NEW PRAGUE, Minn.–(BUSINESS WIRE)–Electromed, Inc. (“Electromed” or the “Company”) (NYSE American: ELMD), a frontrunner in progressive airway clearance applied sciences, at the moment introduced monetary outcomes for the three months ended December 31, 2020 (“Q2 FY 2021”).

Q2 FY 2021 Highlights

  • Net income elevated 11.1% to $9.5 million, in comparison with $8.5 million in the course of the three months ended December 31, 2019 (“Q2 FY 2020”), pushed by a 16.1% improve in dwelling care income.
  • Gross revenue proportion elevated to 79.2% of web income, in comparison with 78.1% in Q2 FY 2020, primarily resulting from a better mixture of dwelling care income and a good mixture of Medicare inside dwelling care.
  • Net earnings equaled $1.2 million, or $0.13 per diluted share, in comparison with $1.2 million, or $0.14 per diluted share, in Q2 FY 2020, and displays elevated strategic investments in each R&D and SG&A.
  • Cash as of December 31, 2020 was $11.7 million, benefiting from $669,000 in working money stream in Q2 FY 2021.

Kathleen Skarvan, President and Chief Executive Officer of Electromed, commented, “In the second quarter we continued to adapt successfully to healthcare system disruption caused by the COVID-19 pandemic. Our strong execution of a hybrid virtual and face-to-face selling approach combined with the ability for prescribers to more easily provide care via the provisional CMS waiver drove a 16.1% increase in home care revenue compared to the prior year period. The home care success more than offset the ongoing challenges to the other markets of our business negatively impacted by the pandemic, most clearly seen in the year over year decline in the institutional market. However, compared to the first quarter of our current fiscal year our business benefited from increased face-to-face interaction between patients and physicians and improved access to clinics for our sales staff.”

Ms. Skarvan concluded, “We are encouraged by this quarter’s strong financial results and pleased with our sales team’s execution and ability to adapt to ever changing conditions in the market due to the COVID-19 pandemic. While we continue to operate within the constraints of a pandemic, we are cautiously optimistic about our prospects for continued revenue growth in the second half of fiscal 2021. Against this backdrop, we continue to fund strategic investments for our long-term growth, including research and development on our next generation device for HFCWO therapy and expanding our direct-to-patient marketing to increase awareness of bronchiectasis and SmartVest® as an effective treatment. During this pandemic, our priority continues to be the health, safety and well-being of our teammates, clinicians and patients, while executing on our strategy to gain greater share of the large, underpenetrated bronchiectasis market. We are well positioned to succeed given our strong balance sheet, excellent cash flow profile and differentiated SmartVest® Airway Clearance System.”

Q2 FY 2021 Review

Net income in Q2 FY 2021 elevated 11.1% to $9.5 million, from $8.5 million in Q2 FY 2020. Home care income elevated 16.1% to $8.9 million in Q2 FY 2021 from $7.7 million in Q2 FY 2020. Field gross sales staff totaled 45, of which 38 had been direct gross sales, on the finish of Q2 FY 2021, in comparison with 40 on the finish of Q2 FY 2020, of which 34 had been direct gross sales. Institutional income decreased 37.4% to $309,000 from $494,000 in Q2 FY 2020, primarily resulting from a lower within the quantity of units and disposable wraps bought resulting from COVID-19’s continued impression on hospital buying exercise. Home care distributor income elevated 13.7% to $149,000 from $131,000 in Q2 FY 2020. International income decreased 46.6% to $135,000 from $253,000 in Q2 FY 2020.

Gross revenue in Q2 FY 2021 totaled $7.5 million, or 79.2% of web income, in comparison with $6.7 million, or 78.1% of web income, in Q2 FY 2020. The improve in gross revenue proportion was primarily resulting from a better mixture of dwelling care income and a good mixture of Medicare inside dwelling care.

Selling, common and administrative (“SG&A”) bills in Q2 FY 2021 elevated 9.5% to $5.4 million from $5.0 million in Q2 FY 2020. The improve in SG&A spending was primarily resulting from elevated payroll and compensation-related bills related to increased incentive funds on stronger dwelling care income and better common gross sales and advertising headcount, in addition to elevated direct-to-consumer advertising bills, partially offset by decrease journey, meals and leisure bills. As a proportion of income, SG&A bills had been 57.2%, in comparison with 58.1% in Q2 FY 2020. Research and improvement bills elevated to $507,000 from $143,000 in Q2 FY 2020, primarily as a result of improvement of a subsequent era platform. As a proportion of income, R&D bills had been 5.3% in comparison with 1.7% in Q2 FY 2020.

Net earnings earlier than earnings taxes totaled $1.6 million in Q2 FY 2021, in comparison with $1.6 million in Q2 FY 2020, and displays elevated strategic investments in each R&D and SG&A.

