Apyx Medical (APYX) 10-Q 14 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 01, 2013
Document And Entity Information	'	'
Entity Registrant Name	'BOVIE MEDICAL CORP	'
Entity Central Index Key	'0000719135	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	17,826,336
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$2,501	$4,162
Trade accounts receivable, net	2,096	2,874
Inventories, net	8,526	7,543
Current portion of deposits	731	714
Prepaid expenses and other current assets	673	951
Total current assets	14,527	16,244
Property and equipment, net	7,095	7,229
Brand name and trademark	1,510	1,510
Purchased technology and license rights, net	598	664
Deferred income tax assets, net	2,874	1,799
Deposits, net of current portion	280	133
Other assets	803	604
Total assets	27,687	28,183
Current liabilities:	'	'
Accounts payable	1,171	803
Accrued payroll	113	118
Accrued vacation	246	186
Current portion of mortgage note payable to bank	286	138
Current portion of settlement	23	232
Accrued and other liabilities	1,329	445
Total current liabilities	3,168	1,922
Mortgage note payable, net of current portion	3,030	3,281
Derivative liabilities	68	85
Total liabilities	6,266	5,288
Commitments and Contingencies (see Notes 9 and 11)	'	'
Stockholders' equity:	'	'
Common stock, par value $.001 par value; 40,000,000 shares authorized; 17,826,336 and 17,781,538 issued and 17,683,257 and 17,638,459 outstanding on September 30, 2013 and December 31, 2012, respectively	18	18
Additional paid-in capital	25,913	25,517
Deficit	-4,510	-2,640
Total stockholders' equity	21,421	22,895
Total liabilities and stockholders' equity	$27,687	$28,183

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Stockholders' equity:	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	17,826,336	17,781,538
Common stock, shares outstanding	17,683,257	17,638,459

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Consolidated Statements Of Operations	'	'	'	'
Sales	$5,794	$6,671	$17,532	$20,843
Cost of sales	3,545	3,777	10,902	12,297
Gross profit	2,249	2,894	6,630	8,546
Other costs and expenses:	'	'	'	'
Research and development	291	322	938	969
Professional services	512	408	1,348	1,061
Salaries and related costs	751	781	2,376	2,352
Selling, general and administrative	1,170	1,101	3,717	3,246
Legal award	'	'	1,041	'
Total other costs and expenses	2,724	2,612	9,420	7,628
Income (loss) from operations	-475	282	-2,790	918
Change in fair value of derivative liabilities	13	-135	17	-108
Interest expense, net	-54	-58	-171	-175
Income (loss) before income taxes	-516	89	-2,944	635
Benefit (provision) for income taxes, net	175	-96	1,074	-304
Net income (loss)	($341)	($7)	($1,870)	$331
Earnings (loss) per share	'	'	'	'
Basic (in dollars per share)	($0.02)	'	($0.11)	$0.02
Diluted (in dollars per share)	($0.02)	'	($0.11)	$0.02
Weighted average number of shares outstanding - basic (in shares)	17,678	17,634	17,666	17,628
Weighted average number of shares outstanding - dilutive (in shares)	17,678	17,634	17,666	17,731

CONSOLIDATED_STATEMENTS_OF_STO

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
In Thousands, except Share data
Beginning Balance, Amount at Dec. 31, 2011	$18	$25,356	($3,257)	$22,117
Beginning Balance, Shares at Dec. 31, 2011	17,618	'	'	'
Options exercised, Shares	28	'	'	'
Options exercised, Amount	'	20	'	20
Stock based compensation	'	161	'	161
Stock swap to acquire options, Shares	-7	'	'	'
Stock swap to acquire options, Amount	'	-20	'	-20
Net income (loss)	'	'	617	617
Ending Balance, Amount at Dec. 31, 2012	18	25,517	-2,640	22,895
Ending Balance, Shares at Dec. 31, 2012	17,639	'	'	'
Options exercised, Shares	51	'	'	'
Options exercised, Amount	'	71	'	71
Stock based compensation	'	348	'	348
Stock swap to acquire options, Shares	-7	'	'	'
Stock swap to acquire options, Amount	'	-23	'	-23
Net income (loss)	'	'	-1,870	-1,870
Ending Balance, Amount at Sep. 30, 2013	$18	$25,913	($4,510)	$21,421
Ending Balance, Shares at Sep. 30, 2013	17,683	'	'	'

