Apyx Medical (APYX) 10-K 13 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Mar. 09, 2018	Jun. 30, 2017
Document And Entity Information
Entity Registrant Name	BOVIE MEDICAL CORP
Entity Central Index Key	719,135
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		33,021,170
Entity Public Float			$ 70.9
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 9,949	$ 14,456
Restricted cash	719	779
Trade accounts receivable, net of allowance of $204 and $118	4,857	4,733
Inventories, net	6,526	6,158
Prepaid expenses and other current assets	496	413
Total current assets	22,547	26,539
Property and equipment, net	6,408	6,449
Brand name and trademark	1,510	1,510
Purchased technology and license rights, net	179	215
Goodwill	185	185
Deposits	92	109
Other assets	67	103
Total assets	30,988	35,110
Current liabilities:
Accounts payable	1,583	1,606
Accrued severance and related	1,242	0
Accrued payroll	447	419
Accrued vacation	74	404
Current portion of mortgage note payable	239	239
Accrued and other liabilities	2,388	2,604
Total current liabilities	5,973	5,272
Mortgage note payable, net of current portion	2,455	2,694
Note payable	140	140
Deferred rents	0	14
Deferred tax liability	368	564
Derivative liabilities	20	203
Total liabilities	8,956	8,887
Commitments and Contingencies (see Notes 9 and 11)
STOCKHOLDERS' EQUITY
Series B convertible preferred stock, $0.001 par value; 3,588,139 authorized and zero issued and outstanding as of December 31, 2017 and 3,588,139 authorized and 975,639 issued and outstanding as of December 31, 2016, respectively	0	1
Common stock, $0.001 par value; 75,000,000 shares authorized; 33,021,170 issued and 32,878,091 outstanding as of December 31, 2017 and 40,000,000 shares authorized; 31,002,832 issued and 30,859,753 outstanding as of December 31, 2016, respectively	33	31
Additional paid-in capital	50,495	49,625
Accumulated deficit	(28,496)	(23,434)
Total stockholders' equity	22,032	26,223
Total liabilities and stockholders' equity	$ 30,988	$ 35,110

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Stockholders' equity:
Preferred stock, shares authorized	10,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	40,000,000
Common stock, shares issued	33,021,170	31,002,832
Common stock, shares outstanding	32,878,091	30,859,753
Series B Preferred Stock
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	3,588,139	3,588,139
Preferred stock, shares issued	0	975,639
Preferred stock, shares outstanding	0	975,639

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Sales	$ 38,883	$ 36,627	$ 29,520
Cost of sales	19,122	18,712	16,963
Gross profit	19,761	17,915	12,557
Other costs and expenses:
Research and development	2,455	2,618	2,160
Professional services	1,771	1,486	1,484
Salaries and related costs	7,906	9,038	7,482
Selling, general and administrative	11,370	8,565	8,417
Severance and related expense	1,524	0	0
Total other costs and expenses	25,026	21,707	19,543
Loss from operations	(5,265)	(3,792)	(6,986)
Interest expense, net	(136)	(158)	(158)
Change in fair value of derivative liabilities	183	64	1,799
Total other income (loss), net	47	(94)	1,641
Loss before income taxes	(5,218)	(3,886)	(5,345)
Income tax (benefit) expense	(156)	64	25
Net loss	(5,062)	(3,950)	(5,370)
Accretion on convertible preferred stock	0	0	(222)
Gain on conversion of warrants and preferred shares, net	0	0	13,956
Net (loss) income attributable to common shareholders	$ (5,062)	$ (3,950)	$ 8,364
(Loss) income per share attributable to common shareholders
Basic (in dollars per share)	$ (0.16)	$ (0.14)	$ 0.34
Diluted (in dollars per share)	$ (0.17)	$ (0.15)	$ 0.24
Weighted average number of shares outstanding - basic (in shares)	31,420	27,433	24,333
Weighted average number of shares outstanding - dilutive (in shares)	31,427	27,449	27,747

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2014		0	17,852
Beginning balance, amount at Dec. 31, 2014	$ 1,504	$ 0	$ 18	$ 29,334	$ (27,848)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Options exercised (in shares)			98
Options exercised	220			220
Warrants exercised (in shares)			739
Warrants exercised	1,519			1,519
Issuance of common stock (in shares)			5,219
Issuance of common stock	11,531		$ 5	11,526
Conversion of Series A Preferred stock and common warrants to Series B preferred stock (in shares)		3,588
Conversion of Series A preferred stock and common warrants to Series B preferred stock	13,920	$ 4		(40)	13,956
Conversion of Series B convertible preferred to common stock (in shares)		(1,612)	3,225
Conversion of Series B convertible preferred to common stock	0	$ (2)	$ 4	(2)
Stock based compensation	575			575
Stock swap to acquire options and warrants (in shares)			(81)
Stock swap to acquire options and warrants	(273)			(273)
Accretion on convertible preferred stock	(222)				(222)
Net loss	(5,370)				(5,370)
Ending balance (in shares) at Dec. 31, 2015		1,976	27,052
Ending balance, amount at Dec. 31, 2015	23,404	$ 2	$ 27	42,859	(19,484)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Options exercised (in shares)			36
Options exercised	130			130
Warrants exercised (in shares)			293
Warrants exercised	698			698
Issuance of common stock (in shares)			1,625
Issuance of common stock	5,830		$ 2	5,828
Conversion of Series B convertible preferred to common stock (in shares)		(1,000)	2,000
Conversion of Series B convertible preferred to common stock	0	$ (1)	$ 2	(1)
Stock based compensation	809			809
Stock swap to acquire options and warrants (in shares)			(146)
Stock swap to acquire options and warrants	(698)			(698)
Net loss	(3,950)				(3,950)
Ending balance (in shares) at Dec. 31, 2016		976	30,860
Ending balance, amount at Dec. 31, 2016	26,223	$ 1	$ 31	49,625	(23,434)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Options exercised (in shares)			177
Options exercised	427			427
Warrants exercised (in shares)			54
Warrants exercised	130			130
Conversion of Series B convertible preferred to common stock (in shares)		(976)	1,951
Conversion of Series B convertible preferred to common stock	0	$ (1)	$ 2	(1)
Stock based compensation	871			871
Stock swap to acquire options and warrants (in shares)			(164)
Stock swap to acquire options and warrants	(557)			(557)
Net loss	(5,062)				(5,062)
Ending balance (in shares) at Dec. 31, 2017		0	32,878
Ending balance, amount at Dec. 31, 2017	$ 22,032	$ 0	$ 33	$ 50,495	$ (28,496)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Net loss	$ (5,062)	$ (3,950)	$ (5,370)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	696	734	812
Provision for inventory obsolescence	502	178	157
Gain on disposal of property and equipment, net	5	21	21
Stock based compensation	871	809	575
Change in fair value of derivative liabilities	(183)	(64)	(1,799)
Provision for allowance for doubtful accounts	179	84	96
Provision (benefit) for deferred taxes	(196)	25	(25)
Changes in current assets and liabilities:
Trade receivables	(303)	(1,894)	(1,029)
Prepaid expenses	(83)	103	286
Inventories	(870)	(379)	(102)
Deposits and other assets	53	341	228
Accounts payable	(23)	392	(189)
Accrued severance and related	1,242	0	0
Accrued and other liabilities	(532)	763	553
Net cash used in operating activities	(3,704)	(2,837)	(5,786)
Cash flows from investing activities
Purchases of technology, property and equipment	(624)	(286)	(421)
Acquisition of Bovie Bulgaria, net of cash acquired	0	0	(500)
Net cash used in investing activities	(624)	(286)	(921)
Cash flows from financing activities
Proceeds from stock options/warrants exercised	0	124	1,427
Change in restricted cash	60	60	60
Repayment of mortgage note payable	(239)	(240)	(239)
Proceeds from issuance of common shares, net	0	5,830	11,531
Net cash (used in) provided by financing activities	(179)	5,774	12,779
Net change in cash and cash equivalents	(4,507)	2,651	6,072
Cash and cash equivalents, beginning of period	14,456	11,805	5,733
Cash and cash equivalents, end of period	9,949	14,456	11,805
Cash paid for:
Interest paid	136	158	158
Non cash investing activities:
Note payable for acquisitions	0	0	140
Cashless exercise of stock options/warrants	$ 557	$ 698	$ 272

