January  2016  

Safe  Harbor  Statement  

Certain  ma1ers  discussed  in  this  presenta7on  and  oral  statements  made  from  7me  to  7me  by  representa7ves  of  the  Company  may  cons7tute  forward-­‐looking  statements  within  the  meaning  of  the  Private  Securi7es  Li7ga7on  Reform  Act  of  1995  and  the  Federal  securi7es  laws.    Although  the  Company  believes  that  the  expecta7ons  reflected  in  such  forward-­‐looking  statements  are  based  upon  reasonable  assump7ons,  it  can  give  no  assurance  that  its  expecta7ons  will  be  achieved.  

Forward-­‐looking  informa7on  is  subject  to  certain  risks,  trends  and  uncertain7es  that  could  cause  actual  results  to  differ  materially  from  those  projected.    Many  of  these  factors  are  beyond  the  Company’s  ability  to  control  or  predict.    Important  factors  that  may  cause  actual  results  to  differ  materially  and  that  could  impact  the  Company  and  the  statements  contained  in  this  presenta7on  can  be  found  in  the  Company’s  filings  with  the  Securi7es  and  Exchange  Commission  including  the  Company’s  Reports  on  Forms  10-­‐Q  for  the  quarter  ended  September  30,  2015  and  10-­‐K  for  the  year  ended  December  31,  2014.  For  forward-­‐looking  statements  in  this  presenta7on,  the  Company  claims  the  protec7on  of  the  safe  harbor  for  forward-­‐looking  statements  contained  in  the  Private  Securi7es  Li7ga7on  Reform  Act  of  1995.    The  Company  assumes  no  obliga7on  to  update  or  supplement  any  forward-­‐looking  statements  as  a  result  of  new  informa7on,  future  events,  or  otherwise.  

Investment  Highlights

•  Stable  core  business  with  solid  growth  poten7al  -  Brands  recognized  worldwide  (Bovie®,  Aaron®,  IDS™,  ICON®)  -  Long-­‐standing  rela7onships  with  “Big  7”  distributors  

-  Premier  OEM  partnerships  

•  Transforma7onal  J-­‐Plasma®  surgical  product  targe7ng  large  and  growing  markets  

•  Robust  R&D  pipeline  –  significant  product  launches  planned  •  State-­‐of-­‐the-­‐art  manufacturing  facili7es  in  US  and  Europe;  

manufacturing  supplier  in  China  

•  Highly  experienced  management  team  

3  

Experienced  Management  Team

Execu1ve   Joined  Bovie   Experience  

Rob  Gershon  Chief  Execu+ve  Officer   December  2013  

Over  25  years  of  experience  in  health  care  

Jack  McCarthy  Chief  Commercializa+on  

Officer  March  2014  

Over  25  years  of  sales  and  marke7ng  experience    

Jay  Ewers  Chief  Financial  Officer   June  2014  

Over  30  years  of  financial  management  experience  

Todd  Hornsby  Vice  President  of  Sales   August  2014  

Over  14  years  of  medical  device  sales  

Shawn  Roman  Vice  President  of  Research  

&  Development  October  2014  

Over  15  years  of  R&D  experience    

4  

Representa7ve  Core  Products:  Global  Brand  Equity “Bovie®”  is  referenced  in  all  surgical  procedures;  it  is  a  proprietary  eponym  

   Electrosurgical  ~  60%   Cauteries  ~  24%  

Ligh1ng  ~  8%  

 •  Design  and  develop  specs    to  address  partners’  innova7ons  

 

*All  figures  are  for  the  9  months  ended  September  30,  2015.  Total  exceeds  100%  as  OEM  is  reported  within  Electrosurgical  

OEM  ~  8%*      

5  

J-­‐Plasma  ~  4.5%  

State-­‐of-­‐the-­‐Art  Manufacturing  Footprint

•  Three  world-­‐class  manufacturing  

facili7es  -  Clearwater,  Fl.  (owned)  –  Assembly,  

integra7on,  final  tes7ng,  packaging  and  

management  of  steriliza7on    

-  Bulgaria  (owned)  –  Manufacturing  and  assembly  of  complex  components;  ini7al  

tes7ng  

-  China  (contracted)  –  Component  

manufacturing    

•  Capacity  to  increase  output  from  

exis7ng  facili7es  

  6  

J-­‐Plasma®:  Transforma1onal  Product  

•  Revolu7onary  technology  that  ionizes  helium  to  create  stream  of  plasma  for  cupng  and  abla7on  

