Financial Performance - Net revenues for the year ended December 31, 2024, were $134.9 million, an increase of $9.1 million, or 7.2%, compared to $125.8 million for 2023[171]. - Gross profit for 2024 totaled $70.4 million, an increase of $7.3 million, or 11.6%, with a gross margin of 52.2%, up from 50.2% in the prior year[174]. - Operating income improved to $6,891,000, a significant increase of 68.4% compared to $4,088,000 in 2023[229]. - Net income for 2024 was $2,345,000, up 168.5% from $872,000 in 2023[229]. - Total current assets increased to $32,165,000, a rise of 5.1% from $30,620,000 in 2023[228]. - Total liabilities decreased to $46,085,000, down 8.3% from $50,613,000 in the previous year[228]. - Cash and cash equivalents at the end of 2024 were $527,000, compared to $231,000 at the end of 2023, reflecting a 128.1% increase[235]. Revenue Breakdown - Patient Services net revenue was $80.4 million, an increase of $3.8 million, or 5.0%, primarily due to additional treatment volume totaling $6.4 million[172]. - Device Solutions net revenue was $54.5 million, an increase of $5.2 million, or 10.6%, driven by higher rental revenue of $2.5 million, or 13.5%[173]. - The Oncology Business accounted for approximately 90% of total Patient Services segment revenues in 2024, with 45% from colorectal cancer treatments and 45% from non-colorectal disease states[161]. - Patient Services revenue accounted for 53.9% of total net revenues in 2024, slightly down from 54.1% in 2023[302]. - Device Solutions revenue recognized at a point in time increased to $33.495 million in 2024, up from $30.759 million in 2023, representing an increase of 8.9%[302]. Expenses and Costs - Selling and marketing expenses decreased to $11.3 million, down $1.3 million, or 11.5%, from 2023, representing 8.4% of net revenues compared to 10.1% in 2023[178]. - General and Administrative (G&A) expenses increased to $51.2 million, up $5.8 million, or 12.9%, from $45.4 million in 2023, with G&A as a percentage of net revenues rising to 38.0%[179]. - Device Solutions gross profit for 2024 was $17.6 million, an increase of $2.3 million, or 14.7%, from the prior year, with a gross margin of 32.2%[176]. - Stock-based compensation expense for the year ended December 31, 2024 was $4.46 million, compared to $4.07 million for 2023, indicating an increase of 9.6%[344]. Cash Flow and Liquidity - Net cash provided by operating activities was $20.5 million for 2024, an increase of $9.2 million, or 82.3%, from $11.2 million in 2023[193]. - Net cash used in investing activities increased to $13.2 million in 2024, up $6.5 million from $6.7 million in 2023, primarily due to increased purchases of medical equipment[195]. - Net cash used in financing activities was $6.9 million for 2024, compared to $4.4 million in 2023, mainly for net revolving line of credit repayments and stock repurchases[196]. - As of December 31, 2024, available liquidity was $51.4 million, up from $45.6 million in 2023, with cash and cash equivalents at $0.5 million[183]. Investments and Acquisitions - The acquisition of FilAMed and OB Healthcare has expanded the Device Solutions segment's capabilities in biomedical services[167]. - The company plans to expand its Patient Services segment into other cancer treatments, leveraging existing capabilities and new drug approvals[161]. - The merger with First Biomedical, Inc. is expected to enhance operational capabilities and market reach starting January 1, 2024[240]. Tax and Interest - The provision for income taxes was $2.7 million for 2024, with an effective tax rate of 53.6% on pre-tax income of $5.1 million[181]. - Interest expense for 2024 was $1.8 million, a decrease of $0.4 million from 2023, due to lower outstanding borrowings and interest rates[180]. Derivatives and Market Risks - The Company is exposed to market risk from changes in foreign currency exchange rates and short-term interest rates[208]. - The Company has entered into derivative contracts to manage financial and operational exposure from market risks[209]. - The Company recognized all derivative financial instruments as cash flow hedges, with fair values categorized as Level 2 of the fair value hierarchy[292]. Shareholder Equity and Stock Options - The Company repurchased approximately $1.2 million worth of common stock under the Share Repurchase Program as of December 31, 2024[192]. - The Company granted approximately 117,582 performance-based restricted stock units (PSUs) in 2024, up from 71,639 PSUs granted in 2023, marking a significant increase of 64.2%[348]. - By December 31, 2024, the number of outstanding stock options under the 2021 Plan increased to 1,840,786, with an average exercise price of $8.93[357]. Asset Management - The Company’s medical equipment is depreciated using the straight-line method over an estimated useful life of seven years[265]. - The Company performed its annual impairment analysis as of October 31, 2024, and determined that the fair value of trade names with indefinite lives was greater than their carrying value, resulting in no impairment[270]. - The Company’s inventories are stated at the lower of cost or net realizable value, with adjustments made for slow-moving inventory[264].

