\nElectromed, Inc. (\u201cElectromed\u201d) (NYSE American: ELMD), a leader in innovative airway clearance technologies, today announced financial results for the three months ended March 31, 2023 (\u201cQ3 FY 2023\u201d).<\/p>\n
Q3 FY 2023 Highlights<\/b><\/p>\n \n\u201cI\u2019m very pleased to report 19% revenue growth in the third quarter of fiscal year 2023 coupled with net income growth that further demonstrates that our investments in growth are yielding strong results,\u201d said Kathleen Skarvan, President and Chief Executive Officer. \u201cOur revenue growth was driven by strong referral growth, improved productivity by our expanded sales team and the recent launch to the homecare market of our next generation SmartVest Clearway.\u201d<\/p>\n \nMs. Skarvan continued, \u201cOur SmartVest Clearway has been received very positively by clinicians and patients due to its state-of-the-art patient experience with a simple touch screen user interface, remote monitoring of data, and is the lightest HFCWO generator on the market. We believe that Electromed is well-positioned for growth and profitability in calendar 2023.\u201d<\/p>\n Fiscal Third Quarter Results<\/b><\/p>\n \nNet revenues for Q3 FY 2023 increased by 19% year-over-year to $12.1 million, compared with $10.1 million in the same period the prior year. The increase over the prior year was driven by an increase in referrals and approvals due to an expanded sales force and reimbursement team.<\/p>\n \nHome care revenue increased by $1,938,000, or 21.5%, for the three months ended March 31, 2023 compared to the same period in the prior year. The increase was primarily due to an increase in referrals and approvals. The increase in referrals was due to an increase in direct sales representatives as well as positive market momentum from the introduction of our newest generation SmartVest Clearway in the quarter and was partially offset by a temporary interruption in supply chain and associated operations in the quarter. Field sales force employees totaled 57 at quarter end, 48 of which were direct sales representatives. Sales productivity remained within our expected range during the quarter, with annualized home care revenues per direct sales representative at $908,000, within Electromed\u2019s target range of $850,000 to $950,000.<\/p>\n \nGross profit increased to $9,056,000, or 75.0% of net revenues, for the three months ended March 31, 2023, from $7,743,000, or 76.4% of net revenues, in the same period in the prior year. The decrease in gross profit as a percentage of net revenues compared to the same period in the prior year was primarily due to increased material costs and component broker fees incurred to ramp up supply for the Clearway product.<\/p>\n \nSelling, general and administrative (\u201cSG&A\u201d) expenses were $7,694,000 for the three months ended March 31, 2023, representing an increase of $1,150,000, or 17.6%, compared to the same period in the prior year. The increase in SG&A expense was primarily due to increased payroll and compensation expense related to the higher average number of sales, sales support, marketing, and reimbursement personnel to process higher patient referrals.<\/p>\n \nOperating income for the three months ended March 31, 2023 was $1,196,000, compared to $863,000 for the same period in the prior year. The increase in operating income was driven primarily by revenue growth and a decrease in Research & Development expenses but partially offset by increased SG&A expenses related to our sales and reimbursement investments, as well as increased material costs and broker fees incurred to accelerate the ramp up supply for the Clearway product.<\/p>\n \nNet income for the three months ended March 31, 2023 was $1,075,000, or $0.12 per diluted share, compared to $645,000, or $0.07 per diluted share, for the same period in the prior year.<\/p>\n \nAs of March 31, 2023, Electromed had $6.8 million in cash, $22.3 million in accounts receivable, working capital of $28.8 million, and total shareholders\u2019 equity of $36.4 million.<\/p>\n Conference Call and Webcast Information<\/b><\/p>\n \nThe conference call will be held at 5:00 p.m. Eastern Time on Tuesday, May 9, 2023.<\/p>\n \nInterested parties may participate in the call by dialing (888) 999-5318 (Domestic) or (848) 280-6460 (International). The live conference call webcast will be accessible in the Investor Relations section of Electromed\u2019s web site and directly via the following link: Fiscal Third Quarter Earnings Webcast<\/a>.<\/p>\n \nFor those who cannot listen to the live broadcast, a replay will be available by dialing (844) 512-2921 (Domestic) or (412) 317-6671 (International) and referencing the replay pin number 0151926. Additionally, an online replay will be available in the Investor Relations section of Electromed\u2019s web site at: http:\/\/investors.smartvest.com\/<\/a>.<\/p>\n About Electromed, Inc.<\/b><\/p>\n \nElectromed, Inc. manufactures, markets, and sells products that provide airway clearance therapy, including the SmartVest\u00ae Airway Clearance System, to patients with compromised pulmonary function. It is headquartered in New Prague, Minnesota, and was founded in 1992. Further information about Electromed can be found at www.smartvest.com<\/a>.<\/p>\n Cautionary Statements<\/b><\/p>\n Certain statements in this press release constitute forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by words such as \u201canticipate,\u201d \u201cassume,\u201d \u201cbelieve,\u201d \u201ccontinue,\u201d \u201cexpect,\u201d \u201cmay,\u201d \u201cpotential,\u201d \u201cshould,\u201d \u201cwill,\u201d and similar expressions, including the negative of these terms, but they are not the exclusive means of identifying such statements. Forward-looking statements cannot be guaranteed, and actual results may vary materially due to the uncertainties and risks, known or unknown associated with such statements. Examples of risks and uncertainties for Electromed include, but are not limited to, component or raw material shortages, changes to lead times or significant price increases, changes to Medicare, Medicaid, or private insurance reimbursement policies; the duration, extent and severity of the COVID-19 pandemic, including its effects on our business, supply chain, operations and employees as well as its impact on our customers and distribution channels and on economies and markets more generally; the competitive nature of our market; changes to state and federal health care laws; changes affecting the medical device industry; our ability to develop new sales channels for our products such as the homecare distributor channel; our need to maintain regulatory compliance and to gain future regulatory approvals and clearances; new drug or pharmaceutical discoveries; general economic and business conditions; our ability to renew our line of credit or obtain additional credit as necessary; our ability to protect and expand our intellectual property portfolio; the risks associated with expansion into international markets, as well as other factors we may describe from time to time in Electromed\u2019s reports filed with the Securities and Exchange Commission (including Electromed\u2019s most recent Annual Report on Form 10-K, as amended from time to time, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K). Investors should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties or potentially inaccurate assumptions investors should take into account when making investment decisions. Shareholders and other readers should not place undue reliance on \u201cforward-looking statements,\u201d as such statements speak only as of the date of this press release. We undertake no obligation to update them in light of new information or future events.