Dynatronics Corporation (OTCQB:DYNT) Q3 2021 Earnings Conference Call May 13, 2021 8:30 AM ET Company Participants Skyler Black - Principal Accounting Officer John Krier - President & Chief Executive Officer Norm Roegner - Chief Financial Officer Conference Call Participants Jeffrey Cohen - Ladenburg Thalmann Scott Henry - ROTH Capital Partners Anthony Vendetti - Maxim Group Evan Greenberg - Legend Cap Opportunity Fund Operator Good morning, ladies and gentlemen, and welcome to the Dynatronics Third Quarter ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading symbol Name of each exchange on which registered Common Stock, no par value per share DYNT The NASDAQ Capital Market FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to ...

Dynatronics Corporation (OTCQB:DYNT) Q2 2021 Earnings Conference Call February 11, 2021 8:30 AM ET Company Participants Skyler Black - Principal Accounting Officer John Krier - President & CEO Norm Roegner - CFO Conference Call Participants Jeffrey Cohen - Ladenburg Thalmann Scott Henry - ROTH Capital Partners Anthony Vendetti - Maxim Group Operator Good morning, ladies and gentlemen, and welcome to the Dynatronics Second Quarter Financial Year 2021 Earnings Call. At this time, all participants have been pl ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q2 FY2021 reflect net losses, decreased sales, and balance sheet shifts, despite positive operating cash flow [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2020, total assets remained stable, while current assets increased, total liabilities rose, and stockholders' equity decreased Balance Sheet Summary (as of December 31, 2020 vs. June 30, 2020) | Metric | Dec 31, 2020 ($) | June 30, 2020 ($) | | :--- | :--- | :--- | | **Total Current Assets** | $18,115,599 | $16,074,708 | | Cash and cash equivalents | $3,509,240 | $2,215,665 | | Inventories, net | $6,141,106 | $8,371,842 | | **Total Assets** | **$37,557,309** | **$37,596,317** | | **Total Current Liabilities** | $11,020,279 | $7,678,697 | | Line of credit | $0 | $1,012,934 | | **Total Liabilities** | **$18,613,713** | **$17,700,436** | | **Total Stockholders' Equity** | **$18,943,596** | **$19,895,881** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net losses widened for both three and six-month periods ended December 31, 2020, primarily due to significant declines in net sales and gross profit Statement of Operations Highlights (Unaudited) | Metric | Three Months Ended Dec 31, 2020 ($) | Three Months Ended Dec 31, 2019 ($) | Six Months Ended Dec 31, 2020 ($) | Six Months Ended Dec 31, 2019 ($) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $11,967,901 | $15,196,991 | $24,100,669 | $31,586,540 | | Gross Profit | $3,340,974 | $4,585,856 | $7,242,927 | $9,739,863 | | Operating (Loss) Income | ($596,865) | ($32,244) | ($940,538) | $197,071 | | Net Loss | ($672,832) | ($137,663) | ($1,050,536) | ($38,825) | | Net Loss per Share (Basic & Diluted) | ($0.06) | ($0.05) | ($0.10) | ($0.06) | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity decreased to $18.94 million by December 31, 2020, primarily due to a net loss, leading to an increased accumulated deficit - Total stockholders' equity declined by approximately **$952,000** during the six months ended December 31, 2020, from **$19,895,881** to **$18,943,596**[19](index=19&type=chunk) - The accumulated deficit grew from **$(16,349,328)** at June 30, 2020, to **$(17,776,175)** at December 31, 2020, reflecting the net losses incurred during the period[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $2.63 million for the six months ended December 31, 2020, increasing cash and equivalents by $1.29 million Cash Flow Summary (Six Months Ended Dec 31) | Cash Flow Activity | 2020 ($) | 2019 ($) | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,631,676 | $2,916,239 | | Net cash used in investing activities | ($71,646) | ($183,731) | | Net cash used in financing activities | ($1,266,455) | ($2,456,543) | | **Net change in cash** | **$1,293,575** | **$275,965** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide details on the company's medical device business, asset reclassifications, inventory changes, revenue disaggregation by product, and equity-related transactions - The company classified its Tennessee building and land, valued at **$845,858**, as assets held for sale, with an expected sale within the next year[30](index=30&type=chunk) Revenue by Product Category (Three Months Ended Dec 31) | Product Category | 2020 ($) | 2019 ($) | | :--- | :--- | :--- | | Orthopedic Soft Bracing Products | $5,082,484 | $5,833,972 | | Physical Therapy and Rehabilitation Products | $6,824,049 | $9,283,017 | | Other | $61,368 | $80,002 | | **Total** | **$11,967,901** | **$15,196,991** | - As of December 31, 2020, the company had **no borrowings** on its line of credit, with approximately **$5.367 million** available to borrow[42](index=42&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes decreased sales and gross profit to the COVID-19 pandemic, while maintaining positive operating cash flow and sufficient liquidity for the next 12 months [Results of Operations](index=15&type=section&id=Results%20of%20Operations) Net sales and gross profit declined significantly due to COVID-19 impacts, despite reduced SG&A