Financial Data and Key Metrics Changes - InfuSystem Holdings, Inc. reported a net revenue of $33.8 million for Q4 2024, representing a 7% increase from the prior year [18] - Operating income increased by 69% year-over-year to $6.9 million, while adjusted EBITDA rose 13% to $25.3 million, with an adjusted EBITDA margin of 18.8% for the full year [9][10] - Gross margins improved by 2% year-over-year to 52.2% [8] Business Line Data and Key Metrics Changes - Revenue growth in 2024 was driven by oncology and pain management, which increased by 6.1% and 14.7% respectively [11] - Equipment rentals in device solutions grew by 13.6%, and equipment sales increased by 20.6% [11] - Advanced wound care revenue surged by 342%, totaling $700,000, while the wound care segment faced challenges due to a pause in onboarding new initiatives [12][19] Market Data and Key Metrics Changes - The patient services segment led revenue growth with an 8% increase, while the device solutions segment saw a 4% increase [18] - The company noted a significant opportunity in the wound care space, focusing on partnerships with regional DME companies to leverage payer contracts [12] Company Strategy and Development Direction - The company aims for revenue growth of 8% to 10% in 2025, with adjusted EBITDA margins expected to exceed 18.8% [34] - InfuSystem is focusing on less capital-intensive revenue sources, such as biomedical services and advanced wound care supplies, to improve free cash flow [13][26] - The launch of the Chemo Mouthpiece is a strategic initiative to address an unmet need in oncology, with expectations for broad adoption following clinical studies [30][68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth across all business lines in 2025, particularly in advanced wound care and biomed [43] - The company anticipates a ramp-up in revenue as new projects scale throughout the year, including initiatives with Smith and Nephew and Chemo Mouthpiece adoption [35][36] - Management acknowledged the impact of technology system upgrades on costs but expects overall profitability to improve [34][75] Other Important Information - The effective tax rate for Q4 2024 was 59%, primarily due to tax deduction shortages on equity compensation [22] - Operating cash flow for Q4 totaled $7.9 million, a 70% increase from the prior year, contributing to a record annual operating cash flow of $20.5 million [25][27] - The company reduced its net debt to $23.3 million, despite stock repurchases totaling $1.2 million during the year [27][28] Q&A Session Summary Question: Growth in Advanced Wound Care Products - Management confirmed that advanced wound care will drive growth in 2025, with many DME partners seeking referrals [41][43] Question: Feedback on Chemo Mouthpiece - Management noted growing interest and small orders for Chemo Mouthpiece, with significant potential pending clinical trial results [46][50] Question: Referral Process Improvements - Management indicated that improvements in the referral process will ramp throughout the year, with some benefits expected in Q1 [53][56] Question: Addressable Market for Chemo Mouthpiece - The addressable market for Chemo Mouthpiece is estimated to be in the hundreds of millions, with significant excitement from healthcare providers [67][70] Question: Factors Contributing to EBITDA Margin Improvement - Key contributors to improved EBITDA margins include efficiencies in biomed, growth in advanced wound care, and the impact of Chemo Mouthpiece [72][75]

Financial Data and Key Metrics Changes - The company reported a 7% increase in net revenue for Q4 2024, totaling $33.8 million, compared to the prior year [18] - Gross margins increased by 2% year-over-year to 52.2% [8] - Operating income rose by 69% to $6.9 million, while adjusted EBITDA increased by 13% to $25.3 million, with an adjusted EBITDA margin of 18.8% for the full year [9][10] Business Line Data and Key Metrics Changes - Revenue growth was observed across almost all business lines, with oncology and pain management increasing by 6.1% and 14.7% respectively [11] - Equipment rentals in device solutions grew by 13.6%, and equipment sales increased by 20.6% due to a significant transaction in Q3 [11] - Advanced wound care revenue surged by 342%, while the wound care segment overall was below expectations due to