Welcome to the update call for Evome Medical Technologies Incorporated, listed on the TSXV under the ticker EVMT. I would like to remind everyone that today's discussion will include forward-looking information and forward-looking statements, future-oriented financial information, and non-GAAP measures regarding future events and our future financial performance. These statements reflect our views as of today only and should not be considered as representing our views for any subsequent date and except as required by law. We do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after today, many of which are beyond our control. These statements are also subject to material risks and uncertainties that could cause actual results to differ materially from expectations reflected in the forward-looking statements.
A discussion of these risk factors is fully discussed or referred to in the company's news releases and in Evome's disclosure documents filed on SEDAR+. During this call, we may also refer to certain non-GAAP financial measures. For information regarding our non-GAAP financials and the reconciliation of GAAP to non-GAAP measures, please also refer to our news releases and our SEDAR+ filings. Ladies and gentlemen, allow me to introduce our Chief Executive Officer, Mike Seckler.
Thank you, and good afternoon to everyone. We have a lot to cover today, so let's just jump right into it. As a reminder, I started as CEO at the start of the third quarter in 2023, July 1 of last year, about 11 months ago. Last week, we posted our first quarter of 2024, which is the third reported quarter of my tenure. Now, I inherited a business that was in a very challenging situation. For five consecutive quarters before I began, the business had no revenue growth, accelerated losses, and dwindling cash. On top of that, there was a large debt obligation that was very short in duration, and there was a concern regarding our ability to service that debt. The stock was down 90% from its high, and shareholders were unhappy and quite vocal about it.
It was a turnaround situation that required immediate action with difficult decisions. Now, I took the assignment because I believe the company had the blueprint for success, meaning it had very strong assets, customers who wanted our products, and creditors willing to work with us. I review all of this because it's important to talk about the first quarter of 2024 through the lens of the problems that I had inherited. Since that time, my team and I have cut costs, increased revenue in the Biodex business unit, built new sales channels, launched one new product, secured new product licensing agreements, restructured debt, and sold non-core assets to reduce debt. And that was just in the first six months of my tenure. With the momentum we had going into 2024, I had to make a decision to pivot from saving this company to building it.
Took our team six months to save, but as we entered the fourth quarter, I knew it was saved. We had averted foreclosure from our creditor. We had been able to survive a tough cash crunch, and I could see a potential pathway for how we could pay off our debt by selling our non-core assets. This first started with the sale of Arrowhead and subsequently Simbex, two businesses that were not profitable. By selling these companies, we reduced our total debt by $3.47 million. The pivot is an important and crucial thing to talk about. The pivot was a moment we could move from looking into the past to looking to the future. Our past was behind us, and our future looked very bright in January.
It looks even brighter now as we enter June, and I finish my first full year as CEO. Demand for our Biodex products is very high around the world. Our Biodex System 4 line of products are the gold standard of isokinetic devices in the physical medicine market, and our technology is regarded as best-in-class. In February of this year, we launched the innovative Reactive Step Trainer, which is an affordable and space-efficient device that is proven to prevent falls for patients who are relearning to walk, or after a traumatic brain injury. It also takes us into the private physical therapy marketplace, which has a customer target base that's 10 times the size of the institutional market that we serve today. The last pill to swallow from the difficulties of the past was to retool for growth. I took that decision in January, and we retooled our production capacity.
The cost t hat, that cost us our profit for the quarter, and while it might have seemed risky at the time, I knew we had strong demand for our products, and the only way we could put up good quarterly growth was to do it. So we swallowed the pill, and we suffered the first quarter because of it. After growing and generating a positive Adjusted EBITDA for both the third and fourth quarter, we had to suffer a tough quarter to set ourselves up for the future. So let's measure the outcomes of that decision. First, our April sales were double that of January sales. Second, our capacity utilization is higher, just as we're working on a deal with a new Asian distributor that has the potential to purchase over $5 million a year from Biodex.
And the Veterans Medical Supply Company, which distributes exclusively to the U.S. VA, put in their first order for our System 4 Gait Trainer and Balance System. Thirdly, we shifted our focus away from non-core assets and prepared them for divestment, and that also had a cost consequence that are only for the first quarter. So the tale of the tape is the second quarter, and already two months in, I can say we're in a very good position to deliver positive Adjusted EBITDA and revenue growth. We have passed the point of the turnaround, and now we're in our way to growth. That took an investment. I understand this company has a credibility problem, and the market doesn't seem to look favorable, favorably upon it. So any investment is seen simply as a waste of money with an empty promise attached. That's my worry.
While that seems to be the narrative of the past management team, this is not true of my team. We have come in and very quickly turned this company around, and now we're going to grow it. We are nothing like the last management team. We changed the name of the company to give the market the not-so-subtle hint that we're doing things differently. Our investment in retooling is already paying off. The second quarter is proof of this statement. Let's look more deeply into what to expect. We will be finishing our second quarter in a solid position on many different levels. As for revenue growth, we announced some figures Monday morning. You can see that just in the first two months of this quarter, we estimate that we have generated significant revenue growth over the last quarter for Damar and Biodex combined. Let's move to gross margin.
You can see our gross margin is higher. As for Adjusted EBITDA, while we are not sharing our expectations, we believe right now it will be positive. As for debt, we will certainly be reducing debt for the fourth consecutive quarter, and we have a plan to reduce debt at South Dakota Partners significantly. Now, the key to understanding our debt situation is to understand our asset base. We have $17.06 million in AR, cash, and inventory, and only $6.14 million in AP and accrued assets. Against that net, $11.6 million in assets, we are borrowing $7.91 million in working capital debt. This debt fluctuates as our business grows. While we pay interest on it, the principal is backed by our asset levels, which are healthy relative to our trade liabilities.
Our cash, AR, and inventory is nearly three times the amount of our AP and accrued expenses. That is a healthy ratio, without a doubt. Our goal is to pay down this working line over the next two quarters through increasing revenues, so look out for that improvement. The remaining $13.79 million is acquisition debt. While that seems large, it has been reduced significantly since I began, and as we see Damar improving its performance, we feel confident we can pay off most, if not all, of this debt from the sale of Damar. We will plan to start that process later in the year, and we anticipate Damar having a boost in growth later in the year with the introduction of a new product, which already has orders.
With the successful divestiture of Damar and our plan to reduce our asset base line borrowing over the next two quarters, our balance sheet will improve greatly. As for cash, our cash availability is generally measured at 85% of our AR. So if you see a low cash balance, it's because we are looking to reduce interest expense for holding cash. I am not worried about our cash, cash position, and we are projected to grow cash flow going forward. I understand we will have to post a few more quarters of this type of performance to win over the critics, but I have a tremendous amount of confidence that we will do just that.
I've been asked, "What does the future of Evome Medical Technologies look like?" Well, the foundation of Evome is Biodex, the leader in isokinetic machines and the most recognizable brand for over 30 years in physical medicine. Our strategy is to leverage this foundation with continuous product launches, targeting the private practice physical therapy segment within the physical medicine market, and innovate by enhancing accessibility to cost-effective and space-efficient products and services. As I mentioned earlier, we've done just that with the launch of our Reactive Step Trainer. Next up is the launch of our Space Technique, which was co-developed with NASA, which will allow the private physical therapist the ability to deliver our System 4 technology at half the price in a fraction of the floor space, exactly our strategy of making Biodex accessible to more patients.
Thank you for joining us today and allowing us to update you on the progress of the turnaround. I look forward to updating you next quarter on our financial results.