September2016
SafeHarborStatement
Certainma1ersdiscussedinthispresenta7onandoralstatementsmadefrom7meto7mebyrepresenta7vesoftheCompanymaycons7tuteforward-lookingstatementswithinthemeaningofthePrivateSecuri7esLi7ga7onReformActof1995andtheFederalsecuri7eslaws.AlthoughtheCompanybelievesthattheexpecta7onsreflectedinsuchforward-lookingstatementsarebaseduponreasonableassump7ons,itcangivenoassurancethatitsexpecta7onswillbeachieved.
Forward-lookinginforma7onissubjecttocertainrisks,trendsanduncertain7esthatcouldcauseactualresultstodiffermateriallyfromthoseprojected.ManyofthesefactorsarebeyondtheCompany’sabilitytocontrolorpredict.ImportantfactorsthatmaycauseactualresultstodiffermateriallyandthatcouldimpacttheCompanyandthestatementscontainedinthispresenta7oncanbefoundintheCompany’sfilingswiththeSecuri7esandExchangeCommissionincludingtheCompany’sReportsonForms10-QforthequarterendedJune30,2016,and10-KfortheyearendedDecember31,2015.Forforward-lookingstatementsinthispresenta7on,theCompanyclaimstheprotec7onofthesafeharborforforward-lookingstatementscontainedinthePrivateSecuri7esLi7ga7onReformActof1995.TheCompanyassumesnoobliga7ontoupdateorsupplementanyforward-lookingstatementsasaresultofnewinforma7on,futureevents,orotherwise.
InvestmentHighlights
• Growingcorebusinesswithrobustdemand
• Transforma7onalJ-Plasma®surgicalproducttarge7nglargeandgrowingmarkets
• RobustR&Dpipeline–significantproductlaunchesplanned• State-of-the-artmanufacturingfacili7esinUSandEurope;
manufacturingsuppliersinChina
• Highlyexperiencedmanagementteam
3
ExperiencedManagementTeam
Execu1ve JoinedBovie Experience
RobGershonChiefExecu+veOfficer December2013
Over25yearsofexperienceinhealthcare
JackMcCarthyChiefCommercializa+on
OfficerMarch2014
Over25yearsofsalesandmarke7ngexperience
JayEwersChiefFinancialOfficer June2014
Over30yearsoffinancialmanagementexperience
ToddHornsbyVicePresidentofSales August2014
Over14yearsofmedicaldevicesales
ShawnRomanVicePresidentofResearch
&DevelopmentOctober2014
Over15yearsofR&Dexperience
4
Representa7veCoreProducts:GlobalBrandEquity “Bovie®”isreferencedinallsurgicalprocedures;itisaproprietaryeponym
Electrosurgical~55% Cauteries~21%
Ligh1ng~8%
• Designanddevelopspecstoaddresspartners’innova7ons
*Allfiguresarerevenueforthe6monthsendedJune30,2016.Totalexceeds100%asOEMisreportedwithinElectrosurgical 5
J-Plasma~6.6%
OEM~15%*
State-of-the-ArtManufacturingFootprint
• Threeworld-classmanufacturing
facili7es- Clearwater,Fl.(owned)–Assembly,
integra7on,finaltes7ng,packagingand
managementofsteriliza7on
- Bulgaria(owned)–Manufacturingandassemblyofcomplexcomponents;ini7al
tes7ng
- China(contracted)–Component
manufacturing
• Capacitytoincreaseoutputfrom
exis7ngfacili7es
6
StrongMomentuminCoreBusiness
• Boviehasuniquebrandposi7onwithglobalnamerecogni7on
• Long-standingrela7onshipswith“Big7”distributors• Newproductlauncheshelpingtodriveinterest• InboundOEMrequestsfromindustry’stopnames
• Ac7velytarge7ngnewmarkets
• Corebusinesscontributestorobustfinancials
7
J-Plasma®:Transforma1onalProduct
• Revolu7onarytechnologythationizesheliumtocreatestreamofplasmaforcuongandabla7on
• Precisecuongandcoagula7onwithlimitedthermalspread- Stable,thin,focusedstreamofionizedheliumgas- Widerangeofcontrolwithindependentcontrolofplasma