Net earnings was $1.2 million, or $0.13 per diluted share, in comparison with $1.2 million, or $0.14 per diluted share, in Q2 FY 2020. In Q2 FY 2021, earnings tax expense totaled $389,000, in comparison with an earnings tax expense of $419,000 in the identical interval of the prior 12 months.

Year-to-Date FY 2021 Summary

For the six months ended December 31, 2020, web income grew 3.9% to $17.5 million, from $16.8 million in the identical interval of fiscal 2020. The income improve was primarily resulting from development in our dwelling care market, partially offset by decrease institutional income. Gross revenue proportion was 78.1%, in comparison with 77.3% within the prior fiscal 12 months interval. The gross margin proportion improve was primarily resulting from a better mixture of dwelling care income and a good mixture of Medicare inside dwelling care. Net earnings was roughly $1.7 million, or $0.19 per diluted share, in comparison with roughly $2.2 million, or $0.25 per diluted share, within the first six months of fiscal 2020. The web earnings lower was primarily resulting from elevated strategic investments in R&D and SG&A.

Financial Condition

The Company’s steadiness sheet at December 31, 2020 included money of $11.7 million, accounts receivable of $15.4 million, no debt, working capital of $27.4 million, and shareholders’ fairness of $32.3 million.

Conference Call

Management will host a convention name on Tuesday, February 9, 2021 at 4:00 pm CT (5:00 pm ET) to debate Q2 FY 2021 monetary outcomes and different issues.

Interested events could take part within the name by dialing:

  • (877) 407-9753 (Domestic)
  • (201) 493-6739 (International)

The convention name additionally will probably be accessible by way of the next hyperlink: https://78449.themediaframe.com/dataconf/productusers/elctr/mediaframe/43323/indexl.html

For those that can’t take heed to the dwell broadcast, a web-based webcast replay will probably be accessible within the Investor Relations part of the Company’s website online at: https://investors.smartvest.com/

About Electromed, Inc.

Electromed, Inc. manufactures, makes, and sells merchandise that present airway clearance remedy, together with the SmartVest® Airway Clearance System, to sufferers with compromised pulmonary operate. The Company is headquartered in New Prague, Minnesota and was based in 1992. Further details about the Company might be discovered at www.smartvest.com.

Cautionary Statements

Certain statements on this press launch represent forward-looking statements as outlined within the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can usually be recognized by phrases resembling “believe,” “intend,” “may,” “potential,” “should,” “will,” and comparable expressions, together with the adverse of those phrases, however they don’t seem to be the unique technique of figuring out such statements. Forward-looking statements can’t be assured, and precise outcomes could range materially as a result of uncertainties and dangers, identified or unknown related to such statements. Examples of dangers and uncertainties for the Company embody, however will not be restricted to, the length, extent and severity of the COVID-19 pandemic, together with its results on our enterprise, operations and staff in addition to its impression on our clients and distribution channels and on economies and markets extra usually; the aggressive nature of our market; adjustments to Medicare, Medicaid, or personal insurance coverage reimbursement insurance policies; adjustments to state and federal well being care legal guidelines; adjustments affecting the medical gadget business; our capacity to develop new gross sales channels for our merchandise such because the Home Care distributor channel; our want to take care of regulatory compliance and to realize future regulatory approvals and clearances; new drug or pharmaceutical discoveries; common financial and enterprise situations; our capacity to resume our line of credit score or receive further credit score as mandatory; our capacity to guard and broaden our mental property portfolio; the dangers related to growth into worldwide markets, in addition to different elements we could describe once in a while within the Company’s experiences filed with the Securities and Exchange Commission (together with the Company’s most up-to-date Annual Report on Form 10-Okay, as amended once in a while, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-Okay). Investors shouldn’t contemplate any listing of such elements to be an exhaustive assertion of all the dangers, uncertainties or probably inaccurate assumptions buyers ought to bear in mind when making funding choices. Shareholders and different readers shouldn’t place undue reliance on “forward-looking statements,” as such statements converse solely as of the date of this press launch. We undertake no obligation to replace them in gentle of latest data or future occasions.

Financial Tables Follow:

Electromed, Inc.

