<SEC-DOCUMENT>0001477932-15-002958.txt : 20150508
<SEC-HEADER>0001477932-15-002958.hdr.sgml : 20150508
<ACCEPTANCE-DATETIME>20150508130050
ACCESSION NUMBER:		0001477932-15-002958
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20150508
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20150508
DATE AS OF CHANGE:		20150508

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BOVIE MEDICAL Corp
		CENTRAL INDEX KEY:			0000719135
		STANDARD INDUSTRIAL CLASSIFICATION:	SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
		IRS NUMBER:				112644611
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31885
		FILM NUMBER:		15845498

	BUSINESS ADDRESS:	
		STREET 1:		4 MANHATTANVILLE ROAD, SUITE 106
		CITY:			PURCHASE
		STATE:			NY
		ZIP:			10577
		BUSINESS PHONE:		800-537-2790

	MAIL ADDRESS:	
		STREET 1:		4 MANHATTANVILLE ROAD, SUITE 106
		CITY:			PURCHASE
		STATE:			NY
		ZIP:			10577

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BOVIE MEDICAL CORP
		DATE OF NAME CHANGE:	19990216

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AN CON GENETICS INC
		DATE OF NAME CHANGE:	19920703
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<p style="text-align: center; margin: 0px;"><font style="font-size: 12pt;"><b>UNITED STATES<br />SECURITIES AND EXCHANGE COMMISSION</b>&#160;</font></p>
<p style="text-align: center; margin: 0px;"><font style="font-size: 12pt;"><b>Washington</b><b>, DC 20549</b></font></p>
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<p style="text-align: center; margin: 0px;"><font style="font-size: 18pt;"><b>FORM 8-K</b></font></p>
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<p style="text-align: center; margin: 0px;"><b>CURRENT REPORT</b></p>
<p style="text-align: center; margin: 0px;"><b><b>PURSUANT </b></b><b>TO SECTION 13 OR 15(D) OF THE</b></p>
<p style="text-align: center; margin: 0px;"><b>SECURITIES EXCHANGE ACT OF 1934</b></p>
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<p style="text-align: center; margin: 0px;"><u style="line-height: 1;"><b>May 8, 2015</b></u></p>
<p style="text-align: center; margin: 0px;">Date of Report (Date of earliest event reported)</p>
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<p style="text-align: center; font: 10pt TIMES NEW ROMAN; margin: 0px;"><font style="font-size: 18pt;"><strong>BOVIE MEDICAL CORPORATION</strong></font></p>
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<p style="text-align: center; font: 10pt TIMES NEW ROMAN; margin: 0px;">(Exact name of registrant as specified in its Charter)</p>
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<p style="margin: 0px;"><b>Delaware</b></p>
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<p style="margin: 0px;"><b>012183</b></p>
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<p style="margin: 0px;"><b>11-2644611</b></p>
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<p style="margin: 0px;">(State or other jurisdiction of incorporation)</p>
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<p style="margin: 0px;">&#160;</p>
<p style="text-align: center; margin: 0px;"><b>4 Manhattanville Road, Suite 106<br /></b><u style="line-height: 1;"><b>Purchase, New York 10577</b></u></p>
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<p style="text-align: center; margin: 0px;">&#160;</p>
<p style="text-align: center; margin: 0px;"><u style="line-height: 1;"><b>(914) 468-4009</b></u></p>
<p style="text-align: center; margin: 0px;">Registrant's telephone number, including area code</p>
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<p style="text-align: center; margin: 0px;">_____________________________________________&#160;</p>
<p style="text-align: center; margin: 0px;">(Former name or former address, if changed since last report)</p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</p>
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<p style="margin: 0px;">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</p>
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<p style="margin: 0px;">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</p>
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<p style="margin: 0px;">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</p>
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<p style="margin: 0px;">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</p>
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<p style="margin: 0px;"><b>Item 2.02</b> <b>Results of Operations and Financial Condition</b>&#160;</p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;">On May 8, 2015, Bovie Medical Corporation (the &#8220;Company&#8221;) issued a press release reporting on its results of operations for the first quarter ended March 31, 2015. A copy of that press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.</p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;"><b>Item 9.01</b> <b>Financial Statements and Exhibits</b></p>
<p style="margin: 0px;"><b></b>&#160;</p>
<p style="margin: 0px;"><strong>(d)</strong></p>
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<p style="margin: 0px;"><strong>Exhibit No.</strong></p>
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<td style="border-bottom: black 1pt solid;" valign="top" width="90%">
<p style="margin: 0px;"><strong>Description</strong></p>
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<p style="margin: 0px;">99.1</p>
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<p style="margin: 0px;">Press release dated May 8, 2015.</p>
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<p style="margin: 0px;" align="center"><strong>SIGNATURES</strong></p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px; text-indent: 30px;">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.&#160;</p>
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<td colspan="2"><font style="font: 10pt TIMES NEW ROMAN;"><strong>BOVIE MEDICAL CORPORATION</strong></font></td>
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<td><font style="font: 10pt TIMES NEW ROMAN;">Date: May 8, 2015</font></td>
<td><font style="font: 10pt TIMES NEW ROMAN;">By:</font></td>
<td style="border-bottom: black 1px solid;"><em>/s/ Robert Gershon</em></td>
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<td><font style="font: 10pt TIMES NEW ROMAN;">Robert Gershon</font></td>
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<td><font style="font: 10pt TIMES NEW ROMAN;"><font style="font: 10pt TIMES NEW ROMAN;"></font></font>
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<p style="text-align: right; margin: 0px;" align="center"><strong>EXHIBIT 99.1</strong></p>
<p style="margin: 0px;" align="center">&#160;</p>
<p style="text-align: center; margin: 0px;" align="center"><font style="font-size: 14pt;">Bovie Medical Reports First Quarter 2015 Results</font></p>
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<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;"><font style="font-size: 10pt; font-family: Symbol;">&#183;</font></p>
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<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;">Strong sales momentum achieved by J-Plasma&#174;</p>
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<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;"><font style="font-size: 10pt; font-family: Symbol;">&#183;</font></p>
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<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;">Gross margin was 43.6%</p>
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<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;"><font style="font-size: 10pt; font-family: Symbol;">&#183;</font></p>
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<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;">Higher core products sales partially offset the anticipated reduction in OEM revenues</p>
