U.S. Securities and Exchange Commission
Washington D.C. 20549
Form 10-QSB
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE EXCHANGE ACT
For the transition period from to
Commission file number 0-12183
BOVIE MEDICAL CORPORATION
(Exact name of small business issuer as specified in its charter)
Delaware 44611
(State or other jurisdiction Employer
of incorporation or organization) Identification No.)
734 Walt Whitman Rd., Melville, New York 11747
(Address of principal executive offices)
(516) 421-5452
(Issuer's telephone number)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [ X ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuers's class of
common stock, as of the latest practicable date: 14,709,695.
<PAGE>
BOVIE MEDICAL CORPORATION.
FORM 10-QSB
QUARTERLY REPORT
MARCH 31, 1999
<PAGE>
BOVIE MEDICAL CORPORATION
INDEX TO FORM 10-QSB
Contents
Part I. Financial Information
Item 1: Consolidated Financial Statements:
Consolidated Balance Sheet - March 31, 1999
Consolidated Statements of Operations for the
three Months Ended March 31, 1999 and 1998
Consolidated Statements of Cash Flows for the
three Months Ended March 31, 1999 and 1998
Notes to Financial Statements
Item 2: Management's Discussion and
Analysis of Financial Conditions and
Results of Operations
Part II. Other Information
Item 1: Legal Proceedings
Item 2: Changes in Securities
Item 3: Defaults Upon Senior Securities
Item 4: Submission of Matters to Vote of Security Holders
Item 5: Exhibits and Reports on Form 8-K
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1: CONSOLIDATED FINANCIAL STATEMENTS
BOVIE MEDICAL CORPORATION
CONSOLIDATED BALANCE SHEET
MARCH 31, 1999
Assets
Current assets:
Cash $ 370,227
Trade accounts receivable 1,132,650
Inventories 1,464,643
Prepaid expenses 53,821
Deferred tax asset 175,010
Other receivables 19,914
Total current assets 3,216,265
Property and equipment, net 2,154,473
Other assets:
Repair parts 347,184
Trade name 1,767,790
License and manufacturing rights 2,875,296
Patent rights, net 215,766
Deposits 129,765
5,335,801
$ 10,706,539
The accompanying notes are an integral part of the financial statements.
<PAGE>
BOVIE MEDICAL CORPORATION
CONSOLIDATED BALANCE SHEET
MARCH 31,1999
(CONTINUED)
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 443,446
Accrued expense 306,644
Notes payable - current portion 550,043
Due to shareholders 103,689
Total current liabilities 1,403,822
Long-term debt, net 5,328
Stockholders' equity:
Preferred Stock, per value $.001
10,000,000 shares authorized
2,000,000 issued and outstanding
on March 31, 1999 2,000
Common stock par value $.001; 40,000,000
shares authorized, issued and outstanding
14,709,695 shares on March 31, 1999 14,780
Additional paid in capital 21,199,945
Accumulated deficit (11,919,336)
Total stockholders' equity 9,297,389
Total liabilities and
stockholders' equity $10,706,539
The accompanying notes are an integral part of the financial statements.
<PAGE>
BOVIE MEDICAL CORPORATION.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 and 1998
1999 1998
Sales $ 2,247,064 $ 1,772,034
Cost of sales 1,340,541 1,007,722
Gross profit 906,523 764,312
Costs and expenses:
Research and development 50,458 46,300
Professional services 81,582 143,434
Salaries and related costs 348,995 392,511
Selling, general and administrative 407,026 326,355
888,061 908,600
Gain (Loss) from operations 18,462 ( 144,288)
Other income (expense):
Interest ( 12,947) ( 26,631)
Miscellaneous 3,530 35
( 9,417) ( 26,596)
Income (loss) before extraordinary items 9,045 ( 170,884)
Provision for income tax 3,166 --
Realized benefit of loss carryforward ( 3,166) --
Net income (loss) $ 9,045 $( 170,884)
Earnings (Loss) per share
Net income (loss):
Basic N/S $ ( .02)
Diluted N/S $ ( .02)
Weighted average number of shares
outstanding 14,709,695 11,370,509
Weighted average number of shares
adjusted for dillutive securities 16,709,695 11,857,090
N/S= Not significant
The accompanying notes are an integral part of the financial statements.
