Financial Performance - Total revenue for Q1 fiscal 2026 increased by 10% to $6.0 million, up from $5.4 million in the prior year[5] - GAAP net income rose by 9% to $1.8 million, compared to $1.7 million in Q1 fiscal 2025[5] - Earnings per share (EPS) increased by 13% to $0.09 per diluted share, up from $0.08 in the same quarter last year[5] - Operating income for the quarter increased by 28% to $1.9 million from $1.5 million year-over-year[6] - Net income for the three months ended September 30, 2025, was $1,819,529, an increase of 9.2% compared to $1,665,155 in the same period of 2024[19] Revenue Composition - Recurring revenue accounted for approximately 99% of total revenue[6] Cash Flow and Liquidity - The company ended the quarter with $28.8 million in cash and no bank debt[10] - The company generated $1.5 million in cash from operations during the quarter[6] - Cash and cash equivalents at the end of the period increased to $28,794,806, up from $25,790,206, representing a growth of 7.8%[19] - Net cash provided by operating activities decreased to $1,538,447 from $1,868,900, reflecting a decline of 17.6% year-over-year[19] Shareholder Returns - A quarterly dividend of $0.02 per share was declared, representing a 10% increase since the last dividend[6] - Common stock buyback amounted to $149,985, indicating a commitment to returning value to shareholders[19] - Dividends paid decreased slightly to $402,917 from $422,954, a reduction of 4.7% year-over-year[19] - The company has approximately $7.8 million remaining of the $21 million total common share buyback authorization[8] Expenses and Liabilities - Cash paid for income taxes rose significantly to $536,561, compared to $312,098, marking an increase of 71.5%[19] - Bad debt expense increased to $225,000, up from $150,000, reflecting a rise of 50%[19] - Accounts receivables decreased by $245,439, compared to a decrease of $259,388 in the previous year[19] Financing Activities - The company reported a net cash used in financing activities of $1,292,087, slightly higher than $1,266,642 in the prior year[19] - The company recognized a non-cash common stock issuance to pay accrued liabilities amounting to $100,000, compared to $69,985 in the previous year[19] Share Redemption - The company redeemed 70,093 preferred shares for a total of $749,995 during the quarter[7]

Revenue and Income - Revenue for the three months ended September 30, 2025, was $5,971,467, representing a 10% increase from $5,441,142 in the same period of 2024[83] - Net other income increased by 12% to $375,655 for the three months ended September 30, 2025, compared to $335,094 in 2024[90] Expenses - Cost of services and product support decreased by 1% to $854,152 for the three months ended September 30, 2025, compared to $859,219 in 2024[85] - Sales and marketing expenses increased by 5% to $1,607,469 for the three months ended September 30, 2025, up from $1,529,100 in 2024[86] - General and administrative expenses rose by 6% to $1,372,227 for the three months ended September 30, 2025, compared to $1,292,551 in 2024[88] - Depreciation and amortization expense decreased by 13% to $243,746 for the three months ended September 30, 2025, down from $280,211 in 2024[89] - Preferred dividends decreased to $58,817 for the three months ended September 30, 2025, down 45% from $107,882 in the same period of 2024[91] Cash Flow and Liquidity - Cash and cash equivalents increased by 1% to $28,794,806 as of September 30, 2025, compared to $28,568,805 as of June 30, 2025, primarily due to higher revenue and cash receipts from customers[94][95] - Net cash provided by operating activities was $1,538,447 for the three months ended September 30, 2025, an 18% decrease from $1,868,900 in the same period of 2024[96] - Net cash used in investing activities was $(20,359) for the three months ended September 30, 2025, compared to cash provided of $34,086 in the same period of 2024, representing a 160% variance[97] - Net cash used in financing activities totaled $1,292,087 for the three months ended September 30, 2025, a 2% increase from $1,266,642 in the same period of 2024[99] - Current assets increased to $34,114,277 as of September 30, 2025, up 1% from $33,685,800 as of June 30, 2025[101] - Current liabilities decreased by 6% to $5,214,500 as of September 30, 2025, compared to $5,531,118 as of June 30, 2025[102] - The company had zero bank debt as of September 30, 2025, following the termination of its credit facility in March 2024[104][105] Dividends and Stock - The company declared a quarterly