Fuse Medical (FZMD) 8-K Palm Springs Partners,llcd/b/a Maxim Surgical

Exhibit 99.1

FAIRNESS OPINION

RELATEDTOTHE ACQUISITIONOF

PALM SPRINGS PARTNERS,LLCD/B/A MAXIM SURGICAL

BY FUSE MEDICAL, INC.

JULY 25, 2018

Prepared for:

Board of Directors

Fuse Medical, Inc.

July 25, 2018

Board of Directors

Fuse Medical, Inc.

1565 North Central Expressway

Suite 220

Richardson, TX 75080

Dear Members of the Board:

ValueScope, Inc. has been engaged to advise Fuse Medical, Inc. (“Fuse”) and its Board of Directors as to the fairness of the consideration to be paid by Fuse for the purchase of all of the stock of Palm Springs Partners, LLC d/b/a Maxim Surgical (“Maxim”) as outlined in the Securities Purchase Agreement (the “Purchase Agreement” of the “SPA”) dated July 27, 2018 (the “Closing Date”).

Based on a review of the Purchase Agreement, it is our understanding that the total possible consideration for the transaction is equal to the Closing Consideration of $3,400,000 plus or minus the net of the closing working capital and $100,000. The total consideration is to be paid in shares of Fuse common stock with a price equal to the30-day VWAP as of three days prior to closing.

Our opinion is based on a review of publicly available business and financial information relating to Fuse. We have also reviewed internal financial and operating information related to Maxim. This opinion is based on financial analyses prepared in accordance with generally accepted valuation standards. These procedures included substantive valuation tests that we considered necessary and appropriate under the circumstances.    

We are not acting as the financial advisor to Maxim or to Fuse or its shareholders in connection with this acquisition. It is understood that this letter is for the use of the Board of Directors and shareholders of Fuse and may be quoted, referred to, in whole or in part, in Fuse’s proxy statement. We understand that this letter may be filed with the Securities and Exchange Commission (SEC) by Fuse as part of Fuse’s Information Statement. This letter is not to be used with any other document in connection with the proposed merger, without the express written consent of ValueScope, Inc.

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Our analyses included, but were not necessarily limited to, the following procedures:

• A review of the Securities Purchase Agreement dated July 27, 2018 to purchase 100% of the outstanding equity of Palm Springs Partners, LLC d/b/a Maxim Surgical by Fuse Medical, Inc.

• A review of Fuse’s publicly available financial statements for the fiscal years ended December 31, 2016 through December 31, 2017 and the trailing twelve-month period ended March 31, 2018.

• A review of projected income statements for Maxim for the period 2018 through 2022 provided by management (the “Management”).

• A review of information relating to Maxim’s industry and similar companies.

• Discussions with Management regarding the historical and projected operating performance of Maxim.

• Discussions with Management regarding Maxim’s industry with respect to guideline companies and transactions.

• A review of publicly available historical and financial information related to Fuse.

• A review of Fuse’s recent trading activity on theOver-the-Counter Bulletin Board quotation service.

• A review of pricing data of comparable guideline companies and industry transactions existing as of the closest available date prior to the Closing Date.

• A review of the Fuse’s capital table.

We have not independently verified any of the foregoing information and have relied upon its completeness and accuracy in all material aspects. With respect to the financial forecasts, we have assumed that they have been reasonably prepared on a basis reflecting the best currently available estimates of Management as to the expected financial performance of Maxim.    

Based upon and subject to the foregoing, including the various assumptions and limitations as set forth herein, it is our opinion that the consideration to be paid by Fuse for the outstanding stock of Maxim as outlined in the Purchase Agreement isFAIR to the shareholders of Fuse from a financial point of view.

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Our value calculations are presented in the Summary Schedule and in the tables below.

Summary
Fair Value (FV) of Fuse Equity	$	36,400,000		Schedule E
Fuse Outstanding Shares(Pre-Transaction)		65,890,808
FV of Fuse Equity Per Share(Pre-Transaction)	$	0.5524		per share
Closing Consideration/Maxim Equity Value	$	3,400,000		Schedule J
Plus: Closing Net Working Capital		521,139
Less: Target Net Working Capital		(100,000	)
Total Maxim Purchase Price	$	3,821,139
Securities Purchase Agreement Fuse Share Price	$	0.7500		Schedule K.1
Shares Provided as Equity Payment		5,094,852
Maxim Equity Value	$	3,821,139
Fuse Equity Value	$	36,400,000
Post-Transaction Equity Value	$	40,221,139
Fuse Outstanding Shares (Post-Transaction)		70,985,660
Fully Diluted Fuse Equity Value Per Share (Post-Transaction)	$	0.5666		per share

Conclusion—Deal is FAIR to Fuse Medical, Inc. Shareholders

We are independent of Fuse and Maxim and have no current or prospective economic interest in Fuse’s shares that are the subject of this opinion. Our fee for this opinion was in no way influenced by our conclusion.

Respectfully submitted,

ValueScope, Inc.

/s/ Steven C. Hastings

Steven C. Hastings, CPA/ABV/CFF, CGMA, ASA, CVA

Principal

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APPENDIX A—FUSE OFFER

Purchase Price

Fuse Medical, Inc. (the “Buyer”) will purchase one hundred percent (100%) of the outstanding equity securities (the “Securities”) of Palm Springs Partners, LLC d/b/a Maxim Surgical from Mr. Amir David Tahernia and Reed Medical Industries, Inc. (the “Sellers”) in the amount of $3,400,000 plus the excess working capital above $100,000 to be paid in membership interests (“Membership Interests”) following the closing of the transaction (the “Transaction”).

Equity Component

The purchase price for the Securities of CPM (the “Purchase Price”) would be paid by issuance of Membership Interests valued at the30-day volume-weighted average price (VWAP) as of the three business days prior to the Closing Date.

The Purchase Price is to be paid as follows:

i. Within seven business days of the Closing Date, the Buyer shall issue to each Seller certificates representing each Seller’s pro rata share of the Purchase Price in the form of shares of common stock of Fuse (the “Issued Securities”), at par value $0.01, bearing restrictive legends, with an aggregate value equal to the calculated30-day VWAP as of three business days prior to the Closing Date.

ii. Each Seller may elect to forgo up to $100,000 of the Purchase Price, in the form of the Issued Securities, and instead receive at the Closing Date the right to receive aone-time cash payment of $100,000, payable within thirty days after the Closing Date by delivering written notice of such election to the Buyer at least three business days prior to the Closing Date.

Post-Closing Adjustment

The Purchase Price is subject to adjustment following the Closing Date as follows:

i. As soon as reasonably practicable, and in any event within sixty days after the Closing Date, Buyer shall deliver to the Sellers’ representative a written calculation of the Closing Net Working Capital, Closing Consideration, and the Purchase Price (the “Closing Date Calculation”), as determined by reference to the relevant provisions of the Purchase Agreement.

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ii. Following the receipt by the Sellers’ representative of the Closing Date Calculation, Buyer shall permit and cause the Sellers’ representative and its representatives to have reasonable access during normal business hours to the books, records, and other documents pertaining to or used in connection with preparation of the Closing Date Calculation and provide the Sellers’ representative with copies thereof (as reasonably requested by the Sellers’ representative).

iii. If the Sellers’ representative gives a timely Objection Notice as described in Section 1.4(b) of the Purchase Agreement, then Buyer and the Sellers’ representative will negotiate in good faith to resolve their disputes regarding the Closing Date Calculation. If Purchaser and the Sellers’ Representative are unable to resolve all disputes regarding the Closing Date Calculation on or prior to the 30th day after the delivery of the Objection Notice, then Buyer and the Sellers’ representative will retain Whitley Penn (Dallas, Texas, location) (the “Independent Dispute Arbitrator”), and shall instruct the Independent Dispute Arbitrator to resolve the dispute as soon as practicable, and in any event within thirty days, and Buyer and the Sellers’ representative and their respective agents shall cooperate with the Independent Dispute Arbitrator during its engagement.

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APPENDIX B—VALUATION ANALYSIS

Description of the Transaction

In the Securities Purchase Agreement (the “Purchase Agreement”) dated July 27, 2018, Fuse Medical, Inc. (“Fuse”) offered to acquire Palm Springs Partners, LLC d/b/a Maxim Surgical (“Maxim”) in exchange for a total consideration equal to $3,400,000 plus the excess working capital above $100,000 to be paid in membership interests (“Membership Interests”) following the closing of the transaction (the “Transaction”).

Maxim Surgical (“Maxim”)¹

Maxim Surgical is a Texas limited liability company in Richardson, Texas that was established in 2011. Maxim is a supplier of durable medical equipment and medical supplies. Maxim main product marketed on the company website is the MaxFuse-C, a cervical interbody fusion system. The MaxFuse-C has the following features: large graft space for adequate grafting material; neutral and6-degree lordotic options; multiple footprint options designed to maximize endplate contact and resist subsidence; superior and inferior tooth pattern to prevent implant migration; tantalum radiographic markers to provide visual assessment of implant placement andpost-op examination; and machined in the USA from Solvay Zeniva® PEEK.

Fuse Medical, Inc. (“Fuse”)²

Fuse Medical, Inc., together with its subsidiaries, distributes medical devices in the United States. It offers orthopedic implants, including internal and external fixation products; upper and lower extremity plating and total joint reconstruction implants; soft tissue fixation and augmentation for sports medicine procedures; full spinal implants for trauma, degenerative disc disease, and deformity indications; and osteo-biologics and regenerative tissue which include human allografts, substitute bone materials, tendons, and regenerative tissues and fluids. The company serves hospitals, medical facilities, andsub-distributors. Fuse is based in Richardson, Texas.

¹  Maxim business description taken from company website <http://www.maximsurgical.com/>

²  Fusebusiness description provided by Capital IQ

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Overview of the U.S. Economy

According to the third estimate released by the Bureau of Economic Analysis (BEA), the U.S. economy grew in the first quarter of 2018, with real gross domestic product (GDP) increasing at an annual rate of 2.0%, following a fourth quarter 2017 increase of 2.9%. The increase in real GDP in the first quarter reflected positive contributions from nonresidential fixed investment, PCE, exports, federal government spending, and state and local government spending that were partly offset by a negative contribution from residential fixed investment and private inventory investment.³

Forecasters surveyed by the Federal Reserve Bank of Philadelphia predicted, on average, a 3.0% annual real growth rate for the second and third quarters of 2018. The forecasters predicted, on average, that real GDP will grow 2.8% in 2018, 2.7% in 2019, 1.9% in 2020, and 2.0% in 2021. The forecasts for 2019 and 2021 are higher than previous estimates for the same periods.⁴

Employment

Nonfarm payroll employment, according to the Bureau of Labor Statistics (BLS), rose by 223,000 in May 2018. The unemployment rate in May 2018 was 3.8%. The BLS reported job gains in retail trade, health care, and construction.⁵

Forecasters surveyed by the Federal Reserve Bank of Philadelphia predicted, on average, that the unemployment rate will be 3.9% in 2018, 3.7% in 2019, 3.9% in 2020, and 4.0% in 2021.⁶

Inflation

According to the BLS, inflation, as measured by changes in the Consumer Price Index for All Urban Consumers(CPI-U), increased 0.2% in May 2018 on a seasonally adjusted basis. Over the previous 12 months, the all items index increased 2.8% before seasonal adjustment. The index for all items less food and energy rose 2.2% for the twelve-month period ending May 2018. The energy index rose 11.7% over the last year, while the food index increased 1.2%.⁷

³  U.S. Department of Commerce, Bureau of Economic Analysis,Gross Domestic Product: First Quarter2018 (Third Estimate), June 28, 2018

⁴  Federal Reserve Bank of Philadelphia,Second Quarter 2018 Survey of Professional Forecasters, May 11, 2018

⁵  United States Department of Labor, Bureau of Labor Statistics,The Employment Situation: May 2018, June 1, 2018

⁶  Federal Reserve Bank of Philadelphia,Second Quarter 2018 Survey of Professional Forecasters, May 11, 2018

⁷  United States Department of Labor, Bureau of Labor Statistics,Consumer Price Index: May 2018, June 12, 2018

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Forecasters surveyed by the Federal Reserve Bank of Philadelphia predicted, on average, inflation is expected to be 2.5% in 2018, 2.2% in 2019, and 2.3% in 2020. Over the next ten years, forecasters expect CPI inflation to average 2.25% annually.⁸

Interest Rates

The interest rate on the three-month Treasury bill increased from 1.01% as of June 30, 2017 to 1.89% as of June 30, 2018.⁹ The interest rate on theten-year Treasury note increased from 2.31% as of June 30, 2017 to 2.85% as of June 30, 2018.¹⁰

As of June 30, 2018, the yields on Moody’s Aaa-rated corporate bonds andBaa-rated corporate bonds were 3.93% and 4.84%, respectively.¹¹

⁸  Federal Reserve Bank of Philadelphia,Second Quarter 2018 Survey of Professional Forecasters, May 11, 2018

⁹  Federal Reserve Bank of St. Louis, Federal Reserve Economic Data, Series: DTB3MS,3-Month Treasury Bill: Secondary Market Rate, last accessed July 3, 2018

¹⁰  Federal Reserve Bank of St. Louis, Federal Reserve Economic Data, Series: DGS10,10-Year Treasury Constant Maturity Rate, last accessed July 3, 2018

¹¹  Federal Reserve Bank of St. Louis, Federal Reserve Economic Data, Series: DAAA, Moody’s Seasoned Aaa Corporate Bond Yield^©, Series: DBAA, Moody’s Seasoned Baa Corporate Bond Yield^©, last accessed July 3, 2018

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Yield Curve

The spread between the thirty-year and theone-year treasury bills declined from 1.60% as of June 30, 2017 to 0.65% as of June 30, 2018.¹²

¹²  U.S. Department of the Treasury,Daily Treasury Yield Curve Rates, last accessed July 3, 2018

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Corporate Profits

According to the BEA, profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased $39.5 billion in the first quarter over the fourth of 2017, in contrast to a decrease of $1.1 billion in the fourth quarter of 2017 over the third quarter.^{13, 14}

Stock Markets

The S&P 500 Total Return Index opened at 4,206.10 on June 30, 2017 and closed higher at 4,782.71 on June 30, 2018. This corresponds to an annual return of 13.7%. The NASDAQ Composite Total Return Index opened at 7,021.75 on June 30, 2017 and closed higher at 8,678.86 on June 30, 2018.¹⁵ This corresponds to an annual return of 23.6%. The Dow Jones Industrial Average Total Return Index opened at 45,510.04 on June 30, 2017 and closed higher at 52,930.99 on June 30, 2018. This corresponds to an annual return of 16.3%.

¹³  U.S. Department of Commerce, Bureau of Economic Analysis,Corporate Profits: First Quarter 2018, June 28, 2018

¹⁴  Federal Reserve Bank of St. Louis, Federal Reserve Economic Data, Series: CP, Corporate Profits After Tax (without IVA and CCAdj), last accessed July 3, 2018

¹⁵  S&P Capital IQ Database, last accessed July 3, 2018

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In the graph below, the June 30, 2017 values were set to 100.