Condensed Balance Sheets

 

 

December 31, 2020

 

June 30, 2020

 

(Unaudited)

 

 

Assets

 

 

 

Current Assets

 

 

 

Cash

$

11,742,115

 

$

10,479,150

Accounts receivable (web of allowances for uncertain accounts of $45,000)

 

15,395,124

 

 

12,940,677

Contract property

 

696,993

 

 

902,619

Inventories, web

 

2,603,495

 

 

3,084,620

Prepaid bills and different present property

 

381,763

 

 

353,318

Income tax receivable

 

76,271

 

 

262,155

Total present property

 

30,895,761

 

 

28,022,539

Property and gear, web

 

3,583,374

 

 

3,788,469

Finite-life intangible property, web

 

622,697

 

 

598,389

Other property

 

43,792

 

 

80,166

Deferred earnings taxes

 

678,000

 

 

755,000

Total property

$

35,823,624

 

$

33,244,563

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

Current Liabilities

 

 

 

Current maturities of different long-term liabilities

$

40,455

 

$

72,328

Accounts payable

 

722,905

 

 

555,510

Accrued compensation

 

1,823,742

 

 

1,404,497

Warranty reserve

 

770,000

 

 

740,000

Other accrued liabilities

 

128,859

 

 

214,045

Total present liabilities

 

3,485,961

 

 

2,986,380

Other long-term liabilities

 

3,929

 

 

8,868

Total liabilities

 

3,489,890

 

 

2,995,248

 

Commitments and Contingencies

 

 

 

 

Shareholders’ Equity

 

 

 

Common inventory, $0.01 par worth per share, 13,000,000 shares approved; 8,635,045 and eight,567,834 shares issued and excellent, respectively

 

86,350

 

 

85,678

Additional paid-in capital

 

16,825,192

 

 

16,480,134

Retained earnings

 

15,422,192

 

 

13,683,503

Total shareholders’ fairness

 

32,333,734

 

 

30,249,315

Total liabilities and shareholders’ fairness

$

35,823,624

 

$

33,244,563

Electromed, Inc.

Condensed Statements of Operations

(Unaudited)

 

 

Three Months Ended

December 31,

 

 

 

Six Months Ended

December 31,

 

 

2020

 

 

 

2019

 

 

 2020

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

$

9,496,073

 

 

$

8,546,942

 

 

$

17,500,245

 

$

16,849,440

Cost of revenues

 

1,970,830

 

 

 

1,871,434

 

 

3,826,780

 

 

3,831,584

Gross revenue

 

7,525,243

 

 

 

6,675,508

 

 

13,673,465

 

 

13,017,856

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating bills

 

 

 

 

 

 

 

 

 

 

 

 

Selling, common and administrative

 

5,435,025

 

 

 

4,965,053

 

 

10,439,205

 

 

9,859,858

Research and improvement

 

507,497

 

 

 

143,477

 

 

988,556

 

 

242,414

Total working bills

 

5,942,522

 

 

 

5,108,530

 

 

11,427,761

 

 

10,102,272

Operating earnings

 

1,582,721

 

 

 

1,566,978

 

 

2,245,704

 

 

2,915,584

Interest earnings, web

 

9,706

 

 

 

37,078

 

 

18,985

 

 

77,028

Net earnings earlier than earnings taxes

 

1,592,427

 

 

 

1,604,056

 

 

2,264,689

 

 

2,992,612

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

389,000

 

 

 

419,000

 

526,000

 

 

793,000

Net earnings

$

1,203,427

 

 

$

1,185,056

 

 

1,738,689

 

$

2,199,612

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.14

 

 

$

0.14

 

 

0.20

 

$

0.26

Diluted

$

0.13

 

$

0.14

 

 

0.19

 

$

0.25

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average widespread shares excellent:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

8,570,313

 

 

 

8,390,125

 

 

8,560,590

 

 

8,384,807

Diluted

 

8,924,861

 

 

 

8,759,143

 

 

8,926,182

 

 

8,698,168

 

Electromed, Inc.

Condensed Statements of Cash Flows

(Unaudited)

 

 

Six Months Ended December 31,

 

 

2020

 

 

 

2019

 

Cash Flows From Operating Activities

 

 

 

Net earnings

$

1,738,689

 

 

$

2,199,612

 

Adjustments to reconcile web earnings to web money offered by working actions:

 

 

 

Depreciation

 

250,489

 

 

 

318,982

 

Amortization of finite-life intangible property

 

65,074

 

 

 

60,219

 

Share-based compensation expense

 

429,776

 

 

 

444,258

 

Deferred earnings taxes Changes in working property and liabilities:

 

77,000

 

 

 

18,000

 

Loss on disposal of property and gear Changes in working property and liabilities:

 

 

 

 

1,294

 

Changes in working property and liabilities:

 

Accounts receivable

 

(2,454,447

)

 

 

41,822

 

Contract property

 

205,626

 

 

 

(194,963

)

Inventories

 

490,430

 

 

 

(19,448

)

Prepaid bills and different property

 

7,929

 

 

 

76,213

 

Income tax receivable

 

185,884

 

 

 

(206,489

)

Income tax payable

 

 

 

 

(288,511

)

Accounts payable and accrued liabilities

 

494,429

 

 

 

(427,390

)

Net money offered by working actions

 

1,490,879

 

 

 

2,023,599

 

 

 

 

 

Cash Flows From Investing Activities

 

 

 

Expenditures for property and gear

 

(53,778

)

 

 

