Revenue Performance - Total net revenues for the three months ended December 31, 2022, were $11,729,000, an increase of 14.5% compared to $10,248,000 for the same period in 2021[30] - Home care revenue for the six months ended December 31, 2022, was $20,364,000, up 9.0% from $18,688,000 in the prior year[30] - Revenue from the institutional market for the three months ended December 31, 2022, was $589,000, representing a 76.8% increase from $333,000 in the same period of 2021[30] - The company recognized $4,040,000 in commercial payer revenue for the three months ended December 31, 2022, compared to $3,595,000 for the same period in 2021, reflecting a 12.4% increase[30] - Medicare revenue for the six months ended December 31, 2022, was $11,612,000, an increase of 9.8% from $10,576,000 in the same period of 2021[30] Income and Expenses - The company reported a basic net income per common share of $0.15 for the three months ended December 31, 2022, compared to $0.12 for the same period in 2021[24] - Income tax expense for the three months ended December 31, 2022, was estimated at $304,000, with an effective tax rate of 23.7%[52] - Share-based compensation expense for the six months ended December 31, 2022, was $316,000, compared to $526,000 for the same period in 2021[59] Financial Position - The company has a $2,500,000 revolving line of credit with no outstanding principal balance as of December 31, 2022, and the maximum eligible for borrowing was fully utilized[55] - Total inventory as of December 31, 2022, was $3,473,000, up from $3,178,000 as of June 30, 2022, with parts inventory being the largest component at $3,075,000[48] - The warranty reserve increased to $1,337,000 at the end of December 2022 from $1,256,000 at the end of June 2022, with accruals for products sold amounting to $222,000 during the period[50] Contract and Revenue Recognition - The company’s revenue recognition for home care sales occurs at the point of shipment, with control transferring to the patient upon delivery[34] - The company utilizes historical collection patterns to estimate variable consideration for contracts, minimizing the risk of significant revenue reversal[37] - The company’s institutional sales are negotiated directly with institutions, with no insurance reimbursement involved, and each product sold is considered a separate performance obligation[42] - The company's accounts receivable balance includes amounts due from individuals, institutions, and distributors, with an allowance for doubtful accounts determined by evaluating individual customer receivables[45] - Contract assets at the end of December 2022 were $507,000, an increase from $286,000 at the beginning of the period, with $1,008,000 recognized during the six months[47] Stock and Legal Matters - The company repurchased 239,995 shares of common stock for a total cost of $2,725,000, averaging $11.36 per share, as of December 31, 2022[58] - The company issued 32,400 restricted stock awards to employees during the six months ended December 31, 2022, with a weighted average fair value of $9.92 per share[63] - The company is involved in a class action lawsuit related to a data breach, with a settlement agreement preliminarily approved in January 2023, pending final court approval[65] Future Outlook - The company anticipates that the adoption of ASU 2016-13 will not have a significant impact on its consolidated results of operations and financial condition[25]
Electromed(ELMD) - 2023 Q2 - Quarterly Report