Consumer Confidence

The Conference Board reported that the Consumer Confidence Index decreased in June 2018 to 126.4, down from 128.8 in May 2018.¹⁶ The index is based on a survey of consumer perceptions of present economic conditions and expectations of future conditions. The survey is based on a representative sample of 5,000 U.S. households and is considered a leading indicator of future consumer expenditures and economic activity.

The University of Michigan Survey of Consumers reported that the Index of Consumer Sentiment increased in June 2018 to 98.2, up from 98.0 in May 2018 and 95.0 in June 2017.¹⁷ The index is based on a survey of consumer perceptions of present economic conditions and expectations of future conditions. The survey is based on a sample of 500 phone interviews consisting of 50 core questions are conducted across the continental U.S. This is considered a leading indicator of future consumer expenditures and economic activity.

¹⁶  The Conference Board,Consumer Confidence Index, June 26, 2018

¹⁷  University of Michigan,Surveys of Consumers, June 2018

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Industry Review¹⁸

The medical supplies wholesaling industry (the “Industry”) distributes dental and medical supplies and equipment intended to improve or maintain health. Demand for wholesale activities associated with these products is highly correlated with demand for the products themselves. The median age of the population has risen over the past five years; as a result, the number ofage-related nonelective procedures performed in the United States increased as well. Accordingly, the Industry revenue has increased steadily over the five years to 2017.

In particular, demand for medical devices used in elderly care has increased over this period and is expected to continue rising over the next five years. Rising product prices have also supported industry growth. Over the five years to 2017, Industry revenue is expected to increase at an annualized rate of 1.9% to total $193.8 billion, including a 2.3% increase in 2017. Revenue growth began to slow down as the Patient Protection and Affordable Care Act took effect and further regulated the Industry. In addition, as a result of consolidation among medical device manufacturers, wholesalers must take on most increases in input costs, thus limiting their profit margins. However, due to only slight increases in commodity prices, profit margins have grown over the past five years to 6.8% in 2017.

Over the five years to 2022, Industry revenue is projected to grow at an annualized rate of 3.0% to $224.2 billion. Revenue is projected to rise as healthcare providers continue to invest in new equipment to keep up with growing demand for healthcare services. New product development by medical device manufacturers will also contribute to Industry growth by offering new solutions to health issues. Mergers and acquisitions among medical device manufacturers will cause wholesalers to consolidate to maintain negotiating power and meet demands of newly expanded customers. Consolidation will help Industry operators reduce costs, therefore leading to a rise in profit margins.

Products & Markets

Sales of high-priced medical instruments fluctuate substantially from year to year, principally as providers replace aging equipment with newer technologies. However, newly developed high technology electromedical, interventional cardiology and orthopedic products have consistently helped boost growth shipments of wholesale medical devices. These high-technology products have increased as a percentage of total Industry sales due to increased demand by doctors and patients for less-

¹⁸  Information for this section taken fromIBISWorld Industry Report 42345 – Medical Supplies Wholesaling in the U.S., dated October 2017.

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invasive, innovative products that improve the quality of patients’ lives and disease diagnosis and treatment. However, while advanced technology can fluctuate in price, the rest of the Industry is made up of less advanced products. Demand for these types of goods is fairly constant from year to year, because their prices are indirectly determined by patients. Prices for these goods are responsive to patient demographics and major population trends.

Major Markets

The overall healthcare market is characterized by healthcare providers that are consolidating into larger and more sophisticated entities to lower their total costs. Many of these providers have sought to lower total costs by taking advantage of value-added services offered by medical and surgical supply wholesalers. This trend has in turn driven consolidation within the Industry due to the competitive advantages that larger operators experience. Such economies of scale include the ability to serve nationwide customers, negotiate prices, buy inventory in large volumes and develop sophisticated technology platforms.

Competitive Structure Benchmarks

Profit

Operating profit, defined as earnings before interest and taxes, represents 6.8% of revenue for the average Industry wholesaler. Over the five years to 2017, profit has increased as a result of rising product prices and mounting demand. However, the 2.3% medical excise tax has cut into margins somewhat, and volume growth has been slightly offset by the negative impact of commodity price fluctuation on the cost of products sold. Despite this, increased healthcare spending has resulted in increased demand for Industry products.

Purchases

As is the case in most wholesaling industries, purchases account for the largest share of an average company’s revenue. The input costs for a particular company depend on the effect of supplier price changes and the impact of changes in inventory mix, but on average, purchases account for 73.3% of Industry revenue. A company’s ability to sustain gross margins partially depends on favorable terms and incentives from suppliers and suppliers’ continuing use of third-party distributors to sell and deliver their products. As an Industry company refines their supplier relationships, the percentage of revenue dedicated to purchases will decrease slightly. Industry operators can also keep purchasing costs down by entering into agreements with group purchasing organizations that negotiate distribution

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contracts on behalf of their members. Nonetheless, Industry purchase costs have gone up in recent years, due in part to the Patient Protection and Affordable Care Act’s imposition of an excise tax on some Industry-wholesaled medical devices; some upstream manufacturers have incorporated this new cost into the price of their products, thus increasing purchase costs for Industry wholesalers.

Wages

Labor costs account for an estimated 11.7% of revenue. Over the five years to 2017, wage costs have risen as the Industry has increasingly distributed more high-tech products, which require more advanced storage and transportation solutions. To offer wholesaling solutions that cater to these products, Industry operators have hired more highly paid engineers and other specialists to design storage and transport systems to handle these new products.

Other costs

Most Industry participants incur minimal marketing expenses, relying heavily on existing arrangements with suppliers and customers. However, to win new business and retain current clients, participants perform promotional activities such as distributing reminder gifts, note pads and pens. Additionally, Industry operators are increasingly advertising and selling via the internet, reducing the costs spent on other advertising forms. Depreciation expenses account for 0.8% of revenue. As the Industry continues to improve technologically, wholesale operators will look to implement more advanced machinery and equipment and capital costs will likely increase accordingly. Other Industry costs include insurance, repairs and legal fees.

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Valuation Methodology

There are three conceptually distinct methodologies that can be applied to determine the fair market value of a business or asset: (a) the income approach, (b) the market approach, and (c) the cost approach. Each of these generally accepted valuation methodologies are considered in the appraisal process and are more or less relevant given the nature of the business and the observable data used to apply the method.

The income and market approaches were utilized to arrive at a conclusion of value for Fuse’s and Maxim’spre-transaction equity. The income approach directly measures the value of a company by estimating the expected cash flows derived from the business. The market approach provides an indication of value by observing the market value of guideline companies based on various pricing measures or transactions. The cost approach was considered but deemed not necessary because this approach tends to misstate the fundamental economic value of an ongoing business enterprise.    

Summary of Supporting Schedules

Historical Financial Review of Fuse

The historical financial information for Fuse for the fiscal years ended December 31, 2016 and December 31, 2017 and the trailing twelve-month period (TTM) ended March 31, 2018 (the “Review Period”) is presented in Schedules A.1 through A.3. Schedule A.1 presents Fuse’s income statements, as issued in public filings with the Securities and Exchange Commission (SEC).

Fuse’s total revenue increased from $25.667 million at the end of fiscal year 2016 to $26.821 million reported by TTM 2018. Fuse’s SEC filings reported cost of sales of $11.257 million in 2016 and $14.645 million in TTM 2018. Cost of sales as a percentage of revenue as presented in the SEC filings ranged from 43.9% to 55.2%. Selling, general and administrative expenses (SG&A) fluctuated during the Review Period, ranging between $10.798 million and $11.523 million. SG&A expense as a percentage of revenue fluctuated between 40.9% and 43.7% of revenue during the Review Period.

Fuse reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $3.182 million in 2016, $1.027 million in 2017, and $0.641 million in TTM 2018. Fuse’s historical income statements are presented in Schedule A.1

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Fuse’s total assets decreased from $19.576 million as of December 31, 2016 to $17.210 million as of March 31, 2018. Current assets decreased along with total assets from $18.737 million as of December 31, 2016 to $15.791 million as of March 31, 2018. Fuse’s total liabilities were $8.976 million as of December 31, 2016, $27.229 million as of December 31, 2017, and $25.788 million as of March 31, 2018. Fuse’s historical balance sheets are presented in Schedule A.2. Select financial and operating ratios are presented in Schedule A.3.

Fuse Income Approach – Discounted Cash Flow Model

The projected revenue and expenses in the discounted cash flow (DCF) model were based on a review of previous projected income statements provided by Management for the fiscal years ending December 31, 2018 through December 31, 2021 and discussions with Management regarding long-term growth. The nominal growth rate consists of a long-term inflation estimate of 2.25% and a real revenue growth rate. Management’s projected income statement implies nominal revenue growth of 6.0% year-over-year from 2018 to 2021.    

The projected cost of sales as a percentage of revenue is based on Management projections and decreases from 55.6% of revenue in 2018 to 51.0% of revenue in 2021. Projected cost of sales is then estimated to equal 50.0% of revenue through the rest of the projection period. Projected SG&A expenses are based on Management projections and are expected to decrease from 36.3% of revenue in 2018 to 34.0% of revenue in 2021. Operating efficiencies and economies of scale are expected to drop SG&A to 33.0% of revenue by the residual period. The projected revenue and expenses are presented in Schedule B.1 and the projected income statements are presented in Schedule B.2.

The projected balance sheets (Schedule B.3) and capital expenditures (Schedule B.4) were determined based on historical financial information and ratios with input from Management.

In determining the valuation of Fuse’spre-transaction equity utilizing the DCF model, we derived a weighted average cost of capital (WACC) for Fuse. The two components of the WACC calculation are the firm’s cost of equity capital and the firm’s cost of debt. We estimated Fuse’s cost of equity capital to be 13.2% and its cost of debt to be 3.7%after-tax. Applying a market debt/capital ratio of 4.1%, Fuse’s WACC was estimated to be 12.8%. The calculation of the WACC is presented in greater detail in Schedule B.6.

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Based upon the forecasts and methodologies of the DCF method, it is our opinion that Fuse’spre-transaction equity value, as of July 19, 2018, can be reasonably stated as $34.910 million. These calculations are presented in Schedule B.7.

Fuse Market Approach—Guideline Public Company Method

The market approach analysis included an examination of guideline companies and pricing measures and industry transactions observable in the public and private markets.

We determined a conclusion of value based on a review of the pricing multiples of guideline companies. Based on discussions with Management and our own due diligence, we identified eight publicly traded guideline companies. We calculated and reviewed pricing multiples for each comparable company and as a group. Based on our analysis, we reviewed the mean, median, and 25th percentile of the enterprise value (EV) to sales multiples, the enterprise value (EV) to EBITDA multiples, and the enterprise value (EV) to EBIT multiples to derive a range of value.

The median of the observed EV/EBITDA multiples of 14.4x was applied to Fuse’s 2019 projected EBITDA value. The 2019 projected EBITDA value was selected as it allows for the completion of transactions and gives Management the opportunity to begin executing their plan. The unadjusted enterprise value (a future value) is then discounted using the WACC to arrive at the adjusted enterprise value (a present value). We then added cash and subtracted debt to arrive at the implied equity value on a minority, marketable basis. A control premium of 28.1%¹⁹ was then applied to determine the total equity value, on a controlling basis, of $39.199 million. The guideline public company analysis is presented in Schedules C.1 through C.2.

Fuse Market Approach – Merger & Acquisition Method

Our transaction search was based upon proprietary research of target companies within the industry and discussions with Management. After a review of numerous transactions, we identified 13 transactions that we believe are relevant to Fuse and the potential acquisition.

We reviewed EV/Sales and EV/EBITDA multiples. We selected the 75th% EV/EBITDA multiple to apply to Fuse’s 2019 EBITDA. The unadjusted enterprise value (a future value) is then discounted using the WACC to arrive at the adjusted enterprise value

¹⁹  A 28.1% control premium is based median control premium from the M&A transactions presented in Schedule D. Schedule K.2 provides a breakdown of the Mergerstat data and the control premiums for the identified M&A transactions.

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(a present value). After applying the discount factor, the adjusted enterprise value is $38.529 million. We then added cash and subtracted debt to determine a concluded equity value of $36.503 million. The merger and acquisition analysis is presented in Schedule D.

FusePre-Transaction Equity Value

We utilized the income approach and the market approach to derive conclusions of value for Fuse’spre-transaction equity on a controlling-interest basis. The conclusion of value from the DCF model was the lowest calculated value in our analysis and equals $34.910 million. The two market approaches indicate a value between $36.503 million and $39.199 million. The income and market approaches were weighted equally and resulted in a concluded equity of $36.4 million, as presented in Schedule E.

Historical Financial Review of Maxim

The historical financial information for Maxim for the fiscal years ended December 31, 2014 through December 31, 2017 and the trailing twelve-month period (TTM) ended May 31, 2018 (the “Review Period”) is presented in Schedules F.1 through F.3.    

Maxim’s total revenue decreased from $1.331 million 2014 to $1.034 million in 2015 then increased each year to $1.229 million by TTM 2018. Maxim’s cost of sales moved with revenue fluctuating between $0.526 million and $0.733 million. Cost of sales as a percentage of revenue ranged from 47.2% to 59.7%. Selling, general and administrative expenses (SG&A) fluctuated during the Review Period, ranging between $0.182 million and $0.305 million. SG&A expense as a percentage of revenue fluctuated between 15.2% and 23.3% of revenue during the Review Period.

Maxim reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $0.398 million in 2014, $0.267 million in 2015, $0.256 million in 2016, $0.341 million in 2017, and $0.224 million in TTM 2018. Maxim’s historical income statements are presented in Schedule F.1

Maxim’s total assets ranged between $0.324 million and $0.703 million during the Review Period. Maxim reported all current assets during the Review Period. Maxim’s total liabilities were $0.086 million as of December 31, 2014, $0.245 million as of December 31, 2015, then decreased to $0.109 million as of May 31, 2018. Maxim’s historical balance sheets are presented in Schedule F.2. Select financial and operating ratios are presented in Schedule F.3.

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Maxim Income Approach – Discounted Cash Flow Model

The projected revenue and expenses in the discounted cash flow (DCF) model were based on a review of projected income statements provided by Management for the fiscal years ending December 31, 2018 through December 31, 2021 and discussions with Management regarding long-term growth. The nominal growth rate consists of a long-term inflation estimate of 2.25% and a real revenue growth rate. Management’s projected income statement implies nominal revenue growth of 6.0% year-over-year from 2018 to 2021.    

The projected cost of sales as a percentage of revenue is based on Management projections and decreases from 60.0% of revenue in 2018 to 54.0% of revenue in 2021. Projected cost of sales is then estimated to equal 54.0% of revenue through the rest of the projection period. Projected SG&A expenses are based on Management projections and are expected to decrease from 22.0% of revenue in 2018 to 16.0% of revenue in 2021. This was projected to remain throughout the rest of the projection period. The projected revenue and expenses are presented in Schedule G.1 and the projected income statements are presented in Schedule G.2.