powerandgasflowrate- Noconduc7vecurrentsthroughthepa7entduringsurgery
• Allowssurgeonstosafelyperformproceduresondelicatestructuressuchas:
-FallopianTubes -Ureters -Bowel
-Esophagus -Ovaries-LymphNodes
• Protectedby38patents:
- 13USand3foreignissued
- 15USand7foreignpending
RecognizedasanInnova7onoftheYear
byTheSocietyofLaparoendoscopic
Surgeons(SLS)3YearsinaRow
8
J-Plasma®EnergyStreamforLimitedThermalDamage*
• Clinicalstudycomparedlevelsofunintendedthermaldamagetoperitoneal7ssue(membraneliningtheabdominalcavity)amongotherenergy-basedsurgicaltoolsvsJ-Plasma®
• Redareasrepresentthe
depthofthermalorenergydamageeachtoollesbelowthe7ssuesurface;blueareasrepresentunaffected7ssue
• J-Plasma®demonstratedfar
lowestamountofcollateralthermalinjurytohealthy7ssuesurroundingtheopera7vesite
*Reference:PedrosoJ,Gu7errezM,VolkerW.J-Plasma,monopolarpencil,argonbeamandCO2laserelectrosurgery:compara7veevalua7onofthermalspreadinaporcine7ssuemodel(whitepaper).BovieMedicalCorpora7on.June2014 9
J-Plasma®Comparison
10
J-Plasma®Demonstra1onVideo
11
J-Plasma®:Compe11veAdvantages
Compara7veCaseStudy:J-Plasma®inEndometriosis600,000proceduresperyearinUS
KeyDifferences CO2Laser J-Plasma®Trea1ngpoten1allesions Treatsvisiblelesionsonly
Treatsvisibleandpoten7allesions
Tac1lefeedback Notac7lecuongfeedbackormaneuverability
Directtac7lecuongfeedbackandmaneuverability
Controlofenergy Requireslasersafetybackstop
Controlledenergy:streamdistancelimitedtosurgicalsite
ORrequirements Mul7plespecializedORrequirements(privileges,goggles,
techs,wetdrapes,etc.)
Noaddi7onalORresourcesrequired
Price Es7matedCapitalASP:$100,000+
Es7mateddisposablehandpieceASP:$425+
Es7matedCapitalASP:$20,000
Es7mateddisposablehandpieceASP:$375
12
J-Plasma®:Poten1alAnnualProceduresinIni1alTargetedSpecial1es
2,038,000
1,947,038
695,171GYNProcedures
SurgicalPlas7csProceduresAesthe7cPlas7csProcedures
Poten7alspecial7estotargetintheshort/mediumterm:• Cardiac• Thoracic• Urology• Generalsurgery
Sources:CDC,NIH,APGO,ASPS,ASAPS,AHA,ASPS*Assumes$375ASPfordisposablehandpiece,and$25,000ASPperJ-Plasmagenerator 13
• GYNONC• Oncology• ENT• Vascular
Ini1alTargetedSpecial1es>$2BillionTAM*--U.S.Only TotalProceduralOpportunity
Targe1ngNewSpecial1es:MedicalAdvisoryBoard
• Comprisedofsurgeonthought-leaderstoadviseonJ-Plasma®applica7onforspecialtyprocedures
• Ini7altargetspecial7esincluding:urology,cardiothoracicandcardiovascular
• Expecttohave6-9surgeonmembers
• Immediateprogressonrobo7cs
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Dr.HusamBalkhy,Director,MinimallyInvasive&RobotCardiacSurgery,DuhossoisCenterforAdvancedMedicine
Dr.RobertJ.Cerfolio,Sec7onChief,ThoracicSurgeryUniversityofAlabamaHospital
FoundingmemberofMAB:Dr.VipulPatel,worldrenownedrobo7csurgeon,MedicalDirectorofGlobalRobo7csIns7tute,Florida
Dr.CraigMcCoy,Women’sWellnessCenter,ColumbiaMO.Obstetrics&GynecologySpecialist
15
ChannelPartners:Accelera1ngJ-Plasma®Sales
• Complementtoexis7ngsalesnetwork
• ExpandsthereachofJ-Plasma®intonewspecial7es
• CombinesJ-Plasma®withcomplementaryproducts
• AgreementssignedwithArteriocyteMedicalSystemsandHologic
16
Arteriocyte:Targe1ngPlas1cSurgeons
• Privatelyheldmedicaldevicecompanywithdeepexperience,exper7seandrela7onshipsintheplas7csurgery/aesthe7csspaceamongothers.
• Non-exclusivemul7-yearAgreementsignedJune30,2016.
