ELMD Electromed Inc

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): May 7, 2024

 

ELECTROMED, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

Minnesota	001-34839	41-1732920
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

 

500 Sixth Avenue NW

New Prague, MN 56071

(Address of Principal Executive Offices) (Zip Code)

 

(952) 758-9299

(Registrant’s Telephone Number, Including Area Code)

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Common Stock, $0.01 par value		ELMD		NYSE American LLC
(Title of each class)		(Trading Symbol)		(Name of each exchange on which registered)

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Item 2.02

Results of Operations and Financial Condition.

 

On May 7, 2024, Electromed, Inc., a Minnesota corporation (the “Company”), issued a press release announcing its financial results for the fiscal quarter ended March 31, 2024. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference into this Item 2.02.

 

Item 7.01

Regulation FD Disclosure.

 

The Company has updated its investor presentation, a copy of which is furnished as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference into this Item 7.01. The Company intends to use the presentation in whole or in part, in one or more meetings with investors and analysts.

 

Item 9.01

Financial Statements and Exhibits.

 

(d) Exhibits:

 

Exhibit Number		Description
99.1		Press Release dated May 7, 2024
99.2		Company Investor Presentation dated May 7, 2024
104		Cover Page Interactive Data File (embedded in the cover page and formatted in inline XBRL)

 

The information contained in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any registration statement pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	ELECTROMED, INC.
Date: May 7, 2024	By:	/s/ Bradley M. Nagel
	Name:	Bradley M. Nagel
	Title:	Chief Financial Officer

 

 

Exhibit 99.1

 

Electromed, Inc. Announces Record Revenue in Fiscal 2024 Third Quarter

 

Growth initiatives drive record revenue

 

NEW PRAGUE, Minn.--(BUSINESS WIRE)-- Electromed, Inc. (“Electromed”) (NYSE American: ELMD), a leader in innovative airway clearance technologies, today announced financial results for the three months ended March 31, 2024 (“Q3 FY 2024”).

 

Q3 FY 2024 Financial Highlights

 

●

Net revenues increased 15% to a record $13.9 million in Q3 FY 2024, from $12.1 million in the third quarter of the prior fiscal year.

●

Gross margins were 75% of net revenues in the third quarters of both the current and prior fiscal years.

●

Operating income increased by 54% to $1,841,000 or 13% of revenue, compared with $1,196,000 or 10% of revenue in the third quarter of the prior fiscal year.

●

Net income was $1,493,000 for the quarter, or $0.17 per diluted share, compared to $1,075,000, or $0.12 per diluted share in the third quarter of the prior fiscal year.

●

Cash as of March 31, 2024, was $11.7 million, an increase of $4.3 million from the June 30, 2023, balance.

 

“I am excited to announce another record revenue quarter in the third quarter of fiscal year 2024,” said Jim Cunniff, President, and Chief Executive officer. “Our company continues to operate at a high level, further driving the adoption of our best-in-class product, backed by careful commercial expansion and excellent operational efficiency. Our strategy has again generated double-digit revenue growth, with significant operating leverage that is resulting in strong profitability. The team remains focused on serving patients and providers while simultaneously enhancing shareholder value through strong operating results. I look forward to continuing this momentum into our final quarter of fiscal year 2024.”

 

Q3 FY 2024 Results

 

All amounts below are for the three months ended March 31, 2024, and compare to the three months ended March 31, 2023 (“Q3 FY 2023”) unless otherwise noted.

 

Net revenues grew 14.9% to $13.9 million, from $12.1 million in Q3 FY 2023.

 

Revenue in our direct homecare business increased year-over-year by 12.0% to $12.3 million, from $11.0 million. The increase in revenue was due to an increase in sales representatives and efficiencies recognized within our reimbursement department as a result of recent investments made to streamline the claims process. Field sales force employees totaled 59 at quarter end, 51 of which were direct sales representatives. The annualized homecare revenue per weighted average direct sales representative in Q3 FY 2024 was $969,000, slightly higher than Electromed’s annual target range of $850,000 to $950,000.