The projected balance sheets (Schedule G.3) were determined based on historical financial information and ratios with input from Management.

In determining the valuation of Maxim’spre-transaction equity utilizing the DCF model, we derived a weighted average cost of capital (WACC) for Maxim. The two components of the WACC calculation are the firm’s cost of equity capital and the firm’s cost of debt. We estimated Fuse’s cost of equity capital to be 13.2% and its cost of debt to be 3.7%after-tax. Applying a market debt/capital ratio of 4.1%, Fuse’s WACC was estimated to be 12.8%. The calculation of the WACC is presented in greater detail in Schedule G.4.

Based upon the forecasts and methodologies of the DCF method, it is our opinion that Maxim’spre-transaction equity value, as of July 19, 2018, can be reasonably stated as $3.296 million. These calculations are presented in Schedule G.5.

Maxim Market Approach—Guideline Public Company Method

The market approach analysis included an examination of guideline companies and pricing measures and industry transactions observable in the public and private markets.

VALUESCOPE Appendix B | Page 14

We determined a conclusion of value based on a review of the pricing multiples of guideline companies. Based on discussions with Management and our own due diligence, we identified eight publicly traded guideline companies. We calculated and reviewed pricing multiples for each comparable company and as a group. Based on our analysis, we reviewed the mean, median, and 25th percentile of the enterprise value (EV) to sales multiples, the enterprise value (EV) to EBITDA multiples, and the enterprise value (EV) to EBIT multiples to derive a range of value.

The 25^th percentile of the observed EV/EBITDA multiples of 10.5x was applied to Maxim’s TTM 2018 EBITDA value. We then added cash and subtracted debt to arrive at the implied equity value on a minority, marketable basis. A control premium of 28.1%²⁰was then applied to determine the total equity value, on a controlling basis, of $3.160 million. The guideline public company analysis is presented in Schedules H.1 through H.2.

Maxim Market Approach – Merger & Acquisition Method

Our transaction search was based upon proprietary research of target companies within the industry and discussions with Management. After a review of numerous transactions, we identified 13 transactions that we believe are relevant to Fuse and the potential acquisition.

We reviewed EV/Sales and EV/EBITDA multiples. We selected the median EV/EBITDA multiple to apply to Maxim’s TTM 2018 EBITDA. We then added cash and subtracted debt to determine a concluded equity value of $3.823 million. The merger and acquisition analysis is presented in Schedule I.

MaximPre-Transaction Equity Value

We utilized the income approach and the market approach to derive conclusions of value for Fuse’spre-transaction equity on a controlling-interest basis. The conclusion of value from the DCF model was equal to $3.296 million. The two market approaches indicate a value between $3.160 million and $3.823 million. The income and market approaches were weighted equally and resulted in a concluded equity of $3.4 million, as presented in Schedule J.

²⁰  A 28.1% control premium is based median control premium from the M&A transactions presented in Schedule D. Schedule K.2 provides a breakdown of the Mergerstat data and the control premiums for the identified M&A transactions.

VALUESCOPE Appendix B | Page 15

Transaction Analysis

We also reviewed Fuse’s historical trading history and share prices. According to Section 1.2(c)(i) of the Purchase Agreement, the purchase price based on the30-day volume-weighted average price (VWAP) of Fuse.

Historical Fuse share prices and trading volume are presented in the table below.²¹

Fuse Medical, Inc. (FZMD) Historical Share Data
Date	Open		High		Low		Close		Adj Close		Volume
19-Jul-18		0.75		0.75		0.75		0.75		0.75
18-Jul-18		0.75		0.75		0.75		0.75		0.75
17-Jul-18		0.75		0.75		0.75		0.75		0.75
16-Jul-18		0.75		0.75		0.75		0.75		0.75		800
13-Jul-18		1.00		1.00		0.75		0.75		0.75		2,000
12-Jul-18		1.01		1.01		1.01		1.01		1.01
11-Jul-18		1.01		1.01		1.01		1.01		1.01
10-Jul-18		1.01		1.01		1.01		1.01		1.01
9-Jul-18		1.01		1.01		1.01		1.01		1.01
6-Jul-18		1.01		1.01		1.01		1.01		1.01
5-Jul-18		1.01		1.01		1.01		1.01		1.01
3-Jul-18		1.01		1.01		1.01		1.01		1.01
2-Jul-18		1.01		1.01		1.01		1.01		1.01
29-Jun-18		1.01		1.01		1.01		1.01		1.01
28-Jun-18		1.01		1.01		1.01		1.01		1.01
27-Jun-18		1.01		1.01		1.01		1.01		1.01
26-Jun-18		1.01		1.01		1.01		1.01		1.01
25-Jun-18		1.01		1.01		1.01		1.01		1.01
22-Jun-18		1.01		1.01		1.01		1.01		1.01
21-Jun-18		1.01		1.01		1.01		1.01		1.01
20-Jun-18		1.01		1.01		1.01		1.01		1.01

The most recent30-day VWAP of Fuse is equal to $0.7500 per share. This analysis is presented in Schedule K.1

²¹  Fuse Medical historical share data taken from Yahoo Finance.

VALUESCOPE Appendix B | Page 16

Fairness Opinion Conclusion

We calculated Fuse’spre-transaction equity value per share to be $0.5524. We then calculated Maxim’s equity value to equal $3.400 million. Along with the net working capital adjustment, the total purchase price was calculated to equal $3.821 million. The concluded post-transaction Fuse equity value per share is equal to $0.5666. These calculations are presented in Summary Schedule and in the tables below.

Summary
Fair Value (FV) of Fuse Equity	$	36,400,000		Schedule E
Fuse Outstanding Shares(Pre-Transaction)		65,890,808
FV of Fuse Equity Per Share(Pre-Transaction)	$	0.5524		per share
Closing Consideration/Maxim Equity Value	$	3,400,000		Schedule J
Plus: Closing Net Working Capital		521,139
Less: Target Net Working Capital		(100,000	)
Total Maxim Purchase Price	$	3,821,139
Securities Purchase Agreement Fuse Share Price	$	0.7500		Schedule K.1
Shares Provided as Equity Payment		5,094,852
Maxim Equity Value	$	3,821,139
Fuse Equity Value	$	36,400,000
Post-Transaction Equity Value	$	40,221,139
Fuse Outstanding Shares (Post-Transaction)		70,985,660
Fully Diluted Fuse Equity Value Per Share (Post-Transaction)	$	0.5666		per share
Conclusion - Deal is FAIR to Fuse Medical, Inc. Shareholders

Based on our analysis, the Transaction isFAIR to shareholders in Fuse from a financial point of view.

VALUESCOPE Appendix B | Page 17

SCHEDULES (Page Number)

SUMMARY AND CONCLUSION	SUMMARY (1)
FINANCIAL STATEMENT ANALYSIS – FUSE	A
Historical Income Statements	A.1 (2)
Historical Balance Sheets	A.2 (3)
Selected Financial and Operating Ratios	A.3 (4)
DISCOUNTED CASH FLOW METHOD – FUSE	B
Summary of Projection Inputs	B.1 (5)
Projected Income Statements	B.2 (6)
Projected Balance Sheets	B.3 (7)
Projected Capital Expenditures	B.4 (8)
Projected Tax Expenses	B.5 (9)
Weighted Average Cost of Capital	B.6 (10)
Synthesis of Net Cash Flow	B.7 (11)
GUIDELINE PUBLIC COMPANY METHOD – FUSE	C
Determination of Relevant Multiples	C.1 (12)
Summary and Application of Multiples	C.2 (13)
MERGER AND ACQUISITION METHOD – FUSE	D (14)
EQUITY VALUATION SUMMARY – FUSE	E (15)
FINANCIAL STATEMENT ANALYSIS – MAXIM	F
Historical Income Statements	F.1 (16)
Historical Balance Sheets	F.2 (17)
Selected Financial and Operating Ratios	F.3 (18)
DISCOUNTED CASH FLOW METHOD – MAXIM	G
Summary of Projection Inputs	G.1 (19)
Projected Income Statements	G.2 (20)
Projected Balance Sheets	G.3 (21)
Weighted Average Cost of Capital	G.4 (22)
Synthesis of Net Cash Flow	G.5 (23)

SCHEDULES (Page Number)

GUIDELINE PUBLIC COMPANY METHOD – MAXIM	H
Determination of Relevant Multiples	H.1 (24)
Summary and Application of Multiples	H.2 (25)
MERGER AND ACQUISITION METHOD – MAXIM	I (26)
EQUITY VALUATION SUMMARY – MAXIM	J (27)
TRANSACTION ANALYSIS	K
Securities Purchases Agreement Share Price	K.1 (28)
Review of Control Premium Data	K.2 (29)
Fairness Opinion Conclusion	K.3 (30)

Fuse/Maxim Transaction Fairness Opinion
Summary and Conclusion	Valuation Date: July 19, 2018

Summary
Fair Value (FV) of Fuse Equity	$	36,400,000		Schedule E
Fuse Outstanding Shares(Pre-Transaction)		65,890,808
FV of Fuse Equity Per Share(Pre-Transaction)	$	0.5524		per share
Closing Consideration/Maxim Equity Value	$	3,400,000		Schedule J
Plus: Closing Net Working Capital		521,139
Less: Target Net Working Capital		(100,000	)
Total Maxim Purchase Price	$	3,821,139
Securities Purchase Agreement Fuse Share Price	$	0.7500		Schedule K.1
Shares Provided as Equity Payment		5,094,852
Maxim Equity Value	$	3,821,139
Fuse Equity Value	$	36,400,000
Post-Transaction Equity Value	$	40,221,139
Fuse Outstanding Shares (Post-Transaction)		70,985,660
Fully Diluted Fuse Equity Value Per Share (Post-Transaction)	$	0.5666		per share
Conclusion - Deal is FAIR to Fuse Medical, Inc. Shareholders

Page 1

Fuse/Maxim Transaction Fairness Opinion	Schedule A.1
Financial Statement Analysis - Fuse Medical, Inc.	Valuation Date: July 19, 2018
Historical Income Statements

	For the Year Ended:
	31-Dec-16						31-Dec-17						31-Mar-18
	Restated			%			Restated			%			TTM			%
Revenue	$	25,666,650			100.0	%	$	26,407,206			100.0	%	$	26,820,910			100.0	%
Cost of sales (COS)		11,256,887			43.9	%		14,582,416			55.2	%		14,644,968			54.6	%
Gross Profit		14,409,763			56.1	%		11,824,790			44.8	%		12,175,942			45.4	%
Selling, general & administrative (SG&A) expenses		11,227,265			43.7	%		10,797,597			40.9	%		11,523,454			43.0	%
Earnings before interest, taxes, depreciation & amortization(EBITDA)		3,182,498			12.4	%		1,027,193			3.9	%		652,488			2.4	%
Depreciation expense		19,091			0.1	%		14,521			0.1	%		11,253			0.0	%
Earnings before interest & taxes(EBIT)		3,163,407			12.3	%		1,012,672			3.8	%		641,235			2.4	%
Interest (expense)		(147,000	)		-0.6	%		(162,000	)		-0.6	%		(166,000	)		-0.6	%
Other income, net		(147,000	)		-0.6	%		(162,000	)		-0.6	%		(166,000	)		-0.6	%
Net Income	$	3,016,407			11.8	%	$	850,672			3.2	%	$	475,235			1.8	%
Annualized Growth Rates
Revenue		NA						2.9	%					6.5	%
Gross Profit		NA						-17.9	%					12.6	%
EBITDA		NA						-67.7	%					-84.1	%
EBIT		NA						-68.0	%					-84.3	%
Net Income		NA						-71.8	%					-90.6	%

Page 2

Fuse/Maxim Transaction Fairness Opinion	Schedule A.2
Financial Statement Analysis - Fuse Medical, Inc.	Valuation Date: July 19, 2018
Historical Balance Sheets

	As of:
	31-Dec-16					31-Dec-17						31-Mar-18
	Actual		%			Actual			%			Actual			%
Current Assets
Cash & cash equivalents	$	778,447		4.0	%	$	804,715			4.2	%	$	797,803			4.6	%
Accounts receivable, net		6,508,286		33.2	%		6,570,382			34.1	%		4,709,077			27.4	%
Inventory		11,426,828		58.4	%		10,626,769			55.2	%		10,253,260			59.6	%
Prepaid expenses and other CA		23,018		0.1	%		32,466			0.2	%		30,757			0.2	%
Total Current Assets		18,736,579		95.7	%		18,034,332			93.7	%		15,790,897			91.8	%
Fixed assets, net		14,747		0.1	%		16,895			0.1	%		14,817			0.1	%
Other assets		3,822		0.0	%		375,278			1.9	%		583,670			3.4	%
Goodwill		820,650		4.2	%		820,650			4.3	%		820,650			4.8	%
Total Assets	$	19,575,798		100.0	%	$	19,247,155			100.0	%	$	17,210,034			100.0	%
Current Liabilities
Accounts payable	$	2,452,922		12.5	%	$	2,588,091			13.4	%	$	1,534,437			8.9	%
Accrued expenses		3,068,054		15.7	%		1,830,679			9.5	%		2,185,661			12.7	%
Current portion long-term debt		3,455,347		17.7	%		3,565,351			18.5	%		2,823,783			16.4	%
Total Current Liabilities		8,976,323		45.9	%		7,984,121			41.5	%		6,543,881			38.0	%
Other long-term liabilities		—		0.0	%		19,244,543			100.0	%		19,244,543			111.8	%
Total Liabilities		8,976,323		45.9	%		27,228,664			141.5	%		25,788,424			149.8	%
Total Equity		10,599,475		54.1	%		(7,981,509	)		-41.5	%		(8,578,390	)		-49.8	%
Total Liabilities & Equity	$	19,575,798		100.0	%	$	19,247,155			100.0	%	$	17,210,034			100.0	%

Page 3

Fuse/Maxim Transaction Fairness Opinion	Schedule A.3
Financial Statement Analysis - Fuse Medical, Inc.	Valuation Date: July 19, 2018
Select Financial and Operating Ratios