a strategic pause in onboarding new initiatives [12][19] Market Data and Key Metrics Changes - The company noted a strong demand for advanced wound care products and biomed services, indicating a ripe opportunity for growth in these areas [41] - The addressable market for Chemo Mouthpiece is estimated to be around $500 to $600 million, highlighting significant potential for revenue generation [67] Company Strategy and Development Direction - The company aims for revenue growth of 8% to 10% in 2025, with adjusted EBITDA margins expected to exceed 18.8% [34] - Focus on less capital-intensive revenue sources, such as biomedical services and advanced wound care supplies, is expected to drive future growth [26][34] - The company is strategically pausing some wound care initiatives to ensure quality and alignment with existing resources before ramping up in 2025 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth across all business lines in 2025, particularly in advanced wound care and biomed [43] - The sales cycle for Chemo Mouthpiece is anticipated to gain momentum in the coming months, with clinical studies expected to enhance market adoption [49][70] - The company expects to see benefits from improvements in the referral process throughout 2025, with gradual enhancements in operational efficiency [55] Other Important Information - The effective tax rate for Q4 2024 was reported at 59%, primarily due to equity compensation deductions and other non-cash tax expenses [22][23] - The company’s net debt decreased to $23.3 million, with strong liquidity reserves of over $51 million as of December 31, 2024 [27][28] Q&A Session Summary Question: Growth expectations for Advanced Wound Care products - Management indicated that Advanced Wound Care is expected to drive most of the growth in 2025, with significant opportunities from DME partners [41][43] Question: Feedback on Chemo Mouthpiece from oncology centers - Management noted growing interest and small orders for Chemo Mouthpiece, with expectations for broader adoption following the publication of clinical studies [46][49] Question: Improvements in the referral process - Management explained that improvements in the referral process will ramp throughout the year, with some benefits expected in Q1 [53][55] Question: Addressable market for Chemo Mouthpiece and Dignitana - Management stated that Chemo Mouthpiece has a large addressable market, while Dignitana represents a smaller but significant opportunity [66][67] Question: Factors contributing to EBITDA margin improvement - Management highlighted continued efficiencies in biomed and growth in other areas as key contributors to improved EBITDA margins [72][75]

Core Insights - InfuSystems Holdings, Inc. reported quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.08 per share, representing an earnings surprise of -50% [1] - The company posted revenues of $33.85 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.61%, compared to year-ago revenues of $31.77 million [2] - InfuSystems Holdings shares have declined approximately 14.1% since the beginning of the year, while the S&P 500 has decreased by -0.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $33.8 million, and for the current fiscal year, it is $0.31 on revenues of $146.6 million [7] - The estimate revisions trend for InfuSystems Holdings is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Medical - Products industry, to which InfuSystems Holdings belongs, is currently in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Ayr Wellness Inc., another company in the same industry, is expected to report a quarterly loss of $0.29 per share, reflecting a year-over-year change of +19.4% [9]

Summary of Key Points Core Perspective - The article discusses the investment outlook for InfuSystem Holdings (NYSE: INFU), emphasizing the author's focus on identifying market opportunities that have not yet been recognized by investors [1]. Company Expectations - The author previously highlighted three primary expectations for InfuSystem Holdings, indicating a proactive approach to investment analysis [1]. Investment Strategy - The investment strategy involves fundamental analysis, seeking discrepancies between a company's intrinsic value and its current share price, which suggests a long-term investment perspective [1].