<PAGE>
BOVIE MEDICAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
1999 1998
Cash Flows from operating activities
Net income (loss) $ 9,045 $(170,884)
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 178,397 143,353
Common stock issued for services -- 110,668
Changes in current assets and liabilities:
Decrease (Increase) in receivables ( 129,816) 66,813
Decrease (Increase) in inventories 20,477 ( 153,846)
Decrease in prepaid expenses 24,619 3,999
(Increase) in accounts payable 57,888 41,402
Increase (decrease) in accrued expense 4,819 ( 103,437)
Decrease in other assets 3,137 17,401
Total adjustments 159,521 126,353
Net cash provided by (used in)
operating activities 168,566 ( 44,531)
Cash flows from investing activities
Increase in fixed assets ( 41,970) ( 72,074)
Decrease (Increase) in patents ( 10,000) 23
Decrease in deposits -- 1,505
Net cash used in investing activities ( 51,970) ( 70,546)
Cash flows from financing activities
Borrowing - line of credit 100,000 --
Repayment - line of credit ( 100,000) --
Decrease in obligations under capital lease -- ( 42,916)
(Decrease) increase in notes payable ( 25,042) 1,538
Common shares issued for cash -- 239,740
Net cash provided by financing activities ( 25,042) 198,362
Net increase (decrease) in cash and
cash equivalents 91,554 83,285
Cash and cash equivalents, beginning
of period 278,673 48,246
Cash and cash equivalents, end of period $ 370,227 $ 131,531
The accompanying notes are an integral part of the financial statements.
<PAGE>
BOVIE MEDICAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
Cash paid during the three months
ended March 31:
1999 1998
Interest paid $ 11,354 $ 27,052
Income Taxes -0- -0-
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
1999
None
1998
During the quarter ended March 31, 1998 the Company issued 276,667 restricted
shares for an officers' bonus and consulting fees valued at $.40 per share for
an aggregate of $110,667.
The Company also issued 19,578 shares valued at $.40 per share to satisfy part
of its obligation to the Xenetics Shareholders for the purchase of OmniFix.
On February 9, 1998, the Company issued 5,000,000 shares to purchase the
outstanding shares of BSD Beta Development Corp. (BSD). The Company valued this
transaction at $.98 per share.
<PAGE>
BOVIE MEDICAL CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 1. INTERIM CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements include the accounts of Bovie Medical
Corporation and its wholly owned subsidiary Aaron Medical Industries, Inc. In
the opinion of management, the interim financial statements reflect all
adjustments, consisting of only normal recurring items, which are necessary for
a fair presentation of the results for the interim periods presented.
The results for interim periods are not necessarily indicative of results for
the full year. These financial statements should be read in conjunction with the
significant accounting policies and the other notes to the financial statements
included in the Corporation's 1998 Annual Report to the SEC on Form 10-KSB.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates in the Preparation of Financial Statements
The preparation of consolidated financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
Fair Values of financial instruments
Cash and cash equivalents. Holdings of highly liquid investments with maturities
of three months or less when purchased are considered to be cash equivalents.
The carrying amount reported in the balance sheet for cash and cash equivalents
approximates its fair values.
Accounts receivable and accounts payable. The carrying amount of accounts
receivable and accounts payable on the balance sheet approximates fair value.
Short term and long term debt. The carrying amount of the bonds and notes
payable, and amounts due to shareholders approximates fair value.
Inventories
Inventories are stated at the lower of cost or market. Cost is determined
principally on the average cost method. Inventories at March 31, 1999 were as
follows:
Raw materials $ 1,021,458
Work in process 196,997
Finished goods 246,198
Total $ 1,464,643
<PAGE>
BOVIE MEDICAL CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
Long-Lived Assets
Long-lived and assets consist of property, plant and equipment, intangible
assets.