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESS Bovie Medical Corporation (“Bovie”) was incorporated in 1982, under the laws of the State of Delaware. We are an energy-based medical device company specializing in developing, manufacturing and marketing a range of electrosurgical products and technologies, as well as related medical products used in doctor’s offices, surgery centers and hospitals worldwide.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES Consolidated Financial Statements The accompanying consolidated financial statements include the accounts of Bovie and its wholly owned subsidiaries, Aaron Medical Industries, Inc., Bovie Bulgaria, EOOD, BVX Holdings LLC and Bovie Holdings, Inc., (collectively, the “Company” or “we”, “our” or “us”). All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. The reported amounts of revenues and expenses during the reporting period may be affected by the estimates and assumptions we are required to make. Cash and Cash Equivalents Holdings of highly liquid investments with original maturities of three months or less are considered to be cash equivalents. Fair Values of Financial Instruments and Concentration of Credit Risk The carrying amounts of our financial instruments included in current assets and liabilities approximate fair value due to their short term nature. In addition, we believe the book values of our mortgage payable and capital lease payable approximates their fair values as the terms of such obligations approximate the terms at which similar types of borrowing arrangements could be currently obtained. Financial instruments, which potentially subject us to significant concentrations of credit risk, consist primarily of cash and cash equivalents and trade accounts receivable. With respect to cash, we frequently maintain cash and cash equivalent balances in excess of federally insured limits. We have not experienced any losses in such accounts. Derivative Financial Instruments We generally do not use derivative financial instruments to hedge exposures to cash-flow risks or market risks. However, certain financial instruments, such as warrants, which are indexed to our common stock, are classified as liabilities when either (a) the holder possesses rights to net-cash settlement or (b) physical or net-share settlement is not within our control. In such instances, net-cash settlement is assumed for financial accounting and reporting purposes, even if the terms of the underlying contracts do not always provide for net-cash settlement. Such financial instruments are initially recorded and continuously carried, at fair value. Determining the fair value of these instruments involves judgment and the use of certain relevant assumptions including, but not limited to, interest rate risk, historical volatility and stock price, estimated life of the derivative, anti-dilution provisions and conversion/redemption privileges. The use of different assumptions or changes in those assumptions could have a material effect on the estimated fair value amounts. Accounts Receivable and Allowance for Doubtful Accounts Our credit terms for our billings range from net 10 days to net 60 days, depending on the customer agreement. Accounts receivable are determined to be past due if payments are not made in accordance with such agreements and an allowance is generally recorded for accounts that become three months past due, or sooner if there are other indicators that the receivables may not be recovered. Customary collection efforts are initiated and receivables are written off when we determine they are not collectible and abandon these collection efforts. We gave negotiated sales volume discounts, which amounted to approximately $0.5 million , $0.6 million and $0.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Sales are reported net of all discounts. We evaluate the allowance for doubtful accounts on a regular basis for adequacy based upon our periodic review of the collectability of the receivables in light of historical experience, adverse situations that may affect our customers’ ability to pay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. Management believes that the allowances for doubtful accounts of approximately $0.2 million and $0.1 million at December 31, 2017 and 2016 , respectively, are, or were, adequate to provide for possible bad debts. With respect to receivables, our ten largest customers accounted for approximately 44.0% and 42.9% of trade receivables as of December 31, 2017 and 2016 , respectively and 48.3% , 54.4% and 58.3% of net sales for the years ended December 31, 2017 , 2016 and 2015 , respectively. In 2017 , McKesson accounted for 15.7% and National Distribution & Contracting Inc. accounted for 9.2% of our sales. In 2016 , McKesson accounted for 15.9% and National Distribution & Contracting Inc. accounted for 9.8% of our sales. In 2015 , McKesson accounted for 18.6% and National Distribution & Contracting Inc. accounted for 13.3% of our sales. Inventories and Repair Parts Inventories are stated at the lower of cost or market. Cost is determined on a first in, first out basis. Finished goods and work-in-process inventories include material, labor and overhead costs. Factory overhead costs are allocated to inventory manufactured in-house based upon labor hours. We monitor usage reports to determine if the carrying value of any items should be adjusted due to lack of demand for the item and adjust the inventory for estimated obsolescence or unusable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. Inventories consisted of the following: (In thousands) December 31, December 31, Raw materials $ 5,163 $ 4,521 Finished goods 3,276 3,048 Gross inventories 8,439 7,569 Less: reserve for obsolescence (1,913 ) (1,411 ) Inventories, net $ 6,526 $ 6,158 The Company recorded changes in excess and obsolete inventory totaling approximately $0.5 million , $0.2 million and $0.2 million during 2017 , 2016 and 2015 , respectively. Property and Equipment Property and equipment are recorded at cost. Depreciation and amortization are provided for using the straight-line method over the estimated useful lives of the assets. The amortization of leasehold improvements is based on the shorter of the lease term or the life of the improvement. Betterments and large improvements, which extend the life of the asset, are capitalized, whereas maintenance and repairs and small improvements are expensed as incurred. The estimated useful lives are: machinery and equipment, 3 - 10 years; buildings, 39 years; molds, 7 - 15 years and furniture and fixtures, 5 - 10 years. Intangible Assets Intangible assets consist of licenses, purchased technology and brand name and trademarks. The licenses and purchased technology are being amortized by the straight-line method over a 5 - 17 year period commencing with the date they were placed in service. Brand name and trademark qualifies as an indefinite-lived intangible asset and is not subject to amortization. Intangibles with indefinite lives are analyzed for impairment annually or more frequently if events and circumstances indicate that the asset may be impaired. If impaired, an impairment loss is recognized in an amount equal to the excess of the asset’s carrying value over its fair value. Management concluded that the assigned value at December 31, 2017 of approximately $1.5 million was not impaired and is reasonable. Valuation of Long-Lived Assets We review long-lived assets for recoverability if events or changes in circumstances indicate that the assets may have been impaired. This circumstance exists when the carrying amount of the asset exceeds the sum of the undiscounted cash flows expected to result from its use and eventual disposition. In those cases an impairment loss is recognized to the extent that the assets’ carrying amount exceeds its fair value. Any impairment losses are not restored in the future if the fair value increases. At December 31, 2017 , we believe the remaining carrying values of our long-lived assets are recoverable. Revenue Recognition Revenue is recognized when title has been transferred to the customer, which is generally at the time of shipment or receipt by customer for FOB destination terms. The following policies apply to our major categories of revenue transactions: • The majority of our sales to customers are evidenced by firm purchase orders. Generally, title and the risks and rewards of ownership are transferred to the customer when the product is shipped. Payment by the customer is due under fixed payment terms. • Product returns are only accepted at our discretion and in accordance with our “Returned Goods Policy”. Historically, the level of product returns has not been significant. We accrue for sales returns, rebates and allowances based upon an analysis of historical customer returns and credits, rebates, discounts and current market conditions. • Our terms of sale to customers generally do not include any obligations to perform future services. Limited warranties are generally provided for sales and provisions for warranty are provided at the time of product sale based upon an analysis of historical data. • Amounts billed to customers related to shipping and handling charges are included in sales. Shipping and handling costs included in cost of sales were approximately $0.2 million , $0.2 million and $0.1 million in 2017 , 2016 and 2015 , respectively. ASU No. 2014-09 (ASC 606), Revenue from Contracts with Customers will become effective for us beginning with the first quarter of 2018, and we plan to adopt the new accounting standard using the modified retrospective transition approach. The modified retrospective transition approach will recognize any changes from the beginning of the year of initial application through retained earnings with no restatement of comparative periods. We will record revenue under ASC 606 at a single point in time, when control is transferred to the customer, which is consistent with past practice. We will continue to apply our current business processes, policies, systems and controls to support recognition and disclosure under the new standard. Based on the results of the evaluation, we have determined that the adoption of the new standard will have a material impact on our consolidated financial statements. Application of the transition requirements of the new standard will not have a material impact on opening retained earnings. Advertising Costs All advertising costs are expensed as incurred. The amounts of advertising costs were approximately $0.6 million , $0.7 million and $0.5 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Stock-Based Compensation We account for stock-based compensation in accordance with FASB ASC Topic 718, Compensation-Stock Compensation . FASB ASC 718 requires recognizing compensation costs for all share-based payment awards made to employees and directors based upon the awards’ grant date fair value. The standard covers employee stock options, restricted stock and other equity awards. For stock options, we use a trinomial lattice option-pricing model to estimate the grant date fair value of stock option awards and recognize compensation cost on a straight-line basis over the awards’ vesting periods. Litigation Contingencies In accordance with authoritative guidance, we record a liability in our consolidated financial statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible, but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the consolidated financial statements. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. Tax Effects of Stock-Based Compensation We will only recognize a tax benefit from windfall tax deductions for stock-based awards in additional paid-in capital if an incremental tax benefit is realized after all other tax attributes currently available have been utilized. Net (Loss) Earnings Per Common Share We compute basic (loss) earnings attributable to common shareholders per share by dividing net (loss) income attributable to common shareholders by the weighted average number of common shares outstanding for the reporting period. Diluted (loss) earnings per share attributable to common shareholders gives effect to all potential dilutive shares outstanding during the period. The number of dilutive shares is calculated using the treasury method which reduces the effective number of shares by the amount of shares we could purchase with the proceeds of assumed exercises. Research and Development Costs With the exception of development costs that are purchased from another enterprise and have alternative future use, research and development expenses are charged to operations as incurred. We have expended approximately $2.5 million and $2.6 million and $2.2 million for the years ended 2017 , 2016 and 2015 respectively. Research and Development Costs for Others For research and development activities that are partially or completely funded by other parties and when the obligation is incurred solely to perform contractual services, expenses are charged to cost of sales and all revenues resulting from such activities are shown as sales. Income Taxes We utilize the liability method of accounting for income taxes as set forth in FASB ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. Management evaluated the positive and negative evidence in determining the realizability of the net deferred tax asset. In determining the need for valuation allowance, we reviewed historic operating results, updated 2017 actual results, as well as future income forecasts based on the projections, management concluded that it was not more likely that the Company should realize its net deferred tax assets through future operating results and the reversal of taxable temporary differences. If in the future we determine that we will be able to realize any of the net deferred tax assets, we will make adjustment to the valuation allowance, which would increase our income in the period that the determination is made. We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available as of the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, we have recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements.

ACQUISITION OF BOVIE BULGARIA

ACQUISITION OF BOVIE BULGARIA	12 Months Ended
	Dec. 31, 2017
Business Combinations [Abstract]
ACQUISITION OF BOVIE BULGARIA	ACQUISITION OF BOVIE BULGARIA On October 20, 2015 (the “Effective Date”), the Company and Nikolay Shilev entered into and consummated a Share Purchase Agreement (the “Purchase Agreement”) whereby the Company acquired all of the outstanding equity interests of Bovie Bulgaria EOOD, a limited liability company incorporated under Bulgarian law (“Bovie Bulgaria”). Pursuant to the terms of the Purchase Agreement, the Company agreed to pay Mr. Shilev approximately $559,000 payable as follows: (i) $419,000 payable within three business days after the effective registration of the Company as the sole shareholder of Bovie Bulgaria and (ii) $140,000 payable on the five year anniversary of the Effective Date. In conjunction with the execution and consummation of the Purchase Agreement, the Company caused Bovie Bulgaria to enter into a Management Agreement with Mr. Shilev (the “Management Agreement”). Pursuant to the terms of the Management Agreement: (i) Mr. Shilev shall be engaged by the Company for a period of five years; (ii) the Company agreed to pay Mr. Shilev an annual base salary of $141,250 ; (iii) Mr. Shilev shall be entitled to, subject to certain limitations, an annual performance based bonus equal to twenty percent of Mr. Shilev’s base salary; (iv) as an inducement to enter into the Management Agreement, the Company awarded Mr. Shilev a restricted stock grant of 225,922 shares of the Company’s common stock, with such restricted stock vesting ratably over a five year period and subject to forfeiture upon Mr. Shilev’s Management Agreement being terminated for Cause or without “Good Reason” (as each is defined in the Management Agreement); and (v) the Company agreed to provide severance payments in the event of certain termination events as set forth in the Management Agreement. The table below summarizes the preliminary purchase price and the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date of October 20, 2015: (In thousands) Cash and cash equivalents $ 59 Inventories, net 285 Prepaid expenses and other current assets 1 Property and equipment, net 167 Goodwill 185 Deferred income tax assets, net 25 Deposits, net of current portion 8 Accounts payable (150 ) Accrued and other liabilities (21 ) Value of consideration paid $ 559

TRADE ACCOUNTS RECEIVABLE

TRADE ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2017
Receivables [Abstract]
TRADE ACCOUNTS RECEIVABLE	TRADE ACCOUNTS RECEIVABLE Trade accounts receivable consisted of the following: (In thousands) December 31, December 31, Trade accounts receivable $ 5,061 $ 4,851 Less: allowance for doubtful accounts (204 ) (118 ) Trade accounts receivable, net 4,857 4,733

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: (In thousands) December 31, December 31, Land $ 1,600 $ 1,600 Machinery and equipment 3,231 3,775 Building and improvements 4,512 4,237 Furniture and fixtures 1,947 2,194 Leasehold improvements — 12 Molds 1,829 1,900 Total property, plant and equipment 13,119 13,718 Less: accumulated depreciation (6,711 ) (7,269 ) Net property, plant and equipment $ 6,408 $ 6,449 Total depreciation expense was $0.6 million , $0.6 million and $0.7 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Depreciation expense is included primarily within cost of goods sold in the consolidated statements of operations.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	INTANGIBLE ASSETS Intangible assets consisted of the following: (In thousands) December 31, December 31, Brand name and trademark (life indefinite) $ 1,510 $ 1,510 Purchased technology (5-17 year lives) $ 1,513 $ 1,441 Less: accumulated amortization (1,334 ) (1,226 ) Purchased technology, net $ 179 $ 215 Goodwill $ 185 $ 185 With respect to our trademark and brand name, we continue to market products, release new products and product extensions and maintain and promote these trademarks and brand name in the marketplace through legal registration and such methods as advertising, medical education and trade shows. Based on our annual impairment testing, these trademarks and brand names will generate cash flow for an indefinite period of time. Therefore, we believe our trademarks and brand name intangible assets are not impaired. Goodwill results from our acquisition of Bovie Bulgaria, EOOD. Amortization of intangible assets was $0.1 million for the years ended December 31, 2017 , 2016 and 2015 . Amortization expense is classified within selling, general and administration expenses in the consolidated statements of operations. Amortization expense amounts for the next three years are expected to be approximately $0.1 million for 2018 through 2020 .

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE We compute basic earnings per share (“basic EPS”) by dividing the net income or loss by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share (“diluted EPS”) gives effect to all dilutive potential shares outstanding. The following table provides the computation of basic and diluted earnings per share. Year Ended December 31, (in thousands, except per share data) 2017 2016 2015 Numerator: Net (loss) income available to common shareholders $ (5,062 ) $ (3,950 ) $ 8,364 Effect of dilutive securities: Derivative liability - warrants (183 ) (64 ) (1,799 ) Accretion on convertible preferred stock — — 222 Numerator for dilutive (loss) income per common share (5,245 ) (4,014 ) 6,787 Denominator: Weighted average shares used to compute basic (loss) income 31,420 27,433 24,333 Effect of dilutive securities: Derivative liability - warrants 7 16 28 Convertible preferred stock — — 3,137 Stock options — — 249 Denominator for dilutive (loss) income per common share 31,427 27,449 27,747 Basic (loss) income per common share $ (0.16 ) $ (0.14 ) $ 0.34 Diluted (loss) income per common share $ (0.17 ) $ (0.15 ) $ 0.24

