75,000,000 shares authorized; 34,222,505 issued and outstanding as of September 30, 2020, and 34,312,527 issued and 34,169,952 outstanding as of December 31, 2019 | 34 | 34 |
Additional paid-in capital | 60,014 | 56,708 |
Retained earnings | 4,148 | 14,517 |
Total stockholders' equity | 64,196 | 71,259 |
Non-controlling interest | 142 | 0 |
Total equity | 64,338 | 71,259 |
Total liabilities and equity | $ 75,415 | $ 84,745 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 760 | $ 273 |
Inventories, provision for obsolescence | 537 | 392 |
Accumulated depreciation and amortization | $ 4,677 | $ 4,403 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 34,222,505 | 34,312,527 |
Common stock, shares outstanding (in shares) | 34,222,505 | 34,169,952 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Sales | $ 6,954 | $ 7,575 | $ 16,247 | $ 19,853 |
Cost of sales | 2,229 | 2,281 | 6,444 | 6,322 |
Gross profit | 4,725 | 5,294 | 9,803 | 13,531 |
Other costs and expenses: | ||||
Research and development | 1,047 | 1,016 | 3,002 | 2,634 |
Professional services | 1,835 | 2,039 | 5,882 | 5,818 |
Salaries and related costs | 3,508 | 3,159 | 10,258 | 10,157 |
Selling, general and administrative | 2,706 | 3,836 | 8,691 | 9,830 |
Total other costs and expenses | 9,096 | 10,050 | 27,833 | 28,439 |
Loss from operations | (4,371) | (4,756) | (18,030) | (14,908) |
Interest income | 10 | 327 | 233 | 1,153 |
Interest expense | (25) | 0 | (39) | 0 |
Other (loss) income, net | (63) | 230 | 349 | (265) |
Total other (loss) income, net | (78) | 557 | 543 | 888 |
Loss before income taxes | (4,449) | (4,199) | (17,487) | (14,020) |
Income tax (benefit) expense | (715) | 171 | (7,112) | 253 |
Net loss | (3,734) | (4,370) | (10,375) | (14,273) |
Net loss attributable to non-controlling interest | (6) | 0 | (6) | 0 |
Net loss attributable to Apyx | $ (3,728) | $ (4,370) | $ (10,369) | $ (14,273) |
Earnings (loss) per Share: | ||||
Basic and diluted (in dollars per share) | $ (0.11) | $ (0.13) | $ (0.30) | $ (0.42) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Non-controlling Interest |
Beginning balance (in shares) at Dec. 31, 2018 | 33,705 | ||||
Beginning balance at Dec. 31, 2018 | $ 87,177 | $ 34 | $ 52,920 | $ 34,223 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (14,273) | (14,273) | |||
Options exercised (in shares) | 51 | ||||
Options exercised for cash | 154 | 154 | |||
Stock based compensation | 2,594 | 2,594 | |||
Shares issued on net settlement of stock options (in shares) | 221 | ||||
Shares issued on net settlement of stock options | 0 | ||||
Ending balance (in shares) at Sep. 30, 2019 | 33,977 | ||||
Ending balance at Sep. 30, 2019 | 75,652 | $ 34 | 55,668 | 19,950 | 0 |
Beginning balance (in shares) at Jun. 30, 2019 | 33,921 | ||||
Beginning balance at Jun. 30, 2019 | 79,440 | $ 34 | 55,086 | 24,320 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (4,370) | (4,370) | |||
Options exercised (in shares) | 21 | ||||
Options exercised for cash | 39 | 39 | |||
Stock based compensation | 543 | 543 | |||
Shares issued on net settlement of stock options (in shares) | 35 | ||||
Shares issued on net settlement of stock options | 0 | ||||
Ending balance (in shares) at Sep. 30, 2019 | 33,977 | ||||
Ending balance at Sep. 30, 2019 | 75,652 | $ 34 | 55,668 | 19,950 | 0 |
Beginning balance (in shares) at Dec. 31, 2019 | 34,170 | ||||
Beginning balance at Dec. 31, 2019 | 71,259 | $ 34 | 56,708 | 14,517 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (10,375) | (10,369) | (6) | ||
Contributions from non-controlling interest | 148 | 148 | |||
Options exercised (in shares) | 20 | ||||
Options exercised for cash | 97 | 97 | |||
Stock based compensation | 3,209 | 3,209 | |||
Shares issued on net settlement of stock options (in shares) | 33 | ||||
Shares issued on net settlement of stock options | 0 | ||||
Ending balance (in shares) at Sep. 30, 2020 | 34,223 | ||||
Ending balance at Sep. 30, 2020 | 64,338 | $ 34 | 60,014 | 4,148 | 142 |
Beginning balance (in shares) at Jun. 30, 2020 | 34,202 | ||||
Beginning balance at Jun. 30, 2020 | 66,836 | $ 34 | 58,926 | 7,876 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (3,734) | (3,728) | (6) | ||
Contributions from non-controlling interest | 148 | 148 | |||
Options exercised (in shares) | 10 | ||||
Options exercised for cash | 25 | 25 | |||
Stock based compensation | 1,063 | 1,063 | |||
Shares issued on net settlement of stock options (in shares) | 11 | ||||
Shares issued on net settlement of stock options | 0 | ||||
Ending balance (in shares) at Sep. 30, 2020 | 34,223 | ||||
Ending balance at Sep. 30, 2020 | $ 64,338 | $ 34 | $ 60,014 | $ 4,148 | $ 142 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Net loss | $ (10,375) | $ (14,273) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 662 | 510 |
Provision for inventory obsolescence | 427 | 36 |
Loss on disposal of property and equipment | 0 | 19 |
Stock based compensation | 3,209 | 2,594 |
Net, non cash lease expense | 0 | 2 |
Unrealized gain on short term investments | 0 | (164) |
Provision (benefit) for allowance for doubtful accounts | 486 | (238) |
Changes in operating assets and liabilities: | ||
Trade receivables | 1,389 | (2,397) |
Income tax receivables, prepaid expenses and other assets | (7,793) | (1,202) |
Inventories | (717) | (1,772) |
Accounts payable | 15 | 50 |
Accrued and other liabilities | (2,352) | 1,611 |
Net cash used in operating activities | (15,049) | (15,224) |
Cash flows from investing activities | ||
Purchases of property and equipment | (193) | (1,076) |
Purchases of marketable securities | 0 | (18,884) |
Proceeds from maturities of marketable securities | 0 | 80,726 |
Net cash (used in) provided by investing activities | (193) | 60,766 |
Cash flows from financing activities | ||
Proceeds from stock option exercises | 97 | 154 |
Repayment of finance lease liabilities | (184) | (2) |