		For the Year Ended:
		31-Dec-16					31-Dec-17					31-Mar-18
DuPont Analysis
Asset turnover					131.1	%				137.2	%				155.8	%
Operating margin					12.3	%				3.8	%				2.4	%
Interest burden					95.4	%				84.0	%				74.1	%
Tax retention rate			x		100.0	%		x		100.0	%		x		100.0	%
Return on assets					15.4	%				4.4	%				2.8	%
Financial leverage			x		1.85			x		(2.41	)		x		(2.01	)
Return on book value of equity					28.5	%				-10.7	%				-5.5	%
Short-term Liquidity																	Average
Working capital, excluding short-term debt			$13,215,603						$	13,615,562				$	12,070,799
% revenue					51.5	%				51.6	%				45.0	%		49.4	%
Current ratio					2.1	x				2.3	x				2.4	x		2.3	x
Quick Ratio					0.8	x				0.9	x				0.8	x		0.9	x
	Basis
Days cash & equivalent	COS + SG&A				13					12					11			12
Prepaid expenses	SG&A expenses				0.2	%				0.3	%				0.3	%		0.3	%
Days A/R	Revenue				93					91					64			82
Days inventory	Cost of sales				371					266					256			297
Days A/P	Cost of sales				80					65					38			61
Days accrued expensesSG&A expenses					100					62					69			77
Fixed Asset Analysis																	Average
Net fixed assets				$	14,747				$	16,895				$	14,817
% revenue					0.1	%				0.1	%				0.1	%		0.1	%
Fixed asset utilization					1,740.5	x				1,563.0	x				1,810.1	x		1,704.5	x
Depreciation expense				$	19,091				$	14,521				$	11,253
Solvency Ratios																	Average
TotalLiabilities-to-Total Equity					0.8	x				-3.4	x				-3.0	x		-1.9	x
TotalLiabilities-to-Total Liabilities & Equity					0.5	x				1.4	x				1.5	x		1.1	x
Profit Margins																	Average
Gross margin					56.1	%				44.8	%				45.4	%		29.3	%
EBITDA margin					12.4	%				3.9	%				2.4	%		3.7	%
EBIT margin					12.3	%				3.8	%				2.4	%		3.7	%
Net income margin					11.8	%				3.2	%				1.8	%		3.3	%

Page 4

Fuse/Maxim Transaction Fairness Opinion	Schedule B.1
Discounted Cash Flow Method - Fuse Medical, Inc.	Valuation Date: July 19, 2018

Summary of Projection Inputs

Income Statement Inputs

	For the Projected Year Ended:
	31-Dec-18			31-Dec-19			31-Dec-20			31-Dec-21			31-Dec-22			31-Dec-23			31-Dec-24			31-Dec-25			31-Dec-26			31-Dec-27			Residual
Inflation estimate		2.3	%		2.3	%		2.3	%		2.3	%		2.3	%		2.3	%		2.3	%		2.3	%		2.3	%		2.3	%		2.3	%
Real revenue growth rate		3.7	%		3.7	%		3.7	%		3.7	%		3.7	%		3.2	%		2.7	%		2.2	%		1.7	%		1.2	%		0.0	%
Revenue growth rate		6.0	%		6.0	%		6.0	%		6.0	%		6.0	%		5.5	%		5.0	%		4.5	%		4.0	%		3.5	%		2.3	%
Cost of sales (COS) (% of revenue)		55.6	%		54.0	%		53.0	%		51.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%
Gross profit margin		44.4	%		46.0	%		47.0	%		49.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%
SG&A expenses (% of revenue)		36.3	%		38.0	%		35.0	%		34.0	%		33.0	%		33.0	%		33.0	%		33.0	%		33.0	%		33.0	%		33.0	%
EBITDA margin		8.1	%		8.0	%		12.0	%		15.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%
Income tax rate		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%

Balance Sheet Inputs
	For the Projected Year Ended:
	31-Dec-18			31-Dec-19			31-Dec-20			31-Dec-21			31-Dec-22			31-Dec-23			31-Dec-24			31-Dec-25			31-Dec-26			31-Dec-27			Residual
Days cash & equivalents		10.0			5.5			5.5			5.5			5.5			5.5			5.5			5.5			5.5			5.5			5.5
Basis: COS + SG&A
Days A/R		65.0			60.0			60.0			60.0			60.0			60.0			60.0			60.0			60.0			60.0			60.0
Basis: Revenue
Days inventory		255.0			275.0			275.0			275.0			275.0			275.0			275.0			275.0			275.0			275.0			275.0
Basis: Cost of sales
Prepaid expenses		0.3	%		0.3	%		0.3	%		0.3	%		0.3	%		0.3	%		0.3	%		0.3	%		0.3	%		0.3	%		0.3	%
Basis: SG&A expenses
Days A/P		40.0			40.0			40.0			40.0			40.0			40.0			40.0			40.0			40.0			40.0			40.0
Basis: Cost of sales
Days accrued expenses		80.0			80.0			90.0			90.0			90.0			90.0			90.0			90.0			90.0			90.0			90.0
Basis: SG&A expenses

Page 5

Fuse/Maxim Transaction Fairness Opinion	Schedule B.2
Discounted Cash Flow Method - Fuse Medical, Inc.	Valuation Date: July 19, 2018

Projected Income Statements

	Base
	Period			For the Projected Year Ended:
	31-Dec-17			31-Dec-18			31-Dec-19			31-Dec-20			31-Dec-21			31-Dec-22			31-Dec-23			31-Dec-24			31-Dec-25			31-Dec-26			31-Dec-27			Residual
Revenue	$	26,407,206		$	27,991,638		$	29,671,137		$	31,451,405		$	33,338,489		$	35,338,799		$	37,282,433		$	39,146,554		$	40,908,149		$	42,544,475		$	44,033,532		$	45,024,286
Annual Growth Rate					6.0	%		6.0	%		6.0	%		6.0	%		6.0	%		5.5	%		5.0	%		4.5	%		4.0	%		3.5	%		2.3	%
Cost of sales (COS)		14,582,416			15,563,351			16,022,414			16,669,245			17,002,630			17,669,399			18,641,216			19,573,277			20,454,075			21,272,238			22,016,766			22,512,143
Gross Profit		11,824,790			12,428,287			13,648,723			14,782,160			16,335,860			17,669,399			18,641,216			19,573,277			20,454,075			21,272,238			22,016,766			22,512,143
SG&A expenses		10,797,597			10,160,964			11,275,032			11,007,992			11,335,086			11,661,804			12,303,203			12,918,363			13,499,689			14,039,677			14,531,066			14,858,014
Earnings before interest, taxes, depreciation & amortization(EBITDA)		1,027,193			2,267,323			2,373,691			3,774,169			5,000,773			6,007,596			6,338,014			6,654,914			6,954,385			7,232,561			7,485,700			7,654,129
Depreciation expense		14,521			20,429			7,280			11,250			15,459			19,921			21,093			22,290			23,484			24,646			25,743			26,721
Earnings before interest & taxes(EBIT)		1,012,672			2,246,894			2,366,411			3,762,918			4,985,314			5,987,675			6,316,920			6,632,625			6,930,902			7,207,915			7,459,957			7,627,408
Current income taxes					459,864			484,685			777,906			1,034,807			1,245,760			1,314,895			1,381,191			1,443,833			1,502,014			1,554,953			1,601,756
Deferred taxes					11,984			12,261			12,307			12,109			11,651			11,658			11,660			11,657			11,648			11,638			—
Total taxes					471,848			496,946			790,213			1,046,916			1,257,412			1,326,553			1,392,851			1,455,489			1,513,662			1,566,591			1,601,756
Net Income				$	1,775,046		$	1,869,465		$	2,972,705		$	3,938,398		$	4,730,263		$	4,990,367		$	5,239,773		$	5,475,412		$	5,694,253		$	5,893,366		$	6,025,652
Profit Margins																Projected Profit Margins
Gross margin		44.8	%		44.4	%		46.0	%		47.0	%		49.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%
EBITDA margin		3.9	%		8.1	%		8.0	%		12.0	%		15.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%
EBIT margin		3.8	%		8.0	%		8.0	%		12.0	%		15.0	%		16.9	%		16.9	%		16.9	%		16.9	%		16.9	%		16.9	%		16.9	%
Net income margin		0.0	%		6.3	%		6.3	%		9.5	%		11.8	%		13.4	%		13.4	%		13.4	%		13.4	%		13.4	%		13.4	%		13.4	%
Effective tax rate		NM			21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%

Page 6

Fuse/Maxim Transaction Fairness Opinion	Schedule B.3
Discounted Cash Flow Method - Fuse Medical, Inc.	Valuation Date: July 19, 2018

Projected Balance Sheets

	Base
	Period			Projected As Of:
	31-Dec-17			31-Dec-18			31-Dec-19			31-Dec-20			31-Dec-21			31-Dec-22			31-Dec-23			31-Dec-24			31-Dec-25			31-Dec-26			��	31-Dec-27			Residual
Current Assets
Cash & cash equivalents	$	804,715		$	704,776		$	411,331		$	417,054		$	427,007		$	441,977		$	466,286		$	489,600		$	511,632		$	532,097			$	550,721		$	563,112
Accounts receivable, net		6,570,382			4,984,812			4,877,447			5,170,094			5,480,300			5,809,118			6,128,619			6,435,050			6,724,627			6,993,612				7,238,389			7,401,253
Inventory		10,626,769			10,873,026			12,071,682			12,559,020			12,810,200			13,312,561			14,044,752			14,746,990			15,410,604			16,027,028				16,587,974			16,961,204
Prepaid expenses & other current assets		32,466			30,483			33,825			33,024			34,005			34,985			36,910			38,755			40,499			42,119				43,593			44,574
Total Current Assets		18,034,332			16,593,097			17,394,285			18,179,192			18,751,512			19,598,641			20,676,566			21,710,395			22,687,363			23,594,857				24,420,677			24,970,142
Fixed assets, net		16,895			14,135			25,585			34,188			39,773			42,159			44,599			47,020			49,359			51,569				53,620			55,320
Other Assets		375,278			375,278			375,278			375,278			375,278			375,278			375,278			375,278			375,278			375,278				375,278			375,278
Goodwill		820,650			820,650			820,650			820,650			820,650			820,650			820,650			820,650			820,650			820,650				820,650			820,650
Total Assets	$	19,247,155		$	17,803,160		$	18,615,798		$	19,409,308		$	19,987,213		$	20,836,728		$	21,917,094		$	22,953,343		$	23,932,650		$	24,842,354			$	25,670,226		$	26,221,391
Current Liabilities
Accounts payable	$	2,588,091		$	1,705,573		$	1,755,881		$	1,826,767		$	1,863,302		$	1,936,373		$	2,042,873		$	2,145,017		$	2,241,542		$	2,331,204			$	2,412,796		$	2,467,084
Accrued expenses		1,830,679			2,227,061			2,471,240			2,714,299			2,794,953			2,875,513			3,033,666			3,185,350			3,328,691			3,461,838				3,583,002			3,663,620
Current portion of long-term debt		3,565,351			3,565,351			3,565,351			3,565,351			3,565,351			3,565,351			3,565,351			3,565,351			3,565,351			3,565,351				3,565,351			3,565,351
Total Current Liabilities		7,984,121			7,497,984			7,792,472			8,106,417			8,223,606			8,377,237			8,641,890			8,895,717			9,135,584			9,358,393				9,561,150			9,696,055
Deferred tax liability / (asset)		—			11,984			24,245			36,552			48,661			60,312			71,970			83,630			95,287			106,935				118,574			118,574
Other long-term liabilities		19,244,543			19,244,543			19,244,543			19,244,543			19,244,543			19,244,543			19,244,543			19,244,543			19,244,543			19,244,543				19,244,543			19,244,543
Total Liabilities		27,228,664			26,754,511			27,061,260			27,387,512			27,516,810			27,682,092			27,958,404			28,223,891			28,475,414			28,709,871				28,924,266			29,059,172
Total Capital
Beginning capital					(7,981,509	)		(8,951,351	)		(8,445,461	)		(7,978,204	)		(7,529,597	)		(6,845,364	)		(6,041,310	)		(5,270,548	)		(4,542,764	)			(3,867,518	)		(3,254,041	)
Current period earnings (loss)					1,775,046			1,869,465			2,972,705			3,938,398			4,730,263			4,990,367			5,239,773			5,475,412			5,694,253				5,893,366			6,025,652
Net cash flow					2,744,888			1,363,575			2,505,448			3,489,791			4,046,030			4,186,313			4,469,011			4,747,629			5,019,007				5,279,889			5,609,393
Ending Capital		(7,981,509	)		(8,951,351	)		(8,445,461	)		(7,978,204	)		(7,529,597	)		(6,845,364	)		(6,041,310	)		(5,270,548	)		(4,542,764	)		(3,867,518	)			(3,254,041	)		(2,837,781	)
Total Liabilities & Capital	$	19,247,155		$	17,803,160		$	18,615,798		$	19,409,308		$	19,987,213		$	20,836,728		$	21,917,094		$	22,953,343		$	23,932,650		$	24,842,354			$	25,670,226		$	26,221,391
Working capital (CA - CL)	$	13,615,562		$	12,660,463		$	13,167,165		$	13,638,126		$	14,093,257		$	14,786,755		$	15,600,027		$	16,380,028		$	17,117,130		$	17,801,815			$	18,424,878		$	18,839,438
WC balance as % revenue		51.6	%		45.2	%		44.4	%		43.4	%		42.3	%		41.8	%		41.8	%		41.8	%		41.8	%		41.8	%			41.8	%		41.8	%
Additions (subtractions) thereto					(955,099	)		506,701			470,962			455,131			693,498			813,272			780,001			737,101			684,685				623,064			414,560

Page 7

Fuse/Maxim Transaction Fairness Opinion	Schedule B.4
Discounted Cash Flow Method - Fuse Medical, Inc.	Valuation Date: July 19, 2018