CAPITAL STOCK

CAPITAL STOCK	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
CAPITAL STOCK	CAPITAL STOCK Common Stock - We are authorized to issue 75,000,000 shares of common stock. Holders of common stock are entitled to one vote for each share held of record on each matter submitted to a vote of shareholders. Holders of our common stock do not have a cumulative voting right, which means that the holders of more than one half of our outstanding shares of common stock, subject to the rights of the holders of preferred stock, can elect all of our directors, if they choose to do so. In this event, the holders of the remaining shares of common stock would not be able to elect any directors. Subject to the prior rights of any class or series of preferred stock which may from time to time be outstanding, if any, holders of common stock are entitled to receive ratably, dividends when, as and if declared by our Board of Directors out of funds legally available for that purpose and, upon our liquidation, dissolution, or winding up, are entitled to share ratably in all assets remaining after payment of liabilities and payment of accrued dividends and liquidation preferences on the preferred stock, if any. Holders of common stock have no preemptive rights and have no rights to convert their common stock into any other securities. The outstanding common stock is duly authorized and validly issued, fully-paid and non-assessable. Except as otherwise required by Delaware law and subject to the rights of the holders of preferred stock, all stockholder action is taken by the vote of a majority of the outstanding shares of common stock present at a meeting of shareholders at which a quorum consisting of a majority of the outstanding shares of common stock is present in person or by proxy. Shares repurchased are held as treasury shares and used for general corporate purposes including, but not limited to, satisfying obligations under our employee benefit plans. Treasury stock is recorded at cost. On November 10, 2016, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with certain selling stockholders of the Company (the “Selling Stockholders”) and Piper Jaffray & Co. (the “Underwriter”) relating to public offerings of the Company's common stock, par value $0.001 per share at a public offering price of $4.00 per share. The Company made a primary offering of 1,625,000 shares and a secondary offering of 1,625,000 shares by the Selling Stockholders. The net proceeds from the sale of the shares, after deducting the Underwriter’s discounts and commissions and estimated offering expenses payable, were approximately $5.8 million . The offerings closed on November 16, 2016. The shares were offered and sold by the Company pursuant to a prospectus dated December 16, 2014 and a prospectus supplement filed with the Securities and Exchange Commission (the “SEC”) on November 10, 2016, which are part of the effective shelf registration statement on Form S-3 (File No. 333-200986) filed with the SEC on December 15, 2014. The shares were offered and sold by the Selling Stockholders pursuant to a prospectus dated April 24, 2015 and a prospectus supplement filed with the SEC on November 10, 2016, which are part of the effective registration statement on Form S-3 (File No. 333-203422) filed with the SEC on April 15, 2015. Preferred Stock - We are authorized to issue 10,000,000 shares of preferred stock, par value $0.001 per share. We may issue preferred stock in one or more series and having the rights, privileges and limitations, including voting rights, conversion rights, liquidation preferences, dividend rights and preferences and redemption rights, as may from time to time be determined by our Board of Directors. Preferred stock may be issued in the future in connection with acquisitions, financings, or other matters, as our Board of Directors deems appropriate. In the event that we determine to issue any shares of preferred stock, a certificate of designation containing the rights, privileges and limitations of this series of preferred stock will be filed with the Secretary of State of the State of Delaware. The effect of this preferred stock designation power is that our Board of Directors alone, subject to Federal securities laws, applicable blue sky laws and Delaware law, may be able to authorize the issuance of preferred stock which could have the effect of delaying, deferring, or preventing a change in control of our company without further action by our shareholders and may adversely affect the voting and other rights of the holders of our common stock. The issuance of preferred stock with voting and conversion rights may also adversely affect the voting power of the holders of our common stock, including the loss of voting control to others. Series B Convertible Preferred Stock – On March 16, 2015, the Company filed a Certificate to Set Forth Designations, Voting Powers, Preferences, Limitations, Restrictions and Relative Rights (the “Certificate of Designations”) of its Series B Convertible Preferred Stock with the Secretary of State of the State of Delaware to amend our articles of incorporation. The Certificate of Designations sets forth the rights, preferences and privileges of the Series B Preferred Stock. As provided in our articles of incorporation, the filing of the Certificate of Designations was approved by our Board of Directors. As of December 31, 2017 , there are no shares of Series B Preferred Stock outstanding. The following is a summary of the rights, privileges and preferences of the Series B Preferred Stock: Number of Shares: The number of shares of Preferred Stock designated as Series B Preferred Stock are 3,588,139 . Conversion: The Series B Preferred Stock were convertible at the option of the holder, into common stock at a conversion ratio of one (1) share of Series B Preferred to two ( 2 ) shares of Common Stock, subject to adjustments for stock dividends, splits, combinations and similar events as described in the form of Certificate of Designations. Dividends: The Series B Preferred Stock was not entitled to receive any special dividend. Voting Rights: Except as described in the Certificate of Designations, holders of the Series B Preferred Stock would have voted together with holders of the Company common stock on all matters, on an as-converted to common stock basis and not as a separate class or series (subject to limited exceptions).

CONVERTIBLE PREFERRED STOCK AND

CONVERTIBLE PREFERRED STOCK AND WARRANTS	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
CONVERTIBLE PREFERRED STOCK AND WARRANTS	CONVERTIBLE PREFFERED STOCK AND WARRANTS 2013 Financing On December 13, 2013 , the Company entered into a securities purchase agreement with certain investors for the private placement, for aggregate gross proceeds of $7.0 million , of 3,500,000 shares of the Company’s newly-designated Series A 6% Convertible Preferred Stock (the “Series A Preferred Stock” – see Note 6) and warrants to purchase 5,250,000 shares of our common stock at an exercise price of $2.387 per share. In connection with the placement of the Series A Preferred Stock and warrants, we also issued warrants to purchase 525,000 shares of our common stock, with the same terms as the investor warrants, to the placement agent. Because the holders of the Series A Preferred Stock could have requested redemption on or after December 13, 2017, the preferred stock had conditions for its redemption that were not within the control of the Company. Accordingly, the carrying amount of the Series A Preferred Stock of $2.6 million , net of the expenses allocated to the preferred stock of $0.4 million , was recorded outside of stockholders’ equity, as mezzanine equity, in accordance with FASB ASC 480-10-S99. The net carrying amount of the Series A Preferred Stock was accreted to its redemption value over the four year period to when the holders may request redemption, using an effective interest method. For the year ended December 31, 2015, additional accretion of $221,902 was recognized. During 2015, the Series A Preferred Stock and certain related common warrants were exchanged for Series B Preferred Stock. As a result the net carrying amount of the Series A Preferred Stock at December 31, 2017 and 2016 was $0 . Reconciliation of changes in fair value Certain assets and liabilities that are measured at fair value on a recurring basis are measured in accordance with FASB ASC Topic 820-10-05, Fair Value Measurements . FASB ASC Topic 820-10-05 defines fair value, establishes a framework for measuring fair value and expands the disclosure requirements regarding fair value measurements for financial assets and liabilities as well as for non-financial assets and liabilities that are recognized or disclosed at fair value on a recurring basis in the financial statements. The statement requires fair value measurement be classified and disclosed in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Our derivative financial instruments that are measured at fair value on a recurring basis are all measured at fair value using Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following represents a reconciliation of the changes in fair value of warrants measured at fair value using Level 3 inputs during the year ended December 31, 2017 : (in thousands) 2013 Placement Agent Warrants Balance, December 31, 2015 $ 267 Exercise of warrants (698 ) Change in fair value 634 Balance, December 31, 2016 203 Exercise of warrants (130 ) Change in fair value (53 ) Balance, December 31, 2017 $ 20 The warrants are valued using a trinomial lattice model. Significant assumptions used in the model at December 31, 2017 and 2016 , include the market price of our common stock, an expected dividend yield of zero , remaining life of 2.0 years and 2.5 years , historical volatility of 24.359% and 82.470% and risk-free rates of return of 1.798% and 1.470% , respectively. At December 31, 2017 and December 31, 2016 , the fair value of the remaining 40,000 placement agent warrants was approximately $20,000 and $203,000 , respectively.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	12 Months Ended
	Dec. 31, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The purpose of this ASU is to reduce the cost and complexity of evaluating goodwill for impairment. It eliminates the need for entities to calculate the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Under this ASU, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit's fair value. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted, however we have chosen not to do so. The amendment is not expected to have a material impact on our financial condition or results of operations. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments . The new guidance clarifies the classification of certain cash receipts and cash payments in the statement of cash flows, including debt prepayment or extinguishment costs, settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, however we have chosen not to do so. The amendment is not expected to have a material impact on our financial condition or results of operations. In March 2016, FASB issued ASU No. 2016-09 Compensation-Stock Compensation - (Topic 718) Improvements to employee share-based payments accounting as part of simplicity initiatives. This update involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For us, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendment has not made a material impact on our financial condition or results of operations. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) . The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2016-02 will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09 (ASC 606), Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU No. 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2018. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We performed an analysis and concluded that the amendment will not have a material impact on our financial condition or results of operations. ASU No. 2014-09 (ASC 606), Revenue from Contracts with Customers will become effective for us beginning with the first quarter of 2018, and we plan to adopt the new accounting standard using the modified retrospective transition approach. The modified retrospective transition approach will recognize any changes from the beginning of the year of initial application through retained earnings with no restatement of comparative periods. We will record revenue under ASC 606 at a single point in time, when control is transferred to the customer, which is consistent with past practice. We will continue to apply our current business processes, policies, systems and controls to support recognition and disclosure under the new standard. Based on the results of the evaluation, we have determined that the adoption of the new standard will have a material impact on our consolidated financial statements. Application of the transition requirements of the new standard will not have a material impact on opening retained earnings. No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our consolidated financial statements or disclosures.

LONG TERM DEBT

LONG TERM DEBT	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
LONG TERM DEBT	LONG TERM DEBT On June 28, 2016, the Company entered into a transaction with Bank of Tampa, a Florida banking corporation (“Lender”) wherein Lender amended the terms of a mortgage loan (“the Loan”) originally executed on March 20, 2014 with a principal amount of $3,592,000 . The Initial Maturity Date of the Loan was extended to July 20, 2019 from March 19, 2017, and the Extended Maturity Date was amended to July 20, 2024 from March 20, 2022. In addition, the Lender released as collateral to the Loan, the Company’s working capital accounts in exchange for a negative covenant limited to $2,000,000 of the aggregate indebtedness secured by these accounts. The obligations under the Loan are secured by a first mortgage and security interest in the Company’s Clearwater, Florida facility. In addition, the Company has pledged an interest in a certificate of deposit in the amount of $719,000 as additional collateral. The amount of the additional collateral required declines on a pro rata basis as principal is paid. Borrowings under the Loan bear interest at LIBOR plus 3.5% , with a fixed monthly principal payment of $19,956 . The interest rate at December 31, 2017 was 5.640% . The Loan documents contain customary financial covenants, including a covenant that the Company maintains a minimum liquidity of $750,000 . Should we desire to extend the Loan beyond July 20, 2019, we must maintain a Debt Service Coverage Ratio for each of the preceding four quarters of not less than 1.0 to 1.0 . Our future contractual obligations for agreements with initial terms greater than one year are as follows: (In thousands) Long-term debt 2018 $ 239 2019 2,455 Total $ 2,694

TAXES AND NET OPERATING LOSS CA

TAXES AND NET OPERATING LOSS CARRYFORWARDS	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
TAXES AND NET OPERATING LOSS CARYFORWARDS	TAXES AND NET OPERATING LOSS CARRYFORWARDS On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35% to 21% ; (2) bonus depreciation that will allow for full expensing of qualified property; (3) creating a new limitation on deductible interest expense; (4) eliminating the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (5) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017; and (6) limitations on the deductibility of certain executive compensation. The SEC issued guidance on accounting for the tax effects of the Tax Act. The Company must reflect the income tax effects of those aspects of the Tax Act for which the accounting is known. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements and the Tax Act provides a measurement period that should not extend beyond one year from the Tax Act enactment date. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply the tax laws that were in effect immediately before the enactment of the Tax Act. The corporate tax rate reduction was applied to our inventory of deferred tax liabilities, which resulted in the net tax benefit in the period ending December 31, 2017, of approximately $196,000 . Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. The tax effects of these temporary differences representing the components of deferred tax assets (liabilities) were as follows: (In thousands) December 31, December 31, Deferred tax assets: Loss and credit carry-forwards $ 7,722 $ 9,169 Stock-based compensation 549 519 Inventory Reserve 494 534 Other 178 263 Total deferred tax assets 8,943 10,485 Valuation allowance (8,756 ) (10,185 ) Total deferred tax assets, net of valuation allowance 187 300 Deferred tax liabilities: State taxes (capital) (17 ) (19 ) Property and equipment (294 ) (459 ) Intangibles (244 ) (386 ) Total deferred tax liabilities (555 ) (864 ) Net deferred tax liabilities $ (368 ) $ (564 ) We consider all positive and negative evidence regarding the realization of deferred tax assets, including past operating results and future sources of taxable income. U.S. net operating losses will begin to expire in years beginning in 2019. We assess the financial statement impact of an uncertain tax position taken or expected to be taken on an income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized in the financial statements unless it is more likely than not of being sustained. All of our positions arise from taxable temporary differences and, as such, the liability has been recognized in the net deferred tax asset, current and non-current items to which they relate. Below is a reconciliation of the statutory federal income tax rate to our effective tax rate: Year Ended December 31, 2017 2016 2015 Federal tax provision 34.0 % 34.0 % 34.0 % State taxes (net of federal benefit) 4.8 % 3.7 % 2.4 % Warrant gains 0.4 % 31.4 % (11.1 )% Valuation allowance 28.9 % (71.8 )% (26.3 )% Change in federal tax rate (71.2 )% — % — % Other 6.2 % 1.5 % 0.6 % 3.1 % (1.2 )% (0.4 )%

