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Escalon Medical Corp. (ESMC0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net revenue to $2,781,000 from $2,945,000 in the same quarter the previous year. The decrease is attributed to a decline in sales of Sonomed's ultrasound products, offset by an increase in sales of Trek's gas products.
Cost of goods sold for the quarter was $1,568,000, representing 56.4% of total revenue, compared to 56.0% in the same quarter of the previous year. The increase in cost ratio is due to changes in product sales mix and geographic differences.
Marketing, general, and administrative expenses were $1,099,000 for the quarter, a slight decrease from $1,100,000 in the previous year. The decrease was due to reductions in consulting and network expenses, offset by increases in other areas.
Research and development expenses decreased to $141,000 from $212,000 in the previous year, primarily due to decreased image management consulting expenses.
The company reported a net loss of $32,217 for the quarter, compared to a net loss of $21,197 in the previous year. After undeclared dividends on preferred stock, the net loss applicable to common shareholders was $45,187, compared to $34,203 in the previous year.
Cash provided by operating activities was $33,329, while there were no cash flows from investing activities. Cash used in financing activities was $12,634, primarily due to loan repayments.
Escalon had a working capital of $1,767,000 as of September 30, 2024. The company acknowledges its dependence on future profitability and potential financing to meet future obligations.
The filing also details various financial agreements, including a note payable with TD Bank (TD-0.20%) and an Economic Injury Disaster Loan (EIDL).
Escalon does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting related to inventory valuation and allowance for doubtful accounts.
Escalon continues to focus on its operations in the healthcare market, specializing in ophthalmology, and highlights its dependence on a few large customers and suppliers for a significant portion of its business.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Escalon Medical Corp. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.