Apyx medical corporation to restate previously issued financial statements
Clearwater, fla.--(business wire)--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 announced it will be restating its previously issued consolidated financial statements for the twelve months ended december, 31 2018 and the quarterly statements for the three and nine months ended september 30, 2018 and three months ended march 31, 2019. this decision was approved by the company's board of directors upon the recommendation of the company's audit committee, and after consultation with management and the company's predecessor independent registered public accounting firm. investors should no longer rely upon the company's previously released financial statements for the time periods cited above. similarly, related press releases, earnings releases, and investor communications describing the company's financial statements for these periods should no longer be relied upon. the decision to restate these financial statements is based on the conclusion that the financial statements for the aforementioned financial periods cannot be relied upon as a result of the aggregation of errors identified by management and the company’s new accounting personnel during the preparation of its fiscal year 2019 form 10-k and third quarter 2019 form 10-q, related to the following: as identified during preparation of the fiscal year 2019 form 10-k: the elimination of markup on intercompany sales from our subsidiary in bulgaria for the three months ended march 31, 2019, the total impact included increases to both gross profit and to operating expenses of approximately $113,000. for the three months ended march 31, 2019, the total impact included increases to both gross profit and to operating expenses of approximately $113,000. the collection and remission of employee’s income and payroll taxes related to the exercise of stock options in 2018 and 2019; the accrual and remission of the employer portion of payroll taxes related to those stock options exercises; reporting the incorrect amount of income to employees on their form w-2 for both non qualified and incentive stock option exercises, and misclassification of some non-qualified stock option exercises as incentive stock option exercises for the three and nine months ended september 30, 2018 and year ended december 31, 2018, the total aggregated impact included an increase of approximately $51,000 to operating expenses, an increase of approximately $713,000 to other losses and an increase to net loss of approximately $764,000. for the three months ended march 31, 2019, the total aggregated impact included an increase to operating expenses of $13,000, an increase of approximately $300,000 to other losses and an increase to net loss of approximately $313,000. for the three and nine months ended september 30, 2018 and year ended december 31, 2018, the total aggregated impact included an increase of approximately $51,000 to operating expenses, an increase of approximately $713,000 to other losses and an increase to net loss of approximately $764,000. for the three months ended march 31, 2019, the total aggregated impact included an increase to operating expenses of $13,000, an increase of approximately $300,000 to other losses and an increase to net loss of approximately $313,000. as previously disclosed and adjusted in form 10-q for the three and nine months ended september 2019 filed on november 11, 2019: accounting for stock-based compensation expense (relatedto forfeitures, vestingperiods, modifications, fair value measurements and other miscellaneous items) for