cash dividend of $0.02 per share, representing an annual yield of approximately 0.54%[76] - The quarterly cash dividend was increased by 10% to $0.01815 per share, effective for shareholders of record on December 31, 2024[105] - The company plans to redeem all Series B and B-1 Preferred Stock on or before December 2026, with $2.85 million of Preferred Stock remaining to be redeemed[91][106] Compliance and Regulatory - The compliance deadline for FSMA 204 has been extended to July 20, 2028, impacting nearly every company in the food supply chain[80] - The company focuses on recurring subscription revenue, with an emphasis on compliance, supply chain, and traceability services[84] Investments and Financial Instruments - The company’s available-for-sale debt investments include U.S. government securities, corporate debt, and mortgage-backed securities, recorded at fair value[120] - Unrealized gains and losses on available-for-sale debt investments are included in accumulated other comprehensive income (AOCI)[120] - The company assesses available-for-sale debt securities for temporary or permanent credit losses, considering factors such as fair value compared to amortized cost and changes in security ratings[121] - The company does not engage in hedging transactions to mitigate foreign currency exchange rate risks, as its operations are primarily conducted in the United States[122] - The company’s financial results are not significantly affected by foreign market conditions due to its principal operations being in the U.S.[122] Interest Rate and Lease Obligations - The effective annual percentage rate (APR) for capital leases is 4.55%, with total lease obligations depreciated on a three-year straight-line basis, costing less than $400,000[124] - The company’s exposure to interest rate changes related to borrowing is limited, and near-term changes in interest rates are not expected to materially affect financial position or cash flows[124] - Investments in fixed-rate and floating-rate instruments carry interest rate risk, potentially affecting future interest income[123] Traceability Network - The ReposiTrak Traceability Network is positioned to provide end-to-end traceability, connecting thousands of supplier locations to food wholesaler and retail locations[81] Accounting Standards - The company adopted new accounting standards effective July 1, 2019, with no material changes to revenue recognition practices compared to previous periods[117]

[Executive Summary & Business Update](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Update) ReposiTrak achieved significant revenue and net income growth in FY2025, driven by a strategic shift to a supplier-centric model and efficient operations [Fiscal Year 2025 & Q4 Highlights](index=1&type=section&id=Fiscal%20Year%202025%20%26%20Q4%20Highlights) ReposiTrak reported an 11% increase in full-year revenue to $22.6 million and a 17% increase in net income to $7.0 million for fiscal year 2025. Earnings per share grew by 21%. The company ended the fiscal year with a strong cash position of $28.6 million and no debt. Fourth-quarter results also showed an 11% revenue increase and 14% net income growth Full-Year Fiscal 2025 Financial Highlights: | Metric | FY2025 (Millions) | FY2024 (Millions) | Change (%) | | :-------------------------------- | :---------------- | :---------------- | :--------- | | Total Revenue | $22.6 | $20.5 | 11% | | Recurring Revenue (% of total) | ~99% | N/A | N/A | | Operating Expense | $16.4 | $15.4 | 6% | | Operating Income | $6.2 | $5.0 | 24% | | GAAP Net Income | $7.0 | $6.0 | 17% | | Net Income to Common Shareholders | $6.6 | $5.4 | 22% | | Basic EPS | $0.36 | $0.30 | 20% | | Diluted EPS | $0.35 | $0.29 | 21% | | Cash from Operations | $8.4 | $6.9 | 21% | | Cash at Year-End | $28.6 | N/A | N/A | | Bank Debt | $0 | N/A | N/A | Fourth Fiscal Quarter Financial Highlights: | Metric | Q4 FY2025 (Millions) | Q4 FY2024 (Millions) | Change (%) | | :-------------------------------- | :------------------- | :------------------- | :--------- | | Total Revenue | $5.8 | $5.2 | 11% | | Recurring Revenue (% of total) | ~99% | N/A | N/A | | Operating Expense | $4.2 | $3.9 | 8% | | Operating Income | $1.6 | $1.3 | 20% | | GAAP Net Income | $1.8 | $1.6 | 14% | | Net Income to Common Shareholders | $1.7 | $1.5 | 18% | | EPS | $0.09 | $0.08 | 12.5% | [CEO Commentary & Strategic Direction](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Direction) CEO Randall K. Fields highlighted a strategic shift from a hub-centric to a supplier-centric