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities	'	'
Net income (loss)	($1,870)	$331
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:	'	'
Depreciation and amortization	620	640
Provision for (recovery of) inventory obsolescence	40	-19
Gain on disposal of property and equipment, net	-3	-41
Stock-based compensation	348	109
Change in fair value of liabilities	-17	108
Provision (benefit) for deferred taxes	-1,075	298
Changes in current assets and liabilities:	'	'
Trade receivables	778	-422
Prepaid expenses	277	-324
Inventories	-1,022	414
Deposits and other assets	-363	-289
Accounts payable	368	-468
Accrued and other liabilities	730	-183
Net cash provided by (used in) operating activities	-1,189	154
Cash flows from investing activities	'	'
Purchases of property and equipment	-417	-449
Net cash used in investing activities	-417	-449
Cash flows from financing activities	'	'
Proceeds from stock options exercised	48	'
Repayments of mortgage note payable	-103	-97
Net cash used in financing activities	-55	-97
Net change in cash and cash equivalents	-1,661	-392
Cash and cash equivalents, beginning of period	4,162	4,880
Cash and cash equivalents, end of period	2,501	4,488
Interest	171	175
Income taxes	'	'

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2013
Basis Of Presentation	'
NOTE 1. BASIS OF PRESENTATION	'
	Unless the context otherwise indicates, the terms “we,” “our,” “us,” “Bovie,” and similar terms refer to Bovie Medical Corporation and its consolidated subsidiaries.
	The accompanying unaudited consolidated financial statements have been prepared based upon SEC rules that permit reduced disclosure for interim periods.  For a more complete discussion of significant accounting policies and certain other information, please refer to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2012.  These financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, including normal recurring accruals and other items.  The results for the interim periods are not necessarily indicative of results for the full year.
	Certain amounts in the September 30, 2012 and December 31, 2012 financial statements may have been reclassified to conform to the presentation in the September 30, 2013 financial statements.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2013
Inventories	'
NOTE 2. INVENTORIES	'
	Inventories are stated at the lower of cost or market.  Cost is determined principally on the average cost method.  Inventories at September 30, 2013 and December 31, 2012 were as follows (in thousands):
		September 30,			December 31,
		2013			2012
	Raw materials	$	5,652		$	5,133
	Work in process		702			853
	Finished goods		2,591			2,016
	Gross inventories		8,945			8,002
	Less: reserve for obsolescence		(419	)		(459	)
	Net inventories	$	8,526		$	7,543

INTANGIBLE_ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2013
Intangible Assets	'
NOTE 3. INTANGIBLE ASSETS	'
	At September 30, 2013 and December 31, 2012 intangible assets consisted of the following (in thousands):
		September 30,			December 31,
		2013			2012
	Trade name (life indefinite)	$	1,510		$	1,510
	Purchased technology (9-17 yr life)	$	1,441		$	1,441
	Less: accumulated amortization		(843	)		(777	)
	Net carrying amount	$	598		$	664
	License rights (5 yr life)	$	316		$	316
	Less accumulated amortization		(316	)		(316	)
	Net carrying amount	$	--		$	--
	Amortization of intangibles, which is included in depreciation and amortization in the accompanying statements of cash flows, and selling, general, and administrative expenses in the accompanying statements of operations was approximately $66,300 and $92,600 during the respective nine month periods ended September 30, 2013 and 2012.

NEW_ACCOUNTING_PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2013
New Accounting Pronouncements	'
NOTE 4. NEW ACCOUNTING PRONOUNCEMENTS	'
	In January 2013, the FASB issued ASU 2013-01, "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities." ASU 2013-01 clarifies the scope of ASU 2011-11 to apply to derivative instruments that are offset or subject to an enforceable master netting arrangement or similar agreement. This clarified guidance is effective for annual reporting periods beginning on or after January 1, 2013 and subsequent interim periods. The revised requirements of ASU 2013-01 did not have a material impact on our financial statements.
	In July 2013, the FASB issued ASU 2013-11, “Presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists.” ASU 2013-11 requires companies to present a deferred tax asset net of related unrecognized tax benefits if there is a net operating loss or other tax carryforwards that would apply in settlement of the uncertain tax position. To the extent that an uncertain tax position would not be settled through a reduction of a net operating loss or other tax carryforwards, the unrecognized tax benefit will be presented as a liability. The guidance is effective for the fiscal year beginning January 1, 2014, with early adoption permitted. We anticipate adopting the new guidance effective January 1, 2014 and are evaluating the impact, if any, that this new guidance will have on our financial statements.
	We have reviewed all other recently issued standards and have determined they will not have a material impact on our consolidated financial statements, or do not apply to our operations.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2013
Fair Value Measurements	'
NOTE 5. FAIR VALUE MEASUREMENTS	'
	Certain assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2013 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).
	The following table summarizes our financial instruments measured at fair value as of September 30, 2013 (in thousands):
			30-Sep-13
			Fair Value Measurements
			Total		Level 1			Level 2		Level 3
	Assets:
	Cash and equivalents – United States		$	2,501	$	2,501		$	-	$	--
	Liabilities:
	Warrant liability (1)		$	68	$	–		$	–	$	68
	The following table summarizes our financial instruments measured at fair value as of December 31, 2012 (in thousands):
			31-Dec-12
			Fair Value Measurements
			Total		Level 1			Level 2		Level 3
	Assets:
	Cash and equivalents – United States		$	4,162	$	4,162		$	–	$	–
	Liabilities:
	Warrant liability (1)		$	85	$	–		$	–	$	85
		-1	The warrants are valued using a binomial lattice valuation methodology because that model embodies all of the relevant assumptions that address the features underlying these instruments. Significant assumptions used in this model at inception and as of September 30, 2013 included an expected remaining life of 2 years, an expected dividend yield of zero, estimated volatility range between 40% - 43%, and risk-free rates of return range between 0.31% - 0.40%. For the risk-free rates of return, we use the published yields on zero-coupon Treasury Securities with maturities consistent with the remaining term of the warrants and volatility is based on a weighted average of the historical volatility of our stock price and peer company stock price volatility. We also take into consideration a probability assumption for anti-dilution.
	.
	Activity in our Level 3 liabilities was as follows (in thousands):
	Description		September 30,		December 31,
			2013		2012
	Beginning balance		$	85	$	105
	Total loss (gain) included in earnings (2)			-17		(20	)
	Ending Balance		$	68	$	85
		-2	Gains and losses for the periods related to the revaluation of equity based liabilities. These gains or losses are included in our consolidated statements of operations.

