Track Group, Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Track Group, Inc. has filed its quarterly report (10-Q) for the period ending December 31, 2023, detailing its financial performance and business operations.</b>

AI Summary

Track Group, Inc. (TRCK) filed a Quarterly Report (10-Q) with the SEC on February 8, 2024. Track Group, Inc. filed a 10-Q report for the period ending December 31, 2023. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on September 30. Track Group, Inc. was formerly known as SecureAlert, Inc., REMOTE MDX INC, and VOLU SOL INC. The company is incorporated in Delaware.

Why It Matters

For investors and stakeholders tracking Track Group, Inc., this filing contains several important signals. This 10-Q filing provides investors and analysts with the latest financial data and operational updates for Track Group, Inc., enabling informed investment decisions. Understanding the company's performance in the first quarter of fiscal year 2024 is crucial for assessing its trajectory and potential future growth.

Risk Assessment

Risk Level: low — Track Group, Inc. shows low risk based on this filing. The filing is a standard 10-Q, indicating routine reporting rather than a significant event, and no immediate red flags are apparent from the header information.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand Track Group, Inc.'s current financial health and operational performance.

Key Numbers

• 2023-12-31 — Period End Date (Conformed Period of Report)
• 2024-02-08 — Filing Date (Filed as of Date)
• 0930 — Fiscal Year End (Fiscal Year End)
• 2023-10-01 — Quarter Start Date (Fiscal Quarter Details)
• 2023-12-31 — Quarter End Date (Fiscal Quarter Details)
• 2022-10-01 — Prior Year Quarter Start Date (Fiscal Quarter Details)
• 2022-12-31 — Prior Year Quarter End Date (Fiscal Quarter Details)
• 3669 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• Track Group, Inc. (company) — Filer name
• 0001045942 (company) — Central Index Key
• SecureAlert, Inc. (company) — Former company name
• REMOTE MDX INC (company) — Former company name
• VOLU SOL INC (company) — Former company name
• 20231231 (date) — Period of report
• 20240208 (date) — Filed as of date
• DE (jurisdiction) — State of incorporation

Forward-Looking Statements

• Track Group will continue to reduce its operating expenses in the next fiscal quarter. (Track Group, Inc.) — medium confidence, target: 2024-03-31
• The legal dispute with the Federal Government of Mexico will not be resolved within the next six months. (Federal Government of Mexico) — high confidence, target: 2024-08-08

FAQ

Industry Context

Track Group, Inc. operates within the Communications Equipment, NEC sector (SIC 3669). This sector involves the manufacturing of communication equipment not elsewhere classified.

Regulatory Implications

As a publicly traded company, Track Group, Inc. is subject to the reporting requirements of the Securities Exchange Act of 1934, necessitating regular filings like the 10-Q.

What Investors Should Do

1. Analyze the financial statements (Balance Sheet, Income Statement, Cash Flow) for the quarter ending December 31, 2023.
2. Review the 'Management's Discussion and Analysis of Financial Condition and Results of Operations' section for insights into performance drivers.
3. Check for any new risk factors or updates to existing ones disclosed in the filing.

Key Dates

• 2023-12-31: End of Reporting Period — Marks the end of the fiscal first quarter for the 10-Q filing.
• 2024-02-08: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the 10-Q filing for the period ending December 31, 2023. Previous filings would include the 10-K for the fiscal year ending September 30, 2023, and prior 10-Q reports.

Filing Documents

• trkg20231231_10q.htm (10-Q) — 805KB
• ex_621902.htm (EX-31.I) — 13KB
• ex_621904.htm (EX-31.II) — 13KB
• ex_621905.htm (EX-32) — 8KB
• 0001437749-24-003437.txt (&nbsp;) — 5340KB
• trck-20231231.xsd (EX-101.SCH) — 65KB
• trck-20231231_def.xml (EX-101.DEF) — 393KB
• trck-20231231_lab.xml (EX-101.LAB) — 298KB
• trck-20231231_pre.xml (EX-101.PRE) — 434KB
• trck-20231231_cal.xml (EX-101.CAL) — 46KB
• trkg20231231_10q_htm.xml (XML) — 721KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets (Unaudited) 3 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) 4 Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit) (Unaudited) 5 Condensed Consolidated Statements of Cash Flows (Unaudited) 6 Notes to Condensed Consolidated Financial Statements (Unaudited) 7 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 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 26 Item 4.

Controls and Procedures

Controls and Procedures 26

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 27 Item1A.

Risk Factors

Risk Factors 28 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28 Item 3. Defaults Upon Senior Securities 28 Item 4. Mine Safety Disclosures 28 Item 5. Other Information 28 Item 6. Exhibits 28

Signatures

Signatures 29 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements TRACK GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) December 31, September 30, 2023 2023 Assets Current assets: Cash $ 3,730,885 $ 4,057,195 Accounts receivable, net of allowance for credit losses of $ 298,969 and $ 178,095 , respectively 5,658,004 4,536,916 Prepaid expense and deposits 499,943 610,440 Inventory, net of reserves of $ 3,772 and $ 3,772 , respectively 970,329 1,286,194 Total current assets 10,859,161 10,490,745 Property and equipment, net of accumulated depreciation of $ 1,942,870 and $ 1,920,850 , respectively 97,393 115,808 Monitoring equipment, net of accumulated depreciation of $ 6,863,281 and $ 6,348,695 , respectively 5,146,124 5,187,092 Intangible assets, net of accumulated amortization of $ 18,138,039 and $ 17,430,846 , respectively 14,063,959 14,157,294 Goodwill 8,061,509 7,851,466 Other assets 2,382,312 2,442,154 Total assets $ 40,610,458 $ 40,244,559 Liabilities and Stockholders ' Equity (Deficit) Current liabilities: Accounts payable $ 3,276,912 $ 2,796,712 Accrued liabilities 2,664,755 2,571,839 Current portion of long-term debt 228,317 308,417 Total current liabilities 6,169,984 5,676,968 Long-term debt, net of current portion 42,797,352 42,801,165 Long-term liabilities 238,865 259,359 Total liabilities 49,206,201 48,737,492 Commitments and contingencies (Note 23) Stockholders ' equity (deficit): Common stock, $ 0.0001 par value: 30,000,000 shares authorized; 11,863,758 and 11,863,758 shares outstanding, respectively 1,186 1,186 Preferred stock, $ 0.0001 par value: 20,000,000 shares authorized; 0 shares outstanding - - Series A Convertible Preferred stock, $ 0.0001 par value: 1,200,000 shares authorized; 0 shares outstanding - - Paid in capital 302,600,546 302,597,115 Accumulated deficit ( 309,609,936 ) ( 309,610,397 ) Accumulate

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View this 10-Q filing on SEC EDGAR