17
Hologic:Targe1ngGYNandGYNOncology
• Nasdaq-listedHOLX.Marketcap:$10.2BRevenues:$2.7B(FYSept‘15)Founded1986.• Globalhealthcareanddiagnos7cscompany,focusedonBreast
&SkeletalHealth,Diagnos7candGYNSurgicalSolu7ons• HologicwilladdJ-Plasma®productlinetoporyolioinGYNand
GYN/oncologicalsurgeryinthreeU.S.regionsandoneOUSmarket
• Ini7alsix-monthagreementincludesop7ontoextendintoaglobaldistribu7onpactthatwouldinvolveHologic’sen7reworld-widesurgicalsalesforce
World-ClassR&DCapabilityasGrowthCatalyst
• WorldClassR&DCapability
• DevelopingnewproductstocomplementJ-Plasma®andboostgrowthincorebusiness
• Notableproductlaunches:
• Valueinpatentandproductporyoliocanberealizedwithminimalexpenditures
J-PlasmaPrecise360™
BovieUl7mate®
IDS-310™DERM101™DERM102™
Freezpoint™
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PlazXact™Ablator
SolidBalanceSheettoFundGrowth
• InMarch2015raisedaddi7onalequityof$11.5million
• Unrestrictedcashandcashequivalentswere$9.5millionatMarch31,2016
• Fundsprimarilyearmarkedforcommercializa7onofJ-Plasma®andgrowthofcorebusiness
• Projectedcashflowneutralexi7ng2016
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GrowthStrategies
• Growcorebusinessatasustainablepace- Addnewproductsthatfitcorecompetencies
- LeverageOEMrela7onshipstogrowcurrentandnewproducts
- Con7nuetopenetratenewmarketsandexpandinterna7onally
• ScaleJ-Plasma®saleswithexis7ngcustomerbaseandnewtargetspecial7es
• CommittoongoingR&Dinvestmentstomaintainmarketleadershipandunlockporyoliovalue
• Ongoingfinancialdisciplinetoimprovemarginperformance
• Maintainasolidbalancesheettofundfuturegrowthini7a7ves
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FinancialAppendix
FinancialPosi1on:Assets
*All figures in thousands
22
June 30, December 31,2016 2015
(Unaudited)Current assets: Cash and cash equivalents $ 9,324 $ 11,805 Restricted cash 779 839 Trade accounts receivable, net 3,506 2,925 Inventories, net 6,415 5,957 Prepaid expenses and other current assets 536 516 Total current assets 20,560 22,042 Property and equipment, net 6,536 6,810 Brand name and trademark 1,510 1,510 Purchased technology and license rights, net 269 323 Goodwill 185 185 Deposits 123 123 Deferred tax asset 21 25 Other assets 386 430 Total assets $ 29,590 $ 31,448
FinancialPosi1on:Liabili1esandStockholders’Equity
23
June 30, December 31,2016 2015
(Unaudited)Current liabilities:Accounts payable $ 1,774 $ 1,214 Accrued payroll 378 321 Accrued vacation 380 228 Current portion of mortgage note payable 239 239 Accrued and other liabilities 1,844 2,119 Total current liabilities 4,615 4,121 Mortgage note payable, net of current portion 2,814 2,934 Notes payable 140 140 Deferred rents 17 18 Deferred tax liability 564 564 Derivative liabilities 139 267 Total liabilities 8,289 8,044 Commitments and Contingencies (see Notes 9 and 10) Stockholders' equity:Series B convertible preferred stock, par value $.001; 3,588,139 issued and 1,975,639 outstanding as of June 30, 2016 and December 31, 2015, respectively
2 2
Common stock, par value $.001 par value; 40,000,000 shares authorized; 27,194,251 issued and 27,051,172 outstanding as of June 30, 2016 and December 31, 2015, respectively
27 27
Additional paid-in capital 43,219 42,859 Accumulated deficit (21,947) (19,484) Total stockholders' equity 21,301 23,404 Total liabilities and stockholders' equity $ 29,590 $ 31,448
IncomeStatement
24
2016 2015 2016 2015
Sales $ 9,295 $ 7,274 $ 17,070 $ 13,402
Cost of sales 4,595 4,134 9,048 7,588
Gross profit 4,700 3,140 8,022 5,814
Other costs and expenses:
Research and development 592 505 1,259 951
Professional services 396 313 753 644
Salaries and related costs 2,200 1,868 4,300 3,821
