Electromed (ELMD) 10-Q 11 Feb 25 2025 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Dec. 31, 2024	Feb. 06, 2025
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2025
Current Fiscal Year End Date	--06-30
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
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	ELMD
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,556,844

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Dec. 31, 2024	Jun. 30, 2024
Current Assets
Cash and cash equivalents	$ 16,235,000	$ 16,080,000
Accounts receivable (net of allowances for credit losses of $45,000)	22,775,000	23,333,000
Contract assets	997,000	719,000
Inventories	3,081,000	3,712,000
Income taxes receivable	514,000
Prepaid expenses and other current assets	587,000	329,000
Total current assets	44,189,000	44,173,000
Property and equipment, net	5,216,000	5,165,000
Finite-life intangible assets, net	609,000	657,000
Other assets	108,000	87,000
Deferred income taxes	2,152,000	2,152,000
Total assets	52,274,000	52,234,000
Current Liabilities
Accounts payable	1,506,000	1,010,000
Accrued compensation	3,623,000	3,893,000
Income tax payable		277,000
Warranty reserve	1,599,000	1,567,000
Other accrued liabilities	1,939,000	930,000
Total current liabilities	8,667,000	7,677,000
Other long-term liabilities	4,000	12,000
Total liabilities	8,671,000	7,689,000
Shareholders’ Equity
Common stock, $0.01 par value per share, 13,000,000 shares authorized; 8,556,844 and 8,637,883 shares issued and outstanding, as of December 31, 2024 and June 30, 2024, respectively	86,000	87,000
Additional paid-in capital	20,940,000	20,790,000
Retained earnings	22,577,000	23,668,000
Total shareholders' equity	43,603,000	44,545,000
Total liabilities and shareholders' equity	$ 52,274,000	$ 52,234,000

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2024	Jun. 30, 2024
Statement of Financial Position [Abstract]
Accounts Receivable, Allowance for Credit Loss, Current	$ 45,000	$ 45,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized	13,000,000	13,000,000
Common stock, issued	8,556,844	8,637,883
Common stock, outstanding	8,556,844	8,637,883

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Income Statement [Abstract]
Net revenues	$ 16,255,000	$ 13,689,000	$ 30,923,000	$ 26,013,000
Cost of revenues	3,628,000	3,144,000	6,805,000	5,970,000
Gross profit	12,627,000	10,545,000	24,118,000	20,043,000
Operating expenses
Selling, general and administrative	9,834,000	8,175,000	19,221,000	17,325,000
Research and development	251,000	107,000	417,000	313,000
Total operating expenses	10,085,000	8,282,000	19,638,000	17,638,000
Operating income	2,542,000	2,263,000	4,480,000	2,405,000
Interest income, net	152,000	96,000	347,000	173,000
Net income before income taxes	2,694,000	2,359,000	4,827,000	2,578,000
Income tax expense	726,000	685,000	1,385,000	749,000
Net income	$ 1,968,000	$ 1,674,000	$ 3,442,000	$ 1,829,000
Income per share:
Basic	$ 0.23	$ 0.20	$ 0.41	$ 0.21
Diluted	$ 0.22	$ 0.19	$ 0.38	$ 0.21
Weighted-average common shares outstanding:
Basic	8,424,534	8,545,120	8,494,511	8,541,254
Diluted	8,953,349	8,800,172	8,983,726	8,791,519

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Cash Flows From Operating Activities
Net income	$ 3,442,000	$ 1,829,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	414,000	398,000
Amortization of finite-life intangible assets	78,000	25,000
Share-based compensation expense	1,652,000	791,000
Changes in operating assets and liabilities:
Accounts receivable	558,000	1,142,000
Contract assets	(278,000)	(87,000)
Inventories	500,000	(509,000)
Prepaid expenses and other assets	(279,000)	1,104,000
Income taxes receivable, net	(791,000)	(83,000)
Accounts payable and accrued liabilities	434,000	(1,171,000)
Accrued compensation	(270,000)	(212,000)
Net cash provided by operating activities	5,460,000	3,227,000
Cash Flows From Investing Activities
Expenditures for property and equipment	(270,000)	(180,000)
Expenditures for finite-life intangible assets	(25,000)	(40,000)
Net cash used for investing activities	(295,000)	(220,000)
Cash Flows From Financing Activities
Issuance of common stock upon exercise of options	346,000	55,000
Taxes paid on net share settlement of stock awards	(820,000)
Repurchase of common stock	(4,536,000)
Net cash (used for) provided by financing activities	(5,010,000)	55,000
Net increase in cash	155,000	3,062,000
Cash and cash equivalents
Beginning of period	16,080,000	7,372,000
End of period	16,235,000	10,434,000
Supplemental Disclosures of Cash Flow Information
Cash paid for income taxes	2,180,000	833,000
Supplemental Disclosures of Noncash Investing and Financing Activities
Property and equipment and intangible asset acquisitions in accounts payable	73,000	13,000
Taxes owed on net share settlement of stock awards in accrued liabilities	1,026,000
Demonstration equipment transferred between inventory and property and equipment	131,000	30,000
Issuance of common stock upon the vesting of performance-based stock units	$ 1,000

