Dynatronics Corp. Files 10-Q for Period Ending Dec 31, 2024

TL;DR

Dynatronics Corp. 10-Q filed. Financials for Q2 FY25 out.

AI Summary

Dynatronics Corp. filed its 10-Q for the period ending December 31, 2024. The company, which operates in the Surgical & Medical Instruments & Apparatus sector, reported financial results for the second quarter of fiscal year 2025. The filing details financial performance and business operations for the period.

Why It Matters

This filing provides investors and stakeholders with an update on Dynatronics Corp.'s financial health and operational performance for the second quarter of fiscal year 2025.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial updates, not indicating immediate significant risks.

Key Numbers

• 20241231 — Period End Date (Fiscal year 2025 second quarter)
• 20250214 — Filing Date (Date the 10-Q was submitted)

Key Players & Entities

• DYNATRONICS CORP (company) — Filer
• 0000720875 (company) — Central Index Key
• 3841 (company) — Standard Industrial Classification
• UT (location) — State of Incorporation
• SALT LAKE CITY (location) — Business Address City

FAQ

Key Financial Figures

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

Filing Documents

• form10q.htm (10-Q) — 490KB
• exhibit31-1.htm (EX-31.1) — 7KB
• exhibit31-2.htm (EX-31.2) — 7KB
• exhibit32-1.htm (EX-32.1) — 3KB
• exhibit32-2.htm (EX-32.2) — 3KB
• 0001062993-25-002574.txt ( ) — 2415KB
• dynt-20241231.xsd (EX-101.SCH) — 21KB
• dynt-20241231_cal.xml (EX-101.CAL) — 31KB
• dynt-20241231_def.xml (EX-101.DEF) — 27KB
• dynt-20241231_lab.xml (EX-101.LAB) — 225KB
• dynt-20241231_pre.xml (EX-101.PRE) — 111KB
• form10q_htm.xml (XML) — 211KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. 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 ForwardLooking Statements 9

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 12

Controls and Procedures

Item 4. Controls and Procedures 12

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 13

Risk Factors

Item 1A. Risk Factors 13

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 13

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 13

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 13

Other Information

Item 5. Other Information 13

Exhibits

Item 6. Exhibits 14

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements DYNATRONICS CORPORATION Condensed Consolidated Balance Sheets (Unaudited) December 31, 2024 June 30, 2024 Assets Current assets: Cash and cash equivalents $ 791,010 $ 483,918 Restricted cash 50,410 50,410 Trade accounts receivable, less allowance for credit losses of $ 60,502 and $ 48,997 as of December 31, 2024 and June 30, 2024, respectively 2,823,886 3,444,587 Other receivables 206,171 454,390 Inventories, net 6,537,981 5,593,974 Prepaid expenses 690,746 530,356 Total current assets 11,100,204 10,557,635 Property and equipment, net 1,714,499 1,969,413 Operating lease assets 2,738,275 2,831,417 Intangible assets, net 2,690,825 2,999,975 Goodwill 7,116,614 7,116,614 Other assets 404,899 465,505 Total assets $ 25,765,316 $ 25,940,559 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 3,463,215 $ 2,712,142 Accrued payroll and benefits expense 591,134 566,443 Accrued expense 1,020,016 725,727 Warranty reserve 110,576 120,677 Line of credit 2,354,509 2,121,667 Current portion of finance lease liability 311,589 302,998 Current portion of deferred gain 150,448 150,448 Current portion of operating lease liability 1,208,454 1,004,808 Total current liabilities 9,209,941 7,704,910 Finance lease liability, net of current portion 1,270,898 1,428,870 Deferred gain, net of current portion 551,642 626,866 Operating lease liability, net of current portion 1,532,129 1,829,608 Other liabilities 179,337 189,861 Total liabilities 12,743,947 11,780,115 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, 2024 and June 30, 2024, respectively 7,980,788 7,980,788 Common stock, no par value: Authorized 100,000,000 shares; 7,2

Business

Business Dynatronics Corporation (the "Company," or "Dynatronics") is a leading medical device company committed to providing high-quality products designed to accelerate 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. Basis of Presentation The accompanying unaudited condensed consolidated financial statements (the "Condensed Consolidated Financial Statements") have been prepared by the Company in accordance with generally accepted accounting principles in the United States ("GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Consolidated Financial Statements should be read in conjunction with the Company's audited financial statements and accompanying notes included in its Annual Report on Form 10K for the fiscal year ended June 30, 2024 (the "Annual Report") filed with the SEC on September 24, 2024. The Condensed Consolidated Balance Sheet at June 30, 2024, has been derived from the Annual Report. The accounting policies followed by the Company are set forth in Part II, Item 8, Note 1, Basis of Presentation and Summary of Accounting Policies, of the Notes to Consolidated Financial Statements included in the Company's Annual Report. In the opinion of management, the Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company's financial position as of

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View this 10-Q filing on SEC EDGAR