<\/i><\/p>\n \nSource: Electromed, Inc.<\/p>\n Financial Tables Follow:<\/b><\/p>\n Electromed, Inc.<\/b><\/p>\n \n\u00a0<\/p>\n Condensed Balance Sheets<\/b><\/p>\n<\/td>\n<\/tr>\n March 31, 2023<\/b><\/p>\n<\/td>\n June 30,<\/b><\/p>\n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n (Unaudited)<\/b><\/p>\n<\/td>\n Assets<\/b><\/p>\n<\/td>\n \nCurrent Assets<\/p>\n<\/td>\n \nCash and cash equivalents<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n6,776,000<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n8,153,000<\/p>\n<\/td>\n<\/tr>\n \nAccounts receivable (net of allowances for doubtful accounts of $45,000)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n22,345,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n21,052,000<\/p>\n<\/td>\n<\/tr>\n \nContract assets<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n570,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n286,000<\/p>\n<\/td>\n<\/tr>\n \nInventories<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,451,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,178,000<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nPrepaid expenses and other current assets<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,808,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,870,000<\/p>\n<\/td>\n<\/tr>\n \nIncome tax receivable<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n219,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n<\/tr>\n Total current assets<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n35,169,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n34,539,000<\/p>\n<\/td>\n<\/tr>\n \nProperty and equipment, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5,502,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n4,568,000<\/p>\n<\/td>\n<\/tr>\n \nFinite-life intangible assets, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n604,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n599,000<\/p>\n<\/td>\n<\/tr>\n \nOther assets<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n60,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n120,000<\/p>\n<\/td>\n<\/tr>\n \nDeferred income taxes<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,506,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,538,000<\/p>\n<\/td>\n<\/tr>\n Total assets<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n42,841,000<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n41,364,000<\/p>\n<\/td>\n<\/tr>\n Liabilities and Shareholders’ Equity<\/b><\/p>\n<\/td>\n \nCurrent Liabilities<\/p>\n<\/td>\n \nAccounts payable<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,289,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,261,000<\/p>\n<\/td>\n<\/tr>\n \nAccrued compensation<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,082,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,742,000<\/p>\n<\/td>\n<\/tr>\n \nIncome tax payable<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n51,000<\/p>\n<\/td>\n<\/tr>\n \nWarranty reserve<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,333,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,256,000<\/p>\n<\/td>\n<\/tr>\n \nOther accrued liabilities<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,713,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,840,000<\/p>\n<\/td>\n<\/tr>\n Total current liabilities<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,417,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7,150,000<\/p>\n<\/td>\n<\/tr>\n \nOther long-term liabilities<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n30,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n41,000<\/p>\n<\/td>\n<\/tr>\n Total liabilities<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,447,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7,191,000<\/p>\n<\/td>\n<\/tr>\n \nCommitments and Contingencies<\/p>\n<\/td>\n \nShareholders’ Equity<\/p>\n<\/td>\n \nCommon stock, $0.01 par value per share, 13,000,000 shares authorized;<\/p>\n<\/td>\n \n8,556,600 and 8,475,438 shares issued and outstanding, as of March 31, 2023 and June 30, 2022, respectively<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n86,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n85,000<\/p>\n<\/td>\n<\/tr>\n \nAdditional paid-in capital<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n18,548,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n18,308,000<\/p>\n<\/td>\n<\/tr>\n \nRetained earnings<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n17,760,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n15,780,000<\/p>\n<\/td>\n<\/tr>\n Total shareholders’ equity<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n36,394,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n34,173,000<\/p>\n<\/td>\n<\/tr>\n Total liabilities and shareholders’ equity<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n42,841,000<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n41,364,000<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Electromed, Inc.<\/b><\/p>\n \n\u00a0<\/p>\n Condensed Statements of Operations (Unaudited)<\/b><\/p>\n<\/td>\n<\/tr>\n Three Months Ended<\/b><\/p>\n<\/td>\n Nine Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n March 31,<\/b><\/p>\n<\/td>\n March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n 2023<\/b><\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n \nNet revenues<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n12,068,000<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n10,141,000<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n34,455,000<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n30,390,000<\/p>\n<\/td>\n<\/tr>\n \nCost of revenues<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,012,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,398,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,386,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7,066,000<\/p>\n<\/td>\n<\/tr>\n Gross profit<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n9,056,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7,743,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n26,069,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n23,324,000<\/p>\n<\/td>\n<\/tr>\n \nOperating expenses<\/p>\n<\/td>\n \nSelling, general and administrative<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7,694,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,544,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n22,937,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n19,806,000<\/p>\n<\/td>\n<\/tr>\n \nResearch and development<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n166,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n336,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n618,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,041,000<\/p>\n<\/td>\n<\/tr>\n Total operating expenses<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7,860,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,880,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n23,555,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n20,847,000<\/p>\n<\/td>\n<\/tr>\n Operating income<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,196,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n863,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,514,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,477,000<\/p>\n<\/td>\n<\/tr>\n \nInterest income, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n26,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n37,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n21,000<\/p>\n<\/td>\n<\/tr>\n