Projected Capital Expenditures
			31-Dec-18			31-Dec-19			31-Dec-20			31-Dec-21			31-Dec-22			31-Dec-23			31-Dec-24			31-Dec-25			31-Dec-26			31-Dec-27			Residual
Fixed asset utilization rate				1,980.3x			1,159.7x			920.0x			838.2x			838.2x			835.9x			832.5x			828.8x			825.0x			821.2x			813.9x
Required assets			$	14,135		$	25,585		$	34,188		$	39,773		$	42,159		$	44,599		$	47,020		$	49,359		$	51,569		$	53,620		$	55,320
Beginning assets				16,895			14,135			25,585			34,188			39,773			42,159			44,599			47,020			49,359			51,569			53,620
Depreciation				20,429			7,280			11,250			15,459			19,921			21,093			22,290			23,484			24,646			25,743			26,721
Required capital expenditures			$	17,669		$	18,729		$	19,853		$	21,044		$	22,307		$	23,534		$	24,710		$	25,822		$	26,855		$	27,795		$	28,421
As % revenue				0.1	%		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%
Economic / Book Depreciation Schedule:
Existing assets, net		16,895
Depreciation life - existing assets		1	$	16,895		$	0		$	0		$	0		$	0		$	0		$	0		$	0		$	0		$	0		$	0
Depreciation life - capital expenditure		5
Capital expenditures - 2018	$	17,669		3,534			3,534			3,534			3,534			3,534			—			—			—			—			—			—
Capital expenditures - 2019		18,729					3,746			3,746			3,746			3,746			3,746			—			—			—			—			—
Capital expenditures - 2020		19,853								3,971			3,971			3,971			3,971			3,971			—			—			—			—
Capital expenditures - 2021		21,044											4,209			4,209			4,209			4,209			4,209			—			—			—
Capital expenditures - 2022		22,307														4,461			4,461			4,461			4,461			4,461			—			—
Capital expenditures - 2023		23,534																	4,707			4,707			4,707			4,707			4,707			—
Capital expenditures - 2024		24,710																				4,942			4,942			4,942			4,942			4,942
Capital expenditures - 2025		25,822																							5,164			5,164			5,164			5,164
Capital expenditures - 2026		26,855																										5,371			5,371			5,371
Capital expenditures - 2027		27,795																													5,559			5,559
Capital expenditures - Residual		28,421																																5,684
Total	$	273,635	$	20,429		$	7,280		$	11,250		$	15,459		$	19,921		$	21,093		$	22,290		$	23,484		$	24,646		$	25,743		$	26,721
Tax Depreciation Schedule:
Existing assets, net		16,895
Depreciation life - existing assets		1	$	16,895		$	0		$	0		$	0		$	0		$	0		$	0		$	0		$	0		$	0		$	0
Depreciation life - capital expenditure		5
Capital expenditures - 2018	$	17,669		5,890			4,712			3,534			2,356			1,178			—			—			—			—			—			—
Capital expenditures - 2019		18,729					6,243			4,994			3,746			2,497			1,249			—			—			—			—			—
Capital expenditures - 2020		19,853								6,618			5,294			3,971			2,647			1,324			—			—			—			—
Capital expenditures - 2021		21,044											7,015			5,612			4,209			2,806			1,403			—			—			—
Capital expenditures - 2022		22,307														7,436			5,949			4,461			2,974			1,487			—			—
Capital expenditures - 2023		23,534																	7,845			6,276			4,707			3,138			1,569			—
Capital expenditures - 2024		24,710																				8,237			6,589			4,942			3,295			1,647
Capital expenditures - 2025		25,822																							8,607			6,886			5,164			3,443
Capital expenditures - 2026		26,855																										8,952			7,161			5,371
Capital expenditures - 2027		27,795																													9,265			7,412
Capital expenditures - Residual		28,421																																9,474
Total	$	273,635	$	22,785		$	10,955		$	15,146		$	18,411		$	20,693		$	21,898		$	23,103		$	24,281		$	25,405		$	26,455		$	27,347

Page 8

Fuse/Maxim Transaction Fairness Opinion	Schedule B.5
Discounted Cash Flow Method - Fuse Medical, Inc.	Valuation Date: July 19, 2018

Projected Tax Expenses

																													Residual PV Tax Value Calculation (Intangibles)
							31-Dec-18		31-Dec-19		31-Dec-20		31-Dec-21		31-Dec-22		31-Dec-23		31-Dec-24		31-Dec-25		31-Dec-26		31-Dec-27		Residual		11		12		13		14		15
Deferred Taxes
	Depreciable/ Amortizable			Estimated Life			Annual Depreciation & Amortization Expense
Economic / Book Basis
Fixed assets		Y			See B.4		$	20,429	$	7,280	$	11,250	$	15,459	$	19,921	$	21,093	$	22,290	$	23,484	$	24,646	$	25,743	$	26,721
Intangible assets		Y			10			—		—		—		—		—		—		—		—		—		—		—	$	0	$	0	$	0	$	0	$	0
Goodwill		N			NA			NA		NA		NA		NA		NA		NA		NA		NA		NA		NA		NA		NA		NA		NA		NA		NA
Total Economic / Book Basis							$	20,429	$	7,280	$	11,250	$	15,459	$	19,921	$	21,093	$	22,290	$	23,484	$	24,646	$	25,743	$	26,721	$	0	$	0	$	0	$	0	$	0
Income Tax Basis
Fixed assets		Y			See B.4		$	22,785	$	10,955	$	15,146	$	18,411	$	20,693	$	21,898	$	23,103	$	24,281	$	25,405	$	26,455	$	26,721
Intangible assets		Y			15			—		—		—		—		—		—		—		—		—		—		NA	$	0	$	0	$	0	$	0	$	0
Goodwill		Y			15			54,710		54,710		54,710		54,710		54,710		54,710		54,710		54,710		54,710		54,710		NA		54,710		54,710		54,710		54,710		54,710
Total Tax Basis							$	77,495	$	65,665	$	69,856	$	73,121	$	75,403	$	76,608	$	77,813	$	78,991	$	80,115	$	81,165	$	26,721	$	54,710	$	54,710	$	54,710	$	54,710	$	54,710
Increase / (Decrease) in deferred tax liability @					21.0	%	$	11,984	$	12,261	$	12,307	$	12,109	$	11,651	$	11,658	$	11,660	$	11,657	$	11,648	$	11,638	$	0	$	11,489	$	11,489	$	11,489	$	11,489	$	11,489
(Increase) / Decrease in deferred tax assets @					21.0	%		—		—		—		—		—		—		—		—		—		—		—		NA		NA		NA		NA		NA
Deferred tax expense							$	11,984	$	12,261	$	12,307	$	12,109	$	11,651	$	11,658	$	11,660	$	11,657	$	11,648	$	11,638	$	0	$	11,489	$	11,489	$	11,489	$	11,489	$	11,489
Total deferred tax liability (asset), net					—			11,984		24,245		36,552		48,661		60,312		71,970		83,630		95,287		106,935		118,574		118,574
Present value factor @		12.8	%																											0.3017		0.2674		0.2371		0.2102		0.1863
Present value																													$	3,466	$	3,073	$	2,724	$	2,415	$	2,141
Income Taxes and Net Operating Losses																													$	13,818		Total PV of remaining tax shield
Pretax income								2,246,894		2,366,411		3,762,918		4,985,314		5,987,675		6,316,920		6,632,625		6,930,902		7,207,915		7,459,957		7,627,408
Tax depreciation adjustment								57,066		58,385		58,606		57,661		55,483		55,514		55,524		55,507		55,469		55,421		—
Earnings before taxes and NOL utilization								2,189,828		2,308,026		3,704,313		4,927,653		5,932,193		6,261,406		6,577,101		6,875,394		7,152,446		7,404,536		7,627,408
Net operating loss utilization								—		—		—		—		—		—		—		—		—		—		—
Earnings before taxes								2,189,828		2,308,026		3,704,313		4,927,653		5,932,193		6,261,406		6,577,101		6,875,394		7,152,446		7,404,536		7,627,408
Income taxes @		21.0	%					459,864		484,685		777,906		1,034,807		1,245,760		1,314,895		1,381,191		1,443,833		1,502,014		1,554,953		1,601,756
Beginning net operating losses							$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Additions to / (utilization of) net operating losses								—		—		—		—		—		—		—		—		—		—		—
Ending net operating losses							$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

Page 9

Fuse/Maxim Transaction Fairness Opinion	Schedule B.6
Discounted Cash Flow Method - Fuse Medical, Inc.	Valuation Date: July 19, 2018

Weighted Average Cost of Capital (Dollar figures in millions, except for per share figures)

Company Name	Ticker Symbol		Observed Beta		ValDate Shares Out		ValDate Share Price		ValDate Market Cap		ValDate Total Debt, Pref. & Min Int.		Avg. Debt / Equity			Debt / Total Cap			Effective Tax Rate			Unlevered Beta
Zimmer Biomet Holdings, Inc.		ZBH		1.16		203	$	112.24	$	22,815	$	11,113		23.1	%		18.8	%		23.6	%		0.99
Orthofix International N.V.		OFIX		0.83		19	$	59.19	$	1,116	$	0		20.2	%		16.8	%		48.6	%		0.75
Globus Medical, Inc.		GMED		0.69		97	$	52.61	$	5,128	$	0		0.0	%		0.0	%		28.6	%		0.69
NuVasive, Inc.		NUVA		0.87		51	$	53.98	$	2,767	$	643		23.6	%		19.1	%		31.7	%		0.75
Exacompta Clairefontaine S.A.		EXAC		0.89		1	$	126.00	$	143	$	146		164.7	%		62.2	%		29.9	%		0.41
Cardinal Health, Inc.		CAH		0.82		311	$	49.00	$	15,224	$	9,591		26.4	%		20.9	%		40.0	%		0.71
Medtronic plc		MDT		0.98		1,352	$	88.42	$	119,518	$	25,879		22.9	%		18.7	%		20.8	%		0.83
Stryker Corporation		SYK		0.91		374	$	172.86	$	64,600	$	7,913		8.5	%		7.8	%		28.5	%		0.85
												High		164.7	%		62.2	%		48.6	%		0.99
												Mean		20.7	%		11.7	%		18.0	%		0.75
												Median		4.2	%		3.9	%		22.2	%		0.75
												CV		2.08			1.46			0.97			0.22

Capital Asset Pricing Model (CAPM) Inputs
(1) Effective tax rate	21.0	%
(2) Risk-free rate [Rf]	2.9	%
(3) Equity Risk Premium [ERP]	6.0	%
(4) Unlevered beta	0.75
(5) Target debt/equity	4.2	%
(6) Pretax cost of debt	4.7	%
(7) Small Stock Risk Premium [SSRP]	5.6	%

Capital Asset Pricing Model (CAPM) Calculations
Relevered beta	0.77
Ke = Rf + (Levered Beta x ERP) + SSRP
CAPM Cost of Equity ( ke)	13.2	%
After-tax cost of debt	3.7	%
Debt/capital ratio	4.1	%
Weighted Average Cost of Capital (WACC)	12.8	%

Notes:

(1) Reflects a C Corporation status for valuation purposes

(2) 20-Year United States Treasury rate as of July 19, 2018

(3) Duff & Phelps 2016 Valuation Handbook, long-term supply side ERP

(4) Unlevered and relevered using Hamada method

(5) Mediandebt-to-equity of the guideline companies

(6) Yield on Moody’sBaa-rated corporate bonds as of July 19, 2018

(7) Small stock risk premium 10th decile (Source: Duff & Phelps 2016 Valuation Handbook) 6

Page 10

Fuse/Maxim Transaction Fairness Opinion	Schedule B.7
Discounted Cash Flow Method - Fuse Medical, Inc.	Valuation Date: July 19, 2018

Synthesis of Net Cash Flow

	For the Projected Year Ended:
	31-Dec-18			31-Dec-19		31-Dec-20		31-Dec-21		31-Dec-22		31-Dec-23		31-Dec-24		31-Dec-25		31-Dec-26		31-Dec-27		Residual
Sources of Cash Flow:
Net income		1,775,046			1,869,465		2,972,705		3,938,398		4,730,263		4,990,367		5,239,773		5,475,412		5,694,253		5,893,366		6,025,652
Depreciation		20,429			7,280		11,250		15,459		19,921		21,093		22,290		23,484		24,646		25,743		26,721
Increase in deferred taxes		11,984			12,261		12,307		12,109		11,651		11,658		11,660		11,657		11,648		11,638		—
Total Sources of Cash Flow		1,807,459			1,889,005		2,996,263		3,965,966		4,761,835		5,023,118		5,273,723		5,510,553		5,730,547		5,930,748		6,052,373
Uses of Cash Flow:
Additions to working capital		(955,099	)		506,701		470,962		455,131		693,498		813,272		780,001		737,101		684,685		623,064		414,560
Capital expenditures		17,669			18,729		19,853		21,044		22,307		23,534		24,710		25,822		26,855		27,795		28,421
Net cash flow		2,744,888			1,363,575		2,505,448		3,489,791		4,046,030		4,186,313		4,469,011		4,747,629		5,019,007		5,279,889		5,609,393
Total Uses of Cash Flow		1,807,459			1,889,005		2,996,263		3,965,966		4,761,835		5,023,118		5,273,723		5,510,553		5,730,547		5,930,748		6,052,373
Net Cash Flow	$	2,744,888		$	1,363,575	$	2,505,448	$	3,489,791	$	4,046,030	$	4,186,313	$	4,469,011	$	4,747,629	$	5,019,007	$	5,279,889	$	5,609,393
Period (Mid—Period)		0.23			0.95		1.95		2.95		3.95		4.95		5.95		6.95		7.95		8.95
PV Factor @ WACC = 12.8%		0.9733			0.8919		0.7907		0.7010		0.6214		0.5509		0.4884		0.4330		0.3838		0.3403
Partial Period Factor (January 1, 2018—July 19, 2018)		0.45
Present Value (PV) Net Cash Flow	$	1,202,175		$	1,216,145	$	1,980,992	$	2,446,175	$	2,514,248	$	2,306,225	$	2,182,591	$	2,055,552	$	1,926,462	$	1,796,629

PV net cash flow	$	19,627,194
PV residual value		18,092,431
PV remaining tax		13,818
Enterprise Value	$	37,733,443
Less: total debt		(2,823,783	)
Value of Equity	$	34,909,660

Residual Value - Gordon Growth Model
Residual net cash flow :	$	5,609,393
Residual discount rate (k) :		12.8	%
Residual growth rate (g) :		2.3	%
x Gordon multiple [ 1 /(k-g) ] :		9.5x
Residual value :	$	53,169,598
x PV factor :		0.3403
PV residual value :	$	18,092,431

Page 11

Fuse/Maxim Transaction Fairness Opinion	Schedule C.1
Guideline Public Company Method - Fuse Medical, Inc.	Valuation Date: July 19, 2018

Determination of Relevant Multiples (Dollar figures in millions, except for per share figures)

Valuation Date
6/30/17	Ticker:	ZBH			OFIX			GMED			NUVA			EXAC			CAH			MDT			SYK
	Company:	Zimmer Biomet Holdings, Inc.			Orthofix International N.V.			Globus Medical, Inc.			NuVasive, Inc.			Exacompta Clairefontain e S.A.			Cardinal Health, Inc.			Medtronic plc			Stryker Corporation
LTM Operating Performance																										Mean			Median
Revenue(S)		$	7,869		$	440		$	655		$	1,041		$	718		$	134,426		$	29,953		$	12,730
Gross profit		$	5,692		$	345		$	501		$	760		$	382		$	7,069		$	20,983		$	8,432
% margin			72.3	%		78.5	%		76.6	%		73.0	%		53.2	%		5.3	%		70.1	%		66.2	%		61.9	%		71.2	%
Earnings before interest, taxes, depreciation & amortization(EBITDA)		$	2,774		$	58		$	211		$	226		$	63		$	3,222		$	9,499		$	3,476
% margin			35.3	%		13.2	%		32.2	%		21.7	%		8.8	%		2.4	%		31.7	%	��	27.3	%		21.6	%		24.5	%
Earnings before interest & taxes(EBIT)		$	1,716		$	37		$	171		$	112		$	29		$	2,251		$	6,855		$	2,808
% margin			21.8	%		8.4	%		26.2	%		10.8	%		4.0	%		1.7	%		22.9	%		22.1	%		14.7	%		16.3	%
Net income to common shareholders		$	1,689		$	14		$	118		$	43		$	15		$	1,696		$	3,104		$	1,019
% margin			21.5	%		3.2	%		18.1	%		4.2	%		2.2	%		1.3	%		10.4	%		8.0	%		8.6	%		6.1	%
Calculation of Equity and Capital Value
Share price as of	6/30/2017	$	112.24		$	59.19		$	52.61		$	53.98		$	126.00		$	49.00		$	88.42		$	172.86
Shares out (000s)			203			19			97			51			1			311			1,352			374
Market capitalization			22,815			1,116			5,128			2,767			143			15,224			119,518			64,600
Less: cash & equivalents			1,765			93			369			74			164			2,175			11,227			2,455
Equity value less cash(P)			21,050			1,023			4,759			2,693			(21	)		13,049			108,291			62,145
Minority interest			1			—			—			—			—			13			102			9
Preferred stock			—			—			—			—			—			—			—			—
Total debt			11,112			—			—			643			146			9,578			25,777			7,904
										��
Enterprise value(EV)			32,163			1,023			4,759			3,336			125			22,640			134,170			70,058