Contributions from non-controlling interests | 148 | 0 |
Net cash provided by financing activities | 61 | 152 |
Effect of exchange rates on cash | (92) | (18) |
Net change in cash and cash equivalents | (15,273) | 45,676 |
Cash and cash equivalents, beginning of period | 58,812 | 16,596 |
Cash and cash equivalents, end of period | 43,539 | 62,272 |
Cash paid for: | ||
Interest | 39 | 0 |
Income taxes | 54 | 248 |
Non cash activities: | ||
Right-of-use assets capitalized and lease liabilities recognized upon adoption of Topic 842 | 0 | 212 |
Right-of-use assets capitalized and lease liabilities recognized upon lease remeasurement | 0 | 207 |
Right-of-use assets capitalized and lease liabilities recognized upon execution of lease | 150 | 662 |
Transfer of other assets to property and equipment | 0 | 42 |
Transfer of inventory from property and equipment | $ 10 | $ 264 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Unless the context otherwise indicates, the terms “Company,” “we,” “our,” “us,” “Apyx,” and similar terms refer to Apyx Medical Corporation and its consolidated subsidiaries. We are an advanced energy technology company with a passion for elevating people’s lives through innovative products in the cosmetic and surgical markets. Known for our innovative Helium Plasma Technology, Apyx is solely focused on bringing transformative solutions to the physicians and patients it serves. Our Helium Plasma Technology is marketed and sold as Renuvion® in the cosmetic surgery market and J-Plasma® in the hospital surgical market. Renuvion® offers plastic surgeons, fascial plastic surgeons and cosmetic 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, virtually eliminating unintended tissue trauma. We also leverage our deep expertise and decades of experience in unique waveforms through original equipment manufacturing (OEM) agreements with other medical device manufacturers. In March 2020, the World Health Organization recognized the novel strain of coronavirus ("COVID-19"), as a pandemic. This pandemic has severely restricted the level of economic activity around the world. In response, the governments of many countries, states, cities and other geographic regions have taken preventative or protective actions, such as imposing restrictions on travel and business operations and advising or requiring individuals to limit or forego their time outside of their homes. The long-term impact of the COVID-19 pandemic on our business continues to be highly uncertain and difficult to predict as the environment created by the pandemic is rapidly changing. In late February, we began to experience the effects of the pandemic which have been material and adverse on our business. However, starting late in the second quarter and continuing through the third quarter, we started to see positive indications in our business. We believe the severity of the impact of the COVID-19 pandemic on our business will continue to depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on our customers and suppliers, all of which are uncertain and cannot be predicted. Most of the procedures performed using our Helium Plasma Technology are elective, and as a result many of our customers have been affected by the actions taken by various governmental authorities requiring non-essential businesses to shut down temporarily. As these shut-downs have begun to be reversed, we have started to see an increase in demand for elective cosmetic and plastic surgery procedures, resulting in higher than expected revenues in our Advanced Energy segment. In international markets, a greater portion of these procedures are performed in a hospital, and it is less certain when elective procedures will fully return to normal.. While we experienced a significant decline in sales towards the end of our first fiscal quarter, we began to see an increase in sales towards the end of our second fiscal quarter, which continued through the third quarter, as local jurisdictions started to re-open. As cases have started to increase again, it is unknown whether these trends will continue. The full extent to which the COVID-19 pandemic may materially and adversely impact the Company's future financial position, liquidity, or results of operations remains uncertain. The accompanying unaudited condensed consolidated financial statements have been prepared based upon SEC rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, please refer to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019. These condensed consolidated financial statements reflect all adjustments that are necessary for a fair presentation of results of consolidated operations and financial condition for the interim periods shown, including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. |
CHANGE IN ACCOUNTING POLICY
CHANGE IN ACCOUNTING POLICY | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Change in Accounting Policy | CHANGE IN ACCOUNTING POLICY During 2019, we began granting stock option awards deeper within the organization. We do not have sufficient experience with grants to these employees and we have experienced challenges in developing reliable forfeiture estimates at the grant date. Accounting for revising the forfeiture estimates has been burdensome. Accounting Standards Codification 718, Compensation-Stock Compensation, prescribes two methods for accounting for forfeitures on stock option awards, either the estimation method utilized by the Company previously, or by accounting for forfeitures as they occur. On January 1, 2020, we made an accounting policy election change and began accounting for forfeitures on stock option awards using actual forfeitures. This accounting policy election change was made on a retrospective basis. However, the changes to the current and prior periods were determined to be immaterial and there have been no changes to previously reported results as a result of the change. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326). The update changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, contract assets, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking expected loss model that will result in the earlier recognition of allowance for losses. This update, as originally issued, was effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. In November 2019, the FASB issued ASU 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Effective Dates , which deferred the effective dates of these standards for Smaller Reporting Companies until fiscal years beginning after December 15, 2022. The Company currently expects to continue to qualify as a Smaller Reporting Company, based upon the current SEC definition, and as a result, will be utilizing the deferred elective date. While we are in the process of determining the effects of the adoption of the standard on the consolidated financial statements, we do not expect the impact to be material. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The purpose of this ASU is to reduce the cost and complexity of evaluating goodwill for impairment. It eliminates the need for entities to calculate the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Under this ASU, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the ASU on January 1, 2020. The amendment did not have an impact on our consolidated financial condition or results of operations. No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our consolidated financial statements or disclosures. |
DISPOSAL OF BUSINESS
DISPOSAL OF BUSINESS | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISPOSAL OF BUSINESS | DISPOSAL OF BUSINESS On August 30, 2018, we closed on a definitive asset purchase agreement (the "Asset Purchase Agreement") with Specialty Surgical Instrumentation Inc., a Tennessee Corporation and wholly-owned subsidiary of Symmetry Surgical Inc. (“Symmetry”), pursuant to which the Company divested and sold the Company's electrosurgical "Core" business segment and related intellectual property, including the Bovie® brand and trademarks, to Symmetry for gross proceeds of $97 million in cash. In connection with the Asset Purchase Agreement, we entered into an Electro Surgical Disposables and Accessories, Cauteries and Other Products Supply Agreement with Symmetry for a four-year term, whereby we will manufacture certain Core products and sell them to Symmetry at agreed upon prices. Any activity resulting from this agreement is netted and reported in our Condensed Consolidated Statements of Operations as other income or (loss). Core activity for the three months ended September 30, 2020 amounted to $1.8 million with cost of sales equivalents of $1.6 million and related other expenses of $0.3 million for net other (loss) of $0.1 million. Core activity for the three months ended September 30, 2019 amounted to $2.5 million with cost of sales equivalents of $2.2 million and related other expenses of $0.1 million for net other income of $0.2 million. Core activity for the nine months ended September 30, 2020 amounted to $6.9 million with cost of sales equivalents of $6.1 million and related other expenses of $0.5 million for net other income of $0.3 million. Core activity for the nine months ended September 30, 2019 amounted to $6.9 million with cost of sales equivalents of $6.6 million and related other expenses of $0.2 million for net other income of $0.1 million. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | Inventories are stated at the lower of cost or net realizable values. Cost is determined on a first in, first out basis. Finished goods and work-in-process inventories include material, labor and overhead costs. Factory overhead costs are primarily allocated to inventory manufactured in-house based upon direct labor hours. Inventories consisted of the following: (In thousands) September 30, December 31, Raw materials $ 2,487 $ 2,935 Work in process 1,522 1,209 Finished goods 1,944 1,316 Gross inventories 5,953 5,460 Less: provision for obsolescence (537) (392) Inventories, net $ 5,416 $ 5,068 During the second quarter of 2020, we reassessed our forecasted product mix due to COVID-19, increased availability of our newer handpiece designs, and earlier than expected completion of product registrations in some of our foreign markets. As a result, certain products were reduced to a lower carrying value, and some components were also written down as we determined to cease further production on these older models. The total impairment was approximately $400,000 and is included in cost of sales in the accompanying consolidated statement of operations for the nine months ended September 30, 2020. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: (in thousands) September 30, December 31, Accrued payroll $ 497 $ 694 Accrued bonuses — 1,306 Accrued commissions 620 877 Accrued product warranties 471 452 Accrued insurance 632 1,170 Accrued professional fees 744 1,383 Joint and several payroll liability 1,045 1,045 Uncertain tax positions 1,616 1,491 Other accrued expenses and current liabilities 963 978 Total accrued expenses and other current liabilities $ 6,588 $ 9,396 |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 9 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTEREST | NON-CONTROLLING INTEREST In late 2019, we executed a joint venture agreement with our Chinese supplier ("China JV"). The agreement requires the Company to make a capital contribution into the newly formed entity of approximately $360,000, of which approximately $154,000 was contributed during the three months ended September 30, 2020. As of the date of these condensed consolidated financial statements, the joint venture has not commenced principal operations. Changes in our ownership interest in our 51% owned China JV were as follows: (In thousands) Three