expenses, leading to a widened pre-tax loss Q2 FY2021 vs Q2 FY2020 Performance | Metric | Q2 FY2021 (ended Dec 31, 2020) ($) | Q2 FY2020 (ended Dec 31, 2019) ($) | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $11,968,000 | $15,197,000 | -21.2% | | Gross Profit | $3,341,000 | $4,586,000 | -27.1% | | Gross Margin | 27.9% | 30.2% | -2.3 p.p. | | SG&A Expenses | $3,938,000 | $4,618,000 | -14.7% | | Pre-tax Loss | ($663,000) | ($138,000) | +380.4% | - The primary reason for the year-over-year sales decrease was the impact of COVID-19 precautions and deferred elective procedures, reducing product demand[56](index=56&type=chunk) [Liquidity and Capital Resources](index=16&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and equivalents increased to $3.61 million by December 31, 2020, supported by positive operating cash flow, providing sufficient liquidity for the next 12 months - The company's cash and cash equivalents increased by **$1.29 million** in the six months ended December 31, 2020, primarily due to **$2.63 million** in net cash provided by operating activities[66](index=66&type=chunk)[74](index=74&type=chunk) - The company obtained a **$3.48 million** Paycheck Protection Program (PPP) loan in April 2020 and intends to apply for full forgiveness[70](index=70&type=chunk)[71](index=71&type=chunk) - Inventories decreased by **26.6%** to **$6.1 million** as of December 31, 2020, as part of working capital management in response to COVID-19 impacts[76](index=76&type=chunk) - The line of credit balance was reduced to **$0** as of December 31, 2020, down from **$1.01 million** at June 30, 2020, with approximately **$5.4 million** available to borrow[78](index=78&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=19&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes in quantitative and qualitative disclosures about market risk since the fiscal year ended June 30, 2020 - There have been **no material changes** in quantitative and qualitative disclosures about market risk since the fiscal year ended June 30, 2020[88](index=88&type=chunk) [Item 4. Controls and Procedures](index=19&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of December 31, 2020, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2020[90](index=90&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter that would be reasonably likely to have a **material effect**[91](index=91&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=19&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - The company reports that there are **no legal proceedings**[92](index=92&type=chunk) [Item 1A. Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) The company states that the risk factors previously disclosed in its Annual Report on Form 10-K have not materially changed - There have been **no material changes** to the risk factors previously disclosed in the Annual Report for the year ended June 30, 2020[94](index=94&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=19&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - The company reports **no unregistered sales** of equity securities[95](index=95&type=chunk) [Item 3. Defaults Upon Senior Securities](index=19&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - The company reports **no defaults** upon senior securities[96](index=96&type=chunk) [Item 4. Mine Safety Disclosures](index=19&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company, thus no mine safety disclosures were reported - **Not applicable**[97](index=97&type=chunk) [Item 5. Other Information](index=19&type=section&id=Item%205.%20Other%20Information) The company reported no other information required to be disclosed under this item - The company reports **no other information**[98](index=98&type=chunk) [Item 6. Exhibits](index=20&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the quarterly report, including officer certifications and XBRL data files - Exhibits filed include certifications from the principal executive officer and principal financial officer (Exhibits **31.1, 31.2, 32.1, 32.2**) and XBRL Instance Documents[100](index=100&type=chunk)

Financial Data and Key Metrics Changes - Net sales for Q1 2021 decreased by $4.3 million or 26.0% to $12.1 million compared to $16.4 million in the same quarter of the prior year [12][16] - Gross margin decreased by $1.3 million or 24.3% to $3.9 million, representing 32.2% of sales, compared to 31.4% of sales in the same quarter of the prior year [17] - Net loss for the quarter was approximately $0.4 million compared to a net income of $0.1 million in the same quarter of the prior year [19] Business Line Data and Key Metrics Changes - Selling, general and administrative (SG&A) expenses decreased by approximately $0.7 million or 13.8% to $4.2 million compared to $4.9 million in the same quarter of the prior year [18] - The company generated $1.1 million in positive cash flow from operating activities and paid down its line of credit by $1 million, currently having no outstanding balance [13] Market Data and Key Metrics Changes - The decrease in net sales was primarily due to a reduction in sales related to COVID-19 precautions and the deferral of elective procedures [16] - The company reported that Q1 represented sequential improvement, finishing at approximately 74% of