Net income before income taxes<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,222,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n869,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,551,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2,498,000<\/p>\n<\/td>\n<\/tr>\n \nIncome tax expense<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n147,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n224,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n418,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n576,000<\/p>\n<\/td>\n<\/tr>\n Net income<\/b><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,075,000<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n645,000<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n2,133,000<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,922,000<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nIncome per share:<\/p>\n<\/td>\n \nBasic<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.13<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.08<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.25<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.23<\/p>\n<\/td>\n<\/tr>\n \nDiluted<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.12<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.07<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.25<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.22<\/p>\n<\/td>\n<\/tr>\n \nWeighted-average common shares outstanding:<\/p>\n<\/td>\n \nBasic<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,461,531<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,454,504<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,449,623<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,485,856<\/p>\n<\/td>\n<\/tr>\n \nDiluted<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,710,106<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,744,535<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,694,407<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,762,963<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Electromed, Inc.<\/b><\/p>\n \n\u00a0<\/p>\n Condensed Statements of Cash Flows (Unaudited)<\/b><\/p>\n<\/td>\n<\/tr>\n Nine Months Ended March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n 2023<\/b><\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n \nCash Flows From Operating Activities<\/p>\n<\/td>\n \nNet income<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n2,133,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,922,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAdjustments to reconcile net income to net cash provided by operating activities:<\/p>\n<\/td>\n \nDepreciation<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n370,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n368,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAmortization of finite-life intangible assets<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n52,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n105,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nShare-based compensation expense<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n506,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n703,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nDeferred income taxes<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n32,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n15,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nChanges in operating assets and liabilities:<\/p>\n<\/td>\n \nAccounts receivable<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1,293,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2,582,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nContract assets<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(284,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n98,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nInventories<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(264,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n9,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nPrepaid expenses and other assets<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n105,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(519,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nIncome tax receivable, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(270,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(443,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nAccounts payable and accrued liabilities<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(111,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n550,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAccrued compensation<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(660,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(173,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n Net cash provided by operating activities<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n316,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n53,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCash Flows From Investing Activities<\/p>\n<\/td>\n \nInvestment in property and equipment<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1,221,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(980,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nInvestment in finite-life intangible assets<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(54,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(86,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n Net cash used in investing activities<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1,275,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1,066,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nCash Flows From Financing Activities<\/p>\n<\/td>\n \nIssuance of common stock upon exercise of options<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n40,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTaxes paid on stock options exercised on a net basis<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(305,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(70,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nRepurchase of common stock<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(153,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(962,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n Net cash used in financing activities<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(418,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1,032,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n Net (decrease) increase in cash<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1,377,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(2,045,000<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nCash And Cash Equivalents<\/p>\n<\/td>\n \nBeginning of period<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,153,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n11,889,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nEnd of period<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n6,776,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n9,844,000<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\u00a0<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20230509005307\/en\/<\/a><\/span><\/p>\n \nBrad Nagel, Chief Financial Officer\n
\n
\n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n <\/tr>\n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/p>\n
\n
(952) 758-9299
\n
investorrelations@electromed.com
\n<\/a><\/p>\n