Financial Data and Key Metrics Changes - For the second quarter ended December 31, 2019, net sales decreased by $243,000 or 1.6% to $15.2 million compared to $15.4 million in the same quarter of the prior year, primarily due to a reduction in sales of physical therapy and rehabilitation products [17] - Gross profit for the quarter decreased by $94,000 or 2% to $4.6 million, representing 30.2% of sales compared to 30.3% in the same quarter of the prior year [18] - Selling, general and administrative expenses decreased by approximately $155,000 or 3.2% to $4.6 million compared to $4.8 million in the same quarter of the prior year [18] - Net loss for the quarter was approximately $137,000 compared to a net loss of $441,000 in the same quarter of the prior year [19] - Operating income improved by $61,000 for the second quarter of fiscal 2020 compared to the second quarter of fiscal 2019 [19] Business Line Data and Key Metrics Changes - The company achieved sales objectives for major brands including Hausmann, Bird & Cronin, and Solaris, with a commitment to meet sales objectives every quarter [8] - The commercial teams are implementing improved sales analytics to gain insights into sales trends and opportunities [9] Market Data and Key Metrics Changes - The company expects consolidated net sales for fiscal year 2020 to be in the range of $59 million to $61 million, aligning with historical trends [21] - The number of common shares outstanding increased by 760,000 in the second quarter due to the conversion of Series C preferred to common shares [23] Company Strategy and Development Direction - The company aims to drive operational changes to reduce costs, improve profitability, and position itself well for the next fiscal year [12] - A new e-commerce store will be launched to enhance customer experience and augment sales channels [15] - The focus for the current fiscal year is to lay the operational foundation for mid-single digit organic revenue growth and to continue the M&A strategy [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the narrowed sales guidance for fiscal year 2020 and indicated that the company is well-positioned for modest single-digit growth beyond the current fiscal year [30] - The company anticipates generating positive cash flow from operating activities for fiscal 2020, despite some volatility in quarters [35] Other Important Information - The company has reduced its line of credit balance to $4.8 million as of December 31, 2019, reflecting decreases in working capital accounts and positive cash flow from operating activities [11] - The company is actively recruiting for key positions to enhance talent in critical areas [13] Q&A Session Summary Question: Can you give us a sense on FTEs over the past quarter? - Management indicated that full-time employees are in the low 300 range, with approximately 280 currently [28][29] Question: Do you think mid-single digit growth will commence in March/June? - Management feels confident about meeting the sales guidance for fiscal year 2020 and is positioning the company for modest single-digit growth beyond this fiscal year [30] Question: Can you talk about the torque table and other innovations? - The torque table is a proprietary product that anchors patients during therapy, and there are plans to refresh the Solaris product for easier use [32][34] Question: What is the status of the outsourcing of the electrotherapy line? - Management reported good progress on outsourcing the electrotherapy line to a contract manufacturer, which is expected to positively impact margins [39] Question: Can you discuss the product line rationalization process? - Management confirmed that the product rationalization project has been completed, with ongoing management of product lifecycle [41]

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 December 31, 2019 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 (Stat ...

Dynatronics Corp. (OTCQB:DYNT) Q1 2020 Earnings Conference Call November 12, 2019 8:30 AM ET Company Participants Brian Baker – President and Chief Executive Officer David Wirthlin – Chief Financial Officer Conference Call Participants Jeffrey Cohen – Ladenburg Scott Henry – ROTH Capital Nathan Weinstein – Aegis Anthony Vendetti – Maxim Group Operator Ladies and gentlemen, hello and thank you all for joining this Dynatronics First Quarter 2020 Earnings Calls. All telephone lines are presently in a listen-o ...

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 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, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to ...