EARNINGS_PER_SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2013
Earnings (loss) per share	'
NOTE 6. EARNINGS PER SHARE	'
	We compute basic earnings per share (“basic EPS”) by dividing net income 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 (primarily stock options). The following table provides the computation of basic and diluted earnings per share for the three month and nine month periods ending September 30, 2013 and 2012.
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
	(in thousands, except EPS)	2013			2012					2013
	Net income (loss)		(341	)		(7	)	(1,870	)	$	331
	Basic weighted average shares		17,678			17,634		17,666			17,628
	outstanding
	Effect of potential dilutive    securities		—			—		—			103
	Diluted weighted average		17,678			17,634		17,666			17,731
	shares outstanding
	Basic EPS		(0.02	)		—		(0.11	)	$	0.02
	Diluted EPS		(0.02	)		—		(0.11	)	$	0.02
	For the nine months ended September 30, 2013 and 2012, options and warrants to purchase approximately 1.0 million and 0.8 million shares of common stock respectively, were excluded from the computation of diluted earnings per share because their effects were anti-dilutive.

STOCKBASED_COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2013
Stock-Based Compensation	'
NOTE 7. STOCK-BASED COMPENSATION	'
	Under our stock option plan, our board of directors may grant options to purchase common shares to our key employees, officers, directors and consultants.  We account for stock options in accordance with FASB ASC Topic 718, Compensation – Stock Compensation, with option expense amortized over the vesting period based on the binomial lattice option-pricing model fair value on the grant date, which includes a number of estimates that affect the amount of our expense. During the nine months ended September 30, 2013, we expensed approximately $348,000 in stock-based compensation.
	Activity in our stock options during the period ended September 30, 2013 was as follows:
		Number of			Weighted
		Options			Average
		(in thousands)			Exercise Price
	Outstanding at December 31, 2012		1,879		$	3.81
	Granted		102		$	4.41
	Exercised		(51	)	$	1.38
	Legal Award		94			7
	Cancelled		(352	)	$	3.13
	Outstanding at September 30, 2013		1,672		$	4.24
	The grant date fair value of options granted during the first nine months of 2013 were estimated on the grant date using a binomial lattice option-pricing model and the following assumptions: expected volatility of 43%, expected term of between 3-5 years, risk-free interest rate of between 0.34 - 0.4%, and expected dividend yield of 0%.
	Expected volatility is based on a weighted average of the historical volatility of our stock and peer company volatility. We use a peer group that has openly traded stock options on the options market which provides a more accurate gauge of industry volatility. The weighting percentages relative to our stock and the peer group is a 50%/50% weighting. Our peer group has remained relatively the same throughout our calculations year over year, and a peer is only replaced with a similar peer company if it is removed from the public stock exchanges or no longer has significantly traded volume on the open stock options market. The risk-free rate is based on the rate of U.S. Treasury zero-coupon issues with a remaining term equal to the expected life of the options. We use historical data to estimate pre-vesting forfeiture rates.
	During the nine months ended September 30, 2013, we issued 44,798 common shares in exchange for 51,000 non-employee stock options and 6,202 common shares (via a stock swap). Net proceeds from the issuance of common shares along with the shares received in the stock swap exercises were $48,025 for the nine months ended September 30, 2013.

INCOME_TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2013
Income Taxes	'
NOTE 8. INCOME TAXES	'
	While we are subject to U.S. federal income tax as well as income tax of certain state jurisdictions, during the three months ended September 30, 2013, our current provisions were zero because the net effect of our permanent and temporary differences resulted in us recognizing losses for tax purposes.  At September 30, 2013, we have remaining net operating loss carry-forwards of approximately $7.2 million to reduce any future taxable income earned in various years through the tax year 2030.  Our effective tax rate of (33.9%) for the three months ended September 30, 2013 was different than the statutory tax rates primarily because we recognized certain temporary and permanent adjustments for financial statement purposes.

