Thu, Nov 14, 9:02 PM (95 days ago)
For the three months ended September 30, 2024, Escalon Medical Corp. (ESMC) reported a 5.6% decrease in net revenue to $2,781,000 compared to $2,945,000 in the same period of 2023. This decline was primarily driven by a $418,000 drop in sales of Sonomed's ultrasound products, partially offset by a $257,000 increase in Trek's gas products. The cost of goods sold remained relatively stable at 56.4% of revenue, with total costs of $1,568,000. Operating expenses saw minimal changes, with a slight increase in marketing and administrative costs, while research and development expenses decreased by 33.5% to $141,000. The net loss applicable to common shareholders was $45,187,000, compared to $34,203,000 in the prior year. Cash flow from operations improved, generating $33,329 compared to a loss of $115,962 in the previous year, attributed to decreased accounts receivable and increased deferred revenue. The company continues to face liquidity challenges, with an accumulated deficit of approximately $68.6 million. The current ratio improved slightly to 1.66, indicating stable liquidity, but ongoing losses raise concerns about the company's ability to continue as a going concern.