•  Precise  cupng  and  coagula7on  with  limited  thermal  spread  -  Stable,  thin,  focused  stream  of  ionized  helium  gas  -  Wide  range  of  control  with  independent  control  of  

plasma  power  and  gas  flow  rate  -  No  conduc7ve  currents  through  the  pa7ent  during  

surgery  

•  Allows  surgeons  to  safely  perform  procedures  on  delicate  structures  such  as:  

•  Protected  by  20  patents:    

-  9  issued;  11  pending  

-  Fallopian  tubes   -  Ureters  -  Ovaries   -  Bowel  

Recognized  as  an  Innova7on  of  the  Year  by  

The  Society  of  Laparoscopic  Surgeons  

(SLS)  

7  

J-­‐Plasma®  Energy  Stream  for  Limited  Thermal  Damage*  

•  Clinical  study  compared  levels  of  unintended  thermal  damage  to  peritoneal  7ssue  (membrane  lining  the  abdominal  cavity)  among  other  energy-­‐based  surgical  tools  vs  J-­‐Plasma®  

 •  Red  areas  represent  the  

depth  of  thermal  or  energy  damage  each  tool  les  below  the  7ssue  surface;  blue  areas  represent  unaffected  7ssue  

 •  J-­‐Plasma®  demonstrated  far  

lowest  amount  of  collateral  thermal  injury  to  healthy  7ssue  surrounding  the  opera7ve  site    

*Reference:  Pedroso  J,  Gu7errez  M,  Volker  W.  J-­‐Plasma,  monopolar  pencil,  argon  beam  and  CO2  laser  electrosurgery:    compara7ve  evalua7on  of  thermal  spread  in  a  porcine  7ssue  model  (white  paper).  Bovie  Medical  Corpora7on.  June  2014     8  

J-­‐Plasma®  Demonstra1on  Video  

9  

J-­‐Plasma®:  Compe11ve  Advantages    

Compara7ve  Case  Study:    J-­‐Plasma®  in  Endometriosis  600,000  procedures  per  year  in  US  

Key  Differences   CO2  Laser   J-­‐Plasma®  Trea1ng  poten1al  lesions   Treats  visible  lesions  only  

 Treats  visible  and  poten7al  lesions  

Tac1le  feedback   No  tac7le  cupng  feedback  or  maneuverability  

 

Direct  tac7le  cupng  feedback  and  maneuverability    

 

Control  of  energy   Requires  laser  safety  backstop    

Controlled  energy:  stream  distance  limited  to  surgical  site  

OR  requirements   Mul7ple  specialized  OR  requirements  (privileges,  goggles,  

techs,  wet  drapes,  etc.)  

No  addi7onal  OR  resources  required    

Price   Es7mated  Capital  ASP:  $100,000+    

Es7mated  disposable  hand  piece  ASP:  $425+  

 

Es7mated  Capital  ASP:  $20,000    

Es7mated  disposable  hand  piece  ASP:  $375  

10  

J-­‐Plasma®:  Poten1al  Annual  Procedures                                            in  Ini1al  Targeted  Special1es  

2,038,000  440,000  

Ini1al  Targeted  Special1es                    >  $1  Billion  TAM*  -­‐-­‐  U.S.  Only  

GYN  Procedures  

Plas7c  Surgery  

Poten7al  special7es  to  target  in  the  short/medium  term:  •  Cardiovascular  and  cardiothoracic    •  Urology  •  General  surgery  •  ENT  •  Oncology    

Sources:  CDC,  NIH,  APGO,  ASPS,  ASAPS,  AHA  *Assumes  $375  ASP  for  disposable  hand  piece;  and  $20,000  ASP  per  J-­‐Plasma®  generator   11  

J-­‐Plasma  Commercializa1on  Achievements  for  9M15    

•  ~$1  million  of  sales  for  9M15,  vs  $209,000  for  all  of  2014  

•  Direct  salesforce  hired  and  trained  in  early  2015,  leading  to  rapid  achievement  across  key  metrics:  –  62  generators  in  use                                                                    –  132  surgeons  using  J-­‐Plasma  

–  121  Scrub  POs  –  59  Hospital  VAC  approvals  

•  10+  White  Papers    

•  In  VAC  approval  process  with  addi7onal  64  hospitals  2016  will  represent  inflec1on  point  for  J-­‐Plasma,  with  daily  sales  from  established  user  base  

   

12  

Targe1ng  New  Special1es:  Medical  Advisory  Board  

•  Board  of  surgeon  thought-­‐leaders  to  advise  on  rollout  of  J-­‐Plasma  for  specific  procedures  in  their  special7es    

•  Target  special7es  from  board  to  ini7ally  include  cardiovascular,  cardiothoracic  and  urology  

