Delaware
No.
|
11-2644611
|
|
(State
or other jurisdiction of incorporation or organization)
|
(IRS
Employer Identification
No.)
|
Title of each Class
|
Name of each Exchange on which
registered
|
Common
Stock, $.001 Par Value
|
NYSE
Alternext Market
|
Large
accelerated filer £
|
Accelerated
filer S
|
Non-accelerated
filer £
|
Small
reporting company £
|
Part
I
|
Page
|
|
Item
1
|
1
|
|
Item
1A
|
5
|
|
Item
1B
|
10
|
|
Item
2
|
10
|
|
Item
3
|
10
|
|
Item
4.
|
10
|
|
Part II
|
||
Item
5.
|
11
|
|
Item
6.
|
13
|
|
Item
7
|
14
|
|
Item
7A
|
24
|
|
Item
8
|
24
|
|
Item
9
|
24
|
|
Item
9A
|
25
|
|
Item
9B
|
26
|
|
Part III
|
||
Item
10
|
26
|
|
Item
11
|
30
|
|
Item
12
|
36
|
|
Item
13.
|
38
|
|
Item
14
|
40
|
|
Part IV
|
||
Item
15
|
|
-
|
A
new surgical handle platform called the Polarian. The Polarian handle
supports a plurality of electrical and mechanical modes to be used in
conjunction with disposable, Seal-N-Cut bipolar cartridges. This is an
advanced entrant into the growing vessel and tissue sealing and cutting
market.
|
|
-
|
Tip-On-Tube
a disposable tip technology complementary to Bovie’s previously acquired
and announced Modular Ergonomic Grip (MEG) forceps. Bovie
acquired the MEG technology in January
2006.
|
·
|
Product
development.
|
·
|
Product
testing.
|
·
|
Product
labeling.
|
·
|
Product
storage.
|
·
|
Pre-market
clearance or approval.
|
·
|
Advertising
and promotion.
|
·
|
Product
traceability, and
|
·
|
Product
indications.
|
·
|
Results
of bench and laboratory tests, animal studies, and clinical
studies
|
·
|
A
complete description of the device and its
components
|
·
|
A
detailed description of the methods, facilities and controls used to
manufacture the device, and proposed
labeling.
|
·
|
Quality
system regulations.
|
·
|
Medical
device reporting regulations, and
|
·
|
FDA
restrictions on promoting products for unapproved or off-label
uses.
|
·
|
Description
of the device and its components,
|
.
|
A
summary of how the device complies with the essential requirements of the
medical
devices directive,
|
·
|
Safety
(risk assessment) and performance of the
device,
|
·
|
Clinical
evaluations with respect to the
device,
|
·
|
Methods,
facilities and quality controls used to manufacture the device,
and
|
·
|
Proposed
labeling for the device.
|
|
·
|
Our
executive office at 734 Walt Whitman Road, Melville, New York which is
leased for approximately $1,500 per
month.
|
|
·
|
A 28,000
square foot manufacturing facility at 7100 30th
Ave N., St Petersburg, Florida which we
own.
|
|
·
|
A
research and manufacturing facility at 4056 North Services Rd. E.,
Windsor, Canada which is leased for approximately $2,800 per month through
December 2010.
|
|
·
|
A
research and manufacturing facility at 3200 Tyrone Blvd., St. Petersburg,
Florida which is leased for approximately $12,700 per month under a lease
that expires in September 2013.
|
2008
|
High
|
Low
|
||||||
4th
Quarter
|
$ | 7.57 | $ | 3.90 | ||||
3rd
Quarter
|
8.05 | 6.51 | ||||||
2nd
Quarter
|
9.27 | 6.27 | ||||||
1st
Quarter
|
6.69 | 5.50 | ||||||
2007
|
High
|
Low
|
||||||
4th
Quarter
|
$ | 8.21 | $ | 6.00 | ||||
3rd
Quarter
|
7.39 | 5.30 | ||||||
2nd
Quarter
|
8.18 | 5.80 | ||||||
1st
Quarter
|
9.54 | 6.93 | ||||||
Cumulative
Total Return
|
||||||||||||||||||||||||
12/03
|
12/04
|
12/05
|
12/06
|
12/07
|
12/08
|
|||||||||||||||||||
Bovie
Medical Corporation
|
100.00 | 82.74 | 97.07 | 295.44 | 208.47 | 203.26 | ||||||||||||||||||
NASDAQ
Medical Industry Index
|
100.00 | 117.17 | 128.72 | 135.76 | 172.51 | 92.91 | ||||||||||||||||||
Peer
Group
|
100.00 | 100.11 | 119.08 | 111.84 | 117.07 | 79.67 |
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
Sales,
net
|
$ | 28,097 | $ | 28,779 | $ | 26,676 | $ | 20,211 | $ | 20,495 | ||||||||||
Cost
of sales
|
16,248 | 17,464 | 16,075 | 12,649 | 12,638 | |||||||||||||||
Gross
Profit
|
11,849 | 11,315 | 10,601 | 7,562 | 7,857 | |||||||||||||||
Other
costs:
|
||||||||||||||||||||
Research
and development
|
2,061 | 1,643 | 1,048 | 986 | 907 | |||||||||||||||
Professional
services
|
991 | 738 | 520 | 447 | 416 | |||||||||||||||
Salaries
and related costs
|
3,017 | 2,805 | 2,558 | 2,011 | 1,977 | |||||||||||||||
Selling,
general and administration
|
4,489 | 4,023 | 3,712 | 3,553 | 3,249 | |||||||||||||||
Development
cost - joint venture
|
- | - | 139 | 161 | 39 | |||||||||||||||
Total
other costs
|
10,558 | 9,209 | 7,977 | 7,158 | 6,588 | |||||||||||||||
Income
from operations
|
1,291 | 2,106 | 2,624 | 404 | 1,269 | |||||||||||||||
Other
income and (expense):
|
||||||||||||||||||||
Other
income
|
1,496 | - | - | - | 245 | |||||||||||||||
Interest
income
|
49 | 143 | 103 | 47 | 3 | |||||||||||||||
Interest
expense
|
(59 | ) | (3 | ) | (16 | ) | (23 | ) | ( 15 | ) | ||||||||||
Total
other income (expense) - net
|
1,486 | 140 | 87 | 24 | 233 | |||||||||||||||
Income
before minority interest and income taxes
|
2,777 | 2,246 | 2,711 | 428 | 1,502 | |||||||||||||||
Minority
interest
|
- | 5 | 20 | 10 | 10 | |||||||||||||||
Benefit
(provision) for income taxes
|
(945 | ) | (6 | ) | (48 | ) | (32 | ) | - | |||||||||||
Net
income
|
$ | 1,832 | $ | 2,245 | $ | 2,683 | $ | 406 | $ | 1,512 | ||||||||||