Financial Data and Key Metrics Changes - InfuSystem reported record net revenue of $35.2 million for Q3 2024, representing an 11% increase year-over-year and nearly 5% sequential growth [11] - Adjusted EBITDA margins improved to 22.3%, with adjusted EBITDA of $7.9 million, an increase of over $1.7 million from the prior year [14] - Operating cash flow for the quarter was $9.8 million, more than double the amount from the prior year [15] Business Line Data and Key Metrics Changes - The Device Solutions segment saw a year-over-year revenue increase of $1.9 million or 15.3%, driven by a $1.1 million increase in medical equipment sales [11][12] - The Patient Services segment reported a revenue increase of $1.5 million or 7.7%, with oncology net revenue up nearly $1.8 million or 11% [12] Market Data and Key Metrics Changes - The company signed three new initiatives, including a distribution agreement with Smith & Nephew for negative pressure wound therapy and a joint venture with Sanara MedTech for the Chemo Mouthpiece [7][28] - The oncology market is expected to see increased utilization of the Chemo Mouthpiece, which aims to reduce oral mucositis in chemotherapy patients [29] Company Strategy and Development Direction - InfuSystem is focusing on a device-agnostic and patient-centric approach to increase access to quality healthcare [8] - The company is expanding its biomedical services and advanced wound care products, leveraging existing relationships with healthcare providers [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, reaffirming annual guidance for high single-digit revenue growth and adjusted EBITDA margins in the high teens [32] - The potential impact of the NOPAIN Act on the pain management business remains uncertain, with management focusing on emerging opportunities in wound care and biomedical services [26][27] Other Important Information - InfuSystem's net debt decreased by $6.4 million to $27.6 million during Q3 2024, with available liquidity totaling nearly $47 million [18] - The company is positioned to fund continued revenue growth with strong cash flow from operations and manageable debt service requirements [17] Q&A Session Summary Question: Is the GE business on autopilot? - Management indicated that while the GE business is stable, it requires ongoing management and execution [35] Question: What is the revenue magnitude for Dignitana? - The revenue from Dignitana is under $1 million, but management expects more similar deals in the future [36] Question: Will cash flow remain positive going forward? - Management expects positive operating cash flow, though free cash flow may fluctuate based on growth and capital expenditures [38] Question: What is the expected size of the Chemo Mouthpiece opportunity? - The total addressable market for the Chemo Mouthpiece is estimated at $0.5 billion, with significant potential for growth [43] Question: How will Chemo Mouthpiece revenues be recorded? - Revenue from the Chemo Mouthpiece will be included in the top line, with profits reflected in the equity investment line with Sanara [54]

Financial Performance - Net revenues for the three months ended September 30, 2024, increased to $35,320,000, up from $31,909,000 for the same period in 2023, representing a growth of 7.8%[8] - Gross profit for the nine months ended September 30, 2024, was $52,187,000, compared to $46,398,000 for the same period in 2023, reflecting an increase of 12.4%[8] - Operating income for the three months ended September 30, 2024, was $3,265,000, compared to $1,697,000 for the same period in 2023, marking a significant increase of 92.5%[8] - Net income for the three months ended September 30, 2024, was $1,807,000, compared to $689,000 for the same period in 2023, indicating a growth of 162.5%[8] - Net income for the nine months ended September 30, 2024, was $1,412,000, compared to $800,000 for the same period in 2023, representing a 76.5% increase[13] - Cash provided by operating activities for the nine months ended September 30, 2024, was $12,528,000, up from $6,565,000 in the same period of 2023, indicating a 91.5% increase[13] Assets and Liabilities - Total current assets as of September 30, 2024, were $33,613,000, an increase from $30,620,000 as of December 31, 2023, representing an increase of 9.8%[7] - Total liabilities decreased to $49,790,000 as of September 30, 2024, from $50,613,000 as of December 31, 2023, a reduction of 1.6%[7] - Total stockholders' equity increased to $55,513,000 as of September 30, 2024, from $52,302,000 as of December 31, 2023, representing a growth of 6.3%[7] - The