Condensed Statements of Shareho

Condensed Statements of Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Jun. 30, 2023	$ 86,000	$ 18,788,000	$ 18,793,000	$ 37,667,000
Balance at beginning (in shares) at Jun. 30, 2023	8,555,238
Net income			155,000	155,000
Exercise of common stock options, vesting of performance stock units and issuance of restricted stock, net of cancellations and tax withholdings		29,000		29,000
Exercise of common stock options, vesting of performance stock units and issuance of restricted stock, net of cancellations and tax withholdings (in shares)	23,812
Share-based compensation expense		371,000		371,000
Ending balance, value at Sep. 30, 2023	$ 86,000	19,188,000	18,948,000	38,222,000
Balance at ending (in shares) at Sep. 30, 2023	8,579,050
Beginning balance, value at Jun. 30, 2023	$ 86,000	18,788,000	18,793,000	37,667,000
Balance at beginning (in shares) at Jun. 30, 2023	8,555,238
Net income				1,829,000
Ending balance, value at Dec. 31, 2023	$ 86,000	19,634,000	20,622,000	40,342,000
Balance at ending (in shares) at Dec. 31, 2023	8,602,677
Beginning balance, value at Sep. 30, 2023	$ 86,000	19,188,000	18,948,000	38,222,000
Balance at beginning (in shares) at Sep. 30, 2023	8,579,050
Net income			1,674,000	1,674,000
Exercise of common stock options, vesting of performance stock units and issuance of restricted stock, net of cancellations and tax withholdings		26,000		26,000
Exercise of common stock options, vesting of performance stock units and issuance of restricted stock, net of cancellations and tax withholdings (in shares)	23,627
Share-based compensation expense		420,000		420,000
Ending balance, value at Dec. 31, 2023	$ 86,000	19,634,000	20,622,000	40,342,000
Balance at ending (in shares) at Dec. 31, 2023	8,602,677
Beginning balance, value at Jun. 30, 2024	$ 87,000	20,790,000	23,668,000	$ 44,545,000
Balance at beginning (in shares) at Jun. 30, 2024	8,637,883			8,637,883
Net income			1,474,000	$ 1,474,000
Exercise of common stock options, vesting of performance stock units and issuance of restricted stock, net of cancellations and tax withholdings	$ 1,000	(671,000)		(670,000)
Exercise of common stock options, vesting of performance stock units and issuance of restricted stock, net of cancellations and tax withholdings (in shares)	81,944
Share-based compensation expense		697,000		697,000
Repurchase of common stock	$ (3,000)		(4,555,000)	(4,558,000)
Repurchase of common stock (in shares)	(262,756)
Ending balance, value at Sep. 30, 2024	$ 85,000	20,816,000	20,587,000	41,488,000
Balance at ending (in shares) at Sep. 30, 2024	8,457,071
Beginning balance, value at Jun. 30, 2024	$ 87,000	20,790,000	23,668,000	$ 44,545,000
Balance at beginning (in shares) at Jun. 30, 2024	8,637,883			8,637,883
Net income				$ 3,442,000
Repurchase of common stock (in shares)	(262,756)
Ending balance, value at Dec. 31, 2024	$ 86,000	20,940,000	22,577,000	$ 43,603,000
Balance at ending (in shares) at Dec. 31, 2024	8,556,844			8,556,844
Beginning balance, value at Sep. 30, 2024	$ 85,000	20,816,000	20,587,000	$ 41,488,000
Balance at beginning (in shares) at Sep. 30, 2024	8,457,071
Net income			1,968,000	1,968,000
Exercise of common stock options, vesting of performance stock units and issuance of restricted stock, net of cancellations and tax withholdings	$ 1,000	(831,000)		(830,000)
Exercise of common stock options, vesting of performance stock units and issuance of restricted stock, net of cancellations and tax withholdings (in shares)	99,773
Share-based compensation expense		955,000		955,000
Repurchase of common stock			22,000	22,000
Ending balance, value at Dec. 31, 2024	$ 86,000	$ 20,940,000	$ 22,577,000	$ 43,603,000
Balance at ending (in shares) at Dec. 31, 2024	8,556,844			8,556,844