Operating Multiples									Mean		Median
EV/S	4.1	2.3	7.3	3.2	0.2	0.2	4.5	5.5		3.4		3.6
EV/EBITDA	11.6	17.7	22.6	14.8	2.0	7.0	14.1	20.2		13.7		14.4
EV/EBIT	18.7	27.8	27.8	29.7	4.3	10.1	19.6	24.9		20.4		22.3

Page 12

Fuse/Maxim Transaction Fairness Opinion	Schedule C.2
Guideline Public Company Method - Fuse Medical, Inc.	Valuation Date: July 19, 2018

Summary and Application of Multiples

Observed Multiples	ZBH		OFIX		GMED		NUVA		EXAC		CAH		MDT		SYK
EV/S		4.1		2.3		7.3		3.2		0.2		0.2		4.5		5.5
EV/EBITDA		11.6		17.7		22.6		14.8		2.0		7.0		14.1		20.2
EV/EBIT		18.7		27.8		27.8		29.7		4.3		10.1		19.6		24.9
Summary Statistics	Low		25th Percentile		Mean		Median		75th Percentile		High		CV
EV/S		0.2		1.8		3.4		3.6		4.7		7.3		0.7
EV/EBITDA		2.0		10.5		13.7		14.4		18.3		22.6		0.5
EV/EBIT		4.3		16.6		20.4		22.3		27.8		29.7		0.4

Select Income Statement Items	Projected Year 2019		Multiples	75th Percentile		Median		25th Percentile		Implied Values	75th Percentile			Median			25th Percentile
Revenue (S)	$	29,671,137	EV/S		4.7		3.6		1.8	EV/S	$	140,503,343		$	108,175,442		$	53,072,717
Earnings before interest, taxes,			EV/EBITDA		18.3		14.4		10.5	EV/EBITDA	$	43,421,254		$	34,275,835		$	24,810,057
depreciation & amortization (EBITDA)	$	2,373,691	EV/EBIT		27.8		22.3		16.6	EV/EBIT	$	65,781,797		$	52,678,569		$	39,224,789
Earnings before interest & taxes (EBIT)	$	2,366,411
										Unadjusted Enterprise Value Average of boxed figures				$	38,848,545
										Discount Factor Adjustment @		12.8	%		0.8398
Select Balance Sheet Items		3/31/2018								Adjusted Enterprise Value				$	32,623,200
Cash and equivalents	$	797,803								Plus: Cash				$	797,803
Total debt	$	2,823,783								Less: Total Debt				($	2,823,783	)
										Implied Equity Value—Minority, Marketable				$	30,597,220
										Control Premium @		28.1	%	$	8,602,072
										Concluded Equity Value—Control				$	39,199,292

Page 13

Fuse/Maxim Transaction Fairness Opinion	Schedule D
Merger & Acquisition Method - Fuse Medical, Inc.	Valuation Date: July 19, 2018
Transaction Approach

Industry Transactions - See Criteria Below												Transaction Multiples
		Target Revenue		Target EBITDA		Target EBITDA			Enterprise Value
Date	Target	($mm)		($mm)		Margin (%)			($mm)		Acquirer	EV/S		EV/EBITDA
12/4/2017	Exactech, Inc.		264.4		43.0		16.3	%		812.8	—		3.1		18.9
10/23/2017	Exactech, Inc.		264.4		43.0		16.3	%		709.6	TPG Capital, L.P.		2.7		16.5
9/27/2017	Bird and Cronin, Inc.		24.0		—		—			15.5	Dynatronics Corporation		0.6		—
7/20/2017	WPI Holdings Inc.		50.0		—		—			120.5	Convatec Group Plc		2.4		—
5/1/2017	Span-America Medical Systems Inc		61.8		7.3		11.8	%		73.8	Savaria Corp		1.2		10.1
11/20/2015	Liberator Medical Holdings Inc		81.6		24.1		29.6	%		174.6	CR Bard Inc		2.1		7.2
8/14/2015	HASCO Medical Inc		93.5		5.2		5.6	%		48.8	WMK Inc		0.5		9.3
8/4/2014	Symmetry Medical Inc		397.3		51.1		12.9	%		436.3	Tecomet Inc		1.1		8.5
6/25/2014	Medical Action Industries Inc		287.8		15.2		5.3	%		279.8	Owens & Minor Inc		1.0		18.4
4/24/2014	Biomet Inc		3,162.8		813.2		25.7	%		18,970.5	Zimmer Holdings Inc		6.0		23.3
2/17/2014	Chindex International Inc		187.7		13.3		7.1	%		446.7	Investor Group		2.4		33.5
11/14/2013	Kimberly-Clark Health Care Inc		1,664.0		250.6		15.1	%		1,742.2	Shareholders		1.0		7.0
6/12/2013	Pioneer Surgical Technology Inc		88.2		7.0		7.9	%		137.6	RTI Biologics Inc		1.6		19.8

Transaction Data Summary ($ Millions)	Revenue		EBITDA		EBITDA %			Enterprise Value
Mean		509.8		115.7		13.9	%		1,843.7
Median		187.7		24.1		12.9	%		279.8
Transaction Selection Criteria
Industry Classification (Target):
- Medical and Hospital Equipment and Supplies
Geographic Region: United States and Canada
Status: Announced or Closed or Effective
Percent Sought: Greater than 50%
Keyword(s):
Transaction Dates: Last 5 years
Source: Capital IQ

Summary Statistics (2013 - 2018)	EV/S		EV/EBITDA
Number of Data Points		13		11
High		6.0		33.5
75th %		2.4		19.3
Mean		2.0		15.7
Median		1.6		16.5
25th %		1.0		8.9
Low		0.5		7.0

	EV/S		EV/EBITDA
75th %		2.4		19.3
Median		1.6		16.5
25th %		1.0		8.9
Projected Year 2019	$	29,671,137	$	2,373,691
Implied Enterprise Value - 75th %	$	71,507,440	$	45,880,835
Implied Enterprise Value - Median	$	46,286,974	$	39,179,906
Implied Enterprise Value - 25th %	$	31,065,680	$	21,180,444
Indicated Enterprise Value			$	45,880,835
Average of boxed figures
Discount Factor Adjustment @ 12.8%				0.8398
Adjusted Enterprise Value			$	38,528,590
Plus: Cash and equivalents			$	797,803
Less: Total debt			($	2,823,783	)
Concluded Equity Value - Control			$	36,502,610

Page 14

Fuse/Maxim Transaction Fairness Opinion	Schedule E
Equity Valuation Summary - Fuse Medical, Inc. Synthesis of Equity Value	Valuation Date: July 19, 2018

Summary - Fuse Post -Transaction Equity Value
Valuation Method	Indicated Value		Weight			Reference
Income Approach
Discounted Cash Flow Method	$	34,909,660		50.0	%		Schedule B.7
Market Approach
Guideline Public Company Method	$	39,199,292		25.0	%		Schedule C.2
Merger and Acquisition Method	$	36,502,610		25.0	%		Schedule D
Equity Value (Rounded) - Control, Marketable	$	36,400,000

Page 15

Fuse/Maxim Transaction Fairness Opinion	Schedule F.1
Financial Statement Analysis - Maxim Surgical	Valuation Date: July 19, 2018

Historical Income Statements

	For the Year Ended:
	31-Dec-14					31-Dec-15						31-Dec-16						31-Dec-17						31-May-18
	Actual		%			Actual			%			Actual			%			Actual			%			TTM			%
Revenue	$	1,330,992		100.0	%	$	1,034,170			100.0	%	$	1,091,760			100.0	%	$	1,200,089			100.0	%	$	1,228,938			100.0	%
Cost of sales (COS)		628,082		47.2	%		526,085			50.9	%		638,691			58.5	%		676,655			56.4	%		733,135			59.7	%
Gross Profit		702,910		52.8	%		508,085			49.1	%		453,069			41.5	%		523,433			43.6	%		495,803			40.3	%
Selling, general & administrative (SG&A) expenses		305,354		22.9	%		241,478			23.3	%		196,890			18.0	%		182,247			15.2	%		271,860			22.1	%
Earnings before interest, taxes, depreciation & amortization(EBITDA)		397,557		29.9	%		266,607			25.8	%		256,178			23.5	%		341,186			28.4	%		223,942			18.2	%
Depreciation expense		—		0.0	%		—			0.0	%		—			0.0	%		—			0.0	%		—			0.0	%
Earnings before interest & taxes(EBIT)		397,557		29.9	%		266,607			25.8	%		256,178			23.5	%		341,186			28.4	%		223,942			18.2	%
Interest (expense)		—		0.0	%		—			0.0	%		—			0.0	%		—			0.0	%		—			0.0	%
Net Income	$	397,557		29.9	%	$	266,607			25.8	%	$	256,178			23.5	%	$	341,186			28.4	%	$	223,942			18.2	%
Annualized Growth Rates
Revenue		NA					-22.3	%					5.6	%					9.9	%					5.9	%
Gross Profit		NA					-27.7	%					-10.8	%					15.5	%					-12.3	%
EBITDA		NA					-32.9	%					-3.9	%					33.2	%					-63.9	%
EBIT		NA					-32.9	%					-3.9	%					33.2	%					-63.9	%
Net Income		NA					-32.9	%					-3.9	%					33.2	%					-63.9	%

Page 16

Fuse/Maxim Transaction Fairness Opinion	Schedule F.2
Financial Statement Analysis - Maxim Surgical	Valuation Date: July 19, 2018

Historical Balance Sheets

	As of:
	31-Dec-14					31-Dec-15					31-Dec-16						31-Dec-17						31-May-18
	Actual		%			Actual		%			Actual			%			Actual			%			TTM			%
Current Assets
Cash & cash equivalents	$	40,426		12.5	%	$	11,556		2.6	%	$	35,942			9.1	%	$	97,154			13.8	%	$	126,174			20.0	%
Accounts receivable, net		143,378		44.2	%		266,252		59.2	%		183,182			46.5	%		290,716			41.4	%		234,238			37.2	%
Inventory		133,311		41.1	%		159,069		35.3	%		183,587			46.6	%		315,133			44.8	%		278,367			44.2	%
Prepaid expenses and other CA		7,112		2.2	%		13,123		2.9	%		(8,542	)		-2.2	%		(347	)		0.0	%		(8,970	)		-1.4	%
Total Current Assets		324,227		100.0	%		450,000		100.0	%		394,168			100.0	%		702,655			100.0	%		629,810			100.0	%
Fixed assets, net		—		0.0	%		—		0.0	%		—			0.0	%		—			0.0	%		—			0.0	%
Total Assets	$	324,227		100.0	%	$	450,000		100.0	%	$	394,168			100.0	%	$	702,655			100.0	%	$	629,810			100.0	%
Current Liabilities
Accounts payable	$	70,221		21.7	%	$	168,187		37.4	%	$	117,367			29.8	%	$	177,655			25.3	%	$	79,892			12.7	%
Accrued expenses		15,658		4.8	%		76,858		17.1	%		15,668			4.0	%		28,778			4.1	%		28,778			4.6	%
Total Current Liabilities		85,879		26.5	%		245,045		54.5	%		133,035			33.8	%		206,433			29.4	%		108,671			17.3	%
Total Liabilities		85,879		26.5	%		245,045		54.5	%		133,035			33.8	%		206,433			29.4	%		108,671			17.3	%
Total Equity		238,348		73.5	%		204,955		45.5	%		261,133			66.2	%		496,222			70.6	%		521,139			82.7	%
Total Liabilities & Equity	$	324,227		100.0	%	$	450,000		100.0	%	$	394,168			100.0	%	$	702,655			100.0	%	$	629,810			100.0	%

Page 17

Fuse/Maxim Transaction Fairness Opinion	Schedule F.3
Financial Statement Analysis - Maxim Surgical	Valuation Date: July 19, 2018

Select Financial and Operating Ratios

		For the Year Ended:
		31-Dec-14					31-Dec-15						31-Dec-16				31-Dec-17			31-May-18
DuPont Analysis
Asset turnover					410.5	%				229.8	%			277.0	%			170.8	%				195.1	%
Operating margin					29.9	%				25.8	%			23.5	%			28.4	%				18.2	%
Interest burden					100.0	%				100.0	%			100.0	%			100.0	%				100.0	%
Tax retention rate			x		100.0	%		x		100.0	%	x		100.0	%	x		100.0	%		x		100.0	%
Return on assets					122.6	%				59.2	%			65.0	%			48.6	%				35.6	%
Financial leverage			x		1.36			x		2.20		x		1.51		x		1.42			x		1.21
Return on book value of equity					166.8	%				130.1	%			98.1	%			68.8	%				43.0	%
Short-term Liquidity																									Average
Working capital, excluding short-term debt			$238,348					$204,955					$	261,133			$	496,222			$521,139
% revenue					17.9	%				19.8	%			23.9	%			41.3	%				42.4	%		29.1	%
Current ratio					3.8	x				1.8	x			3.0	x			3.4	x				5.8	x		3.6	x
Quick Ratio					2.1	x				1.1	x			1.6	x			1.9	x				3.3	x		2.0	x
	Basis
Days cash & equivalents	COS + SG&A				16					5				16				41					46			25
Prepaid expenses	SG&A expenses				2.3	%				5.4	%			-4.3	%			-0.2	%				-3.3	%		0.0	%
Days A/R	Revenue				39					94				61				88					70			71
Days inventory	Cost of sales				77					110				105				170					139			120
Days A/P	Cost of sales				41					117				67				96					40			72
Days accrued expenses	SG&A expenses				19					116				29				58					39			52
Fixed Asset Analysis																									Average
Net fixed assets				$	0				$	0			$	0			$	0				$	0
% revenue					0.0	%				0.0	%			0.0	%			0.0	%				0.0	%		0.0	%
Fixed asset utilization					NM					NM				NM				NM					NM			#DIV/0!
Depreciation expense				$	0				$	0			$	0			$	0				$	0
Solvency Ratios																									Average
TotalLiabilities-to-Total Equity					0.4	x				1.2	x			0.5	x			0.4	x				0.2	x		0.5	x
TotalLiabilities-to-Total Liabilities & Equity					0.3	x				0.5	x			0.3	x			0.3	x				0.2	x		0.3	x
Profit Margins																									Average
Gross margin					52.8	%				49.1	%			41.5	%			43.6	%				40.3	%		45.5	%
EBITDA margin					29.9	%				25.8	%			23.5	%			28.4	%				18.2	%		25.2	%
EBIT margin					29.9	%				25.8	%			23.5	%			28.4	%				18.2	%		25.2	%
Net income margin					29.9	%				25.8	%			23.5	%			28.4	%				18.2	%		25.2	%

