<SEC-DOCUMENT>0000897101-14-001337.txt : 20140923
<SEC-HEADER>0000897101-14-001337.hdr.sgml : 20140923
<ACCEPTANCE-DATETIME>20140923164428
ACCESSION NUMBER:		0000897101-14-001337
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20140923
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20140923
DATE AS OF CHANGE:		20140923

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Electromed, Inc.
		CENTRAL INDEX KEY:			0001488917
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
		IRS NUMBER:				411732920
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-34839
		FILM NUMBER:		141116416

	BUSINESS ADDRESS:	
		STREET 1:		500 SIXTH AVENUE NW
		CITY:			NEW PRAGUE
		STATE:			MN
		ZIP:			56071
		BUSINESS PHONE:		952-758-9299

	MAIL ADDRESS:	
		STREET 1:		500 SIXTH AVENUE NW
		CITY:			NEW PRAGUE
		STATE:			MN
		ZIP:			56071
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>elmd143423_8k.htm
<DESCRIPTION>FORM 8-K DATED SEPTEMBER 23, 2014
<TEXT>
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<P STYLE="font: 14pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>

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<P STYLE="font: 20pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 8-K</B></P>

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<P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Pursuant to Section&nbsp;13 or 15(d)
of the Securities Exchange Act of 1934</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Date of report (Date of earliest event
reported): September 23, 2014</P>

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<P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 20pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>ELECTROMED, INC.</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact Name of Registrant as Specified
in Its Charter)</P>

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    <TD STYLE="width: 34%; text-align: center; line-height: 115%; font-size: 12pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Minnesota</B></FONT></TD>
    <TD STYLE="width: 33%; text-align: center; line-height: 115%; font-size: 12pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>001-34839</B></FONT></TD>
    <TD STYLE="width: 33%; text-align: center; line-height: 115%; font-size: 12pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>41-1732920</B></FONT></TD></TR>
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    <TD STYLE="text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(State or Other Jurisdiction of </FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif">Incorporation)</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Commission File Number)</FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(I.R.S. Employer Identification</FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif">Number)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>500 Sixth Avenue NW</B><BR>
<B>New Prague, MN 56071</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">(Address of Principal Executive Offices)(Zip
Code)</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(952) 758-9299</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">(Registrant&rsquo;s Telephone Number,
Including Area Code)</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Not Applicable</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">(Former Name or Former Address, if Changed
Since Last Report)</P>

<P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

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    <TD STYLE="width: 2%; line-height: 115%"><FONT STYLE="font: 12pt MS Mincho">&#9744;</FONT></TD>
    <TD STYLE="width: 96%; line-height: 115%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</FONT></TD></TR>
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    <TD STYLE="line-height: 115%">&nbsp;</TD>
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    <TD STYLE="line-height: 115%"><FONT STYLE="font: 12pt MS Mincho">&#9744;</FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD></TR>
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    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
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    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 12pt MS Mincho">&#9744;</FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%">&nbsp;</TD>
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    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 12pt MS Mincho">&#9744;</FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></TD></TR>
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<P STYLE="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin-top: 2pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 96px"><B>Item 2.02</B></TD><TD STYLE="text-align: justify"><B>Results of Operations and Financial Condition</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 23, 2014, Electromed, Inc.