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended				6 Months Ended
	Dec. 31, 2024	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2024	Dec. 31, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ 1,968,000	$ 1,474,000	$ 1,674,000	$ 155,000	$ 3,442,000	$ 1,829,000

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2024
Trading Arrangements, by Individual [Table]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Interim Financial Reporting

Interim Financial Reporting	6 Months Ended
	Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interim Financial Reporting	Note 1. Interim Financial Reporting Nature of business: Since its inception, the Company has operated in a single industry segment: developing, manufacturing, and marketing medical equipment. Basis of presentation: Annual Report on Form 10-K for the fiscal year ended June 30, 2024 A summary of the Company’s significant accounting policies and estimates: Our significant accounting policies are detailed in Note 1. Nature of Business and Summary of Significant Accounting Policies of the Annual Report on Form 10-K for the year ended June 30, 2024. There have been no significant changes to these policies that have had a material impact on the Unaudited Condensed Financial Statements and the accompanying disclosure notes for the three and six months ended December 31, 2024. Recently Issued Accounting Standards ASU 2023-07 - Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The standard introduces increased disclosure requirements primarily related to significant segment expenses, along with disclosure of key criteria and metrics utilized by the Chief Operating Decision Maker (“CODM”). It is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company currently expects to adopt this standard for its fiscal year ending June 30, 2025, and is evaluating the impact of adoption and additional disclosure requirements. ASU 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures The standard introduces increased transparency about income tax information through the requirement of increased disclosures around specific categories in the rate reconciliation and requires additional information on reconciling items. It is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company currently expects to adopt this standard for its fiscal year ending June 30, 2026, and is evaluating the impact of adoption and additional disclosure requirements. ASU 2024-03 Reporting Comprehensive Income—Expense Disaggregation Disclosures The standard introduces increased disclosure requirements for certain costs and expenses. It is effective for annual reporting periods beginning after December 15, 2026, with early adoption permitted. The Company currently expects to adopt this standard for its fiscal year ending June 30, 2027, and is evaluating the impact of adoption and additional disclosure requirements.

Revenues

Revenues	6 Months Ended
	Dec. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenues	Note 2. Revenues Revenue is measured based on consideration specified in the contract with a customer, adjusted for any applicable estimates of variable consideration and other factors affecting the transaction price. When a contract with a customer has been established, revenue is recognized when a performance obligation is satisfied by transferring control of a distinct good or service to a customer, typically upon shipment or delivery. Disaggregation of revenues. In the following table, net revenues are disaggregated by market: Schedule of disaggregated revenue Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Homecare $ 14,593,000 $ 12,668,000 $ 27,804,000 $ 23,821,000 Hospital 723,000 619,000 1,413,000 1,126,000 Homecare distributor 807,000 280,000 1,394,000 853,000 Other 132,000 122,000 312,000 213,000 Total $ 16,255,000 $ 13,689,000 $ 30,923,000 $ 26,013,000 In the following table, net homecare revenue is disaggregated by payer type: Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Commercial $ 7,327,000 $ 5,945,000 $ 14,178,000 $ 11,710,000 Medicare 5,478,000 4,893,000 10,245,000 8,841,000 Medicare Supplemental 1,388,000 1,287,000 2,499,000 2,270,000 Medicaid 196,000 314,000 438,000 607,000 Other 204,000 229,000 444,000 393,000 Total $ 14,593,000 $ 12,668,000 $ 27,804,000 $ 23,821,000 Contract balances. Schedule of contract asset December 31, 2024 June 30, 2024 Receivables, included in “Accounts receivable, net of allowances for credit losses” $ 22,775,000 $ 23,333,000 Contract Assets $ 997,000 $ 719,000 Total Accounts receivable, net of allowances for credit losses, as of June 30, 2023, were $24,130,000. Six Months Ended Fiscal Year Ended Increase (decrease) Increase (decrease) Contract assets, beginning $ 719,000 $ 487,000 Reclassification of contract assets to accounts receivable (1,441,000 ) (2,325,000 ) Contract assets recognized 1,600,000 2,840,000 Increase (decrease) as a result of changes in the estimate of amounts to be realized from payers, excluding amounts transferred to receivables during the period 119,000 (283,000 ) Contract assets, ending $ 997,000 $ 719,000

