Good afternoon, ladies and gentlemen, and welcome to the Apyx Medical Second Quarter 2025 Earnings Conference Call. [Operator Instructions] This call is being recorded on Thursday, August 7, 2025. I would now like to turn the conference over to Jeremy Feffer, LifeSci Advisors. Please go ahead.

Thank you, and welcome, everyone, to our second quarter 2025 earnings call. Representing the company on the call are Charlie Goodwin, Chief Executive Officer; and Matt Hill, Chief Financial Officer of Apyx Medical. Before we begin, I would like to remind everyone that our remarks and responses to your questions today may contain forward- looking statements that are based on the current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including, without limitation, those identified in the Risk Factors section of our most recent annual report on Form 10-K, our most recent 10-Q filing and the company's other filings with the Securities and Exchange Commission. Such factors may be updated from time to time in our filings with the SEC, which are available on our website. We undertake no obligation to publicly update or revise our forward-looking statements as a result of new information, future events or otherwise. This call will also include references to certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAAP. We generally refer to these as non-GAAP financial measures. Reconciliations of those non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are available in the earnings press release on the Investor Relations portion of our website. I would now like to turn the call over to Mr. Charlie Goodwin, Apyx Medical's President and Chief Executive Officer. Please go ahead.

Thank you, Jeremy, and thank you all for joining us today. First, with our focus on returning to growth, I am excited to announce the appointment of 2 senior sales leaders for the domestic and international markets. John Featherstone will head North American sales and has over 20 years experience in the aesthetics industry, along with Simon Davies, who will head Europe and Asia and has over 30 years' experience in the industry, most recently with VASER. Per our usual format on these quarterly calls, I will be providing a review of our performance in the second quarter of 2025, and then I will turn the call over to Matt for a review of our second quarter financial results as well as our updated full year 2025 guidance. We will then open the call for questions. Let me begin with a review of our second quarter performance. We reported total revenue of $11.4 million compared to $12.1 million in the same period last year. This slight decline was anticipated and primarily driven by a decrease in sales of our OEM products. Importantly, this aligns with our strategic shift in focus and resource allocation. Sales of our Advanced Energy products were $9.7 million, reflecting continued customer interest and steady demand in an overall market that remains challenged. While we experienced a modest decrease in the volume of single-use handpieces sold domestically, this was due in part to a decline of overall procedures and our sales rep focus on the presales of AYON in preparation for its commercial launch. This was a strategic decision to support the rollout of our most advanced system to date and that investment is already paying off. I am pleased to report that early results from the AYON presales have exceeded our expectations, which I'll discuss in…

Thank you, Charlie. Before I get started, please note that all references to second quarter financial results will be on a GAAP and year- over-year basis, unless noted otherwise. As Charlie mentioned, total revenue for the second quarter '25 decreased 6% to $11.4 million compared to $12.1 million in the prior year period. Revenue for the Advanced Energy segment was relatively flat at $9.7 million compared to $9.8 million last year. As Charlie referenced, the flattening of our sales growth curve in this quarter reflects a decrease in the volume of single-use handpieces domestically. We expect to resume growth with the launch of AYON ramping in the third quarter, which is reflected in the updated guidance I will provide in a minute. Turning to the OEM segment. Sales decreased 29% or approximately $1.7 million for the second quarter of '25 when compared to the second quarter of '24. The decrease in OEM sales is due to decrease in sales volume to existing customers, including Symmetry Surgical under our 10-year generator manufacturing and supply agreement. Domestic revenue decreased 11% year-over-year to $7.8 million and international revenue decreased 4% year-over-year to $3.6 million. As a reminder, the medical device industry typically experiences some seasonality with revenue trends generally the lowest in the first and third quarters and strongest in the second and fourth. That said, the timing of new product shipments, particularly related to the AYON launch, could influence the revenue distribution in the second half of the year. Depending on the pace and timing of these deliveries, we may see a different seasonal pattern in Q3 and Q4 compared to historical norms. Gross profit for the second quarter '25 decreased to $7.1 million compared to $7.5 million in the prior year period. Gross profit margin for the second quarter of '25…

[Operator Instructions] Your first question comes from Sam Eiber with BTIG.

