Electromed(ELMD) - 2024 Q4 - Annual Report

Revenue Growth - Homecare revenue increased by $5,558,000, or 12.6$455,000, or 21.9%, in fiscal 2024, attributed to increased sales representatives and higher demand for capital and disposable products [103]. - Total revenue for fiscal 2024 was $54,716,000, an increase of$6,649,000 or 13.8% from $48,067,000 in fiscal 2023 [102]. - Other revenue surged by$402,000, or 94.8%, in fiscal 2024, mainly due to increased international distributor purchases [105]. Profitability - Gross profit increased to $41,726,000, representing 76.3$36,519,000 or 76.0% in fiscal 2023 [106]. - Net income for fiscal 2024 was $5,150,000, a 62.7$3,166,000 in fiscal 2023, driven by revenue growth and decreased professional fees [113]. Expenses - Selling, general and administrative expenses rose by $2,894,000, or 9.2$34,489,000 in fiscal 2024 [106]. - SG&A payroll and compensation-related expenses increased by $2,885,000, or 14.0$23,437,000 in fiscal 2024, reflecting higher compensation for sales and support personnel [107]. - Research and development expenses decreased by $260,000, or 28.4$656,000 in fiscal 2024, primarily due to reduced costs associated with the SmartVest Clearway platform development [110]. Cash Flow and Investments - Cash flows from operating activities provided $9,067,000 in fiscal 2024, consisting of net income and various adjustments, despite decreases in accounts payable and accrued liabilities [114]. - Net cash used in investing activities was approximately$395,000 in fiscal 2024, including $287,000 for property and equipment expenditures [115]. - The company spent approximately$287,000 on property and equipment in fiscal 2024, significantly lower than $1,648,000 in fiscal 2023 [120]. - The company expects to finance planned equipment purchases through cash flows from operations or borrowings under the credit facility [120]. Financial Position - The company has approximately$36,496,000 in working capital, which is expected to meet liquidity needs for at least the next twelve months [117]. - The renewed credit facility provides a revolving line of credit with a maximum borrowing limit of $2,500,000, secured by a security interest in the company's assets [118]. - The company is subject to financial covenants under its credit facility, including a minimum tangible net worth of$10,125,000 [119]. Taxation - The effective tax rate for fiscal 2024 was 26.8%, up from 22.5% in fiscal 2023, influenced by state income taxes and R&D tax credits [113]. Future Plans - The company plans to expand its sales force by adding three territories and direct sales representatives to accelerate revenue growth in fiscal 2025 [91]. - The company experienced increased lead times and material costs in the supply chain during fiscal 2023, but expects a return to normal lead times in fiscal 2024 [92]. - Net interest income increased to approximately $455,000 in fiscal 2024 from$78,000 in fiscal 2023, primarily due to higher savings rates on increased cash balances [112].