(669,842

)

Expenditures for finite-life intangible property

 

(90,090

)

 

 

(30,899

)

Net money utilized in investing actions

 

(143,868

)

 

 

(700,741

)

 

 

 

 

Cash Flows From Financing Activities

 

 

 

Issuance of widespread inventory upon train of choices

 

45,669

 

 

 

75,936

 

Taxes paid on web share settlement of inventory choice workout routines

 

(129,715

)

 

 

 

Net money offered by (utilized in) financing actions

 

(84,046

)

 

 

75,936

 

Net improve in money

 

1,262,965

 

 

 

1,398,794

 

Cash

 

 

 

Beginning of interval

 

10,479,150

 

 

 

7,807,928

 

End of interval

$

11,742,115

 

 

$

9,206,722

 

 

<p>NEW PRAGUE, Minn.--(BUSINESS WIRE)--Electromed, Inc. (“Electromed” or the “Company”) (NYSE American: ELMD), a frontrunner in progressive airway clearance applied sciences, at the moment introduced monetary outcomes for the three months ended December 31, 2020 (“Q2 FY 2021”).
</p>
<p>
Q2 FY 2021 Highlights </p> Net income elevated 11.1% to $9.5 million, in comparison with $8.5 million in the course of the three months ended December 31, 2019 (“Q2 FY 2020”), pushed by a 16.1% improve in dwelling care income. Gross revenue proportion elevated to 79.2% of web income, in comparison with 78.1% in Q2 FY 2020, primarily resulting from a better mixture of dwelling care income and a good mixture of Medicare inside dwelling care. Net earnings equaled $1.2 million, or $0.13 per diluted share, in comparison with $1.2 million, or $0.14 per diluted share, in Q2 FY 2020, and displays elevated strategic investments in each R&D and SG&A. Cash as of December 31, 2020 was $11.7 million, benefiting from $669,000 in working money stream in Q2 FY 2021. <p>
Kathleen Skarvan, President and Chief Executive Officer of Electromed, commented, “In the second quarter we continued to adapt successfully to healthcare system disruption caused by the COVID-19 pandemic. Our strong execution of a hybrid virtual and face-to-face selling approach combined with the ability for prescribers to more easily provide care via the provisional CMS waiver drove a 16.1% increase in home care revenue compared to the prior year period. The home care success more than offset the ongoing challenges to the other markets of our business negatively impacted by the pandemic, most clearly seen in the year over year decline in the institutional market. However, compared to the first quarter of our current fiscal year our business benefited from increased face-to-face interaction between patients and physicians and improved access to clinics for our sales staff.”
</p>
<p>
Ms. Skarvan concluded, “We are encouraged by this quarter’s strong financial results and pleased with our sales team’s execution and ability to adapt to ever changing conditions in the market due to the COVID-19 pandemic. While we continue to operate within the constraints of a pandemic, we are cautiously optimistic about our prospects for continued revenue growth in the second half of fiscal 2021. Against this backdrop, we continue to fund strategic investments for our long-term growth, including research and development on our next generation device for HFCWO therapy and expanding our direct-to-patient marketing to increase awareness of bronchiectasis and SmartVest® as an effective treatment. During this pandemic, our priority continues to be the health, safety and well-being of our teammates, clinicians and patients, while executing on our strategy to gain greater share of the large, underpenetrated bronchiectasis market. We are well positioned to succeed given our strong balance sheet, excellent cash flow profile and differentiated SmartVest® Airway Clearance System.”
</p>
<p>
Q2 FY 2021 Review
</p>
<p>
Net income in Q2 FY 2021 elevated 11.1% to $9.5 million, from $8.5 million in Q2 FY 2020. Home care income elevated 16.1% to $8.9 million in Q2 FY 2021 from $7.7 million in Q2 FY 2020. Field gross sales staff totaled 45, of which 38 had been direct gross sales, on the finish of Q2 FY 2021, in comparison with 40 on the finish of Q2 FY 2020, of which 34 had been direct gross sales. Institutional income decreased 37.4% to $309,000 from $494,000 in Q2 FY 2020, primarily resulting from a lower within the quantity of units and disposable wraps bought resulting from COVID-19’s continued impression on hospital buying exercise. Home care distributor income elevated 13.7% to $149,000 from $131,000 in Q2 FY 2020. International income decreased 46.6% to $135,000 from $253,000 in Q2 FY 2020.
</p>
<p>
Gross revenue in Q2 FY 2021 totaled $7.5 million, or 79.2% of web income, in comparison with $6.7 million, or 78.1% of web income, in Q2 FY 2020. The improve in gross revenue proportion was primarily resulting from a better mixture of dwelling care income and a good mixture of Medicare inside dwelling care.
</p>
<p>
Selling, common and administrative (“SG&A”) bills in Q2 FY 2021 elevated 9.5% to $5.4 million from $5.0 million in Q2 FY 2020. The improve in SG&A spending was primarily resulting from elevated payroll and compensation-related bills related to increased incentive funds on stronger dwelling care income and better common gross sales and advertising headcount, in addition to elevated direct-to-consumer advertising bills, partially offset by decrease journey, meals and leisure bills. As a proportion of income, SG&A bills had been 57.2%, in comparison with 58.1% in Q2 FY 2020. Research and improvement bills elevated to $507,000 from $143,000 in Q2 FY 2020, primarily as a result of improvement of a subsequent era platform. As a proportion of income, R&D bills had been 5.3% in comparison with 1.7% in Q2 FY 2020.
