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, 2000
[ ] 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 11-2644611
-- -------------------
(State or other jurisdiction (IRS 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 issuer's
class of common
stock, as of the latest practicable date: 13,970,334.
<PAGE>
BOVIE MEDICAL CORPORATION.
FORM 10-QSB
QUARTERLY REPORT
MARCH 31, 2000
<PAGE>
BOVIE MEDICAL CORPORATION
INDEX TO FORM 10-QSB
Contents
Part I. Financial Information
Item 1: Consolidated Financial Statements:
Consolidated Balance Sheet - March 31, 2000
Consolidated Statements of Operations for the
three Months Ended March 31, 2000 and 1999
Consolidated Statements of Cash Flows for the
three Months Ended March 31, 2000 and 1999
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, 2000
(UNAUDITED)
Assets
Current assets:
<TABLE>
<S> <C>
Cash $ 595,280
Trade accounts receivable 1,041,808
Inventories 1,809,823
Prepaid expenses 75,571
Deferred tax asset 175,010
Other receivables 119,941
---------
Total current assets 3,817,433
Property and equipment, net 1,448,400
Other assets:
Repair parts 319,768
Trade name 1,673,925
Patent rights, net 208,210
Deposits 4,765
----------
2,206,668
-----------
$ 7,472,501
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
BOVIE MEDICAL CORPORATION
CONSOLIDATED BALANCE SHEET
MARCH 31, 2000
(UNAUDITED)
(CONTINUED)
Liabilities and Stockholders' Equity
<TABLE>
<S> <C>
Current liabilities:
Accounts payable $ 470,292
Accrued expense 283,326
Notes payable - current portion 590,426
Due to shareholders 97,522
----------
Total current liabilities 1,441,566
Stockholders' equity:
Preferred Stock, par value $.001
10,000,000 shares authorized
0 issued and outstanding
on March 31, 2000 --
Common stock par value $.001; 40,000,000
shares authorized, issued and outstanding
13,970,334 shares on March 31, 2000 14,040
Additional paid in capital 20,182,282
Accumulated deficit (14,165,387)
----------
Total stockholders' equity 6,030,935
----------
Total liabilities and stockholders' equity $ 7,472,501
===========
</TABLE>
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, 2000 AND 1999
(UNAUDITED)
2000 1999
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<S> <C> <C>
Sales $ 2,174,324 $ 2,247,064
Cost of sales 1,131,321 1,340,541
--------- ---------
Gross profit 1,043,003 906,523
Costs and expenses:
Research and development 109,268 50,458
Professional services 107,741 81,582
Salaries and related costs 395,241 348,995
Selling, general and administrative 373,769 407,026
--------- --------
986,019 888,061
--------- -------
Gain (Loss) from operations 56,984 18,462
Other income (expense):
Interest, net ( 4,713) ( 12,947)
Miscellaneous 4,565 3,530
----------- ----------
( 148) ( 9,045)
----------- ----------
Income 56,836 9,045
Provision for income tax 19,892 3,166
Realized benefit of loss
carryforward ( 19,892) ( 3,166)
--------- ----------
Net income $ 56,836 $ 9,045
========== ===========
Earnings per share
Net income:
Basic .01 N/S
Diluted .01 N/S
Weighted average number of shares
outstanding 14,007,834 14,709,695
Weighted average number of shares
adjusted for dilutive securities 14,007,834 16,709,695
</TABLE>
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, 2000 AND 1999
(UNAUDITED)
<TABLE>
2000 1999
---- ----
Cash flows from operating activities
<S> <C> <C>
Net income $ 56,836 $ 9,045
Adjustments to reconcile net income
to net cash provided by (used in) operating activities:
Depreciation and amortization 66,002 178,397
Interest charged on subscription receivable ( 2,668) --
Changes in current assets and liabilities:
Receivables 168,240 ( 129,816)
Inventories and repair parts (129,501) 20,477
Prepaid expenses 10,874 24,619
Accounts payable 68,038 57,888
Accrued expense 19,180 4,819
Other assets 11,202 3,137
--------- -----------
Net cash provided by operating activities 268,203 168,566
Cash flows from investing activities
Increase in fixed assets ( 39,043) ( 41,970)
Increase in patents ( 36,250) ( 10,000)
-------- --------
Net cash used in investing activities ( 75,293) ( 51,970)
--------- --------
Cash flows from financing activities
Borrowing - line of credit 50,000 100,000
Repayment - line of credit -- (100,000)
Decrease in obligations to shareholders ( 3,457) --
Increase in notes payable ( 22,165) ( 25,042)
Common shares issued 18,750 --
Common shares purchased ( 55,832) --
-------- ------------
Net cash used in financing activities ( 12,704) ( 25,042)
-------- --------
Net increase (decrease) in cash and cash equivalents 180,206 91,554
Cash and cash equivalents, beginning of period 415,074 278,673
--------- --------
Cash and cash equivalents, end of period $ 595,280 $ 370,227
========= ========
</TABLE>
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, 2000 AND 1999
Cash paid during the three months ended March 31:
2000 1999
---- ----
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<S> <C> <C>
Interest paid $ 15,054 $ 11,354
Income Taxes - 0 - - 0 -
</TABLE>
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
There were no non-cash investing and financing activities in the first quarter
of the year 1999 or 2000.
<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 maturity
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, 2000 were as
follows:
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Raw materials $ 1,085,166
Work in process 387,796
Finished goods 336,861
----------
Total $ 1,809,823
=========
</TABLE>
<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, and
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 the 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 basic
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 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.