Earnings
per common share:
|
||||||||||||||||||||
Basic
|
$ | 0.11 | $ | 0.15 | $ | 0.19 | $ | 0.03 | $ | 0.11 | ||||||||||
Diluted
|
$ | 0.11 | $ | 0.13 | $ | 0.16 | $ | 0.03 | $ | 0.09 | ||||||||||
Balance
Sheet Information:
|
||||||||||||||||||||
Cash
and cash equivalents
|
$ | 2,565 | $ | 3,535 | $ | 2,953 | $ | 1,295 | $ | 2,294 | ||||||||||
Working
capital
|
$ | 9,796 | $ | 10,006 | $ | 7,955 | $ | 5,501 | $ | 5,551 | ||||||||||
Total
assets
|
$ | 25,779 | $ | 19,066 | $ | 16,686 | $ | 11,771 | $ | 11,169 | ||||||||||
Long-term
debt
|
$ | 4,143 | $ | 318 | $ | 368 | $ | 0 | $ | 348 | ||||||||||
Stockholders’
equity
|
$ | 18,788 | $ | 16,637 | $ | 14,060 | $ | 9,802 | $ | 9,257 |
Year Ended
|
||||||||||||
December 31,
2008
|
December 31,
2007
|
December 31,
2006
|
||||||||||
Sales
|
100.0 | % | 100.0 | % | 100.0 | % | ||||||
Cost
of sales
|
57.8 | 60.7 | 60.3 | |||||||||
Gross
profit
|
42.2 | 39.3 | 39.7 | |||||||||
Other
costs:
|
||||||||||||
Research
and development
|
7.3 | 5.7 | 3.9 | |||||||||
Professional
fees
|
3.5 | 2.6 | 2.0 | |||||||||
Salaries
and related costs
|
10.8 | 9.7 | 9.6 | |||||||||
Selling,
general and administration
|
16.0 | 14.0 | 13.9 | |||||||||
Development
cost - joint venture
|
- | - | 0.5 | |||||||||
Total
other costs
|
37.6 | 32.0 | 29.9 | |||||||||
Income
from operations
|
4.6 | 7.3 | 9.8 | |||||||||
Other
income/expense
|
5.3 | 0.5 | 0.3 | |||||||||
Net
income before taxes and minority expense
|
9.9 | 7.8 | 10.1 | |||||||||
Minority
interest
|
0.0 | 0.0 | 0.1 | |||||||||
Benefit
(provision) for income taxes
|
(3.4 | ) | 0.5 | (0.2 | ) | |||||||
Net
income
|
6.5 | 8.3 | 10.0 |
Net
Sales (in thousands)
|
Percentage
|
|||||||||||||||
Increase
|
Change
|
|||||||||||||||
2008
|
2007
|
(Decrease)
|
2008/2007
|
|||||||||||||
Domestic/international
sales
|
||||||||||||||||
Domestic
|
$ | 23,176 | $ | 24,474 | $ | (1,298 | ) | (5.3 | )% | |||||||
International
|
4,920 | 4,305 | 615 | 14.3 | % | |||||||||||
Total
net sales
|
$ | 28,096 | $ | 28,779 | $ | (683 | ) | (2.4 | )% | |||||||
Product
sales:
|
||||||||||||||||
Electrosurgical
|
$ | 19,473 | $ | 20,284 | $ | (811 | ) | (4.0 | )% | |||||||
Cauteries
|
6,265 | 6,131 | 134 | 2.2 | % | |||||||||||
Other
|
2,358 | 2,364 | (6 | ) | 0.0 | % | ||||||||||
Total
net sales
|
$ | 28,096 | $ | 28,779 | $ | (683 | ) | (2.4 | )% |
Net
Sales (in thousands)
|
Percentage
|
|||||||||||||||
Increase
|
Change
|
|||||||||||||||
2007
|
2006
|
(Decrease)
|
2007/2006 | |||||||||||||
Domestic/international
sales
|
||||||||||||||||
Domestic
|
$ | 24,474 | $ | 23,431 | $ | 1,043 | 4.5 | % | ||||||||
International
|
4,305 | 3,245 | 1,060 | 32.7 | % | |||||||||||
Total
net sales
|
$ | 28,779 | $ | 26,676 | $ | 2,103 | 7.9 | % | ||||||||
Product
sales:
|
||||||||||||||||
Electrosurgical
|
$ | 20,284 | $ | 18,255 | $ | 2,029 | 11.1 | % | ||||||||
Cauteries
|
6,131 | 5,846 | 285 | 4.9 | % | |||||||||||
Other
|
2,364 | 2,575 | (211 | ) | (8.1 | )% | ||||||||||
Total
net sales
|
$ | 28,779 | $ | 26,676 | $ | 2,103 | 7.9 | % |
Description
|
Years
Ending December 31,
|
|||||||||||||||||||||||
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
|||||||||||||||||||
Operating
leases
|
282 | 278 | 252 | 247 | 223 | 11 | ||||||||||||||||||
Employment
agreements
|
1,038 | 814 | 64 | - | - | |||||||||||||||||||
Purchase
Commitments
|
5,766 | - | - | - | - | - |
|
•
|
pertain
to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of our
assets;
|
|
•
|
provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted
accounting principles, and that our receipts and expenditures are being
made only in accordance with authorizations of our management and
directors; and
|
|
•
|
provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of our assets that could have
a material effect on the financial
statements.
|
Name
|
Position
|
Director Since
|
||
Andrew
Makrides
|
Chairman
of the Board, President, and CEO
|
December
1982
|
||
J.
Robert Saron
|
President
of Aaron Medical Industries, Inc. and Director
|
August
1994
|
||
George
Kromer
|
Research
Analyst and Director
|
October
1995
|
||
Brian
Madden
|
Director
|
September
2003
|
||
Randy
Rossi
|
Director
|
September
2004
|
||
Michael
Norman
|
Director
|
September
2004
|
||
August
Lentricchia
|
Director
|
October
2007
|
||
Moshe
Citronowicz
|
Executive
Vice President and Chief Operating Officer
|
|||
Gary
D. Pickett
|
Chief
Financial Officer, Treasurer, and Secretary
|
|||
Steve
Livneh
|
President
of Bovie Canada and Director
|
April
2008
|
||
Steven
MacLaren
|
Director
|
April
2008
|
|
•
|
reviewed
and discussed our audited financial statements with management and Kingery
& Crouse, P. A., the independent
accountants
|
|
•
|
discussed with Kingery &
Crouse, P.A. matters required to be discussed by Statement on Auditing
Standards No. 114,
Communications with Audit Committees, as may be modified or
supplemented; and
|
|
•
|
received from Kingery &
Crouse, P. A. the written disclosures and the letter regarding their
independence as required by PCAOB Rule
3526, Communication with Audit Committees Concerning
Independence, as may
be modified or supplemented, and discussed the auditors’ independence with
them.