Dynatronics Corp. (OTCQB:DYNT) Q4 2019 Earnings Conference Call September 25, 2019 8:30 AM ET Company Participants Brian Baker - CEO David Wirthlin - CFO & Secretary Conference Call Participants Scott Henry - Roth Capital Partners Nathan Weinstein - Aegis Capital Corporation Operator Good day, ladies and gentlemen, and welcome to the Dynatronics Fourth Quarter 2019 Earnings Call. [Operator Instructions]. At this time, it's my pleasure to turn the floor over to Mr. Brian Baker, CEO. Sir, the floor is yours. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2019. 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 or ot ...

Dynatronics Corporation (OTCQB:DYNT) Q3 2019 Earnings Conference Call May 14, 2019 8:30 AM ET Company Participants Chris von Jako - Chief Executive Officer David Wirthlin - Chief Financial Officer Conference Call Participants Anthony Vendetti - Maxim Group Jeffrey Cohen - Ladenburg Operator Good day, ladies and gentlemen, and welcome to the Dynatronics Third Quarter 2019 Earnings Call. All lines have been placed on a listen-only mode and the floor will be open for your questions and comments following the p ...

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, 2019 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 ...

Financial Data and Key Metrics Changes - Net sales for Q2 2019 decreased by $2.6 million or 14.6% to $15.4 million compared to $18.1 million in the same quarter of the prior year, primarily due to reduced sales of physical therapy and rehabilitation products [13] - Gross profit for Q2 2019 decreased by approximately $1.1 million or 18.9% to $4.7 million, representing 30.3% of sales, compared to 31.9% in the same quarter of the prior year [15] - Net loss for Q2 2019 was approximately $441,000 compared to net income of $14,000 in the same quarter of the prior year [22] Business Line Data and Key Metrics Changes - Sales of physical therapy and rehabilitation products decreased by $2.6 million in Q2 2019 due to product rationalization initiatives and transitions in the sales force [13] - Selling, general and administrative expenses for Q2 2019 decreased by approximately $0.9 million or 15.7% to $4.8 million compared to $5.7 million in the same quarter of the prior year [19] Market Data and Key Metrics Changes - The company experienced general softness in demand through its direct channel, impacting sales and gross margin percentage [9] - The decline in sales through the direct channel resulted in a higher percentage of sales through the dealer channel, which lowered the average selling price and gross margin [16] Company Strategy and Development Direction - The company is focused on driving profitability through operational improvements in its therapy products business and scaling through organic growth and acquisitions [7] - The strategy includes aggressive actions to eliminate unproductive activities and reduce overhead, which may negatively impact top-line growth in the short term but aims for greater profitability in the long term [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the second quarter financial performance was weaker than expected but remains optimistic about long-term positioning for success [7] - The company expects consolidated sales for fiscal 2019 to be approximately $61 million to $64 million, lower than previous guidance due to second quarter results [28] Other Important Information - As of December 31, 2018, the company had cash balances of approximately $524,000 and an asset-based line of credit of $11 million, with $5.1 million borrowed [26] - The company continues to maintain a focus on improving operational margins and cash flow while delivering restorative products [31] Q&A Session All Questions and Answers Question: Weakness in physical therapy and rehab divisions - Management indicated that the weakness was primarily in the legacy business within the direct channel [36] Question: Guidance for Q3 and gross margins - Management expects gross margins to improve off Q2 levels but not reach Q1 levels, estimating around 31% for the fiscal year [37][38] Question: Changes in the commercial team - The size of the direct sales team has decreased, with some transitions from direct to dealer models in non-performing areas [40][42] Question: Impact of product rationalization on revenue guidance - Management confirmed that the original revenue guidance included a $5 million impact from discontinued products, with additional softness factored into the updated guidance [50] Question: Confidence in returning to growth in fiscal year 2020 - Management expressed optimism about returning to growth in fiscal year 2020 but did not provide specific guidance [53][55] Question: General softness in the direct channel - Management attributed the softness to lower clinic openings and delays in upgrading existing capital equipment, viewing it as a temporary pullback in demand [56]

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 December 31, 2018 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 (Stat ...