 

Gross profit increased to $10,382,000, or 74.8% of net revenues from $9,056,000 or 75.0% of net revenues in the prior fiscal year. The increase in gross profit in Q3 FY2024 was primarily due to increased net revenues. The decrease in gross margin compared to Q3 FY 2023 was primarily due to costs associated with the wind down of our previous generator models.

 

 

Selling, general and administrative (“SG&A”) expenses were $8,374,000 representing an increase of $680,000, or 8.8%, compared to Q3 FY 2023. The increase in SG&A expense was primarily due to increased share-based compensation expense and payroll expense related to the higher average number of sales, sales support, marketing, and reimbursement personnel to process an increased volume of patient referrals.

 

Operating income for the quarter was $1,841,000, compared to $1,196,000 in Q3 FY 2023. The increase in operating income was driven primarily by increased net revenues.

 

Net income for the quarter was $1,493,000, or $0.17 per diluted share, compared to $1,075,000, or $0.12 per diluted share in Q3 FY 2023.

 

As of March 31, 2024, Electromed had $11.7 million in cash, $23.9 million in accounts receivable and no debt, achieving working capital of $35.0 million, and total shareholders’ equity of $42.6 million. The cash balance reflects an increase of $4.3 million for the nine months ended March 31, 2024, compared to a decrease in cash of $1.4 million in the nine months ended March 31, 2023. This increase in cash in the current year was driven by an increase in operating income and management of working capital.

 

Conference Call and Webcast Information

 

A conference call with members of Electromed management will be held at 5:00 p.m. Eastern Time on Tuesday, May 7, 2024.

 

Interested parties may participate in the call by dialing (877) 407-0789 (Domestic) or (201) 689-8562 (International).

 

The live conference call webcast will be accessible in the Investor Relations section of Electromed’s website and directly via the following link: https://viavid.webcasts.com/starthere.jsp?ei=1665471&tp_key=f09d972070

 

For 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 13743606. Additionally, an online replay will be available for one year in the Investor Relations section of Electromed’s web site at: https://investors.smartvest.com/events-and-presentations/default.aspx

 

About Electromed, Inc.

 

Electromed, Inc. manufactures, markets, and sells products that provide airway clearance therapy, including the SmartVest® 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.

 

 

Cautionary Statements

 

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 “anticipate,” “believe,” “estimate,” “continue,” “expect,” “intend,” “may,” “plan” “potential,” “should,” “will,” 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 the Company include, but are not limited to, the competitive nature of our market; changes to Medicare, Medicaid, or private insurance reimbursement policies; 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 the Company’s reports filed with the Securities and Exchange Commission (including the Company’s 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 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 “forward-looking statements,” 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.

 

Brad Nagel, Chief Financial Officer
(952) 758-9299
investorrelations@electromed.com

 

Mike Cavanaugh, Investor Relations
ICR Westwicke
(617) 877-9641
mike.cavanaugh@westwicke.com

 

Source: Electromed, Inc.

 

 

Electromed, Inc.

 

Condensed Balance Sheets

 

		March 31, 2024				June 30, 2023
		(Unaudited)				(Audited)
Assets
Current Assets
Cash and cash equivalents		$	11,712,000			$	7,372,000
Accounts receivable (net of allowances for credit losses of $45,000)			23,907,000				24,130,000
Contract assets			642,000				487,000
Inventories			4,178,000				4,221,000
Prepaid expenses and other current assets			592,000				1,577,000
Income tax receivable			291,000				-
Total current assets			41,322,000				37,787,000
Property and equipment, net			5,283,000				5,672,000
Finite-life intangible assets, net			648,000				605,000
Other assets			106,000				161,000
Deferred income taxes			1,542,000				1,581,000
Total assets		$	48,901,000			$	45,806,000
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable			792,000				1,372,000
Accrued compensation			2,987,000				3,018,000
Income tax payable			-				336,000
Warranty reserve			1,525,000				1,378,000
Other accrued liabilities			1,022,000				1,949,000
Total current liabilities			6,326,000				8,053,000
Other long-term liabilities			31,000				86,000
Total liabilities			6,357,000				8,139,000
Commitments and Contingencies
Shareholders’ Equity
Common stock, $0.01 par value per share, 13,000,000 shares authorized; 8,655,727 and 8,555,238 shares issued and outstanding, as of March 31, 2024, and June 30, 2023, respectively			87,000				86,000
Additional paid-in capital			20,342,000				18,788,000
Retained earnings			22,115,000				18,793,000
Total shareholders’ equity			42,544,000				37,667,000
Total liabilities and shareholders’ equity		$	48,901,000			$	45,806,000