the prior year compared to expectations of 60% to 70% [21] Company Strategy and Development Direction - The company is focused on balancing the uncertain business environment with opportunities in the market and for its products [15] - Dynatronics remains committed to executing its recovery plan and pursuing growth strategies as market opportunities arise [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the margins achieved in Q1 and noted that they are matching resources to demand [24] - The company will continue to suspend guidance due to ongoing uncertainty in the markets caused by the COVID-19 pandemic [21] Other Important Information - The company is finalizing the closure of its Tennessee facility and transferring rehabilitation supplies to a third-party logistics provider [15] - As of September 30, 2020, the company held cash balances of approximately $2.3 million and had an $11 million asset-based line of credit with zero borrowings [19][20] Q&A Session Summary Question: Any commentary on margins and sustainability going forward? - Management expressed pride in the gross margins delivered in Q1 and noted that they are pleased with the activity seen in October, indicating a positive outlook [24] Question: Commentary on October ordering patterns and geographical differences? - Management confirmed that ordering patterns are geography-driven and noted that October trended in line with Q1, feeling good about the activity level [25] Question: Specific areas of product line performance? - Management highlighted the diversity in product lines, noting that different brands performed well depending on the type of procedures and physical therapy visits [28] Question: Priorities for driving down SG&A expenses and product innovation? - Management stated that they are focused on matching resources to run a scalable organization and are looking for new product opportunities within their portfolio [31][32]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading symbol Name of each exchange on which registered Common Stock, no par value per share DYNT The NASDAQ Capital Market FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ ...

Dynatronics Corporation (OTCQB:DYNT) Q4 2020 Earnings Conference Call September 24, 2020 8:30 AM ET Company Participants John Krier - President and CEO Skyler Black - Principal Accounting Officer Conference Call Participants Nathan Weinstein - Aegis Capital Corp. Anthony Vendetti - Maxim Group LLC Scott Henry - ROTH Capital Partners Operator Good day, ladies and gentlemen, and welcome to your Dynatronics Fourth Quarter 2020 Earnings Call. [Operator Instructions] At this time, it is my pleasure to turn the f ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) Dynatronics designs and sells restorative medical products, focusing on acquisition-driven growth and operational efficiencies in a regulated market - The company's strategy aims for significant growth through a **value-driven acquisition program** to become a recognized standard in restorative solutions[21](index=21&type=chunk) - Manufactured products comprised approximately **75% of net sales** in fiscal year 2020, excluding freight and other revenue[36](index=36&type=chunk)[48](index=48&type=chunk) - Significant operational changes include closing the Tennessee facility, outsourcing distribution to Millstone Medical Outsourcing, and outsourcing electrotherapy manufacturing to Ascentron to enhance profitability[26](index=26&type=chunk)[27](index=27&type=chunk)[34](index=34&type=chunk) - John Krier was appointed as the new CEO effective **July 7, 2020**, following Brian Baker's resignation[29](index=29&type=chunk)[30](index=30&type=chunk) - Sales outside North America totaled approximately **$1.3 million** in fiscal year 2020, representing **2.4% of net sales**[60](index=60&type=chunk) [Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant operational, financial, and regulatory risks, including third-party reliance, COVID-19, delisting, and stock dilution - Reliance on a **third-party logistics (3PL) provider** and **third-party manufacturers** for electrotherapy products poses significant operational disruption risks[88](index=88&type=chunk)[92](index=92&type=chunk) - The COVID-19 pandemic presents significant risks, including supply chain disruptions, increased material costs, and adverse impacts on sales and inventory valuation[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) - The company has a history of **nine consecutive fiscal years of net losses** and may require additional funding, which might not be available on favorable terms[102](index=102&type=chunk)[103](index=103&type=chunk) - On **May 15, 2020**, Nasdaq issued a notice regarding the common stock's closing bid price falling below **$1.00** for 30 consecutive days, risking delisting[136](index=136&type=chunk) - Outstanding preferred shares and warrants, convertible into **3,681,000** and **6,738,500 common shares** respectively as of September 21, 2020, pose significant dilution risk[144](index=144&type=chunk) - As of **June 30, 2020**, Prettybrook Partners, LLC and affiliates held approximately **15% of voting power**, granting significant influence and board appointment rights[148](index=148&type=chunk) [Unresolved Staff Comments](index=25&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) This section is not applicable as the company has no unresolved staff comments from the SEC - There are no unresolved staff comments[152](index=152&type=chunk) [Properties](index=25&type=section&id=Item%202.