What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-01-08 compared with 2024-10-03 · 119 added, 96 removed, 119 unchanged (64% of the section changed)

41 unchanged sentences

Accordingly, management continues to evaluate the Company’s liquidity position, communicate with and monitor the actions of our customers and suppliers, and review our near-term financial performance.

On January 5, 2024, the Company announced a restructuring of its manufacturing footprint and a shift to an outsourced model (the "Plan").

This Plan will transfer all product manufacturing processes to third-party manufacturers.

In the second quarter of fiscal year 2025, the Company announced a modification to the Plan to maintain a presence in Queensbury, NY for the manufacturing of select products, customer service, logistics, shipping, quality and regulatory operations.

The restructuring activities associated with the modified Plan are still expected to be completed in the third quarter of fiscal year 2026.

The modified Plan is still expected to generate $15.0 million in annual cost savings in fiscal year 2027.

On July 16, 2024, the Board of Directors approved a share repurchase program (the "Repurchase Program") under which they authorized the Company the option to repurchase up to $15.0 million of its outstanding common stock.

The timing and amount of any share repurchases under the authorization will be determined by management at its discretion and based on market conditions and other considerations.

The timing and amount of any share repurchases under the authorization will be determined by management within certain parameters and based on market conditions and other considerations.

During the first quarter of fiscal year 2025, the Company repurchased 72,141 shares of common stock in the open market at an aggregate cost of $0.5 million under the Repurchase Program.

As of August 31, 2024, $14.5 million remained available for repurchase under the Repurchase Program.

During the second quarter of fiscal year 2025, the Company repurchased 171,706 shares of common stock in the open market at an aggregate cost of $1.1 million under the Repurchase Program.

As of November 30, 2024, $13.3 million remained available for repurchase under the Repurchase Program.

In evaluating the operating performance of our business, management focuses on company-wide and segment revenue and gross margin and company-wide operating income, earnings per share and cash flow from operations.

A summary of these key financial metrics for the three months ended August 31, 2024 compared to the three months ended August 31, 2023 are as follows:

Three months ended August 31, 2024:

A summary of these key financial metrics for the three and six months ended November 30, 2024 compared to the three and six months ended November 30, 2023 are as follows:

Three months ended November 30, 2024:

• Revenue decreased by 7.9% to $72.8 million

1 unchanged sentence

• Gross profit increased 390 bps to 54.8%

• Med Tech gross profit decreased 140 bps to 63.3% and Med Device gross profit increased 390 bps to 48.1%

• Net loss increased by $58.7 million to $12.8 million

• Loss per share increased by $1.46 to $0.31

For the three months ended August 31, 2024, the decrease in revenue is partially due to the sale of the PICCs, Midline, dialysis and BioSentry businesses, along with the discontinuation of the RadioFrequency Ablation and Syntrax product lines, the total of which impacted sales by $12.0 million compared to the three months ended August 31, 2023.

Our Med Tech revenue, comprised of Auryon, the thrombus management platform and NanoKnife, grew 8.2% in the first quarter of fiscal year 2025.

The growth in Auryon was partially offset by softness in the NanoKnife and thrombus management platforms.

Our Med Device revenue declined by 25.2% in the first quarter of fiscal year 2025 driven mainly by the sale of the PICCs, Midlines, dialysis and BioSentry businesses along with the discontinuation of the RadioFrequency Ablation product lines.

• Med Tech gross profit increased 130 bps to 63.7% and Med Device gross profit increased 240 bps to 47.9%

• Net loss decreased by $18.3 million to $10.7 million

• Loss per share decreased by $0.46 to $0.26

Six months ended November 30, 2024:

• Revenue decreased by 11.0% to $140.3 million

• Med Tech growth of 16.2% and Med Device declined by 24.1%

• Gross profit increased 370 bps to 54.6%

• Med Tech gross profit remained consistent at 63.5% and Med Device gross profit increased 310 bps to 48.0%

• Net income decreased by $40.4 million to $23.5 million

• Loss per share decreased by $1.00 to $0.58

• Cash used in operations decreased by $4.9 million to $15.8 million

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For the three and six months ended November 30, 2024, the decrease in revenue is partially due to the sale of the PICCs, Midline, dialysis and BioSentry businesses, along with the discontinuation of the RadioFrequency Ablation and Syntrax product lines, the total of which impacted sales by $12.4 million and $24.3 million compared to the same periods in the prior year, respectively.

Our Med Tech revenue, comprised of Auryon, the thrombus management platform and NanoKnife, grew 24.4% in the second quarter of fiscal year 2025.