Months Ended Nine Months Ended Beginning interest in China JV $ — $ — Contributions 154 154 Net loss attributable to Apyx (6) (6) Ending interest in China JV $ 148 $ 148 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE We compute basic earnings per share (“basic EPS”) by dividing the net income or loss by the weighted average number of common shares outstanding for the reporting period adjusted for other units required to be included in basic EPS. Diluted earnings per share (“diluted EPS”) gives effect to all dilutive potential shares outstanding. As we are in a net loss position for all periods presented, all potential shares outstanding are anti-dilutive. The following table provides the computation of basic and diluted earnings per share. Three Months Ended Nine Months Ended (in thousands, except per share data) 2020 2019 2020 2019 Numerator: Net loss attributable to Apyx $ (3,728) $ (4,370) $ (10,369) $ (14,273) Denominator: Weighted average shares outstanding - basic and diluted 34,216 34,078 34,193 34,039 Earnings (loss) per share: Basic and diluted $ (0.11) $ (0.13) $ (0.30) $ (0.42) Anti-dilutive instruments excluded from diluted loss per common share: Restricted stock 45 90 45 90 Options 5,028 4,060 5,028 4,060 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Under our stock option plans, our board of directors may grant restricted stock and options to purchase common shares to our employees, officers, directors and consultants. We account for stock options in accordance with FASB ASC Topic 718, Compensation - Stock Compensation , with stock-based compensation expense recognized over the vesting period based on the fair value on the grant date utilizing a trinomial lattice model through 2018 and the Black Scholes model for grants in 2019 and 2020, both of which include a number of estimates that affect the grant date fair value and the amount of expense to recognize. We recognized approximately $1,063,000 and $3,209,000, respectively, in stock-based compensation expense during the three and nine months ended September 30, 2020, as compared with $543,000 and $2,594,000, respectively, for the three and nine months ended September 30, 2019. Stock option activity is summarized as follows: Number of options Weighted average exercise price Outstanding at December 31, 2019 3,966,858 $ 4.67 Granted 1,376,900 7.94 Exercised (81,131) 3.03 Canceled and forfeited (234,600) 7.57 Outstanding at September 30, 2020 5,028,027 $ 5.45 We allow stock option holders to exercise stock-based awards by surrendering stock-based awards with an intrinsic value equal to the cumulative exercise price of stock-based awards being exercised, referred to as net settlements. These surrenders are included in stock options exercised in the options rollforward above. For the three months ended September 30, 2020 and 2019, respectively, we received 16,140 and 26,572 options as payment in the exercise of 10,610 and 34,928 options. For the nine months ended September 30, 2020 and 2019, respectively, we received 29,149 and 118,170 options as payment in the exercise of 32,637 and 220,879 options. Common shares required to be issued upon the exercise of stock options would be issued from our authorized and unissued shares. We calculated the grant date fair value of options granted in 2020 ("2020 Grants") utilizing a Black Scholes model with an expected life calculated via the simplified method. 2020 Grants Strike price $4.98 - $ 8.18 Risk-free rate 0.3% - 1.7 % Expected dividend yield — Expected volatility 65.9% - 70.1 % Expected term (in years) 6 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On March 27, 2020, the U.S. government enacted the CARES Act to provide relief from COVID-19. The CARES Act includes a provision that allows companies to carryback net operating losses (NOL’s) generated in the period 2018 through 2020 to prior years. In conjunction with the disposition of the Core business in 2018, we generated a significant amount of taxable income in 2018. Subsequent to this, we generated net losses in 2019 and through the first three quarters of 2020. For the net losses generated in 2019, we previously recorded a full valuation allowance on the deferred tax assets associated with our NOL carryforwards due to realization of the NOL not being probable under then existing tax law. The CARES Act makes these assets realizable, and as of the date of the CARES Act, we have recognized an income tax benefit of approximately $3.7 million associated with the release of the valuation allowance on our Federal NOL carryforward related to 2019. We also recognized income tax benefits of approximately $0.8 million and $3.3 million, related to our loss before income taxes for the three and nine months ended September 30, 2020, respectively. There are approximately $2.4 million of 2018 Federal income tax payments available to offset against any other 2020 losses that may be incurred. Our income tax (benefit) expense was approximately $(715,000) and $171,000 with an effective tax rate of 16.1% and (4.1)% for the three months ended September 30, 2020 and 2019, respectively. Our income tax (benefit) expense was approximately $(7,112,000) and $253,000 with an effective tax rate of 40.7% and (1.8)% for the nine months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2020, the effective rate differs from the statutory rate primarily due to the release of the valuation allowance on our NOL carryforward from 2019. For the three months ended September 30, 2020, and the three and nine months ended September 30, 2019, the effective rate differs from the statutory rate primarily due to interest and penalties on our uncertain tax positions. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation The medical device industry is characterized by frequent claims and litigation, and we are and may become subject to various claims, lawsuits and proceedings in the ordinary course of our business. Such claims may include claims by current or former employees, distributors and competitors, claims concerning the marketing and promotion of our products and product liability claims. We are involved in a number of legal actions relating to the use of our Helium Plasma technology. The outcomes of these legal actions are not within our complete control and may not be known for prolonged periods of time. We believe that such claims are adequately covered by insurance; however, in the case of one of our carriers, we are in a dispute regarding the total level of coverage available. Notwithstanding the foregoing, in the opinion of management, the Company has meritorious defenses and such claims are not expected, individually or in the aggregate, to result in a material, adverse effect on our financial condition. However, in the event that damages exceed the aggregate coverage limits of our policies or if our insurance carriers disclaim coverage, we believe it is possible that costs associated with these claims could have a material adverse impact on our consolidated results of operations, financial position or cash flows. On April 17, 2019, a complaint (the “Complaint”) was filed in the United States District Court for the Middle District of Florida, against the Company and Charles D. Goodwin, the Company’s President and Chief Executive Officer and a member of the Company’s Board of Directors, alleging certain violations of the Securities Exchange Act of 1934, as amended. On July 16, 2019, the Court appointed lead plaintiff for the putative class and approved the lead plaintiff’s selection of counsel. On September 3, 2019, lead plaintiff filed an amended complaint (the “Amended Complaint”) with the Court. The Amended Complaint seeks class action status on behalf of all persons and entities that acquired the Company’s securities between December 21, 2018 and April 1, 2019, and alleges violations by the Company and Goodwin of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended and Rule 10b-5 thereunder, primarily related to certain public statements concerning the Premarket Notification 510(k) submission made to the US Food and Drug Administration for a new indication for the Company’s J-Plasma® technology for use in dermal resurfacing procedures. On October 3, 2019, defendants filed a motion to dismiss the Amended Complaint, and on March 11, 2020, the Court denied that motion. On July 10, 2020, the parties executed a settlement agreement, which was subject to Court approval. The Court preliminarily approved the settlement on July 21, 2020. The settlement agreement provides for the dismissal of the action with prejudice. On November 6, 2020, the Court issued its final order approving the settlement and dismissing the action and all claims contained in the Amended Complaint with prejudice. At September 30, 2020, we have settled and fully paid all obligations related to this matter. We accrue a liability in our consolidated financial statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is recorded. If a loss is reasonably possible, but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the consolidated financial statements. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded, actual results may differ from these estimates. Purchase Commitments At September 30, 2020, we had purchase commitments totaling approximately $1,800,000, substantially all of which is expected to be purchased within the next six months. China Joint Venture Our agreement in the China joint venture requires the Company to make a capital contribution into the newly formed entity of $357,000. As of the date of these consolidated financial statements, approximately $203,000 of our capital commitment remains to be funded. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Several relatives of Nikolay Shilev, Apyx Bulgaria’s Managing Director, are considered related parties. Teodora Shileva, Mr. Shilev’s spouse, is an employee of the Company working in the accounting department. Antoaneta Dimitrova Shileva-Toromanova, Mr. Shilev’s sister, is the Manager of Production and Human Resources. Svetoslav Shilev, Mr. Shilev’s son, is an engineer in the quality assurance department. In addition, as part of the purchase of the Bulgaria manufacturing facility, Mr. Shilev was issued a note payable for $140,000 to be paid 5 years after the original purchase date, which came due in October 2020. The note was paid in full on October 20, 2020. The partner in our China joint venture is also a supplier of the Company. During the three and nine months ended September 30, 2020, we made purchases from this supplier of approximately $410,000 and $1,250,000, respectively. At September 30, 2020, we owed this supplier approximately $123,000. |
GEOGRAPHIC AND SEGMENT INFORMAT
GEOGRAPHIC AND SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC AND SEGMENT INFORMATION | GEOGRAPHIC AND SEGMENT INFORMATION Operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics. In addition to similar economic characteristics, we also consider the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to our chief operating decision maker for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors. Asset information is not reviewed by the chief operating decision maker by segment and is not available by segment, accordingly, we have not presented a measure of assets by segment. Our reportable segments are principally organized and managed as two operating segments: Advanced Energy and OEM. "Corporate & Other" includes certain unallocated corporate and administrative costs which were not specifically attributed to any reportable segment. The OEM segment is primarily development and manufacturing contract and product driven, all related expenses are recorded as cost of sales, therefore no segment specific operating expenses are