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<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;"><font style="font-size: 10pt; font-family: Symbol;">&#183;</font></p>
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<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;">Net proceeds of equity offering to fund future growth</p>
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<p><strong>J-Plasma&#174; Update&#160;</strong></p>
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<p style="margin: 0cm 0cm 0pt;"><font style="font-size: 10pt; font-family: Symbol;">&#183;</font></p>
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<p style="margin: 0cm 0cm 0pt;"><font style="font-size: 10pt;">First quarter sales of $283,370, 35% ahead of full year 2014 sales</font></p>
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<p style="margin: 0cm 0cm 0pt;"><font style="font-size: 10pt; font-family: Symbol;">&#183;</font></p>
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<p style="margin: 0cm 0cm 0pt;"><font style="font-size: 10pt;">21 ordering accounts, up from 18 at the end of 2014</font></p>
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<p style="margin: 0cm 0cm 0pt;"><font style="font-size: 10pt; font-family: Symbol;">&#183;</font></p>
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<p style="margin: 0cm 0cm 0pt;"><font style="font-size: 10pt;">Systems approved by 35 Hospital Value Analysis Committees (VACs)</font></p>
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<p>CLEARWATER, Fl. &#8211; May 8, 2015- Bovie Medical (NYSE:BVX), a maker of medical devices and supplies and the developer of J-Plasma&#174;, a patented new surgical product, today announced results for the first quarter ended March 31, 2015.</p>
<p><u style="line-height: 1;"><strong>Management Comments&#160;</strong></u></p>
<p style="margin: 0px;">&#8220;First quarter 2015 was a period of strong execution for Bovie across key metrics,&#8221; said Robert L. Gershon, Chief Executive Officer. &#8220;We continued to post year-over-year growth in core product sales, led by electrodes and medical lighting, which partially mitigated the impact of lower OEM revenues, where several projects underway are not scheduled to go into production until later this year.</p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;">&#8220;Importantly, this was a very strong quarter for J-Plasma&#174; sales, which exceeded full year 2014 sales by over 35%, a testament to the growing awareness and adoption of the product. At the end of the period we had 21 ordering accounts, defined as accounts that have adopted the technology as evidenced by placing re-orders of J-Plasma&#174;. Our systems have been approved by 35 Hospital Value Analysis Committees (VACs) and are currently being evaluated by an additional 34 throughout the country, setting the stage for continued positive momentum.</p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;">&#8220;Approximately 50% of the year-on-year increase in first quarter operating expenses was directly related to the commercialization of J-Plasma&#174; and to R&amp;D spending to drive new product development. Based on our current portfolio, this spending level is expected to remain relatively constant throughout the remaining quarters of 2015. The net proceeds raised in our recent public offering provide us with financial flexibility and will be used to support our growth initiatives.&#8221;</p>
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<p style="margin: 0px;">&#160;&#160;</p>
<p style="margin: 0px;"><b><u style="line-height: 1;">First Quarter 2015 Results</u></b></p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;">First quarter sales were $6.1 million, a 5.5% decline from the $6.5 million reported in last year&#8217;s first quarter, as higher core product and J-Plasma&#174; sales only partly offset the anticipated reduction in OEM revenues. Gross margin expanded to 43.6% from 42.5%.</p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;">Operating expenses increased by 83% year-on-year as a result of significantly higher spending levels to accelerate the commercialization of J-Plasma&#174;, expand R&amp;D activities, and build the infrastructure needed to support Bovie&#8217;s future growth. The operating loss was $2.3 million compared to an operating profit of $58,000 in the first quarter of 2014.</p>
<p style="margin: 0px;">&#160;&#160;&#160;</p>
<p style="margin: 0px;">The Company had GAAP income of $12.9 million, or $0.57 per diluted share. This compares to GAAP loss of $9.8 million in last year&#8217;s first quarter. Both quarters were impacted by mark-to-market fair value of issued common stock purchase warrants. Exclusive of these non-cash gains and losses, the Company would have reported a net loss of $2.5 million vs a loss of $212,000 last year.</p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;"><b><u style="line-height: 1;">Recent Developments </u></b></p>
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<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;">On March 31, 2015, the Company completed an underwritten public offering of 5,218,749 shares of its common stock, including an over-allotment option, at a price to the public of $2.50 per share. The estimated net proceeds from the offering were approximately $11.5 million. Great Point Partners subscribed to the public offering as did other well-known institutional healthcare investors.</p>
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<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;"><font style="font-size: 10pt; font-family: Symbol;">&#183;</font></p>
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<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;">Upon the completion of the above-mentioned public offering, Great Point Partners, LLC agreed to convert its holdings of 3.5 million shares of the Company&#8217;s Series A 6% Convertible Preferred Stock and warrants to purchase up to 5,250,000 shares of Bovie&#8217;s common stock into 3,588,139 shares of the Company&#8217;s newly-issued Series B Convertible Preferred Stock, which is convertible into an aggregate of 7,176,278 shares of the Company&#8217;s common stock.</p>
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<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;">&#160;&#160;</p>
<p style="margin: 0px;">Commenting on these developments, Mr. Gershon said, &#8220;We took advantage of market conditions to raise the funds needed to accelerate the commercialization of our transformational J-Plasma&#174; product and to gain the resources to pursue additional product development opportunities. We are pleased to have built a base of institutional ownership through this offering, and that we were able to reach an agreement with Great Point that will enable our future net income results to more closely track our operating progress.&#8221;</p>
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</td>
<td valign="top">
<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;">Mr. Charles Orsatti has joined the Board as an independent director effective May 6, 2015, replacing Ian Sheffield who is stepping down as a director in connection with his departure from Great Point Partners (GPP). Mr. Orsatti comes to Bovie with more than 35 years of experience at the executive management level in public and private medical device companies, both in the United States and Europe, with an emphasis on start-up and high growth businesses. He is currently chairman and a director of the Biotronic Neuronetwork, a provider of inter-operative neurological monitoring services. Previously, Mr. Orsatti served as a board member of Angiodynamics, SRI Surgical, Ossur Americas, LTD, and dj Orthopedics, following a successful career in private equity and as CEO of Fairfield Medical Products Corporation and Coloplast, Inc.</p>
</td>
</tr>