(the &ldquo;Company&rdquo;) issued a press release announcing its financial results for the three months and fiscal year ended
June 30, 2014. The full text of the press release is set forth in Exhibit 99.1 attached hereto and is incorporated by reference
in this Current Report on Form 8-K as if fully set forth herein.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The information contained in this Current
Report on Form 8-K, including the Exhibit 99.1 attached hereto and incorporated herein, shall not be deemed &ldquo;filed&rdquo;
for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that
Section, and shall not be incorporated by reference into any registration statement pursuant to the Securities Act of 1933, as
amended, except as shall be expressly set forth by specific reference in such filing.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; line-height: 115%; font-size: 12pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Item 9.01</B></FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: justify; line-height: 115%; font-size: 12pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Financial Statements and Exhibits.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; line-height: 115%; font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: justify; line-height: 115%; font-size: 8pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: justify; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(a)</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Financial statements: None.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: justify; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(b)</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pro forma financial information: None.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: justify; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(c)</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Shell company transactions: None.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: justify; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(d)</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Exhibits:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 96px; text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 24px; text-align: justify; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">99.1</FONT></TD>
    <TD STYLE="text-align: justify; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;Press Release dated September 23, 2014.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: justify; line-height: 115%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Electromed, Inc.</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Date:&nbsp;&nbsp;September 23, 2014</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">By: /s/ Jeremy T. Brock</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 71%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Name:&nbsp;</FONT></TD>
    <TD STYLE="width: 23%; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Jeremy T. Brock</FONT></TD>
    <TD STYLE="width: 3%; line-height: 115%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Title:</FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chief Financial Officer</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
</TABLE>
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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>ELECTROMED, INC.</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EXHIBIT INDEX TO FORM 8-K</B></P>

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    <TD STYLE="width: 50%; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Date of Report:</FONT></TD>
    <TD STYLE="width: 50%; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Commission File No.:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">September 23, 2014</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">001-34839</FONT></TD></TR>
</TABLE>
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    <TD STYLE="vertical-align: bottom; width: 15%; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Exhibit </B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Number</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 84%; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Description</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">99.1</FONT></TD>
    <TD STYLE="vertical-align: top; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; line-height: 115%; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Press Release dated September 23, 2014.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; line-height: 115%">&nbsp;</TD></TR>
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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>elmd143423_ex99-1.htm
<DESCRIPTION>PRESS RELEASE DATED SEPTEMBER 23, 2014
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>Exhibit 99.1</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><IMG SRC="image_001.jpg" ALT="" STYLE="height: 66px; width: 293px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>FOR IMMEDIATE RELEASE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Contact</B><BR>
Kathleen Skarvan<BR>
Chief Executive Officer<BR>
Electromed, Inc.<BR>
952-758-9299<BR>
kskarvan@electromed.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: center"><B>Electromed, Inc. Reports a Profit
on Higher Fiscal 2014 Fourth Quarter Revenues </B><BR>
<BR>
</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0"><B>New Prague, Minnesota &ndash; September 23, 2014</B>
&ndash; Electromed, Inc. (NYSE MKT: ELMD) today announced financial results for its fourth quarter and fiscal year ended June 30,
2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0"><U>Fourth Quarter Results</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">Net revenues for the fourth quarter of fiscal 2014 rose
14.8% to $4.6 million, compared with $4.0 million in the fourth quarter of fiscal 2013. Net income was $290,000, or $0.04 per basic
and diluted share, compared with a net loss of $416,000, or $0.05 per basic and diluted share, in the same quarter in the prior
fiscal year. The increase in revenue in the fourth quarter of fiscal 2014 resulted from higher sales into the homecare market due
to a higher approval rate from payers, which includes insurance companies and Medicare and Medicaid, higher quality patient referrals
and the introduction of the SmartVest<SUP>&reg;</SUP> SQL<SUP>&reg;</SUP> product earlier in fiscal 2014. Home care revenue rose
19%, international revenue decreased 17% and institutional sales were essentially flat compared with the prior year fourth quarter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">Gross profit in the fourth quarter of fiscal 2014 rose to
$3.2 million, or 70.1% of net revenue, compared to $2.7 million, or 66.5% of net revenue, in the same quarter in the prior fiscal
year, largely due to the higher revenue. Operating expenses, which include selling, general and administrative (SG&amp;A) and research