|
Name
And
Principal
Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Stock
Awards
($)
|
Option
Awards
($)
|
Non-
Equity
Incentive
Plan
Compensa-
tion
Earnings
($)
|
Change
in
Pension
Value
and
Nonquali-
fied
Deferred
compen-
sation
Earnings
($)
|
All
Other
Compen-
Sation
($)
|
Total
($)
|
|||||||||||||||||||||||||
(a)
|
(b)
|
(c)
|
(d)
|
(e)
|
(f)
|
(g)
|
(h)
|
(i)
|
(j)
|
|||||||||||||||||||||||||
Andrew
|
2008
|
$ | 208,598 | $ | 3,870 | 0 | 0 | 0 | 0 | $ | 20,553 | (8) | $ | 223,022 | ||||||||||||||||||||
Makrides
|
2007
|
$ | 195,452 | $ | 3,685 | 0 | 0 | 0 | 0 | $ | 21,770 | (6) | $ | 220,907 | ||||||||||||||||||||
President,
|
2006
|
$ | 217,358 | * (1) | $ | 3,685 | 0 | 0 | 0 | 0 | $ | 19,646 | (7) | $ | 240,689 | |||||||||||||||||||
CEO,
|
|
|||||||||||||||||||||||||||||||||
Chairman
of the Board
|
||||||||||||||||||||||||||||||||||
Gary
D.
|
2008
|
$ | 104,083 | $ | 1,961 | 0 | 0 | 0 | 0 | $ | 3,316 | (19) | $ | 109,360 | ||||||||||||||||||||
Pickett
|
2007
|
$ | 94,457 | $ | 1,904 | 0 | 88,200 | *(5) | 0 | 0 | $ | 3,097 | (9) | $ | 187,658 | |||||||||||||||||||
CFO,
|
2006
|
$ | 66,442 | * (A)(4) | $ | 1,731 | 0 | 0 | 0 | 0 | $ | 1,488 | (10) | $ | 69,661 | |||||||||||||||||||
Treasurer,
|
|
|||||||||||||||||||||||||||||||||
Secretary
|
||||||||||||||||||||||||||||||||||
J.
Robert
|
2008
|
$ | 295,650 | $ | 5,480 | 0 | 0 | 0 | 0 | $ | 21,312 | (13) | $ | 322,442 | ||||||||||||||||||||
Saron
|
2007
|
$ | 276,680 | $ | 5,218 | 0 | 0 | 0 | 0 | $ | 20,413 | (11) | $ | 302,311 | ||||||||||||||||||||
President
|
2006
|
$ | 281,109 | * (2) | $ | 5,218 | 0 | 0 | 0 | 0 | $ | 16,201 | (12) | $ | 302,528 | |||||||||||||||||||
Aaron
|
||||||||||||||||||||||||||||||||||
Medical
and
|
||||||||||||||||||||||||||||||||||
Director
|
||||||||||||||||||||||||||||||||||
Moshe
|
2008
|
$ | 213,197 | $ | 4,026 | 0 | 0 | 0 | 0 | $ | 21,055 | (16) | $ | 238,278 | ||||||||||||||||||||
Citronowicz
|
2007
|
$ | 203,349 | $ | 3,834 | 0 | 0 | 0 | 0 | $ | 20,109 | (14) | $ | 227,292 | ||||||||||||||||||||
Vice
|
2006
|
$ | 242,947 | * (3) | $ | 3,834 | 0 | 0 | 0 | 0 | $ | 18,506 | (15) | $ | 265,287 | |||||||||||||||||||
President
|
||||||||||||||||||||||||||||||||||
Chief
|
||||||||||||||||||||||||||||||||||
Operating
|
||||||||||||||||||||||||||||||||||
Officer
|
||||||||||||||||||||||||||||||||||
Steve
|
2008
|
$ | 164,959 | $ | 2,747 | 0 | 0 | 0 | 0 | $ | 6,575 | (20) | $ | 174,281 | ||||||||||||||||||||
Livneh
|
2007
|
$ | 174,155 | $ | 3,523 | 0 | 0 | 0 | 0 | $ | 12,664 | (17) | $ | 190,342 | ||||||||||||||||||||
President
|
2006
|
$ | 36,060 | * (B) | $ | 2,885 | 0 | 0 | 0 | 0 | $ | 1,750 | (18) | $ | 40,695 | |||||||||||||||||||
Bovie
|
||||||||||||||||||||||||||||||||||
Canada
|
|
(a)
|
Upon
the death of the Executive, the Executive’s estate shall be paid the basic
annual compensation due the Employee pro-rated through the date of
death.
|
|
(b)
|
By
the resignation of the Executive at any time upon at least thirty (30)
days prior written notice to Bovie in which case Bovie shall be obligated
to pay the Employee the basic annual compensation due him pro-rated to the
effective date of termination,
|
|
(c)
|
By
Bovie, for cause if during the term of the Employment Agreement the
Employee violates the non-competition provisions of his employment
agreement, or is found guilty in a court of law of any crime of moral
turpitude.
|
|
(d)
|
By
Bovie, without cause, with the majority approval of the Board of
Directors, at any time upon at least thirty (30) days prior written notice
to the Executive. In this case Bovie shall be obligated to pay the
Executive compensation in effect at such time, including all bonuses,
accrued or prorated, and expenses up to the date of termination.
Thereafter, for the period remaining under the contract, Bovie shall pay
the Executive the salary in effect at the time of termination payable
weekly until the end of their
contract.
|
|
(e)
|
If
Bovie fails to meet its obligations to the Executive on a timely basis, or
if there is a change in the control of Bovie, the Executive may elect to
terminate his employment agreement. Upon any such termination or breach of
any of its obligations under the Employment Agreement, Bovie shall pay the
Executive a lump sum severance equal to three times the annual salary and
bonus in effect the month preceding such termination or breach as well as
any other sums which may be due under the terms of the Employment
Agreement up to the date of
termination.
|
Option
Awards
|
||||||||
Name
|
Number
of Shares
Acquired
on Exercise
|
Value
Realized Upon
Exercise ($) (1)
|
||||||
Andrew
Makrides
|
390,000 | $ | 2,313,700 | |||||
J.
Robert Saron
|
195,000 | $ | 1,156,850 | |||||
Moshe
Citronowicz
|
390,000 | $ | 2,313,700 | |||||
Steve
Livneh
|
-- | -- | ||||||
Gary
Pickett
|
-- | -- |
(1)
|
The
value realized equals the excess of the fair market value of our common
stock on the exercise date over the option exercise price, multiplied by
the number of options
exercised.
|
|
Outstanding
Equity Awards at 12/31/08
|
||||||||||||||
Name
|
|
# of Securities Underlying
Unexercised Options
(# Exercisable)
|
#
of Securities Underlying Unexercised Options
(# Unexercisable)
(*)
|
Option
Exercise Price
($/sh)
|
Option
Expiration Date
|
||||||||||
Andrew
Makrides
|
|
25,000 | -- | 3.25 |
9/29/2013
|
||||||||||
|
25,000 | -- | 2.13 |
9/23/2014
|
|||||||||||
|
25,000 | -- | 2.25 |
5/5/2015
|
|||||||||||
J.
Robert Saron
|
|
12,500 | -- | 3.25 |
9/29/2013
|
||||||||||
|
12,500 | -- | 2.13 |
9/23/2014
|
|||||||||||
|
12,500 | -- | 2.25 |
5/5/2015
|
|||||||||||
Moshe
Citronowicz
|
25,000 | -- | 3.25 |
9/29/2013
|
|||||||||||
25,000 | -- | 2.13 |
9/23/2014
|
||||||||||||
25,000 | -- | 2.25 |
5/5/2015
|
||||||||||||
Gary
Pickett
|
|
20,000 | -- | 8.66 |
1/12/2017
|
||||||||||
|
5,000 | -- | 7.10 |
3/29/2017
|
|||||||||||
Steve
Livneh
|
(1)
|
100,000 | -- | 3.26 |
1/1/2016
|
Name
|
Fees
Earned Or Paid In Cash ($)
|
Stock
Awards
($)
|
Option
Awards
($)
|
Non-Equity
Incentive Plan
Compensation
($)
|
Change
in Pension Value and Nonqualified Deferred Compensation
Earnings
($)
|
All
Other Compensation
($)
|
Total
($)
|
|||||||||||||||||||||
(a)
|
(b)
|
(c)
|
(d)
|
(e)
|
(f)
|
(g)
|
(h)
|
|||||||||||||||||||||
Brian
Madden
|
0 | 0 | $ | 32,250 | * (1) | 0 | 0 | 0 | $ | 32,250 | ||||||||||||||||||
Michael
Norman
|
0 | 0 | $ | 32,250 | * (2) | 0 | 0 | 0 | $ | 32,250 | ||||||||||||||||||
Randy
Rossi
|
0 | 0 | $ | 28,200 | * (3) | 0 | 0 | 0 | $ | 28,200 | ||||||||||||||||||
Steven
MacLaren
|
0 | 0 | $ | 21,150 | * (4) | 0 | 0 | 0 | $ | 21,150 |
Number
of Shares
|
Nature
of
|
Percentage
of
|
||||||
Name
and Address
|
Title
|
Owned
(i)
|
Ownership
|
Ownership
(i)
|
||||
The
Frost National Bank
|
Common
|
300,000
|
Beneficial
|
1.8%
|
||||
FBO
Renaissance
|
||||||||
US
Growth Investment
|
||||||||
Trust
PLC.
|
||||||||
Trust
no. W00740100
|
||||||||
The
Frost National Bank
|
Common
|
1,000,000
|
Beneficial
|
5.9%
|
||||
FBO,
BFS US Special
|
||||||||
Opportunities
Trust PLC.
|
||||||||
Trust
no. W00118000
|
||||||||
Directors
and Officers
|
||||||||
Andrew
Makrides
|
Common
|
779,213(ii)
|
Beneficial
|
4.6%
|
||||
734
Walt Whitman Road
|
||||||||
Melville,
NY 11746
|
||||||||
George
Kromer
|
Common
|
357,008(iii)
|
Beneficial
|
2.1%
|
||||
P.O.
Box 188
|
||||||||
Farmingville,
NY 11738
|
J.
Robert Saron
|
Common
|
484,819(iv)
|
Beneficial
|
2.9%
|
||||
7100
30th
Avenue North
|
||||||||
St.
Petersburg, FL 33710
|
||||||||
Brian
Madden
|
Common
|
115,500
(vi)
|
Beneficial
|
0.7%
|
||||
300
Garden City Plaza
|
||||||||
Garden
City, NY 11530
|
||||||||
Mike
Norman
|
Common
|
85,000(vii)
|
Beneficial
|
0.5%
|
||||
410
Jericho Tpke.
|
||||||||
Jericho,
NY
|
||||||||
Randy
Rossi
|
Common
|
55,000(viii)
|
Beneficial
|
0.3%
|
||||
2641
Kelliwood Circle
|
||||||||
Shreveport,
LA
|
||||||||
Moshe
Citronowicz
|
Common
|
541,504
(v)
|
Beneficial
|
3.2%
|
||||
7100
30th
Avenue North
|
||||||||
St.
Petersburg, FL 33710
|
||||||||
Gary
Pickett
|
Common
|
25,000
(ix)
|
Beneficial
|
0.2%
|
||||
7100
30th
Avenue North
|
||||||||
St.
Petersburg, FL 33710
|
||||||||
Steve
Livneh
|
Common
|
300,000
(x)
|
Beneficial
|
1.8%
|
||||
4056
North Services Rd. E.
|
||||||||
Windsor,
Canada
|
||||||||
August
Lentricchia
|
Common
|
9,100
(xi)
|
Beneficial
|
0.1%
|
||||
734
Walt Whitman Road
|
||||||||
Melville,
NY 11746
|
||||||||
Steven
MacLaren
|
Common
|
12,500
(xii)
|
Beneficial
|
0.1%
|
||||
7100
30th
Avenue North
|
||||||||
St.
Petersburg, FL 33710
|
||||||||
Officers
and Directors as a group (11 Persons)
|
2,764,644(xiii)
|
16.3%
|
|
·
|
Cash
of $350,000; $150,000 of which was paid at inception and $100,000 of which
was paid in two installments of $50,000 in October 2007 and October 2008.
The remaining $100,000 is to be paid in $50,000 installments in October
2009 and October 2010.
|
|
·
|
200,000
shares of our restricted common stock; 80,000 of which vested immediately,
40,000 of which vested in October 2006, 40,000 of which vested in October
2007 and 40,000 of which vested in October
2008
|
|
·
|
80,000
shares upon the receipt of certain FDA marketing
clearances.
|
|
·
|
17,500
shares upon the Company attaining $1,000,000 in net sales of the “Seal and
Cut Product”
|
|
·
|
17,500
shares upon the Company attaining $3,000,000 in net sales of the “Seal and
Cut Product”
|
|
·
|
17,500
shares upon the Company attaining $1,000,000 in net sales of the
“Modullion Product”
|
|
·
|
17,500
shares upon the Company attaining $3,000,000 in net sales of the
“Modullion Product”
|
|
·
|
Tip-On-Tube
a disposable tip technology complementary to Bovie’s previously acquired
and announced Modular Ergonomic Grip (MEG) forceps. Bovie
acquired the MEG technology in January
2006.
|
|
·
|
A
new surgical handle platform called the Polarian. The Polarian handle
supports a plurality of electrical and mechanical modes to be used in
conjunction with disposable, Seal-N-Cut bipolar cartridges. This is an
advanced entrant into the growing vessel and tissue sealing and cutting
market.