</table>
<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;">&#160;&#160;</p>
<p style="margin: 0px;">&#8220;We are pleased to welcome Charles Orsatti to the Bovie Board. Charles&#8217; board credentials are supported by over 20 years of direct executive management experience in the healthcare field, which will be invaluable as we scale up our business in the coming years,&#8221; Mr. Gershon said.</p>
<p style="margin: 0px;">&#160;</p>
<table id="tableid5" style="width: 100%; font: 10pt TIMES NEW ROMAN;" cellspacing="0" cellpadding="0" border="0">

<tr>
<td>&#160;</td>
</tr>
<tr>
<td>
<div class="rcpn" align="center"><font size="2" face="Times New Roman, Times, serif">2</font></div>
<div class="hpbhr" style="font-size: 1pt; width: 100%;"></div>
<hr color="#000000" size="1" width="100%" noshade="noshade" />
<div style="page-break-after: always; line-height: 0px; width: 100%;"></div>
</td>
</tr>
<tr>
<td>
<div class="hdr" style="font-size: 1pt; width: 100%;"></div>
</td>
</tr>

</table>
<p style="margin: 0px;">&#160;&#160;</p>
<p style="margin: 0px;"><u style="line-height: 1;"><b>Summary and Outlook</b></u></p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;"><b>&#8220;</b>We believe that the key elements are in place for the effective execution of our growth strategy in 2015, led by full commercialization of J-Plasma&#174; and related products. Specifically, we are targeting:</p>
<p style="margin: 0px;">&#160;</p>
<table id="tableid6" style="width: 100%; text-align: justify; font: 10pt TIMES NEW ROMAN; margin: auto;" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="text-align: center;" valign="top" width="60">
<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;"><font style="font-size: 10pt; font-family: Symbol;">&#183;</font></p>
</td>
<td valign="top">
<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;">An increase in the number of ordering accounts to 125 from the current 21</p>
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="60">&#160;</td>
<td valign="top">&#160;</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="60">
<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;"><font style="font-size: 10pt; font-family: Symbol;">&#183;</font></p>
</td>
<td valign="top">
<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;">To reach 250 surgeons using J-Plasma&#174; compared to 41 today</p>
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="60">&#160;</td>
<td valign="top">&#160;</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="60">
<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;"><font style="font-size: 10pt; font-family: Symbol;">&#183;</font></p>
</td>
<td valign="top">
<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;">The expansion of our direct sales force to 20 from 16</p>
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="60">&#160;</td>
<td valign="top">&#160;</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="60">
<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;"><font style="font-size: 10pt; font-family: Symbol;">&#183;</font></p>
</td>
<td valign="top">
<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;">Publication of 10-15 independent white papers, including the 5 published in 2014</p>
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="60">&#160;</td>
<td valign="top">&#160;</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="60">
<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;"><font style="font-size: 10pt; font-family: Symbol;">&#183;</font></p>
</td>
<td valign="top">
<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;">An increase in the number of key opinion leaders speaking on J-Plasma&#174; to 10-15 from 8</p>
</td>
</tr>

</table>
<p style="font: 10pt TIMES NEW ROMAN; margin: 0px;">&#160;&#160;</p>
<p style="margin: 0px;">&#8220;At the same time, we are working toward building our core business at a strong, sustainable pace. This involves making ongoing R&amp;D investments to reinforce our market leadership and unlock the value of our product and patent portfolio, expanding internationally, and addressing new markets,&#8221; Mr. Gershon concluded.</p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;"><b><u style="line-height: 1;">Conference Call Details </u></b></p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;">The Company&#8217;s management will host a conference call on Friday, May 8, 2015 at 9am Eastern Time to discuss latest corporate developments. Following management&#8217;s formal remarks, there will be a question and answer session.</p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;">To listen to the call by phone, interested parties within the U.S. should call 1-888-349-0106. International callers should call 1-412-902-0131. All parties should ask for the Bovie Medical Corporation call. The conference call will also be available through a live webcast at Bovie Medical Corporation&#8217;s website or at http://services.choruscall.com/links/bvx150508.html</p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;">A replay of the call will be available approximately one hour after the end of the call through May 16, 2015. The replay can be accessed via Bovie Medical Corporation&#8217;s website or by dialing 1-877-344-7529 for U.S. callers or 1-412-317-0088 for International callers and using the replay access code 10064668.</p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;"><b>Investor Relations Contacts:</b>&#160;</p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px 0px 0px 30px;">MBS Value Partners&#160;</p>
<p style="margin: 0px 0px 0px 30px;">Lynn Morgen and Hugh Collins&#160;</p>
<p style="margin: 0px 0px 0px 30px;">212.750.5800&#160;</p>
<p style="margin: 0px 0px 0px 30px;">investor.relations@boviemed.com</p>
<p style="margin: 0px;">&#160;</p>
<table id="tableid7" style="width: 100%; font: 10pt TIMES NEW ROMAN;" cellspacing="0" cellpadding="0" border="0">

<tr>
<td>&#160;</td>
</tr>
<tr>
<td>
<div class="rcpn" align="center"><font size="2" face="Times New Roman, Times, serif">3</font></div>
<div class="hpbhr" style="font-size: 1pt; width: 100%;"></div>
<hr color="#000000" size="1" width="100%" noshade="noshade" />
<div style="page-break-after: always; line-height: 0px; width: 100%;"></div>
</td>
</tr>
<tr>
<td>
<div class="hdr" style="font-size: 1pt; width: 100%;"></div>
</td>
</tr>