</p>
<p>
Net earnings earlier than earnings taxes totaled $1.6 million in Q2 FY 2021, in comparison with $1.6 million in Q2 FY 2020, and displays elevated strategic investments in each R&D and SG&A.
</p>
<p>
Net earnings was $1.2 million, or $0.13 per diluted share, in comparison with $1.2 million, or $0.14 per diluted share, in Q2 FY 2020. In Q2 FY 2021, earnings tax expense totaled $389,000, in comparison with an earnings tax expense of $419,000 in the identical interval of the prior 12 months.
</p>
<p>
Year-to-Date FY 2021 Summary
</p>
<p>
For the six months ended December 31, 2020, web income grew 3.9% to $17.5 million, from $16.8 million in the identical interval of fiscal 2020. The income improve was primarily resulting from development in our dwelling care market, partially offset by decrease institutional income. Gross revenue proportion was 78.1%, in comparison with 77.3% within the prior fiscal 12 months interval. The gross margin proportion improve was primarily resulting from a better mixture of dwelling care income and a good mixture of Medicare inside dwelling care. Net earnings was roughly $1.7 million, or $0.19 per diluted share, in comparison with roughly $2.2 million, or $0.25 per diluted share, within the first six months of fiscal 2020. The web earnings lower was primarily resulting from elevated strategic investments in R&D and SG&A.
</p>
<p>
Financial Condition
</p>
<p>
The Company’s steadiness sheet at December 31, 2020 included money of $11.7 million, accounts receivable of $15.4 million, no debt, working capital of $27.4 million, and shareholders’ fairness of $32.3 million.
</p>
<p>
Conference Call
</p>
<p>
Management will host a convention name on Tuesday, February 9, 2021 at 4:00 pm CT (5:00 pm ET) to debate Q2 FY 2021 monetary outcomes and different issues.
</p>
<p>
Interested events could take part within the name by dialing:
</p> (877) 407-9753 (Domestic) (201) 493-6739 (International) <p>
The convention name additionally will probably be accessible by way of the next hyperlink: https://78449.themediaframe.com/dataconf/productusers/elctr/mediaframe/43323/indexl.html
</p>
<p>
For those that can't take heed to the dwell broadcast, a web-based webcast replay will probably be accessible within the Investor Relations part of the Company’s website online at: https://investors.smartvest.com/
</p>
<p>
About Electromed, Inc.
</p>
<p>
Electromed, Inc. manufactures, makes, and sells merchandise that present airway clearance remedy, together with the SmartVest® Airway Clearance System, to sufferers with compromised pulmonary operate. The Company is headquartered in New Prague, Minnesota and was based in 1992. Further details about the Company might be discovered at www.smartvest.com.
</p>
<p>
Cautionary Statements
</p>
<p>
Certain statements on this press launch represent forward-looking statements as outlined within the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can usually be recognized by phrases resembling “believe,” “intend,” “may,” “potential,” “should,” “will,” and comparable expressions, together with the adverse of those phrases, however they don't seem to be the unique technique of figuring out such statements. Forward-looking statements can't be assured, and precise outcomes could range materially as a result of uncertainties and dangers, identified or unknown related to such statements. Examples of dangers and uncertainties for the Company embody, however will not be restricted to, the length, extent and severity of the COVID-19 pandemic, together with its results on our enterprise, operations and staff in addition to its impression on our clients and distribution channels and on economies and markets extra usually; the aggressive nature of our market; adjustments to Medicare, Medicaid, or personal insurance coverage reimbursement insurance policies; adjustments to state and federal well being care legal guidelines; adjustments affecting the medical gadget business; our capacity to develop new gross sales channels for our merchandise such because the Home Care distributor channel; our want to take care of regulatory compliance and to realize future regulatory approvals and clearances; new drug or pharmaceutical discoveries; common financial and enterprise situations; our capacity to resume our line of credit score or receive further credit score as mandatory; our capacity to guard and broaden our mental property portfolio; the dangers related to growth into worldwide markets, in addition to different elements we could describe once in a while within the Company’s experiences filed with the Securities and Exchange Commission (together with the Company’s most up-to-date Annual Report on Form 10-Okay, as amended once in a while, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-Okay). Investors shouldn't contemplate any listing of such elements to be an exhaustive assertion of all the dangers, uncertainties or probably inaccurate assumptions buyers ought to bear in mind when making funding choices. Shareholders and different readers shouldn't place undue reliance on “forward-looking statements,” as such statements converse solely as of the date of this press launch. We undertake no obligation to replace them in gentle of latest data or future occasions.
</p>
<p>
Financial Tables Follow:
</p> <p>
Electromed, Inc.
</p>
<p>
Condensed Balance Sheets
</p>   <p>
 