and development (R&amp;D) expenses, declined modestly to $2.9 million, or 62.3% of net revenue, in the fourth quarter of 2014 compared
with $3.1 million, or 77.5% of net revenue, in the same quarter in the prior fiscal year. The decline in operating expenses was
primarily due to lower R&amp;D expenses following the launch of the SQL product early in calendar year 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">Commenting on the fourth quarter results, Kathleen Skarvan,
Chief Executive Officer of Electromed said, &ldquo;We are very pleased the Company reported healthy revenue growth and a net profit
for the fourth quarter of fiscal 2014. Our focus has been a return to profitable growth and this quarter is a major step in that
direction. I am also pleased with the Company&rsquo;s cash flow from operations over the past year which has put us on strong financial
footing as fiscal 2015 unfolds. We have sharpened our focus in a number of areas including increasing the number of payer contracts,
streamlining the reimbursement process, improving the quality of patient referrals, and delivering an industry-leading product,
the SmartVest SQL. The results we reported in the fourth quarter indicate we have made real progress on these initiatives.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0"><B>Electromed, Inc. </B></P>

<P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0"><B>Results for the Three-Months Ended March 31, 2014</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Page 2</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0"><U>Full Year Results</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">Net revenues for the fiscal year ended June 30, 2014 were
$15.5 million, an increase of 2.5% compared to fiscal 2013. The Company reported a net loss of $1.3 million, or $0.16 per basic
and diluted share, in fiscal 2014, similar to the net loss reported in fiscal 2013. The net loss in fiscal 2014 includes a full
valuation allowance against all of our net U.S. federal and state deferred tax assets totaling $727,000 at June 30, 2014 which
offset expected tax benefits and resulted in a tax expense for the year of $469,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">Revenue in the homecare market was essentially flat in fiscal
2014 compared with fiscal 2013. Sales into the homecare market were negatively impacted by sales execution issues and by ongoing
pricing pressures and challenges in obtaining reimbursement from payers. Revenue in the governmental and institutional market increased
18.2% in fiscal 2014 to $1.7 million due to an increase in sales resources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">Gross profit for fiscal year 2014 was $10.6 million, or
68.7% of net revenue, compared with $10.4 million or 69.2% of net revenue in fiscal 2013. The small decline was due to higher manufacturing
costs for the SQL product which we launched early in calendar year 2014. We expect SQL manufacturing costs to decline as fiscal
2015 progresses due to several initiatives underway.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">Operating expenses declined $0.9 million to $11.4 million
or 73.4% of net revenue in fiscal 2014 compared with $12.3 million, or 81.3% of net revenue, in fiscal 2013. R&amp;D expenses declined
due to the launch of the SQL product during the third quarter of fiscal 2014 and we managed SG&amp;A expense more aggressively
to better align spending with opportunities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">Cash flow from operations was $2.1 million in fiscal 2014
and the Company ended the fiscal year with $1.5 million in cash on hand.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">Commenting on the full year results, Ms. Skarvan noted,
&ldquo;We&rsquo;re pleased that revenue growth accelerated as the year progressed. There is still a good deal of work to be done
and we are focused on expanding market share, increasing referrals and building awareness of the choice patients and clinicians
have with our traditional SmartVest offering and the smaller, quieter, lighter SQL product. We are addressing sales execution issues
with a more formalized time and territory tracking methodology and enhanced marketing support. We increased our efforts in the
institutional segment as readmission penalties associated with the Affordable Care Act support the use of therapies such as HFCWO
and because the device used by a patient in an institution often significantly affects the choice of which device they will use
upon discharge.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">We finished the year well and although we may not have
a perfect trend line of profitability  and revenue growth going forwards, I have increased confidence we will carry that
momentum into fiscal 2015. The team is energized, the market is responding to our offerings and we are looking forward to
building on the progress we have made.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0"><B>Electromed, Inc. </B></P>

<P STYLE="font: 10pt/150% Times New Roman, Times, Serif; margin: 0"><B>Results for the Three-Months Ended March 31, 2014</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Page 3</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>About Electromed, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Electromed, Inc. manufactures, markets, and sells products that
provide airway clearance therapy, including the SmartVest<SUP>&reg;</SUP> Airway Clearance System and related products, to patients
with compromised pulmonary function. Further information about the Company can be found at www.electromed.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 1.8pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 1.8pt 0 0"><B><I>Cautionary Statements </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0"><FONT STYLE="color: #444749"><I>Certain statements found in
this release may constitute forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements reflect the speaker&rsquo;s current views with respect to future events and financial performance and
include any statement that does not directly relate to a current or historical fact. Forward-looking statements can generally be
identified by the words &ldquo;believe,&rdquo; &ldquo;expect,&rdquo; &ldquo;anticipate&rdquo; or &ldquo;intend&rdquo; or similar
words. </I></FONT><I><FONT STYLE="color: #333333"> </FONT><FONT STYLE="color: #444749">Forward-looking statements made in this
release include the Company&rsquo;s beliefs and expectations regarding its revenue growth and cost control strategies, its sales
strategies, and its SQL product, including the realization of cost efficiencies in the manufacturing and sourcing of the SQL, product
mix and SQL referral trends. Forward-looking statements cannot be guaranteed and actual results may vary materially due to the