COMMITMENTS_CONTINGENCIES_AND_

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS	9 Months Ended
	Sep. 30, 2013
Commitments Contingencies And Concentrations	'
NOTE 9. COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS	'
	We are obligated under various operating leases for our facilities and certain equipment, most notably a lease for a manufacturing and warehouse facility in St. Petersburg, Florida that requires monthly payments of approximately $14,000 and expires on October 31, 2013.  The following is a schedule of approximate future minimum lease payments under operating leases having remaining terms in excess of one year as of September 30, 2013 for the calendar years ended December 31, 2013 and 2014. (in thousands):
		2013			$	37
		2014				12
		Total			$	49
	Rent expense approximated $117,000 and $139,000 for the nine month periods ending September 30, 2013 and 2012 respectively.
	We have a manufacturing agreement with our Bulgarian supplier which provides for certain contingent payments on our part if we terminate our arrangement prior to July 1, 2014. The table below reflects our approximate contingent liability for the calendar years ended December 31, 2013, and 2014 (in thousands):
		2013			$	32
		2014				73
		Total			$	105
	Other future contractual obligations for agreements with initial terms greater than one year and agreements to purchase materials in the normal course of business are summarized as follows (in thousands):
	Description		Years Ending December 31,
			2013				2014				2015		2016		2017		2018
	Employment agreements		$	242			$	846			$	786	$	—	$	—	$	—
	Purchase commitments			666				1,901				—		—		—		—
	Consulting contracts			18				72				—		—		—		—
	Long-term debt			73				3,243				—		—		—		—
	Total		$	999			$	6,062			$	786	$	—	$	—	$	—
	Livneh/Lican Development Litigation
	In July 2012, Steven Livneh and two of his related entities, Henvil Corp. Ltd. and Lican Development Ltd., commenced a new action against the Company, Andrew Makrides, and Moshe Citronowicz in the United States District Court for the Middle District of Florida (Tampa Division).  The complaint asserts, among other things, that (i) the defendants breached their obligations to the plaintiffs under a Settlement Agreement effective as of December 28, 2011, the terms of which have been disclosed in our previous filings, by allegedly failing to take certain actions that would have facilitated the plaintiffs’ marketing and sale of the Seal-N-Cut products in the People’s Republic of China (“PRC”), (ii) that defendants tortiously interfered with plaintiffs’ business relationships and expectations in PRC allegedly by, among other things, refusing to provide plaintiffs with an ICON VS generator and (iii) plaintiffs allegedly suffered damages as a result of defendants’ breaches and misrepresentations.  The complaint seeks, among other things, the following: (i) compensatory damages in excess of $10 million, (ii) an order directing Bovie to provide plaintiffs with an ICON VS generator, (iii) an assignment to plaintiffs of all patents identified in the Settlement Agreement, and (iv) rescission of the Settlement Agreement.  We continue to believe the allegations to be without merit, and we will continue to defend the action vigorously
	Earlier this year, both parties moved for summary judgment. Plaintiffs moved for a judgment as to the defendants’ liability for breach of contract, leaving the decision of damages for determination later. Defendants moved for a determination that the plaintiffs could not recover their alleged lost profits in PRC as consequential damages, arguing that any such damages would be speculative and for dismissal of the tortuous interference and fraud in the inducement claims. On September 23, the Court denied all summary judgment motions.
	Trial is scheduled for December 2013.
	Stockholder Derivative Action
	As previously reported, in September 2011, we were served in a purported stockholder derivative action that was filed in the United States District Court for the Middle District of Florida against the Company and certain of its present and former officers and directors. The complaint asserts, among other things, breach of fiduciary duties and bad faith in relation to the management of our business. The complaint seeks, among other things, unspecified compensatory damages and various forms of equitable relief. The allegations in the derivative action appear to be based largely on the January 10, 2011 Livneh counterclaim described above.
	On March 29, 2012, plaintiffs amended their complaint to remove one of the plaintiffs and replace it with another. The amended complaint asserts essentially the same allegations as the original filing. We believe the allegations to be frivolous and without merit and we intend to defend the action vigorously. We are investigating whether there is a collusive connection between the derivative action and the previously settled lawsuit with Livneh. In May 2012, we, together with the individual defendants filed a motion to dismiss the plaintiff’s complaint based, in part, upon the plaintiff’s failure to make demand upon the board as required by applicable law. The motion was denied and the parties are proceeding with discovery.  The parties are presently engaged in a court sanctioned mediation process. The outcome of this matter is uncertain, no range of potential loss can be estimated and accordingly no effect has given to any loss that may result from the resolution of this matter in the accompanying consolidated financial statements.
	Keen Action
	In connection with the previously disclosed litigation pending in the United States District Court for the Middle District of Florida between the Company and Leonard Keen, the Company’s former Vice President and General Counsel, on August 8, 2013, following a jury trial, the jury returned a verdict in favor of Mr. Keen awarding him $622,500 in severance. In addition, the jury determined that, Mr. Keen’s previously issued 110,000 stock options should be reinstated and accelerated, and that the Company must indemnify Mr. Keen for any damages or costs he suffered in his capacity as an employee of Bovie pursuant to the terms of Mr. Keen’s prior employment agreement with the Company.
	Mr. Keen has filed a motion requesting an award of attorney’s fees pursuant to his employment agreement and Florida Law. The Company has filed its own request of statutory fees as the prevailing party on plaintiff’s dismissed Florida Whistleblower Act claim. These motions are awaiting a decision from the Court. The Company has elected not to appeal the verdict.
	Amounts related to the verdict of this case were accrued and expensed in the second quarter ended June 30, 2013.
	Concentrations
	During the nine months ended September 30, 2013 we reported sales aggregating approximately $17.5 million of which the three largest customers accounted for 11.8%, 11.7%, and 10.5%. At September 30, 2013, two customers accounted for more than 10% of our accounts receivable and accounted for approximately 25.4% of our total accounts receivable in aggregate.
	For the nine months ended September 30, 2013 and 2012 revenue was derived from the following:
	Description				September 30,				September 30,
					2013				2012
		Domestic				82.2	%			81.2	%
		Foreign				17.8	%			18.8	%

