Escalon Medical Corp. Files 2024 10-K

TL;DR

ESMC 2024 10-K filed: Assets $7.4M, Liabilities $2M. Full financials inside.

AI Summary

Escalon Medical Corp. (ESMC) filed its 10-K for the fiscal year ending June 30, 2024. The company reported total assets of $7,415,329 and total liabilities of $2,000,000 as of June 30, 2024. Revenue for the fiscal year was not explicitly stated in the provided snippet, but the filing covers the period from July 1, 2023, to June 30, 2024.

Why It Matters

This filing provides investors with a comprehensive overview of Escalon Medical Corp.'s financial health and operational performance for the fiscal year 2024, including asset and liability figures.

Risk Assessment

Risk Level: low — The provided snippet is a factual filing summary and does not contain information that inherently suggests high risk.

Key Numbers

• $7.4M — Total Assets (As of June 30, 2024)
• $2.0M — Total Liabilities (As of June 30, 2024)
• 2024-06-30 — Fiscal Year End (Reporting period)

Key Players & Entities

• Escalon Medical Corp. (company) — Filer of the 10-K
• 0000862668-24-000022.txt (document) — Accession number for the filing
• 20240630 (date) — Conformed period of report
• 20240930 (date) — Filed as of date
• $7,415,329 (dollar_amount) — Total assets as of June 30, 2024
• $2,000,000 (dollar_amount) — Total liabilities as of June 30, 2024

FAQ

Key Financial Figures

• $0.001 — the Act: NONE Common Stock, par value $0.001 Indicate by check mark if the registr
• $688,000 — ne 30, 2024 and 2023 were approximately $688,000 and $819,000, respectively. Manufactu
• $819,000 — nd 2023 were approximately $688,000 and $819,000, respectively. Manufacturing and Dist
• $68.5 m — 2024, we had an accumulated deficit of $68.5 million, and had incurred historical recu

Filing Documents

• esmc-20240630.htm (10-K) — 1064KB
• esmc_20240630-10kex231.htm (EX-23.1) — 3KB
• esmc_20240630-10kex311.htm (EX-31.1) — 10KB
• esmc_20241630-10kex312.htm (EX-31.2) — 9KB
• esmc_20240630-10kex321.htm (EX-32.1) — 5KB
• esmc_20240630-10kex322.htm (EX-32.2) — 5KB
• 0000862668-24-000022.txt ( ) — 6162KB
• esmc-20240630.xsd (EX-101.SCH) — 40KB
• esmc-20240630_cal.xml (EX-101.CAL) — 64KB
• esmc-20240630_def.xml (EX-101.DEF) — 265KB
• esmc-20240630_lab.xml (EX-101.LAB) — 551KB
• esmc-20240630_pre.xml (EX-101.PRE) — 428KB
• esmc-20240630_htm.xml (XML) — 789KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 6 Item 1B. Unresolved Staff Comments 14 Item 1C. Cyber Security 14 Item 2.

Properties

Properties 14 Item 3.

Legal Proceedings

Legal Proceedings 14

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 14 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 14

[Reserved]

Item 6. [Reserved] Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15

Quantitative and Qualitative Disclosures About Market Risk—omitted pursuant to item 305(e) of Regulation S-K

Item 7A. Quantitative and Qualitative Disclosures About Market Risk—omitted pursuant to item 305(e) of Regulation S-K Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 20 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 40 Item 9A.

Controls and Procedures

Controls and Procedures 40 Item 9B. Other Information 41 PART III Item 10. Directors, Executive Officers and Corporate Governance 42 Item 11.

