Okay, thanks. Good afternoon, everyone, and thank you for joining us at this year's Canaccord Genuity Global Growth Conference. My name is Caitlin Cronin, and I am on the Medical Device team here at Canaccord Genuity. I'm joined today by Apyx Medical , a medical technology company specializing in helium plasma energy solutions for minimally invasive cosmetic and surgical procedures. With me today is Charlie Goodwin, CEO, and thank you for joining me. Before we begin, I want to remind everyone of any relevant disclosures, which can be found on our conference and our firm website. With that, I'll hand it over to management. Charlie?
Thank you very much. Appreciate you having us here. My name, as she said, is Charlie Goodwin. I'm the CEO of Apyx Medical, and we believe we are the leader in surgical aesthetics. I'm going to walk you through the company story. This is what my lawyers have put up, so I'll skip that part and go right into the good stuff. We are the leading developer of surgical technologies used in minimally invasive aesthetic procedures. We believe that the aesthetic market over the last two years has incredibly changed, and it's incredibly changed because of the GLP-1 . We'll get into that a little bit more. Renuvion is the only FDA-approved device for treatment of loose, lax skin, which obviously, if you know anybody that is on these therapies, that is one of the number one side effects of the therapies is loose, lax skin.
We have always believed in evidence-based medicine. We've got over 90 published clinical papers that talk about the safety and efficacy of Renuvion, and we believe that we've established this as the leading technology for skin tightening. Fortunately, this last May, I think it was May 11th, we got approval for our AYON body contouring system, and we are planning to start selling devices into the market in September of this year. Talked a little bit about some of the trends that are going on in the market. The GLP-1 therapies are huge. McKinsey talks about them being a $100 billion therapy by 2030. We all know a lot of people individually that are on the therapies, and there are just going to be more and more people.
Most of these users, almost half of them, are spending money on aesthetic treatments, and 63% of these patients are new to aesthetics. We think this is going to be a big boon over many years to come. Quite frankly, I think that the next decade is going to be a home run for plastic surgeons because a lot of these people are going to be looking for solutions to take care of their bodies, and the plastic surgeons are where they're going to go. We've also seen a shift in procedures. What we mean by that is liposuction procedures are down a little bit. They're down about 10%. If you look at surgical lifts, they are up more than 20%.
That makes a ton of sense in the environment of GLP-1 therapies because as the patients start to lose weight and they start to gain laxity, they need some type of surgical intervention and some type of lift. Those numbers that are out there make a ton of sense to us. Skin tightening now is the number one requested treatment after weight loss. In fact, 72% of GLP-1 users cite it as the number one concern that they've had. The other thing that we see is a change in the treatment environment for these patients. Doctors are having to change their practice and change their treatment, and we're seeing combination procedures. What we mean by combination procedures are combination incisional surgery and then skin tightening. All of this is transforming the entire aesthetics market, and we believe that's why the market has been disrupted over the last couple of years.
We don't believe that it's been the economy. We don't believe that it's been interest rates. We believe that it's because of the mass shift that is coming from the GLP-1 drugs. 57% of these patients are seeking treatment within six months after they get to their ideal weight. Depending on how long they're on the drug, they'll usually wait about six months to make sure that they can keep the weight off, and then they'll seek some type of intervention. For most of these patients, we believe that's a surgical intervention. Here's just some more data that is out there. If you follow Dr. Randi Boyette, she does an incredible job on the med spas and has always got some of the most up-to-date information that is out there. The number one thing for GLP-1 users is 63% of them are seeking treatments for skin tightening.
You can see the data where it comes from, but it just means that we believe every aesthetic practice should have a Renuvion in it. The market opportunity is huge. I'm not even going to go into it or get to specifics about it. We're a company that did about $50 million last year, and total the market that we play in is about $10 billion. It's a huge, huge market. Historically, our business has been predicated on Renuvion, and Renuvion is a device that goes underneath the skin to treat loose, lax skin. This is our capital Apyx One generator. It has a list price of $165,000, and we will talk more in depth on Renuvion itself here in a couple slides. Last year, in 2024, we sold the most single-use handpieces that we've ever sold as a company, and we sold 93,000 handpieces.
Those single-use disposables have an ASP of around $500. Think about that. They are single-use. That handpiece business in the United States grew 14% in a time where a lot of the aesthetic companies were looking for growth. We're a little bit different too, as far as most of our aesthetic peers, in that 60% of our revenue is from the single-use disposables. We really are partners with the surgeons. We want them to help grow their surgical practice. Quite frankly, if they grow their practice and do more surgery, we sell more handpieces, and it's a true partnership with the practice. This is how Renuvion works. It's a minimally invasive surgical procedure, and that is a 3 mm probe that you see up top there, and it goes subdermally underneath the skin. It's only a 3 mm defect. It's really small.