 

 

Electromed, Inc.

 

Condensed Statements of Operations

		Three Months Ended								Nine Months Ended
		March 31,								March 31,
		2024				2023				2024				2023
Net revenues		$	13,871,000			$	12,068,000			$	39,884,000			$	34,455,000
Cost of revenues			3,489,000				3,012,000				9,459,000				8,386,000
Gross profit			10,382,000				9,056,000				30,425,000				26,069,000
Operating expenses
Selling, general and administrative			8,374,000				7,694,000				25,699,000				22,937,000
Research and development			167,000				166,000				480,000				618,000
Total operating expenses			8,541,000				7,860,000				26,179,000				23,555,000
Operating income			1,841,000				1,196,000				4,246,000				2,514,000
Interest income, net			120,000				26,000				293,000				37,000
Net income before income taxes			1,961,000				1,222,000				4,539,000				2,551,000
Income tax expense			468,000				147,000				1,217,000				418,000
Net income		$	1,493,000			$	1,075,000			$	3,322,000			$	2,133,000
Income per share:
Basic		$	0.17			$	0.13			$	0.39			$	0.25
Diluted		$	0.17			$	0.12			$	0.38			$	0.25
Weighted-average common shares outstanding:
Basic			8,565,725				8,461,531				8,549,352				8,449,623
Diluted			8,892,821				8,710,106				8,822,938				8,694,407

 

 

Electromed, Inc.

 

Condensed Statements of Cash Flows

		Nine Months Ended March 31,
		2024				2023
		(Unaudited)				(Unaudited)
Cash Flows From Operating Activities
Net income		$	3,322,000			$	2,133,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			594,000				370,000
Amortization of finite-life intangible assets			37,000				52,000
Share-based compensation expense			1,250,000				506,000
Deferred income taxes			39,000				32,000
Changes in operating assets and liabilities:
Accounts receivable			223,000				(1,293,000	)
Contract assets			(155,000	)			(284,000	)
Inventories			78,000				(264,000	)
Prepaid expenses and other current assets			1,234,000				105,000
Income tax payable, net			(627,000	)			(270,000	)
Accounts payable and accrued liabilities			(1,386,000	)			(111,000	)
Accrued compensation			(31,000	)			(660,000	)
Net cash provided by operating activities			4,578,000				316,000
Cash Flows From Investing Activities
Expenditures for property and equipment			(265,000	)			(1,221,000	)
Expenditures for finite-life intangible assets			(84,000	)			(54,000	)
Net cash used in investing activities			(349,000	)			(1,275,000	)
Cash Flows From Financing Activities
Issuance of common stock upon exercise of options			111,000				40,000
Taxes paid on net share settlement of stock option exercises			-				(305,000	)
Repurchase of common stock			-				(153,000	)
Net cash provided by (used in) financing activities			111,000				(418,000	)
Net increase (decrease) in cash			4,340,000				(1,377,000	)
Cash And Cash Equivalents
Beginning of period			7,372,000				8,153,000
End of period		$	11,712,000			$	6,776,000

 

 

Exhibit 99.2

 

Electromed, Inc. Investor Presentation May 2024 NYSE American: ELMD INNOVATION LEADER IN AIRWAY CLEARANCE TECHNOLOGIES