company’s total assets as of September 30, 2024, were $105,303,000, compared to $102,071,000 in 2023, indicating a growth of 3.3%[72] - Long-term debt decreased to $27,975,000 as of September 30, 2024, from $29,101,000 as of December 31, 2023, a reduction of 3.9%[7] Revenue Segments - Patient Services revenue accounted for 53.2% of total net revenues in Q3 2024, up from 52.8% in Q3 2023[21] - Device Solutions revenue recognized at a point in time increased to $4,731,000 in Q3 2024, a 31.7% increase from $3,593,000 in Q3 2023[21] - Total net revenues for the nine months ended September 30, 2024, reached $101,013,000, up from $93,462,000 in 2023, representing an increase of 8.5%[74] Cash and Cash Equivalents - Cash and cash equivalents increased to $380,000 as of September 30, 2024, compared to $231,000 as of December 31, 2023, reflecting a growth of 64.0%[7] - Cash and cash equivalents at the end of the period were $380,000, up from $161,000 at the end of the same period in 2023[13] Stock and Compensation - The company reported a basic net income per share of $0.08 for the three months ended September 30, 2024, compared to $0.03 for the same period in 2023, an increase of 166.7%[8] - The company has authorized a stock repurchase program of up to $20.0 million, with approximately $1.0 million repurchased as of September 30, 2024[52] - The weighted average grant date fair value of awards granted in the nine months ended September 30, 2024, was $7.51, compared to $9.25 for the same period in 2023[55] Expenses - Selling, general, and administrative expenses for the nine months ended September 30, 2024, totaled $47,912,000, compared to $43,560,000 for the same period in 2023, an increase of 10.8%[8] - Stock-based compensation expense rose to $3,276,000 for the nine months ended September 30, 2024, compared to $2,799,000 for the same period in 2023, marking a 17.0% increase[13] Debt and Credit Facilities - The 2021 Credit Agreement provides a revolving credit facility of $75 million, with $46,545 thousand available as of September 30, 2024 after accounting for outstanding draws and letters of credit[36] - As of September 30, 2024, the Company had outstanding debt of $28,255 thousand under the Revolving Facility, with a weighted average Term Benchmark loan rate of 7.43%[39] - The Company entered into a First Amendment to the 2021 Credit Agreement on April 26, 2023, extending the maturity date to April 26, 2028 and increasing the maximum incremental revolving loans from $25 million to $35 million[35] Taxation - The effective tax rate for the nine months ended September 30, 2024, was 49.5%, significantly higher than the 28.8% effective tax rate for the same period in 2023[48] - The company recorded a provision for income taxes totaling $1.4 million on pre-tax income of $2.8 million for the nine months ended September 30, 2024[48] Lease Obligations - Operating lease costs for the three months ended September 30, 2024, were $478,000, compared to $378,000 for the same period in 2023, representing a 26.4% increase[62] - Total lease costs for the nine months ended September 30, 2024, were $1,689,000, up from $1,359,000 in 2023, indicating a 24.3% increase[62] - Total undiscounted lease payments as of September 30, 2024, amounted to $9,586,000, with total lease liabilities at $6,401,000 after accounting for imputed interest[65]

Medical Device Market Overview - The medical device market is projected to exceed $600 billion by 2025, driven by an aging population, rising healthcare costs, and rapid technological advancements in AI and biotechnology [1] - Innovations are leading to the development of sophisticated devices that can diagnose and treat a wider range of conditions with greater precision and effectiveness [1] Tactile Systems Technology - Tactile Systems Technology focuses on at-home therapies for chronic disorders, including lymphedema and chronic pulmonary disease, with products like the Flexitouch Plus system and the new Nimbl™ therapy platform [2][3] - The Nimbl™ device is 40% smaller and 68% lighter than previous generations and connects with the Kylee™ digital application for tracking therapy progress [3] - The company reported a total revenue of $73.2 million for Q2 2024, a 7% increase year-over-year, with adjusted EBITDA of $9.1 million, a 49% increase [4] - Tactile Systems is expanding its sales force and marketing efforts to capitalize on the growing lymphedema market [5] - Analyst consensus rates Tactile Systems as a "Strong Buy" with a price target of $23.00, indicating a 62.20% upside [3][4][6] InfuSystem Holdings - InfuSystem