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Escalon Medical Corp. (ESMC0.00%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing an increase in net revenue to $3,221,000 from $2,869,000 in the same quarter the previous year. This increase is attributed to higher sales of Trek's gas products and Sonomed's ultrasound products.
Cost of goods sold for the quarter was $1,647,000, representing 51.1% of total revenue, compared to 56.0% in the same quarter of the previous year. This decrease in cost ratio is due to changes in product sales mix and geographic differences.
The company reported a net income of $246,021 for the quarter, compared to a net loss of $76,321 in the previous year. After preferred dividends, net income attributable to common shareholders was $122,724, compared to a loss of $89,327 in the previous year.
Marketing, general, and administrative expenses decreased to $1,162,000 from $1,184,000, primarily due to a decrease in consulting and network expenses.
Research and development expenses increased to $156,000 from $148,000, mainly due to a slight increase in Digital consulting expenses.
Cash provided by operating activities was $334,000, while there were no cash flows from investing activities. Cash used in financing activities was $22,655, primarily due to loan and EIDL loan repayments.
Escalon had a working capital of $2,093,000 as of December 31, 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 business loan agreement with TD Bank and an Economic Injury Disaster Loan (EIDL).
Escalon identified a material weakness in its internal controls over financial reporting related to the valuation of inventory and allowance for doubtful accounts.
The company continues to focus on its operations in the healthcare market, specializing in ophthalmology, and highlights its dependence on a few large customers and suppliers.
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 February 14, 2025. To report an error, please email earnings@qz.com.