incurred. Summarized financial information with respect to reportable segments is as follows: Three Months Ended September 30, 2020 (In thousands) Advanced Energy OEM Corporate & Other Total Sales $ 5,479 $ 1,475 $ — $ 6,954 Income (loss) from operations (1,095) 556 (3,832) (4,371) Interest income — — 10 10 Interest expense — — (25) (25) Other loss, net — — (63) (63) Income tax benefit — — (715) (715) Three Months Ended September 30, 2019 (In thousands) Advanced Energy OEM Corporate & Other Total Sales $ 6,094 $ 1,481 $ — $ 7,575 Income (loss) from operations (1,357) 268 (3,667) (4,756) Interest income — — 327 327 Other income, net — — 230 230 Income tax expense — — 171 171 Nine Months Ended September 30, 2020 (In thousands) Advanced Energy OEM Corporate & Other Total Sales $ 12,332 $ 3,915 $ — $ 16,247 Income (loss) from operations (8,371) 1,387 (11,046) (18,030) Interest income — — 233 233 Interest expense — — (39) (39) Other income, net — — 349 349 Income tax benefit — — (7,112) (7,112) Nine Months Ended September 30, 2019 (In thousands) Advanced Energy OEM Corporate & Other Total Sales $ 15,815 $ 4,038 $ — $ 19,853 Income (loss) from operations (5,653) 995 (10,250) (14,908) Interest income — — 1,153 1,153 Other loss, net — — (265) (265) Income tax expense — — 253 253 International sales represented approximately 25.0% and 24.8% of total revenues for the three and nine months ended September 30, 2020, respectively, as compared with 26.7% and 29.5% of total revenues for the same prior year period. Substantially all of our sales are denominated in U.S. dollars. Revenue by geographic region, based on the customer's “ship to” location on the invoice, are as follows: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Sales by Domestic and International Domestic $ 5,214 $ 5,552 $ 12,225 $ 14,002 International 1,740 2,023 4,022 5,851 Total $ 6,954 $ 7,575 $ 16,247 $ 19,853 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Share based compensation | During 2019, we began granting stock option awards deeper within the organization. We do not have sufficient experience with grants to these employees and we have experienced challenges in developing reliable forfeiture estimates at the grant date. Accounting for revising the forfeiture estimates has been burdensome. Accounting Standards Codification 718, Compensation-Stock Compensation, prescribes two methods for accounting for forfeitures on stock option awards, either the estimation method utilized by the Company previously, or by accounting for forfeitures as they occur. On January 1, 2020, we made an accounting policy election change and began accounting for forfeitures on stock option awards using actual forfeitures. This accounting policy election change was made on a retrospective basis. However, the changes to the current and prior periods were determined to be immaterial and there have been no changes to previously reported results as a result of the change. |
Recent Accounting Pronouncements | In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326). The update changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, contract assets, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking expected loss model that will result in the earlier recognition of allowance for losses. This update, as originally issued, was effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. In November 2019, the FASB issued ASU 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Effective Dates , which deferred the effective dates of these standards for Smaller Reporting Companies until fiscal years beginning after December 15, 2022. The Company currently expects to continue to qualify as a Smaller Reporting Company, based upon the current SEC definition, and as a result, will be utilizing the deferred elective date. While we are in the process of determining the effects of the adoption of the standard on the consolidated financial statements, we do not expect the impact to be material. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The purpose of this ASU is to reduce the cost and complexity of evaluating goodwill for impairment. It eliminates the need for entities to calculate the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Under this ASU, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the ASU on January 1, 2020. The amendment did not have an impact on our consolidated financial condition or results of operations. No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our consolidated financial statements or disclosures. |
Inventories | Inventories are stated at the lower of cost or net realizable values. Cost is determined on a first in, first out basis. Finished goods and work-in-process inventories include material, labor and overhead costs. Factory overhead costs are primarily allocated to inventory manufactured in-house based upon direct labor hours. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories consisted of the following: (In thousands) September 30, December 31, Raw materials $ 2,487 $ 2,935 Work in process 1,522 1,209 Finished goods 1,944 1,316 Gross inventories 5,953 5,460 Less: provision for obsolescence (537) (392) Inventories, net $ 5,416 $ 5,068 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: (in thousands) September 30, December 31, Accrued payroll $ 497 $ 694 Accrued bonuses — 1,306 Accrued commissions 620 877 Accrued product warranties 471 452 Accrued insurance 632 1,170 Accrued professional fees 744 1,383 Joint and several payroll liability 1,045 1,045 Uncertain tax positions 1,616 1,491 Other accrued expenses and current liabilities 963 978 Total accrued expenses and other current liabilities $ 6,588 $ 9,396 |
NON-CONTROLLING INTEREST (Table