RELATED_PARTY_TRANSACTION

RELATED PARTY TRANSACTION	9 Months Ended
	Sep. 30, 2013
Related Party Transaction	'
NOTE 10. RELATED PARTY TRANSACTIONS	'
	A relative of Moshe Citronowicz, Bovie’s Senior Vice President, is considered a related party. Arik Zoran, who is the brother of Moshe Citronowicz, is a principal of arLogic, Inc., a consulting firm providing engineering services to us. Our agreement with arLogic, Inc. provides for a monthly retainer for engineering support for our existing generator product line and a separate hourly based fee structure for additional consulting services related to new product lines. During March 2013, we amended our consulting services agreement with arLogic, Inc. and extended the contract term until December 31, 2014. The amendment also provided for an automatic one year renewal provision unless either party gives written notice to terminate at least one year prior to expiration. arLogic was paid consulting fees of approximately $188,100 and $152,600 during the nine months ended September 30, 2013 and 2012, respectively.
	The table below reflects our approximate minimum retainer liability for the calendar years ended December 31, 2013, and 2014 (in thousands):
		2013	$	18
		2014		72
		Total	$	90
	A second relative of Mr. Citronowicz is considered a related party. Yechiel Tsitrinovich is also a brother of Mr. Citronowicz, and acts as a consultant to the Company related to research and development of certain products. Mr. Tsitrinovich has a royalty contract with us related to the creation and design of a proprietary technology that is used in some of our generators. Mr. Tsitrinovich was paid a combination of consulting fees and royalties on previous product designs approximating $57,000 and $61,400 for the nine months ended September 30, 2013 and 2012, respectively.

SUBSEQUENT_EVENT

SUBSEQUENT EVENT	9 Months Ended
	Sep. 30, 2013
Subsequent Event	'
NOTE 11. SUBSEQUENT EVENT	'
	On October 22, 2013, we entered into an amendment to our credit facilities with PNC Bank.  Pursuant to the amendment, we terminated our revolving line of credit. In addition, the amendment provided for changes to our mortgage note credit facility and previous amendment: (a) the definition of “adjusted EBITDA” contained in our credit agreement dated October 31, 2011, as amended, relating to $4,000,000 in Pinellas County Industrial Development Revenue Bonds Series 2008 was amended to exclude the one-time payment on the judgment in favor of Leonard Keen in the approximate amount of $848,000, effective as of June 30, 2013; (b) in addition to the payments of principal and interest otherwise required under the bonds, from November 1, 2013 through and including September 1, 2014, the Company shall make additional principal payments of $12,000 per month and redeem the bonds in full on October 1, 2014; and (c) amended the covenant containing the adjusted EBITDA targets, as more fully set forth in the fourth amendment. The amendment also grants PNC a security interest in all of our property and equipment (excluding patents) as additional collateral to secure our obligations under the credit agreement. All other terms of our remaining credit agreement, as amended remain in full force and effect.
	The Company intends to refinance the debt with another financial institution, of which there can be no assurance that we can obtain such additional financing on commercially reasonable terms, if at all. The result of refinancing this debt may require an exit fee of approximately $390,000, measured as of October 31, 2013, to pay off an embedded swap interest rate collar position, depending upon the type of financing. This interest rate collar was the result of our previous refinancing of the industrial revenue bonds on October 31, 2011 with PNC Bank.