</table>
<p style="margin: 0px;">&#160;&#160;</p>
<p style="margin: 0px;"><b>About Bovie Medical Corporation</b></p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;">Bovie Medical Corporation is a leading maker of medical devices and supplies as well as the developer of J-Plasma&#174;, a patented new plasma-based surgical product for cutting and coagulation. J-Plasma&#174; utilizes a helium ionization process to produce a stable, focused beam of ionized gas that provides surgeons with greater precision, minimal invasiveness and an absence of conductive currents through the patient during surgery. Bovie Medical Corporation is also a leader in the manufacture of a range of electrosurgical products and technologies, marketed through both private labels and the Company&#8217;s own well-respected brands (Bovie&#174;, Aaron&#174;, IDS&#8482; and ICON&#8482;) to distributors worldwide. The Company also leverages its expertise through original equipment manufacturing (OEM) agreements with other medical device manufacturers. For further information about the Company&#8217;s current and new products, please refer to the Investor Relations section of Bovie Medical Corporation&#8217;s website&#160;www.boviemed.com.</p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;"><b>Cautionary Statement on Forward-Looking Statements</b><b></b></p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;">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.</p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;">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&#8217;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&#8217;s filings with the Securities and Exchange Commission including the Company&#8217;s Report on Forms 10-K for the year ended December&#160;31, 2014. 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.</p>
<p style="margin: 0px;">&#160;</p>
<table id="tableid8" style="width: 100%; font: 10pt TIMES NEW ROMAN;" cellspacing="0" cellpadding="0" border="0">

<tr>
<td>&#160;</td>
</tr>
<tr>
<td>
<div class="rcpn" align="center"><font size="2" face="Times New Roman, Times, serif">4</font></div>
<div class="hpbhr" style="font-size: 1pt; width: 100%;"></div>
<hr color="#000000" size="1" width="100%" noshade="noshade" />
<div style="page-break-after: always; line-height: 0px; width: 100%;"></div>
</td>
</tr>
<tr>
<td>
<div class="hdr" style="font-size: 1pt; width: 100%;"></div>
</td>
</tr>

</table>
<p style="margin: 0px;">&#160;&#160;</p>
<p style="text-align: center; margin: 0px;"><b>BOVIE MEDICAL CORPORATION</b></p>
<p style="text-align: center; margin: 0px;"><b>CONSOLIDATED STATEMENTS OF OPERATIONS</b></p>
<p style="text-align: center; margin: 0px;"><b>FOR THE THREE MONTHS ENDED MARCH 31, 2015 AND 2014<br />(unaudited) (in thousands except per share data)</b></p>
<p style="margin: 0px;">&#160;</p>
<table id="fftableid9" style="width: 100%; text-align: justify; font: 10pt TIMES NEW ROMAN; margin: auto;" cellspacing="0" cellpadding="0" border="0">

<tr height="15">
<td valign="bottom" align="left"></td>
<td align="left">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" colspan="6" align="center"><b>Three Months Ended March 31, </b><b></b><b></b></td>
<td align="left">&#160;</td>
</tr>
<tr height="15">
<td valign="bottom" align="left"></td>
<td align="left">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" colspan="2" align="center"><b>2015</b></td>
<td align="left">&#160;</td>
<td align="left">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" colspan="2" align="center"><b>2014</b></td>
<td align="left">&#160;</td>
</tr>
<tr style="background-color: white;" height="15">
<td valign="bottom">
<p style="text-align: left; margin: 0px;" align="right">&#160;</p>
</td>
<td width="1%"></td>
<td valign="bottom" width="1%"></td>
<td valign="bottom" width="9%" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom" width="1%"></td>
<td width="1%"></td>
<td valign="bottom" width="1%"></td>
<td valign="bottom" width="9%" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom" width="1%"></td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="text-align: left; margin: 0px;" align="right">Sales</p>
</td>
<td width="1%">&#160;</td>
<td valign="bottom" width="1%">$</td>
<td id="ffc" valign="bottom" width="9%" align="right">
<p style="margin: 0pt;">6,128</p>
</td>
<td valign="bottom" width="1%">&#160;</td>
<td width="1%">&#160;</td>
<td valign="bottom" width="1%">$</td>
<td id="ffc" valign="bottom" width="9%" align="right">
<p style="margin: 0pt;">6,482</p>
</td>
<td valign="bottom" width="1%">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="border-bottom: black 0pt solid;" valign="bottom">Cost of sales</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">3,454</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">3,726</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td style="padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom">Gross profit</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">2,674</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">2,756</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom"></td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right">&#160;</p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right">&#160;</p>
</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">Other costs and expenses:</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right">&#160;</p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right">&#160;</p>
</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom">Research and development</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">446</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">332</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td style="padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom">Professional services</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">331</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">258</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom">Salaries and related costs</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">1,952</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">907</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td style="border-bottom: black 0pt solid; padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom">Selling, general and administrative</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">2,217</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">1,201</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="border-bottom: black 0pt solid; padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom">Total other costs and expenses</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">4,946</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">2,698</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td style="padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom"><strong>&#160;</strong></td>
<td></td>
<td valign="bottom" align="left"></td>
<td class="para" valign="bottom" align="right">
<p style="margin: 0pt;"><b>&#160;</b></p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;"><b>&#160;</b></p>
</td>
<td></td>
<td valign="bottom"></td>
<td valign="bottom" align="right">
<p style="margin: 0pt;"><b>&#160;</b></p>
</td>
<td valign="bottom"></td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="border-bottom: black 0pt solid; padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom"><strong>Loss from operations</strong></td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom" align="left"></td>
<td id="ffc" class="para" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;"><b>(2,272</b></p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom" align="left">
<p style="margin: 0pt;"><b>)</b></p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;"><b>58</b></p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom"></td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right"><b>&#160;</b></p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right"><b>&#160;</b></p>