Property, plant and equipment are recorded at cost less depreciation and
amortization. Depreciation and amortization are accounted for on the straight-
line method based on estimated useful lives. The amortization of leasehold
improvements is based on the shorter of the lease term or the life of the
improvement. Betterment and large renewals which extend the life of the asset
are capitalized whereas maintenance and repairs and small renewals are expenses
as incurred. The estimated useful lives are: machinery and equipment, 7-15
years; buildings, 30 years; and leasehold improvements, 10-20 years.
Intangible assets consist of patent rights and goodwill. Goodwill represents the
excess of the cost of assets of the acquired companies over the values assigned
to net tangible assets. These intangibles are being amortized by the
straight-line method over a 5 to 20 year period.
Effective January 1, 1996, the Company adopted Statement of Financial Accounting
Standards (SFAS) No.121, Accounting for the Impairment of Long-Lived Assets and
for Long-Lived Assets to be Disposed Of. In accordance with SFAS No.121, the
Company reviews long-lived assets for impairment whenever events or changes in
business circumstances occur that indicate that the carrying amount of the
assets may not be recovered.
The Company assesses the recoverability of long-lived assets held and to be used
based on undiscounted cash flows and measures the impairment, if any, using
discounted cash flows. Adoption of SFAS No.121 did not have a material impact on
the Company's consolidated financial position, operating results or cash flows.
Revenue Recognition and Product Warranty
Revenue from sales of products is generally recognized upon shipment to
customers. The Company warrants its products for one year. The estimated future
costs of warranties are not material.
Income is recognized in the financial statements (and the customer billed) when
products are shipped from stock. Net sales are arrived at by deducting discounts
and freight from gross sales.
Environmental Remediation
The Company accrues environmental remediation costs if it is probable that an
asset has been impaired or a liability incurred at the financial statement date
and the amount can be reasonably estimated. Environmental compliance costs are
expenses as incurred. Certain environmental costs are capitalized based on
estimates and depreciated over their useful lives.
<PAGE>
BOVIE MEDICAL CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
Earnings Per Common and Common Equivalent Share
In February 1997, the Financial Accounting Standards Board issued SFAS 128.
"Earnings Per Share." SFAS 128 establishes new standards for computing and
presenting earnings per share ("EPS"). Specifically, SFAS 128 replaces the
previously required presentation of primary EPS with a presentation of basis
EPS, requires dual presentation of basic and diluted EPS on the face of the
income statement for all entities with complex capital structures, and requires
a reconciliation of the numerator and denominator of the basic EPS computation
to the financial statements issued for periods ending after December 15, 1997.
In 1997, the Company adopted SFAS 128.
Research and Development Costs
Only the development costs that are purchased from another enterprise and have
alternative future use are capitalized and are amortized over five years.
Income Taxes
The Company and its wholly-owned subsidiary file a consolidated federal income
tax return.
Income taxes are accounted for under the asset and liability method. Deferred
tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of
existing assets and liabilities and their respective tax bases and operating
loss and tax credit carryforwards. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the
years in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax
rates is recognized in income in the period that includes the enactment date.
Nonmonetary Transactions
The accounting for non-monetary assets is based on the fair values of the assets
involved. Cost of a non-monetary asset acquired in exchange for another
non-monetary asset is recorded at the fair value of the asset surrendered to
obtain it. The difference in the costs of the assets exchanged is recognized as
a gain or loss. The fair value of the asset received is used to measure the
cost, if it is more clearly evident than the fair value of asset surrendered.
Stock-Based Compensation
The Company has adopted Accounting Principles Board Opinion 25 for its
accounting for stock based compensation. Under this policy:
1. Compensation costs are recognized as an expense over the period of employment
attributable to the employee stock options.
