Exhibit 99.1 

FOR IMMEDIATE RELEASE

Electromed, Inc. Announces Fiscal 2021 First Quarter Financial Results

-- 16.4% Sequential Revenue Growth Driven by Stronger Home Care Revenue --

New Prague, Minnesota – November 10, 2020 – Electromed, Inc. (“Electromed” or the “Company”) (NYSE American: ELMD), a leader in innovative airway clearance technologies, today announced financial results for the three months ended September 30, 2020 (“Q1 FY 2021").

Q1 FY 2021 Highlights

Kathleen Skarvan, President and Chief Executive Officer of Electromed, commented, “We were pleased with our strong execution in the first quarter resulting in a 17.9% increase in home care revenue compared to the three months ended June 30, 2020, evidence of an improving environment for our therapy despite continued disruption related to the COVID-19 pandemic. Our strengthening home care business reflects increasing patient face-to-face interaction with physicians and the success of our sales team adapting quickly to a hybrid virtual and face-to-face selling approach. While the institutional side of our business remained soft due to COVID-19, we registered an uptick in hospital orders of disposable wraps compared to the three months ended, June 30, 2020.

“We continue to fund strategic investments for our long-term growth, including research and development on our next generation HFCWO therapy, hiring key sales and marketing personnel and expanding our direct-to-patient marketing to increase awareness of bronchiectasis and SmartVest® as an effective treatment. We are confident in our long-term revenue growth potential and remain committed to these strategic investments, while continuing to generate positive operating cash flow and managing the business successfully through the COVID-19 pandemic.”

Ms. Skarvan continued, “Home care referral and revenue growth improved throughout the quarter and has continued into October, though uncertainty surrounding COVID-19 persists. During this pandemic, our priority continues to be the health, safety and well-being of our teammates, clinicians and patients, while executing on our strategy to gain greater share of the large, underpenetrated bronchiectasis market. We are well positioned to succeed given our strong balance sheet, excellent cash flow profile and differentiated SmartVest® Airway Clearance System.”

Q1 FY 2021 Review

Net revenue in Q1 FY 2021 decreased 3.6% to $8.0 million, from $8.3 million in Q1 FY 2020. Home care revenue was approximately $7.5 million in both Q1 FY 2021 and Q1 FY 2020. Net revenue grew 16.4% compared to the three months ended June 30, 2020 (“Q4 FY 2020"), driven by a 17.9% increase in home care. Field sales employees totaled 42, of which 35 were direct sales, at the end of Q1 FY 2021, compared to 38 at the end of Q1 FY 2020, of which 32 were direct sales. Institutional revenue decreased 55.5% to $278,000 from $625,000 in Q1 FY 2020, primarily due to a decrease in the volume of devices and disposable wraps sold due to COVID-19’s continued impact on hospital purchasing activity. Distributor revenue increased 48.3% to $178,000 from $120,000 in Q1 FY 2020. International revenue increased 27.3% to $84,000 from $66,000 in Q1 FY 2020.

Gross profit dollars in Q1 FY 2021 decreased 3.1% to $6.1 million, or 76.8% of net revenue, from $6.3 million, or 76.4% of net revenue, in Q1 FY 2020. The decrease in gross profit dollars was primarily due to the decrease in institutional revenue driven by the COVID-19 pandemic. The increase in gross profit percentage was driven by a greater portion of revenue coming from home care.

Selling, general and administrative (“SG&A”) expenses in Q1 FY 2021 increased by $109,000 to $5.0 million from $4.9 million in Q1 FY 2020. The increase in SG&A spending was primarily due to increased payroll expenses associated with higher average sales and marketing headcount and increased direct-to-consumer marketing, partially offset by lower travel, meals and entertainment expenses. As a percentage of revenue, SG&A expenses were 62.5% compared to 59.0% in Q1 FY 2020. Research and development expenses increased to $481,000 from $99,000 in Q1 FY 2020, in connection with the development of a next generation platform. As a percentage of revenue, R&D expenses were 6.0% compared to 1.2% in Q1 FY 2020.

Net income before income taxes totaled $672,000 compared to $1.4 million in Q1 FY 2020. The net income before income taxes decrease compared to Q1 FY2020 was primarily due to a $382,000 increase in R&D spending on development of a next generation platform, lower institutional revenue and higher average sales and marketing headcount compared to Q1 FY 2020.

Net income was $535,000, or $0.06 per diluted share, compared to $1.0 million, or $0.12 per diluted share, in Q1 FY 2020. In Q1 FY 2021, income tax expense totaled $137,000, compared to an income tax expense of $374,000 in the same period of the prior year. During Q1 FY 2021, a discrete tax benefit of $39,000 was recognized as a result of the exercise of outstanding stock options.

Financial Condition

The Company’s balance sheet at September 30, 2020 included cash of $11.1 million, accounts receivable of $13.6 million, no debt, working capital of $25.8 million, and shareholders’ equity of $30.9 million.

Conference Call

Management will host a conference call on Tuesday, November 10, 2020 at 4:00 pm CT (5:00 pm ET) to discuss Q1 FY 2021 financial results and other matters.

Interested parties may participate in the call by dialing: 

The conference call also will be accessible via the following link: 

https://78449.themediaframe.com/dataconf/productusers/elctr/mediaframe/41298/indexl.html

For those who cannot listen to the live broadcast, an online webcast replay will be available in the Investor Relations section of the Company’s web site at: http://investors.smartvest.com/

About Electromed, Inc.

Electromed, Inc. manufactures, makes, and sells products that provide airway clearance therapy, including the SmartVest^® Airway Clearance System, to patients with compromised pulmonary function. The Company is headquartered in New Prague, Minnesota and was founded in 1992. Further information about the Company can be found at www.smartvest.com.

Cautionary Statements

Certain statements in this press release constitute forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by words such as “believe,” “intend,” “may,” “potential,” “should,” “will,” and similar expressions, including the negative of these terms, but they are not the exclusive means of identifying such statements. Forward-looking statements cannot be guaranteed, and actual results may vary materially due to the uncertainties and risks, known or unknown associated with such statements. Examples of risks and uncertainties for the Company include, but are not limited to, the duration, extent and severity of the COVID-19 pandemic, including its effects on our business, operations and employees as well as its impact on our customers and distribution channels and on economies and markets more generally; the competitive nature of our market; changes to Medicare, Medicaid, or private insurance reimbursement policies; changes to state and federal health care laws; changes affecting the medical device industry; our ability to develop new sales channels for our products such as the Home Care distributor channel; our need to maintain regulatory compliance and to gain future regulatory approvals and clearances; new drug or pharmaceutical discoveries; general economic and business conditions; our ability to renew our line of credit or obtain additional credit as necessary; our ability to protect and expand our intellectual property portfolio; the risks associated with expansion into international markets, as well as other factors we may describe from time to time in the Company’s reports filed with the Securities and Exchange Commission (including the Company’s most recent Annual Report on Form 10-K, as amended from time to time, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K). Investors should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties or potentially inaccurate assumptions investors should take into account when making investment decisions. Shareholders and other readers should not place undue reliance on “forward-looking statements,” as such statements speak only as of the date of this press release. We undertake no obligation to update them in light of new information or future events.

Financial Tables Follow:

Electromed, Inc. 

Condensed Balance Sheets

Electromed, Inc. 

Condensed Statements of Operations 

(Unaudited)

Electromed, Inc. 

Condensed Statements of Cash Flows 

(Unaudited)