</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">Interest expense, net</td>
<td>&#160;</td>
<td valign="bottom" align="left"></td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(40<strong></strong></p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)<strong></strong></p>
</td>
<td>&#160;</td>
<td valign="bottom" align="left"></td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(28<strong></strong></p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)<strong></strong></p>
</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td style="border-bottom: black 0pt solid;" valign="bottom">Change in fair value of liabilities, net</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">1,444<strong></strong></p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom" align="left"></td>
<td id="ffc" class="para" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">(9,599<b></b></p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom" align="left">
<p style="margin: 0pt;">)<b></b></p>
</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">Total other expense, net</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">1,404<b><b></b></b></p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom" align="left"></td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(9,627<b><b></b></b></p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)<b><b></b></b></p>
</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom"></td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right"><b>&#160;</b></p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right"><b>&#160;</b></p>
</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">Loss before income taxes</td>
<td>&#160;</td>
<td valign="bottom" align="left"></td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(868<strong></strong></p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)<strong></strong></p>
</td>
<td>&#160;</td>
<td valign="bottom" align="left"></td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(9,569<strong></strong></p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)<strong></strong></p>
</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td style="border-bottom: black 0pt solid; padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom">Provision for income taxes, net</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom" align="left"></td>
<td id="ffc" class="para" style="border-bottom: black 1px solid;" valign="bottom" align="right">(8</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom" align="left">)</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom" align="left"></td>
<td id="ffc" class="para" style="border-bottom: black 1px solid;" valign="bottom" align="right">(38</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom"></td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right"><b>&#160;</b></p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right"><b>&#160;</b></p>
</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td style="border-bottom: black 0pt solid;" valign="bottom"><strong>Net loss</strong></td>
<td style="border-bottom: black 0pt solid;"></td>
<td style="border-bottom: black 1px solid;" valign="bottom" align="left">
<p style="margin: 0pt;"><b>$</b></p>
</td>
<td id="ffc" class="para" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;"><b>(876</b></p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom" align="left">
<p style="margin: 0pt;"><b>$</b></p>
</td>
<td id="ffc" class="para" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;"><b>(9,607</b></p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom" align="left">
<p style="margin: 0pt;"><b>)</b></p>
</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="text-indent: 30px;" valign="bottom"><strong></strong></td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right"><b><b>&#160;</b></b></p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right"><b><b>&#160;</b></b></p>
</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td style="padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom"><strong></strong>Accretion on convertible preferred stock</td>
<td>&#160;</td>
<td valign="bottom" align="left"></td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(222</p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
<td>&#160;</td>
<td valign="bottom" align="left"></td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(204<strong></strong></p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)<strong></strong></p>
</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="border-bottom: black 0pt solid;" valign="bottom">Deemed dividend on conversion of warrants and Series A preferred stock to Series B convertible preferred stock</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">13,956</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;"><b>-</b></p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td style="border-bottom: black 0pt solid; padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom"><strong>Net Income (loss) attributable to common shareholders</strong></td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 3px double;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 3px double;" valign="bottom" align="right">
<p style="margin: 0pt;"><b>12,858</b></p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 3px;" valign="bottom">&#160;</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 3px double;" valign="bottom" align="left"></td>
<td id="ffc" class="para" style="border-bottom: black 3px double;" valign="bottom" align="right">
<p style="margin: 0pt;"><b>(9,811</b></p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 3px;" valign="bottom" align="left">
<p style="margin: 0pt;"><b>)</b></p>
</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="text-indent: 30px;" valign="bottom"><strong></strong></td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right"><b>&#160;</b></p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right"><b>&#160;</b></p>
</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td style="padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom"><strong></strong>Income (loss) per share:</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right"><b>&#160;</b></p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right"><b>&#160;</b></p>
</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom"><strong></strong>Basic</td>
<td>&#160;</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">$<strong></strong></p>
</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">0.69<strong></strong></p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">$</p>
</td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(0.55</p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td style="padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom"><strong></strong>Diluted</td>
<td>&#160;</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">$<strong></strong></p>
</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">0.57<strong></strong></p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">$<strong></strong></p>
</td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(0.55<strong></strong></p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)<strong></strong></p>
</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom"><strong></strong>Weighted average number of shares:</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right"><b>&#160;</b></p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0px;" align="right"><b>&#160;</b></p>
</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">Basic</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">18,615</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">17,684<strong></strong></p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="padding-left: 0px; margin-left: 0px; text-indent: 0px;" valign="bottom"><strong></strong>Diluted</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">20,470</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">17,684<strong></strong></p>
</td>
<td valign="bottom">&#160;</td>
</tr>