uncertainties and risks, known and unknown, associated with such statements. Examples of risks and uncertainties for Electromed
include, but are not limited to, the impact of emerging and existing competitors, the effect of new legislation on our industry
and business, the effectiveness of our sales and marketing and cost control initiatives, changes to reimbursement programs, and
delays in manufacturing and shipment of our products, </FONT><FONT STYLE="color: #333333">as well as other factors described from
time to time in our reports to the Securities and Exchange Commission (including our Annual Report on Form 10-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 &ldquo;forward-looking statements,&rdquo; as such statements speak only as of the date of this release.</FONT></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0">Financial Tables Follow:<BR>
<BR>
</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center">-more-</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Electromed, Inc. and Subsidiary</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Condensed Consolidated Balance Sheets</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td style="font-size: 8pt">&nbsp;</td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td colspan="6" style="border-bottom: black 1pt solid; font-size: 8pt; text-align: center"><font style="font-size: 8pt"><b>June 30,</b></font></td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-size: 8pt">&nbsp;</td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td colspan="2" style="border-bottom: black 1pt solid; font-size: 8pt; text-align: center"><font style="font-size: 8pt"><b>2014</b></font></td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td colspan="2" style="border-bottom: black 1pt solid; font-size: 8pt; text-align: center"><font style="font-size: 8pt"><b>2013</b></font></td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td><font style="font-size: 10pt"><b>Assets</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td><font style="font-size: 10pt">Current Assets</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="width: 72%; padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Cash and cash equivalents</font></td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 1%"><font style="font-size: 10pt">$</font></td>
    <td style="width: 10%; text-align: right"><font style="font-size: 10pt">1,502,702</font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 1%"><font style="font-size: 10pt">$</font></td>
    <td style="width: 10%; text-align: right"><font style="font-size: 10pt">503,564</font></td>
    <td style="width: 1%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td><font style="font-size: 10pt">Accounts receivable (net of allowances for doubtful accounts of $45,000)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">6,487,267</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">9,014,043</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Inventories</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">2,235,496</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">1,379,594</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Prepaid expenses and other current assets</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">397,853</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">428,843</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Income tax receivable</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">&mdash;&nbsp;&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">538,285</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 1pt; padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Deferred income taxes</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">557,000</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 34.55pt; text-indent: -8.65pt"><font style="font-size: 10pt"><b>Total current assets</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">10,623,318</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">12,421,329</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td><font style="font-size: 10pt">Property and equipment, net</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">3,935,802</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">3,743,675</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td><font style="font-size: 10pt">Finite-life intangible assets, net</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">930,451</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">1,080,734</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">Other assets</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">302,595</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">310,089</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-bottom: 2.5pt; padding-left: 34.55pt; text-indent: -8.65pt"><font style="font-size: 10pt"><b>Total assets</b></font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">15,792,166</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">17,555,827</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td><font style="font-size: 10pt"><b>Liabilities and Equity</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td><font style="font-size: 10pt">Current Liabilities</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Current maturities of long-term debt</font></td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">$</font></td>
    <td style="text-align: right"><font style="font-size: 10pt">46,375</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font style="font-size: 10pt">$</font></td>
    <td style="text-align: right"><font style="font-size: 10pt">57,540</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Accounts payable</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">380,582</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">643,681</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Accrued compensation</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">391,040</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">565,023</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Warranty reserve</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">700,000</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">680,000</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-bottom: 1pt; padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Other accrued liabilities</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">302,482</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">247,267</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 34.55pt; text-indent: -8.65pt"><font style="font-size: 10pt"><b>Total current liabilities</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">1,820,479</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">2,193,511</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td><font style="font-size: 10pt">Long-term debt, less current