Selected Balance Sheet Informat

Selected Balance Sheet Information	6 Months Ended
	Dec. 31, 2024
Inventory Disclosure [Abstract]
Selected Balance Sheet Information	Note 3. Selected Balance Sheet Information Inventory consists of the following: Schedule of components of inventories December 31, 2024 June 30, 2024 Parts inventory $ 2,268,000 $ 2,556,000 Work in process 287,000 454,000 Finished goods 424,000 834,000 Estimated inventory to be returned 344,000 265,000 Less: Reserve for obsolescence (242,000 ) (397,000 ) Total $ 3,081,000 $ 3,712,000 Other accrued liabilities consist of the following: Schedule of components of other accrued liabilities December 31, 2024 June 30, 2024 Accrued insurance recoupments $ 584,000 $ 467,000 Accrued tax withholding upon equity award vesting 1,064,000 - Other accrued expenses 291,000 463,000 Total $ 1,939,000 $ 930,000

Warranty Reserve

Warranty Reserve	6 Months Ended
	Dec. 31, 2024
Guarantees and Product Warranties [Abstract]
Warranty Reserve	Note 4. Warranty Reserve The Company provides a lifetime warranty on its products to the prescribed patient for sales within the U.S. and a one to five-year warranty for all homecare distributor, hospital and other sales. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time the product is shipped. Factors that affect the Company’s warranty reserve include the number of units shipped, historical and anticipated rates of warranty claims, the product’s useful life and cost per claim. The Company periodically assesses the adequacy of its recorded warranty reserve and adjusts the amounts as necessary. Changes in the Company’s warranty reserve were as follows: Six Months Ended Fiscal Year Ended Warranty reserve, beginning $ 1,567,000 $ 1,378,000 Accrual for products sold 216,000 559,000 Expenditures and costs incurred for warranty claims (184,000 ) (370,000 ) Warranty reserve, ending $ 1,599,000 $ 1,567,000

Income Taxes

Income Taxes	6 Months Ended
	Dec. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Note 5. Income Taxes Income tax expenses were estimated at $ 726,000 1,385,000 26.9 28.7 135,000 139,000 Income tax expense was estimated at $ 685,000 749,000 28.8 28.9 1,000 1,000 The Company is subject to U.S. federal and state income tax in multiple jurisdictions. With limited exceptions, years prior to the Company’s fiscal year ended June 30, 2021, are no longer open to U.S. federal, state or local examinations by taxing authorities. The Company is not under any current income tax examinations by any federal, state or local taxing authority. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs.

Financing Arrangements

Financing Arrangements	6 Months Ended
	Dec. 31, 2024
Debt Disclosure [Abstract]
Financing Arrangements	Note 6. Financing Arrangements The Company has a credit facility that provides for a $ 2,500,000 no 7.50 1.00 2,500,000 57.00 2,500,000 The documents governing the line of credit contain certain financial and non-financial covenants that include a minimum tangible net worth covenant of not less than $ 10,125,000

Common Stock

Common Stock	6 Months Ended
	Dec. 31, 2024
Common Stock
Common Stock	Note 7. Common Stock Authorized shares: 15,000,000 13,000,000 0.01 2,000,000 On September 11, 2024, the Company’s Board of Directors (the “Board”) approved a stock repurchase authorization. Under the authorization, the Company can repurchase up to $ 5,000,000 262,756 4,536,000 17.26

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Note 8. Share-Based Compensation The Company’s share-based compensation plans are described in Note 8 to the financial statements included in the Company’s Annual Report on Form 10-K for fiscal 2024. Share-based compensation expenses were $ 1,652,000 791,000 Stock Options Stock option transactions during the six months ended December 31, 2024, are summarized as follows: Number of Shares Weighted-Average Share Outstanding at June 30, 2024 635,073 $ 8.49 Granted 62,432 $ 17.43 Exercised (38,003 ) $ 9.96 Cancelled or Forfeited (6,698 ) $ 10.74 Outstanding at December 31, 2024 652,804 $ 9.24 The following assumptions were used to estimate the fair value of stock options granted: Six Months Ended Fiscal Year Ended Risk-free interest rate 3.69 4.14 3.85 4.64 Expected term (years) 6 6 Expected volatility 53 51 52 The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. On December 31, 2024, the weighted average remaining contractual term for all outstanding stock options was 6.3 13,260,000 652,804 398,001 8,861,000 886,000 2.4 Restricted Stock During the six months ended December 31, 2024, the Company issued restricted stock awards to employees totaling 21,400 3 17.25 21,000 six 30.78 62,817 19.59 909,000 1.2 During the six months ended December 31, 2024, the Company issued restricted stock units to employees totaling 65,810 3 17.41 63,110 17.42 882,000 2.7 Performance-Based Restricted Stock Units The Company granted 175,000 The performance-based restricted stock units were eligible to vest and settle into shares of common stock on a 1-for-1 basis with respect to one-half of the shares upon achieving a total shareholder return of 50% and the remaining shares upon a total shareholder return of 100%, in each case within four years of the date of grant. The grant date fair value of the awards was determined using a Monte Carlo valuation model with an expected term of four years. 50 87,500 100 87,500 As a result of the most recent vesting, unrecognized stock-based compensation expense of $ 359,000 2.5 718,000 Stock based compensation expense recognized for PSUs was $ 863,000 145,000