RETIREMENT PLAN

RETIREMENT PLAN	12 Months Ended
	Dec. 31, 2017
Retirement Benefits [Abstract]
RETIREMENT PLAN	RETIREMENT PLAN The Company provides a tax-qualified profit-sharing retirement plan under section 401(k) of the Internal Revenue Code for the benefit of eligible employees with an accumulation of funds for retirement on a tax-deferred basis and provides for annual discretionary contribution to individual trust funds. All employees are eligible to participate. The employees may make voluntary contributions to the plan up to the maximum percentage allowed by the Internal Revenue Code. Vesting in employee matching contributions is graded and depends on the years of service. After three years from their date of hire, the employees are 100% vested. The Company makes matching contributions of 50% of the employee contributions up to a total of 3% of participant payroll. Matching contributions made by the Company totaled $0.3 million , $0.3 million and $0.2 million for the years ended December 31, 2017 , 2016 and 2015 , respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS Research and Development Consulting Services Our policy is that employees, non-employees and third parties must obtain authorization from the appropriate department executive manager, for any business relationship or proposed business transaction in which they or an immediate family member has a direct or indirect interest, or from which they or an immediate family member may derive a personal benefit (a “related party transaction”). The maximum dollar amount of related party transactions that may be approved as described above in this paragraph in any calendar year is $120,000 . Any related party transactions that would bring the total value of such transactions to greater than $120,000 must be referred to the Audit Committee to determine the procedure for approval and then have the recommendations presented to the Board of Directors for approval. Several relatives of Nikolay Shilev, Bovie Bulgaria’s Managing Director, are considered related parties. Teodora Shileva, Mr. Shilev’s spouse is an employee of the company working in the Accounting department. Antoaneta Dimitrova Shileva-Toromanova, Mr. Shilev’s sister is the Manager of Production and Human Resources. Svetoslav Shilev, Mr. Shilev’s son is an Engineer in the Quality Assurance department. A relative of Moshe Citronowicz, Bovie’s Senior Vice President, is considered a related party. Arik Zoran is a consultant of the Company doing business as AR Logic, Inc., a consulting firm owned by Arik Zoran, Mr. Citronowicz’s brother. The Company has been working with AR Logic since 2011 and as of April 14, 2017, the Company agreed to a renewal contract and terms to continue the consulting arrangement, expiring December 31, 2017. AR Logic was paid consulting fees of approximately $0.2 million , $0.2 million and $0.3 million during 2017 , 2016 and 2015 , respectively.

OTHER COMMITMENTS AND CONTINGEN

OTHER COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
OTHER COMMITMENTS AND CONTINGENCIES	OTHER COMMITMENTS AND CONTINGENCIES Property and Rental Agreements In March 2014, we signed a lease for offices located in Purchase, New York. The lease is for 3,650 square feet of office space with a monthly cost of approximately $9,277 per month. We decided to consolidate operations in the Purchase, NY office with the facility in Clearwater. Based on this, we determined the office in Purchase, NY was no longer necessary and decided to cease all activity at the location. The remaining lease of approximately $175,000 , has been expensed in 2017, included as part of severance and related expense and will be operational cash outflows during 2018 and 2019. In October 2015, pursuant to our acquisition of Bovie Bulgaria, we are obligated to pay a lease of $5,424 per month, expiring in December 2021, for 18,745 square feet of office, research and manufacturing space in Sofia, Bulgaria. The following is a schedule of approximate future minimum lease payments under operating leases as of December 31, 2017 : (In thousands) 2018 $ 74 2019 74 2020 74 2021 74 Total $ 296 Litigation The medical device industry is characterized by frequent claims and litigation, and we are and may become subject to various claims, lawsuits and proceedings in the ordinary course of our business, including claims by current or former employees, distributors and competitors, and with respect to our products and product liability claims, lawsuits and proceedings. We are involved in a number of legal actions relating to the use of our J-Plasma technology. The outcomes of these legal actions are not within our complete control and may not be known for prolonged periods of time. In the opinion of management, the Company has meritorious defenses, and such claims are adequately covered by insurance, or are not expected, individually or in the aggregate, to result in a material, adverse effect on our financial condition. However, in the event that damages exceed the aggregate coverage limits of our policy or if our insurance carriers disclaim coverage, we believe it is possible that costs associated with these claims could have a material adverse impact on our consolidated earnings, financial position or cash flows. Purchase Commitments At December 31, 2017 , we had purchase commitments for inventories totaling approximately $4.3 million , substantially all of which is expected to be purchased by the end of 2018 . Severance Jack McCarthy, the Chief Commercialization Officer, was terminated without cause from his position with the Company effective November 6, 2017. Severance costs incurred included salary, option expense and other benefits of approximately $582,000 , of which approximately $397,000 will be operational cash outflows during 2018. Robert L. Gershon, the Chief Executive Officer and a director, resigned from all of his positions with the Company effective December 15, 2017. In connection with this departure, the Company and Mr. Gershon entered into a separation agreement, dated December 15, 2017. Severance costs incurred included salary, option expense and other benefits of approximately $767,000 , of which approximately $670,000 will be operational cash outflows during 2018.

STOCK OPTIONS

STOCK OPTIONS	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK OPTIONS	STOCK OPTIONS On October 30, 2007, our stockholders approved and the Board of Directors adopted an amendment to the 2003 Executive and Employee Stock Option Plan (the “Plan”) to increase the maximum aggregate number of shares of common stock reserved for issuance under the Plan from 1.2 million shares (already reserved against outstanding options) to 1.7 million shares. Except for the increase in the number of shares covered by the Plan, the Plan remained otherwise unchanged. In 2001, the Board of Directors adopted the 2001 Executive and Employee Stock Option Plan which reserved for issuance 1.2 million stock options. Stock options typically have a ten -year life and currently vest over a seven year period. In July of 2012, the stockholders approved the 2012 Share Incentive Plan covering a total of 750,000 shares of common stock issuable upon exercise of options to be granted under the plan. At December 31, 2017 approximately 37,000 remain to be issued in this plan. In July of 2015, the stockholders approved the 2015 Executive and Employee Stock Option Plan covering a total of 2,000,000 shares of common stock issuable upon exercise of options to be granted under the plan. At December 31, 2017 approximately 343,578 remain to be issued in this plan. In August of 2017, the stockholders approved the 2017 Executive and Employee Stock Option Plan covering a total of 3,000,000 shares of common stock issuable upon exercise of options to be granted under the plan. At December 31, 2017 approximately 1,900,000 remain to be issued in this plan. The status of our stock options and stock awards are summarized as follows: Number of options Weighted average exercise price Outstanding at December 31, 2015 3,131,447 $ 3.38 Granted 810,762 1.87 Exercised (36,250 ) 3.62 Canceled and forfeited (153,750 ) 3.69 Outstanding at December 31, 2016 3,752,209 $ 3.04 Granted 1,728,000 3.09 Exercised (176,750 ) 2.41 Canceled and forfeited (443,302 ) 3.95 Outstanding at December 31, 2017 4,860,157 $ 3.00 Exercisable at December 31, 2017 2,627,722 $ 3.46 Number of options Weighted average grant date fair value Non-vested at December 31, 2016 1,745,506 $ 1.25 Granted 1,728,000 1.82 Vested (797,769 ) 1.01 Forfeited (443,302 ) 1.95 Non-vested at December 31, 2017 2,232,435 1.40 Common shares required to be issued upon the exercise of stock options and warrants would be issued from our authorized and unissued shares. We calculated the fair value of issued options utilizing a trinomial lattice with an expected life calculated via the simplified method as we do not have sufficient history to determine actual expected life. 2017 Grants 2016 Grants 2015 Grants Option value $1.73 - $2.34 $0.80 - $0.91 $0.90 - $1.84 Risk-free rate 1.5% - 1.9% 1.5% - 1.8% 0.2% 1.6% Expected dividend yield —% —% —% Expected volatility 62.1% - 68.0% 49.5% - 50.3% 53.0% - 54.0% Expected term (in years) 6 6 6 As of December 31, 2017 , the aggregate intrinsic value of all stock options outstanding and expected to vest was approximately $1,306,791 and the aggregate intrinsic value of currently exercisable stock options was approximately $768,706 . The intrinsic value of each option share is the difference between the fair market value of our common stock and the exercise price of such option share to the extent it is “in-the-money”. Aggregate intrinsic value represents the value that would have been received by the holders of in-the-money options had they exercised their options on the last trading day of the year and sold the underlying shares at the closing stock price on such day. The intrinsic value calculation is based on the $2.60 closing stock price of our common stock on December 31, 2017 , the last trading day of 2017 . The total number of in-the-money options outstanding and exercisable as of December 31, 2017 was approximately 2,318,887 . As of December 31, 2016 , the aggregate intrinsic value of all stock options outstanding and expected to vest was approximately $4,150,334 and the aggregate intrinsic value of currently exercisable stock options was approximately $1,574,318 . The intrinsic value calculation is based on the $3.59 closing stock price of our common stock on December 31, 2016 , the last trading day of 2016 . The total number of in-the-money options outstanding and exercisable as of December 31, 2016 was approximately 1,211,014 . The total intrinsic value of options exercised during the years ended December 31, 2017 , 2016 and 2015 was approximately $223,340 , $119,026 and $51,575 , respectively. Intrinsic value of exercised shares is the total value of such shares on the date of exercise less the cash received from the option holder to exercise the options. The total cash proceeds received from the exercise of stock options was approximately $0 and $12,300 and $209,250 for the years ended December 31, 2017 , 2016 and 2015 , respectively. The total fair value of options granted during the years ended December 31, 2017 , 2016 and 2015 was approximately $3,144,960 , $1,516,125 and $932,771 , respectively. The total fair value of option shares vested during the years ended December 31, 2017 , 2016 and 2015 , was approximately $805,748 , $612,464 and $412,638 , respectively. During the year ended December 31, 2017 , we issued 47,372 common shares in exchange for 176,750 non-employee stock options and 129,378 common shares (via stock swaps). During the year ended December 31, 2016 , we issued 9,614 common shares in exchange for 36,250 non-employee stock options and 26,636 common shares (via stock swaps). Net proceeds from the issuance of common shares along with the shares received in the stock swap exercises were approximately $12,300 for the year ended December 31, 2016 . During the year ended December 31, 2015 , we issued 33,520 common shares in exchange for 114,500 employee and non-employee stock options and 80,980 common shares (via stock swaps). As of December 31, 2017 , there was approximately $3.0 million of total unrecognized stock-based compensation cost, related to unvested stock options granted under the Amended Plan. This cost is expected to be recognized over a weighted-average period of approximately 4 years. Allocation of stock based compensation expense was as follows: Year Ended December 31, (In thousands) 2017 2016 2015 Cost of sales $ — $ 2 $ 3 Research and development 27 27 39 Salaries and related costs 844 780 526 Total $ 871 $ 809 $ 568

GEOGRAPHIC AND SEGMENT INFORMAT

GEOGRAPHIC AND SEGMENT INFORMATION	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
GEOGRAPHIC AND SEGMENT INFORMATION	GEOGRAPHIC AND SEGMENT INFORMATION Operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics. In addition to similar economic characteristics we also consider the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to our chief operating decision maker for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors. Prior to the first quarter of 2017, we disclosed only one reporting segment. Beginning in 2017, our reportable segments are disclosed as principally organized and managed as three operating segments: Core, OEM and Advanced Energy. We adopted reportable segments to align with changes in how we manage our business, review operating performance and allocate resources as a result of the growth in Advanced Energy and the differing behavior of the Core and OEM product lines. The Corporate & Other category includes certain unallocated corporate, operational, research and development and marketing costs which were not specifically attributed to any reportable segment. Net assets are shared, therefore, not allocated to the reportable segments. The OEM segment is primarily development contract and product driven, all related expenses are recorded as cost of sales, therefore no segment specific operating expenses are incurred. Summarized financial information with respect to reportable segments is as follows: Year ended December 31, 2017 (In thousands) Core OEM Advanced Energy Corporate (Other) Total Sales $ 28,649 $ 2,598 $ 7,636 $ — $ 38,883 Income (loss) from operations 8,620 1,353 (3,957 ) (11,281 ) (5,265 ) Severance and related expense — — — 1,524 1,524 Interest expense, net — — — (136 ) (136 ) Change in fair value of derivative liabilities — — — 183 183 Income tax benefit — — — (156 ) (156 ) Depreciation and amortization — — — 696 696 Year ended December 31, 2016 (In thousands) Core OEM Advanced Energy Corporate (Other) Total Sales $ 27,808 $ 5,328 $ 3,491 $ — $ 36,627 Income (loss) from operations 7,600 3,045 (4,812 ) (9,625 ) (3,792 ) Severance and related expense — — — — — Interest expense, net — — — (158 ) (158 ) Change in fair value of derivative liabilities — — — 64 64 Income tax expense — — — 64 64 Depreciation and amortization — — — 734 734 Year ended December 31, 2015 (In thousands) Core OEM Advanced Energy Corporate (Other) Total Sales $ 26,098 $ 2,116 $ 1,306 $ — $ 29,520 Income (loss) from operations 5,690 1,524 (4,688 ) (9,512 ) (6,986 ) Severance and related expense — — — — — Interest expense, net — — — (158 ) (158 ) Change in fair value of derivative liabilities — — — 1,799 1,799 Income tax expense — — — 25 25 Depreciation and amortization — — — 812 812 We derive revenues from four major product lines: Electrosurgical, Cauteries, Lighting and Other products. We do not review or analyze our four major product lines below net sales. Sales for the product lines are summarized as follows: Year Ended December 31, (In thousands) 2017 2016 2015 Sales by Product Line Electrosurgical $ 25,727 $ 20,901 $ 17,558 Cauteries 7,141 7,101 6,886 Lighting 2,435 2,710 2,477 Other 3,580 5,915 2,599 Total $ 38,883 $ 36,627 $ 29,520 International sales in 2017 , 2016 and 2015 were 14.8% , 12.5% and 16.9% of sales, respectively. Substantially all of these sales are denominated in U.S. dollars. Revenue by geographic region, based on the "ship to" location on the invoice are as follows: Year Ended December 31, (In thousands) 2017 2016 2015 Sales by Domestic and International Domestic $ 33,147 $ 32,050 $ 24,540 International 5,736 4,577 4,980 Total $ 38,883 $ 36,627 $ 29,520

SUPPLEMENTAL UNAUDITED QUARTERL

SUPPLEMENTAL UNAUDITED QUARTERLY FINANCIAL INFORMATION	12 Months Ended
	Dec. 31, 2017
Selected Quarterly Financial Information [Abstract]
SELECTED UNAUDITED QUARTERLY FINANCIAL INFORMATION	SUPPLEMENTAL UNAUDITED QUARTERLY FINANCIAL INFORMATION The following table sets forth certain unaudited quarterly data for each of the four quarters in the years ended December 31, 2017 and 2016 , respectively. The data has been derived from the Company’s unaudited consolidated financial statements that, in management’s opinion, include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of such information when read in conjunction with the Consolidated Financial Statements and Notes thereto. The results of operations for any quarter are not necessarily indicative of the results of operations for any future period. (In thousands, except per share data) First Second Third Fourth Year ended December 31, 2017 Sales $ 8,389 $ 9,799 $ 9,347 $ 11,348 Gross profit 4,226 5,042 4,594 5,899 Net loss attributable to common shareholders (1,685 ) (1,308 ) (1,245 ) (824 )* Basic loss per common share $ (0.05 ) $ (0.04 ) $ (0.04 ) $ (0.03 ) Year ended December 31, 2016 Sales $ 7,775 $ 9,295 $ 10,063 $ 9,494 Gross profit 3,323 4,700 5,062 4,830 Net loss attributable to common shareholders (1,944 ) (519 ) (964 ) (523 ) Basic loss per common share $ (0.07 ) $ (0.02 ) $ (0.04 ) $ (0.02 ) *Fourth quarter 2017 period includes approximately $1.5 million of non-recurring severance and expenses related to former members of the Company’s executive management team and related closure of the corporate office in Purchase, New York.

SIGNIFICANT ACCOUNTING POLICI25

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidated Financial Statements	The accompanying consolidated financial statements include the accounts of Bovie and its wholly owned subsidiaries, Aaron Medical Industries, Inc., Bovie Bulgaria, EOOD, BVX Holdings LLC and Bovie Holdings, Inc., (collectively, the “Company” or “we”, “our” or “us”). All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates in the Preparation of Financial Statements	The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. The reported amounts of revenues and expenses during the reporting period may be affected by the estimates and assumptions we are required to make.
Cash and Cash Equivalents	Holdings of highly liquid investments with original maturities of three months or less are considered to be cash equivalents.
Fair Values of Financial Instruments and Concentration of Credit Risk	The carrying amounts of our financial instruments included in current assets and liabilities approximate fair value due to their short term nature. In addition, we believe the book values of our mortgage payable and capital lease payable approximates their fair values as the terms of such obligations approximate the terms at which similar types of borrowing arrangements could be currently obtained. Financial instruments, which potentially subject us to significant concentrations of credit risk, consist primarily of cash and cash equivalents and trade accounts receivable. With respect to cash, we frequently maintain cash and cash equivalent balances in excess of federally insured limits. We have not experienced any losses in such accounts.
Derivative Financial Instruments	We generally do not use derivative financial instruments to hedge exposures to cash-flow risks or market risks. However, certain financial instruments, such as warrants, which are indexed to our common stock, are classified as liabilities when either (a) the holder possesses rights to net-cash settlement or (b) physical or net-share settlement is not within our control. In such instances, net-cash settlement is assumed for financial accounting and reporting purposes, even if the terms of the underlying contracts do not always provide for net-cash settlement. Such financial instruments are initially recorded and continuously carried, at fair value. Determining the fair value of these instruments involves judgment and the use of certain relevant assumptions including, but not limited to, interest rate risk, historical volatility and stock price, estimated life of the derivative, anti-dilution provisions and conversion/redemption privileges. The use of different assumptions or changes in those assumptions could have a material effect on the estimated fair value amounts.
Accounts Receivable and Allowance for Doubtful Accounts	Our credit terms for our billings range from net 10 days to net 60 days, depending on the customer agreement. Accounts receivable are determined to be past due if payments are not made in accordance with such agreements and an allowance is generally recorded for accounts that become three months past due, or sooner if there are other indicators that the receivables may not be recovered. Customary collection efforts are initiated and receivables are written off when we determine they are not collectible and abandon these collection efforts. We gave negotiated sales volume discounts, which amounted to approximately $0.5 million , $0.6 million and $0.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Sales are reported net of all discounts. We evaluate the allowance for doubtful accounts on a regular basis for adequacy based upon our periodic review of the collectability of the receivables in light of historical experience, adverse situations that may affect our customers’ ability to pay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. Management believes that the allowances for doubtful accounts of approximately $0.2 million and $0.1 million at December 31, 2017 and 2016 , respectively, are, or were, adequate to provide for possible bad debts.
Inventories and Repair Parts	Inventories are stated at the lower of cost or market. Cost is determined on a first in, first out basis. Finished goods and work-in-process inventories include material, labor and overhead costs. Factory overhead costs are allocated to inventory manufactured in-house based upon labor hours. We monitor usage reports to determine if the carrying value of any items should be adjusted due to lack of demand for the item and adjust the inventory for estimated obsolescence or unusable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required.
Property and Equipment	Property and equipment are recorded at cost. Depreciation and amortization are provided for using the straight-line method over the estimated useful lives of the assets. The amortization of leasehold improvements is based on the shorter of the lease term or the life of the improvement. Betterments and large improvements, which extend the life of the asset, are capitalized, whereas maintenance and repairs and small improvements are expensed as incurred. The estimated useful lives are: machinery and equipment, 3 - 10 years; buildings, 39 years; molds, 7 - 15 years and furniture and fixtures, 5 - 10 years.
Intangible Assets	Intangible assets consist of licenses, purchased technology and brand name and trademarks. The licenses and purchased technology are being amortized by the straight-line method over a 5 - 17 year period commencing with the date they were placed in service. Brand name and trademark qualifies as an indefinite-lived intangible asset and is not subject to amortization. Intangibles with indefinite lives are analyzed for impairment annually or more frequently if events and circumstances indicate that the asset may be impaired. If impaired, an impairment loss is recognized in an amount equal to the excess of the asset’s carrying value over its fair value. Management concluded that the assigned value at December 31, 2017 of approximately $1.5 million was not impaired and is reasonable.
Valuation of Long-Lived Assets	We review long-lived assets for recoverability if events or changes in circumstances indicate that the assets may have been impaired. This circumstance exists when the carrying amount of the asset exceeds the sum of the undiscounted cash flows expected to result from its use and eventual disposition. In those cases an impairment loss is recognized to the extent that the assets’ carrying amount exceeds its fair value. Any impairment losses are not restored in the future if the fair value increases. At December 31, 2017 , we believe the remaining carrying values of our long-lived assets are recoverable.
Revenue Recognition	Revenue is recognized when title has been transferred to the customer, which is generally at the time of shipment or receipt by customer for FOB destination terms. The following policies apply to our major categories of revenue transactions: • The majority of our sales to customers are evidenced by firm purchase orders. Generally, title and the risks and rewards of ownership are transferred to the customer when the product is shipped. Payment by the customer is due under fixed payment terms. • Product returns are only accepted at our discretion and in accordance with our “Returned Goods Policy”. Historically, the level of product returns has not been significant. We accrue for sales returns, rebates and allowances based upon an analysis of historical customer returns and credits, rebates, discounts and current market conditions. • Our terms of sale to customers generally do not include any obligations to perform future services. Limited warranties are generally provided for sales and provisions for warranty are provided at the time of product sale based upon an analysis of historical data. • Amounts billed to customers related to shipping and handling charges are included in sales.
Advertising Costs	All advertising costs are expensed as incurred.
Stock-Based Compensation	We account for stock-based compensation in accordance with FASB ASC Topic 718, Compensation-Stock Compensation . FASB ASC 718 requires recognizing compensation costs for all share-based payment awards made to employees and directors based upon the awards’ grant date fair value. The standard covers employee stock options, restricted stock and other equity awards. For stock options, we use a trinomial lattice option-pricing model to estimate the grant date fair value of stock option awards and recognize compensation cost on a straight-line basis over the awards’ vesting periods.
Litigation Contingencies	In accordance with authoritative guidance, we record a liability in our consolidated financial statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible, but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the consolidated financial statements. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded.
Tax Effects of Stock-Based Compensation	We will only recognize a tax benefit from windfall tax deductions for stock-based awards in additional paid-in capital if an incremental tax benefit is realized after all other tax attributes currently available have been utilized.
Net (Loss) Earnings Per Common Share	We compute basic (loss) earnings attributable to common shareholders per share by dividing net (loss) income attributable to common shareholders by the weighted average number of common shares outstanding for the reporting period. Diluted (loss) earnings per share attributable to common shareholders gives effect to all potential dilutive shares outstanding during the period. The number of dilutive shares is calculated using the treasury method which reduces the effective number of shares by the amount of shares we could purchase with the proceeds of assumed exercises.
Research and Development Costs	With the exception of development costs that are purchased from another enterprise and have alternative future use, research and development expenses are charged to operations as incurred.
Research and Development Costs for Others	For research and development activities that are partially or completely funded by other parties and when the obligation is incurred solely to perform contractual services, expenses are charged to cost of sales and all revenues resulting from such activities are shown as sales.
Income Taxes	We utilize the liability method of accounting for income taxes as set forth in FASB ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. Management evaluated the positive and negative evidence in determining the realizability of the net deferred tax asset. In determining the need for valuation allowance, we reviewed historic operating results, updated 2017 actual results, as well as future income forecasts based on the projections, management concluded that it was not more likely that the Company should realize its net deferred tax assets through future operating results and the reversal of taxable temporary differences. If in the future we determine that we will be able to realize any of the net deferred tax assets, we will make adjustment to the valuation allowance, which would increase our income in the period that the determination is made. We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available as of the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, we have recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements.
Recent Accounting Pronouncements	In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The purpose of this ASU is to reduce the cost and complexity of evaluating goodwill for impairment. It eliminates the need for entities to calculate the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Under this ASU, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit's fair value. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted, however we have chosen not to do so. The amendment is not expected to have a material impact on our financial condition or results of operations. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments . The new guidance clarifies the classification of certain cash receipts and cash payments in the statement of cash flows, including debt prepayment or extinguishment costs, settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, however we have chosen not to do so. The amendment is not expected to have a material impact on our financial condition or results of operations. In March 2016, FASB issued ASU No. 2016-09 Compensation-Stock Compensation - (Topic 718) Improvements to employee share-based payments accounting as part of simplicity initiatives. This update involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For us, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendment has not made a material impact on our financial condition or results of operations. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) . The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2016-02 will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09 (ASC 606), Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU No. 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2018. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We performed an analysis and concluded that the amendment will not have a material impact on our financial condition or results of operations. ASU No. 2014-09 (ASC 606), Revenue from Contracts with Customers will become effective for us beginning with the first quarter of 2018, and we plan to adopt the new accounting standard using the modified retrospective transition approach. The modified retrospective transition approach will recognize any changes from the beginning of the year of initial application through retained earnings with no restatement of comparative periods. We will record revenue under ASC 606 at a single point in time, when control is transferred to the customer, which is consistent with past practice. We will continue to apply our current business processes, policies, systems and controls to support recognition and disclosure under the new standard. Based on the results of the evaluation, we have determined that the adoption of the new standard will have a material impact on our consolidated financial statements. Application of the transition requirements of the new standard will not have a material impact on opening retained earnings. No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our consolidated financial statements or disclosures.