In the second picture there, those white bands are collagen bands. What Renuvion simply does is it heats collagen to the right temperature for the right amount of time to cause that maximum contraction. The end effect of that that you see, that you notice, is skin tightening. Collagen is usually stretched for two reasons. The most common one is fat. As you get fat in your hair, that stretches out the collagen. That's what those yellow balls are. If you stretch out your collagen because of fat, you need to have liposuction first to take the fat out to create the space so the bands can contract. The other reason that collagen contracts or stretches is just because of the normal aging process. As you get older, your skin starts to sag a little bit.
If it's only from sagging skin from age and there's no fat that needs to come out, you can actually just use Renuvion on its own to go in and contract the collagen bands. The body goes through a neocollagenesis process that takes about nine to 12 months, and the results keep getting better over time. That's what you see down there at the bottom picture. These are just some results. This gentleman obviously had some fat that needed to come out of his neck and his submental area. You can see he was treated with Renuvion. The picture is pretty transformational. This is another very common procedure that is difficult to treat. Women don't like their back and bra roll, and it's historically been a tough area to treat.
You can see that they removed the fat with liposuction and then came in with Renuvion after and tightened that up. You can see that the result is pretty remarkable for this patient. We were a one technology company. We had Renuvion where we had the piece of capital that I told you about, the single-use disposable for skin tightening. One of the things that we looked at as a company was what are we, what do we do, and what else can we bring to the marketplace that can help our surgeons? We started to develop what we call AYON , even before we knew what a GLP-1 drug was. The reason that we went down the surgical path is for a couple of reasons. First, we believe that in aesthetics, to get a truly durable and transformational result, you need to have a surgical intervention.
Unfortunately, that's the case, but everybody in aesthetics would like to strap something to their abdomen, go have my Popeye's lunch, put something on my abdomen for half an hour, and come out looking at it like Adonis with no pain, no downtime, or no anything else. Unfortunately, that really doesn't exist. The only way to really get these results is through either a minimally invasive surgical procedure or an incisional surgical procedure. We got together a group of surgeons that actually designed the ultimate body contouring surgical platform in aesthetics. When we looked at the environment and we looked at the competitors that were out there on the surgical side of things, a lot of the technologies hadn't been updated in over 20 years. All the technologies that exist in AYON today are represented in about four or five different companies.
Picture these doctors that have these procedure rooms in their offices, and they've got four or five different technologies that are all around their table. That has all now been consolidated in AYON . Not only just consolidated, but every technology that is in AYON is better than the existing technology that is on the marketplace today. We got approval for AYON , as I mentioned earlier, on May 11th of this year. We actually are in a phase right now where we are rolling it out to our AYON ambassadors. We have about 20 AYON ambassadors throughout the United States. It is only approved so far in the U.S., and they are doing a soft launch for us right now.
We have been taking pre-orders for the commercial side of our business, and we will be hopefully fulfilling those starting in September throughout the rest of this year. We reported our second quarter on this this past Thursday where we increased our guidance for the year by about $2.7 million. That was on the confidence of the AYON pre-orders that we have. We think that AYON not only is a game changer for the surgeons, their patients, and their practices, but we think that it totally transforms us as a company and really delivers value to the marketplace from the surgical side of things. I'll talk just about a couple of things since I've got a couple minutes here to talk about. One of the things that we really did that we really made different was the ultrasonic technology.
We call it LIFT technology that we have in there. The gold standard for ultrasonic liposuction that is on the marketplace today is called VASER. It's owned by Solta Medical, and it is the gold standard in liposuction. It's a great technology, but it was developed about 20 years ago and really hasn't had any significant change to it in that time. One of the things that we were able to do is to make a smart instrument, and that's what LIFT technology really is, it senses the tissue environment that it's in, and the device works at the optimal efficiency in different tissue types. What that means is it has the ability to emulsify fat faster than the existing technology. It also has the ability to work safer where the probe tip doesn't get as hot.
One of the downsides of ultrasonic technology is if that probe tip gets too hot, it can create a burn and a patient event. By having this instrument now that is always looking for the most optimal way to work, you can create an instrument that is more efficient, safer, and faster for the doctor. The other thing that's incredibly important with AYON is it also has simultaneous activation, which was incredibly important from our doctor-surgeon group that developed this. What I mean by simultaneous activation is you can have two doctors or a doctor and an assistant doing two of the same thing at the same time or two different things at the same time. From a workflow perspective, from an efficiency perspective, from everything like that, AYON adds an incredible amount of efficiency into the OR for the doctors.
We think it's going to deliver precise, superior results that the market hasn't seen ever in something like this. We also have a direct-to-consumer marketing program for Renuvion, and we think it's really important to keep educating the consumer on their options for skin laxity, that if they have loose, lax skin, they need to go find a provider near them. We have done an amazing job in the last year and a half of really transforming our DTC program to where, with all the metrics that we're measuring now, they're kind of blowing up. We have more people today coming to our website for our physician finder to find a provider in their area that has Renuvion.