the year ended december 31, 2018, the total impact included increases to operating expenses, operating loss and net loss of approximately $582,000 each. for the three months ended march 31, 2019, the total impact included increases to operating expenses, operating loss and net loss of approximately $453,000 each. for the year ended december 31, 2018, the total impact included increases to operating expenses, operating loss and net loss of approximately $582,000 each. for the three months ended march 31, 2019, the total impact included increases to operating expenses, operating loss and net loss of approximately $453,000 each. accounting for revenue and deferred expenses related to pre-development activities in some of our oem contracts for the three months ended march 31, 2019, the total impact included decreases to sales of approximately $194,000, decreases to operating expenses of approximately $77,000 and increases to both operating loss and net loss of approximately $117,000. for the three months ended march 31, 2019, the total impact included decreases to sales of approximately $194,000, decreases to operating expenses of approximately $77,000 and increases to both operating loss and net loss of approximately $117,000. a full reconciliation of these restatement adjustments, as well as revisions deemed to have an immaterial impact to the periods ended june 30 and september 30, 2019 is included with this press release and is available on the investor relations page of the company’s website. apyx medical has experienced a significant business transformation over the last couple of years, including the disposition of its core business in 2018 and changes to key management personnel. throughout 2019, the company has been making efforts to remediate its material weaknesses in internal controls over financial reporting identified in 2018, including investing in new personnel that have expertise in a broad array of accounting topics. as a result of these investments and remediation efforts, these errors in reporting were identified during 2019. due to the aggregation of these errors, the company’s predecessor independent registered public accounting firm determined the changes were material enough to require a restatement of the prior periods aforementioned. today's announcement reiterates the company’s continued commitment to best practices and upholding the highest standards of financial reporting. apyx medical continues to be committed to building a strong foundation of processes, procedures, systems and talent in order to capitalize on future global growth opportunities. about apyx medical corporation: apyx medical corporation (formerly bovie 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 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 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. cautionary statement on forward-looking statements: 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, 2019. 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. pdf link - reconciliation of restatement adjustments and revisions: http://apyxmedical.com/wp-content/uploads/2020/03/apyx_supplemental-reconciliation-of-restatement-adjustments-and-revisions_march-16_2020.pdf as originally reported [1] corrections as reported in q3 10-q [2] additional corrections in 10-k [3] as restated as originally reported [1] corrections as reported in q3 10-q [2] additional corrections in 10-k [3] as restated as originally reported [1] corrections as reported in q3 10-q [2] additional corrections in 10-k [3] as restated as originally reported [1] corrections as reported in q3 10-q [2] additional corrections in 10-k [3] as restated $ 3,672 - - 3,672 $ 10,760 - - 10,760 $ 16,686 - - 16,686 $ 5,823 (194) - 5,629 1,151 - - 1,151 3,490 - - 3,490 5,893 - - 5,893 2,103 - (113) 1,990 2,521 2,521 7,270 7,270 10,793 10,793 3,720 (194) 113 3,639 613 - - 613 1,890 - - 1,890 2,469 - - 2,469 810 - - 810 628 - - 628 1,815 - - 1,815 3,072 34 - 3,106 1,791 336 18 2,145 2,119 - 51 2,170 5,734 - 51 5,785 8,673 548 51 9,272 3,221 117 147 3,485 1,957 - - 1,957 6,280 - - 6,280 9,438 - - 9,438 3,101 (77) (39) 2,985 - - - - - - - - 741 - - 741 - - - - 5,317 - 51 5,368 15,719 - 51 15,770 24,393 582 51 25,026 8,923 376 126 9,425 (2,796) - (51) (2,847) (8,449) - (51) (8,500) (13,600) (582) (51) (14,233) (5,203) (570) (13) (5,786) interest income 135 - - 135 135 - - 135 616 - - 616 423 - - 423 (30) - - (30) (102) - - (102) (104) - - (104) - - - - other losses, net (155) - (713) (868) (155) - (713) (868) (203) - (713) (916) (25) - (300) (325) - - - - 20 - - 20 20 - - 20 - - - - (50) - (713) (763) (102) - (713) (815) 329 - (713) (384) 398 - (300) 98 (2,846) - (764) (3,610) (8,551) - (764) (9,315) (13,271) (582) (764) (14,617) (4,805) (570) (313) (5,688) (2,408) - - (2,408) (2,384) - - (2,384) (3,777) - - (3,777) (124) - - (124) (438) - (764) (1,202) (6,167) - (764) (6,931) (9,494) (582) (764) (10,840) (4,681) (570) (313) (5,564) 540 - - 540 5,062 - - 5,062 5,099 - - 5,099 - - - - 69,072 - - 69,072 69,072 - - 69,072 68,404 - - 68,404 - - - - 69,612 - - 69,612 74,134 - - 74,134 73,503 - - 73,503 - - - - net income (loss) $ 69,174 - (764) 68,410 $ 67,967 - (764) 67,203 $ 64,009 (582) (764) 62,663 $ (4,681) (570) (313) (5,564) (0.01) - (0.02) (0.04) (0.19) - (0.02) (0.21) (0.29) (0.02) (0.02) (0.33) (0.14) (0.02) (0.01) (0.17) 2.09 - - 2.09 2.25 - - 2.25 2.21 - - 2.21 - - - - 1.99 - - 1.99 2.19 - - 2.19 2.14 - - 2.14 - - - - 2.08 - (0.02) 2.06 2.06 - (0.02) 2.04 1.93 (0.02) (0.02) 1.89 (0.14) (0.02) (0.01) (0.17) 1.98 - (0.02) 1.96 2.00 - (0.02) 1.98 1.86 (0.02) (0.02) 1.82 (0.14) (0.02) (0.01) (0.17) 33,275 33,275 33,275 33,275 33,014 33,014 33,014 33,014 33,185 33,185 33,185 33,185 33,343 33,343 33,343 33,343 34,934 34,934 34,934 34,934 33,952 33,952 33,952 33,952 34,366 34,366 34,366 34,366 33,343 33,343 33,343 33,343 as originally reported [1] corrections as reported in q3 10-q [2] additional corrections in 10-k [4] as revised as originally reported [1] corrections as reported in q3 10-q [2] additional corrections in 10-k [4] as revised as originally reported [1] corrections as reported in q3 10-q [2] additional corrections in 10-k [4] as revised as originally reported [1] corrections as reported in q3 10-q [2] additional corrections in 10-k [4] as revised $ 6,568 - - 6,568 $ 12,391 (194) - 12,197 $ 7,575 - - 7,575 $ 19,772 - - 19,772 2,096 - (159) 1,937 4,199 - (272) 3,927 2,558 - (277) 2,281 6,757 - (549) 6,208 4,472 - 159 4,631 8,192 (194) 272 8,270 5,017 - 277 5,294 13,015 - 549 13,564 888 - - 888 1,698 - - 1,698 936 - 80 1,016 2,634 - 80 2,714 1,633 - 28 1,661 3,424 336 46 3,806 1,996 - 43 2,039 5,756 - 89 5,845 3,333 - 177 3,510 6,554 117 324 6,995 3,020 - 139 3,159 9,691 - 463 10,154 3,083 - (46) 3,037 6,184 (77) (85) 6,022 3,762 - 15 3,777 9,869 - (70) 9,799 - - - - - - - - - - - - - - 8,937 - 159 9,096 17,860 376 285 18,521 9,714 - 277 9,991 27,950 - 562 28,512 (4,465) - - (4,465) (9,668) (570) (13) (10,251) (4,697) - - (4,697) (14,935) - (13) (14,948) 403 - - 403 826 - - 826 327 - - 327 1,153 - - 1,153 - - - - - - - - - - - - - - - - (200) - - (200) (225) - (300) (525) 230 - - 230 5 - (300) (295) - - - - - - - - - - - - - - - - 203 - - 203 601 - (300) 301 557 - - 557 