Our Med Device revenue declined by 23.1% in the second quarter of fiscal year 2025 driven mainly by the sale of the PICCs, Midlines, dialysis and BioSentry businesses along with the discontinuation of the RadioFrequency Ablation product lines.

Results of Operations

For the three months ended August 31, 2024, the Company reported net loss of $12.8 million, or diluted loss per share of $0.31, on net sales of $67.5 million, compared with a net income of $45.9 million, or diluted earnings per share of $1.15, on net sales of $78.7 million during the same quarter of the prior year.

For the three months ended November 30, 2024, the Company reported net loss of $10.7 million, or diluted loss per share of $0.26, on net sales of $72.8 million, compared with a net loss of $29.0 million, or diluted loss per share of $0.72, on net sales of $79.1 million during the same quarter of the prior year.

For the six months ended November 30, 2024, the Company reported net loss of $23.5 million, or diluted loss per share of $0.58, on net sales of $140.3 million, compared with a net income of $16.8 million, or diluted earnings per share of $0.42, on net sales of $157.8 million during the same quarter of the prior year.

Net sales - Net sales are derived from the sale of products and related freight charges, less discounts, rebates and returns.

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Three Months Ended

(in thousands) Aug 31, 2024 Aug 31, 2023 $ Change

Three Months Ended Six Months Ended

(in thousands) Nov 30, 2024 Nov 30, 2023 $ Change Nov 30, 2024 Nov 30, 2023 $ Change

Med Tech $ 31,554 $ 25,363 $ 6,191 $ 59,523 $ 51,224 $ 8,299

1 unchanged sentence

Total $ 72,845 $ 79,073 $ (6,228) $ 140,336 $ 157,752 $ (17,416)

Three Months Ended

(in thousands) Aug 31, 2024 Aug 31, 2023 $ Change

Three Months Ended Six Months Ended

(in thousands) Nov 30, 2024 Nov 30, 2023 $ Change Nov 30, 2024 Nov 30, 2023 $ Change

United States $ 62,678 $ 64,002 $ (1,324) $ 122,159 $ 128,401 $ (6,242)

1 unchanged sentence

Total $ 72,845 $ 79,073 $ (6,228) $ 140,336 $ 157,752 $ (17,416)

For the three months ended August 31, 2024, net sales decreased $11.2 million to $67.5 million compared to the same period in the prior year.

At August 31, 2024, the Company had a backlog of $1.1 million.

The Med Tec h segment net sales increased $2.1 million fo r the three months ended August 31, 2024 compared to the same period in the prior year.

The change in sales from the prior year was primarily driven by:

• Increased Auryon sales of $2.7 million;

• Decreased sales of Syntrax of $0.1 million due to the discontinuation of this product line as of February 29, 2024;

• Decreased sales of the thrombus management platform of $0.1 million, which was driven by a decrease in AngioVac sales of $0.5 million and was partially offset by an increase in AlphaVac sales of $0.4 million;

• Decreased NanoKnife sales of $0.4 million, which was driven by decreased capital and disposable sales.

The Me d Device segment net sales decreased $13.3 million for the three months ended August 31, 2024 compared to the same period in the prior year.

For the three months ended November 30, 2024, net sales decreased $6.2 million to $72.8 million compared to the same period in the prior year.

For the six months ended November 30, 2024, net sales decreased $17.4 million to $140.3 million compared to the same period in the prior year.

At November 30, 2024, the Company had a sales order backlog of $0.7 million.

The Med Tec h segment net sales increased $6.2 million and $8.3 million fo r the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively.

The change in sales for both periods was primarily driven by:

• Increased Auryon sales of $2.5 million and $5.2 million compared to the same period in the prior year, respectively;

• Decreased sales of Syntrax of $0.1 million and $0.3 million, respectively, due to the discontinuation of this product line as of February 29, 2024;

• Increased sales of the thrombus management platform of $3.6 million and $3.5 million compared to the same period in the prior year, respectively.

This was driven by an increase in AngioVac and AlphaVac sales of $3.3 million and $3.2 million compared to the same periods in the prior year, respectively, and an increase in thrombolytic sales of $0.2 million for both periods compared to the same periods in the prior year;

• Increased NanoKnife sales of $0.3 million for the three months ended November 30, 2024, compared to the same period in the prior year, which was driven by increased disposable sales offset by decreased capital sales.

Decreased NanoKnife sales of $0.1 million for the six months ended November 30, 2024, compared to the same period in the prior year, which was driven by decreased capital sales partially offset by increased disposable sales.