Investor Presentation Forward Looking Statements Certain statements in this press release constitute forward - looking statements as defined in the US Private Securities Litigation Reform Act of 1995 . Forward - looking statements can generally be identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “should,” “will,” 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 the Company include, but are not limited to the competitive nature of our market ; changes to Medicare, Medicaid, or private insurance reimbursement policies ; 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 the Company’s reports filed with the Securities and Exchange Commission (including the Company’s 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 “forward - looking statements,” 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 . | 2

Electromed, Inc. is a growing medical device company focused on airway management to help people around the world breathe better, stay healthier, and lead active and fulfilling lives. Who We Are As of and for trailing 12 months ended 3/31/2024 Key Stats: Headquarters: New Prague, MN Ticker: ELMD Established: 1992 Annual Revenue: $53.5M Market Cap: $139M Share Count: 8.7M 174 Employees Manufacturing in Minnesota HFCWO Market Focus | 3 Investor Presentation

| 4 » Growing and profitable medical technology company » A leader in the large and expanding airway clearance market » SmartVest ® H igh F requency C hest W all O scillation (“HFCWO”) technology supported by clinical outcomes data with strong reimbursement » Attractive direct - to - patient and provider model » Strong financial profile with attractive historical gross margins and profitability, well capitalized balance sheet $28.3 $31.3 $32.5 $35.8 $41.7 $48.1 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 Net Revenue ($M) 1 $2.7 $1.8 $2.0 $2.4 $2.3 $3.2 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 Net Income ($M) 1 1 Financials under ASC 606 * * FY20 reported net income of $4.2M included $1.5M of one - time benefits and cost savings related to the COVID health emergency. See appendix for non - GAAP reconciliation Electromed Overview

Investor Presentation What is Bronchiectasis? » An irreversible lung condition characterized by abnormal widening of one or more of the bronchi (airways) » End result of repeated episodes of pulmonary inflammation and infection » Damaged airways allow excess mucus to accumulate, increasing risk of infection » Mean prevalence of bronchiectasis in patients with COPD is 54%¹ Disease Misdiagnosed Disease Underdiagnosed HFCWO Under - prescribed | 5 1 Chalmers J. and Sethi S. Raising awareness of bronchiectasis in primary care: overview of diagnosis and management strategies in adults. NPJ Prim Care Respir Med . 2017;27:18

Bronchiectasis HFCWO penetration ~15% 1 Diagnosed BE population growing at ~12% annually 1 Estimated Net Bronchiectasis prevalence, DIAGNOSED 1 Estimated bronchiectasis prevalence, UNDIAGNOSED 2 Estimated HFCWO bronchiectasis penetration, treated population 1 | 6 1 Internal company estimates derived from GUIDEHOUSE 2023 NASM claims database 2 Internal company estimates derived from GUIDEHOUSE 2023 literature review and 2023 CDC NHANES data US Market Large, Growing and Underpenetrated Market ~824K U.S. BE Diagnosed 1 4.1 million U.S. Undiagnosed 2 ~127K HFCWO ADOPTED 1

Investor Presentation | 7 How is Bronchiectasis Treated? Benefits of HFCWO Therapy

Investor Presentation An enhanced patient experience! » Smaller, lighter and intuitive user interface for better patient adherence » Patient remote monitoring enabled » More portable and easier for travel | 8 SmartVest Clearway® Newest HFCWO Device on the Market SmartVest ® has a well - established reimbursement code from CMS – E0483; Electromed has over 275M contracted lives in the US

SmartNotes TM Patient Progress Report P roviding Patient Outcomes and Treatment Progress to Physicians SmartNotes combine patient Quality of Life and Therapy Utilization data to provide physicians with extended views into disease management » TeleRespiratory Services : A team of Respiratory Therapists stay connected with patients and support their therapy utilization. » Outcomes Management : Easy - to - read report provides physicians with a comprehensive view of disease progression and therapy impact. | 9