%20Properties) The company operates from leased facilities in MN, NJ, and UT, and owns a TN facility currently for sale Company Properties Overview | Location | Size (sq-ft) | Type | Details | | :--- | :--- | :--- | :--- | | Eagan, MN | 85,000 | Leased | Corporate HQ. Lease extended through Oct 2022 | | Northvale, NJ | 60,000 | Leased | Hausmann operations. Lease extended through Apr 2023 | | Cottonwood Heights, UT | 36,000 | Leased | Finance lease-back agreement, terminates in 2029 | | Chattanooga, TN | 53,000 | Owned | Subject to mortgage, currently for sale | [Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) The company is not involved in any material legal proceedings, nor is any of its property subject to such actions - There are no pending legal proceedings of a material nature[165](index=165&type=chunk) [Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable as the company has no mine safety disclosures - This item is not applicable[159](index=159&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=26&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NASDAQ, with **14.1 million shares outstanding** as of September 2020, and no cash dividends - The company's common stock is listed on the **NASDAQ Capital Market** under the symbol **DYNT**[161](index=161&type=chunk) Common Stock Price Range (FY 2020) | Quarter (FY 2020) | High Price | Low Price | | :--- | :--- | :--- | | Q1 (Jul-Sep) | $1.86 | $1.00 | | Q2 (Oct-Dec) | $1.28 | $0.63 | | Q3 (Jan-Mar) | $3.70 | $0.81 | | Q4 (Apr-Jun) | $1.30 | $0.63 | - The company has never paid cash dividends on its common stock and plans to retain earnings for business development[163](index=163&type=chunk) - In FY 2020, the company sold **3,200,585 common shares**, generating net proceeds of **$2.287 million**[167](index=167&type=chunk) [Selected Financial Data](index=27&type=section&id=Item%206.%20Selected%20Financial%20Data) This item is not applicable as the company is a smaller reporting company - This item is not applicable[169](index=169&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2020 saw a **14.6% sales decrease** to **$53.4 million** and a widened net loss, with liquidity improving to **$2.2 million cash** [Results of Operations](index=27&type=section&id=Item%207.%20Results%20of%20Operations) FY2020 net sales decreased **14.6%** to **$53.4 million** due to COVID-19, resulting in a **$3.4 million** net loss Consolidated Results of Operations (FY 2020 vs. FY 2019) | Metric | FY 2020 ($) | FY 2019 ($) | Change ($) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | 53,409,000 | 62,565,000 | (9,156,000) | -14.6% | | Gross Profit | 15,098,000 | 19,174,000 | (4,076,000) | -21.3% | | Gross Margin | 28.3% | 30.6% | -2.3 p.p. | N/A | | SG&A Expenses | 18,091,000 | 19,970,000 | (1,879,000) | -9.4% | | Net Loss | (3,425,000) | (922,000) | (2,503,000) | +271.5% | | Net Loss per Share | (0.42) | (0.21) | (0.21) | +100.0% | - The decrease in net sales was primarily due to **COVID-19 related restrictions** and a continued decline in physical therapy and rehabilitation product sales[173](index=173&type=chunk) - The decrease in SG&A expenses resulted from lower commission expenses on reduced sales and decreased payroll and benefits due to headcount reductions[176](index=176&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Item%207.%20Liquidity%20and%20Capital%20Resources) As of June 30, 2020, liquidity significantly improved with cash increasing to **$2.2 million**, driven by operational cash flow, an ATM offering, and a **$3.5 million PPP loan** Liquidity and Capital Resources Metrics | Metric | June 30, 2020 ($) | June 30, 2019 ($) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,216,000 | 156,000 | | Working Capital | 8,396,000 | 5,638,000 | | Current Ratio | 2.1 to 1 | 1.4 to 1 | - In April 2020, the company sold **3.2 million common shares** in an ATM offering, raising net proceeds of **$2.287 million**[187](index=187&type=chunk) - On **April 29, 2020**, the company received a **PPP loan of $3,477,412**, which it expects to use for qualified expenses and apply for forgiveness[188](index=188&type=chunk)[189](index=189&type=chunk) - The line of credit balance was reduced to **$1.0 million** at year-end from **$6.5 million** in 2019, with approximately **$5.0 million** available to borrow[197](index=197&type=chunk) [Critical Accounting Policies](index=32&type=section&id=Item%207.%20Critical%20Accounting%20Policies) Critical accounting policies involve significant judgments in inventory valuation, revenue recognition, allowance for doubtful accounts, and deferred income taxes - Key critical accounting policies involve significant estimates for **inventory valuation**, **revenue recognition**, **allowance for doubtful accounts**, and **deferred income taxes**[206](index=206&type=chunk) - The inventory valuation reserve increased to **$568,000** in FY2020 from **$139,000** in FY2019, reflecting management's assessment of slow-moving or obsolete inventory[208](index=208&type=chunk) - A full valuation allowance is required against net deferred tax assets due to a **nine-year history of cumulative losses**, as their realization is not more likely than not[214](index=214&type=chunk)[216](index=216&type=chunk) [Business Plan and Outlook](index=34&type=section&id=Item%207.