is a national healthcare service provider specializing in outpatient care for medical device manufacturers, focusing on infusion pumps and related services [6] - The company recently entered into distribution agreements to expand its product offerings, including an exclusive deal for the Chemo Mouthpiece® and a partnership with Smith+Nephew [7] - InfuSystem reported revenue of $33.7 million for Q2 2024, a 6% increase year-over-year, with net income rising 64.8% to $0.7 million [8] - The company is pursuing strategic partnerships and acquisitions to broaden its market footprint, including a joint venture with Sanara MedTech Inc. [9] - Analyst consensus rates InfuSystem as a "Strong Buy" with a price target of $13.00, representing a 91.74% upside [8][9]

Financial Data and Key Metrics Changes - InfuSystem reported record net revenue of $33.7 million for Q2 2024, representing a 5.3% sequential growth and a 6.2% increase compared to Q2 2023 [4][6] - Adjusted EBITDA margin improved significantly to 18%, with adjusted EBITDA of $6.1 million, an increase of over $300,000 from the prior year [4][8] - Gross profit for Q2 2024 was $16.7 million, a 5% increase year-over-year, with a gross margin percentage of 49.5% [7] Business Line Data and Key Metrics Changes - Oncology segment revenue increased by $1.5 million, or 9%, driven by higher treatment volumes and improved cash collections [6] - Biomedical Services revenue rose by over $0.5 million, nearly 14%, as the GE contract reached full run rate [6] - Equipment rental and disposable medical supplies categories increased by over $800,000, or almost 13%, due to a new large customer [6] - Pain Management and Wound Care businesses each grew by over $300,000, with Wound Care growing at nearly 190% [6] Market Data and Key Metrics Changes - Operating cash flow for Q2 totaled $2.3 million, slightly below the prior year's amount but up nearly $2 million sequentially [9] - Net capital expenditures increased to $6.7 million, focused on new equipment for rental customers and increased volume in Oncology and Pain Management [9] Company Strategy and Development Direction - The company is focused on less capital-intensive revenue sources, such as Biomedical Services, and initiatives to increase pump utilization [10] - InfuSystem is investing in upgrading its information technology and business applications, with a total expected cost of $3 million to $4 million over 18 to 24 months [11] Management's Comments on Operating Environment and Future Outlook - Management reiterated guidance for high single-digit revenue growth and high teens adjusted EBITDA percentage for the year, expecting the second half to reflect growing momentum [21] - The company is optimistic about new opportunities in biomedical services and partnerships, including a significant biomedical device remediation project [14][25] Other Important Information - The company’s net debt increased to $34 million, with available liquidity of $40.3 million at the end of the quarter [10] - The ratio of total debt-to-adjusted EBITDA was 1.5 times, indicating manageable leverage [10] Q&A Session Summary Question: Comments on leasing activity in Negative Pressure Wound Therapy devices - Management clarified that leases from last year will remain in use until their useful life is over, while the new agreement with Smith+Nephew focuses on referral business [23] Question: Additional color on the biomedical business and GE relationship - Management indicated that new opportunities with GE are being explored, and there are several new partnerships outside of GE in the pipeline [25] Question: Expectations regarding the NOPAIN Act - Management expects the NOPAIN Act to drive revenue growth by increasing the number of customers utilizing non-opioid alternatives for pain management [28][29] Question: Share repurchase authorization details - Management confirmed that some shares were repurchased during the quarter, totaling over $200,000 [30][31] Question: Clarification on negative pressure business and device usage - Management explained that various devices can be used in home settings, and they aim to be device agnostic, allowing clinics to choose based on their preferences [34] Question: Trends in purchasing medical equipment - Management noted that the spike in equipment purchases was driven by a large rental customer and does not expect this level to continue [35]