</table>
<p style="margin: 0px;">&#160;&#160;&#160;</p>
<table id="tableid10" style="width: 100%; font: 10pt TIMES NEW ROMAN;" cellspacing="0" cellpadding="0" border="0">

<tr>
<td>&#160;</td>
</tr>
<tr>
<td>
<div class="rcpn" align="center"><font size="2" face="Times New Roman, Times, serif">5</font></div>
<div class="hpbhr" style="font-size: 1pt; width: 100%;"></div>
<hr color="#000000" size="1" width="100%" noshade="noshade" />
<div style="page-break-after: always; line-height: 0px; width: 100%;"></div>
</td>
</tr>
<tr>
<td>
<div class="hdr" style="font-size: 1pt; width: 100%;"></div>
</td>
</tr>

</table>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;" align="center"><b>BOVIE MEDICAL CORPORATION<br />CONSOLIDATED BALANCE SHEETS<br />(unaudited) (in thousands)</b></p>
<p style="margin: 0px;">&#160;</p>
<table id="fftableid11" style="width: 100%; text-align: justify; font: 10pt TIMES NEW ROMAN; margin: auto;" cellspacing="0" cellpadding="0" border="0">

<tr height="15">
<td valign="bottom" align="left">&#160;</td>
<td align="left">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" colspan="2" align="center"><b><b>March 31,</b></b>
<p style="margin: 0pt;"><b>2015</b></p>
</td>
<td align="left">&#160;</td>
<td align="left">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" colspan="2" align="center"><b><b>December 31,</b></b>
<p style="margin: 0pt;"><b>2014</b></p>
</td>
<td align="left">&#160;</td>
</tr>
<tr height="15">
<td style="text-indent: 30px;" valign="bottom"></td>
<td>&#160;</td>
<td valign="bottom" colspan="2">
<p style="margin: 0px;" align="center"><strong>(Unaudited)</strong></p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom" colspan="2"></td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15">
<td valign="bottom">
<p style="margin: 0px;"><b>Assets</b></p>
</td>
<td width="1%">&#160;</td>
<td width="1%">&#160;</td>
<td id="ffc" valign="bottom" width="9%" align="right"></td>
<td width="1%">&#160;</td>
<td width="1%">&#160;</td>
<td width="1%">&#160;</td>
<td id="ffc" valign="bottom" width="9%" align="right">&#160;</td>
<td width="1%">&#160;</td>
</tr>
<tr height="15">
<td valign="bottom">
<p style="margin: 0px;">Current assets:</p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
</tr>
<tr height="15">
<td valign="bottom">
<p style="margin: 0px;">&#160;</p>
</td>
<td></td>
<td></td>
<td valign="bottom" align="right"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" align="right"></td>
<td></td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">Cash and cash equivalents</p>
</td>
<td>&#160;</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">$</p>
</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">15,396</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">$</p>
</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">5,733</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Restricted cash</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">839</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">899</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">Trade accounts receivable, net</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">1,398</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">1,992</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Inventories, net</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">6,130</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">5,727</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">Current portion of deposits</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">286</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">210</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="border-bottom: black 0pt solid;" valign="bottom">
<p style="margin: 0px;">Prepaid expenses and other current assets</p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">1,011</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">804</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">&#160;</p>
</td>
<td></td>
<td valign="bottom"></td>
<td valign="bottom" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom"></td>
<td></td>
<td valign="bottom"></td>
<td valign="bottom" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom"></td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="border-bottom: black 0pt solid;" valign="bottom">
<p style="margin: 0px;">Total current assets</p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 3px double;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 3px double;" valign="bottom" align="right">
<p style="margin: 0pt;">25,060</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 3px;" valign="bottom">&#160;</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 3px double;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 3px double;" valign="bottom" align="right">
<p style="margin: 0pt;">15,365</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 3px;" valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">&#160;</p>
</td>
<td></td>
<td valign="bottom"></td>
<td valign="bottom" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom"></td>
<td></td>
<td valign="bottom"></td>
<td valign="bottom" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom"></td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Property and equipment, net</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">7,011</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">6,947</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">Brand name and trademark</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">1,510</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">1,510</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Purchased technology and license rights, net</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">404</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">431</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">Deposits, net of current portion</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">164</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">165</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="border-bottom: black 0pt solid;" valign="bottom">
<p style="margin: 0px;">Other assets</p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">439</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">415</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">&#160;</p>
</td>
<td></td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom"></td>
<td></td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom"></td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="border-bottom: black 0pt solid;" valign="bottom">
<p style="margin: 0px;">Total assets</p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 3px double;" valign="bottom" align="left">
<p style="margin: 0pt;">$</p>
</td>
<td id="ffc" style="border-bottom: black 3px double;" valign="bottom" align="right">
<p style="margin: 0pt;">34,588</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 3px;" valign="bottom">&#160;</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 3px double;" valign="bottom" align="left">
<p style="margin: 0pt;">$</p>
</td>
<td id="ffc" style="border-bottom: black 3px double;" valign="bottom" align="right">
<p style="margin: 0pt;">24,833</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 3px;" valign="bottom">&#160;</td>
</tr>

</table>
<p style="margin: 0px;">&#160;</p>
<table id="tableid12" style="width: 100%; font: 10pt TIMES NEW ROMAN;" cellspacing="0" cellpadding="0" border="0">

<tr>
<td>&#160;</td>
</tr>
<tr>
<td>
<div class="rcpn" align="center"><font size="2" face="Times New Roman, Times, serif">6</font></div>
<div class="hpbhr" style="font-size: 1pt; width: 100%;"></div>
<hr color="#000000" size="1" width="100%" noshade="noshade" />
<div style="page-break-after: always; line-height: 0px; width: 100%;"></div>
</td>
</tr>
<tr>
<td>
<div class="hdr" style="font-size: 1pt; width: 100%;"></div>
</td>
</tr>

</table>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;" align="center"><b>BOVIE MEDICAL CORPORATION</b></p>
<p style="margin: 0px;" align="center"><b>CONSOLIDATED BALANCE SHEETS</b></p>
<p style="margin: 0px;" align="center"><b>(unaudited) (in thousands)</b></p>
<p style="margin: 0px;" align="center"><b><b><b></b></b></b>&#160;</p>
<table id="fftableid13" style="width: 100%; text-align: justify; font: 10pt TIMES NEW ROMAN; margin: auto;" cellspacing="0" cellpadding="0" border="0">