</p> <p>
December 31, 2020
</p> <p>
 
</p> <p>
June 30, 2020
</p> <p>
 
</p> <p>
(Unaudited)
</p> <p>
 
</p> <p>
 
</p> <p>
Assets
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Current Assets
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Cash
</p> <p>
$
</p> <p>
11,742,115
</p> <p>
 
</p> <p>
$
</p> <p>
10,479,150
</p> <p>
Accounts receivable (web of allowances for uncertain accounts of $45,000)
</p> <p>
 
</p> <p>
15,395,124
</p> <p>
 
</p> <p>
 
</p> <p>
12,940,677
</p> <p>
Contract property
</p> <p>
 
</p> <p>
696,993
</p> <p>
 
</p> <p>
 
</p> <p>
902,619
</p> <p>
Inventories, web
</p> <p>
 
</p> <p>
2,603,495
</p> <p>
 
</p> <p>
 
</p> <p>
3,084,620
</p> <p>
Prepaid bills and different present property
</p> <p>
 
</p> <p>
381,763
</p> <p>
 
</p> <p>
 
</p> <p>
353,318
</p> <p>
Income tax receivable
</p> <p>
 
</p> <p>
76,271
</p> <p>
 
</p> <p>
 
</p> <p>
262,155
</p> <p>
Total present property
</p> <p>
 
</p> <p>
30,895,761
</p> <p>
 
</p> <p>
 
</p> <p>
28,022,539
</p> <p>
Property and gear, web
</p> <p>
 
</p> <p>
3,583,374
</p> <p>
 
</p> <p>
 
</p> <p>
3,788,469
</p> <p>
Finite-life intangible property, web
</p> <p>
 
</p> <p>
622,697
</p> <p>
 
</p> <p>
 
</p> <p>
598,389
</p> <p>
Other property
</p> <p>
 
</p> <p>
43,792
</p> <p>
 
</p> <p>
 
</p> <p>
80,166
</p> <p>
Deferred earnings taxes
</p> <p>
 
</p> <p>
678,000
</p> <p>
 
</p> <p>
 
</p> <p>
755,000
</p> <p>
Total property
</p> <p>
$
</p> <p>
35,823,624
</p> <p>
 
</p> <p>
$
</p> <p>
33,244,563
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Liabilities and Shareholders’ Equity
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Current Liabilities
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Current maturities of different long-term liabilities
</p> <p>
$
</p> <p>
40,455
</p> <p>
 
</p> <p>
$
</p> <p>
72,328
</p> <p>
Accounts payable
</p> <p>
 
</p> <p>
722,905
</p> <p>
 
</p> <p>
 
</p> <p>
555,510
</p> <p>
Accrued compensation
</p> <p>
 
</p> <p>
1,823,742
</p> <p>
 
</p> <p>
 
</p> <p>
1,404,497
</p> <p>
Warranty reserve
</p> <p>
 
</p> <p>
770,000
</p> <p>
 
</p> <p>
 
</p> <p>
740,000
</p> <p>
Other accrued liabilities
</p> <p>
 
</p> <p>
128,859
</p> <p>
 
</p> <p>
 
</p> <p>
214,045
</p> <p>
Total present liabilities
</p> <p>
 
</p> <p>
3,485,961
</p> <p>
 
</p> <p>
 
</p> <p>
2,986,380
</p> <p>
Other long-term liabilities
</p> <p>
 
</p> <p>
3,929
</p> <p>
 
</p> <p>
 
</p> <p>
8,868
</p> <p>
Total liabilities
</p> <p>
 
</p> <p>
3,489,890
</p> <p>
 
</p> <p>
 
</p> <p>
2,995,248
</p> <p>
 
</p>
<p>
Commitments and Contingencies
</p>
<p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Shareholders’ Equity
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Common inventory, $0.01 par worth per share, 13,000,000 shares approved; 8,635,045 and eight,567,834 shares issued and excellent, respectively
</p> <p>
 