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 9. Commitments and Contingencies The Company is occasionally involved in claims and disputes arising in the ordinary course of business. The Company insures certain business risks where possible to mitigate the financial impact of individual claims and establishes reserves for an estimate of any probable cost of settlement or other disposition.

Segment Reporting

Segment Reporting	6 Months Ended
	Dec. 31, 2024
Segment Reporting [Abstract]
Segment Reporting	Note 10. Segment Reporting Our President and Chief Executive Officer is our chief operating decision maker (“CODM”). The CODM reviews financial information, including long-lived assets, presented on a consolidated basis, accompanied by information about revenue by market, for purposes of allocating resources and evaluating financial performance. We have a single active product and engage in the single business activity of selling and supporting that single product. There are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated level. Accordingly, we have determined that we have a single reportable and operating segment structure. We and our CODM evaluate performance based on revenue from our single product in the markets in which the Company operates. Revenue by market is described above in Note 2.

Earnings Per Common Share (_EPS

Earnings Per Common Share (“EPS”)	6 Months Ended
	Dec. 31, 2024
Earnings Per Share [Abstract]
Earnings Per Common Share (“EPS”)	Note 11. Earnings Per Common Share (“EPS”) The computations of the basic and diluted EPS amounts were as follows: Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Net Income $ 1,968,000 $ 1,674,000 $ 3,442,000 $ 1,829,000 Weighted-average common shares outstanding: Basic 8,424,534 8,545,120 8,494,511 8,541,254 Effect of dilutive common stock equivalents 528,815 255,052 489,215 250,265 Diluted 8,953,349 8,800,172 8,983,726 8,791,519 Earnings per common share: Basic $ 0.23 $ 0.20 $ 0.41 $ 0.21 Diluted $ 0.22 $ 0.19 $ 0.38 $ 0.21 Common stock equivalents excluded from the calculation of diluted earnings per share because their impact was anti-dilutive were 8,865 405,974 43,498 404,973

Interim Financial Reporting (Po

Interim Financial Reporting (Policies)	6 Months Ended
	Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards ASU 2023-07 - Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The standard introduces increased disclosure requirements primarily related to significant segment expenses, along with disclosure of key criteria and metrics utilized by the Chief Operating Decision Maker (“CODM”). It is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company currently expects to adopt this standard for its fiscal year ending June 30, 2025, and is evaluating the impact of adoption and additional disclosure requirements. ASU 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures The standard introduces increased transparency about income tax information through the requirement of increased disclosures around specific categories in the rate reconciliation and requires additional information on reconciling items. It is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company currently expects to adopt this standard for its fiscal year ending June 30, 2026, and is evaluating the impact of adoption and additional disclosure requirements. ASU 2024-03 Reporting Comprehensive Income—Expense Disaggregation Disclosures The standard introduces increased disclosure requirements for certain costs and expenses. It is effective for annual reporting periods beginning after December 15, 2026, with early adoption permitted. The Company currently expects to adopt this standard for its fiscal year ending June 30, 2027, and is evaluating the impact of adoption and additional disclosure requirements.

Revenues (Tables)