SIGNIFICANT ACCOUNTING POLICI26

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of inventory	Inventories consisted of the following: (In thousands) December 31, December 31, Raw materials $ 5,163 $ 4,521 Finished goods 3,276 3,048 Gross inventories 8,439 7,569 Less: reserve for obsolescence (1,913 ) (1,411 ) Inventories, net $ 6,526 $ 6,158

ACQUISITION OF BOVIE BULGARIA (

ACQUISITION OF BOVIE BULGARIA (Tables)	12 Months Ended
	Dec. 31, 2017
Business Combinations [Abstract]
Fair value of the assets acquired and liabilities	The table below summarizes the preliminary purchase price and the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date of October 20, 2015: (In thousands) Cash and cash equivalents $ 59 Inventories, net 285 Prepaid expenses and other current assets 1 Property and equipment, net 167 Goodwill 185 Deferred income tax assets, net 25 Deposits, net of current portion 8 Accounts payable (150 ) Accrued and other liabilities (21 ) Value of consideration paid $ 559

TRADE ACCOUNTS RECEIVABLE (Tabl

TRADE ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2017
Receivables [Abstract]
Trade accounts receivable	Trade accounts receivable consisted of the following: (In thousands) December 31, December 31, Trade accounts receivable $ 5,061 $ 4,851 Less: allowance for doubtful accounts (204 ) (118 ) Trade accounts receivable, net 4,857 4,733

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Property, plant and equipment	Property, plant and equipment consisted of the following: (In thousands) December 31, December 31, Land $ 1,600 $ 1,600 Machinery and equipment 3,231 3,775 Building and improvements 4,512 4,237 Furniture and fixtures 1,947 2,194 Leasehold improvements — 12 Molds 1,829 1,900 Total property, plant and equipment 13,119 13,718 Less: accumulated depreciation (6,711 ) (7,269 ) Net property, plant and equipment $ 6,408 $ 6,449

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	Intangible assets consisted of the following: (In thousands) December 31, December 31, Brand name and trademark (life indefinite) $ 1,510 $ 1,510 Purchased technology (5-17 year lives) $ 1,513 $ 1,441 Less: accumulated amortization (1,334 ) (1,226 ) Purchased technology, net $ 179 $ 215 Goodwill $ 185 $ 185

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Basic and diluted earnings per share	The following table provides the computation of basic and diluted earnings per share. Year Ended December 31, (in thousands, except per share data) 2017 2016 2015 Numerator: Net (loss) income available to common shareholders $ (5,062 ) $ (3,950 ) $ 8,364 Effect of dilutive securities: Derivative liability - warrants (183 ) (64 ) (1,799 ) Accretion on convertible preferred stock — — 222 Numerator for dilutive (loss) income per common share (5,245 ) (4,014 ) 6,787 Denominator: Weighted average shares used to compute basic (loss) income 31,420 27,433 24,333 Effect of dilutive securities: Derivative liability - warrants 7 16 28 Convertible preferred stock — — 3,137 Stock options — — 249 Denominator for dilutive (loss) income per common share 31,427 27,449 27,747 Basic (loss) income per common share $ (0.16 ) $ (0.14 ) $ 0.34 Diluted (loss) income per common share $ (0.17 ) $ (0.15 ) $ 0.24

CONVERTIBLE PREFERRED STOCK A32

CONVERTIBLE PREFERRED STOCK AND WARRANTS (Tables)	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Reconciliation of changes in fair value	The following represents a reconciliation of the changes in fair value of warrants measured at fair value using Level 3 inputs during the year ended December 31, 2017 : (in thousands) 2013 Placement Agent Warrants Balance, December 31, 2015 $ 267 Exercise of warrants (698 ) Change in fair value 634 Balance, December 31, 2016 203 Exercise of warrants (130 ) Change in fair value (53 ) Balance, December 31, 2017 $ 20

LONG TERM DEBT (Tables)

LONG TERM DEBT (Tables)	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Summary of long-term debt	Our future contractual obligations for agreements with initial terms greater than one year are as follows: (In thousands) Long-term debt 2018 $ 239 2019 2,455 Total $ 2,694

TAXES AND NET OPERATING LOSS 34

TAXES AND NET OPERATING LOSS CARRYFORWARDS (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Deferred tax assets (liabilities)	The tax effects of these temporary differences representing the components of deferred tax assets (liabilities) were as follows: (In thousands) December 31, December 31, Deferred tax assets: Loss and credit carry-forwards $ 7,722 $ 9,169 Stock-based compensation 549 519 Inventory Reserve 494 534 Other 178 263 Total deferred tax assets 8,943 10,485 Valuation allowance (8,756 ) (10,185 ) Total deferred tax assets, net of valuation allowance 187 300 Deferred tax liabilities: State taxes (capital) (17 ) (19 ) Property and equipment (294 ) (459 ) Intangibles (244 ) (386 ) Total deferred tax liabilities (555 ) (864 ) Net deferred tax liabilities $ (368 ) $ (564 )
Statutory federal income tax rate	Below is a reconciliation of the statutory federal income tax rate to our effective tax rate: Year Ended December 31, 2017 2016 2015 Federal tax provision 34.0 % 34.0 % 34.0 % State taxes (net of federal benefit) 4.8 % 3.7 % 2.4 % Warrant gains 0.4 % 31.4 % (11.1 )% Valuation allowance 28.9 % (71.8 )% (26.3 )% Change in federal tax rate (71.2 )% — % — % Other 6.2 % 1.5 % 0.6 % 3.1 % (1.2 )% (0.4 )%

OTHER COMMITMENTS AND CONTING35

OTHER COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Future minimum lease payments under operating leases	The following is a schedule of approximate future minimum lease payments under operating leases as of December 31, 2017 : (In thousands) 2018 $ 74 2019 74 2020 74 2021 74 Total $ 296

STOCK OPTIONS (Tables)

STOCK OPTIONS (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of stock options and stock awards	The status of our stock options and stock awards are summarized as follows: Number of options Weighted average exercise price Outstanding at December 31, 2015 3,131,447 $ 3.38 Granted 810,762 1.87 Exercised (36,250 ) 3.62 Canceled and forfeited (153,750 ) 3.69 Outstanding at December 31, 2016 3,752,209 $ 3.04 Granted 1,728,000 3.09 Exercised (176,750 ) 2.41 Canceled and forfeited (443,302 ) 3.95 Outstanding at December 31, 2017 4,860,157 $ 3.00 Exercisable at December 31, 2017 2,627,722 $ 3.46
Number of weighted average grant-date fair values of options	Number of options Weighted average grant date fair value Non-vested at December 31, 2016 1,745,506 $ 1.25 Granted 1,728,000 1.82 Vested (797,769 ) 1.01 Forfeited (443,302 ) 1.95 Non-vested at December 31, 2017 2,232,435 1.40
Schedule of option fair value assumptions	2017 Grants 2016 Grants 2015 Grants Option value $1.73 - $2.34 $0.80 - $0.91 $0.90 - $1.84 Risk-free rate 1.5% - 1.9% 1.5% - 1.8% 0.2% 1.6% Expected dividend yield —% —% —% Expected volatility 62.1% - 68.0% 49.5% - 50.3% 53.0% - 54.0% Expected term (in years) 6 6 6
Allocation of stock based compensation	Allocation of stock based compensation expense was as follows: Year Ended December 31, (In thousands) 2017 2016 2015 Cost of sales $ — $ 2 $ 3 Research and development 27 27 39 Salaries and related costs 844 780 526 Total $ 871 $ 809 $ 568

GEOGRAPHIC AND SEGMENT INFORM37

GEOGRAPHIC AND SEGMENT INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Schedule of reporting information by segment	Summarized financial information with respect to reportable segments is as follows: Year ended December 31, 2017 (In thousands) Core OEM Advanced Energy Corporate (Other) Total Sales $ 28,649 $ 2,598 $ 7,636 $ — $ 38,883 Income (loss) from operations 8,620 1,353 (3,957 ) (11,281 ) (5,265 ) Severance and related expense — — — 1,524 1,524 Interest expense, net — — — (136 ) (136 ) Change in fair value of derivative liabilities — — — 183 183 Income tax benefit — — — (156 ) (156 ) Depreciation and amortization — — — 696 696 Year ended December 31, 2016 (In thousands) Core OEM Advanced Energy Corporate (Other) Total Sales $ 27,808 $ 5,328 $ 3,491 $ — $ 36,627 Income (loss) from operations 7,600 3,045 (4,812 ) (9,625 ) (3,792 ) Severance and related expense — — — — — Interest expense, net — — — (158 ) (158 ) Change in fair value of derivative liabilities — — — 64 64 Income tax expense — — — 64 64 Depreciation and amortization — — — 734 734 Year ended December 31, 2015 (In thousands) Core OEM Advanced Energy Corporate (Other) Total Sales $ 26,098 $ 2,116 $ 1,306 $ — $ 29,520 Income (loss) from operations 5,690 1,524 (4,688 ) (9,512 ) (6,986 ) Severance and related expense — — — — — Interest expense, net — — — (158 ) (158 ) Change in fair value of derivative liabilities — — — 1,799 1,799 Income tax expense — — — 25 25 Depreciation and amortization — — — 812 812
Schedule of revenue by product line	Sales for the product lines are summarized as follows: Year Ended December 31, (In thousands) 2017 2016 2015 Sales by Product Line Electrosurgical $ 25,727 $ 20,901 $ 17,558 Cauteries 7,141 7,101 6,886 Lighting 2,435 2,710 2,477 Other 3,580 5,915 2,599 Total $ 38,883 $ 36,627 $ 29,520
Schedule of revenue by geographic area	Revenue by geographic region, based on the "ship to" location on the invoice are as follows: Year Ended December 31, (In thousands) 2017 2016 2015 Sales by Domestic and International Domestic $ 33,147 $ 32,050 $ 24,540 International 5,736 4,577 4,980 Total $ 38,883 $ 36,627 $ 29,520

SUPPLEMENTAL UNAUDITED QUARTE38

SUPPLEMENTAL UNAUDITED QUARTERLY FINANCIAL INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2017
Selected Quarterly Financial Information [Abstract]
Schedule of quarterly information	The results of operations for any quarter are not necessarily indicative of the results of operations for any future period. (In thousands, except per share data) First Second Third Fourth Year ended December 31, 2017 Sales $ 8,389 $ 9,799 $ 9,347 $ 11,348 Gross profit 4,226 5,042 4,594 5,899 Net loss attributable to common shareholders (1,685 ) (1,308 ) (1,245 ) (824 )* Basic loss per common share $ (0.05 ) $ (0.04 ) $ (0.04 ) $ (0.03 ) Year ended December 31, 2016 Sales $ 7,775 $ 9,295 $ 10,063 $ 9,494 Gross profit 3,323 4,700 5,062 4,830 Net loss attributable to common shareholders (1,944 ) (519 ) (964 ) (523 ) Basic loss per common share $ (0.07 ) $ (0.02 ) $ (0.04 ) $ (0.02 )

SIGNIFICANT ACCOUNTING POLICI39

SIGNIFICANT ACCOUNTING POLICIES - NARRATIVE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Credit terms, billing term, lower limit	10 days
Credit terms, billing term, upper limit	60 days
Sales volume discounts	$ 500	$ 600	$ 300
Allowances for doubtful accounts	204	118
Revenue, Major Customer [Line Items]
Changes in excess and obsolete inventory	500	200	200
Brand name and trademark	1,510	1,510
Shipping and handling costs	200	200	100
Advertising Expense	600	700	500
Research and development costs	$ 2,455	$ 2,618	$ 2,160
Customer concentration risk
Revenue, Major Customer [Line Items]
Concentration risk, customer	ten
Trade receivable | Customer concentration risk | 10 largest customers
Revenue, Major Customer [Line Items]
Concentration receivable risk (as a percent)	44.00%	42.90%
Net Revenue | Customer concentration risk | 10 largest customers
Revenue, Major Customer [Line Items]
Concentration receivable risk (as a percent)	48.30%	54.40%	58.30%
Net Revenue | Customer concentration risk | National Distribution & Contracting Inc.
Revenue, Major Customer [Line Items]
Concentration receivable risk (as a percent)	9.20%	9.80%	13.30%
Net Revenue | Customer concentration risk | McKesson
Revenue, Major Customer [Line Items]
Concentration receivable risk (as a percent)	15.70%	15.90%	18.60%

SIGNIFICANT ACCOUNTING POLICI40

SIGNIFICANT ACCOUNTING POLICIES - SUMMARY OF INVENTORY (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 5,163	$ 4,521
Finished goods	3,276	3,048
Gross inventories	8,439	7,569
Less: reserve for obsolescence	(1,913)	(1,411)
Inventories, net	$ 6,526	$ 6,158

SIGNIFICANT ACCOUNTING POLICI41

SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Details)	12 Months Ended
	Dec. 31, 2017
Minimum | Purchased Technology
Property, Plant and Equipment [Line Items]
Intangible asset, useful life (in years)	5 years
Maximum | Purchased Technology
Property, Plant and Equipment [Line Items]
Intangible asset, useful life (in years)	17 years
Machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
PP&E useful lives (in years)	3 years
Machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
PP&E useful lives (in years)	10 years
Building and improvements
Property, Plant and Equipment [Line Items]
PP&E useful lives (in years)	39 years
Molds | Minimum
Property, Plant and Equipment [Line Items]
PP&E useful lives (in years)	7 years
Molds | Maximum
Property, Plant and Equipment [Line Items]
PP&E useful lives (in years)	15 years
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
PP&E useful lives (in years)	5 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
PP&E useful lives (in years)	10 years

ACQUISITION OF BOVIE BULGARIA42

ACQUISITION OF BOVIE BULGARIA (Details) - USD ($)	Oct. 20, 2015	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Granted restricted stock (in years)		7 years
Purchase price allocation
Goodwill		$ 185,000	$ 185,000
Bovie Bulgaria
Business Acquisition [Line Items]
Consideration payable	$ 559,000
Consideration payable during first 3 business days	419,000
Consideration payable during first 5 years	140,000
Purchase price allocation
Cash and cash equivalents	59,000
Inventories, net	285,000
Prepaid expenses and other current assets	1,000
Property and equipment, net	167,000
Goodwill	185,000
Deferred income tax assets, net	25,000
Deposits, net of current portion	8,000
Accounts payable	(150,000)
Accrued and other liabilities	(21,000)
Consideration payable	$ 559,000
Bovie Bulgaria | Mr. Shilev
Business Acquisition [Line Items]
Agreement term (in years)	5 years
Annual base salary	$ 141,250
Bonus, percent of annual base salary	20.00%
Granted restricted stock (in years)	5 years
Bovie Bulgaria | Mr. Shilev | Restricted Stock
Business Acquisition [Line Items]
Restricted stock granted (in shares)	225,922

TRADE ACCOUNTS RECEIVABLE (Deta

TRADE ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Trade accounts receivable	$ 5,061	$ 4,851
Less: allowance for doubtful accounts	(204)	(118)
Trade accounts receivable, net	$ 4,857	$ 4,733

PROPERTY, PLANT AND EQUIPMENT44

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 13,119	$ 13,718
Less: accumulated depreciation	(6,711)	(7,269)
Net property, plant and equipment	6,408	6,449
Depreciation	600	600	$ 700
Land
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	1,600	1,600
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	3,231	3,775
Building and improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	4,512	4,237
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	1,947	2,194
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	0	12
Molds
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 1,829	$ 1,900

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Purchased technology, net	$ 179	$ 215
Goodwill	185	185
Amortization of Intangible Assets	100	100	$ 100
Brand name and trademark (life indefinite)
Indefinite-lived Intangible Assets [Line Items]
Brand name and trademark (life indefinite)	1,510	1,510
Purchased Technology
Finite-Lived Intangible Assets [Line Items]
Purchased technology (5-17 year lives)	1,513	1,441
Less: accumulated amortization	(1,334)	(1,226)
Purchased technology, net	$ 179	$ 215
Purchased Technology | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible asset, useful life (in years)	5 years
Purchased Technology | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible asset, useful life (in years)	17 years

INTANGIBLE ASSETS - NARRATIVE (

INTANGIBLE ASSETS - NARRATIVE (Details) $ in Millions	Dec. 31, 2017USD ($)
Amortization of Intangible Assets
2,018	$ 0.1
2,019	0.1
2,020	$ 0.1

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended									12 Months Ended
	Dec. 31, 2017		Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Numerator
Net (loss) income available to common shareholders	$ (824)	[1]	$ (1,245)	$ (1,308)	$ (1,685)	$ (523)	$ (964)	$ (519)	$ (1,944)	$ (5,062)	$ (3,950)	$ 8,364
Derivative liability - warrants										(183)	(64)	(1,799)
Accretion on convertible preferred stock										0	0	222
Numerator for dilutive (loss) income per common share										$ (5,245)	$ (4,014)	$ 6,787
Denominator
Weighted average shares used to compute basic (loss) income per common share (in shares)										31,420	27,433	24,333
Derivative liability - warrants (in shares)										7	16	28
Convertible preferred stock (in shares)										0	0	3,137
Stock options (in shares)										0	0	249
Denominator for diluted (loss) income per common share (in shares)										31,427	27,449	27,747
Earnings Per Share, Basic and Diluted [Abstract]
Basic (loss) income per common share	$ (0.03)		$ (0.04)	$ (0.04)	$ (0.05)	$ (0.02)	$ (0.04)	$ (0.02)	$ (0.07)	$ (0.16)	$ (0.14)	$ 0.34
Diluted (loss) income per common share										$ (0.17)	$ (0.15)	$ 0.24
[1]	*Fourth quarter 2017 period includes approximately $1.5 million of non-recurring severance and expenses related to former members of the Company’s executive management team and related closure of the corporate office in Purchase, New York.

CAPITAL STOCK (Details)

CAPITAL STOCK (Details) $ / shares in Units, $ in Thousands	Nov. 16, 2016shares	Dec. 31, 2017$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)shares	Nov. 10, 2016$ / shares
Class of Stock [Line Items]
Common stock, shares authorized		75,000,000	40,000,000
Common stock, number of votes per share		1
Common stock, par value (in dollars per share) | $ / shares		$ 0.001	$ 0.001
Issuance of common stock | $			$ 5,830	$ 11,531
Preferred stock, shares authorized		10,000,000
Series B Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares outstanding		0	975,639
Preferred stock, shares authorized		3,588,139	3,588,139
Preferred stock, par value (in dollars per share) | $ / shares		$ 0.001	$ 0.001
Preferred stock, shares issued		0	975,639
Conversion ratio		2
Primary Offering
Class of Stock [Line Items]
Issuance of common stock (in shares)	1,625,000
Secondary Offering
Class of Stock [Line Items]
Issuance of common stock (in shares)	1,625,000
Common Stock
Class of Stock [Line Items]
Public offering price per share | $ / shares					$ 4
Issuance of common stock (in shares)			1,625,000	5,219,000
Issuance of common stock | $			$ 2	$ 5

CONVERTIBLE PREFERRED STOCK A49

CONVERTIBLE PREFERRED STOCK AND WARRANTS - NARRATIVE (Details) - USD ($)	Dec. 13, 2013	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Class of Stock [Line Items]
Aggregate gross proceeds from issuance of stock	$ 7,000,000
Preferred stock, shares authorized		10,000,000
Additional accretion of convertible preferred stock and warrants				$ 221,902
Series A preferred stock		$ 0	$ 0
Warrant
Class of Stock [Line Items]
Expected dividend rate (as a percent)		0.00%	0.00%
Expected volatility rate (as a percent)		24.359%	82.47%
Risk free interest rate (as a percent)		1.798%	1.47%
Expected term (in years)		2 years	2 years 6 months
Investor Warrant
Class of Stock [Line Items]
Number of securities called by warrants	5,250,000
Warrants, exercise price (in dollars per share)	$ 2.387
Placement Agent Warrant
Class of Stock [Line Items]
Number of securities called by warrants	525,000	40,000
Placement Agent Warrant | Warrant
Class of Stock [Line Items]
Fair value of placement agent warrants		$ 20,000	$ 203,000	$ 267,000
Series A Preferred Stock
Class of Stock [Line Items]
Aggregate gross proceeds from issuance of stock	$ 2,600,000
Preferred stock, shares authorized		3,500,000
Payments of stock issuance costs	$ 400,000
Redemption value accretion period (in years)	4 years

CONVERTIBLE PREFERRED STOCK A50

CONVERTIBLE PREFERRED STOCK AND WARRANTS - ALLOCATION OF PROCEEDS AND EXPENSES (Details)	Dec. 13, 2013USD ($)
Class of Stock [Line Items]
Proceeds Allocated	$ 7,000,000
Series A Preferred Stock
Class of Stock [Line Items]
Proceeds Allocated	2,600,000
Expenses Allocated	$ 400,000

CONVERTIBLE PREFERRED STOCK A51

CONVERTIBLE PREFERRED STOCK AND WARRANTS - RECONCILIATION OF CHANGES IN FAIR VALUE OF WARRANTS (Details) - Warrant - Placement Agent Warrant - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Beginning balance	$ 203	$ 267
Exercise of warrants	(130)	(698)
Change in fair value	(53)	634
Ending balance	$ 20	$ 203

LONG TERM DEBT - NARRATIVE (Det

LONG TERM DEBT - NARRATIVE (Details) - Mortgages	Jun. 28, 2016USD ($)	Dec. 31, 2017
Debt Instrument [Line Items]
Mortgage loan, principal amount	$ 3,592,000
Certificate of deposit, amount pledged as collateral	719,000
Fixed monthly principal payment	19,956
Effective interest rate (as a percent)		5.64%
Debt covenant, maximum liquidity	$ 750,000
Debt service coverage ratio for preceding four quarters for extension of loan	1
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	3.50%
Secured Debt
Debt Instrument [Line Items]
Maximum working capital accounts	$ 2,000,000

LONG TERM DEBT - FUTURE MATURIT

LONG TERM DEBT - FUTURE MATURITIES (Details) $ in Thousands	Dec. 31, 2017USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2,018	$ 239
2,019	2,455
Total long-term debt	$ 2,694

TAXES AND NET OPERATING LOSS 54

TAXES AND NET OPERATING LOSS CARRYFORWARDS (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Loss and credit carry-forwards	$ 7,722	$ 9,169
Stock-based compensation	549	519
Inventory Reserve	494	534
Other	178	263
Total deferred tax assets	8,943	10,485
Valuation allowance	(8,756)	(10,185)
Total deferred tax assets, net of valuation allowance	187	300
Deferred tax liabilities:
State taxes (capital)	(17)	(19)
Property and equipment	(294)	(459)
Intangibles	(244)	(386)
Total deferred tax liabilities	(555)	(864)
Net deferred tax liabilities	$ (368)	$ (564)

TAXES AND NET OPERATING LOSS 55

TAXES AND NET OPERATING LOSS CARRYFORWARDS - EFFECTIVE TAX RATE (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of the statutory federal income tax rate to our effective tax rate
Federal tax provision	34.00%	34.00%	34.00%
State taxes (net of federal benefit)	4.80%	3.70%	2.40%
Warrant gains	0.40%	31.40%	(11.10%)
Valuation allowance	28.90%	(71.80%)	(26.30%)
Change in federal tax rate	(71.20%)	0.00%	0.00%
Other	6.20%	1.50%	0.60%
Total Tax Rate	3.10%	(1.20%)	(0.40%)

TAXES AND NET OPERATING LOSS 56

TAXES AND NET OPERATING LOSS CARRYFORWARDS TAXES AND NET OPERATING LOSS CARRYFORWARDS (Narrative) (Details)	12 Months Ended
	Dec. 31, 2017USD ($)
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount	$ 196,000

