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Page 1: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

June2018

Page 2: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

SafeHarborStatement

CertainmattersdiscussedinthispresentationandoralstatementsmadefromtimetotimebyrepresentativesoftheCompanymayconstituteforward-lookingstatementswithinthemeaningofthePrivateSecuritiesLitigationReformActof1995andtheFederalsecuritieslaws. AlthoughtheCompanybelievesthattheexpectationsreflectedinsuchforward-lookingstatementsarebaseduponreasonableassumptions,itcangivenoassurancethatitsexpectationswillbeachieved.

Forward-lookinginformationissubjecttocertainrisks,trendsanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthoseprojected. ManyofthesefactorsarebeyondtheCompany’sabilitytocontrolorpredict. ImportantfactorsthatmaycauseactualresultstodiffermateriallyandthatcouldimpacttheCompanyandthestatementscontainedinthispresentationcanbefoundintheCompany’sfilingswiththeSecuritiesandExchangeCommissionincludingourmostrecentreportsonForm10-KandForm10-Q.CopiesofthesefilingsareavailableonlinefromtheSEC. Forforward-lookingstatementsinthispresentation,theCompanyclaimstheprotectionofthesafeharborforforward-lookingstatementscontainedinthePrivateSecuritiesLitigationReformActof1995. TheCompanyassumesnoobligationtoupdateorsupplementanyforward-lookingstatementsasaresultofnewinformation,futureevents,orotherwise.

Page 3: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

InvestmentHighlights

3

“Core”and“OEM”operatingsegments:establishedcommercialbusinesseswithstrongprofitabilityandcashflow

AdvancedEnergyoperatingsegment:BovieMedical’s‘growthengine’

J-Plasma®:transformationaltechnology,supportedbystrongandgrowingIPportfolio

AdvancedEnergysegmentgrowthfueledbycommercializationofJ-Plasma®technologyinthecosmeticsurgerymarketundertheRenuvionTM CosmeticTechnologybrand

Experiencedmanagementteam;enhancedwithrecenthires

Solidbalancesheetconditionsupportedbyimprovinggrowthandprofitabilityprofile

Long-termAdvancedEnergygrowthprofileenhancedbyclinical,regulatory&marketinginitiatives

Page 4: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

ExperiencedManagementTeamMgmt.TeamMember JoinedBovie RepresentativePreviousExperience

CharlieGoodwinChiefExecutiveOfficer December2017

JayEwersChiefFinancialOfficer June2014

ToddHornsbyVicePresident&General

ManagerofAdvancedEnergyAugust2014

4

RobSaronPresidentandDirector January1978

MosheCitronowiczSeniorVicePresident October1993

YearsofRelevantExperience

25

35

18

36

31 KCRTechnologies SequentialInformationSystems

Dr.TopazKirlewDirectorofRegulatoryAffairs February2018 30

Experiencedmanagementteam;enhancedwithrecenthires

ScottSandersDirectorofClinicalEducation

&MarketDevelopmentMarch2018 37

Page 5: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

5

CompanySnapshot

Core

Energy-based medical device company specializing in developing, manufacturingand marketing a range of electrosurgical products and technologies, as well asrelated medical products used in doctor’s offices, surgery centers and hospitalsworldwide.

Founded: 1978

Locations: • Clearwater,FL• Sofia,Bulgaria

Full-Time Employees: 211**

CommercialProfile: >300 products soldin>150countries

LTMSales(3/31/18): $40.4M

OperatingSegments:• Core• OEM• AdvancedEnergy

Yearof IPO: 1982

NYSEMKT: BVX

MarketCap: ~$129M*

Avg.DailyVol(LTM): ~107,000*

*Shareprice:$3.91asofmarketcloseon5/29/2018;Sharesoutstanding:32.9Masof5/9/2018**Asof12/31/2017LTM=“LastTwelveMonths”

Page 6: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

99.3% 95.6%90.4%

80.4%

FY'14 FY'15 FY'16 FY'17

OEMCore

OperatingSegments:“Core”&“OEM”• Legacybusinessesfocusedonthedesignand

manufactureofelectrosurgicaltechnologiesandaccessories:

- “Core”productsmarketedandsoldthroughdistributorsworldwideto>6,000hospitals

- “OEM”productsmanufacturedinresponsetoinbounddemandfromlargemedicaldevicecompanies

Core/OEMFinancialProfile:• Modestannualrevenuegrowthovermulti-yr.period

- Core/OEM’14-’17CAGRof~4%;volatilityinannualgrowthratesdrivenbyfluctuationsinOEMdemand

- Core/OEMshareoftotalcompanyrevenuedecreasingduetostrongrevenuegrowthfromAdvancedEnergysegmentinrecentyears

• Strongprofitabilityandcashflowprofile

6

Establishedcommercialbusinesseswithstrongprofitabilityandcashflow

$27.5M $28.2M$33.1M $31.2M

FY'14 FY'15 FY'16 FY'17

Core/OEM:AnnualRevenueOEMCore

Core/OEM:PercentofAnnualCompanyRevenue

Page 7: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

$0.2M$1.3M

$3.5M

$7.6M

$10.9M

FY'14 FY'15 FY'16 FY'17 FY'18GuidanceMidPt.