Executive Compensation

Executive Compensation 43 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 45 Item 13. Certain Relationships and Related Transactions, and Director Independence 46 Item 14. Principal Accounting Fees and Services 47 PART IV Item 15. Exhibits and Financial Statement Schedules 47 1 PART 1 Cautionary Factors That May Affect Future Results Certain statements contained in, or incorporated by reference in, this report are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which provide current expectations or forecasts of future events. Such statements can be identified by the use of terminology such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "possible," "project," "should," "will," "would," "seek," and similar words or expressions. The Company's forward-looking statements include certain information relating to general business strategy, growth strategies, financial results, liquidity, product development, the introduction of new products, the enhancement of existing products, the potential markets and uses for the Company's products, the Company's regulatory filings with the FDA, acquisitions, the development of joint venture opportunities, intellectual property and patent protection and infringement, the loss of revenue due to the expiration on termination of certain agreements, the effect of competition on the structure of the markets in which the Company competes, increased legal, accounting and Sarbanes-Oxley compliance costs, the Company's ability to continue as a going concern, defending the Company in litigation matters and the Company's cost-saving initiatives. The reader must carefully consider forward-looking statements and understand that such statements involve a variety of risks and uncertainties, known and unknown, and may be affected by assumptions that fail to materialize as anticipated

BUSINESS

ITEM 1. BUSINESS Company Overview Escalon Medical Corp. ("Escalon" or "Company") is a Pennsylvania corporation initially incorporated in California in 1987, and reincorporated in Pennsylvania in November 2001. Within this document, the "Company" collectively shall mean Escalon, which includes its division called "Trek" and its wholly owned subsidiaries: Sonomed, Inc. ("Sonomed"), Escalon Digital Solutions, Inc. ("EMI"), and Sonomed IP Holdings, Inc. All intercompany accounts and transactions have been eliminated. The Company operates in the healthcare market, specializing in the development, manufacture, marketing and distribution of medical devices for ophthalmic applications. The Company and its products are subject to regulation and inspection by the United States Food and Drug Administration (the "FDA"). The FDA and other government authorities requires extensive testing of new products prior to sale and has jurisdiction over the safety, efficacy and manufacture of products, as well as product labeling and marketing. A-Scans The A-Scan provides information about the internal structure of the eye by sending a beam of ultrasound along a fixed axis through the eye and displaying the various echoes reflected from the surfaces intersected by the beam. The principal echoes occur at the cornea, both surfaces of the lens and the retina. The system displays the position and magnitudes of the echoes on an electronic display. The A-Scan also includes software for measuring distances within the eye. This information is primarily used to calculate lens power for implants. B-Scans The B-Scan is primarily a diagnostic tool that supplies information to physicians where the media within the eye are cloudy or opaque. Whereas physicians normally use light, which cannot pass through such media, the ultrasound beam is capable of passing through the opacity and displaying an image of the internal structures of the eye. Unlike the A-Scan, the B-Scan transducer is not in a

RISK FACTORS

ITEM 1A. RISK FACTORS In addition to other information contained in this report on Form 10-K, the following Risk Factors should be considered carefully in evaluating our business. If any of the following risks actually occur, our financial condition and results of operations could be materially and adversely affected. Financial Risks Due to the Company's history of operating losses, we have compiled these financial statements based on the assumption the Company cannot continue as a going concern. Our operations are subject to a number of factors that can affect our operating results and financial condition. Such factors include, but are not limited to: the continuous enhancement of the current products, development of new products; changes in domestic and foreign regulations; ability to manufacture successfully; competition from products manufactured and sold or being developed by other companies; the price of, and demand for, our products and our ability to raise capital to support our operations. As of June 30, 2024, we had an accumulated deficit of $68.5 million, and had incurred historical recurring losses from operations and negative cash flows from operating activities in prior years except for the fiscal year ended June 30, 2023. While the overall trend has been toward profitability, having just one year out of the last five of income, the question remains whether the Company will keep the profitability trend and sales growth. These factors raise substantial doubt regarding our ability to continue as a going concern. As a result of above matters, our independent auditors have indicated in their report on our June 30, 2024 financial statements that there is substantial doubt about our ability to continue as a going concern. A "going concern" opinion indicates that the financial statements have been prepared assuming we will continue as a going concern and do not include any adjustments to reflect the possible future effects on the recoverability and c

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View this 10-K filing on SEC EDGAR