</p> <p>
86,350
</p> <p>
 
</p> <p>
 
</p> <p>
85,678
</p> <p>
Additional paid-in capital
</p> <p>
 
</p> <p>
16,825,192
</p> <p>
 
</p> <p>
 
</p> <p>
16,480,134
</p> <p>
Retained earnings
</p> <p>
 
</p> <p>
15,422,192
</p> <p>
 
</p> <p>
 
</p> <p>
13,683,503
</p> <p>
Total shareholders’ fairness
</p> <p>
 
</p> <p>
32,333,734
</p> <p>
 
</p> <p>
 
</p> <p>
30,249,315
</p> <p>
Total liabilities and shareholders’ fairness
</p> <p>
$
</p> <p>
35,823,624
</p> <p>
 
</p> <p>
$
</p> <p>
33,244,563
</p> <p>
Electromed, Inc.
</p>
<p>
Condensed Statements of Operations
</p>
<p>
(Unaudited)
</p>   <p>
 
</p> <p>
Three Months Ended
December 31,
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Six Months Ended
December 31,
</p> <p>
 
</p> <p>
 
</p> <p>
2020
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
2019
</p> <p>
 
</p> <p>
 
</p> <p>
 2020
</p> <p>
 
</p> <p>
2019
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Net revenues
</p> <p>
$
</p> <p>
9,496,073
</p> <p>
 
</p> <p>
 
</p> <p>
$
</p> <p>
8,546,942
</p> <p>
 
</p> <p>
 
</p> $ <p>
17,500,245
</p> <p>
 
</p> <p>
$
</p> <p>
16,849,440
</p> <p>
Cost of revenues
</p> <p>
 
</p> <p>
1,970,830
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
1,871,434
</p> <p>
 
</p> <p>
 
</p> <p>
3,826,780
</p> <p>
 
</p> <p>
 
</p> <p>
3,831,584
</p> <p>
Gross revenue
</p> <p>
 
</p> <p>
7,525,243
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
6,675,508
</p> <p>
 
</p> <p>
 
</p> <p>
13,673,465
</p> <p>
 
</p> <p>
 
</p> <p>
13,017,856
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Operating bills
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Selling, common and administrative
</p> <p>
 
</p> <p>
5,435,025
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
4,965,053
</p> <p>
 
</p> <p>
 
</p> <p>
10,439,205
</p> <p>
 
</p> <p>
 
</p> <p>
9,859,858
</p> <p>
Research and improvement
</p> <p>
 
</p> <p>
507,497
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
143,477
</p> <p>
 
</p> <p>
 
</p> <p>
988,556
</p> <p>
 
</p> <p>
 
</p> <p>
242,414
</p> <p>
Total working bills
</p> <p>
 
</p> <p>
5,942,522
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
5,108,530
</p> <p>
 
</p> <p>
 
</p> <p>
11,427,761
</p> <p>
 
</p> <p>
 
</p> <p>
10,102,272
</p> <p>
Operating earnings
</p> <p>
 
</p> <p>
1,582,721
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
1,566,978
</p> <p>
 
</p> <p>
 
</p> <p>
2,245,704
</p> <p>
 
</p> <p>
 
</p> <p>
2,915,584
</p> <p>
Interest earnings, web
</p> <p>
 
</p> <p>
9,706
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
37,078
</p> <p>
 
</p> <p>
 
</p> <p>
18,985
</p> <p>
 
</p> <p>
 
</p> <p>
77,028
</p> <p>
Net earnings earlier than earnings taxes
</p> <p>
 
</p> <p>
1,592,427
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
1,604,056
</p> <p>
 
</p> <p>
 
</p> <p>
2,264,689
</p> <p>
 
</p> <p>
 
</p> <p>
2,992,612
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Income tax expense
</p> <p>
 
</p> <p>
389,000
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
419,000
</p> <p>
 
</p> <p>
526,000
</p> <p>
 
</p> <p>
 
</p> <p>
793,000
</p> <p>
Net earnings
</p> <p>
$
</p> <p>
1,203,427
</p> <p>
 
</p> <p>
 
</p> <p>
$
</p> <p>
1,185,056
</p> <p>
 
</p> <p>
 
</p> <p>
1,738,689
</p> <p>
 
</p> <p>
$
</p> <p>
2,199,612
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Income per share:
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Basic
</p> <p>
$
</p> <p>
0.14
</p> <p>
 
</p> <p>
 
</p> <p>
$
</p> <p>
0.14
</p> <p>
 
</p> <p>
 
</p> <p>
0.20
</p> <p>
 
</p> <p>
$
</p> <p>
0.26
</p> <p>
Diluted
</p> <p>
$
</p> <p>
0.13
</p> <p>
 
</p> <p>
$
</p> <p>
0.14
</p> <p>
 
</p> <p>
 
</p> <p>
0.19
</p> <p>
 
</p> <p>
$
</p> <p>
0.25
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Weighted-average widespread shares excellent:
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Basic
</p> <p>
 
</p> <p>
8,570,313
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
8,390,125
</p> <p>
 