<PAGE>
BOVIE MEDICAL CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
Stock-Based Compensation(Continued)
2. Shares issued in accordance with a plan for past or future services of an
employee are allocated between the expired costs and future costs. Future costs
are charged to the periods in which the services are performed. The pro forma
amounts of the difference between compensation cost included in net income and
related cost measured by the fair value based method, including tax effects, are
disclosed.
New Accounting Standards
In June 1997, the Financial Accounting Standards Board issued SFAS 130,
"Reporting Comprehensive Income". SFAS 130 establishes standards for reporting
and display of comprehensive income and its components (revenues, expenses,
gains, and losses) in a full set of general purpose financial statements.
Specifically, SFAS 130 requires that all items that meet the definition of
components of comprehensive income be reported in a financial statement for the
period in which they are recognized. However, SFAS 130 does not specify when to
recognize or how to measure the items that make up comprehensive income. SFAS
130 is effective for fiscal years beginning after December 15, 1997, and early
application is permitted.
Management believes the application of SFAS 130 will not have a material effect
on the Company's future financial statements.
In April 1998, the FASB issued SOP 98-5, "Reporting on the Costs of Start-up
Activities," which will become effective for the Company in fiscal 2000. It
requires costs of start-up activities and organization costs to be expressed as
incurred. The Company currently follows this approach and such costs have been
minimal in the past.
In June 1997, the Financial Accounting Standards Board issued SFAS 131,
"Financial Reporting for Segments of Business Enterprise." SFAS 131 supersedes
the "industry segment" concept of SFAS 14 with a "management approach" concept
as the basis for identifying reportable segments. SFAS 131 is effective for
fiscal years beginning after December 15, 1997 and early application is
permitted. Management believes the application of SFAS 131 will not have a
material effect on the Company's future financial statements.
Forward-looking Statements
This Report on Form 10-QSB contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, including statements regarding the Company's
expectations, hopes, intentions, beliefs or strategies regarding the future.
Such forward-looking statements include, but are not limited to, the Company's
anticipated expense levels for research and development, and selling general and
<PAGE>
BOVIE MEDICAL CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
Forward-looking Statements (continued)
administrative, anticipated capital expenditures, and expectations regarding
inventory balances, liquidity and adequacy of cash resources under the
sub-headings "Results of Operations" and "Liquidity and Capital Resources".
Actual results could differ materially from those projected in any
forward-looking statements for the reasons detailed below and in other sections
of this Report on Form 10-QSB.
All forward-looking statements included in this Form 10-QSB are based on
information available to the Company on the date of this Report. The Company
assumes no obligation to update the forward-looking statements. Investors should
also consult the risk factors listed from time to time in the Company's Reports
on Form 10-K and Annual Report to Stockholders.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Results of Operations
The results of operations over the three months ended March 31, 1999 show
increased sales and profitability, as compared to the first three months of
1998. The Company's sales revenues increased by 27%, from $1,772,034 to
$2,247,064. Gross profit percentage of 39% was down from 43% for the same period
in 1998. Gross profit increased from $764,312 to $906,523. Increased sales
revenues were mainly attributable to sales of Bovie generators (product line
purchased). For the first quarter of 1999 and 1998 cauteries accounted for 38%
and 46% of sales, respectively.
Operating salaries and related expenses decreased by 11%, from $392,511 to
$348,995, in the three months ended March 31, 1999 as compared to the same
period in 1998. The decrease in salaries was largely attributable to the fact
that no bonuses were given out in 1999 as compared to 1998.
Research and development costs increased by 9% from $46,300 to $50,458 from the
quarter ended March 31, 1998 to the quarter ending March 31, 1999.
Expenses for professional services decreased by 43% to $81,582 in the three
months ended March 31, 1999, as compared to $143,434 in the same period of the
previous year. The main reason for this decrease was professional fees
associated with the settlement of various transactions in 1998 only.