•  Founding  member:  Dr.  Vipul  Patel,  world  renowned  robo7c  surgeon,  Medical  Director  of  Global  Robo7cs  Ins7tute,  Florida    

•  Addi7onal  members:    •  Dr.  Husam    H.  Balkhy,  Director  in  Minimally  Invasive  and  Robot  Cardiac  Surgery,  Duhossois  

Center  for  Advanced  Medicine,  Chicago  

•  Dr.  Robert  J.  Cerfolio,  Sec7on  Chief  of  Thoracic  Surgery  in  the  Division  of  Cardiothoracic  Surgery  at  the  University  of  Alabama  Hospital  in  Birmingham    

•  Expect  to  have  6-­‐9  surgeon  members  

     

13  

World-­‐Class  R&D  Capability  as    Growth  Catalyst  

•  World-­‐class  R&D  capability    

•  Developing  new  products  to  complement  J-­‐Plasma®  and    boost  growth  in  core  business  

•  Six  notable  product  launches  in  last  12  months:  

 

 

•  Value  in  patent  and  product  poryolio  can  be  realized  with  minimal  expenditures  

 

J-­‐Plasma  Pistol  Grip   Bovie®  Ul7mate™   IDS-­‐310  DERM  101/DERM  102   Freezpoint™  

14  

Solid  Balance  Sheet  to  Fund  Growth  Strategies  

•  In  March  2015  raised  $11.5  million  of  proceeds  

•  Unrestricted  cash  and  cash  equivalents  were  $13.2  million  at  September  30,  2015  

•  Funds  primarily  earmarked  for  commercializa7on  of  J-­‐Plasma®  and  growth  of  core  business  

•  Visible  pathway  to  profitability  without  need  for  addi7onal    capital  

15  

Growth  Strategies  

•  Drive  sales  momentum  of  J-­‐Plasma®/extend  product  line  offering  

•  Launch  new  products  that  are  complementary  to  J-­‐Plasma®  

•  Grow  Core  business  at  a  sustainable  pace    -  Add  new  products  that  “fit”  core  competencies  

-  Leverage  OEM  rela7onships  to  grow  current  and  new  products  

-  Con7nue  to  penetrate  new  markets  and  expand  interna7onally  

•  Commit  to  ongoing  R&D  investments  to  maintain  market  leadership  and  unlock  poryolio  value  

•  U7lize  financial  discipline  in  pricing  and  to  improve  margin  performance  

•  Maintain  a  solid  balance  sheet  which  will  fund  future  growth  ini7a7ves    

16  

Financial  Appendix  

Financial  Posi1on:  Assets  

*All figures in thousands

18  

September 30,

December 31,

2015 2014

(Unaudited)

Current assets: Cash and cash equivalents $ 13,202 $ 5,733

Restricted cash 839 899

Trade accounts receivable, net 2,524 1,992

Inventories, net 6,130 5,727

Current portion of deposits 172 210

Prepaid expenses and other current assets 826 804

Total current assets 23,693 15,365

Property and equipment, net 6,985 6,947

Brand name and trademark 1,510 1,510

Purchased technology and license rights, net 350 431

Deposits, net of current portion 140 165

Other assets 444 415

Total assets $ 33,122 $ 24,833

Financial  Posi1on:  Liabili1es  and  Stockholders’  Equity  

19  

September 30, December 31,2015 2014

Current liabilities: (unaudited)Accounts payable $ 2,341 $ 1,553 Accrued payroll 113 197 Accrued vacation 257 181 Current portion of mortgage note payable 239 239 Accrued and other liabilities 1,712 1,596 Total current liabilities 4,662 3,766 Mortgage note payable, net of current portion 2,994 3,173Deferred rents 20 23 Deferred tax liability 563 564 Derivative liabilities 266 12,613 Total liabilities 8,505 20,139 Series A 6% convertible preferred stock, par value $0.001; 3,500,000 shares authorized, zero issued and outstanding as of September 30, 2015

-- 3,190

Stockholders' equity:Series B convertible preferred stock, par value $.001; 3,588,139 issued and 1,975,639 outstanding as of September 30, 2015

2 --

Common stock, par value $.001 par value; 40,000,000 shares authorized; 27,194,251 issued and 27,051,172 outstanding as of September 30, 2015 and 17,995,409 issued and 17,852,330 outstanding as of December 31, 2014, respectively

27 18

Additional paid-in capital 42,664 29,334Accumulated deficit (18,076) (27,848) Total stockholders' equity 24,617 1,504 Total liabilities and stockholders' equity $ 33,122 $ 24,833

Income  Statement  

20  

2015 2014 2015 2014

Sales $ 7,823 $ 6,788 $ 21,226 $ 20,214

Cost of sales 4,594 4,869 12,183 13,662

Gross profit 3,229 1,919 9,043 6,552

Other costs and expenses:

Research and development 583 368 1,534 1,019

Professional services 427 142 1,070 686

Salaries and related costs 1,929 1,653 5,749 3,980

Selling, general and administrative 2,103 2,123 6,325 4,923

Total other costs and expenses 5,042 4,286 14,678 10,608

Loss from operations (1,813) (2,367) (5,635) (4,056)

Interest expense, net (40) (41) (120) (111)

Change in fair value of liabilities, net 266 (1,676) 1,800 (9,820)

Total other income (expense), net 226 (1,717) 1,680 (9,931)

Loss before income taxes (1,587) (4,084) (3,955) (13,987)

Provision for (recovery of) income taxes, net -- 1,350 (8) 1,895

Net loss $ (1,587) $ (2,734) $ (3,963) $ (12,092)

Accretion on convertible preferred stock -- (242) (222) (668)Gain on conversion of warrants and preferred shares, net

-- -- 13,956 --

Net income (loss) attributable to common shareholders

$ (1,587) $ (2,976) $ 9,771 $ (12,760)

Income (loss) per share

Basic (0.06) (0.17) 0.42 (0.72)

Diluted (0.06) (0.17) 0.31 (0.72)Weighted average number of shares outstanding- basic

27,051 17,780 23,414 17,727

Weighted average number of shares outstanding - dilutive

27,051 17,780 26,346 17,727

September 30, September 30,

Three Months Ended Nine Months Ended

Reconcilia1on  Between  GAAP  and  Non-­‐GAAP  

21  

2015 2014 2015 2014(unaudited) (unaudited) (unaudited) (unaudited)

Net Income/(loss) GAAP Basis (1,587)$ (2,734)$ (3,963)$ (12,092)$ Accretion on convertible preferred stock - (242) (222) (668) Deemed dividend on conversion of warrants and Series A convertible preferred to Series B convertible preferred stock - - 13,956 - Net income/(loss) attributable to common shareholders (1,587)$ (2,976)$ 9,771$ (12,760)$ Net income/(loss) per share - basic (GAAP basis) (0.06)$ (0.17)$ 0.42$ (0.72)$

Other non-GAAP adjustments: (Gain)/loss on change in fair value of derivative liabilities (266)$ 1,676$ (1,800)$ 9,820$ Increase in inventory E&O reserve and other inventory adjustments -$ 796$ -$ 1,639$ CFO transition costs -$ -$ -$ 340$ A/R write off and other administrative charges -$ 175$ -$ 175$ Other administrative expenses -$ -$ -$ 43$ Accretion on convertible preferred shares -$ 242$ 222$ 668$ Tax impact on non-GAAP adjustments -$ (378)$ -$ (1,663)$ Gain on conversion of warrants and Series A convertible preferred to Series B convertible preferred stock - - (13,956) - Adjusted non-GAAP net income/(loss) (1,853)$ (465)$ (5,763)$ (1,738)$

Income/(loss) per share - basic on: (Note 1)

(Gain)/loss on change in fair value of derivative liabilities (0.01)$ 0.09$ (0.08)$ 0.55$ Increase in inventory E&O reserve and other inventory adjustments -$ 0.04$ -$ 0.09$ CFO transition costs -$ -$ -$ 0.02$ A/R write off and other administrative charges -$ 0.01$ -$ 0.01$ Other administrative expenses -$ -$ -$ -$ Accretion on convertible preferred shares -$ 0.01$ 0.01$ 0.04$ Tax impact on non-GAAP adjustments -$ (0.02)$ -$ (0.09)$ Deemed dividend on conversion of warrants and Series A convertible preferred to Series B convertible preferred stock - - (0.60) - Adjusted non-GAAP net (loss) per share -basic (0.07)$ (0.04)$ (0.25)$ (0.10)$

Weighted average number of shares outstanding - basic 27,051 17,780 23,414 17,727

(Note 1) Amounts reflected in the presentation of EPS calculations may be impacted by rounding

Three Months Ended Nine Months EndedSeptember 30, September 30,

J-­‐Plasma®  US-­‐Only  Market  

Procedures   #  of  Annual  Procedures   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    $            162,000,000    

Total  GYN  Procedures    $            764,250,000    

Capital   *5,000   $  20,000    $            100,000,000    

Total  GYN  Available  Market    $            864,250,000    

Plas7cs:  Skin  Resurfacing   440,000   $  375    $            165,000,000    

Total  Available  Market    $    1,029,250,000    

Sources:  CDC,  NIH,  APGO,  ASPS,  ASAPS,AHA*  (5,000  hospitals)  22