maturities</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">1,251,192</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">1,332,455</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">Deferred income taxes</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">103,000</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-bottom: 1pt; padding-left: 34.55pt; text-indent: -8.65pt"><font style="font-size: 10pt"><b>Total liabilities</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">3,071,671</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">3,628,966</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td><font style="font-size: 10pt">Commitments and Contingencies</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td><font style="font-size: 10pt">Equity</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Common stock, $0.01 par value; authorized: 13,000,000 shares;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">&nbsp;&nbsp;8,114,252 issued and outstanding</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">81,143</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">81,143</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Additional paid-in capital</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">13,217,166</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">13,134,938</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 1pt; padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">(Accumulated deficit) Retained earnings</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(577,814</font></td>
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">710,780</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-bottom: 1pt; padding-left: 34.55pt; text-indent: -8.65pt"><font style="font-size: 10pt"><b>Total equity</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">12,720,495</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">13,926,861</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 2.5pt; padding-left: 34.55pt; text-indent: -8.65pt"><font style="font-size: 10pt"><b>Total liabilities and equity</b></font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">15,792,166</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">17,555,827</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: center">-more-</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Electromed, Inc. and Subsidiary</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Condensed Consolidated Statements of Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td colspan="6" style="border-bottom: black 1pt solid; font-size: 8pt; text-align: center"><font style="font-size: 8pt"><b>For the Three Months Ended </b></font><br>
<font style="font-size: 8pt"><b>June 30 ,</b></font></td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td colspan="6" style="border-bottom: black 1pt solid; font-size: 8pt; text-align: center"><font style="font-size: 8pt"><b>For the Twelve Months Ended </b></font><br>
<font style="font-size: 8pt"><b>June 30 ,</b></font></td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td colspan="2" style="border-bottom: black 1pt solid; font-size: 8pt; text-align: center"><font style="font-size: 8pt"><b>2014</b></font></td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td colspan="2" style="border-bottom: black 1pt solid; font-size: 8pt; text-align: center"><font style="font-size: 8pt"><b>2013</b></font></td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td colspan="2" style="border-bottom: black 1pt solid; font-size: 8pt; text-align: center"><font style="font-size: 8pt"><b>2014</b></font></td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td colspan="2" style="border-bottom: black 1pt solid; font-size: 8pt; text-align: center"><font style="font-size: 8pt"><b>2013</b></font></td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="width: 44%"><font style="font-size: 10pt">Net revenues</font></td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 1%"><font style="font-size: 10pt">$</font></td>
    <td style="width: 10%; text-align: right"><font style="font-size: 10pt">4,612,286</font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 1%"><font style="font-size: 10pt">$</font></td>
    <td style="width: 10%; text-align: right"><font style="font-size: 10pt">4,018,232</font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 1%"><font style="font-size: 10pt">$</font></td>
    <td style="width: 10%; text-align: right"><font style="font-size: 10pt">15,487,875</font></td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 1%"><font style="font-size: 10pt">$</font></td>
    <td style="width: 10%; text-align: right"><font style="font-size: 10pt">15,104,422</font></td>
    <td style="width: 1%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">Cost of revenues</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,377,302</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,346,224</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">4,853,873</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">4,655,372</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-bottom: 1pt; padding-left: 25.9pt; text-indent: -8.65pt"><font style="font-size: 10pt"><b>Gross profit</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">3,234,984</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">2,672,008</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">10,634,002</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">10,449,050</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td><font style="font-size: 10pt">Operating expenses</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td><font style="font-size: 10pt">&nbsp;&nbsp;&nbsp;Selling, general and administrative</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">2,811,463</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">2,822,334</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">10,908,531</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">11,673,068</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">&nbsp;&nbsp;&nbsp;Research and development</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">61,054</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">291,475</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">466,063</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">603,375</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 1pt; padding-left: 25.9pt; text-indent: -8.65pt"><font style="font-size: 10pt"><b>Total operating expenses</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">2,872,517</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">3,113,809</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">11,374,594</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">12,276,443</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 25.9pt; text-indent: -8.65pt"><font style="font-size: 10pt"><b>Operating income (loss)</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">362,467</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(441,801</font></td>