The Me d Device segment net sales decreased $12.4 million and $25.7 million for the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively.

The backlog, which primarily impacted sales of Core products, was $0.7 million.

The change in sales for the three months ended August 31, 2024 compared to the same period in the prior year, was primarily driven by:

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The change in sales for the three months ended November 30, 2024 compared to the same period in the prior year, was primarily driven by:

• Decreased sales of PICCs and Midline products of $11.4 million, which was due to the divestiture of these businesses on February 15, 2024;

• Decreased sales of RadioFrequency Ablation of $0.9 million due to the discontinuation of this product line as of February 29, 2024;

• Decreased sales of Core and Ports of $0.2 million and $0.2 million, respectively, which was partially offset by increased sales of Venous and Microwave products of $0.1 million and $0.1 million, respectively.

The change in sales for the six months ended November 30, 2024 compared to the same period in the prior year, was primarily driven by:

• Decreased sales of PICCs and Midline products of $21.6 million, which was due to the divestiture of these businesses on February 15, 2024;

• Decreased sales of dialysis and BioSentry products of $0.7 million, which was due to the divestiture of these businesses on June 8, 2023;

• Decreased sales of RadioFrequency Ablation of $1.8 million due to the discontinuation of this product line as of February 29, 2024;

• Decreased sales of Microwave, Core and Oncology products of $1.5 million, $0.2 million and $0.2 million, respectively, which was partially offset by increased sales of Ports of $0.4 million.

Three Months Ended

(in thousands) Aug 31, 2024 Aug 31, 2023 $ Change

• Decreased sales of Microwave, Core and Oncology products of $1.4 million, $0.4 million and $0.3 million, respectively, which was partially offset by increased sales of Venous and Ports of $0.2 million and $0.2 million, respectively.

Three Months Ended Six Months Ended

(in thousands) Nov 30, 2024 Nov 30, 2023 $ Change Nov 30, 2024 Nov 30, 2023 $ Change

Med Tech $ 20,113 $ 15,816 $ 4,297 $ 37,810 $ 32,543 $ 5,267

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Gross profit % of sales 54.8 % 50.9 % 54.6 % 50.9 %

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Gross profit - Gross profit consists of net sales less the cost of goods sold, which includes the costs of materials, products purchased from third parties and sold by us, manufacturing personnel, royalties, freight, business insurance, depreciation of property and equipment and other manufacturing overhead, exclusive of intangible amortization.

Total Company gross profit decreased by $3.3 million for the three months ended August 31, 2024 compared to the same period in the prior year.

The change from the prior year was primarily driven by:

• The sale of the PICCs, Midline, dialysis and BioSentry businesses contributed $3.4 million of gross profit in the prior year;

• Sales volume, price and product mix, which positively impacted gross profit by $1.5 million;

• Production volume and other incentives, which negatively impacted gross profit by $0.4 million.

This was partially offset by production volume related to our TSA, which positively impacted gross profit by $0.3 million;

• Inflationary costs on raw materials, labor shortages and freight costs negatively impacted gross profit by $0.9 million;

• Incremental depreciation and other expense on placement units of $0.5 million.

The Med Tech segment gross profit increased by $1.0 million for the three months ended August 31, 2024 compared to the same period in the prior year.

The change from the prior year was primarily driven by:

• Sales volume, price and product mix, which positively impacted gross profit by $1.8 million;

• Inflationary costs on raw materials, labor shortages and freight costs negatively impacted gross profit by $0.4 million;

• Incremental depreciation and other expense on placement units of $0.6 million.

The Med Device segment gross profit decreased by $4.3 million for the three months ended August 31, 2024 compared to the same period in the prior year.

The change from the prior year was primarily driven by:

• The sale of the PICCs, Midline, dialysis and BioSentry businesses contributed $3.4 million of gross profit in the prior year;

• Sales volume, which negatively impacted gross profit by $1.0 million;

• Production volume and other incentives, which negatively impacted gross profit by $0.4 million.

This was partially offset by production volume related to our TSA, which positively impacted gross profit by $0.3 million;

• Price and product mix, which positively impacted gross profit by $0.8 million;

• Inflationary costs on raw materials, labor shortages and freight costs negatively impacted gross profit by $0.5 million;

• Incremental depreciation and other expense on placement units of $0.1 million.

Total Company gross profit decreased by $0.4 million and $3.7 million for the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively.