|
2008
|
2007
|
|||||||
Audit
Fees (1)
|
$ | 162,651 | $ | 133,652 | ||||
Non-Audit
Fees:
|
||||||||
Related
Fees(2)
|
52,935 | -- | ||||||
Tax
Fees(3)
|
5,689 | 4,400 | ||||||
All
other Fees(4)
|
12,882 | 15,206 | ||||||
Total
Fees billed
|
$ | 234,157 | $ | 153,258 |
Bovie
Medical Corporation
|
|
By:
/s/ Andrew Makrides
|
|
Andrew
Makrides
|
|
President
|
|
Chairman
of the Board
|
|
Bovie
Medical Corporation
|
|
/s/Gary D. Pickett
|
|
Gary
D. Pickett
|
|
Chief
Financial
Officer
|
Page
|
|
Report
of Independent Registered Public Accounting Firm
|
F-1
|
Report
of Predecessor Independent Registered Public Accounting
Firm
|
F-2
|
Consolidated
Balance Sheets at December 31, 2008 and 2007
|
F-3
|
Consolidated
Statements of Operations for the years ended December 31, 2008, 2007 and
2006
|
F-5
|
Consolidated
Statements of Stockholders' Equity and Comprehensive Loss for the years
ended December 31, 2008, 2007 and 2006
|
F-6
|
Consolidated
Statements of Cash Flows for the years ended December 31, 2008, 2007 and
2006
|
F-7
|
Notes
to Consolidated Financial Statements
|
F-8
|
ASSETS
|
2008
|
2007
|
||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 2,564,443 | $ | 3,534,759 | ||||
Trade
accounts receivable, net
|
2,991,715 | 2,525,451 | ||||||
Inventories
|
5,838,464 | 4,521,992 | ||||||
Prepaid
expenses
|
501,097 | 278,262 | ||||||
Deferred
income tax asset, net
|
216,885 | 848,223 | ||||||
Total
current assets
|
12,112,604 | 11,708,687 | ||||||
Property
and equipment, net
|
7,125,943 | 3,421,455 | ||||||
Other
assets:
|
||||||||
Brand
name and trademark
|
1,509,662 | 1,509,662 | ||||||
Purchased
technology, net
|
3,479,752 | 2,102,844 | ||||||
License
rights, net
|
215,673 | 278,797 | ||||||
Restricted
cash held in escrow
|
1,285,117 | - | ||||||
Deposits
|
50,144 | 44,438 | ||||||
Total
other assets
|
6,540,348 | 3,935,741 | ||||||
Total
Assets
|
$ | 25,778,895 | $ | 19,065,883 | ||||
The
accompanying notes are an integral part of the consolidated financial
statements.
|
LIABILITIES
|
2008
|
2007
|
||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 1,317,578 | $ | 807,437 | ||||
Deferred
revenue
|
24,538 | 56,386 | ||||||
Accrued
payroll
|
61,168 | 113,308 | ||||||
Accrued
vacation
|
237,633 | 229,591 | ||||||
Customers
deposits
|
168 | 36,077 | ||||||
Current
portion of amounts due to Lican
|
50,000 | 50,000 | ||||||
Current
income taxes payable
|
77,943 | - | ||||||
Current
portion of mortgage note payable to bank
|
125,000 | - | ||||||
Accrued
and other liabilities
|
422,941 | 409,880 | ||||||
Total
current liabilities
|
2,316,969 | 1,702,679 | ||||||
Deferred
income taxes payable
|
530,863 | 408,188 | ||||||
Mortgage
note payable to bank, net of current portion
|
3,875,000 | - | ||||||
Due
to Lican, net of current portion
|
268,150 | 318,150 | ||||||
Total
liabilities
|
6,990,982 | 2,429,017 | ||||||
Commitments
and Contingencies (see Note 10)
|
||||||||
Stockholders'
equity:
|
||||||||
Preferred
stock, par value $.001; 10,000,000 shares authorized; none issued and
outstanding
|
-- | -- | ||||||
Common
stock, par value $.001 par value; 40,000,000 shares authorized; 16,795,269
and 15,547,088 issued and 16,652,694 and 15,404,513 outstanding on
December 31, 2008 and December 31, 2007 respectively,
|
16,796 | 15,457 | ||||||
Additional
paid-in capital
|
22,841,545 | 22,435,161 | ||||||
Accumulated
other comprehensive income (loss)
|
(88,464 | ) | - | |||||
Deficit
|
(3,981,964 | ) | (5,813,752 | ) ) | ||||
Total
stockholders' equity
|
18,787,913 | 16,636,866 | ||||||
Total
Liabilities and Stockholders' Equity
|
$ | 25,778,895 | $ | 19,065,883 | ||||
The
accompanying notes are an integral part of the consolidated financial
statements.
|
2008
|
2007
|
2006
|
||||||||||
Sales,
net
|
$ | 28,096,510 | $ | 28,779,157 | $ | 26,676,182 | ||||||
Cost
of sales
|
16,247,702 | 17,463,644 | 16,075,426 | |||||||||
Gross
Profit
|
11,848,808 | 11,315,513 | 10,600,756 | |||||||||
Other
costs:
|
||||||||||||
Research
and development
|
2,060,854 | 1,643,092 | 1,048,175 | |||||||||
Professional
services
|
990,814 | 737,800 | 519,861 | |||||||||
Salaries
and related costs
|
3,016,447 | 2,805,082 | 2,558,170 | |||||||||
Selling,
general and administration
|
4,489,415 | 4,023,033 | 3,711,795 | |||||||||
Development
cost - joint venture
|
-- | -- | 138,913 | |||||||||
Total
other costs
|
10,557,530 | 9,209,007 | 7,976,914 | |||||||||
Income
from operations
|
1,291,278 | 2,106,506 | 2,623,842 | |||||||||
Other
income (expense):
|
||||||||||||
Interest
income
|
48,762 | 142,721 | 103,088 | |||||||||
Minority
interest
|
-- | 5,000 | 20,000 | |||||||||
Interest
expense
|
(58,463 | ) | (2,471 | ) | (16,157 | ) | ||||||
Gain
from contract settlement
|
1,495,634 | -- | -- | |||||||||
Total
other income, net
|
1,485,933 | 145,250 | 106,931 | |||||||||
Income
before income taxes
|
2,777,211 | 2,251,756 | 2,730,773 | |||||||||
Provision
for current income taxes
|
(200,410 | ) | (60,000 | ) | (47,567 | ) | ||||||
Benefit
(provision) for deferred income taxes
|
(745,013 | ) | 53,835 | -- | ||||||||
Total
provision for income taxes - net
|
(945,423 | ) | (6,165 | ) | (47,567 | ) | ||||||
Net
income
|
$ | 1,831,788 | $ | 2,245,591 | $ | 2,683,206 | ||||||
Earnings
per common share:
|
||||||||||||
Basic
|
$ | 0.11 | $ | 0.15 | $ | 0.19 | ||||||
Diluted
|
$ | 0.11 | $ | 0.13 | $ | 0.16 | ||||||
Weighted
average number of common shares outstanding
|
16,071,229 | 15,324,508 | 14,537,025 | |||||||||
Weighted
average number of common shares outstanding adjusted for dilutive
securities
|
17,086,798 | 17,684,705 | 16,909,103 | |||||||||
The
accompanying notes are an integral part of the consolidated financial
statements.