Page 18

Fuse/Maxim Transaction Fairness Opinion	Schedule G.1
Discounted Cash Flow Method - Maxim Surgical	Valuation Date: July 19, 2018

Summary of Projection Inputs

Income Statement Inputs    

	For the Projected Year Ended:
	31-Dec-18			31-Dec-19			31-Dec-20			31-Dec-21			31-Dec-22			31-Dec-23			31-Dec-24			31-Dec-25			31-Dec-26			31-Dec-27			Residual
Inflation estimate		2.3	%		2.3	%		2.3	%		2.3	%		2.3	%		2.3	%		2.3	%		2.3	%		2.3	%		2.3	%		2.3	%
Real revenue growth rate		3.7	%		3.7	%		3.7	%		3.7	%		3.7	%		3.2	%		2.7	%		2.2	%		1.7	%		1.2	%		0.0	%
Revenue growth rate		6.0	%		6.0	%		6.0	%		6.0	%		6.0	%		5.5	%		5.0	%		4.5	%		4.0	%		3.5	%		2.3	%
Cost of sales (COS) (% of revenue)		60.0	%		58.0	%		56.0	%		54.0	%		54.0	%		54.0	%		54.0	%		54.0	%		54.0	%		54.0	%		54.0	%
Gross profit margin		40.0	%		42.0	%		44.0	%		46.0	%		46.0	%		46.0	%		46.0	%		46.0	%		46.0	%		46.0	%		46.0	%
SG&A expenses (% of revenue)		22.0	%		20.0	%		18.0	%		16.0	%		16.0	%		16.0	%		16.0	%		16.0	%		16.0	%		16.0	%		16.0	%
EBITDA margin		18.0	%		22.0	%		26.0	%		30.0	%		30.0	%		30.0	%		30.0	%		30.0	%		30.0	%		30.0	%		30.0	%
Income tax rate		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%

Balance Sheet Inputs    

	For the Projected Year Ended:
	31-Dec-18			31-Dec-19			31-Dec-20			31-Dec-21			31-Dec-22			31-Dec-23			31-Dec-24			31-Dec-25			31-Dec-26			31-Dec-27			Residual
Days cash & equivalents Basis: COS + SG&A		45.0			45.0			45.0			45.0			45.0			45.0			45.0			45.0			45.0			45.0			45.0
Days A/R Basis: Revenue		70.0			70.0			70.0			70.0			70.0			70.0			70.0			70.0			70.0			70.0			70.0
Days inventory Basis: Cost of sales		140.0			140.0			140.0			140.0			140.0			140.0			140.0			140.0			140.0			140.0			140.0
Prepaid expenses Basis: SG&A expenses		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Days A/P Basis: Cost of sales		40.0			40.0			40.0			40.0			40.0			40.0			40.0			40.0			40.0			40.0			40.0
Days accrued expenses Basis: SG&A expenses		40.0			40.0			40.0			40.0			40.0			40.0			40.0			40.0			40.0			40.0			40.0

Page 19

Fuse/Maxim Transaction Fairness Opinion	Schedule G.2
Discounted Cash Flow Method - Maxim Surgical	Valuation Date: July 19, 2018

Projected Income Statements

	Base
	Period			For the Projected Year Ended:
	31-Dec-17			31-Dec-18			31-Dec-19			31-Dec-20			31-Dec-21			31-Dec-22			31-Dec-23			31-Dec-24			31-Dec-25			31-Dec-26			31-Dec-27			Residual
Revenue	$	1,200,089		$	1,272,094		$	1,348,420		$	1,429,325		$	1,515,084		$	1,605,989		$	1,694,319		$	1,779,035		$	1,859,091		$	1,933,455		$	2,001,126		$	2,046,151
Annual Growth Rate					6.0	%		6.0	%		6.0	%		6.0	%		6.0	%		5.5	%		5.0	%		4.5	%		4.0	%		3.5	%		2.3	%
Cost of sales (COS)		676,655			763,256			782,083			800,422			818,146			867,234			914,932			960,679			1,003,909			1,044,066			1,080,608			1,104,922
Gross Profit		523,433			508,838			566,336			628,903			696,939			738,755			779,387			818,356			855,182			889,389			920,518			941,230
SG&A expenses		182,247			279,861			269,684			257,278			242,413			256,958			271,091			284,646			297,455			309,353			320,180			327,384
Earnings before interest, taxes, depreciation & amortization(EBITDA)		341,186			228,977			296,652			371,624			454,525			481,797			508,296			533,710			557,727			580,036			600,338			613,845
Depreciation expense		—			—			—			—			—			—			—			—			—			—			—			—
Earnings before interest & taxes(EBIT)		341,186			228,977			296,652			371,624			454,525			481,797			508,296			533,710			557,727			580,036			600,338			613,845
Current income taxes					48,085			62,297			78,041			95,450			101,177			106,742			112,079			117,123			121,808			126,071			128,908
Deferred taxes					—			—			—			—			—			—			—			—			—			—			—
Total taxes					48,085			62,297			78,041			95,450			101,177			106,742			112,079			117,123			121,808			126,071			128,908
Net Income	$	341,186		$	180,892		$	234,355		$	293,583		$	359,075		$	380,619		$	401,554		$	421,631		$	440,605		$	458,229		$	474,267		$	484,938
Profit Margins				Projected Profit Margins
Gross margin		43.6	%		40.0	%		42.0	%		44.0	%		46.0	%		46.0	%		46.0	%		46.0	%		46.0	%		46.0	%		46.0	%		46.0	%
EBITDA margin		28.4	%		18.0	%		22.0	%		26.0	%		30.0	%		30.0	%		30.0	%		30.0	%		30.0	%		30.0	%		30.0	%		30.0	%
EBIT margin		28.4	%		18.0	%		22.0	%		26.0	%		30.0	%		30.0	%		30.0	%		30.0	%		30.0	%		30.0	%		30.0	%		30.0	%
Net income margin		28.4	%		14.2	%		17.4	%		20.5	%		23.7	%		23.7	%		23.7	%		23.7	%		23.7	%		23.7	%		23.7	%		23.7	%
Effective tax rate		NM			21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%

Page 20

Fuse/Maxim Transaction Fairness Opinion	Schedule G.3
Discounted Cash Flow Method - Maxim Surgical Projected Balance Sheets	Valuation Date: July 19, 2018

	Base Period			Projected As Of:
	31-Dec-17			31-Dec-18			31-Dec-19			31-Dec-20			31-Dec-21			31-Dec-22			31-Dec-23			31-Dec-24			31-Dec-25			31-Dec-26			31-Dec-27			Residual
Current Assets
Cash & cash equivalents	$	97,154		$	128,603		$	129,670		$	130,401		$	130,754		$	138,599		$	146,222		$	153,533		$	160,442		$	166,860		$	172,700		$	176,586
Accounts receivable, net		290,716			243,963			258,601			274,117			290,564			307,998			324,938			341,185			356,538			370,800			383,778			392,413
Inventory		315,133			292,756			299,977			307,011			313,809			332,638			350,933			368,480			385,061			400,464			414,480			423,806
Prepaid expenses & other current assets		(347	)		—			—			—			—			—			—			—			—			—			—			—
Total Assets	$	702,655		$	665,323		$	688,248		$	711,530		$	735,127		$	779,235		$	822,093		$	863,197		$	902,041		$	938,123		$	970,957		$	992,804
Current Liabilities
Accounts payable	$	177,655		$	83,645		$	85,708		$	87,717		$	89,660		$	95,039		$	100,267		$	105,280		$	110,017		$	114,418		$	118,423		$	121,087
Accrued expenses		28,778			30,670			29,554			28,195			26,566			28,160			29,709			31,194			32,598			33,902			35,088			35,878
Total Liabilities		206,433			114,314			115,262			115,912			116,226			123,199			129,975			136,474			142,615			148,320			153,511			156,965
Total Capital
Beginning capital					496,222			551,008			572,986			595,617			618,901			656,035			692,117			726,723			759,426			789,803			817,446
Current period earnings (loss)					180,892			234,355			293,583			359,075			380,619			401,554			421,631			440,605			458,229			474,267			484,938
Net cash flow					126,105			212,378			270,952			335,791			343,485			365,472			387,025			407,902			427,852			446,624			466,545
Ending Capital		496,222			551,008			572,986			595,617			618,901			656,035			692,117			726,723			759,426			789,803			817,446			835,838
Total Liabilities & Capital	$	702,655		$	665,323		$	688,248		$	711,530		$	735,127		$	779,235		$	822,093		$	863,197		$	902,041		$	938,123		$	970,957		$	992,804
Working capital (CA - CL)	$	496,222		$	551,008		$	572,986		$	595,617		$	618,902		$	656,036		$	692,118		$	726,724		$	759,426		$	789,803		$	817,446		$	835,839
WC balance as % revenue		41.3	%		43.3	%		42.5	%		41.7	%		40.8	%		40.8	%		40.8	%		40.8	%		40.8	%		40.8	%		40.8	%		40.8	%
Additions (subtractions) thereto					54,786			21,978			22,631			23,284			37,134			36,082			34,606			32,703			30,377			27,643			18,393

Page 21

Fuse/Maxim Transaction Fairness Opinion	Schedule G.4
Discounted Cash Flow Method - Maxim Surgical	Valuation Date: July 19, 2018
Weighted Average Cost of Capital	(Dollar figures in millions, except for per share figures)

					ValDate		ValDate		ValDate		ValDate Total		Avg.
	Ticker		Observed		Shares		Share		Market		Debt, Pref.		Debt /			Debt /			Effective			Unlevered
Company Name	Symbol		Beta		Out		Price		Cap		& Min Int.		Equity			Total Cap			Tax Rate			Beta
Zimmer Biomet Holdings, Inc.		ZBH		1.16		203	$	112.24	$	22,815	$	11,113		23.1	%		18.8	%		23.6	%		0.99
Orthofix International N.V.		OFIX		0.83		19	$	59.19	$	1,116	$	0		20.2	%		16.8	%		48.6	%		0.75
Globus Medical, Inc.		GMED		0.69		97	$	52.61	$	5,128	$	0		0.0	%		0.0	%		28.6	%		0.69
NuVasive, Inc.		NUVA		0.87		51	$	53.98	$	2,767	$	643		23.6	%		19.1	%		31.7	%		0.75
Exacompta Clairefontaine S.A.		EXAC		0.89		1	$	126.00	$	143	$	146		164.7	%		62.2	%		29.9	%		0.41
Cardinal Health, Inc.		CAH		0.82		311	$	49.00	$	15,224	$	9,591		26.4	%		20.9	%		40.0	%		0.71
Medtronic plc		MDT		0.98		1,352	$	88.42	$	119,518	$	25,879		22.9	%		18.7	%		20.8	%		0.83
Stryker Corporation		SYK		0.91		374	$	172.86	$	64,600	$	7,913		8.5	%		7.8	%		28.5	%		0.85
												High		164.7	%		62.2	%		48.6	%		0.99
												Mean		20.7	%		11.7	%		18.0	%		0.75
												Median		4.2	%		3.9	%		22.2	%		0.75
												CV		2.08			1.46			0.97			0.22

Capital Asset Pricing Model (CAPM) Inputs
(1) Effective tax rate	21.0	%
(2) Risk-free rate [Rf]	2.9	%
(3) Equity Risk Premium [ERP]	6.0	%
(4) Unlevered beta	0.75
(5) Target debt/equity	4.2	%
(6) Pretax cost of debt	4.7	%
(7) Small Stock Risk Premium [SSRP]	5.6	%

Capital Asset Pricing Model (CAPM) Calculations
Relevered beta	0.77
Ke = Rf + (Levered Beta x ERP) + SSRP
CAPM Cost of Equity ( ke)	13.2	%
After-tax cost of debt	3.7	%
Debt/capital ratio	4.1	%
Weighted Average Cost of Capital (WACC)	12.8	%

Notes:

(1) Reflects a C Corporation status for valuation purposes

(2) 20-Year United States Treasury rate as of July 19, 2018

(3) Duff & Phelps 2016 Valuation Handbook, long-term supply side ERP

(4) Unlevered and relevered using Hamada method

(5) Mediandebt-to-equity of the guideline companies

(6) Yield on Moody’sBaa-rated corporate bonds as of July 19, 2018

(7) Small stock risk premium 10th decile (Source: Duff & Phelps 2016 Valuation Handbook)

Page 22

Fuse/Maxim Transaction Fairness Opinion	Schedule G.5
Discounted Cash Flow Method - Maxim Surgical Synthesis of Net Cash Flow	Valuation Date: July 19, 2018

	For the Projected Year Ended:
	31-Dec-18		31-Dec-19		31-Dec-20		31-Dec-21		31-Dec-22		31-Dec-23		31-Dec-24		31-Dec-25		31-Dec-26		31-Dec-27		Residual
Sources of Cash Flow:
Net income		180,892		234,355		293,583		359,075		380,619		401,554		421,631		440,605		458,229		474,267		484,938
Depreciation		—		—		—		—		—		—		—		—		—		—		—
Increase in deferred taxes		—		—		—		—		—		—		—		—		—		—		—
Total Sources of Cash Flow		180,892		234,355		293,583		359,075		380,619		401,554		421,631		440,605		458,229		474,267		484,938
Uses of Cash Flow:
Additions to working capital		54,786		21,978		22,631		23,284		37,134		36,082		34,606		32,703		30,377		27,643		18,393
Capital expenditures		—		—		—		—		—		—		—		—		—		—		—
Net cash flow		126,105		212,378		270,952		335,791		343,485		365,472		387,025		407,902		427,852		446,624		466,545
Total Uses of Cash Flow		180,892		234,355		293,583		359,075		380,619		401,554		421,631		440,605		458,229		474,267		484,938
Net Cash Flow	$	126,105	$	212,378	$	270,952	$	335,791	$	343,485	$	365,472	$	387,025	$	407,902	$	427,852	$	446,624	$	466,545
Period (Mid - Period)		0.23		0.95		1.95		2.95		3.95		4.95		5.95		6.95		7.95		8.95
PV Factor @ WACC = 12.8%		0.9733		0.8919		0.7907		0.7010		0.6214		0.5509		0.4884		0.4330		0.3838		0.3403
Partial Period Factor (January 1, 2018 - July 19, 2018)		0.45
Present Value (PV) Net Cash Flow	$	55,230	$	189,415	$	214,235	$	235,373	$	213,446	$	201,337	$	189,017	$	176,607	$	164,224	$	151,976

PV net cash flow	$	1,790,860
PV residual value		1,504,787
PV remaining tax		—
Enterprise Value	$	3,295,646
Less: total debt		—
Value of Equity	$	3,295,646