INVENTORIES_Tables

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2013
Inventories Tables	'
Schedule of inventory	'
	Inventories are stated at the lower of cost or market.  Cost is determined principally on the average cost method.  Inventories at September 30, 2013 and December 31, 2012 were as follows (in thousands):
		September 30,			December 31,
		2013			2012
	Raw materials	$	5,652		$	5,133
	Work in process		702			853
	Finished goods		2,591			2,016
	Gross inventories		8,945			8,002
	Less: reserve for obsolescence		(419	)		(459	)
	Net inventories	$	8,526		$	7,543

INTANGIBLE_ASSETS_Tables

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2013
Intangible Assets Tables	'
Schedule of intangible assets	'
	At September 30, 2013 and December 31, 2012 intangible assets consisted of the following (in thousands):
		September 30,			December 31,
		2013			2012
	Trade name (life indefinite)	$	1,510		$	1,510
	Purchased technology (9-17 yr life)	$	1,441		$	1,441
	Less: accumulated amortization		(843	)		(777	)
	Net carrying amount	$	598		$	664
	License rights (5 yr life)	$	316		$	316
	Less accumulated amortization		(316	)		(316	)
	Net carrying amount	$	—		$	—

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2013
Fair Value Measurements Tables	'
Financial instruments measured at fair value	'
	The following table summarizes our financial instruments measured at fair value as of September 30, 2013 (in thousands):
			30-Sep-13
			Fair Value Measurements
			Total		Level 1			Level 2		Level 3
	Assets:
	Cash and equivalents – United States		$	2,501	$	2,501		$	-	$	--
	Liabilities:
	Warrant liability (1)		$	68	$	–		$	–	$	68
	The following table summarizes our financial instruments measured at fair value as of December 31, 2012 (in thousands):
			31-Dec-12
			Fair Value Measurements
			Total		Level 1			Level 2		Level 3
	Assets:
	Cash and equivalents – United States		$	4,162	$	4,162		$	–	$	–
	Liabilities:
	Warrant liability (1)		$	85	$	–		$	–	$	85
		-1	The warrants are valued using a binomial lattice valuation methodology because that model embodies all of the relevant assumptions that address the features underlying these instruments. Significant assumptions used in this model at inception and as of September 30, 2013 included an expected remaining life of 2 years, an expected dividend yield of zero, estimated volatility range between 40% - 43%, and risk-free rates of return range between 0.31% - 0.40%. For the risk-free rates of return, we use the published yields on zero-coupon Treasury Securities with maturities consistent with the remaining term of the warrants and volatility is based on a weighted average of the historical volatility of our stock price and peer company stock price volatility. We also take into consideration a probability assumption for anti-dilution.
Activity in Level 3 assets	'
	Activity in our Level 3 liabilities was as follows (in thousands):
	Description		September 30,		December 31,
			2013		2012
	Beginning balance		$	85	$	105
	Total loss (gain) included in earnings (2)			-17		(20	)
	Ending Balance		$	68	$	85
		-2	Gains and losses for the periods related to the revaluation of equity based liabilities. These gains or losses are included in our consolidated statements of operations.

EARNINGS_PER_SHARE_Tables

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2013
Earnings Per Share Tables	'
Computation of basic and diluted earnings (loss) per share	'
	The following table provides the computation of basic and diluted earnings per share for the three month and nine month periods ending September 30, 2013 and 2012.
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
	(in thousands, except EPS)	2013			2012					2013
	Net income (loss)		(341	)		(7	)	(1,870	)	$	331
	Basic weighted average shares		17,678			17,634		17,666			17,628
	outstanding
	Effect of potential dilutive    securities		—			—		—			103
	Diluted weighted average		17,678			17,634		17,666			17,731
	shares outstanding
	Basic EPS		(0.02	)		—		(0.11	)	$	0.02
	Diluted EPS		(0.02	)		—		(0.11	)	$	0.02

STOCKBASED_COMPENSATION_Tables

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2013
Stock-Based Compensation Tables	'
Activity in stock options	'
	Activity in our stock options during the period ended September 30, 2013 was as follows:
		Number of			Weighted
		Options			Average Exercise Price
		(in thousands)
	Outstanding at December 31, 2012		1,879		$	3.81
	Granted		102		$	4.41
	Exercised		(51	)	$	1.38
	Legal Award		94			7
	Cancelled		(352	)	$	3.13
	Outstanding at September 30, 2013		1,672		$	4.24