• Advancedelectrosurgicalandplasmatechnology(generatorsandhandpieces)

• PrimarydriverofBovie’slong-termrevenuegrowth

• CommercializedproductsmarketedintheU.S.viahybridsellingorganizationandinternationallyviadistributors

- U.S.hybriddistributionnetworkasof3/31/18:- 19directreps- 14independentagents

OperatingSegment:“AdvancedEnergy”

7

Adv.Energy:20%

PercentofFY’17Revenue

BovieMedical’s‘growthengine’

AdvancedEnergy:AnnualRevenue

Page 8: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

AdvancedEnergy:J-Plasma®Technology

• Revolutionarytechnologyionizesheliumtocreatestreamofplasmaforcutting,coagulatingandablatingsofttissue

• Superiorprecision,withlimitedthermalspread

- Stable,thin,focusedstreamofionizedheliumgas

- Widerangeofcontrol

• Allowsphysicianstosafelyperformproceduresonorarounddelicatestructures

8

UniqueRetractableBlade

Transformationaltechnology

Precise,Tissue-SparingEnergy

Page 9: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

J-PlasmaTechnology:LimitedThermalDamagevs.Energy-basedSurgicalTools*

• Prospectivestudycomparedlevelsofunintendedthermaldamagetoperitonealtissue(membraneliningtheabdominalcavity)amongotherenergy-basedsurgicaltoolsvs.J-Plasma

• Redareasrepresentthedepthofthermalorenergydamageeachtoolleftbelowthetissuesurface;blueareasrepresentunaffectedtissue

• J-Plasmademonstratedfarlowestamountofcollateralthermalinjurytohealthytissuesurroundingtheoperativesite

*Reference:PedrosoJ,GutierrezM,VolkerW.J-Plasma,monopolarpencil,argonbeamandCO2laserelectrosurgery:comparativeevaluationofthermalspreadinaporcinetissuemodel(whitepaper).BovieMedicalCorporation.June2014 9

Page 10: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

J-PlasmaTechnology:DemonstrationVideo

10

Ifyouarehavingtroubleviewingthevideoabove,chooseanotheroption.ToviewthevideofromYouTube,visit:https://youtu.be/UsnKHLvrmnY.AFlashorQuickTimePlayerisrequiredtoview:http://www.boviemedical.com/wp-content/uploads/2018/06/j-plasma_demonstration_video_nr2.mp4.TodownloadaWindowsMediaVideoversion,visit:https://cloud.boviemedical.com/index.php/s/4E5Uwb0hcscxNPp.

Page 11: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

J-PlasmaTechnology:ClinicianFeedback

11

“J-PlasmadeliversthemostprecisionIhaveeverseeninanenergy-baseddevice.Thisallowsthephysiciantotreatsmallandlargeareaswithease.TheamountofenergycanbetailoredtogetoutcomesIhavenotyetseenwithanycompetitivelaserdevice.”

-JasonEmer,M.D.,FAAD,FAACSDermatologicSurgeon

“J-PlasmaisatrulyinnovativetechnologythatwillbeinvaluabletoFacialandPlasticSurgeonsandDermatologists.Thethermalcharacteristicsofthisenergy-baseddeviceareunlikeanydevicescurrentlyavailable.”

-RichardGentile,M.D.,MBAPlasticSurgeon

“Thereisanincredibleamountofcontrolintermsofdepth-of-penetration;becauseit’snotdeliveringaburningenergy”“It’sachancetobeartistic,becauseyouareusingadevicemorelikeapaintbrushthananatombomb.”

-JosephB.DeLozier III,MD,FACSPlasticSurgeon

“J-Plasmaisfast,easytouseandIamhappywiththeresults.ThisisoneofthefewdevicesIhavepurchasedthatwon'tspendanytimeinthecloset.”

-DianeDuncan,M.D.PlasticSurgeon

“J-Plasmaisaninnovativeenergy-baseddevicewithanimpactontissueunlikeanydevicecurrentlyavailable.J-PlasmawillcreateafundamentalshiftinthewayproceduresareperformedbyallPlasticSurgeons,CosmeticSurgeonsandDermatologists.”