Investor Presentation Therapy with SmartVest® significantly decreased exacerbations requiring hospitalization, antibiotic use, and stabilizes lung function. Powner (2018) Therapy with HFCWO demonstrated key health outcomes improved in post - compared to pre - index period: cough, all - cause hospitalizations, pneumonia and pulmonary hospitalizations. DeKoven (2022) Therapy with SmartVest® demonstrated an improvement in symptom scores and quality of life. Chakravorty (2011) 59 % Fewer hospitalizations Exacerbations requiring hospitalizations reduced with SmartVest®. Sievert (2016) 75 % Reduction in ER visits Longitudinal outcome - based study showed ER visits significantly reduce with SmartVest®. Sievert (2018) | 10 Clinical Evidence Electromed has Published Studies Showing Effectiveness of HFCWO to Treat Bronchiectasis

Investor Presentation Homecare Hospitals International 95% Direct to physicians adult pulmonology clinics cystic fibrosis centers neuromuscular clinics HME distributors Third - party reimbursement (Medicare, Medicaid, Commercial) Contracted price with payments made directly from the distributor 4% Individual hospitals; member hospitals of group purchasing organizations (GPOs) Payments made directly from the institution for generator sales – capital purchase Single patient use garments – recurring sales 1% Distributors Contracted price with payments made directly from the distributor % of Net Revenue: Sales Points: Revenue Model: | 11 Markets We Serve Net Revenue Breakdown, Fiscal Year 2023

Investor Presentation ELMD expects gross margins in the mid - 70s and improving with the SmartVest® Clearway® Traditional Medical Equipment Channel D irect - to - Patient Distribution (Electromed) vs. Manufacturer DME Patient $ $ Electromed Patient $$ | 12 Direct - to - Patient Model Drives Attractive Margin Profile

Investor Presentation 1% 4% 95% Medicare Medicaid Homecare By Payer Home Care¹ Hospitals International By Setting Commercial / Other 2 Bronchiectasis Cystic Fibrosis Homecare By Referral Volume Neuromuscular Other 2 Includes Managed Medicare and Managed Medicaid 1 Includes $1.5 million from home care distributor revenue 64% 2% 14% 10% 10% COPD/COPD Related 54% 44% 2% | 13 Net Revenue Breakdown - $48.1M (FY’23)

| 14 Growth Strategy How Will Electromed Increase Market Share? • Continued sales force expansion along with complementary infrastructure investments • Direct - to - consumer and physician marketing to increase brand awareness and revenue • Best - in - class customer care and support • Develop and promulgate the body of bronchiectasis clinical evidence to increase physician adoption of the SmartVest® System for patients • Promote the best - in - class SmartVest Clearway® device

Higher incidence of chronic lung diseases Aging population Growing physician awareness of diseases such as bronchiectasis The Affordable Care Act penalizes for readmission Healthcare reform moving to fee - for - outcomes Treatment moving to lower cost settings (homecare) HFCWO Industry Drivers | 15 Why Invest?

Investor Presentation Unique Investment Opportunity | 16 • Large, expanding bronchiectasis market supported by industry tailwinds • Clinically proven therapy • Well established reimbursement code with broad payer coverage • Consistent double - digit organic revenue growth • History of high gross margins, robust operating cash flow and increased operating leverage

Investor Presentation Mgmt. Incentives Aligned w/Investors • CEO incentive reward based on increasing total shareholder return . • Management’s incentive compensation focused solely on delivering financial results. | 17

Metric ELMD RUS ME Sales Growth 17.0% > 3.7% EV / Revenue Gross Margin 2.6x 76.4% > > 4.6x 54.7% Operating Margin 10.7% > (9.1%) | 18 Why Invest? Attractive Valuation and Operating Metrics (TTM ended 3/31/2024 Results)

Investor Presentation Mike Cavanaugh ( 617) 877 - 8641 m ike.cavanaugh@westwicke.com Callie Conway (332) 242 - 4336 Callie.Conway@Westwicke.com Jim Cunniff , President & CEO (952) 758 - 9299 jcunniff @Electromed.com Brad Nagel, CFO (952) 758 - 9299 bnagel@Electromed.com | 19