Selling, General and Administrative expenses increased by $80,671 (24%). These
expenses were $407,026 in the three month period ended March 31, 1999 as
compared to $326,355 for the three months ended March 31, 1998. The increase was
mainly attributable to the amortization of the cost of the ART manufacturing
license and the Bovie Name Purchase.
<PAGE>
BOVIE MEDICAL CORPORATION
PART I. FINANCIAL INFORMATION (CONTINUED)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (CONTINUED)
Interest expense decreased from $26,631 in the three months ended March 31, 1998
to $12,947 in 1999. The $13,684 (51%) decrease in interest expense was mainly
attributable to the decrease in interest in the Company's line of credit and
term loan which began at the end of the first quarter of 1998. The term loan
principal is low and the line of credit was hardly used in first quarter of
1999.
The operating gain was $18,462 in the first quarter of 1999 as compared to an
operating loss of $94,394 in the same period in 1998.
The Company had a net gain of $9,045 for the three months ended March 31, 1999
as compared to net loss of $170,884 in 1998 for the same period. The reasons for
the increase of $112,856 in the operating income and $130,035 in net income
include: $142,211 increase in gross profit; and the decrease in one time
professional fees attributable to the BSD/ART license and equipment purchase.
The Company sells its products through distributors both in the international
market and in the USA. Distributors are contacted through response to company
advertising in international medical journals or at domestic or international
trade shows. The main focus for export sales has been Western Europe.
The Company has distributors in all major markets there. The Company intends to
continue marketing its products, targeting different regions of the world, while
returning to major markets for increased market exposure and to introduce new
products.
During the first three months of 1999, international sales of the Aaron Medical
product line declined by 1%. These sales were $410,287 which represented 19% of
total sales, while in 1998 total international sales were $414,931 and 23% of
total sales. The Company expects sales to increase because it received its
ISO 9000 certification in the 3rd quarter of 1998.
Financial Condition
As of March 31, 1999, the amount of cash was $370,227 as compared to $131,531 at
March 31, 1998. Cash provided by operating activities was $168,566 in the first
quarter of 1999 as compared to $44,531 cash used by operations in 1998. Net
working capital of the company on March 31, 1999 was $1,812,443 as compared to
$745,761 in 1998.
Investing activities utilized $51,970 in cash during the first three months of
1999, compared to $70,546 in the first three months of 1998. In 1999, the
Company continued its policy of investing in property, plant and equipment
needed for future business requirements, including manufacturing capacity.
<PAGE>
BOVIE MEDICAL CORPORATION
PART I. FINANCIAL INFORMATION (CONTINUED)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (CONTINUED)
The Company's ten largest customers accounted for approximately 52% of net
revenues for the first three months of 1999. At March 31, 1999, the same ten
customers accounted for approximately 58% of outstanding accounts receivable.
Cash flows from financing used $25,042 and provided $198,362 in the first three
months of 1999 and 1998, respectively. The most significant financing activities
in the three months ended March 31, 1998 were the receipt of $250,000 from the
purchase of BSD. The amounts of the term and the line of credit loan repaid were
$12,501 and 100,000, in the first quarter of 1999, respectively.
The Company believes that it has the financial resources needed to meet business
requirements in the foreseeable future, including capital expenditures for the
expansion of its manufacturing site, working capital requirements, and product
development programs, which includes its 1998 acquisition and transition of the
Bovie product line manufacturing operation to its facility in St. Petersburg,
Florida.
Outlook
The Company, believes that the world market for disposal medical products, such
as the Company's battery-operated cauteries, has significant growth potential
because these types of products have not been affordable or effectively marketed
outside the U.S. Because of these factors, the Company has designed certain
disposable products to be reusable. The Company presently has a significant
portion of the U.S. cautery market and does not expect a dramatic growth in
sales of cautery-related products domestically unless an OEM arrangement can be
obtained with a co-leader in this market.
The Company, has focused on expanding its line of electrosurgical products.