Residual Value - Gordon Growth Model
Residual net cash flow :	$	466,545
Residual discount rate (k) :		12.8	%
Residual growth rate (g) :		2.3	%
x Gordon multiple [ 1 /(k-g) ] :		9.5	x
Residual value :	$	4,422,230
x PV factor :		0.3403
PV residual value :	$	1,504,787

Page 23

Fuse/Maxim Transaction Fairness Opinion	Schedule H.1
Guideline Public Company Method - Maxim Surgical Determination of Relevant Multiples	Valuation Date: July 19, 2018 (Dollar figures in millions, except for per share figures)

Valuation Date
6/30/17	Ticker:		ZBH			OFIX			GMED			NUVA			EXAC			CAH			MDT			SYK
	Company:		Zimmer Biomet Holdings, Inc.			Orthofix International N.V.			Globus Medical, Inc.			NuVasive, Inc.			Exacompta Clairefontain e S.A.			Cardinal Health, Inc.			Medtronic plc			Stryker Corporation
LTM Operating Performance																											Mean		Median
Revenue(S)			$	7,869		$	440		$	655		$	1,041		$	718		$	134,426		$	29,953		$	12,730
Gross profit			$	5,692		$	345		$	501		$	760		$	382		$	7,069		$	20,983		$	8,432
% margin				72.3	%		78.5	%		76.6	%		73.0	%		53.2	%		5.3	%		70.1	%		66.2	%	61.9	%	71.2	%
Earnings before interest, taxes, depreciation & amortization(EBITDA)			$	2,774		$	58		$	211		$	226		$	63		$	3,222		$	9,499		$	3,476
% margin				35.3	%		13.2	%		32.2	%		21.7	%		8.8	%		2.4	%		31.7	%		27.3	%	21.6	%	24.5	%
Earnings before interest & taxes(EBIT)			$	1,716		$	37		$	171		$	112		$	29		$	2,251		$	6,855		$	2,808
% margin				21.8	%		8.4	%		26.2	%		10.8	%		4.0	%		1.7	%		22.9	%		22.1	%	14.7	%	16.3	%
Net income to common shareholders			$	1,689		$	14		$	118		$	43		$	15		$	1,696		$	3,104		$	1,019
% margin				21.5	%		3.2	%		18.1	%		4.2	%		2.2	%		1.3	%		10.4	%		8.0	%	8.6	%	6.1	%
Calculation of Equity and Capital Value
Share price as of		6/30/2017	$	112.24		$	59.19		$	52.61		$	53.98		$	126.00		$	49.00		$	88.42		$	172.86
Shares out (000s)				203			19			97			51			1			311			1,352			374
Market capitalization				22,815			1,116			5,128			2,767			143			15,224			119,518			64,600
Less: cash & equivalents				1,765			93			369			74			164			2,175			11,227			2,455
Equity value less cash(P)				21,050			1,023			4,759			2,693			(21	)		13,049			108,291			62,145
Minority interest				1			—			—			—			—			13			102			9
Preferred stock				—			—			—			—			—			—			—			—
Total debt				11,112			—			—			643			146			9,578			25,777			7,904
Enterprise value(EV)				32,163			1,023			4,759			3,336			125			22,640			134,170			70,058
Operating Multiples																											Mean		Median
EV/S				4.1			2.3			7.3			3.2			0.2			0.2			4.5			5.5		3.4		3.6
EV/EBITDA				11.6			17.7			22.6			14.8			2.0			7.0			14.1			20.2		13.7		14.4
EV/EBIT				18.7			27.8			27.8			29.7			4.3			10.1			19.6			24.9		20.4		22.3

Page 24

Fuse/Maxim Transaction Fairness Opinion	Schedule H.2
Guideline Public Company Method - Maxim Surgical	Valuation Date: July 19, 2018

Summary and Application of Multiples

Observed Multiples	ZBH		OFIX		GMED		NUVA		EXAC		CAH		MDT		SYK
EV/S		4.1		2.3		7.3		3.2		0.2		0.2		4.5		5.5
EV/EBITDA		11.6		17.7		22.6		14.8		2.0		7.0		14.1		20.2
EV/EBIT		18.7		27.8		27.8		29.7		4.3		10.1		19.6		24.9

			25th						75th
Summary Statistics	Low		Percentile		Mean		Median		Percentile		High		CV
EV/S		0.2		1.8		3.4		3.6		4.7		7.3		0.7
EV/EBITDA		2.0		10.5		13.7		14.4		18.3		22.6		0.5
EV/EBIT		4.3		16.6		20.4		22.3		27.8		29.7		0.4

	TTM Base			75th				25th			75th					25th
Select Income Statement Items	Period		Multiples	Percentile		Median		Percentile		Implied Values	Percentile			Median		Percentile
Revenue (S)	$	1,228,938	EV/S		4.7		3.6		1.8	EV/S	$	5,819,455		$	4,480,478	$	2,198,199
Earnings before interest, taxes,			EV/EBITDA		18.3		14.4		10.5	EV/EBITDA	$	4,096,511		$	3,233,701	$	2,340,667
depreciation & amortization (EBITDA)	$	223,942	EV/EBIT		27.8		22.3		16.6	EV/EBIT	$	6,225,174		$	4,985,167	$	3,711,986
Earnings before interest & taxes (EBIT)	$	223,942
Net income	$	699,177
										Enterprise Value Average of boxed figures				$	2,340,667
Select Balance Sheet Items		5/31/2018								Indicated Enterprise Value				$	2,340,667
Cash and equivalents	$	126,174								Plus: Cash				$	126,174
Total debt	$	0								Less: Total Debt				$	0
										Implied Equity Value - Minority, Marketable				$	2,466,841
										Control Premium @		28.1	%	$	693,525
										Concluded Equity Value - Control				$	3,160,366

Page 25

Fuse/Maxim Transaction Fairness Opinion	Schedule I
Merger & Acquisition Method - Maxim Surgical	Valuation Date: July 19, 2018

Transaction Approach

Industry Transactions - See Criteria Below												Transaction Multiples
		Target Revenue		Target EBITDA		Target EBITDA			Enterprise Value
Date	Target	($mm)		($mm)		Margin (%)			($mm)		Acquirer	EV/S		EV/EBITDA
12/4/2017	Exactech, Inc.		264.4		43.0		16.3	%		812.8	—		3.1		18.9
10/23/2017	Exactech, Inc.		264.4		43.0		16.3	%		709.6	TPG Capital, L.P.		2.7		16.5
9/27/2017	Bird and Cronin, Inc.		24.0		—		—			15.5	Dynatronics Corporation		0.6		—
7/20/2017	WPI Holdings Inc.		50.0		—		—			120.5	Convatec Group Plc		2.4		—
5/1/2017	Span-America Medical Systems Inc		61.8		7.3		11.8	%		73.8	Savaria Corp		1.2		10.1
11/20/2015	Liberator Medical Holdings Inc		81.6		24.1		29.6	%		174.6	CR Bard Inc		2.1		7.2
8/14/2015	HASCO Medical Inc		93.5		5.2		5.6	%		48.8	WMK Inc		0.5		9.3
8/4/2014	Symmetry Medical Inc		397.3		51.1		12.9	%		436.3	Tecomet Inc		1.1		8.5
6/25/2014	Medical Action Industries Inc		287.8		15.2		5.3	%		279.8	Owens & Minor Inc		1.0		18.4
4/24/2014	Biomet Inc		3,162.8		813.2		25.7	%		18,970.5	Zimmer Holdings Inc		6.0		23.3
2/17/2014	Chindex International Inc		187.7		13.3		7.1	%		446.7	Investor Group		2.4		33.5
11/14/2013	Kimberly-Clark Health Care Inc		1,664.0		250.6		15.1	%		1,742.2	Shareholders		1.0		7.0
6/12/2013	Pioneer Surgical Technology Inc		88.2		7.0		7.9	%		137.6	RTI Biologics Inc		1.6		19.8

Transaction Data Summary ($ Millions)	Revenue		EBITDA		EBITDA %			Enterprise Value
Mean		509.8		115.7		13.9	%		1,843.7
Median		187.7		24.1		12.9	%		279.8
Transaction Selection Criteria
Industry Classification (Target):
- Medical and Hospital Equipment and Supplies
Geographic Region: United States and Canada
Status: Announced or Closed or Effective
Percent Sought: Greater than 50%
Keyword(s):
Transaction Dates: Last 5 years
Source: Capital IQ

Summary Statistics (2013 - 2018)	EV/S		EV/EBITDA
Number of Data Points		13		11
High		6.0		33.5
75th %		2.4		19.3
Mean		2.0		15.7
Median		1.6		16.5
25th %		1.0		8.9
Low		0.5		7.0
	EV/S		EV/EBITDA
75th %		2.4		19.3
Median		1.6		16.5
25th %		1.0		8.9
TTM Base Period	$	1,228,938	$	223,942
Implied Enterprise Value - 75th %	$	2,961,740	$	4,328,557
Implied Enterprise Value - Median	$	1,917,143	$	3,696,368
Implied Enterprise Value - 25th %	$	1,286,698	$	1,998,236
Indicated Enterprise Value Average of boxed figures			$	3,696,368
Plus: Cash and equivalents			$	126,174
Less: Total debt			$	0
Concluded Equity Value - Control			$	3,822,542

Page 26

Fuse/Maxim Transaction Fairness Opinion	Schedule J
Equity Valuation Summary - Maxim Surgical	Valuation Date: July 19, 2018
Synthesis of Equity Value

Summary - Fuse Post -Transaction Equity Value
Valuation Method	Indicated Value		Weight			Reference
Income Approach
Discounted Cash Flow Method	$	3,295,646		50.0	%		Schedule G.5
Market Approach
Guideline Public Company Method	$	3,160,366		25.0	%		Schedule H.2
Merger and Acquisition Method	$	3,822,542		25.0	%		Schedule I
Equity Value (Rounded) - Control, Marketable	$	3,400,000

Page 27

Fuse/Maxim Transaction Fairness Opinion	Schedule K.1
Transaction Analysis	Valuation Date: July 19, 2018
Securities Purchases Agreement Share Price

	Fuse Medical, Inc. (FZMD) Historical Share Data (1)
Date	Open		High		Low		Close		Adj Close		Volume
19-Jul-18		0.75		0.75		0.75		0.75		0.75
18-Jul-18		0.75		0.75		0.75		0.75		0.75
17-Jul-18		0.75		0.75		0.75		0.75		0.75
16-Jul-18		0.75		0.75		0.75		0.75		0.75		800
13-Jul-18		1.00		1.00		0.75		0.75		0.75		2,000
12-Jul-18		1.01		1.01		1.01		1.01		1.01
11-Jul-18		1.01		1.01		1.01		1.01		1.01
10-Jul-18		1.01		1.01		1.01		1.01		1.01
9-Jul-18		1.01		1.01		1.01		1.01		1.01
6-Jul-18		1.01		1.01		1.01		1.01		1.01
5-Jul-18		1.01		1.01		1.01		1.01		1.01
3-Jul-18		1.01		1.01		1.01		1.01		1.01
2-Jul-18		1.01		1.01		1.01		1.01		1.01
29-Jun-18		1.01		1.01		1.01		1.01		1.01
28-Jun-18		1.01		1.01		1.01		1.01		1.01
27-Jun-18		1.01		1.01		1.01		1.01		1.01
26-Jun-18		1.01		1.01		1.01		1.01		1.01
25-Jun-18		1.01		1.01		1.01		1.01		1.01
22-Jun-18		1.01		1.01		1.01		1.01		1.01
21-Jun-18		1.01		1.01		1.01		1.01		1.01
20-Jun-18		1.01		1.01		1.01		1.01		1.01
30-Day Volume Weighted Average Price (2)									$	0.75

Notes:

(1) Fuse Medical historical share data taken from Yahoo Finance.

(2) Estimated Purchase Price defined as30-day volume weighted average price (VWAP) as of three business days prior to Closing, Section 1.2(c)(i) in Securities Purchase Agreement by and among Fuse Medical, Inc. and Springs Partners, LLC, dated July 27, 2018.

Page 28

Fuse/Maxim Transaction Fairness Opinion	Schedule K.2
Transaction Analysis	Valuation Date: July 19, 2018
Review of Control Premium Data

SIC codes and descriptions:

SIC 8742 - Medical, Dental and Hospital Equipment and Supplies

MergerStat / BVR Control Premium Study Transaction Summary
Statistic	Count		Range	Mean			Median
Effective Date		16	3/27/1998 - 2/14/2018		N/A			N/A
Net Sales LTM($mil-US)		16	$15 - $4,555	$	705		$	234
EBITDA Cash Flow LTM($mil-US)		16	($51) - $754	$	90		$	11
Deal Value($mil-US)		16	$29 - $4,385	$	524		$	139
MergerStat Control Premium		16	13.6% - 400.0%		62.2	%		36.4	%
Implied Minority Discount		16	12.0% - 80.0%		30.4	%		26.7	%
Price/Sales		15	0.18 - 3.44		1.14			0.63
Price/Income		9	8.26 -29.59		19.67			19.42
Price/Book Value		14	0.45 -7.02		3.26			2.74
Target Invested Capital/EBIT		10	5.49 -27.90		17.05			16.95
Target Invested Capital/EBITDA		11	3.63 -19.57		12.55			12.22

MergerStat Indicated Control Premium
Mean	62.2	%
Median	36.4	%

M&A Transaction Indicated Control Premiums (1)
	1 day			1 week			1 month
Mean		33.4	%		33.0	%		34.5	%
Median		27.5	%		28.1	%		28.0	%
Lower Quartile		15.9	%		10.3	%		13.9	%
Selected Control Premium					28.1	%
Implied DLOC (2)					21.9	%

Notes:

(1) Control premium data from M&A transactions in the Capital IQ database. See Schedule D.

(2) Discount for Lack of Control (DLOC) calculated as [ Control Premium / (1 + Control Premium) ]

Page 29

Fuse/Maxim Transaction Fairness Opinion	Schedule K.3
Transaction Analysis	Valuation Date: July 19, 2018
Fairness Opinion Conclusion

Summary
Fair Value (FV) of Fuse Equity	$	36,400,000		Schedule E
Fuse Outstanding Shares(Pre-Transaction)		65,890,808
FV of Fuse Equity Per Share(Pre-Transaction)	$	0.5524		per share
Closing Consideration/Maxim Equity Value	$	3,400,000		Schedule J
Plus: Closing Net Working Capital		521,139
Less: Target Net Working Capital		(100,000	)
Total Maxim Purchase Price	$	3,821,139
Securities Purchase Agreement Fuse Share Price	$	0.7500		Schedule K.1
Shares Provided as Equity Payment		5,094,852
Maxim Equity Value	$	3,821,139
Fuse Equity Value	$	36,400,000
Post-Transaction Equity Value	$	40,221,139
Fuse Outstanding Shares (Post-Transaction)		70,985,660
Fully Diluted Fuse Equity Value Per Share (Post-Transaction)	$	0.5666		per share
Conclusion - Deal is FAIR to Fuse Medical, Inc. Shareholders

Page 30