Dynatronics Corp. Files Form 10-Q for Period Ending December 31, 2023

TL;DR

<b>Dynatronics Corp. filed its quarterly report (10-Q) for the period ending December 31, 2023, providing an update on its financial status.</b>

AI Summary

DYNATRONICS CORP (DYNTQ) filed a Quarterly Report (10-Q) with the SEC on February 7, 2024. Dynatronics Corp. filed a Form 10-Q with the SEC on February 7, 2024, for the period ending December 31, 2023. The filing covers the company's financial performance and condition for the specified reporting period. The company's fiscal year ends on June 30. Dynatronics Corp. is incorporated in Utah. The company's business address is 7030 Park Centre Drive, Bldg D, Salt Lake City, UT 84121.

Why It Matters

For investors and stakeholders tracking DYNATRONICS CORP, this filing contains several important signals. This 10-Q filing provides crucial, up-to-date financial information for investors and analysts to assess Dynatronics Corp.'s performance and make informed decisions. Understanding the details within this filing is essential for evaluating the company's operational health, profitability, and any potential risks or opportunities.

Risk Assessment

Risk Level: medium — DYNATRONICS CORP shows moderate risk based on this filing. The company's financial health and operational performance are subject to the dynamic nature of the medical device industry, which can involve regulatory changes and market competition, as indicated by its SIC code 3841 (Surgical & Medical Instruments & Apparatus).

Analyst Insight

Monitor future 10-Q filings for trends in revenue, net income, and debt levels to assess Dynatronics Corp.'s financial trajectory.

Key Numbers

• 2023-12-31 — Period of Report (CONFORMED PERIOD OF REPORT)
• 2024-02-07 — Filing Date (FILED AS OF DATE)
• 0630 — Fiscal Year End (FISCAL YEAR END)
• 3841 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• DYNATRONICS CORP (company) — FILER
• 0000720875 (company) — CENTRAL INDEX KEY
• 3841 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• UT (company) — STATE OF INCORPORATION
• SALT LAKE CITY (company) — CITY
• 8015687000 (company) — BUSINESS PHONE
• DYNATRONICS LASER CORP (company) — FORMER COMPANY
• Gibraltar Business Capital LLC (company) — COLLABORATIVE ARRANGEMENT MEMBER

Forward-Looking Statements

• Dynatronics will utilize a significant portion of the $12.5 million credit facility to fund ongoing operations and potential growth initiatives. (Dynatronics Corp.) — medium confidence, target: 2024-06-30
• The increased debt load from the new credit facility will lead to higher interest expenses in upcoming financial reports. (Dynatronics Corp.) — high confidence, target: 2024-06-30

FAQ

Risk Factors

• Regulatory Compliance [medium — regulatory]: The company must comply with various regulations in the medical device industry.
• Market Competition [medium — market]: The surgical and medical instruments market is competitive, potentially impacting sales and market share.
• Operational Efficiency [medium — operational]: Maintaining efficient operations is crucial for profitability in the manufacturing of medical devices.
• Financial Performance [medium — financial]: The company's financial results are subject to market demand and economic conditions.

Key Dates

• 2024-02-07: Filing of 10-Q — Provides financial and operational details for the period ending 2023-12-31.
• 2023-12-31: End of Reporting Period — The period covered by the filed 10-Q.

Key Financial Figures

• $1,000,000 — 1.0 if excess availability is less than $1,000,000 of the borrowing base . Note 6. Relat

Filing Documents

• form10q.htm (10-Q) — 658KB
• exhibit10-1.htm (EX-10.1) — 66KB
• exhibit31-1.htm (EX-31.1) — 6KB
• exhibit31-2.htm (EX-31.2) — 6KB
• exhibit32-1.htm (EX-32.1) — 3KB
• exhibit32-2.htm (EX-32.2) — 3KB
• 0001062993-24-002134.txt (&nbsp;) — 2609KB
• dynt-20231231.xsd (EX-101.SCH) — 19KB
• dynt-20231231_cal.xml (EX-101.CAL) — 31KB
• dynt-20231231_def.xml (EX-101.DEF) — 30KB
• dynt-20231231_lab.xml (EX-101.LAB) — 219KB
• dynt-20231231_pre.xml (EX-101.PRE) — 113KB
• form10q_htm.xml (XML) — 236KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 2 Item 1.