NON-CONTROLLING INTEREST (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | Changes in our ownership interest in our 51% owned China JV were as follows: (In thousands) Three Months Ended Nine Months Ended Beginning interest in China JV $ — $ — Contributions 154 154 Net loss attributable to Apyx (6) (6) Ending interest in China JV $ 148 $ 148 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings (loss) per share | The following table provides the computation of basic and diluted earnings per share. Three Months Ended Nine Months Ended (in thousands, except per share data) 2020 2019 2020 2019 Numerator: Net loss attributable to Apyx $ (3,728) $ (4,370) $ (10,369) $ (14,273) Denominator: Weighted average shares outstanding - basic and diluted 34,216 34,078 34,193 34,039 Earnings (loss) per share: Basic and diluted $ (0.11) $ (0.13) $ (0.30) $ (0.42) Anti-dilutive instruments excluded from diluted loss per common share: Restricted stock 45 90 45 90 Options 5,028 4,060 5,028 4,060 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of stock options and stock awards | Stock option activity is summarized as follows: Number of options Weighted average exercise price Outstanding at December 31, 2019 3,966,858 $ 4.67 Granted 1,376,900 7.94 Exercised (81,131) 3.03 Canceled and forfeited (234,600) 7.57 Outstanding at September 30, 2020 5,028,027 $ 5.45 |
Schedule of option fair value assumptions | We calculated the grant date fair value of options granted in 2020 ("2020 Grants") utilizing a Black Scholes model with an expected life calculated via the simplified method. 2020 Grants Strike price $4.98 - $ 8.18 Risk-free rate 0.3% - 1.7 % Expected dividend yield — Expected volatility 65.9% - 70.1 % Expected term (in years) 6 |
GEOGRAPHIC AND SEGMENT INFORM_2
GEOGRAPHIC AND SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of reporting information by segment | Summarized financial information with respect to reportable segments is as follows: Three Months Ended September 30, 2020 (In thousands) Advanced Energy OEM Corporate & Other Total Sales $ 5,479 $ 1,475 $ — $ 6,954 Income (loss) from operations (1,095) 556 (3,832) (4,371) Interest income — — 10 10 Interest expense — — (25) (25) Other loss, net — — (63) (63) Income tax benefit — — (715) (715) Three Months Ended September 30, 2019 (In thousands) Advanced Energy OEM Corporate & Other Total Sales $ 6,094 $ 1,481 $ — $ 7,575 Income (loss) from operations (1,357) 268 (3,667) (4,756) Interest income — — 327 327 Other income, net — — 230 230 Income tax expense — — 171 171 Nine Months Ended September 30, 2020 (In thousands) Advanced Energy OEM Corporate & Other Total Sales $ 12,332 $ 3,915 $ — $ 16,247 Income (loss) from operations (8,371) 1,387 (11,046) (18,030) Interest income — — 233 233 Interest expense — — (39) (39) Other income, net — — 349 349 Income tax benefit — — (7,112) (7,112) Nine Months Ended September 30, 2019 (In thousands) Advanced Energy OEM Corporate & Other Total Sales $ 15,815 $ 4,038 $ — $ 19,853 Income (loss) from operations (5,653) 995 (10,250) (14,908) Interest income — — 1,153 1,153 Other loss, net — — (265) (265) Income tax expense — — 253 253 |
Schedule of revenue by geographic area | Revenue by geographic region, based on the customer's “ship to” location on the invoice, are as follows: Three Months Ended Nine Months Ended (In thousands) 2020 2019 2020 2019 Sales by Domestic and International Domestic $ 5,214 $ 5,552 $ 12,225 $ 14,002 International 1,740 2,023 4,022 5,851 Total $ 6,954 $ 7,575 $ 16,247 $ 19,853 |
DISPOSAL OF BUSINESS (Details)
DISPOSAL OF BUSINESS (Details) - USD ($) $ in Millions | Aug. 30, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from the disposition of Core business | $ 97 | ||||
Operating expenses | $ 0.1 | ||||
Net other income (loss) | $ 0.3 | ||||
Symmetry Surgical Inc. | Electro Surgical Disposables and Accessories, Cauteries and Other Products Supply Agreement | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Asset purchase agreement, term | 4 years | ||||
Sales | $ 1.8 | 2.5 | 6.9 | $ 6.9 | |
Cost of sales | 1.6 | 2.2 | 6.1 | 6.6 | |
Operating expenses | 0.3 | $ 0.5 | 0.2 | ||
Net other income (loss) | $ (0.1) | $ 0.2 | $ 0.1 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,487 | $ 2,935 |
Work in process | 1,522 | 1,209 |
Finished goods | 1,944 | 1,316 |
Gross inventories | 5,953 | 5,460 |
Less: provision for obsolescence | (537) | (392) |
Inventories, net | $ 5,416 | $ 5,068 |
INVENTORIES - Narrative (Detail
INVENTORIES - Narrative (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Inventory Disclosure [Abstract] | |
Impairment of inventory | $ 400 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued payroll | $ 497 | $ 694 |
Accrued bonuses | 0 | 1,306 |
Accrued commissions | 620 | 877 |
Accrued product warranties | 471 | 452 |
Accrued insurance | 632 | 1,170 |
Accrued professional fees | 744 | 1,383 |
Joint and several payroll liability | 1,045 | 1,045 |
Uncertain tax positions | 1,616 | 1,491 |
Other accrued expenses and current liabilities | 963 | 978 |
Total accrued expenses and other current liabilities | $ 6,588 | $ 9,396 |
NON-CONTROLLING INTEREST - Narr
NON-CONTROLLING INTEREST - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Noncontrolling Interest [Line Items] | |||
Required capital contribution | $ 357 | $ 357 | $ 360 |
Contributions from non-controlling interest | 148 | 148 | |
Corporate Joint Venture | |||
Noncontrolling Interest [Line Items] | |||
Contributions from non-controlling interest | $ 154 | $ 154 |
NON-CONTROLLING INTEREST - Roll
NON-CONTROLLING INTEREST - Rollforward of Joint Venture (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning interest in China JV | $ 0 | |||
Contributions | $ 148 | 148 | ||
Net loss attributable to Apyx | (6) | $ 0 | (6) | $ 0 |
Ending interest in China JV | $ 142 | $ 142 | ||
Chinese Supplier | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership interest | 51.00% | 51.00% | ||
Corporate Joint Venture | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning interest in China JV | $ 0 | $ 0 | ||