</p> <p>
 
</p> <p>
8,560,590
</p> <p>
 
</p> <p>
 
</p> <p>
8,384,807
</p> <p>
Diluted
</p> <p>
 
</p> <p>
8,924,861
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
8,759,143
</p> <p>
 
</p> <p>
 
</p> <p>
8,926,182
</p> <p>
 
</p> <p>
 
</p> <p>
8,698,168
</p>   <p>
Electromed, Inc.
</p>
<p>
Condensed Statements of Cash Flows
</p>
<p>
(Unaudited)
</p>   <p>
 
</p> <p>
Six Months Ended December 31,
</p> <p>
 
</p> <p>
 
</p> <p>
2020
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
2019
</p> <p>
 
</p> <p>
Cash Flows From Operating Activities
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Net earnings
</p> <p>
$
</p> <p>
1,738,689
</p> <p>
 
</p> <p>
 
</p> <p>
$
</p> <p>
2,199,612
</p> <p>
 
</p> <p>
Adjustments to reconcile web earnings to web money offered by working actions:
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Depreciation
</p> <p>
 
</p> <p>
250,489
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
318,982
</p> <p>
 
</p> <p>
Amortization of finite-life intangible property
</p> <p>
 
</p> <p>
65,074
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
60,219
</p> <p>
 
</p> <p>
Share-based compensation expense
</p> <p>
 
</p> <p>
429,776
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
444,258
</p> <p>
 
</p> <p>
Deferred earnings taxes Changes in working property and liabilities:
</p> <p>
 
</p> <p>
77,000
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
18,000
</p> <p>
 
</p> <p>
Loss on disposal of property and gear Changes in working property and liabilities:
</p> <p>
 
</p> <p>
-
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
1,294
</p> <p>
 
</p> <p>
Changes in working property and liabilities:
</p> <p>
 
</p> <p>
Accounts receivable
</p> <p>
 
</p> <p>
(2,454,447
</p> <p>
)
</p> <p>
 
</p> <p>
 
</p> <p>
41,822
</p> <p>
 
</p> <p>
Contract property
</p> <p>
 
</p> <p>
205,626
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
(194,963
</p> <p>
)
</p> <p>
Inventories
</p> <p>
 
</p> <p>
490,430
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
(19,448
</p> <p>
)
</p> <p>
Prepaid bills and different property
</p> <p>
 
</p> <p>
7,929
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
76,213
</p> <p>
 
</p> <p>
Income tax receivable
</p> <p>
 
</p> <p>
185,884
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
(206,489
</p> <p>
)
</p> <p>
Income tax payable
</p> <p>
 
</p> <p>
-
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
(288,511
</p> <p>
)
</p> <p>
Accounts payable and accrued liabilities
</p> <p>
 
</p> <p>
494,429
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
(427,390
</p> <p>
)
</p> <p>
Net money offered by working actions
</p> <p>
 
</p> <p>
1,490,879
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
2,023,599
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Cash Flows From Investing Activities
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Expenditures for property and gear
</p> <p>
 
</p> <p>
(53,778
</p> <p>
)
</p> <p>
 
</p> <p>
 
</p> <p>
(669,842
</p> <p>
)
</p> <p>
Expenditures for finite-life intangible property
</p> <p>
 
</p> <p>
(90,090
</p> <p>
)
</p> <p>
 
</p> <p>
 
</p> <p>
(30,899
</p> <p>
)
</p> <p>
Net money utilized in investing actions
</p> <p>
 
</p> <p>
(143,868
</p> <p>
)
</p> <p>
 
</p> <p>
 
</p> <p>
(700,741
</p> <p>
)
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Cash Flows From Financing Activities
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Issuance of widespread inventory upon train of choices
</p> <p>
 
</p> <p>
45,669
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
75,936
</p> <p>
 
</p> <p>
Taxes paid on web share settlement of inventory choice workout routines
</p> <p>
 
</p> <p>
(129,715
</p> <p>
)
</p> <p>
 
</p> <p>
 
</p> <p>
-
</p> <p>
 
</p> <p>
Net money offered by (utilized in) financing actions
</p> <p>
 
</p> <p>
(84,046
</p> <p>
)
</p> <p>
 
</p> <p>
 
</p> <p>
75,936
</p> <p>
 
</p> <p>
Net improve in money
</p> <p>
 
</p> <p>
1,262,965
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
1,398,794
</p> <p>
 
</p> <p>
Cash
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
Beginning of interval
</p> <p>
 
</p> <p>
10,479,150
</p> <p>
 
</p> <p>
 
</p> <p>
 
</p> <p>
7,807,928
</p> <p>
 
</p> <p>
End of interval
</p> <p>
$
</p> <p>
11,742,115
</p> <p>
 
</p> <p>
 
</p> <p>
$
</p> <p>
9,206,722
</p> <p>
 
</p> <p>
 
</p> </p>