Apyx Medical Corporation Common Stock Canaccord Genuity's 46th Annual Growth Conference

Thank you, Caitlin. Appreciate it. Thanks for having us here. Thank you everybody for taking the time out to listen to what we have to say here today. I appreciate it a lot. There are some cautionary statements that Caitlin talked about. I am not going to read any of them, but I will show you them just in case you are interested. What is Apyx Medical? Apyx Medical, we are looking to be the leader in surgical aesthetics, and we will talk a little bit today about why we think surgical aesthetics is important, impactful, and is going to be a huge growth area for aesthetics for many years to come. We have a couple technologies that are on the surgical space that are minimally invasive for body contouring. We will talk a little bit about that.

We will talk about how this market has been totally reshaped and totally disrupted, if you will, by the GLP-1 drugs and why we think that we are in an incredible position to be able to take advantage of some of the side effects of the GLP-1 drugs. Renuvion is the only FDA-approved device for skin tightening for underneath the skin, and we are proud to have that. In May of 2025, we launched the AYON Body Contouring System, which we will go into a little bit later, and that is going to be a huge driver of growth for the company for many years to come. We just now received the last piece of that.

We received just this May, we received 510(k) clearance for the power liposuction hand piece, which is incredibly significant for body contouring because it is the part that removes the fat and puts the fat back in. That is obviously impactful. When you look at what is going on in the industry, the industry has really changed a lot over the last two years, and as I mentioned before, it is because of the GLP-1 drugs. For a while, it was a huge headwind for the industry until people could figure things out, and now it is going to be a tailwind for many years to come. In fact, I believe that the next decade is probably going to be the best decade that plastic surgeons have ever seen in their careers for treating these patients.

One of the main reasons for that is a study was done by McKinsey & Company here not that long ago that talked about 63% of the patients that are on GLP-1 drugs are new to aesthetics. It makes a ton of sense because if you had a BMI before of above 36 and you went to see a plastic surgeon for a body contouring procedure, what they would tell you was to go lose weight and come back. Unfortunately, at the time, most of those patients never lost the weight and never came back. Obviously, now the doctor can prescribe GLP-1 medication. The patient can go lose weight and then come back and get their body contoured. So it is not surprising when I see a statistic like that of how significant that is.

Right now, I think there is about 20 million people on GLP-1 drugs in the United States alone. 63% is a huge number that are going to be seeking aesthetic treatments. The other thing that has really changed in the marketplace is the procedures themselves. The reason that the procedures themselves have shift is because the patient population is posing different challenges for the surgeons. It used to be just either straight incisional surgery or liposuction for body contouring. Now what you are seeing is a huge amount of combination procedures where there are portions of the procedure that are incisional and there are portions of the procedure that are minimally invasive that involve liposuction and body contouring.

Through the numbers that you see from a procedure point of view, you see that liposuctions are down and everybody goes, "Oh, body contouring is down." That is not necessarily the case because lift procedures are way up, and surgical lifts are the way that a lot of doctors would categorize these treatments. Remember, this is a cash pay business, so there is no specific CPT code that you would have in a hospital setting. So it is all how the doctor will talk about and how they will classify the procedure when they are talking about the procedure data. The number one thing that is requested from patients now, the number one thing is skin tightening. If you look at, we will show you here a few of the Google search trends.

They are all around loose skin and skin tightening and everything else. That certainly is not a surprise to us or many people because of the side effects of the GLP-1 drugs. We believe because of that laxity, that the vast majority of patients are going to need to have a surgical intervention. We are seeing that too in the marketplace because if you look at non-invasive therapies, those therapies are down about 30%. It makes all the sense in the world because you are trying to put something on top of the skin to affect something underneath the skin and there is just too much laxity and there is too much work that needs to be done. So there needs to be some form of surgical intervention, and that is where we think that we are uniquely positioned today and obviously for the future. I mentioned the Google trends.

This is right from there. You can see it's skin tightening, it's loose skin, it's liposuction, and it's body contouring. You can see that just the raw data and the raw level of people are searching for solutions in those areas. The market is massive. I don't even actually like showing this slide because we're a company that's going to do about $60 million this year. I got a slide that's talking about a $10 billion market opportunity. So it really doesn't make sense other than just to show how large the opportunity is and how big surgical aesthetics could actually be. The company, though, has had a huge transformation. We're going to talk about that here in a few minutes. Before just last year, we were a one-technology company. That one technology was Renuvion. Renuvion is a wonderful technology for tightening the skin.

It had two portions to it. It had a capital generator that you see right there. Then it had a single-use hand piece. In the U.S., the generator, the capital portion of that, had a list price of about $165,000 as list price. The single-use hand piece is about $500. In 2025, we did about $48 million in revenue. About 50% of that revenue was from the single-use hand piece. So we've got a very nice consumable business. Some call it a razor blade business, but it's a very nice consumable business. That was our business until recently. How Renuvion actually works, I'll take a couple of minutes just to talk to you about that. It actually works underneath the skin and affects underneath the skin and affects the structure underneath the skin.

It's a 3-millimeter probe that you see up there, right here. So it's a very small defect that is made underneath the skin, typically used after liposuction. If you move down to the middle portion here, those yellow balls are fat. That's what's taken out with the liposuction. The white bands that you see are collagen bands. You stretch out collagen for two reasons. First is if you put fat in there, that can stretch out the collagen band. A lot of times, just over the natural aging process, as you see people age, their collagen will become stretched. The nice thing with collagen, though, is if you heat it to the right temperature for the right amount of time, you can cause that collagen to contract.

That contraction of the collagen is exactly what you see down here is you see tighter skin. The body actually goes through a neocollagenesis process where it actually forms more elastin and it forms more collagen. It actually comes out. It has some regenerative properties to it, Renuvion does, because of the cold atmospheric plasma portion of it. It actually is better in the long run because you're going to grow more collagen and have tighter skin. So it's really a unique technology. It's basically what the company started as and what the foundation was. Renuvion will still be a major growth driver as we go forward. We'll talk about that more here in a second. No aesthetic company would be up here without showing some before and after pictures.

But the thing that is different about what Renuvion does and what AYON does is these are definitely durable and transformational photos. You can see this gentleman really did not have much of a jawline, needed a little bit of liposuction to go in there. Then after they did lipo and Renuvion, this is five and a half months post-op, and you can see the transformation that he has. What is interesting is when you look at this patient, you would look at him and say, if you saw him, you would say: "Wow, you lost weight. You look great." He actually gained 14 pounds at his post-op than his before picture. So it certainly was not from weight loss. It was certainly from the lipo and the Renuvion, but you can see how impactful that is for him and his life.

The next area is an area that has historically, before Renuvion, has been incredibly difficult to treat, and it is an area that drives a lot of women crazy. It is the back and bra rolls that they have back here. You can see, obviously, they did liposuction on her, and then you can see the results there. It is transformational for what she has got there, and that is really the power of Renuvion. So one of the things that we did as a company as we were growing this Renuvion business and scaling this Renuvion business, we obviously looked at the aesthetic space, saw where we had an area of expertise, and where we could make the biggest impact on aesthetics.