RETIREMENT PLAN - NARRATIVE (De

RETIREMENT PLAN - NARRATIVE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Retirement Benefits [Abstract]
Defined contribution plan, vesting period (in years)	3 years
Defined contribution plan, vesting percentage after 3 years (as a percent)	100.00%
Defined contribution plan, employer matching contribution (as a percent)	50.00%
Defined contribution plan, percent of employees' gross pay (as a percent)	3.00%
Company matching contributions	$ 0.3	$ 0.3	$ 0.2

RELATED PARTY TRANSACTIONS - NA

RELATED PARTY TRANSACTIONS - NARRATIVE (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Immediate Family Member of Management or Principal Owner | AR Logic
Related Party Transaction [Line Items]
Consulting fees	$ 200,000	$ 200,000	$ 300,000
Maximum
Related Party Transaction [Line Items]
Consulting fees	$ 120,000

OTHER COMMITMENTS AND CONTING59

OTHER COMMITMENTS AND CONTINGENCIES - FUTURE MINIMUM LEASE PAYMENTS (Details) $ in Thousands	Dec. 31, 2017USD ($)
Future minimum lease payments under operating leases
2,018	$ 74
2,019	74
2,020	74
2,021	74
Total	$ 296

OTHER COMMITMENTS AND CONTING60

OTHER COMMITMENTS AND CONTINGENCIES - NARRATIVE (Details)	Dec. 16, 2017USD ($)	Nov. 07, 2017USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Oct. 31, 2015USD ($)ft²	Mar. 31, 2014USD ($)ft²
Other Commitments [Line Items]
Purchase commitments for inventories			$ 4,300,000	$ 4,300,000
Severance and related expense			1,524,000	1,524,000	$ 0	$ 0
Accrued severance and related			1,242,000	1,242,000	$ 0
Purchase, NY
Other Commitments [Line Items]
Area of real estate property (in square feet) | ft²								3,650
Monthly cost of office space								$ 9,277
Sophia, Bulgaria
Other Commitments [Line Items]
Area of real estate property (in square feet) | ft²							18,745
Monthly cost of office space							$ 5,424
Mr. McCarthy
Other Commitments [Line Items]
Severance and related expense		$ 582,000
Accrued severance and related			397,000	397,000
Mr. Gershon
Other Commitments [Line Items]
Severance and related expense	$ 767,000
Accrued severance and related			670,000	670,000
Purchase, NY
Other Commitments [Line Items]
Severance and related expense		$ 175,000
Accrued severance and related			$ 175,000	$ 175,000

STOCK OPTIONS - NARRATIVE (Deta

STOCK OPTIONS - NARRATIVE (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Aug. 31, 2017	Jul. 31, 2015	Jul. 31, 2012	Oct. 30, 2007	Dec. 31, 2001
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option expiration period (in years)	10 years
Option vesting period (in years)	7 years
Aggregate intrinsic value of all stock options outstanding and expected to vest	$ 1,306,791	$ 4,150,334
Aggregate intrinsic value of currently exercisable stock options	$ 768,706	$ 1,574,318
Closing stock price for computation of intrinsic value (in dollars per share)	$ 2.60	$ 3.59
Number of in-the-money options outstanding and exercisable	2,318,887	1,211,014
Intrinsic value of options exercised	$ 223,340	$ 119,026	$ 51,575
Proceeds from stock options exercised	0	12,300	209,250
Intrinsic value of options granted	3,144,960	1,516,125	932,771
Fair value of option shares vested	$ 805,748	$ 612,464	$ 412,638
Shares issued in stock swaps	47,372	9,614	33,520
Value of stock swaps, net		$ 12,300
Unrecognized stock-based compensation cost	$ 3,000,000
Unrecognized stock-based compensation cost, recognition period (in years)	4 years
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares received in stock swaps	129,378	26,636	80,980
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares received in stock swaps	176,750	36,250	114,500
2001 Executive and Employee Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized under common stock option plans								1,200,000
2003 Executive and Employee Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized under common stock option plans							1,700,000
2012 Share Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized under common stock option plans						750,000
Remaining shares for issuance (in shares)	37,000
2015 Executive and Employee Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized under common stock option plans					2,000,000
Remaining shares for issuance (in shares)	343,578
2017 Executive and Employee Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized under common stock option plans				3,000,000
Remaining shares for issuance (in shares)	1,900,000

STOCK OPTIONS - SUMMARY OF STOC

STOCK OPTIONS - SUMMARY OF STOCK OPTIONS (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, beginning of period (in shares)	3,752,209	3,131,447
Granted (in shares)	1,728,000	810,762
Exercised (in shares)	(176,750)	(36,250)
Cancelled and forfeited (in shares)	(443,302)	(153,750)
Outstanding, end of period (in shares)	4,860,157	3,752,209
Exercisable, end of period (in shares)	2,627,722
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding, beginning of period (in dollars per share)	$ 3.04	$ 3.38
Granted (in dollars per share)	3.09	1.87
Exercised (in dollars per share)	2.41	3.62
Cancelled and forfeited (in dollars per share)	3.95	3.69
Outstanding, end of period (in dollars per share)	3	$ 3.04
Exercisable, end of period (in dollars per share)	$ 3.46

STOCK OPTIONS - SUMMARY OF NONV

STOCK OPTIONS - SUMMARY OF NONVESTED STOCK OPTIONS (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Number of Options Non-vested at beginning of period (in shares)	1,745,506
Number of Options Non-vested, Granted (in shares)	1,728,000	810,762
Number of Options Non-vested, Vested (in shares)	(797,769)
Number of Options Non-vested, Forfeited (in shares)	(443,302)
Number of Options Non-vested at end of period (in shares)	2,232,435	1,745,506
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted average grant date fair value, Non-vested Options at beginning of period (in dollars per share)	$ 1.25
Weighted average grant date fair value, Non-vested Options, Granted (in dollars per share)	1.82
Weighted average grant date fair value, Non-vested Options, Vested (in dollars per share)	1.01
Weighted average grant date fair value, Non-vested Options, Forfeited (in dollars per share)	1.95
Weighted average grant date fair value, Non-vested Options at end of period (in dollars per share)	$ 1.40	$ 1.25

STOCK OPTIONS STOCK OPTIONS - F

STOCK OPTIONS STOCK OPTIONS - FAIR VALUE ASSUMPTIONS (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option value (in dollars per share)	$ 3.09	$ 1.87
Expected dividend yield (as a percent)	0.00%	0.00%	0.00%
Expected volatility - low (as a percent)	62.10%	49.50%	53.00%
Expected volatility - high (as a percent)	68.00%	50.30%	54.00%
Expected term (in years)	6 years	6 years	6 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option value (in dollars per share)	$ 1.73	$ 0.80	$ 0.90
Risk-free rate (as a percent)	1.50%	1.50%	0.20%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option value (in dollars per share)	$ 2.34	$ 0.91	$ 1.84
Risk-free rate (as a percent)	1.90%	1.80%	1.60%

STOCK OPTIONS - ALLOCATION OF S

STOCK OPTIONS - ALLOCATION OF STOCK COMPENSATION EXPENSE (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated stock based compensation expense	$ 871,000	$ 809,000	$ 568,000
Cost of sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated stock based compensation expense	0	2,000	3,000
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated stock based compensation expense	27,000	27,000	39,000
Salaries and related costs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated stock based compensation expense	$ 844,000	$ 780,000	$ 526,000

GEOGRAPHIC AND SEGMENT INFORM66

GEOGRAPHIC AND SEGMENT INFORMATION - REPORTABLE SEGMENT (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Sales	$ 11,348	$ 9,347	$ 9,799	$ 8,389	$ 9,494	$ 10,063	$ 9,295	$ 7,775	$ 38,883	$ 36,627	$ 29,520
Income (loss) from operations									(5,265)	(3,792)	(6,986)
Severance and related expense	$ 1,524								1,524	0	0
Interest expense, net									(136)	(158)	(158)
Change in fair value of derivative liabilities									183	64	1,799
Income tax (benefit) expense									(156)	64	25
Depreciation and amortization									696	734	812
Operating Segments | Core
Segment Reporting Information [Line Items]
Sales									28,649	27,808	26,098
Income (loss) from operations									8,620	7,600	5,690
Severance and related expense									0	0	0
Interest expense, net									0	0	0
Change in fair value of derivative liabilities									0	0	0
Income tax (benefit) expense									0	0	0
Depreciation and amortization									0	0	0
Operating Segments | OEM
Segment Reporting Information [Line Items]
Sales									2,598	5,328	2,116
Income (loss) from operations									1,353	3,045	1,524
Severance and related expense									0	0	0
Interest expense, net									0	0	0
Change in fair value of derivative liabilities									0	0	0
Income tax (benefit) expense									0	0	0
Depreciation and amortization									0	0	0
Operating Segments | Advanced Energy
Segment Reporting Information [Line Items]
Sales									7,636	3,491	1,306
Income (loss) from operations									(3,957)	(4,812)	(4,688)
Severance and related expense									0	0	0
Interest expense, net									0	0	0
Change in fair value of derivative liabilities									0	0	0
Income tax (benefit) expense									0	0	0
Depreciation and amortization									0	0	0
Corporate (Other)
Segment Reporting Information [Line Items]
Sales									0	0	0
Income (loss) from operations									(11,281)	(9,625)	(9,512)
Severance and related expense									1,524	0	0
Interest expense, net									(136)	(158)	(158)
Change in fair value of derivative liabilities									183	64	1,799
Income tax (benefit) expense									(156)	64	25
Depreciation and amortization									$ 696	$ 734	$ 812

GEOGRAPHIC AND SEGMENT INFORM67

GEOGRAPHIC AND SEGMENT INFORMATION GEOGRAPHIC AND SEGMENT INFORMATION - PRODUCT LINE (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Sales	$ 11,348	$ 9,347	$ 9,799	$ 8,389	$ 9,494	$ 10,063	$ 9,295	$ 7,775	$ 38,883	$ 36,627	$ 29,520
Electrosurgical
Segment Reporting Information [Line Items]
Sales									25,727	20,901	17,558
Cauteries
Segment Reporting Information [Line Items]
Sales									7,141	7,101	6,886
Lighting
Segment Reporting Information [Line Items]
Sales									2,435	2,710	2,477
Other
Segment Reporting Information [Line Items]
Sales									$ 3,580	$ 5,915	$ 2,599

GEOGRAPHIC AND SEGMENT INFORM68

GEOGRAPHIC AND SEGMENT INFORMATION GEOGRAPHIC AND SEGMENT INFORMATION - GEOGRAPHIC (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Sales	$ 11,348	$ 9,347	$ 9,799	$ 8,389	$ 9,494	$ 10,063	$ 9,295	$ 7,775	$ 38,883	$ 36,627	$ 29,520
Domestic
Segment Reporting Information [Line Items]
Sales									33,147	32,050	24,540
International
Segment Reporting Information [Line Items]
Sales									$ 5,736	$ 4,577	$ 4,980

GEOGRAPHIC AND SEGMENT INFORM69

GEOGRAPHIC AND SEGMENT INFORMATION - NARRATIVE (Details)	12 Months Ended
	Dec. 31, 2017segmentproduct_line	Dec. 31, 2016segment	Dec. 31, 2015
Segment Reporting [Abstract]
Number of reportable segments		1
Number of operating segments	3
Number of product lines | product_line	4
Geographic concentration risk | Sales Revenue | International customers
Concentration Risk [Line Items]
Concentration receivable risk (as a percent)	14.80%	12.50%	16.90%

SUPPLEMENTAL UNAUDITED QUARTE70

SUPPLEMENTAL UNAUDITED QUARTERLY FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended									12 Months Ended
	Dec. 31, 2017		Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Data [Abstract]
Sales	$ 11,348		$ 9,347	$ 9,799	$ 8,389	$ 9,494	$ 10,063	$ 9,295	$ 7,775	$ 38,883	$ 36,627	$ 29,520
Gross profit	5,899		4,594	5,042	4,226	4,830	5,062	4,700	3,323	19,761	17,915	12,557
Net loss attributable to common shareholders	$ (824)	[1]	$ (1,245)	$ (1,308)	$ (1,685)	$ (523)	$ (964)	$ (519)	$ (1,944)	$ (5,062)	$ (3,950)	$ 8,364
Basic (loss) income per common share	$ (0.03)		$ (0.04)	$ (0.04)	$ (0.05)	$ (0.02)	$ (0.04)	$ (0.02)	$ (0.07)	$ (0.16)	$ (0.14)	$ 0.34
Severance and related expense	$ 1,524									$ 1,524	$ 0	$ 0
[1]	*Fourth quarter 2017 period includes approximately $1.5 million of non-recurring severance and expenses related to former members of the Company’s executive management team and related closure of the corporate office in Purchase, New York.