Financial Performance - Net revenues for Q2 2024 reached $33.7 million, a 6.1% increase from $31.7 million in Q2 2023[8] - Gross profit for Q2 2024 was $16.7 million, compared to $15.8 million in Q2 2023, reflecting a gross margin improvement[8] - Operating income for Q2 2024 increased to $1.9 million, up from $1.2 million in Q2 2023[8] - Net income for Q2 2024 was $717,000, compared to $435,000 in Q2 2023, resulting in a net income per share of $0.03[8] - The company reported a comprehensive income of $716,000 for Q2 2024, compared to $607,000 in Q2 2023[8] - Total net revenue for the three months ended June 30, 2024, was $33.698 million, a 6.2% increase from $31.735 million in the same period of 2023[20] - The company reported a net income of $0.717 million for the three months ended June 30, 2024, compared to a net income of $0.435 million for the same period in 2023, reflecting an increase of 64.8%[49] - Basic earnings per share (EPS) for Q2 2024 was $0.03, up from $0.02 in Q2 2023, while diluted EPS also increased to $0.03 from $0.02[49] Assets and Liabilities - Total current assets as of June 30, 2024, were $32.9 million, an increase from $30.6 million as of December 31, 2023[7] - Total assets increased to $108.5 million as of June 30, 2024, compared to $102.9 million at the end of 2023[7] - Long-term debt rose to $34.2 million as of June 30, 2024, up from $29.1 million at the end of 2023[7] - Total liabilities increased to $55.0 million as of June 30, 2024, compared to $50.6 million at the end of 2023[7] - As of June 30, 2024, total stockholders' equity increased to $53,487,000 from $49,956,000 as of June 30, 2023, reflecting a growth of approximately 7.7%[9] - Total liabilities decreased from $59,386,000 as of June 30, 2023, to $59,303,000 as of June 30, 2024, showing a slight reduction[9] Cash Flow and Investments - Cash provided by operating activities for the six months ended June 30, 2024, was $2,686,000, an increase from $2,301,000 in the prior year[12] - Cash and cash equivalents decreased to $146,000 as of June 30, 2024, from $231,000 as of December 31, 2023[7] - The company reported a net cash used in investing activities of $7,114,000 for the six months ended June 30, 2024, compared to $5,390,000 in the prior year[12] - The company purchased medical equipment totaling $8,796,000 during the six months ended June 30, 2024, compared to $6,994,000 in the same period of 2023, representing an increase of approximately 25.8%[12] Revenue Segmentation - Patient services revenue recognized at a point in time accounted for 54.1% of total net revenues in Q2 2024, up from 52.6% in Q2 2023[20] - Device solutions revenue recognized at a point in time was $8.440 million, representing 25.0% of total revenues, compared to 24.7% in the prior year[20] - Total patient services revenue recognized over time was $18.242 million, which is a 9.3% increase from $16.697 million in the same quarter of 2023[20] - Total revenue accounted for under ASC 606 for the six months ended June 30, 2024, was $52.309 million, a 7.5% increase from $48.487 million in the same period of 2023[22] Debt and Financing - The Revolving Facility under the 2021 Credit Agreement has a gross availability of $75 million, with outstanding draws of $34,464,000, leaving an availability of $40,336,000 as of June 30, 2024[34] - The weighted-average Term Benchmark loan rate as of June 30, 2024, was 7.43%, while the actual ABR loan rate was 9.50%[38] - The Company entered into a First Amendment to the 2021 Credit Agreement, extending the maturity date to April 26, 2028, and increasing the maximum incremental revolving loans from $25 million to $35 million[33] - As of June 30, 2024, the Company was in compliance with all debt-related covenants under the 2021 Credit Agreement, as amended[33] Stock and Equity - The company approved a share repurchase program authorizing the repurchase of up to $20.0 million of its common stock through June 30, 2026, with approximately $0.3 million repurchased as of June 30, 2024[50] - The total fair value of shares vested during the six months ended June 30, 2024, was $747,525, compared to $571,105 for the same period in 2023[53] - The company had 562,512 stock options outstanding at June 30, 2024, with a weighted average exercise price of $7.17[56] Tax and Compliance - The effective tax rate for the three months ended June 30, 2024, was 45.2%, significantly higher than the 30.9% effective tax rate for the same period in 2023[46] - The Company recorded a provision for income taxes of $0.6 million on pre-tax income of $1.3 million for the three months ended June 30, 2024, resulting in an effective tax rate of 45.2%[46] - The company is not currently involved in any legal proceedings that could materially affect its financial condition[48]