Revenues (Tables)	6 Months Ended
	Dec. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of disaggregated revenue	Disaggregation of revenues. In the following table, net revenues are disaggregated by market: Schedule of disaggregated revenue Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Homecare $ 14,593,000 $ 12,668,000 $ 27,804,000 $ 23,821,000 Hospital 723,000 619,000 1,413,000 1,126,000 Homecare distributor 807,000 280,000 1,394,000 853,000 Other 132,000 122,000 312,000 213,000 Total $ 16,255,000 $ 13,689,000 $ 30,923,000 $ 26,013,000 In the following table, net homecare revenue is disaggregated by payer type: Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Commercial $ 7,327,000 $ 5,945,000 $ 14,178,000 $ 11,710,000 Medicare 5,478,000 4,893,000 10,245,000 8,841,000 Medicare Supplemental 1,388,000 1,287,000 2,499,000 2,270,000 Medicaid 196,000 314,000 438,000 607,000 Other 204,000 229,000 444,000 393,000 Total $ 14,593,000 $ 12,668,000 $ 27,804,000 $ 23,821,000
Schedule of contract asset	Contract balances. Schedule of contract asset December 31, 2024 June 30, 2024 Receivables, included in “Accounts receivable, net of allowances for credit losses” $ 22,775,000 $ 23,333,000 Contract Assets $ 997,000 $ 719,000 Total Accounts receivable, net of allowances for credit losses, as of June 30, 2023, were $24,130,000. Six Months Ended Fiscal Year Ended Increase (decrease) Increase (decrease) Contract assets, beginning $ 719,000 $ 487,000 Reclassification of contract assets to accounts receivable (1,441,000 ) (2,325,000 ) Contract assets recognized 1,600,000 2,840,000 Increase (decrease) as a result of changes in the estimate of amounts to be realized from payers, excluding amounts transferred to receivables during the period 119,000 (283,000 ) Contract assets, ending $ 997,000 $ 719,000

Selected Balance Sheet Inform_2

Selected Balance Sheet Information (Tables)	6 Months Ended
	Dec. 31, 2024
Inventory Disclosure [Abstract]
Schedule of components of inventories	Inventory consists of the following: Schedule of components of inventories December 31, 2024 June 30, 2024 Parts inventory $ 2,268,000 $ 2,556,000 Work in process 287,000 454,000 Finished goods 424,000 834,000 Estimated inventory to be returned 344,000 265,000 Less: Reserve for obsolescence (242,000 ) (397,000 ) Total $ 3,081,000 $ 3,712,000
Schedule of components of other accrued liabilities	Other accrued liabilities consist of the following: Schedule of components of other accrued liabilities December 31, 2024 June 30, 2024 Accrued insurance recoupments $ 584,000 $ 467,000 Accrued tax withholding upon equity award vesting 1,064,000 - Other accrued expenses 291,000 463,000 Total $ 1,939,000 $ 930,000

Warranty Reserve (Tables)

Warranty Reserve (Tables)	6 Months Ended
	Dec. 31, 2024
Guarantees and Product Warranties [Abstract]
Changes in the Company’s warranty reserve were as follows:	Changes in the Company’s warranty reserve were as follows: Six Months Ended Fiscal Year Ended Warranty reserve, beginning $ 1,567,000 $ 1,378,000 Accrual for products sold 216,000 559,000 Expenditures and costs incurred for warranty claims (184,000 ) (370,000 ) Warranty reserve, ending $ 1,599,000 $ 1,567,000

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]
Stock option transactions during the six months ended December 31, 2024, are summarized as follows:	Stock option transactions during the six months ended December 31, 2024, are summarized as follows: Number of Shares Weighted-Average Share Outstanding at June 30, 2024 635,073 $ 8.49 Granted 62,432 $ 17.43 Exercised (38,003 ) $ 9.96 Cancelled or Forfeited (6,698 ) $ 10.74 Outstanding at December 31, 2024 652,804 $ 9.24
The following assumptions were used to estimate the fair value of stock options granted:	The following assumptions were used to estimate the fair value of stock options granted: Six Months Ended Fiscal Year Ended Risk-free interest rate 3.69 4.14 3.85 4.64 Expected term (years) 6 6 Expected volatility 53 51 52

Earnings Per Common Share (_E_2

Earnings Per Common Share (“EPS”) (Tables)	6 Months Ended
	Dec. 31, 2024
Earnings Per Share [Abstract]
The computations of the basic and diluted EPS amounts were as follows:	The computations of the basic and diluted EPS amounts were as follows: Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Net Income $ 1,968,000 $ 1,674,000 $ 3,442,000 $ 1,829,000 Weighted-average common shares outstanding: Basic 8,424,534 8,545,120 8,494,511 8,541,254 Effect of dilutive common stock equivalents 528,815 255,052 489,215 250,265 Diluted 8,953,349 8,800,172 8,983,726 8,791,519 Earnings per common share: Basic $ 0.23 $ 0.20 $ 0.41 $ 0.21 Diluted $ 0.22 $ 0.19 $ 0.38 $ 0.21