-JackZamora,M.D.OculoplasticSurgeon

Page 12: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

AdvancedEnergy:CommercialFocus

U.S.commercialfocus" cosmeticsurgerymarket:

• U.S.cosmeticsurgerymarketcomprisedof~15,000*plasticsurgeons,cosmeticsurgeons&dermatologists

• FavorableU.S.marketcharacteristics:Proceduresperformedinoutpatientfacilitiesandpaidforoutofpocket

• StronginitialU.S.commercialtraction:hybridsalesforcefocusedonearlyadopters

- Initialproceduralareaoffocus:subdermalcoagulationfollowingliposuction(~200Kannualliposuctionproceduresinplasticsurgeryalone**)

Internationalcommercialfocus" soldtodistributors,whomarketandsellintothehospitalsurgicalsuite

12

AdvancedEnergysegmentgrowthfueledbycommercializationofJ-Plasmatechnologyinthecosmeticsurgerymarket

*American Society of Plastic Surgeons (ASPS) database 2016**American Society for Aesthetic Plastic Surgery (ASAPS) database 2016

Page 13: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

DevelopingExpertiseintheCosmeticSurgeryMarket

1. Enhancingphysicianandpracticesupportforcosmeticsurgerycustomers

- Currentfocus: newchannel-dedicatedbrand-

- Recentmilestone: InitiatedRenuvion™CosmeticTechnologybrandlaunchonMarch29th

2. ExpandingclinicalsupportforJ-Plasma/Renuvionincosmeticsurgeryprocedures

- Currentfocus: IDEprospective,multicenter,singlearmclinicalstudyevaluatingthe_____________useofJ-Plasma/Renuvionfordermalskinresurfacing

- Recentmilestone: completedstudyenrollmentonMay14th

3. Pursuingnew,specificclinicalindicationsinthecosmeticsurgerymarket:

- Currentfocus: FDA510(k)clearancewithanindicationforuseindermalskinresurfacingprocedures

- Upcomingmilestone: expecttosubmitforFDA510(k)clearancebyendofFY‘18

13

Long-termAdvancedEnergygrowthprofileenhancedbyclinical,regulatory&marketinginitiativesincosmeticsurgery

Focusedonbuildingsupporttofacilitatebroad-basedadoptionby:

Page 14: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

IntroducingRenuvion™CosmeticTechnology

• Anewbranddedicatedtothecosmeticsurgerymarket:

- - BovieMedical’sJ-PlasmatechnologyisnowbeingmarketedandsoldinthecosmeticsurgerymarketundertheRenuvionbrandname

• Createdforphysiciansinthecosmeticsurgerymarket

- Physicianfeedbackfromearly-adoptersofJ-Plasmatechnologyinstrumentalincreatingabrand/campaignthatwillresonatewithcosmeticsurgerycustomers

• Designedto:

- Enhancephysicianpractice-basedmarketing- LeveragetheincreasingawarenessofRenuvioninthe

cosmeticsurgerymarket

14

Renuvion:enhancingphysicianandpracticesupportforcosmeticsurgerycustomers

WhatisRenuvionCosmeticTechnology?

Page 15: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

• EstablishedIPportfolio;pendingapprovalsfocusedonAdvancedEnergysegment:

IP&NewProductDevelopment

15

GrowingIPportfolioandrecentprogressinnewproductdevelopment

PatentsIssued PatentsPending

UnitedStates 41 13

International 23 9

Total 64 22

AdvancedEnergyproductscomprise:51%ofissuedpatentsand

100%ofpendingpatents

Progress(2010– 2013):

- 4510(k)clearances- 2CEMarkapprovals- 4Productscommercialized

ProgresssinceJanuary,2014:

- 10510(k)clearances- 22CEMarkapprovals- 10Productscommercialized

• Productdevelopmenteffortsreinvigoratedin2014:

Page 16: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

16

ManufacturingFootprint

Clearwater, FL Sofia, Bulgaria China

Size: 60,000sq.ft. 16,000sq. ft. • 70,000sq.ft.

Owned/Contracted:

Owned Owned Contracted

Capabilities:

• Assembly• Integration• FinalTesting• Packaging• SterilizationManagement

• Manufacturing• ComplexComponent

Assembly• InitialTesting

• ComponentManufacturing• Sub-Assemblies• Finished MedicalDevices

(Electrodes)

ImprovingmanufacturingcapacityandefficienciestoaccommodateanticipatedstrongdemandforJ-Plasma/Renuvion

Page 17: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

17

HistoricalFinancialSummary($in000's)

2017 2018 2016 2017

Revenue $8,389 $9,916 $36,627 $38,883RevenueGrowth(Y/Y) 7.9% 18.2% 24.1% 6.2%

CostofGoodsSold 4,163 4,926 18,712 19,122

GrossProfit $4,226 $4,990 $17,915 $19,761GrossMargin 50.4% 50.3% 48.9% 50.8%

OperatingExpenses 5,963 5,854 21,707 25,026

LossfromOperations ($1,737) ($864) ($3,792) ($5,265)

AdjustedEBITDA ($1,400) ($293) ($2,249) ($3,698)

AdjustedEBITDAEx.Non-recurringitems* ($1,400) ($293) ($2,249) ($2,174)

CashonhandasofMarch31,2018 $9,361

Q1 FY

*Fiscal year 2017 period included approximately $1.5 million of non-recurring severance and expenses related toformer members of the Company’s executive management team and related closure of the corporate office inPurchase, New York.