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2013
Commitments And Contingencies Tables	'
Future minimum lease payments under operating leases	'
	The following is a schedule of approximate future minimum lease payments under operating leases having remaining terms in excess of one year as of September 30, 2013 for the calendar years ended December 31, 2013 and 2014. (in thousands):
		2013			$	37
		2014				12
		Total			$	49
Approximate contingent liability for the calendar years	'
	The table below reflects our approximate contingent liability for the calendar years ended December 31, 2013, and 2014 (in thousands):
		2013			$	32
		2014				73
		Total			$	105
Other future contractual obligations	'
	Other future contractual obligations for agreements with initial terms greater than one year and agreements to purchase materials in the normal course of business are summarized as follows (in thousands):
	Description		Years Ending December 31,
			2013				2014				2015		2016		2017		2018
	Employment agreements		$	242			$	846			$	786	$	—	$	—	$	—
	Purchase commitments			666				1,901				—		—		—		—
	Consulting contracts			18				72				—		—		—		—
	Long-term debt			73				3,243				—		—		—		—
	Total		$	999			$	6,062			$	786	$	—	$	—	$	—
Derived revenue	'
	For the nine months ended September 30, 2013 and 2012 revenue was derived from the following:
	Description				September 30,				September 30,
					2013				2012
		Domestic				82.2	%			81.2	%
		Foreign				17.8	%			18.8	%

RELATED_PARTY_TRANSACTION_Tabl

RELATED PARTY TRANSACTION (Tables)	9 Months Ended
	Sep. 30, 2013
Related Party Transaction Tables	'
Approximate minimum retainer liability	'
	The table below reflects our approximate minimum retainer liability for the calendar years ended December 31, 2013, and 2014 (in thousands):
		2013	$	18
		2014		72
		Total	$	90

INVENTORIES_Details

INVENTORIES (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Inventories Details	'	'
Raw materials	$5,652	$5,133
Work in process	702	853
Finished goods	2,591	2,016
Gross inventories	8,945	8,002
Less: reserve for obsolescence	-419	459
Net inventories	$8,526	$7,543

INTANGIBLE_ASSETS_Details

INTANGIBLE ASSETS (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Net carrying amount	$598	$664
Trade Names [Member]	'	'
Indefinite-lived intangible assets	1,510	1,510
Purchased Technology [Member]	'	'
Finite-lived intangible assets, gross	1,441	1,441
Less: accumulated amortization	-843	-777
Net carrying amount	598	664
Purchased Technology [Member] | Minimum [Member]	'	'
Useful life	'9 years	'
Purchased Technology [Member] | Maximum [Member]	'	'
Useful life	'17 years	'
License Rights [Member]	'	'
Finite-lived intangible assets, gross	316	316
Less: accumulated amortization	-316	-316
Net carrying amount	'	'
Useful life	'5 years	'

INTANGIBLE_ASSETS_Details_Narr

INTANGIBLE ASSETS (Details Narrative) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Intangible Assets Details Narrative	'	'
Amortization of Intangible Assets	$663	$926

FAIR_VALUE_MEASUREMENTS_Detail

FAIR VALUE MEASUREMENTS (Details) (USD $)	Sep. 30, 2013		Dec. 31, 2012		Sep. 30, 2012	Dec. 31, 2011
In Thousands, unless otherwise specified
Assets:	'		'		'	'
Cash and equivalents - United States	$2,501		$4,162		$4,488	$4,880
Liabilities:	'		'		'	'
Warrant liability (1)	68	[1]	85	[1]	'	'
Level 1 [Member]	'		'		'	'
Assets:	'		'		'	'
Cash and equivalents - United States	2,501		4,162		'	'
Level 2 [Member]	'		'		'	'
Assets:	'		'		'	'
Cash and equivalents - United States	'		'		'	'
Level 3 [Member]	'		'		'	'
Assets:	'		'		'	'
Cash and equivalents - United States	'		'		'	'
Liabilities:	'		'		'	'
Warrant liability (1)	$68	[1]	$85	[1]	'	'
[1]	The warrants are valued using a binomial lattice valuation methodology because that model embodies all of the relevant assumptions that address the features underlying these instruments. Significant assumptions used in this model at inception and as of September 30, 2013 included an expected remaining life of 2 years, an expected dividend yield of zero, estimated volatility range between 40% - 43%, and risk-free rates of return range between 0.31% - 0.40%. For the risk-free rates of return, we use the published yields on zero-coupon Treasury Securities with maturities consistent with the remaining term of the warrants and volatility is based on a weighted average of the historical volatility of our stock price and peer company stock price volatility. We also take into consideration a probability assumption for anti-dilution.

