Electromed to Receive Refund for Medical Device Excise Taxes Paid

Electromed, Inc. maker of airway clearance technologies, announced that the Internal Revenue Service has agreed to refund the company approximately $406,000 related to federal medical device excise taxes paid on revenue associated with the sales of its SmartVest® Airway Clearance System during the company’s tax periods ended June 30, 2014 through December 31, 2015. This refund from the IRS will be recognized in the company’s financial statements during the fiscal quarter ending June 30, 2018, and is the result of an examination the company concluded with the IRS on May 22, 2018, that determined the SmartVest was eligible for the retail exemption from the medical device excise tax. Furthermore, the Company will be exempt from the medical device tax after the conclusion of the current two-year medical device tax moratorium, which is scheduled to end on December 31, 2019.