|
Accumulated
|
||||||||||||||||||||||||
Additional
|
Other
|
|||||||||||||||||||||||
Common
|
Paid-in
|
Comprehensive
|
||||||||||||||||||||||
Shares
|
Par
Value
|
Capital
|
Deficit
|
Loss
|
Total
|
|||||||||||||||||||
January
1, 2006
|
14,040,728 | 14,059 | $ | 20,530,090 | $ | (10,742,549 | ) | $ | - | $ | 9,801,600 | |||||||||||||
Options
exercised
|
982,810 | 982 | 794,944 | - | - | 795,926 | ||||||||||||||||||
Stock
based compensation
|
- | - | 41,097 | - | - | 41,097 | ||||||||||||||||||
Stock
options issued to acquire assets
|
- | - | 63,300 | - | - | 63,300 | ||||||||||||||||||
Stock
issued to acquire assets
|
200,000 | 200 | 674,968 | - | - | 675,168 | ||||||||||||||||||
Income
for year
|
- | - | - | 2,683,206 | - | 2,683,206 | ||||||||||||||||||
December
31, 2006
|
15,223,538 | 15,241 | 22,104,399 | (8,059,343 | ) | - | 14,060,297 | |||||||||||||||||
Options
exercised
|
225,300 | 225 | 309,925 | - | - | 310,150 | ||||||||||||||||||
Stock
based compensation
|
- | - | 72,089 | - | - | 72,089 | ||||||||||||||||||
Stock Tender
to acquire options
|
(9,179 | ) | (9 | ) | (56,241 | ) | - | - | (56,250 | ) | ||||||||||||||
Other
|
17,429 | 4,989 | - | - | 4,989 | |||||||||||||||||||
Income
for year
|
- | - | - | 2,245,591 | - | 2,245,591 | ||||||||||||||||||
December
31, 2007
|
15,457,088 | 15,457 | 22,435,161 | (5,813,752 | ) | - | 16,636,866 | |||||||||||||||||
Options
exercised
|
1,488,750 | 1,489 | 1,195,606 | - | - | 1,197,095 | ||||||||||||||||||
Stock
based compensation
|
- | - | 184,697 | - | - | 184,697 | ||||||||||||||||||
Stock
Tender to acquire options
|
(150,569 | ) | (150 | ) | (973,919 | ) | - | - | (974,069 | ) | ||||||||||||||
Income
for year
|
- | - | - | 1,831,788 | - | 1,831,788 | ||||||||||||||||||
Foreign
currency remeasurement
|
- | - | - | - | (88,464 | ) | (88,464 | ) | ||||||||||||||||
Comprehensive
income
|
- | - | - | - | - | 1,743,324 | ||||||||||||||||||
December
31, 2008
|
16,795,269 | $ | 16,796 | $ | 22,841,545 | $ | (3,981,964 | ) | $ | (88,464 | ) | $ | 18,787,913 |
The
accompanying notes are an integral part of the consolidated financial
statements.
|
2008
|
2007
|
2006
|
||||||||||
Cash flows from operating
activities:
|
||||||||||||
Net
income
|
$ | 1,831,788 | $ | 2,245,591 | $ | 2,683,206 | ||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||||
Depreciation
and amortization of property and equipment
|
784,411 | 666,162 | 479,826 | |||||||||
Amortization
of intangible assets
|
188,658 | 104,664 | 69,434 | |||||||||
Provision
for (recovery of) inventory obsolescence
|
(29,118 | ) | (100,565 | ) | (141,370 | ) | ||||||
Loss
on disposal of fixed assets
|
6,557 | 10,806 | 29,422 | |||||||||
Stock-based
compensation
|
184,698 | 72,089 | 41,098 | |||||||||
Stock-based
expense for Henvil asset purchase
|
-- | -- | 20,886 | |||||||||
Noncash
reclassification adjustment
|
10,325 | 4,989 | -- | |||||||||
Provision
(benefit) for deferred income taxes
|
754,013 | (53,,835 | ) | -- | ||||||||
Provision
for (recovery of) bad debts
|
(89 | ) | 3,375 | (7,506 | ) | |||||||
Minority
interest in net loss of joint venture
|
- | (5,000 | ) | (20,000 | ) | |||||||
Gain
on cancellation of agreement
|
(1,495,634 | ) | -- | -- | ||||||||
Change
in assets and liabilities:
|
||||||||||||
Trade
receivables
|
(466,175 | ) | 288,731 | (493,290 | ) | |||||||
Prepaid
expenses
|
(222,835 | ) | 124,161 | (66,931 | ) | |||||||
Inventories
|
(1,287,354 | ) | (812,127 | ) | (471,099 | ) | ||||||
Deposits
|
(5,706 | ) | (23,223 | ) | -- | |||||||
Accounts
payable
|
510,141 | (108,816 | ) | 118,130 | ||||||||
Accrued
and other liabilities
|
91,004 | (53,789 | ) | 263,895 | ||||||||
Accrued
payroll
|
(52,140 | ) | 23,401 | 14,387 | ||||||||
Accrued
vacation
|
8,042 | 39,399 | 15,498 | |||||||||
Insurance
premium payable
|
- | (161,948 | ) | 161,948 | ||||||||
Customer
deposits
|
(35,909 | ) | (55,121 | ) | - | |||||||
Deferred
revenue
|
(31,848 | ) | (117,600 | ) | 32,400 | |||||||
Net
cash provided by operating activities
|
742,829 | 2,091,344 | 2,729,934 | |||||||||
Cash
flows from investing activities:
|
||||||||||||
Purchases
of property and equipment
|
(4,465,879 | ) | (881,401 | ) | (1,130,627 | ) | ||||||
Proceeds
from sale of property and equipment
|
10,573 | -- | -- | |||||||||
Increase
in purchased technology
|
(57,283 | ) | (516,356 | ) | (926,193 | ) | ||||||
Increase
in license rights
|
-- | (315,620 | ) | -- | ||||||||
Net
cash used in investing activities
|
(4,512,589 | ) | (1,713,377 | ) | (2,056,820 | ) | ||||||
Cash
flows from financing activities:
|
||||||||||||
Proceeds
from mortgage note payable to bank (net of $1,285,117 placed in
escrow)
|
2,714,883 | |||||||||||
Proceeds
from sales of common stock
|
223,025 | 253,900 | 1,332,840 | |||||||||
Repayments
of long-term debt
|
(50,000 | ) | (50,000 | ) | (348,328 | ) | ||||||
Net
cash provided by financing activities
|
2,887,908 | 203,900 | 984,512 | |||||||||
Effect
of exchange rate changes on cash and cash equivalents
|
(88,464 | ) | - | - | ||||||||
Net
change in cash and cash equivalents
|
(970,316 | ) | 581,867 | 1,657,626 | ||||||||
Cash
and cash equivalents at beginning of year
|
3,534,759 | 2,952,892 | 1,295,266 | |||||||||
Cash
and cash equivalents at end of year
|
$ | 2,564,443 | $ | 3,534,759 | $ | 2,952,892 | ||||||
Cash
paid for:
|
||||||||||||
Interest
|
$ | 58,463 | $ | 2,471 | $ | 16,156 | ||||||
Income
taxes
|
$ | 136,859 | $ | 73,504 | $ | 32,557 | ||||||
The
accompanying notes are an integral part of the consolidated financial
statements.