We will keep engaging on the DTC side with Renuvion, and then we will focus with AYON on the B2B side as that's really a conversation for the provider and for their practice and for things like that. We want to make sure that in this marketplace of GLP-1 , people that are going through this weight loss journey understand at the other end that there are options for them and that Renuvion is that option. We just won the Best Minimally Invasive Skin Tightener Award from NewBeauty , which, the reason that I have this up here is it's not a brand new technology. It just kind of shows how important this category is to consumers and the beauty market as a whole, if you will, to have just won this award. Our company, we have a global presence.
We're headquartered out of Clearwater, Florida, here in the United States, where we have R&D and manufacturing and distribution, and in Sofia, Bulgaria, where we also have R&D, manufacturing, and distribution. Bulgaria supports primarily Europe and the Middle East. Obviously, if things change from a tariff perspective, we can ship out of each location depending on whatever happens there. We also have a joint venture and a contract manufacturing place in Ningbo, China. We just actually got approval for the Chinese market just last month, and we've started our commercial operations there. Our plan in China, having a joint venture, has always been to manufacture Renuvion in China for the Chinese market because obviously the Chinese government gives preferential treatment to Chinese manufactured goods. We announced a lot of strategic initiatives in Q4 of 2024.
I'm not going to read all of those, and if I miss any of those, you can read them all yourself. Really, the biggest thing for us as a company was to shore up our balance sheet and to get to profitability as quickly as we possibly can in this marketplace. The big thing that Matt, my CFO, is back there, that he and his team really did is we dug in and we looked for ways to reduce cost in the business. We took our operating costs. They will be less than $40 million this year and no more than $45 million the following year. Just to give some level of context for that, in 2023, our operating costs were $53 million, and last year they were $48 million. When we looked at areas of the business to cut, we looked at actually everything.
We even started with our Board of Directors. We took that down from eight people down to five. We took most of their cash compensation away and gave them equity. Nobody would let me have a bonus until, you know, this company starts to grow and all of those things again. We did all of that kind of stuff in order to get this company profitable as quickly as we can. A couple of the things that we've said publicly about that is that we would be EBITDA positive no later than the end of 2026. Matt just announced that we have cash through 2027. We have about $30 million of cash on our balance sheet, and we've got about $37.5 million of debt through our debt partner Perceptive Advisors.
This is our financial guidance that we just revised upwards of about $2.7 million, with the total revenue being $50 million- $52 million. That means advanced energy goes from $42 million to about $44 million, which advanced energy would represent about 10% growth at that level. Obviously, our focus as a company here in 2025 is the launch of AYON . You know, obviously, we talked about the importance of GLP-1 drugs , I think, from the surgical side of the business. If you believe that patients that are on these therapies are going to have loose, lax skin and they're going to need a surgical intervention, I would argue to find a better company in the aesthetic space positioned with the right technologies than us. We will continue to expand the adoption of Renuvion, as I said, our DTC strategy and focus on that. We will continue to keep working outside.
We've got a lot of work to do to get AYON registered in countries outside the United States. We talked about our evidence-based medicine and the clinical papers that we have. We will do the same thing for AYON . We believe in evidence-based medicine, and we will continue to manage this business hard from an expense point of view and drive the top line as fast as we can to get to profitability as quickly as we can. That is all I'm going to talk about. Caitlin said I should stop at about 20 minutes to allow five minutes for questions, but you got two minutes and 49 s if there's any questions. I went a little longer, sorry.
Yes.
I was going to say as well, so I'm really asking, will the technology actually propel the whole market forward? You're talking about the ultrasonic surgery, the big part of the additives. Does the smart technology actually, or surgeons want to want this?
Yes.
Clinicians want it.
Yes. Clinicians are the ones that developed this. They're the ones that were asking for this. If you look at the aesthetics market historically, everybody would like to have something that is non-invasive, a non-surgical intervention. That is just bar none. That's what everybody would rather have. Anytime that they're going to have surgery, they're always worried about any type of complication that could come along because it's an elective surgery, it's a cash pay surgery, typically it's a vanity surgery, all of those things in it. One of the biggest things that surgeons want to have happen is they want to try to eliminate as best that they can any adverse event that can come from that. Yes, surgeons will want this because surgeons were asking for this.
This is all the things that they want that are in AYON to help give better patient outcomes and all of that type of stuff. None. All surgeons. We only focus on surgeons in the aesthetic space. There are a lot of other technologies and a lot of other companies that are with nurse practitioners, that are with PAs, with everything else. Our focus is to really be a partner with the plastic surgeon and to really help them grow their surgical practice. Yeah, thank you.
Yes.
Yeah, U.S. is obviously on, has been at the tip of the spear with the GLP-1 drugs. We tend to jump on those things first, but yeah, absolutely. In fact, I was even down in Brazil last year, and the GLP-1 drugs are sold over the counter in Brazil. You don't even need a prescription for them. You can walk up and just buy one. Yes, we're going to see that trend happen everywhere.