Electrosurgical products sold by the Company are the standard stainless steel
electrodes, the patented Multi-Function Cautery, and the Aaron 800 high
frequency desiccator. The Aaron 1200 was introduced in 1998 as well as the Bovie
product line of generators and accessories.
To replace the Company's line of reduced stick electrodes, the Company entered
into licensing and manufacturing agreement with Advanced Refractory Technologies
(ART) to manufacture a coated electrode utilizing ART's patented DYLYN process.
The license to the DYLYN coating process also includes its use for other
biomedical applications. To date ART has not produced a commercially viable
coated electrode.
Aaron, through its private label capacity, sees unique opportunities in the
domestic market as most of its competitors do not private label. The
electrosurgical product line is a larger market than the company has normally
sold into and is dominated by two main competitors, VallyeLab and Conmed.
Electrosurgical product sales moved from fifth place to second in total Company
sales by product line in 1997 and has remained in that position.
<PAGE>
BOVIE MEDICAL CORPORATION
PART I. FINANCIAL INFORMATION (CONTINUED)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (CONTINUED)
Liquidity and Future Plans
Since the acquisition of Aaron Medical Industries, Inc. the Company has
partially changed its direction from acquiring ownership interest in companies
to acquiring new product technology and expanding manufacturing capabilities
through Aaron. The Aaron 800 and 1200 are an example of this new direction.
Other products and technologies are being evaluated for future development by
the Company through its manufacturing and licensing agreement with Advanced
Refractory Technologies and by its recent acquisition of Bovie products line and
technologies.
In order to maintain and strive for international sales growth and its ability
to sell in Europe, management is implemented an ISO9000/EN46001 quality system
and is certified and received its CE mark (International Quality Control) in
1998. The Company had obtained a one-year line of credit with a local commercial
bank for $400,000 and a three-year $150,000 loan for capital improvements.
Interest on these loans is to be paid at 1% over prime. Balances on these loans
were $-0- and $45,559 as of May 5, 1999, respectively.
Bovie Medical Corporation believes that it has the product mix, facilities,
personnel, and competitive and financial resources for continued business
success, but future revenues, costs, margins, product mix and profits are all
subject to the influence of a number of factors, as discussed above.
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
See Form 10-KSB for the year ended December 31, 1998. Part I, Item 3.
ITEM 2. CHANGES IN SECURITIES
There have been no changes in the instruments defining the rights or rights
evidenced by any class of registered securities.
There have been no dividends declared.
<PAGE>
BOVIE MEDICAL CORPORATION
PART II: OTHER INFORMATION (CONTINUED)
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
In February of 1997, the 10 year notes came due and the Company offered each
bond holder 2,200 shares of common stock for their $1,000 bond and accrued
interest of $550. Nineteen bondholders accepted the offer and forty-three
bondholders received cash for their bonds and accrued interest. The balance of
the bondholders have not redeemed their bonds or accepted the shares offered.
ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS
There has not been a meeting of shareholders and therefore, no matters have been
submitted to a vote of security holders.
ITEM 5. EXHIBITS AND REPORTS ON FORM 8-K
A) Exhibits
28 None
<PAGE>
SIGNATURES:
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Bovie Medical Corporation.
(Registrant)
Date: _________________
_________________________
Chief Executive Officer - Andrew Makrides,
<PAGE>
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 370,227
<SECURITIES> 0
<RECEIVABLES> 1,132,650
<ALLOWANCES> 0
<INVENTORY> 1,464,643
<CURRENT-ASSETS> 3,216,265
<PP&E> 3,666,355
<DEPRECIATION> 1,511,882
<TOTAL-ASSETS> 10,706,539
<CURRENT-LIABILITIES> 1,403,822
<BONDS> 20,000
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<COMMON> 14,780
<OTHER-SE> 9,280,609
<TOTAL-LIABILITY-AND-EQUITY> 10,706,539
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<CGS> 1,240,541
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<INTEREST-EXPENSE> 12,947
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<INCOME-TAX> 3,166
<INCOME-CONTINUING> 3,166
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