1,158 - (300) 858 (4,262) - - (4,262) (9,067) (570) (313) (9,950) (4,140) - - (4,140) (13,777) - (313) (14,090) 76 - - 76 (48) (48) 171 - - 171 123 - - 123 (4,338) - - (4,338) (9,019) (570) (313) (9,902) (4,311) - - (4,311) (13,900) - (313) (14,213) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $ (4,338) - - (4,338) $ (9,019) $ (570) $ (313) (9,902) $ (4,311) - - (4,311) $ (13,900) - (313) (14,213) (0.13) - - (0.13) (0.27) (0.02) (0.01) (0.30) (0.13) - - (0.13) (0.41) - (0.01) (0.42) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (0.13) - - (0.13) (0.27) (0.02) (0.01) (0.30) (0.13) - - (0.13) (0.41) - (0.01) (0.42) (0.13) - - (0.13) (0.27) (0.02) (0.01) (0.30) (0.13) - - (0.13) (0.41) - (0.01) (0.42) 33,384 33,384 33,384 33,384 33,363 33,363 33,363 33,363 34,078 34,078 34,078 34,078 34,039 34,039 34,039 34,039 33,384 33,384 33,384 33,384 33,363 33,363 33,363 33,363 34,078 34,078 34,078 34,078 34,039 34,039 34,039 34,039 as originally reported* [1] corrections as reported in q3 10-q [2] additional corrections in 10-k [3] as restated as originally reported* [1] corrections as reported in q3 10-q [2] additional corrections in 10-k [3] as restated as originally reported* [1] corrections as reported in q3 10-q [2] additional corrections in 10-k [3] as restated as originally reported* [1] corrections as reported in q3 10-q [2] additional corrections in 10-k [4] as revised as originally reported* [1] corrections as reported in q3 10-q [2] additional corrections in 10-k [4] as revised $ 40,663 - - 40,663 $ 16,466 - - 16,466 $ 32,415 - - 32,415 $ 67,360 - - 67,360 $ 62,272 - - 62,272 55,480 - - 55,480 61,678 - - 61,678 40,885 - - 40,885 - - - - - - - - 4,080 - - 4,080 3,656 - - 3,656 4,006 - - 4,006 5,233 - - 5,233 6,329 - - 6,329 - - - - 1,359 - - 1,359 925 - - 925 985 - - 985 1,333 - - 1,333 6,037 - - 6,037 3,061 - - 3,061 3,013 - - 3,013 3,863 - - 3,863 4,547 - - 4,547 627 - - 627 3,297 - - 3,297 3,996 - - 3,996 4,516 - - 4,516 4,424 - - 4,424 106,887 - - 106,887 89,517 - - 89,517 85,240 - - 85,240 81,957 - - 81,957 78,905 - - 78,905 5,842 - - 5,842 5,788 - - 5,788 6,015 - - 6,015 6,294 - - 6,294 6,645 - - 6,645 - - - - - - - - 178 - - 178 374 - - 374 368 - - 368 - - - - - - - - - - - - - - - - 638 - - 638 385 - - 385 305 - - 305 270 77 - 347 258 77 - 335 387 - - 387 $ 113,114 - - 113,114 $ 95,610 - - 95,610 $ 91,703 77 - 91,780 $ 88,883 77 - 88,960 $ 86,943 - - 86,943 $ 2,348 - - 2,348 $ 1,423 - - 1,423 $ 1,504 - - 1,504 $ 1,641 - - 1,641 $ 1,457 - - 1,457 19,324 - 764 20,088 6,279 (117) 764 6,926 5,868 - 1,077 6,945 6,149 - 1,077 7,226 7,285 - 1,077 8,362 - - - - - - - - 103 - - 103 107 - - 107 101 - - 101 - - - - - - - - - - - - - - - - 196 - - 196 21,672 - 764 22,436 7,702 (117) 764 8,349 7,475 - 1,077 8,552 7,897 - 1,077 8,974 9,039 - 1,077 10,116 140 - - 140 140 - - 140 140 - - 140 140 - - 140 140 - - 140 - - - - - - - - 75 - - 75 267 - - 267 248 - - 248 - - - - - - - - - - - - - - - - 444 - - 444 - - - - - - - - - 194 - 194 - 194 - 194 339 - - 339 21,812 - 764 22,576 7,842 (117) 764 8,489 7,690 194 1,077 8,961 8,304 194 1,077 9,575 10,210 - 1,077 11,287 33 - - 33 34 - - 34 34 - - 34 34 - - 34 34 - - 34 51,798 - - 51,798 52,221 699 - 52,920 53,147 1,035 - 54,182 54,051 1,035 - 55,086 55,668 - - 55,668 39,471 - (764) 38,707 35,513 (582) (764) 34,167 30,832 (1,152) (1,077) 28,603 26,494 (1,152) (1,077) 24,265 21,031 - (1,077) 19,954 91,302 - (764) 90,538 87,768 117 (764) 87,121 84,013 (117) (1,077) 82,819 80,579 (117) (1,077) 79,385 76,733 - (1,077) 75,656 $ 113,114 - - 113,114 $ 95,610 - - 95,610 $ 91,703 77 - 91,780 $ 88,883 77 - 88,960 $ 86,943 - - 86,943