APPENDIX Investor Presentation | 20

Financial Summary Fiscal Year Ended 3 Months Ended ( in $ millions, except shares amounts) June 30, 2021 June 30, 2022 June 30, 2023 Mar 31, 2023 Mar 31, 2024 Revenues 35.8 41.7 48.1 12.1 13.9 Gross Profit 27.3 31.4 36.5 9.1 10.4 Gross margin 76% 75% 76% 75% 75% Operating income 3.1 3.0 4.0 1.2 1.8 Operating margin 9% 7% 8% 9.9% 13.3% Net income 2.4 2.3 3.2 1.1 1.5 Diluted EPS $0.27 $0.26 $0.36 $0.12 $0.17 Diluted Shares 8,911,842 8,768,703 8,700,833 8,710,106 8,892,821 Cash provided by operations $3.1 ($0.7) $1.3 0.6 1.4 Balance Sheet (in $ millions) Mar 31, 2024 Cash 11.7 Current assets 41.3 Total assets 48.9 Current liabilities 6.3 Other long - term liabilities 0.03 Total debt 0.0 Total shareholders’ equity 42.5 Cash Provided by Operations (in millions) $4.2 $3.1 ($0.7) $1.3 FY'20 FY'21 FY'22 FY'23 | 21 Financial Highlights and Balance Sheet

Senior Leadership | 22 Brad Nagel – Chief Financial Officer • Chief Financial Officer at Electromed since November 2022 • 15+ years of financial leadership and strategic planning experience with Fortune 500 companies • Former Divisional Chief Financial Officer of Global Lung Health and Visualization at Medtronic Diane Kaufman – Vice President of Human Resources • VP of Human Resources at Electromed since July 2021 • 30+ years of experience leading global human resource functions aligning them with global business strategy and a champion of cu lture transformation • Former Sr. VP of Global Human Resources at Ergotron resulting in 65% employee referral rate, 100% candidate acceptance and hi rin g in 30 days, and reduced turnover from 23% to 3% Jim Cunniff – President & Chief Executive Officer • CEO of Electromed since July 2023 • 30+ years of executive leadership in MedTech and the broader healthcare industry • Track record of consistently growing revenue through innovative go - to market strategies • Former President, CEO, and Board Director of Provista as well as Leiters Health • Former Senior Vice President of Americas for Kinetic Concepts, Inc. • Former President, Stryker Corporation for the following divisions: Medical, Asia/Pacific and Emerging Markets Kristine Owata – Vice President of Reimbursement & Payer Relations • VP of Reimbursement & Payer Relations at Electromed since October 2020 • 15+ years of diverse leadership experience in people management, client experience and process improvement • Former president and director of Intelligere, Inc., and former owner of W4P Revenue Cycle Solutions, where she implemented re ven ue cycle solutions for healthcare clients Amy Yanta – Vice President of Regulatory Affairs, Quality Assurance & Compliance • VP of Regulatory, Quality & Compliance since September 2023 • 15+ years of experience in the MedTech industry specializing in Regulatory Affairs and Quality Assurance • Former RAQA leader at IMRIS, and former regulatory affair roles at Boston Scientific and Surmodics.

Non - GAAP Reconciliation | 23 Slide 4 GAAP Net Income 4,200,000$ Reconciling Items: Government Stimulus Income (900,000)$ Expense reductions from COVID-related furloughs and role eliminations (700,000)$ Expense reductions from COVID-related travel limitations and fewer headcount traveling (400,000)$ Tax Impact 500,000$ Non-GAAP Net Income 2,700,000$

v3.24.1.u1

Cover	May 07, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 07, 2024
Entity File Number	001-34839
Entity Registrant Name	ELECTROMED, INC.
Entity Central Index Key	0001488917
Entity Tax Identification Number	41-1732920
Entity Incorporation, State or Country Code	MN
Entity Address, Address Line One	500 Sixth Avenue NW
Entity Address, City or Town	New Prague
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	56071
City Area Code	(952)
Local Phone Number	758-9299
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	ELMD
Security Exchange Name	NYSEAMER
Entity Emerging Growth Company	false
Entity Information, Former Legal or Registered Name	Not Applicable

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