The change for both periods was primarily driven by:

• The sale of the PICCs, Midline, dialysis and BioSentry businesses contributed $3.6 million and $7.0 million of gross profit, respectively;

• Sales volume, price and product mix, which positively impacted gross profit by $6.7 million and $9.1 million, respectively;

• Production volume, other incentives and other costs, which negatively impacted gross profit by $1.6 million and $1.7 million, respectively;

• Inflationary costs on raw materials, labor shortages and freight costs negatively impacted gross profit by $1.2 million and $2.7 million, respectively;

• Incremental depreciation and other expense on placement units of $0.7 million and $1.3 million, respectively.

The Med Tech segment gross profit increased by $4.3 million and $5.3 million for the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively.

The change for both periods was primarily driven by:

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• Sales volume, price and product mix, which positively impacted gross profit by $5.9 million and $7.6 million, respectively;

• Production volume, other incentives and other costs, which negatively impacted gross profit by $0.7 million and $0.4 million, respectively;

• Inflationary costs on raw materials, labor shortages and freight costs negatively impacted gross profit by $0.2 million and $0.7 million, respectively;

• Incremental depreciation and other expense on placement units of $0.6 million and $1.2 million, respectively.

The Med Device segment gross profit decreased by $4.7 million and $9.0 million for the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively.

The change for both periods was primarily driven by:

• The sale of the PICCs, Midline, dialysis and BioSentry businesses contributed $3.6 million and $7.0 million of gross profit, respectively;

• Price and product mix, which positively impacted gross profit by $1.4 million and $2.9 million, respectively;

• Sales volume, production volume, other incentives and other costs, which negatively impacted gross profit by $1.4 million and $2.9 million, respectively;

• Inflationary costs on raw materials, labor shortages and freight costs negatively impacted gross profit by $1.0 million and $2.0 million, respectively;

• Incremental depreciation and other expense on placement units of $0.1 million and $0.1 million, respectively.

Operating Expenses and Other Income (Expense)

Three Months Ended

(in thousands) Aug 31, 2024 Aug 31, 2023 $ Change

Three Months Ended Six Months Ended

(in thousands) Nov 30, 2024 Nov 30, 2023 $ Change Nov 30, 2024 Nov 30, 2023 $ Change

Research and development $ 6,434 $ 8,658 $ (2,224) $ 12,719 $ 16,599 $ (3,880)

5 unchanged sentences

Research and development expense - Research and development (“R&D”) expense includes internal and external costs to develop new products, enhance existing products, validate new and enhanced products, and manage clinical, regulatory and medical affairs.

R& D expense decreased $1.7 million for the three months ended August 31, 2024 compared to the same period in the prior year .

The change from the prior year was primarily driven by:

• The timing of certain projects and clinical spend associated with the ongoing clinical trials, which decreased R&D expense by $1.3 million;

• Compensation and benefits expenses, which decreased $0.4 million.

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R&D expense decreased $2.2 million and $3.9 million for the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively.

The change for both periods was primarily driven by:

• The timing of certain projects and clinical spend associated with the ongoing clinical trials, which decreased R&D expense by $2.8 million and $4.2 million, respectively;

• Compensation and benefits expenses, which increased $0.5 million and $0.2 million, respectively.

Sales and marketing expense - Sales and marketing (“S&M”) expense consists primarily of salaries, commissions, travel and related business expenses, attendance at medical society meetings, product promotions and marketing activities.

S&M expense decreased $1.8 million for the three months ending August 31, 2024 compared to the same period in the prior year.

The change from the prior year was primarily driven by:

• Compensation and benefits expense, which decreased by $1.7 million;

• Travel and other selling expenses, which decreased $0.2 million and was partially offset by trade show expenses, which increased $0.4 million.

S&M expense increased $0.1 million and decreased $1.6 million for the three and six months ending November 30, 2024 compared to the same period in the prior year, respectively.

The change for both periods was primarily driven by:

• Compensation and benefits expense, which decreased by $0.8 million and $2.5 million, respectively;

• Travel and other selling expenses, which increased $0.6 million and $0.3 million, respectively, and trade show expenses, which increased $0.2 million and $0.4 million, respectively.

General and administrative expense - General and administrative (“G&A”) expense includes executive management, finance, information technology, human resources, business development, legal, and the administrative and professional costs associated with those activities.

G&A e xpense increased $0.1 million for th e three months ended August 31, 2024 compared to the same period in the prior year.

The change from the prior year was primarily driven by:

• Compensation and benefits expenses, which decreased $0.8 million;

• Other outside consultant spend for legal and IT, which increased $0.9 million.