Schedule of disaggregated reven

Schedule of disaggregated revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 16,255,000	$ 13,689,000	$ 30,923,000	$ 26,013,000
Homecare [Member]
Disaggregation of Revenue [Line Items]
Revenue	14,593,000	12,668,000	27,804,000	23,821,000
Homecare [Member] | Commercial [Member]
Disaggregation of Revenue [Line Items]
Revenue	7,327,000	5,945,000	14,178,000	11,710,000
Homecare [Member] | Medicare [Member]
Disaggregation of Revenue [Line Items]
Revenue	5,478,000	4,893,000	10,245,000	8,841,000
Homecare [Member] | Medicare Supplemental [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,388,000	1,287,000	2,499,000	2,270,000
Homecare [Member] | Medicaid Member
Disaggregation of Revenue [Line Items]
Revenue	196,000	314,000	438,000	607,000
Homecare [Member] | Other Member
Disaggregation of Revenue [Line Items]
Revenue	204,000	229,000	444,000	393,000
Hospital [Member]
Disaggregation of Revenue [Line Items]
Revenue	723,000	619,000	1,413,000	1,126,000
Homecare Distributor [Member]
Disaggregation of Revenue [Line Items]
Revenue	807,000	280,000	1,394,000	853,000
Other Member
Disaggregation of Revenue [Line Items]
Revenue	$ 132,000	$ 122,000	$ 312,000	$ 213,000

Schedule of contract asset (Det

Schedule of contract asset (Details) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2024	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Receivables, included in “Accounts receivable, net of allowances for credit losses”	$ 22,775,000	$ 23,333,000
Contract Assets	997,000	719,000
Contract assets beginning	719,000	487,000
Reclassification of contract assets to accounts receivable	(1,441,000)	(2,325,000)
Contract assets recognized	1,600,000	2,840,000
Increase (decrease) as a result of changes in the estimate of amounts to be realized frompayers, excluding amounts transferred to receivables during the period	119,000	(283,000)
Contract assets, ending	$ 997,000	$ 719,000

Schedule of components of inven

Schedule of components of inventories (Details) - USD ($)	Dec. 31, 2024	Jun. 30, 2024
Inventory Disclosure [Abstract]
Parts inventory	$ 2,268,000	$ 2,556,000
Work in process	287,000	454,000
Finished goods	424,000	834,000
Estimated inventory to be returned	344,000	265,000
Less: Reserve for obsolescence	(242,000)	(397,000)
Total	$ 3,081,000	$ 3,712,000

Schedule of components of other

Schedule of components of other accrued liabilities (Details) - USD ($)	Dec. 31, 2024	Jun. 30, 2024
Inventory Disclosure [Abstract]
Accrued insurance recoupments	$ 584,000	$ 467,000
Accrued tax withholding upon equity award vesting	1,064,000
Other accrued expenses	291,000	463,000
Total	$ 1,939,000	$ 930,000

Changes in the Company_s warran

Changes in the Company’s warranty reserve were as follows: (Details) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2024	Jun. 30, 2024
Guarantees and Product Warranties [Abstract]
Warranty reserve, beginning	$ 1,567,000	$ 1,378,000
Accrual for products sold	216,000	559,000
Expenditures and costs incurred for warranty claims	(184,000)	(370,000)
Warranty reserve, ending	$ 1,599,000	$ 1,567,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 726,000	$ 685,000	$ 1,385,000	$ 749,000
Effective tax rate	26.90%	28.80%	28.70%	28.90%
Current income tax expense	$ 135,000	$ 1,000	$ 139,000	$ 1,000

Financing Arrangements (Details

Financing Arrangements (Details Narrative) - USD ($)	6 Months Ended
	Dec. 31, 2024	Jun. 30, 2024
Line of Credit Facility [Line Items]
Minimum tangible net worth to be maintained	$ 10,125,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	2,500,000
Line of credit balance	$ 0	$ 0
Basis spread on rate	1%
Available borrowing capacity	$ 2,500,000
Borrowing capacity of eligible accounts receivable percent	57%
Available borrowing capacity	$ 2,500,000
Revolving Credit Facility [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Interest rate	7.50%

Common Stock (Details Narrative

Common Stock (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Sep. 30, 2024	Dec. 31, 2024	Sep. 11, 2024	Jun. 30, 2024
Common stock, authorized		13,000,000		13,000,000
Common stock, par value (in dollars per share)		$ 0.01		$ 0.01
Repurchase of common stock		$ 4,536,000
Share price		$ 17.26
Board of Directors Chairman [Member]
Common stock, authorized			5,000,000
Common Stock [Member]
Common stock, authorized		13,000,000
Common stock, par value (in dollars per share)		$ 0.01
Number of share repurchased	262,756	262,756
Capital Stock [Member]
Common stock, authorized		15,000,000
Authorized Shares Undesignated Stock [Member]
Common stock, authorized		2,000,000

Stock option transactions durin

Stock option transactions during the six months ended December 31, 2024, are summarized as follows: (Details)	6 Months Ended
	Dec. 31, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Option outstanding, ending	652,804
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Option outstanding , beginning	635,073
Weighted average grant date fair value, beginning | $ / shares	$ 8.49
Granted	62,432
Granted | $ / shares	$ 17.43
Exercised	(38,003)
Exercised | $ / shares	$ 9.96
Cancelled or Forfeited	(6,698)
Cancelled or Forfeited | $ / shares	$ 10.74
Option outstanding, ending	652,804
Weighted average grant date fair value, ending | $ / shares	$ 9.24

The following assumptions were

The following assumptions were used to estimate the fair value of stock options granted: (Details)	6 Months Ended	12 Months Ended
	Dec. 31, 2024	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Risk free interest rate - minimum	3.69%	3.85%
Risk free interest rate - maximum	4.14%	4.64%
Expected term (years)	6 years	6 years
Expected volatility	53%
Expected volatility - minimum		51%
Expected volatility - maximum		52%

Share-Based Compensation (Detai

Share-Based Compensation (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Sep. 30, 2024	Dec. 31, 2024	Dec. 31, 2023	Jun. 30, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation expense			$ 1,652,000	$ 791,000
Stock option issued to employee	652,804		652,804
TSR target 100% exceeded	100%	50%	100%
Shares, Issued	87,500		87,500
CEO [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares, Issued		87,500
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense, period for recognition			6 years 3 months 18 days
Options exercisable, intrinsic value	$ 13,260,000		$ 13,260,000
Stock option issued to employee	652,804		652,804		635,073
Vested and exercisable	398,001		398,001
Options exercisable, intrinsic value	$ 8,861,000		$ 8,861,000
Unrecognized compensation expense	886,000		$ 886,000
Unrecognized compensation expense, period for recognition			2 years 4 months 24 days
Shares granted			62,432
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense, period for recognition			2 years 8 months 12 days
Unrecognized compensation expense	$ 882,000		$ 882,000
Restricted stock - unvested	62,817		62,817
Weight average fair value - unvested restricted stock (per share)	$ 17.42		$ 17.42
Restricted stock - unvested	63,110		63,110
Restricted Stock [Member] | Employee [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense, period for recognition		1 year 2 months 12 days
Unrecognized compensation expense	$ 909,000		$ 909,000
Stock issued			21,400
Vesting term			3 years
Fair value of per share			$ 17.25
Weight average fair value - unvested restricted stock (per share)	$ 19.59		$ 19.59
Restricted Stock [Member] | Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock issued			21,000
Vesting term			6 months
Fair value of per share			$ 30.78
Restricted Stock [Member] | Employee One [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock issued			65,810
Vesting term			3 years
Fair value of per share			$ 17.41
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation expense			$ 863,000	$ 145,000
Unrecognized compensation expense, period for recognition	2 years 6 months
Shares granted			175,000
Other description			The performance-based restricted stock units were eligible to vest and settle into shares of common stock on a 1-for-1 basis with respect to one-half of the shares upon achieving a total shareholder return of 50% and the remaining shares upon a total shareholder return of 100%, in each case within four years of the date of grant. The grant date fair value of the awards was determined using a Monte Carlo valuation model with an expected term of four years.
Unrecognized compensation expense	$ 359,000		$ 718,000

The computations of the basic a

The computations of the basic and diluted EPS amounts were as follows: (Details) - USD ($)	3 Months Ended				6 Months Ended
	Dec. 31, 2024	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2024	Dec. 31, 2023
Earnings Per Share [Abstract]
Net Income	$ 1,968,000	$ 1,474,000	$ 1,674,000	$ 155,000	$ 3,442,000	$ 1,829,000
Weighted-average common shares outstanding:
Basic	8,424,534		8,545,120		8,494,511	8,541,254
Effect of dilutive common stock equivalents	528,815		255,052		489,215	250,265
Diluted	8,953,349		8,800,172		8,983,726	8,791,519
Earnings per common share:
Basic	$ 0.23		$ 0.20		$ 0.41	$ 0.21
Diluted	$ 0.22		$ 0.19		$ 0.38	$ 0.21

Earnings Per Common Share (_E_3

Earnings Per Common Share (“EPS”) (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Earnings Per Share [Abstract]
Common stock equivalents	8,865	405,974	43,498	404,973