Page 18: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

18

FY’18GuidanceSummary

• FormalFinancialGuidance:

• TotalGAAPrevenueintherangeof$41.0millionto$42.5million,comparedto$38.9millioninfiscalyear2017.

• AdjustedEBITDAinarangeof$1.0millionto$1.5million,comparedtoalossof$2.2millioninfiscalyear2017.

• FY’18totalcompanyrevenueguidanceassumes:• TotalrevenuegrowthdrivenbyAdvancedEnergysegmentsales,which

areexpectedtogrow40%- 45%y/yin2018

Improvingprofitability;growthdrivenbystrongcommercialtractioninAdvancedEnergysegment

Page 19: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

Appendix

Page 20: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

BalanceSheet

20

(Unaudited)(Inthousands)

March31,2018

December31,2017

ASSETS Currentassets: Cashandcashequivalents $ 8,701 $ 9,949

Restrictedcash 660 719

Tradeaccountsreceivable,netofallowanceof$147and$204 5,143 4,857Inventories,net 6,709 6,526

Prepaidexpensesandothercurrentassets 522 496

Totalcurrentassets 21,735 22,547Propertyandequipment,net 6,338 6,408

Brandnameandtrademark 1,510 1,510

Purchasedtechnologyandlicenserights,net 189 179Goodwill 185 185

Deposits 91 92

Otherassets 64 67

Totalassets $ 30,112 $ 30,988

Page 21: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

BalanceSheet

21

(Unaudited)(Inthousands)

March31,2018

December31,2017

LIABILITIESANDSTOCKHOLDERS'EQUITY Currentliabilities: Accountspayable $ 2,097 $ 1,583

Accruedseveranceandrelated 948 1,242

Accruedpayroll 198 447Currentportionofmortgagenotepayable 239 239

Accruedandotherliabilities 2,212 2,462

Totalcurrentliabilities 5,694 5,973Mortgagenotepayable,netofcurrentportion 2,395 2,455

Notepayable 140 140

Deferredtaxliability 368 368Derivativeliabilities 46 20

Totalliabilities 8,643 8,956STOCKHOLDERS'EQUITY Commonstock,$0.001parvalue;75,000,000sharesauthorized;33,021,170issuedand32,878,091outstandingasofMarch31,2018andDecember31,2017 33

33

Additionalpaid-incapital 50,867 50,495Accumulateddeficit (29,431) (28,496)Totalstockholders'equity 21,469 22,032

Totalliabilitiesandstockholders'equity $ 30,112 $ 30,988

Page 22: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

IncomeStatement

22

(Unaudited)(Inthousands,exceptpersharedata)

ThreeMonthsEndedMarch31,

2018 2017Sales $ 9,916 $ 8,389

Costofsales 4,926 4,163

Grossprofit 4,990 4,226

Othercostsandexpenses: Researchanddevelopment 562 709

Professionalservices 506 390

Salariesandrelatedcosts 2,116 2,460

Selling,generalandadministrative 2,670 2,404

Totalothercostsandexpenses 5,854 5,963

Lossfromoperations (864) (1,737)Interestexpense,net (34) (31)Changeinfairvalueofderivativeliabilities (26) 88

Totalother(loss)income,net (60) 57

Lossbeforeincometaxes (924) (1,680)Incometaxexpense 11 5

Netloss $ (935) $ (1,685) Losspershare Basic $ (0.03) $ (0.05)Diluted $ (0.03) $ (0.06)

Weightedaveragenumberofsharesoutstanding-basic 32,878 30,860

Weightedaveragenumberofsharesoutstanding-dilutive 32,878 30,887

Page 23: BVX Investor Presentation Draft 1 6-4-18 nr · • Adjusted EBITDA in a range of $1.0 million to $1.5 million, compared to a loss of $2.2 million in fiscal year 2017. • FY’18

ReconciliationBetweenGAAPandNon-GAAP

23

(Unaudited)(Inthousands)

ThreeMonthsEnded

March31, 2018 2017NetlossGAAPBasis $ (935) $ (1,685)Interestexpense,net 34 31

Incometaxexpense 11 5

Depreciationandamortization 199 178

Stockbasedcompensation 372 159

Changeinfairvalueofderivativeliabilities 26 (88)AdjustedEBITDA (293) (1,400)