Financial Statements

Financial Statements 2 Condensed Consolidated Balance Sheets (Unaudited) 2 Condensed Consolidated Statements of Operations (Unaudited) 3 Condensed Consolidated Statements of Stockholders' Equity (Unaudited) 4 Condensed Consolidated Statements of Cash Flows (Unaudited) 5 Notes to Condensed Consolidated Financial Statements (Unaudited) 6 Cautionary Note Regarding Forward Looking Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 10 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 15 Item 4.

Controls and Procedures

Controls and Procedures 15

OTHER INFORMATION

PART II. OTHER INFORMATION 16 Item 1.

Legal Proceedings

Legal Proceedings 16 Item 1A.

Risk Factors

Risk Factors 16 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 16 Item 3. Defaults Upon Senior Securities 16 Item 4. Mine Safety Disclosures 16 Item 5. Other Information 16 Item 6. Exhibits 17

Signatures

Signatures 18 1 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements DYNATRONICS CORPORATION Condensed Consolidated Balance Sheets (Unaudited) December 31, 2023 June 30, 2023 Assets Current assets: Cash and cash equivalents $ 401,107 $ 398,797 Restricted cash 154,073 154,073 Trade accounts receivable, less allowance for doubtful accounts of $ 99,630 and $ 131,403 as of December 31, 2023 and June 30, 2023, respectively 3,737,876 3,721,677 Other receivables 483,561 39,678 Inventories, net 6,753,064 7,403,194 Prepaid expenses 1,364,912 701,456 Total current assets 12,894,593 12,418,875 Property and equipment, net 2,296,582 2,448,282 Operating lease assets 3,133,712 3,631,780 Intangible assets, net 3,309,125 3,618,275 Goodwill 7,116,614 7,116,614 Other assets 548,291 829,049 Total assets $ 29,298,917 $ 30,062,875 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 3,974,681 $ 4,529,703 Accrued payroll and benefits expense 602,964 877,781 Accrued expense 1,094,105 891,467 Warranty reserve 126,259 115,637 Line of credit 1,897,322 - Current portion of finance lease liability 294,645 286,522 Current portion of deferred gain 150,448 150,448 Current portion of operating lease liability 1,019,638 1,075,690 Other liabilities 13,746 13,744 Total current liabilities 9,173,808 7,940,992 Finance lease liability, net of current portion 1,582,487 1,731,868 Deferred gain, net of current portion 702,090 777,314 Operating lease liability, net of current portion 2,114,075 2,554,450 Other liabilities 196,676 201,725 Total liabilities 13,769,136 13,206,349 Commitments and contingencies Stockholders' equity: Preferred stock, no par value: Authorized 50,000,000 shares; 3,351,000 shares issued and outstanding as of December 31, 2023 and June 30, 2023, respectively 7,980,788 7,980,788 Common stock, no par va

Business

Business Dynatronics Corporation (the "Company," or "Dynatronics") is a leading medical device company committed to providing high-quality restorative products designed to accelerate achieving optimal health. The Company designs, manufactures, and sells a broad range of products for clinical use in physical therapy, rehabilitation, orthopedics, pain management, and athletic training. Through its distribution channels, Dynatronics markets and sells to orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, and hospitals. Reverse Stock Split On November 17, 2022, the Company's shareholders approved Articles of Amendment to the Company's Amended and Restated Articles of Incorporation (the "Articles of Amendment") to effect a reverse stock split at a ratio in the range of 1-for-2 to 1-for-5, with such ratio to be determined in the discretion of the Company's board of directors and with such reverse stock split to be effected at such time and date, if at all, as determined by the Company's board of directors in its sole discretion. Thereafter, the Company's board of directors set the split ratio in the reverse stock split at 1-for-5 and approved and authorized the filing of the Articles of Amendment to effect the reverse stock split with the Utah Department of Commerce, Division of Corporations and Commercial Code. The Articles of Amendment and reverse stock split became effective at 5:00 p.m. Eastern Standard Time on February 1, 2023. At the effective time, every five issued and outstanding shares of common stock were converted into one share of common stock, with any fractional shares resulting from the reverse stock split rounded up to the nearest whole share. The reverse stock split did not affect the Company's authorized shares of common stock or preferred stock, which remained at 100,000,000 and 50,000,000 shares, respectively. The par value of each share of common stock remained unchanged. Proportionate ad

View Full Filing

View this 10-Q filing on SEC EDGAR