<tr height="15">
<td valign="bottom" align="left">&#160;</td>
<td align="left">&#160;</td>
<td id="ffc" style="border-bottom: black 1pt solid;" valign="bottom" colspan="2" align="center"><b>March 31,<br />2015</b></td>
<td align="left">&#160;</td>
<td align="left">&#160;</td>
<td id="ffc" style="border-bottom: black 1pt solid;" valign="bottom" colspan="2" align="center"><b>December 31,<br />2014</b></td>
<td align="left">&#160;</td>
</tr>
<tr height="15">
<td valign="bottom" align="left">
<p style="margin: 0px;"><b>Liabilities and Stockholders' Equity</b></p>
</td>
<td align="left">&#160;</td>
<td id="ffc" valign="bottom" colspan="2" align="center"><strong>(unaudited)</strong></td>
<td align="left">&#160;</td>
<td align="left">&#160;</td>
<td id="ffc" valign="bottom" colspan="2" align="center"><b></b></td>
<td align="left">&#160;</td>
</tr>
<tr height="15">
<td valign="bottom" align="left">
<p style="margin: 0px;">Current liabilities:</p>
</td>
<td align="left">&#160;</td>
<td id="ffc" valign="bottom" colspan="2" align="center"><b></b></td>
<td align="left">&#160;</td>
<td align="left">&#160;</td>
<td id="ffc" valign="bottom" colspan="2" align="center"><b></b></td>
<td align="left">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">Accounts payable</p>
</td>
<td width="1%">&#160;</td>
<td valign="bottom" width="1%" align="left">
<p style="margin: 0pt;">$</p>
</td>
<td id="ffc" valign="bottom" width="9%" align="right">
<p style="margin: 0pt;">1,876</p>
</td>
<td valign="bottom" width="1%">&#160;</td>
<td width="1%">&#160;</td>
<td valign="bottom" width="1%" align="left">
<p style="margin: 0pt;">$</p>
</td>
<td id="ffc" valign="bottom" width="9%" align="right">
<p style="margin: 0pt;">1,553</p>
</td>
<td valign="bottom" width="1%">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Accrued payroll</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">118</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">197</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">Accrued vacation</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">209</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">181</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Current portion of mortgage note payable</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">239</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">239</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">Deferred revenue</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">5</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">--</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="border-bottom: black 0pt solid;" valign="bottom">
<p style="margin: 0px;">Accrued and other liabilities</p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">1,629</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">1,596</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px; text-indent: 30px;">Total current liabilities</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">4,076</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">3,766</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">&#160;</p>
</td>
<td></td>
<td valign="bottom"></td>
<td valign="bottom" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom"></td>
<td></td>
<td valign="bottom"></td>
<td valign="bottom" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom"></td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">Mortgage note payable, net of current portion</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">3,113</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">3,173</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Deferred rents</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">22</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">23</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">Deferred tax liability</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">563</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">564</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="border-bottom: black 0pt solid;" valign="bottom">
<p style="margin: 0px;">Derivative liabilities</p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">622</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">12,613</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px; text-indent: 30px;">Total liabilities</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">8,396</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">20,139</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">&#160;</p>
</td>
<td></td>
<td></td>
<td valign="bottom" align="right"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" align="right"></td>
<td></td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">Commitments and Contingencies:</p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Series A 6% convertible preferred stock, par value $0.001; 3,500,000 shares authorized, zero issued and outstanding as of March 31, 2015</p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">--</p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">3,190</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom"></td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Stockholders' equity:</p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">&#160;</p>
</td>
<td></td>
<td></td>
<td valign="bottom" align="right"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" align="right"></td>
<td></td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Series B convertible preferred stock, par value $.001; 10,000,000 authorized, 3,588,139 issued and outstanding as of March 31, 2015</p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">4</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">--</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="text-align: justify; margin: 0px;">Common stock, par value $.001 par value; 40,000,000 shares authorized; 23,335,894 issued and 23,192,815 outstanding as of March 31, 2015 and 17,995,409 issued and 17,852,330 outstanding as of December 31, 2014, respectively</p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">23</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">18</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Additional paid-in capital</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">41,155</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">29,334</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">Accumulated deficit</p>
</td>
<td>&#160;</td>
<td style="border-bottom: black 1pt solid;" valign="bottom" align="left"></td>
<td id="ffc" class="para" style="border-bottom: black 1pt solid;" valign="bottom" align="right">
<p style="margin: 0pt;">(14,990</p>
</td>
<td style="padding-bottom: 1px;" valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
<td>&#160;</td>
<td style="border-bottom: black 1pt solid;" valign="bottom" align="left"></td>
<td id="ffc" class="para" style="border-bottom: black 1pt solid;" valign="bottom" align="right">
<p style="margin: 0pt;">(27,848</p>
</td>
<td style="padding-bottom: 1px;" valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">&#160;</p>
</td>
<td></td>
<td valign="bottom"></td>
<td valign="bottom" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom"></td>
<td></td>
<td valign="bottom"></td>
<td valign="bottom" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom"></td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px; text-indent: 30px;">Total stockholders' equity</p>
</td>
<td>&#160;</td>
<td style="border-bottom: black 1pt solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1pt solid;" valign="bottom" align="right">
<p style="margin: 0pt;">26,192</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td style="border-bottom: black 1pt solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1pt solid;" valign="bottom" align="right">
<p style="margin: 0pt;">1,504</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">&#160;</p>
</td>
<td></td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom"></td>
<td></td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom"></td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td style="border-bottom: black 0pt solid;" valign="bottom">
<p style="margin: 0px; text-indent: 30px;">Total liabilities and stockholders' equity</p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 3px double;" valign="bottom" align="left">
<p style="margin: 0pt;">$</p>
</td>
<td id="ffc" style="border-bottom: black 3px double;" valign="bottom" align="right">
<p style="margin: 0pt;">34,588</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 3px;" valign="bottom">&#160;</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 3px double;" valign="bottom" align="left">
<p style="margin: 0pt;">$</p>
</td>
<td id="ffc" style="border-bottom: black 3px double;" valign="bottom" align="right">
<p style="margin: 0pt;">24,833</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 3px;" valign="bottom">&#160;</td>
</tr>

</table>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;">&#160;</p>
<table id="tableid14" style="width: 100%; font: 10pt TIMES NEW ROMAN;" cellspacing="0" cellpadding="0" border="0">

<tr>
<td>&#160;</td>
</tr>
<tr>
<td>
<div class="rcpn" align="center"><font size="2" face="Times New Roman, Times, serif">7</font></div>
<div class="hpbhr" style="font-size: 1pt; width: 100%;"></div>
<hr color="#000000" size="1" width="100%" noshade="noshade" />
<div style="page-break-after: always; line-height: 0px; width: 100%;"></div>
</td>
</tr>
<tr>
<td>
<div class="hdr" style="font-size: 1pt; width: 100%;"></div>
</td>
</tr>

</table>
<p style="margin: 0px;">&#160;</p>
<p style="text-align: center; margin: 0px;"><b>BOVIE MEDICAL CORPORATION</b></p>
<p style="text-align: center; margin: 0px;"><b>RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL MEASURES<br />(unaudited) (in thousands except per share data)</b>&#160;</p>
<p style="margin: 0px;">&#160;</p>
<table id="fftableid15" style="width: 100%; text-align: justify; font: 10pt TIMES NEW ROMAN; margin: auto;" cellspacing="0" cellpadding="0" border="0">