Results of Operations
The results of operations over the three months ended March 31, 2000 show
decreased sales and increased profitability, as compared to the first three
months of 1999. The Company's sales revenues decreased by 4%, from $2,247,064 to
$2,174,313. Gross profit percentage of 48% was up from 39% for the same period
in 1999. Gross profit increased from $906,523 to $1,043,003. Increased gross
profit was mainly attributable to increased sales of cauteries and a decrease in
cost of materials on Bovie generators (product line purchased). For the first
quarter of 2000 and 1999, cauteries accounted for 46% and 38% of sales,
respectively.
Operating salaries and related expenses increased by 13%, from $348,995 to
$395,241, in the three months ended March 31, 2000 as compared to the same
period in 1999. A significant area of increase was in quality control personnel.
<PAGE>
BOVIE MEDICAL CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Results of Operations (Continued)
Research and development costs increased by 116% from $50,458 to $109,268 from
the quarter ended March 31, 1999 to the quarter ending March 31, 2000. The
increase was mainly attributable to engineering costs on the new generator
models being developed.
Expenses for professional services increased by 32% to $107,741 in the three
months ended March 31, 2000, as compared to $81,582 in the same period of the
previous year. The main reason for this increase was professional fees
associated with public relations.
Selling, General and Administrative expenses decreased by $33,257(8%). These
expenses were $407,026 in the three month period ended March 31, 1999 as
compared to $373,769 for the three months ended March 31, 2000. The decrease was
mainly attributable to the decrease in amortization attributed to the cost of
the ART manufacturing license, which was sold.
Interest expense increased from $12,947 in the three months ended March 31, 1999
to $15,084 in 2000. The $2,137 (14%) increase in interest expense was mainly
attributable to the increase in interest in the Company's line of credit. The
term loan to the Company's commercial bank was paid off in the first quarter of
2000.
The operating gain was $56,984 in the first quarter of 2000 as compared to an
operating gain of $18,462 in the same period in 1999.
The Company had a net gain of $56,836 for the three months ended March 31, 2000
as compared to net gain of $9,045 in 1998 for the same period. The main reason
for the increase of $38,522 in the operating income and $47,791 in net income
is: $136,480 increase in gross profit, attributable to cautery and
electrosurigical product sales.
The Company sells its products mostly through distributors and independent
representatives to service the 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 in Europe. The Company intends
to continue marketing its products internationally while concentrating on major
markets for increased market exposure and introduction of new products.
During the first three months of 2000, international sales of the Aaron Medical
product line increased 8%. These sales were $ 441,431, which represented 19% of
total sales, while in 1999 total international sales were $410,287 and 19% of
total sales. The Company expects sales to continue to increase since it received
its ISO 9000 certification in the 3rd quarter of 1998.
<PAGE>
BOVIE MEDICAL CORPORATION
PART I. FINANCIAL INFORMATION (CONTINUED)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (CONTINUED)
Financial Condition
As of March 31, 2000, the amount of cash was $595,280 as compared to $370,227 at
March 31, 1999. Cash provided by operating activities was $284,502 in the first
quarter of 2000 as compared to $168,566 provided by operations in 1999. Net
working capital of the Company on March 31, 2000 was $2,375,867 as compared to
$1,812,443 in 1999.
Investing activities utilized $75,293 in cash during the first three months of
2000, compared to $51,970 in the first three months of 1999. In 2000, the
Company continued its policy of investing in property, plant and equipment
needed for future business requirements, including manufacturing capacity.
The Company's ten largest customers accounted for approximately 56% of net
revenues for the first three months of 2000. At March 31, 2000, the same ten
customers accounted for approximately 59% of outstanding accounts receivable.
Cash flows from financing activity provided $12,704 and used $25,042, in the
first three months of 2000 and 1999, respectively. The most significant
financing activities in the three months ended March 31, 2000 were the purchase
of Company shares from a former major shareholder ($55,832) and borrowing
$50,000 on the Company credit line.
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 continues to believe 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 both
domestically and abroad. Electrosurgical products sold by the Company include
standard stainless steel electrodes, and the Aaron 800 and 1200 high frequency
desiccators. The Aaron 1200 was introduced in 1998 as well as the Bovie product
line of generators and accessories.
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 Aaron 1200 are examples of this new direction.
Other electrosurgical products and technologies are being developed by the
Company through the use of its own engineering staff and out sourcing
engineering development.
In order to maintain and strive for international sales growth and its ability
to sell in Europe, management has implemented an ISO 9000/EN46001 quality system
and is certified and has 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 $600,000 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 $ 150,000 and $-0- as of May 5, 2000, 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.
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
administrative, anticipated capital expenditures, and expectations regarding
inventory balances, liquidity and adequacy of cash resources under the
sub-headings 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 form 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.
<PAGE>
BOVIE MEDICAL CORPORATION
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company has instituted an action for breach of contract against Advanced
Refractory Technology, Inc. (ART) - (A former major shareholder) to recover a
deposit of $125,000 .
Also see Form 10-KSB for the year ended December 31, 1999. 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.
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,
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 595,280
<SECURITIES> 0
<RECEIVABLES> 1,041,808
<ALLOWANCES> 0
<INVENTORY> 1,809,823
<CURRENT-ASSETS> 3,817,433
<PP&E> 2,009,139
<DEPRECIATION> 560,739
<TOTAL-ASSETS> 7,472,501
<CURRENT-LIABILITIES> 1,441,566
<BONDS> 0
0
0
<COMMON> 14,040
<OTHER-SE> 6,016,895
<TOTAL-LIABILITY-AND-EQUITY> 7,472,501
<SALES> 2,174,324
<TOTAL-REVENUES> 2,174,324
<CGS> 1,131,321
<TOTAL-COSTS> 2,117,340
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 15,084
<INCOME-PRETAX> 56,836
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 56,836
<EPS-BASIC> .01
<EPS-DILUTED> .01
</TABLE>