FAIR_VALUE_MEASUREMENTS_Detail1

FAIR VALUE MEASUREMENTS (Details 1) (USD $)	9 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013		Dec. 31, 2012
Fair Value Measurements Details 1	'		'
Beginning balance	$85		$105
Total loss (gain) included in earnings (1)	-17	[1]	-20	[1]
Ending Balance	$68		$85
[1]	Gains and losses for the periods related to the revaluation of equity based liabilities. These gains or losses are included in our consolidated statements of operations

EARNINGS_PER_SHARE_Details

EARNINGS PER SHARE (Details) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Earnings (loss) per share	'	'	'	'	'
Net income (loss)	($341)	($7)	($1,870)	$331	$617
Basic weighted average shares outstanding	17,678	17,634	17,666	17,628	'
Effect of potential dilutive securities	'	'	'	103	'
Diluted weighted average shares outstanding	17,678	17,634	17,666	17,731	'
Basic earnings (loss) per share	($0.02)	'	($0.11)	$0.02	'
Diluted earnings (loss) per share	($0.02)	'	($0.11)	$0.02	'

EARNINGS_PER_SHARE_Details_Nar

EARNINGS PER SHARE (Details Narrative)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Earnings (loss) per share	'	'
Antidilutive securities excluded from computation of earnings per share (in shares)	1,000,000	800,000

STOCKBASED_COMPENSATION_Detail

STOCK-BASED COMPENSATION (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Number of options, outstanding	'
Outstanding, beginning of period (in shares)	1,879,000
Granted (in shares)	102,000
Exercised (in shares)	-51,000
Legal award (in shares)	94,000
Cancelled (in shares)	-352,000
Outstanding, end of period (in shares)	1,672,000
Weighted average exercise price	'
Outstanding, beginning of period (in dollars per share)	$3.81
Granted (in dollars per share)	$4.41
Exercised (in dollars per share)	$1.38
Legal award (in dollars per shares)	$7
Cancelled (in dollars per share)	$3.13
Outstanding, end of period (in dollars per share)	$4.24

STOCKBASED_COMPENSATION_Detail1

STOCK-BASED COMPENSATION (Details Narrative) (USD $)	9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013
Stock-based compensation	$348,000
Expected volatility rate	43.00%
Expected dividend yield	0.00%
Weighting percentages relative to our stock and the peer group	'50%/50%
Shares of common stock issued during period (in shares)	44,798
Options exercised (in shares)	51,000
Stock swap to acquire options (in shares)	6,202
Net proceeds from issuance of common shares along with shares received in stock swap exercises	$48,025
Minimum [Member]	'
Expected term	'3 years
Risk free interest rate	0.34%
Maximum [Member]	'
Expected term	'5 years
Risk free interest rate	0.40%

INCOME_TAXES_Details_Narrative

INCOME TAXES (Details Narrative) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013
Income Taxes Details Narrative	'
Provision for current income taxes	$0
Net operating loss carryforwards	$7,200
Effective tax rate (in hundredths)	33.90%

COMMITMENTS_CONTINGENCIES_AND_1

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Details) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Future minimum lease payments under operating leases	'
2013	$37
2014	12
Total	$49

COMMITMENTS_CONTINGENCIES_AND_2

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Details 1) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Commitments Contingencies And Concentrations Details 1	'
2013	$32
2014	73
Total	$105

COMMITMENTS_CONTINGENCIES_AND_3

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Details 2) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
2013	$999
2014	6,062
2015	786
2016	'
2017	'
2018	'
Employment Agreements [Member]	'
2013	242
2014	846
2015	786
2016	'
2017	'
2018	'
Purchase Commitments [Member]	'
2013	666
2014	1,901
2015	'
2016	'
2017	'
2018	'
Consulting Contracts [Member]	'
2013	18
2014	72
2015	'
2016	'
2017	'
2018	'
Long Term Debt [Member]	'
2013	73
2014	3,243
2015	'
2016	'
2017	'
2018	'

COMMITMENTS_CONTINGENCIES_AND_4

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Details 3)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Domestic [Member]	'	'
Derived revenue Percent	82.20%	81.20%
Foreign [Member]	'	'
Derived revenue Percent	17.80%	18.80%

COMMITMENTS_CONTINGENCIES_AND_5

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Monthly payments under operating leases	'	'	$14,000	'
Operating leases, rent expense	'	'	117,000	139,000
Sales	$5,794	$6,671	$17,532	$20,843
Two Customers [Member]	'	'	'	'
Percent in excess of total sales	'	'	10.00%	'
Net accounts receivable due, percent	'	'	25.40%	'
First Customer [Member]	'	'	'	'
Customers accounted for sales percentage	'	'	11.80%	'
Second Customer [Member]	'	'	'	'
Customers accounted for sales percentage	'	'	11.70%	'
Third Customer [Member]	'	'	'	'
Customers accounted for sales percentage	'	'	10.50%	'

RELATED_PARTY_TRANSACTION_Deta

RELATED PARTY TRANSACTION (Details) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Approximate minimum retainer liability	'
2013	$18
2014	72
Total	$90

RELATED_PARTY_TRANSACTION_Deta1

RELATED PARTY TRANSACTION (Details Narrative) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Arik Zoran [Member]	'	'
Consulting fees	$188,100	$152,600
Yechiel Tsitrinovich [Member]	'	'
Consulting fees	$57,000	$61,400