Contributions | 154 | 154 | ||
Net loss attributable to Apyx | (6) | (6) | ||
Ending interest in China JV | $ 148 | $ 148 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||
Net loss attributable to Apyx | $ (3,728) | $ (4,370) | $ (10,369) | $ (14,273) |
Denominator: | ||||
Weighted average shares outstanding - basic and diluted (in shares) | 34,216 | 34,078 | 34,193 | 34,039 |
Earnings (loss) per share: | ||||
Basic and diluted (in dollars per share) | $ (0.11) | $ (0.13) | $ (0.30) | $ (0.42) |
Restricted stock | ||||
Anti-dilutive instruments excluded from diluted loss per common share: | ||||
Anti-dilutive instruments (in shares) | 45 | 90 | 45 | 90 |
Options | ||||
Anti-dilutive instruments excluded from diluted loss per common share: | ||||
Anti-dilutive instruments (in shares) | 5,028 | 4,060 | 5,028 | 4,060 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation | $ 1,063 | $ 3,209 | $ 543 | $ 2,594 |
Stock swaps equity instruments received (in shares) | 16,140 | 26,572 | 29,149 | 118,170 |
Stock swaps (in shares) | 10,610 | 34,928 | 32,637 | 220,879 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Stock Options (Details) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Number of options | |
Outstanding, beginning of period (in shares) | shares | 3,966,858 |
Granted (in shares) | shares | 1,376,900 |
Exercised (in shares) | shares | (81,131) |
Canceled and forfeited (in shares) | shares | (234,600) |
Outstanding, end of period (in shares) | shares | 5,028,027 |
Weighted average exercise price | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 4.67 |
Granted (in dollars per share) | $ / shares | 7.94 |
Exercised (in dollars per share) | $ / shares | 3.03 |
Canceled and forfeited (in dollars per shares) | $ / shares | 7.57 |
Outstanding, end of period (in dollars per share) | $ / shares | $ 5.45 |
STOCK-BASED COMPENSATION - Fair
STOCK-BASED COMPENSATION - Fair Value Assumptions (Details) | 9 Months Ended |
Sep. 30, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Strike price (in dollars per share) | $ 7.94 |
Expected dividend yield | 0.00% |
Expected term (in years) | 6 years |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Strike price (in dollars per share) | $ 4.98 |
Risk-free rate | 0.30% |
Expected volatility | 65.90% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Strike price (in dollars per share) | $ 8.18 |
Risk-free rate | 1.70% |
Expected volatility | 70.10% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Release of valuation allowance | $ 3,700 | |||
Income tax benefits, related to current period net loss before income taxes | $ 800 | 3,300 | ||
Federal income tax payments available to offset current period losses | 2,400 | |||
Income tax expense (benefit) | $ (715) | $ 171 | $ (7,112) | $ 253 |
Effective income tax rate, percent | 16.10% | (4.10%) | 40.70% | (1.80%) |
Unrecognized tax benefits | $ 1,313 | $ 1,313 | ||
Accrued interest and penalties | 300 | 300 | ||
Interest and penalties included in income tax expense | 43 | 125 | ||
Uncertain tax positions that would impact effective tax rate | $ 1,616 | $ 1,616 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Other Commitments [Line Items] | ||
Purchase obligation | $ 1,800 | |
Required capital contribution | 357 | $ 360 |
Corporate Joint Venture | ||
Other Commitments [Line Items] | ||
Remaining payments to acquire interest in joint venture | $ 203 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | |
Director | Bulgaria Manufacturing Plant Purchase | ||
Related Party Transaction [Line Items] | ||
Notes payable | $ 140 | $ 140 |
Term of payment due | 5 years | |
Co-venturer | ||
Related Party Transaction [Line Items] | ||
Purchases from related party | 410 | $ 1,250 |
Due to related parties | $ 123 | $ 123 |
GEOGRAPHIC AND SEGMENT INFORM_3
GEOGRAPHIC AND SEGMENT INFORMATION - Narrative (Details) - segment | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting [Abstract] | ||||
Number of operating segments | 2 | |||
International sales, percent of total revenue | 25.00% | 26.70% | 24.80% | 29.50% |
GEOGRAPHIC AND SEGMENT INFORM_4
GEOGRAPHIC AND SEGMENT INFORMATION - Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 6,954 | $ 7,575 | $ 16,247 | $ 19,853 |
Income (loss) from operations | (4,371) | (4,756) | (18,030) | (14,908) |
Interest income | 10 | 327 | 233 | 1,153 |
Interest expense | (25) | 0 | (39) | 0 |
Other income (loss), net | (63) | 230 | 349 | (265) |
Income tax (benefit) expense | (715) | 171 | (7,112) | 253 |
Operating Segments | Advanced Energy | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 5,479 | 6,094 | 12,332 | 15,815 |
Income (loss) from operations | (1,095) | (1,357) | (8,371) | (5,653) |
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | ||
Other income (loss), net | 0 | 0 | 0 | 0 |
Income tax (benefit) expense | 0 | 0 | 0 | 0 |
Operating Segments | OEM | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,475 | 1,481 | 3,915 | 4,038 |
Income (loss) from operations | 556 | 268 | 1,387 | 995 |
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | ||
Other income (loss), net | 0 | 0 | 0 | 0 |
Income tax (benefit) expense | 0 | 0 | 0 | 0 |
Corporate & Other | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Income (loss) from operations | (3,832) | (3,667) | (11,046) | (10,250) |
Interest income | 10 | 327 | 233 | 1,153 |
Interest expense | (25) | (39) | ||
Other income (loss), net | (63) | 230 | 349 | (265) |
Income tax (benefit) expense | $ (715) | $ 171 | $ (7,112) | $ 253 |
GEOGRAPHIC AND SEGMENT INFORM_5
GEOGRAPHIC AND SEGMENT INFORMATION - Geographic (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 6,954 | $ 7,575 | $ 16,247 | $ 19,853 |
Domestic | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 5,214 | 5,552 | 12,225 | 14,002 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Sales | $ 1,740 | $ 2,023 | $ 4,022 | $ 5,851 |