Three Months Ended

(in thousands) Aug 31, 2024 Aug 31, 2023 $ Change

G&A expense increased $1.1 million and $1.2 million for the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively.

The change for both periods was primarily driven by:

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• Compensation and benefits expenses, which increased $1.8 million and $1.0 million, respectively;

• Other outside consultant spend for legal and IT, which increased $0.4 million and $1.3 million, respectively, which was partially offset by a decrease in depreciation and other corporate expenses of $1.1 million for both periods.

Three Months Ended Six Months Ended

(in thousands) Nov 30, 2024 Nov 30, 2023 $ Change Nov 30, 2024 Nov 30, 2023 $ Change

Amortization of intangibles $ 2,562 $ 3,562 $ (1,000) $ 5,132 $ 7,187 $ (2,055)

1 unchanged sentence

Acquisition, restructuring and other items, net $ 5,868 $ 6,188 $ (320) $ 10,179 $ 9,400 $ 779

Other expense, net $ 433 $ (169) $ 602

Other income, net $ 246 $ 502 $ (256) $ 679 $ 333 $ 346

Amortization of intangibles - Represents the amount of amortization expense that was taken on intangibles assets held by the Company.

• Amortization expense decreased $1.1 million for the three months ended August 31, 2024 compared to the same period in the prior year, due to the intangible assets that were included in the sale of the dialysis, BioSentry, PICCs and Midlines businesses and the abandonment of the Syntrax product line.

• Amortization expense decreased $1.0 million and $2.1 million for the three and six months ended November 30, 2024 compared to the same period in the prior year, respectively, due to the intangible assets that were included in the sale of the dialysis, BioSentry, PICCs and Midlines businesses and the abandonment of the Syntrax product line.

Change in fair value of contingent consideration - Represents changes in contingent consideration driven by changes to estimated future payments on earn-out liabilities created through acquisitions and amortization of present value discounts on long-term contingent consideration.

• The change in the fair value for the three months ended August 31, 2024 is related to the Eximo contingent consideration.

• The change in the fair value for the three and six months ended November 30, 2024 is related to the Eximo contingent consideration.

Acquisition, restructuring and other items, net - Represents costs associated with mergers and acquisitions, restructuring expenses, legal costs that are related to litigation that is not in the ordinary course of business, legal settlements and other one-time items.

Acquisition, restructuring and other item s, net, increased by $1.1 million for the three months ended August 31, 2024, compared to the same period in the prior year.

The change from the prior year was primarily driven by:

• Legal expense, related to litigation that is outside of the normal course of business, which decreased $1.3 million;

• Plant closure expense, related to the restructuring of our manufacturing footprint which was announced on January 5, 2024, which increased $3.6 million;

Acquisition, restructuring and other item s, net, decreased by $0.3 million and increased $0.8 million for the three and six months ended November 30, 2024, compared to the same period in the prior year, respectively.

The change for both periods was primarily driven by:

• Legal expense, related to litigation that is outside of the normal course of business, which decreased $5.3 million and $6.7 million, respectively;

• Mergers and acquisition expense, which increased $0.5 million for both periods;

• Plant closure expense, related to the restructuring of our manufacturing footprint which was announced on January 5, 2024, which increased $5.1 million and $8.7 million, respectively;

• Transaction services agreements that were entered into as a result of the sale of the PICCs, Midline, dialysis and BioSentry businesses.

The increase in the fees invoiced was $0.4 million;

• Manufacturing relocation expense related to the move of certain manufacturing lines from Queensbury, New York to a third party, which decreased $0.6 million.

The increase in the fees invoiced was $0.3 million and $0.6 million, respectively;

• Manufacturing relocation expense related to the move of certain manufacturing lines from Queensbury, New York to a third party, which decreased $0.7 million and $1.3 million, respectively.

Other income, net - Other expenses include interest expense, foreign currency impacts and bank fees.

• Other income, net decreased by $0.3 million for the three months ended November 30, 2024, compared to the same period in the prior year, which is primarily due to decreased interest income.

Other income, net increased by $0.3 million for the six months ended November 30, 2024, compared to the same period in the prior year, which is primarily due to i ncreased interest income of $0.2 million and unrealized foreign currency fluctuations of $0.1 million.

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Other expense, net - Other expenses include interest expense, foreign currency impacts and bank fees.

• The change in other expe nse of $0.6 million for the three months ended August 31, 2024, compared to the same period in the prior year , is primarily due to increased interest income of $0.4 million and unrealized foreign currency fluctuations of $0.1 million.