Maybe I can start here on AYON. It sounds like a lot of enthusiasm and pent-up demand is building here. Charlie, you also talked about the existing market environment that we're in. So I guess, how should we be thinking about the customer receptivity at this environment?

Yes. Thanks for the question, Sam. The reaction from the doctors has been nothing short of spectacular so far since we've launched AYON. And there has really not been a lot of innovation in this space. There hasn't been anything to update the technologies and to combine the technologies and to work on the workflow. And remember, this system was designed by surgeons for surgeons. We just facilitated their wishes, if you will, in the nicest possible way. And it seems that the team did an incredible job of meeting the doctors' needs and the doctors have been obviously overwhelmingly positive to the thing -- to AYON. And obviously, the presales show that. And that's obviously the reason that we were very comfortable to raise our guidance today with that. And yes, it does fly in the face of a little bit of what's going on in the marketplace. But when you really look at it, body contouring lax skin. A lot of them have been on GLP-1 drugs for weight loss. But we really believe, as I've said before, that the next decade is be that surgical company that helps them take care of their patients' needs.

Yes, makes a lot of sense. Maybe I can use my follow-up here on some of the new commercial hires. Really glad to see John and positions you guys to take advantage of this opportunity in front of you?

Yes, Sam, I'm glad you're thrilled that they're here. Remember, I've been doing this job, too, for the last 9 months. So nobody is happier than I am to have them here. But we are incredibly fortunate to have their expertise and their knowledge to help us drive AYON and Renuvion, both in North America and in Europe and Asia. And obviously, John Featherstone brings over 20 years of have him on board. Simon Davies comes to us, obviously, with a lot of experience, too. But remember, he just got -- he was the leader of VASER in Europe and the Middle East for the last quite a few years. And his passion and his knowledge in body contouring is, quite honestly, big things out of them to keep driving the adoption of AYON worldwide.

If I could just squeeze one last question here for Matt on the comments about seasonality. Is it -- are those comments really referencing typical seasonality, we think of a sequential dip in Q3 and then a rebound in Q4. Are you saying that we might see Q3 step up because maybe some of the initial orders from AYON and then decline in Q4? Just want to make sure I'm thinking about those comments correctly.

No -- Sam, it's a great question. So what I'm looking at, you normally see a dip from Q2 to Q3. We're launching -- commercially launching AYON in September. So depending on the timing of those orders, you might see a change between Q2 and Q3. We're still going to have a very strong Q4 as most of AYON shipments are going to go out October through December, that are currently in the backlog, yes.

[Operator Instructions] There are no further questions -- one moment, please. Your next question comes from Sam Eiber with BTIG.

Maybe I'll just squeeze in a final question here on the China opportunity because that's new here also. I'd love to understand maybe the market opportunity there, how to think about revenue contribution either this year or maybe next year? And then as a third part of the question, why GlamMoon is maybe the right partner to really be successful with Renuvion?

Yes. Look, we've obviously been after China for a while. We've got the joint venture over there and obviously are very happy that we're now starting commercial operations in China. And the China opportunity is a big opportunity. There's about 5,000 plastic surgeons in China. So it's a very good market, a very good middle to upper class is obviously emerging there. And so we've got a lot of hope -- we got a lot of future in China for the next few years. The partner that we've got, we think we've got an amazing partner in GlamMoon. They've -- they're looking at this in the long run and taking a really nice approach. But they own a lot of facilities over in China, a lot of aesthetic facilities. And so we believe that they will be able to obviously get the technology into those right away and then obviously branch out from there. And so we're very happy with our partnership so far. It's obviously in the early innings of that, but we expect China to be a revenue driver for years to come.

There are no further questions at this time. I will now turn the call over to Charlie Goodwin for closing remarks.

Thank you, everybody, for attending the call. I really want to thank the entire Apyx team for their dedication, their tireless execution over the past few months. It has been an incredibly exciting time to be with the company as we see our vision and plan turn into reality, and we appreciate all the support we've received from our shareholders during this time, too. So just thank you all, and it couldn't be a better time to be with Apyx. So thank you.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.