|
Statement
of operations
|
Year
Ended December 31, 2007
|
|||||||||||
As
Reported
|
Adjustment
|
Revised
|
||||||||||
Benefit
(provision) for income taxes
|
$ | 149 | $ | (155 | ) | $ | (6 | ) | ||||
Net
income
|
$ | 2,401 | $ | (155 | ) | $ | 2,246 | |||||
Earnings
per share - basic
|
$ | 0.16 | $ | ( 0.1 | ) | $ | 0.15 | |||||
Earnings
per share - diluted
|
$ | 0.14 | $ | ( 0.1 | ) | $ | 0.13 | |||||
Balance
sheet
|
As
of December 31, 2007
|
|||||||||||
As
Reported
|
Adjustment
|
Revised
|
||||||||||
Deferred
income tax assets
|
$ | 603 | $ | 245 | $ | 848 | ||||||
Total
assets
|
$ | 18,821 | $ | 245 | $ | 19,066 | ||||||
Income
tax liabilities
|
$ | 8 | $ | 400 | $ | 408 | ||||||
Total
liabilities
|
$ | 2,029 | $ | 400 | $ | 2.429 | ||||||
Total
liabilities and stockholders’ equity
|
$ | 18,821 | $ | 245 | $ | 19,066 |
2008
|
2007
|
|||||||
Raw
materials (net of reserves)
|
$ | 3,326,378 | $ | 2,447,090 | ||||
Work
in process
|
1,621,032 | 1,230,172 | ||||||
Finished
goods
|
891,054 | 844,730 | ||||||
Total
|
$ | 5,838,464 | $ | 4,521,992 |
|
·
|
Sales
to customers are evidenced by firm purchase orders. Title and the risks
and rewards of ownership are transferred to the customer when the product
is shipped. Payment by the customer is due under fixed payment
terms.
|
|
·
|
Product
returns are only accepted at our discretion and in accordance with our
“Returned Goods Policy”. Historically, the level of product returns has
not been significant. We accrue for sales returns, rebates and allowances
based upon an analysis of historical customer returns and credits,
rebates, discounts and current market
conditions.
|
|
·
|
Our
terms of sale to customers generally do not include any obligations to
perform future services. Limited warranties are generally provided for
sales and provisions for warranty are provided at the time of product sale
based upon an analysis of historical
data.
|
|
·
|
Amounts
billed to customers related to shipping and handling are included in net
sales. Shipping and handling costs included in cost of sales were
$118,891, $124,424 and $125,927 in 2008, 2007 and 2006,
respectively.
|
2008
|
2007
|
|||||||
Trade
accounts receivable
|
$ | 3,000,360 | $ | 2,534,185 | ||||
Less:
allowance for doubtful accounts
|
(8,645 | ) | (8,734 | ) | ||||
Trade
accounts receivable, net
|
$ | 2,991,715 | $ | 2,525,451 |
2008
|
2007
|
|||||||
Equipment
|
$ | 2,992,694 | $ | 2,339,106 | ||||
Building
|
4,248,348 | 791,618 | ||||||
Furniture
and fixtures
|
1,601,671 | 1,461,716 | ||||||
Leasehold
improvements
|
1,035,261 | 990,051 | ||||||
Molds
|
964,813 | 856,308 | ||||||
10,842,787 | 6,438,799 | |||||||
Less:
accumulated depreciation and amortization
|
(3,716,844 | ) | (3,017,344 | ) | ||||
Net
property, plant, and equipment
|
$ | 7,125,943 | $ | 3,421,455 |
2008
|
2007
|
|||||||
Trade
name (life indefinite)
|
$ | 1,509,662 | $ | 1,509,662 | ||||
Purchased
technology (9-17 year lives)
|
$ | 3,940,618 | $ | 2,438,175 | ||||
Less
accumulated amortization
|
(460,866 | ) | (335,331 | ) | ||||
Net
carrying amount
|
$ | 3,479,752 | $ | 2,102,844 | ||||
License
rights (5 year life)
|
$ | 315,619 | $ | 315,619 | ||||
Less
accumulated amortization
|
(99,946 | ) | (36,822 | ) | ||||
Net
carrying amount
|
$ | 215,673 | $ | 278,797 |
Current
deferred income tax assets:
|
2008
|
2007
|
||||||
Allowance
for doubtful accounts
|
$ | 3,245 | $ | 3,278 | ||||
Inventory
reserves
|
203,030 | 236,669 | ||||||
Net
operating loss carry forwards (“NOLS”)
|
- | 226,677 | ||||||
R
& D credit carry forwards
|
- | 371,300 | ||||||
Charitable
contribution carry forwards
|
10,610 | 10,299 | ||||||
Current
deferred income tax asset – net
|
$ | 216,885 | $ | 848,223 | ||||
Non-current
deferred income tax assets (liabilities):
|
||||||||
Accumulated
amortization - intangibles
|
$ | (234,933 | ) | $ | (220,146 | ) | ||
Accumulated
depreciation and amortization - property and equipment
|
(295,930 | ) | (188,042 | ) | ||||
Non-current
deferred income tax asset, liability, net
|
$ | (530,863 | ) | $ | (408,188 | ) |
2008
|
2007
|
2006
|
||||||||||
Tax
at statutory rates, net of state income taxes
|
34 | % | 34 | % | 34.0 | % | ||||||
Research
and development credits
|
(5.75 | %) | ||||||||||
State
income taxes, net of U.S. federal benefit
|
5.75 | % | 5.75 | % | 5.75 | % | ||||||
Tax
benefit of loss carry forward
|
(39.45 | %) | (37.75 | %) | ||||||||
Effective
tax rate
|
34 | % | 0.3 | % | 2 | % |
|
·
|
Cash
of $350,000; $150,000 of which was paid at inception. The remaining
$200,000 is being paid in $50,000 installments in October 2007, October
2008, October 2008 and October
2010.
|
|
·
|
200,000
shares of our restricted common stock; 80,000 of which vested immediately,
40,000 of which vested in October 2006, 40,000 of which vested in October
2007 and 40,000 of which vested in October
2008
|
|
·
|
80,000
shares upon the receipt of certain FDA marketing
clearances.
|
|
·
|
17,500
shares upon the Company attaining $1,000,000 in net sales of the “Seal and
Cut Product”
|
|
·
|
17,500
shares upon the Company attaining $3,000,000 in net sales of the “Seal and
Cut Product”
|
|
·
|
17,500
shares upon the Company attaining $1,000,000 in net sales of the
“Modullion Product”
|
|
·
|
17,500
shares upon the Company attaining $3,000,000 in net sales of the
“Modullion Product”
|
|
·
|
Tip-On-Tube
a disposable tip technology complementary to Bovie’s previously acquired
and announced Modular Ergonomic Grip (MEG)
forceps.
|
|
·
|
A
new surgical handle platform called the Polarian that allows a plurality
of electrical and mechanical modes to be used in conjunction with reusable
and disposable mono and bipolar cartridges and is applicable to most
endoscopic surgeries.
|
|
·
|
Seal-N-Cut
a family of endoscopic instruments used in monopolar and bipolar vessel
and tissue cutting and sealing.
|
2009
|
$
|
282,000
|
||
2010
|
278,100
|
|||
2011
|
251,900
|
|||
2012
|
246,800
|
|||
2013
|
223,100
|
|||
Thereafter
|
11,000
|
|||
Total
|
$
|
1,292,900
|
2009
|
$ | 1,038,200 | ||
2010
|
813,600 | |||
2011
|
63,600 | |||
Total
|
$ | 1,915,400 |
|
·
|
Clauses
that allow for continuous automatic extensions of one year after January
31, 2010 unless timely written notice terminating the contract is provided
to such officers (as defined in the
agreements).
|
|
·
|
Clauses
which require the Company to make lump sum payments to such officers equal
to three times their salary and bonus in effect at the time of any change
in control and/or breach of the agreements by the
Company. The 2009 base salaries for these officers are expected
to approximate $700,000, and such amounts increase by 7.5% per
year.
|
2008
|
2007
|
2006
|
||||||||||
Revenues
included in sales revenue
|
$ | - | $ | 126,098 | $ | 463,926 | ||||||
Cost
of OEM research and development contracts included in costs of
sales
|
$ | - | $ | 45,860 | $ | 452,585 |
Number
Of
Options
|
Weighted
Average Exercise
Price |
|||||||
Outstanding
at December 31, 2006
|
3,278,700 | $ | 1.52 | |||||
Granted
|
137,500 | $ | 8.27 | |||||
Exercised
|
(225,300 | ) | $ | 1.38 | ||||
Canceled
|
(42,500 | ) | $ | 1.01 | ||||
Outstanding
at December 31, 2007
|
3,148,400 | $ | 1.83 | |||||
Granted
|
207,500 | $ | 7.29 | |||||
Exercised
|
(1,488,750 | ) | $ | 0.81 | ||||
Canceled
|
- | - | ||||||
Outstanding
at December 31, 2008
|
1,867,150 | $ | 3.25 | |||||
Exercisable
at December 31, 2008
|
1,572,793 | $ | 2.18 |
Exercise
Prices
|
Number
Outstanding
|
Weighted
Average Remaining
ContractualLife
(in years)
|
Exercise
Prices
|
Options
Exercisable
|
Exercise
Prices
|
|||||||||||||
0.50 | 190,700 |
3
years
|
.50 | 190,700 | .50 | |||||||||||||
0.70 | 88,000 |
5
years
|
.70 | 88,000 | .70 | |||||||||||||
0.75 | 71,500 |
3 –
5 years
|
.75 | 71,500 | .75 | |||||||||||||
1.30 | 35,000 |
5
years
|
1.30 | 35,000 | 1.30 | |||||||||||||
2.13 | 175,000 |
6
years
|
2.13 | 175,000 | 2.13 | |||||||||||||
2.25 | 360,000 |
7
years
|
2.25 | 353,000 | 2.25 | |||||||||||||
2.41 | 40,000 |
6
years
|
2.41 | 40,000 | 2.41 | |||||||||||||
2.93 | 35,000 |
7
years
|
2.93 | 35,000 | 2.93 | |||||||||||||
2.95 | 27,500 |
6
years
|
2.95 | 27,500 | 2.95 | |||||||||||||
3.25 | 379,450 |
5
years
|
3.25 | 379,450 | 3.25 | |||||||||||||
3.26 | 100,000 |
7
years
|
3.26 | 100,000 | 3.26 | |||||||||||||
6.93 | 20,000 |
8
years
|
6.93 | 8,000 | 6.93 | |||||||||||||
7.10 | 30,000 |
9
years
|
7.10 | 4,286 | 7.10 | |||||||||||||
7.18 | 50,000 |
10
years
|
7.18 | 50,000 | 7.18 | |||||||||||||
7.33 | 157,500 |
10
years
|
7.33 | - | 7.33 | |||||||||||||
7.68 | 7,500 |
9
years
|
7.68 | 1,071 | 7.68 | |||||||||||||
8.66 | 100,000 |
9
years
|
8.66 | 14,286 | 8.66 | |||||||||||||
1,867,150 | 1,572,793 |
Number
Of
Options
|
Weighted
Average
Exercise
Prices
|
|||||||
Nonvested
at January 1, 2008
|
190,500 | 2.86 | ||||||
Granted
in 2008
|
207,500 | 7.29 | ||||||
Vested
in 2008
|
(103,643 | ) | 6.04 | |||||
Forfeited
in 2008
|
- | - | ||||||
Nonvested
at December 31, 2008
|
294,357 | 7.57 |
2008
|
2007
|
2006
|
||||||||||
Cost
of sales
|
$ | 16,294 | $ | 36,185 | $ | 3,408 | ||||||
Research
and development
|
115,344 | 10,072 | 25,125 | |||||||||
Salaries
and related costs
|
53,060 | 25,832 | 12,564 | |||||||||
Total
|
$ | 184,698 | $ | 72,089 | $ | 41,097 |
Bovie
Medical Corp
|
Bovie
Canada
|
Bovie
Medical Corp
|
Bovie
Canada
|
Bovie
Medical Corp
|
Bovie
Canada
|
|||||||||||||||||||
2008
|
2008
|
2007
|
2007
|
2006
|
2006
(1)
|
|||||||||||||||||||
Sales,
net
|
$ | 27,441 | $ | 656 | $ | 28,432 | $ | 347 | $ | 26,571 | $ | 105 | ||||||||||||
Gross
profit
|
11,781 | (68 | ) | 11,569 | (253 | ) | 10,607 | (6 | ) | |||||||||||||||
Operating
expenses
|
9,555 | 1,003 | 8,716 | 488 | 7,925 | 52 | ||||||||||||||||||
Net
income (loss)
|
$ | 2,767 | $ | (935 | ) | $ | 3,141 | $ | (741 | ) | $ | 2,741 | $ | (58 | ) |
First
|
Second
|
Third
|
Fourth
|
|||||||||||||
Year
ended December 31, 2008
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
||||||||||||
Total
revenue
|
$ | 6,678 | $ | 6,985 | $ | 7,296 | $ | 7,138 | ||||||||
Gross
profit
|
2,586 | 2,900 | 3,233 | 3,126 | ||||||||||||
Net
income
|
190 | 1,205 | 366 | 71 | ||||||||||||
Diluted
earnings per share (1)
|
.01 | .08 | .02 | .00 | ||||||||||||
Year
ended December 31, 2007
|
||||||||||||||||
Total
revenue
|
$ | 6,705 | $ | 7,439 | $ | 7,460 | $ | 7,177 | ||||||||
Gross
profit
|
2,483 | 3,038 | 3,116 | 2,679 | ||||||||||||
Net
income
|
580 | 1,068 | 472 | 281 | ||||||||||||
Diluted
earnings per share (1)
|
.03 | .06 | .03 | .02 | ||||||||||||
Year
ended December 31, 2006
|
||||||||||||||||
Total
revenue
|
$ | 6,011 | $ | 6,741 | $ | 6,999 | $ | 6,925 | ||||||||
Gross
profit
|
2,306 | 2,892 | 2,881 | 2,522 | ||||||||||||
Net
income
|
690 | 713 | 857 | 423 | ||||||||||||
Diluted
earnings per share (1)
|
.04 | .04 | .05 | .02 |
(1)
|
Quarterly
income (loss) per share may not equal the annual reported
amounts.
|
Certification pursuant to Section 302 of
Sarbanes-Oxley Act of 2002.
|
|
Certification pursuant to Section 302 of
Sarbanes-Oxley Act of 2002.
|
|
Certification pursuant to Section 906 of
Sarbanes-Oxley Act of 2002.
|
|
Certification pursuant to Section 906 of
Sarbanes-Oxley Act of
2002.
|