Income Tax Benefit

Three Months Ended

(in thousands) Aug 31, 2024 Aug 31, 2023

Three Months Ended Six Months Ended

(in thousands) Nov 30, 2024 Nov 30, 2023 Nov 30, 2024 Nov 30, 2023

Income tax benefit (expense) $ (110) $ 16,430 $ 23 $ 5,407

Effective tax rate including discrete items 1.0 % (130.2) % (0.1) % 24.3 %

Our effective tax rate including discrete items for the three months ended August 31, 2024 and August 31, 2023 was (1.1)% and (31.6)%, respectively.

Our effective tax rate including discrete items for the three months ended November 30, 2024 and 2023 was 1.0% and (130.2)%, respectively.

Our effective tax rate including discrete items for the six months ended November 30, 2024 and 2023 was (0.1)% and 24.3%, respectively.

In fiscal year 2025, the Company’s effective tax rate differs from the U.S.

2 unchanged sentences

We regularly review our liquidity and anticipated capital requirements and we believe that our current cash on hand provides sufficient liquidity to meet our anticipated needs for capital for at least the next 12 months.

Our cash and cash equivalents totaled $55.0 million as of August 31, 2024, compared with $76.1 million as of May 31, 2024.

As of August 31, 2024 and May 31, 2024 the Company did not have any outstanding debt.

The fair value of contingent consideration liability as of August 31, 2024 and May 31, 2024, was $4.8 million and $4.7 million, respectively.

Our cash and cash equivalents totaled $54.1 million as of November 30, 2024, compared with $76.1 million as of May 31, 2024.

As of November 30, 2024 and May 31, 2024 the Company did not have any outstanding debt.

The fair value of contingent consideration liability as of November 30, 2024 and May 31, 2024, was $5.0 million and $4.7 million, respectively.

The table below summarizes our cash flows:

Three Months Ended

(in thousands) Aug 31, 2024 Aug 31, 2023

Six Months Ended

(in thousands) Nov 30, 2024 Nov 30, 2023

Cash provided by (used in):

4 unchanged sentences

Net change in cash and cash equivalents $ (21,967) $ 16,276

During the quarters ended August 31, 2024 and 2023, cash flows consisted of the following:

During the six months ended November 30, 2024 and 2023, cash flows consisted of the following:

Cash used in operating activities

Three months ended August 31, 2024 and 2023:

Six months ended November 30, 2024 and 2023:

• Net loss of $23.5 million and a net income of $16.8 million, respectively, plus the non-cash items, primarily driven by depreciation and amortization and stock based compensation, along with the changes in working capital below, contributed to cash used in operations of $15.8 million and $20.6 million, respectively, for these periods.

• For the period ended August 31, 2024, working capital was unfavorably impacted by decreased accounts payable, accrued liabilities and other liabilities of $15.0 million, along with increased in ventory and prepaid expenses of $4.1 million and $0.8 million, respectively.

• For the period ended November 30, 2024, working capital was unfavorably impacted by decreased accounts payable, accrued liabilities and other liabilities of $7.5 million, along with increased in ventory and prepaid expenses of $5.3 million and $0.1 million, respectively.

This was partially offset by decreased accounts rec eivable of $0.1 million .

• For the period ended August 31, 2023, working capital was unfavorably impacted by decreased accounts payable, accrued liabilities and other liabilities of $16.5 million, along with increased inventory and prepaid expenses of $4.6 million and $4.2 million, respectively.

• For the period ended November 30, 2023, working capital was unfavorably impacted by accounts payable, accrued liabilities and other liabilities of $1.0 million, along with increased inventory and prepaid expenses of $8.8 million and $5.0 million, respectively.

This was partially offset by decreased accounts rec eivable of $0.7 million .

Cash (used in) provided by investing activities

Three months ended August 31, 2024 and 2023:

Six months ended November 30, 2024 and 2023:

• $1.9 million and $1.3 million, respectively, of cash was used for fixed asset additions;

• $2.5 million and $2.0 million, respectively, of cash was used for Auryon placement and evaluation unit additions;

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• $100.0 million of cash was received for the divestiture of the dialysis and BioSentry businesses in the first quarter of fiscal year 2024.

Cash used in financing activities

Three months ended August 31, 2024 and 2023:

Six months ended November 30, 2024 and 2023:

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• $1.7 million of cash was used for the repurchase of commons shares in the first quarter of fiscal year 2025;

10 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis