ReposiTrak Delivers Earnings Per Share of $0.08, Grows Recurring Revenue 6% in Fiscal Third Quarter
Onboarding of Traceability Customers Continues to Accelerate;
Third Quarter Financial Highlights:
-
Third quarter total revenue increased 5% to
$5.1 million from$4.8 million . -
Recurring revenue increased 6%, net of the planned elimination of high-touch, low-opportunity revenue, to
$5.1 million from$4.8 million , representing approximately 99% of total revenue. -
Quarterly operating expense increased 15% to
$3.8 million from$3.3 million . The third fiscal quarter last year included approximately$1 million in an Employee Retention Credit (“ERC”), reducing general and administrative expenses. -
Quarterly operating income decreased 17% to
$1.3 million from$1.5 million last year. Excluding the non-recurring ERC credit in the third fiscal quarter last year, operating income would have increased approximately$800,000 year-over-year. -
Quarterly GAAP net income decreased 7% to
$1.6 million from$1.7 million last year. Excluding the non-recurring ERC credit in the third fiscal quarter last year, net income would have increased approximately$900,000 year-over-year. -
Quarterly net income to common shareholders was
$1.4 million , down 7% from$1.5 million last year. Excluding the non-recurring ERC credit in the third fiscal quarter last year, net income to common shareholders would have increased approximately$900,000 year-over-year. -
Quarterly EPS of
$0.08 , unchanged from the prior year. -
During the quarter, the Company redeemed 70,093 preferred shares for the stated redemption price of
$10.70 per share for a total of$749,995 . -
The Company finished the quarter with
$24.5 million in cash and no bank debt.
“Meanwhile, we continue to maintain robust profitability, returning capital to shareholders in the form of a cash dividend, redeeming preferred shares, all while growing our cash balances,” added Fields. “This approach will not change. ReposiTrak is the clear leader in the rapidly unfolding traceability industry, as evidenced by our market share, industry endorsements, and the near-term investments are already beginning to lead to higher revenue, earnings, and cash as the FSMA 204 deadline is right around the corner.”
Third
Fiscal Quarter Financial Results (three months ended
Total revenue was up 5% to
Year-to-Date Financial Results (nine months ended
Total revenue was up 7% to
Return of Capital:
In the third quarter of fiscal 2024, the Company redeemed another 70,093 preferred shares at the stated redemption price of
In
Balance Sheet:
The Company had
Conference Call:
The Company will host a conference call at
Participant Dial-In Numbers:
Date:
Time:
Toll-Free: 1-877-300-8521
Toll/International 1-412-317-6026
Conference ID: 10188893
Replay Dial-In Numbers:
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Start:
Replay Expiry:
Replay Pin Number: 10188893
About ReposiTrak
ReposiTrak (NYSE:TRAK), formerly
Forward-Looking Statement
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the
REPOSITRAK, INC. Consolidated Condensed Balance Sheets (Unaudited) |
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Assets |
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Current Assets |
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Cash and cash equivalents |
|
$ |
24,452,680 |
|
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$ |
23,990,879 |
|
Receivables, net of allowance for doubtful accounts of |
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3,776,472 |
|
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2,523,019 |
|
Contract asset – unbilled current portion |
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147,520 |
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186,959 |
|
Prepaid expense and other current assets |
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451,041 |
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573,763 |
|
Total Current Assets |
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28,827,713 |
|
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27,274,620 |
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Property and Equipment, net |
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591,724 |
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986,300 |
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Other Assets: |
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Deposits and other assets |
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22,414 |
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22,414 |
|
Prepaid expense – less current portion |
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6,677 |
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36,282 |
|
Contract asset – unbilled long-term portion |
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108,052 |
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108,052 |
|
Operating lease – right-of-use asset |
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265,726 |
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310,796 |
|
Customer relationships |
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164,250 |
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262,800 |
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20,883,886 |
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20,883,886 |
|
Capitalized software costs, net |
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463,036 |
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698,281 |
|
Total Other Assets |
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21,914,041 |
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22,322,511 |
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Total Assets |
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$ |
51,333,478 |
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$ |
50,583,431 |
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Liabilities and Shareholders ’ Equity |
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Current Liabilities |
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Accounts payable |
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$ |
510,412 |
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$ |
431,387 |
|
Accrued liabilities |
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|
1,390,232 |
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|
1,620,000 |
|
Contract liability – deferred revenue |
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|
2,466,262 |
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|
1,903,001 |
|
Operating lease liability – current |
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|
62,725 |
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|
58,771 |
|
Notes payable and financing leases – current |
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|
215,274 |
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|
219,262 |
|
Total Current Liabilities |
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4,644,905 |
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4,232,421 |
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Long-Term Liabilities |
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Operating lease liability – less current portion |
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215,676 |
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263,047 |
|
Notes payable and financing leases – less current portion |
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- |
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206,032 |
|
Total Liabilities |
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4,860,581 |
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4,701,500 |
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Commitments and Contingencies |
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Stockholders’ Equity: |
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Preferred Stock; |
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Series B Preferred, 700,000 shares authorized; 625,375 shares issued and outstanding at |
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6,254 |
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6,254 |
|
Series B-1 Preferred, 550,000 shares authorized; 72,216 and 212,402 shares issued and outstanding at |
|
|
722 |
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|
2,124 |
|
Common Stock, |
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|
182,218 |
|
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|
183,093 |
|
Additional paid-in capital |
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|
65,277,419 |
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|
67,732,887 |
|
Accumulated other comprehensive loss |
|
|
(31,006 |
) |
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|
- |
|
Accumulated deficit |
|
|
(18,962,710 |
) |
|
|
(22,042,427 |
) |
Total Stockholders’ Equity |
|
|
46,472,897 |
|
|
|
45,881,931 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
51,333,478 |
|
|
$ |
50,583,431 |
|
REPOSITRAK, INC. Consolidated Condensed Statements of Operations and Comprehensive Income (Unaudited) |
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Three Months Ended
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Nine Months Ended
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2024 |
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2023 |
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2024 |
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2023 |
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Revenue |
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$ |
5,084,866 |
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$ |
4,824,101 |
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$ |
15,270,729 |
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$ |
14,295,091 |
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Operating expense: |
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Cost of services and product support |
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|
831,912 |
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|
840,272 |
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2,571,533 |
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|
2,539,618 |
|
Sales and marketing |
|
|
1,349,838 |
|
|
|
1,239,946 |
|
|
|
4,119,716 |
|
|
|
3,667,017 |
|
General and administrative |
|
|
1,352,197 |
|
|
|
916,237 |
|
|
|
3,978,798 |
|
|
|
3,392,056 |
|
Depreciation and amortization |
|
|
288,576 |
|
|
|
305,864 |
|
|
|
897,479 |
|
|
|
771,030 |
|
Total operating expense |
|
|
3,822,523 |
|
|
|
3,302,319 |
|
|
|
11,567,526 |
|
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|
10,369,721 |
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Income from operations |
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|
1,262,343 |
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|
1,521,782 |
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|
3,703,203 |
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|
3,925,370 |
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Other income (expense): |
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Interest income |
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350,691 |
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|
275,941 |
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|
925,297 |
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|
554,299 |
|
Interest expense |
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(8,036 |
) |
|
|
(9,771 |
) |
|
|
(21,956 |
) |
|
|
(52,481 |
) |
Unrealized gain (loss) on short term investments |
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|
5,429 |
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|
35,068 |
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|
48,071 |
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(3,753 |
) |
Other gain |
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- |
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- |
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- |
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|
70,047 |
|
Income before income taxes |
|
|
1,610,427 |
|
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|
1,823,020 |
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|
4,654,615 |
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4,493,482 |
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(Provision) for income taxes: |
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(60,000 |
) |
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(160,000 |
) |
|
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(274,491 |
) |
|
|
(280,006 |
) |
Net income |
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1,550,427 |
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|
1,663,020 |
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|
4,380,124 |
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4,213,476 |
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Dividends on preferred stock |
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(134,345 |
) |
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(146,611 |
) |
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(427,567 |
) |
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(439,833 |
) |
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Net income applicable to common shareholders |
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$ |
1,416,082 |
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$ |
1,516,409 |
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$ |
3,952,557 |
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$ |
3,773,643 |
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Weighted average shares, basic |
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|
18,194,000 |
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|
18,394,000 |
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|
18,194,000 |
|
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|
18,408,000 |
|
Weighted average shares, diluted |
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|
18,954,000 |
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|
18,751,000 |
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|
18,874,000 |
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|
18,702,000 |
|
Basic income per share |
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$ |
0.08 |
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$ |
0.08 |
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$ |
0.22 |
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$ |
0.20 |
|
Diluted income per share |
|
$ |
0.08 |
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|
$ |
0.08 |
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$ |
0.21 |
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|
$ |
0.20 |
|
REPOSITRAK, INC. Consolidated Condensed Statements of Cash Flows (Unaudited) |
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Nine months
Ended |
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|
2024 |
|
2023 |
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Cash flows from operating activities: |
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Net income |
|
$ |
4,380,124 |
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|
$ |
4,213,476 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
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|
897,479 |
|
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|
771,030 |
|
Amortization of operating right-of-use asset |
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|
45,070 |
|
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|
43,019 |
|
Stock compensation expense |
|
|
260,853 |
|
|
|
315,216 |
|
Bad debt expense |
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|
225,000 |
|
|
|
1,200,000 |
|
(Increase) decrease in: |
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Accounts receivables |
|
|
(1,439,014 |
) |
|
|
86,972 |
|
Long-term receivables, prepaids and other assets |
|
|
751 |
|
|
|
655,391 |
|
Increase (decrease) in: |
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||
Accounts payable |
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|
79,025 |
|
|
|
(309,812 |
) |
Operating lease liability |
|
|
(43,417 |
) |
|
|
(39,777 |
) |
|
|
|
|
|
|
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||
Accrued liabilities |
|
|
(58,391 |
) |
|
|
122,744 |
|
Deferred revenue |
|
|
563,261 |
|
|
|
7,631 |
|
Net cash provided by operating activities |
|
|
4,910,741 |
|
|
|
7,065,890 |
|
|
|
|
|
|
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||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchase of property and equipment |
|
|
(17,532 |
) |
|
|
(133,944 |
) |
Capitalization of software costs |
|
|
- |
|
|
|
(769,243 |
) |
Purchase of marketable securities |
|
|
(31,006 |
) |
|
|
- |
|
Net cash (used in) investing activities |
|
|
(48,538 |
) |
|
|
(903,187 |
) |
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
||
Net (decrease) in lines of credit |
|
|
- |
|
|
|
(2,590,907 |
) |
Common Stock buyback/retirement |
|
|
(1,515,574 |
) |
|
|
(981,194 |
) |
Redemption of series B-1 preferred |
|
|
(1,499,990 |
) |
|
|
- |
|
Proceeds from employee stock plan |
|
|
111,839 |
|
|
|
92,728 |
|
Dividends paid |
|
|
(1,286,657 |
) |
|
|
(993,037 |
) |
Payments on notes payable and capital leases |
|
|
(210,020 |
) |
|
|
(209,748 |
) |
Net cash used in financing activities |
|
|
(4,400,402 |
) |
|
|
(4,682,158 |
) |
|
|
|
|
|
|
|
||
Net increase (decrease) in cash and cash equivalents |
|
|
461,801 |
|
|
|
1,480,545 |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents at beginning of period |
|
|
23,990,879 |
|
|
|
21,460,948 |
|
Cash and cash equivalents at end of period |
|
$ |
24,452,680 |
|
|
$ |
22,941,493 |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
||
Cash paid for income taxes |
|
$ |
317,944 |
|
|
$ |
264,486 |
|
Cash paid for interest |
|
$ |
11,711 |
|
|
$ |
52,481 |
|
Cash paid for operating leases |
|
$ |
54,606 |
|
|
$ |
53,015 |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of non-cash investing and financing activities: |
|
|
|
|
|
|
||
Common stock to pay accrued liabilities |
|
$ |
445,980 |
|
|
$ |
256,977 |
|
Dividends accrued on preferred stock |
|
$ |
427,567 |
|
|
$ |
439,833 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240515114345/en/
Investor Relations Contact:
Investor-relations@repositrak.com
Or
FNK IR
646.809.4048
rob@fnkir.com
Source: ReposiTrak