Electromed(ELMD) - 2025 Q1 - Quarterly Report

Revenue Growth - Homecare revenue increased by $2,058,000, or 18.5$13,211,000 for the three months ended September 30, 2024[55] - Hospital revenue increased by $183,000, or 36.1$690,000 for the three months ended September 30, 2024[57] - Total revenue increased by $2,344,000, or 19.0$14,668,000 for the three months ended September 30, 2024[55] Profitability - Gross profit increased to $11,491,000, or 78.3$1,796,000 to $1,938,000 for the three months ended September 30, 2024[67] - Net income for the three months ended September 30, 2024, was$1,474,000 compared to $155,000 for the same period in the prior year[70] Cash Flow and Liquidity - Cash flows from operating activities were$2,309,000 for the three months ended September 30, 2024[71] - The company maintains a working capital of approximately $33,591,000, which is expected to meet liquidity needs for the next twelve months[74] - The line of credit available as of September 30, 2024, was$2,500,000, with no outstanding principal balance[75] Risks and Challenges - The company faces risks related to component or raw material shortages, changes to lead times, and significant price increases[82] - Regulatory compliance and the ability to gain future regulatory approvals are critical for the company's operations[82] - The company is concerned about the entry of new competitors and adverse economic conditions impacting its market position[82] - Cybersecurity threats such as data breaches and computer viruses pose risks to the company's operations[82] - The company acknowledges the potential impact of adverse international healthcare regulations on its business[82] Strategic Focus - The company emphasizes the importance of obtaining reimbursement from Medicare, Medicaid, and private insurance payers for its products[82] - The company is focused on developing new sales channels, including the homecare distributor channel[82] - The company is committed to protecting and expanding its intellectual property portfolio[82] Forward-Looking Statements - The company does not plan to update forward-looking statements unless required by law[83] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[85]