Selling, general and administrative 2,022 2,002 4,213 4,219
Total other costs and expenses 5,210 4,688 10,525 9,635
Loss from operations (510) (1,548) (2,503) (3,821)
Interest expense, net (50) (39) (88) (80)
Change in fair value of liabilities, net 41 90 128 1,534
Total other income (expense), net (9) 51 40 1,454
Loss before income taxes (519) (1,497) (2,463) (2,367)
Income tax benefit, net -- -- -- (8)
Net loss $ (519) $ (1,497) $ (2,463) $ (2,375)
Accretion on convertible preferred stock -- -- -- (222)
Gain on conversion of warrants and preferred shares, net -- -- -- 13,956
Net income (loss) attributable to common shareholders $ (519) $ (1,497) $ (2,463) $ 11,359
Income (loss) per share
Basic (0.02) (0.06) (0.09) 0.53
Diluted (0.02) (0.06) (0.09) 0.41
Weighted average number of shares outstanding- basic 27,051 24,435 27,051 21,555
Weighted average number of shares outstanding - dilutive 27,051 24,435 27,051 24,251
June 30, June 30,
Three Months Ended Six Months Ended
Reconcilia1onBetweenGAAPandNon-GAAP
25
(Amounts in '000's except earnings per share) 2016 2015 2016 2015
Net income/(loss) GAAP basis (519)$ (1,497)$ (2,463)$ (2,375)$ Accretion on convertible preferred stock - - - (222) Deemed dividend on conversion of warrants and Series A convertible preferred toSeries B convertible preferred stock - - - 13,956 Net income/(loss) attributable to common shareholders (519)$ (1,497)$ (2,463)$ 11,359$ Net income/(loss) per share - basic (GAAP basis) (0.02)$ (0.06)$ (0.09)$ 0.53$
Other non-GAAP adjustments: (Gain) on change in fair value of derivative liabilities (41)$ (90)$ (128)$ (1,534)$ Accretion on convertible preferred stock - - - 222 Deemed dividend on conversion of warrants and Series A convertible preferred to Series B convertible preferred stock - - - (13,956) Adjusted non-GAAP net income/(loss) (560)$ (1,587)$ (2,591)$ (3,909)$
Income/(loss) per share - basic on: (Note 1)
(Gain) on change in fair value of derivative liabilities - - (0.01) (0.07) Accretion on convertible preferred stock - - - 0.01 Gain on conversion of warrants and Series A convertible preferred to Series B convertible preferred stock - - - (0.65) Adjusted non-GAAP net (loss) per share -basic (0.02)$ (0.06)$ (0.10)$ (0.18)$
Weighted average number of shares outstanding - basic 27,051 24,435 27,051 21,555Weighted average number of shares outstanding - diluted 27,051 24,435 27,051 24,251
Six Months EndedJune 30,
Three Months EndedJune 30,
(Note 1) Amounts reflected in the presentation of EPS calculations may be impacted by rounding
J-Plasma®US-OnlyMarketpage1of2
Sources:CDC,NIH,APGO,ASPS,ASAPS,AHA*(5,000hospitals)26
GYNMarketProcedures #ofAnnualProcedures ASP
Endometriosis 600,000 $375 $225,000,000
Adhesiolysis 300,000 $375 $112,500,000
Myomectomy 65,000 $375 $24,375,000
Condylomas 360,000 $375 $135,000,000
Cesarean(Repeat) 280,000 $375 $105,000,000
Hysterectomy 433,000 $375 $162,000,000TotalGYNProcedures 2,038,000 $375 $764,250,000
Capital* 5,000 $25,000 $125,000,000TotalGYNAvailableMarket $889,250,000
J-Plasma®US-OnlyMarketpage2of2
Sources:CDC,NIH,APGO,ASPS,ASAPS,AHA*(5,000hospitals) 27
Plas7cMarket
TotalAvailableMarket
ProcedureType #ofAnnualProcedures ASP
SurgicalPlas7csProcedures 1,947,038 $375 $730,139,250Aesthe7csPlas7csProcedures 695,171 $375 $260,689,125
TotalPlas7csProcedures 2,642,209 $375 $990,828,375
Capital* 5,000 $25,000 125,000,000TotalPlas7cAvailableMarket $1,115,828,375
GYN:TargetedProcedures 2,038,000 $375 $764,250,000Capital 5,000 $25,000 $125,000,000
Plas7c:TargetedProcedures 2,642,209 $375 $990,828,375Capital 5,000 $25,000 $125,000,000
TotalAvailableMarket 4,685,209 $2,005,078,375