    <td><font style="font-size: 10pt">)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(740,592</font></td>
    <td><font style="font-size: 10pt">)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(1,827,393</font></td>
    <td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 1pt; padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Interest expense, net of interest income of $663, $782, $12,393 and $16,772, respectively</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">21,011</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">25,210</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">79,002</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">116,883</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 25.95pt; text-indent: -8.65pt"><font style="font-size: 10pt"><b>Net income (loss) before income taxes</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">341,456</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(467,011</font></td>
    <td><font style="font-size: 10pt">)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(819,594</font></td>
    <td><font style="font-size: 10pt">)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(1,944,276</font></td>
    <td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">Income tax benefit (expense)</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(51,000</font></td>
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">51,000</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(469,000</font></td>
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">615,000</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-bottom: 2.5pt; padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt"><b>&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss)</b></font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">290,456</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(416,011</font></td>
    <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(1,288,594</font></td>
    <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(1,329,276</font></td>
    <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 8.65pt; text-indent: -8.65pt">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Earnings (loss) per share:</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 2.5pt; padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Basic and Diluted</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.04</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.05</font></td>
    <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.16</font></td>
    <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.16</font></td>
    <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 8.65pt; text-indent: -8.65pt">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 8.65pt; text-indent: -8.65pt"><font style="font-size: 10pt">Weighted-average common shares outstanding:</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-bottom: 2.5pt; padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Basic</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">8,114,252</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">8,114,252</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">8,114,252</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">8,114,252</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 2.5pt; padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Diluted</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">8,114,252</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">8,114,252</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">8,114,252</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">8,114,252</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: center">-more-</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Electromed, Inc. and Subsidiary </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Condensed Consolidated Statements of Cash Flows</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td style="font-size: 8pt">&nbsp;</td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td colspan="6" style="border-bottom: black 1pt solid; font-size: 8pt; text-align: center"><font style="font-size: 8pt"><b>Years Ended June 30,</b></font></td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-size: 8pt">&nbsp;</td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td colspan="2" style="border-bottom: black 1pt solid; font-size: 8pt; text-align: center"><font style="font-size: 8pt"><b>2014</b></font></td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td>
    <td colspan="2" style="border-bottom: black 1pt solid; font-size: 8pt; text-align: center"><font style="font-size: 8pt"><b>2013</b></font></td>
    <td style="padding-bottom: 1pt; font-size: 8pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Cash Flows From Operating Activities</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="width: 72%; padding-left: 25.9pt; text-indent: -8.65pt"><font style="font-size: 10pt">Net loss</font></td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 1%"><font style="font-size: 10pt">$</font></td>
    <td style="width: 10%; text-align: right"><font style="font-size: 10pt">(1,288,594</font></td>
    <td style="width: 1%"><font style="font-size: 10pt">)</font></td>
    <td style="width: 2%">&nbsp;</td>
    <td style="width: 1%"><font style="font-size: 10pt">$</font></td>
    <td style="width: 10%; text-align: right"><font style="font-size: 10pt">(1,329,276</font></td>
    <td style="width: 1%"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 25.9pt; text-indent: -8.65pt"><font style="font-size: 10pt">Adjustments to reconcile net loss to net cash provided by operating activities:</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 34.55pt; text-indent: -8.65pt"><font style="font-size: 10pt">Depreciation</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">567,341</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">459,817</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 34.55pt; text-indent: -8.65pt"><font style="font-size: 10pt">Amortization of finite-life intangible assets</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">128,205</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">130,047</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 34.55pt; text-indent: -8.65pt"><font style="font-size: 10pt">Amortization of debt issuance costs</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">18,019</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">11,006</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 34.55pt; text-indent: -8.65pt"><font style="font-size: 10pt">Share-based compensation expense</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">82,228</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">175,802</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 34.55pt; text-indent: -8.65pt"><font style="font-size: 10pt">Deferred income taxes</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">454,000</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(78,000</font></td>