<tr height="15">
<td valign="bottom" align="left">&#160;</td>
<td align="left">&#160;</td>
<td id="ffc" style="border-bottom: black 1pt solid;" valign="bottom" colspan="6" align="center"><b>Three Months Ended<br />March 31,</b><b></b><b></b></td>
<td align="left">&#160;</td>
</tr>
<tr height="15">
<td style="border-bottom: black 1px solid;" valign="bottom" align="left">
<p style="margin: 0px;"><strong><i>(Amounts in '000's except earnings per share)</i></strong></p>
</td>
<td align="left">&#160;</td>
<td id="ffc" style="border-bottom: black 1pt solid;" valign="bottom" colspan="2" align="center"><b>2015</b></td>
<td align="left">&#160;</td>
<td align="left">&#160;</td>
<td id="ffc" style="border-bottom: black 1pt solid;" valign="bottom" colspan="2" align="center"><b>2014</b></td>
<td align="left">&#160;</td>
</tr>
<tr style="background-color: white;" height="15">
<td valign="bottom">
<p style="margin: 0px;">&#160;</p>
</td>
<td width="1%"></td>
<td valign="bottom" width="1%" align="left">
<p style="margin: 0pt;">&#160;</p>
</td>
<td class="para" valign="bottom" width="9%" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom" width="1%" align="left">
<p style="margin: 0pt;">&#160;</p>
</td>
<td width="1%"></td>
<td valign="bottom" width="1%" align="left">
<p style="margin: 0pt;">&#160;</p>
</td>
<td class="para" valign="bottom" width="9%" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom" width="1%" align="left">
<p style="margin: 0pt;">&#160;</p>
</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">Net income/(loss) GAAP basis</p>
</td>
<td width="1%">&#160;</td>
<td valign="bottom" width="1%" align="left">
<p style="margin: 0pt;">$</p>
</td>
<td id="ffc" class="para" valign="bottom" width="9%" align="right">
<p style="margin: 0pt;">(876</p>
</td>
<td valign="bottom" width="1%" align="left">
<p style="margin: 0pt;">)</p>
</td>
<td width="1%">&#160;</td>
<td valign="bottom" width="1%" align="left">
<p style="margin: 0pt;">$</p>
</td>
<td id="ffc" class="para" valign="bottom" width="9%" align="right">
<p style="margin: 0pt;">(9,607</p>
</td>
<td valign="bottom" width="1%" align="left">
<p style="margin: 0pt;">)</p>
</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Accretion on convertible preferred stock</p>
</td>
<td>&#160;</td>
<td valign="bottom" align="left"></td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(222</p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
<td>&#160;</td>
<td valign="bottom" align="left"></td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(204</p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">Deemed dividend on conversion of warrants and Series A convertible preferred to</p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="border-bottom: black 0pt solid;" valign="bottom">
<p style="margin: 0px;">Series B convertible preferred stock</p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">13,956</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">-</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">Net income/(loss) attributable to common shareholders</p>
</td>
<td>&#160;</td>
<td valign="bottom">$</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">12,858</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom" align="left">$</td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(9,811</p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Net income/(loss) per share - basic (GAAP basis)</p>
</td>
<td>&#160;</td>
<td valign="bottom">$</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">0.69</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom" align="left">$</td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(0.55</p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">&#160;</p>
</td>
<td></td>
<td></td>
<td valign="bottom" align="right"></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" align="right"></td>
<td></td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Other non-GAAP adjustments:</p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px; text-indent: 30px;">(Gain)/loss on change in fair value of derivative liabilities</p>
</td>
<td>&#160;</td>
<td valign="bottom" align="left">$</td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(1,444</p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
<td>&#160;</td>
<td valign="bottom">$</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">9,599</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px; text-indent: 30px;">Deemed dividend on conversion of warrants and Series A convertible preferred to</p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td style="border-bottom: black 0pt solid;" valign="bottom">
<p style="margin: 0px; text-indent: 30px;">Series B convertible preferred stock</p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom" align="left"></td>
<td id="ffc" class="para" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">(13,956</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">-</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td style="border-bottom: black 0pt solid;" valign="bottom">
<p style="margin: 0px;">Adjusted non-GAAP net income/(loss)</p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 3px double;" valign="bottom" align="left">$</td>
<td id="ffc" class="para" style="border-bottom: black 3px double;" valign="bottom" align="right">
<p style="margin: 0pt;">(2,542</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 3px;" valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 3px double;" valign="bottom" align="left">$</td>
<td id="ffc" class="para" style="border-bottom: black 3px double;" valign="bottom" align="right">
<p style="margin: 0pt;">(212</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 3px;" valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom"></td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Income/(loss) per share - basic on: (Note 1)</p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px; text-indent: 30px;">(Gain)/loss on change in fair value of derivative liabilities</p>
</td>
<td>&#160;</td>
<td valign="bottom" align="left"></td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(0.08</p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">0.54</p>
</td>
<td valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px; text-indent: 30px;">Gain on conversion of warrants and Series A convertible preferred to</p>
</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td>&#160;</td>
<td id="ffc" valign="bottom" align="right">&#160;</td>
<td>&#160;</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td style="border-bottom: black 0pt solid;" valign="bottom">
<p style="margin: 0px; text-indent: 30px;">Series B convertible preferred stock</p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom" align="left"></td>
<td id="ffc" class="para" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">(0.75</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
<td style="border-bottom: black 0pt solid;">&#160;</td>
<td style="border-bottom: black 1px solid;" valign="bottom">&#160;</td>
<td id="ffc" style="border-bottom: black 1px solid;" valign="bottom" align="right">
<p style="margin: 0pt;">-</p>
</td>
<td style="border-bottom: black 0pt solid; padding-bottom: 1px;" valign="bottom">&#160;</td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Adjusted non-GAAP net (loss) per share -basic</p>
</td>
<td>&#160;</td>
<td valign="bottom" align="left">$</td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(0.14</p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
<td>&#160;</td>
<td valign="bottom" align="left">$</td>
<td id="ffc" class="para" valign="bottom" align="right">
<p style="margin: 0pt;">(0.01</p>
</td>
<td valign="bottom" align="left">
<p style="margin: 0pt;">)</p>
</td>
</tr>
<tr height="15" bgcolor="#cceeff">
<td valign="bottom">
<p style="margin: 0px;">&#160;</p>
</td>
<td></td>
<td valign="bottom"></td>
<td valign="bottom" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom"></td>
<td></td>
<td valign="bottom"></td>
<td valign="bottom" align="right">
<p style="margin: 0pt;">&#160;</p>
</td>
<td valign="bottom"></td>
</tr>
<tr height="15" bgcolor="#ffffff">
<td valign="bottom">
<p style="margin: 0px;">Weighted average number of shares outstanding - basic</p>
</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">18,615</p>
</td>
<td valign="bottom">&#160;</td>
<td>&#160;</td>
<td valign="bottom">&#160;</td>
<td id="ffc" valign="bottom" align="right">
<p style="margin: 0pt;">17,684</p>
</td>
<td valign="bottom">&#160;</td>
</tr>

</table>
<p style="margin: 0px;">&#160;&#160;</p>
<p style="margin: 0px;">(Note 1) Amounts reflected in the presentation of EPS calculations may be impacted by rounding</p>
<p style="margin: 0px;">&#160;</p>
<p style="margin: 0px;">&#160;</p>
<p style="text-align: center; margin: 0px;">8</p>
<hr color="#000000" size="1" width="100%" noshade="noshade" />
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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