%20Business%20Plan%20and%20Outlook) The FY2021 business plan focuses on driving sales, increasing profitability, pursuing strategic acquisitions, and enhancing investor communications - The company's FY2021 strategy focuses on four main areas: * Driving sales through strategic accounts and channel optimization * Increasing operating profitability with cost discipline * Pursuing M&A opportunities in core markets * Enhancing communication with the investor community[219](index=219&type=chunk) - The acquisition strategy targets manufacturers and distributors in core markets like physical therapy and orthopedics, focusing on candidates that extend geographic reach, provide channel access, or are value-oriented businesses[220](index=220&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=34&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This item is not applicable as the company is a smaller reporting company - This item is not applicable[221](index=221&type=chunk) [Financial Statements and Supplementary Data](index=35&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for FY2020 and FY2019, for which Tanner LLC issued an unqualified opinion - The independent auditor, Tanner LLC, provided an **unqualified opinion** on the company's consolidated financial statements for the years ended **June 30, 2020 and 2019**[226](index=226&type=chunk) Key Consolidated Financial Metrics | Key Financial Metrics | June 30, 2020 ($) | June 30, 2019 ($) | | :--- | :--- | :--- | | **Balance Sheet** | | | | Total Assets | 37,596,317 | 39,631,945 | | Total Liabilities | 17,700,436 | 18,876,236 | | Total Stockholders' Equity | 19,895,881 | 20,755,709 | | **Income Statement** | | | | Net Sales | 53,409,046 | 62,565,117 | | Net Loss | (3,425,483) | (921,722) | - The company adopted the new lease accounting standard (Topic 842) on **July 1, 2019**, recognizing operating lease Right-of-Use (ROU) assets and liabilities of **$4,203,925**[275](index=275&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=59&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in or disagreements with the company's accountants regarding accounting principles or financial disclosure - None reported[342](index=342&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%209A.%20Controls%20and%20Procedures) As of June 30, 2020, management concluded that disclosure controls and internal control over financial reporting were effective - Management concluded that as of **June 30, 2020**, the company's disclosure controls and procedures were effective[344](index=344&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of **June 30, 2020**[346](index=346&type=chunk) - As a smaller reporting company, this report does not include an attestation report from the independent registered public accounting firm regarding internal control over financial reporting[347](index=347&type=chunk) [Other Information](index=60&type=section&id=Item%209B.%20Other%20Information) There is no other information to report for this item - None reported[350](index=350&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Compensation, and Related Party Transactions](index=60&type=section&id=Item%2010-14) Information for Items 10 through 14 is incorporated by reference from the company's definitive proxy statement to be filed with the SEC - Information for **Items 10, 11, 12, 13, and 14** is incorporated by reference from the definitive proxy statement[352](index=352&type=chunk)[353](index=353&type=chunk)[354](index=354&type=chunk)[355](index=355&type=chunk)[356](index=356&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=61&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section provides an index of financial statements from Item 8 and a list of all exhibits filed or incorporated by reference - The financial statements are set forth under **Item 8**, and financial statement schedules have been omitted as not required or applicable[359](index=359&type=chunk) - An index of exhibits is provided, including key agreements such as the **Loan and Security Agreement with Bank of the West**, the **PPP Note**, and various **equity incentive plans**[362](index=362&type=chunk)[366](index=366&type=chunk)[369](index=369&type=chunk) [Form 10-K Summary](index=64&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary was provided for this report - None[374](index=374&type=chunk)

Dynatronics Corporation (OTCQB:DYNT) Q3 2020 Earnings Conference Call May 14, 2020 8:30 AM ET Company Participants Brian Baker - President and CEO John Krier - CFO Conference Call Participants Nathan Weinstein - Aegis Capital Jeffrey Cohen - Ladenburg Operator Good day, ladies and gentlemen. And welcome to your Dynatronics Third Quarter 2020 Earnings Call. All lines have been placed in a listen-only mode and the floor will be opened for questions and comments following the presentation. [Operator Instructi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 0-12697 Dynatronics Corporation (Exact name of registrant as specified in its charter) Utah 87-0398434 (State o ...