    <td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 34.55pt; text-indent: -8.65pt"><font style="font-size: 10pt">Loss on disposal of property and equipment and intangibles assets</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">138,827</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">48,428</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 34.55pt; text-indent: -8.65pt"><font style="font-size: 10pt">Changes in operating assets and liabilities:</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 0.6in; text-indent: -8.65pt"><font style="font-size: 10pt">Accounts receivable</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">2,526,776</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">1,836,816</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 0.6in; text-indent: -8.65pt"><font style="font-size: 10pt">Inventories</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(855,902</font></td>
    <td><font style="font-size: 10pt">)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">1,012,822</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 0.6in; text-indent: -8.65pt"><font style="font-size: 10pt">Income Tax Receivable</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">538,285</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(197,541</font></td>
    <td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 0.6in; text-indent: -8.65pt"><font style="font-size: 10pt">Prepaid expenses and other assets</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">55,761</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(115,415</font></td>
    <td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-bottom: 1pt; padding-left: 0.6in; text-indent: -8.65pt"><font style="font-size: 10pt">Accounts payable and accrued liabilities</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(302,285</font></td>
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(77,849</font></td>
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 1pt; padding-left: 51.85pt; text-indent: -8.65pt"><font style="font-size: 10pt"><b>Net cash provided by operating activities</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">2,062,661</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,876,657</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 17.3pt; text-indent: -8.65pt">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Cash Flows From Investing Activities</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 25.9pt; text-indent: -8.65pt"><font style="font-size: 10pt">Expenditures for property and equipment</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(895,177</font></td>
    <td><font style="font-size: 10pt">)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(1,016,624</font></td>
    <td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 1pt; padding-left: 25.9pt; text-indent: -8.65pt"><font style="font-size: 10pt">Expenditures for finite-life intangible assets</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(40,622</font></td>
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(36,748</font></td>
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-bottom: 1pt; padding-left: 51.85pt; text-indent: -8.65pt"><font style="font-size: 10pt"><b>Net cash used in investing activities</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(935,799</font></td>
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(1,053,372</font></td>
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 8.65pt; text-indent: -8.65pt">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 17.3pt; text-indent: -8.65pt"><font style="font-size: 10pt">Cash Flows From Financing Activities</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 25.9pt; text-indent: -8.65pt"><font style="font-size: 10pt">Net payments on revolving line of credit</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">&mdash;&nbsp;&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(1,768,128</font></td>
    <td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 25.9pt; text-indent: -8.65pt"><font style="font-size: 10pt">Proceeds from long-term debt</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">1,300,000</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">&mdash;&nbsp;&nbsp;</font></td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 25.9pt; text-indent: -8.65pt"><font style="font-size: 10pt">Principal payments on long-term debt including capital lease obligations</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(1,392,428</font></td>
    <td><font style="font-size: 10pt">)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(254,028</font></td>
    <td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-bottom: 1pt; padding-left: 25.9pt; text-indent: -8.65pt"><font style="font-size: 10pt">Payments of deferred financing fees</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(35,296</font></td>
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">&mdash;&nbsp;&nbsp;</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 1pt; padding-left: 25.9pt; text-indent: -8.65pt"><font style="font-size: 10pt"><b>Net cash used in financing activities</b></font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(127,724</font></td>
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(2,022,156</font></td>
    <td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-left: 51.85pt; text-indent: -8.65pt"><font style="font-size: 10pt"><b>Net increase (decrease) in cash and cash equivalents</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">999,138</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right"><font style="font-size: 10pt">(1,198,871</font></td>
    <td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 51.85pt; text-indent: -42.85pt"><font style="font-size: 10pt">Cash and cash equivalents</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #D6F3E8">
    <td style="padding-bottom: 1pt; padding-left: 25.9pt; text-indent: -8.65pt"><font style="font-size: 10pt">&nbsp;&nbsp;Beginning of period</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">503,564</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="padding-bottom: 1pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">1,702,435</font></td>
    <td style="padding-bottom: 1pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-bottom: 2.5pt; padding-left: 25.9pt; text-indent: -8.65pt"><font style="font-size: 10pt">&nbsp;&nbsp;End of period</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">1,502,702</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">503,564</font></td>
    <td style="padding-bottom: 2.5pt">&nbsp;</td></tr>
</table>
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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