traceability model, which has increased engagement and expanded the addressable market. Investments in infrastructure and automation are improving efficiency, enabling growth without increasing headcount, and enhancing cross-selling opportunities. The company aims for 10-20% average annualized revenue growth and significantly greater profitability growth - ReposiTrak shifted from a hub-centric to a supplier-centric traceability model, solving problems for individual suppliers, which has increased engagement and expanded the addressable market for compliance and supply chain solutions[5](index=5&type=chunk) - The company invested in infrastructure to expand automation and accelerate customer onboarding, leading to increased revenue per employee and a greater number of deals without expanding headcount[5](index=5&type=chunk) - ReposiTrak maintains a goal of **10-20% average annualized revenue growth** and significantly greater growth in profitability, leveraging its efficient operational model and strong balance sheet[7](index=7&type=chunk) [Company Overview](index=3&type=section&id=Company%20Overview) ReposiTrak provides cloud-based solutions for risk management, compliance, and supply chain optimization to retailers, suppliers, and wholesalers [About ReposiTrak](index=3&type=section&id=About%20ReposiTrak) ReposiTrak (formerly Park City Group) provides cloud-based solutions for retailers, suppliers, and wholesalers to manage risk, ensure regulatory compliance, enhance operational controls, and increase sales. Its product families include food traceability, compliance and risk management, and supply chain solutions - ReposiTrak offers a robust solution suite to help retailers, suppliers, and wholesalers reduce risk, comply with regulations, enhance operational controls, and increase sales[15](index=15&type=chunk) - The company's integrated, cloud-based applications are categorized into three product families: food traceability, compliance and risk management, and supply chain solutions[15](index=15&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) This section presents a comprehensive analysis of ReposiTrak's financial results for fiscal year 2025, including income statements, balance sheets, and cash flow statements [Full-Year Fiscal 2025 Financial Results](index=2&type=section&id=Full-Year%20Fiscal%202025%20Financial%20Results) For the full fiscal year ended June 30, 2025, ReposiTrak reported an 11% increase in total revenue to $22.6 million. Operating expenses rose by 6% to $16.4 million, while GAAP net income increased by 17% to $7.0 million. Net income attributable to common shareholders grew by 22% to $6.6 million, resulting in diluted EPS of $0.35 Full-Year Financial Results (YoY Comparison): | Metric | FY2025 (Millions) | FY2024 (Millions) | Change (%) | | :-------------------------------- | :---------------- | :---------------- | :--------- | | Total Revenue | $22.6 | $20.5 | 11% | | Total Operating Expense | $16.4 | $15.4 | 6% | | GAAP Net Income | $7.0 | $6.0 | 17% | | Net Income to Common Shareholders | $6.6 | $5.4 | 22% | | Diluted EPS | $0.35 | $0.29 | 21% | [Fourth Fiscal Quarter Financial Results](index=2&type=section&id=Fourth%20Fiscal%20Quarter%20Financial%20Results) In the fourth fiscal quarter ended June 30, 2025, total revenue increased 11% to $5.8 million. Total operating expense grew 8% to $4.2 million, with SG&A expense up 7% to $2.9 million. GAAP net income reached $1.8 million, and net income to common shareholders increased 18% to $1.7 million, translating to $0.09 per diluted share Fourth Fiscal Quarter Financial Results (YoY Comparison): | Metric | Q4 FY2025 (Millions) | Q4 FY2024 (Millions) | Change (%) | | :-------------------------------- | :------------------- | :------------------- | :--------- | | Total Revenue | $5.8 | $5.2 | 11% | | Total Operating Expense | $4.2 | $3.9 | 8% | | SG&A Expense | $2.9 | $2.7 | 7% | | GAAP Net Income | $1.8 | $1.6 | 14% | | Net Income to Common Shareholders | $1.7 | $1.5 | 18% | | Diluted EPS | $0.09 | $0.08 | 12.5% | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, ReposiTrak maintained a strong balance sheet with $28.6 million in cash and cash equivalents and no bank debt. Total assets increased to $55.3 million from $51.6 million in the prior year, while total liabilities also increased to $5.8 million from $4.7 million. Total stockholders' equity grew to $49.5 million Consolidated Balance Sheet Highlights: | Metric | June 30, 2025 (Dollars) | June 30, 2024 (Dollars) | | :-------------------------------- | :---------------------- | :---------------------- | | Cash | $28,568,805 | $25,153,862 | | Total Current Assets | $33,685,800 | $29,300,167 | | Total Assets | $55,329,047 | $51,596,732 | | Total Current Liabilities | $5,531,118 | $4,543,142 | | Total Liabilities | $5,809,866 | $4,742,114 | | Total Stockholders' Equity | $49,519,181 | $46,854,618 | - The company reported **$28.6 million** in cash and cash equivalents at June 30, 2025, an increase from **$25.2 million** at June 30, 2024, and had no bank debt[13](index=13&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations show a robust increase in revenue and profitability for fiscal year 2025. Revenue grew to $22.6 million, leading to an income from operations of $6.2 million, up 24%. Net income reached $7.0 million, and diluted EPS was $0.35, reflecting strong operational efficiency and financial performance Consolidated Statements of Operations (FY2025 vs. FY2024): | Metric | FY2025 (Dollars) | FY2024 (Dollars) | | :-------------------------------- | :--------------- | :--------------- | | Revenue | $22,606,066 | $20,453,320 | | Total Operating Expense | $16,378,923 | $15,429,089 | | Income from Operations | $6,227,143 | $5,024,231 | | Net Income | $6,978,127 | $5,958,290 | | Net Income Applicable to Common Shareholders | $6,617,821 | $5,408,645 | | Basic Earnings Per Share | $0.36 | $0.30 | | Diluted Earnings Per Share | $0.35 | $0.29 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash flows from operating activities significantly increased by 21% to $8.4 million in fiscal 2025, demonstrating strong operational cash generation. Investing activities resulted in a net cash inflow of $169, a notable improvement from a net outflow in the prior year. Financing activities used $5.0 million, primarily due to preferred share redemptions and dividends paid, leading to a net increase in cash and cash equivalents of $3.4 million Consolidated Statements of Cash Flows (FY2025 vs. FY22024): | Cash Flow Activity | FY2025 (Dollars) | FY2024 (Dollars) | | :-------------------------------- | :--------------- | :--------------- | | Net Cash Provided by Operating Activities | $8,420,132 | $6,964,401 | | Net Cash (Used in) Provided by Investing Activities | $169 | $(100,707) | | Net Cash Used in Financing Activities | $(5,005,358) | $(5,700,711) | | Net (Decrease) Increase in Cash and Cash Equivalents | $3,414,943 | $1,162,983 | | Cash and Cash Equivalents at End of Period | $28,568,805 | $25,153,862 | - Cash from operations increased **21% to $8.4 million** from $6.9 million last year, reflecting efficient operational performance[6](index=6&type=chunk) [Capital Allocation & Shareholder Returns](index=2&type=section&id=Capital%20Allocation%20%26%20Shareholder%20Returns) ReposiTrak demonstrates its commitment to shareholder value through preferred share redemptions, common share buybacks, and consistent dividend increases [Preferred Share Redemption](index=2&type=section&id=Preferred%20Share%20Redemption) ReposiTrak continued its program of returning capital to shareholders by redeeming 70,093 preferred shares for $749,995 in Q4 fiscal 2025. Cumulatively, the company has redeemed 501,679 preferred shares totaling $5.4 million, with an anticipated full redemption of remaining preferred shares by December 2026 - In Q4 FY2025, ReposiTrak redeemed **70,093 preferred shares for $749,995**. For the full fiscal year, **280,372 preferred shares were redeemed for $3 million**[6](index=6&type=chunk)[10](index=10&type=chunk) - Since inception, the company has redeemed **501,679 preferred shares for a total of $5.4 million**, with **$3.6 million** remaining to be redeemed by December 2026[10](index=10&type=chunk) [Common Share Buyback](index=2&type=section&id=Common%20Share%20Buyback) During fiscal 2025, ReposiTrak repurchased 8,681 common shares for approximately $200,033 at an average price of $23.13 per share. The company still has approximately $8 million remaining under its $21 million common share buyback authorization - During fiscal 2025, the Company repurchased **8,681 common shares for a total of $200,033**, at an average of **$23.13 per share**[11](index=11&type=chunk) - Approximately **$8 million** remains of the **$21 million** total common share buyback authorization[11](index=11&type=chunk) [Dividends](index=2&type=section&id=Dividends) The Board of Directors declared a quarterly dividend of $0.02 per share ($0.08 annually), payable around November 14, 2025. This marks the third 10% increase in ReposiTrak's dividend since its establishment, demonstrating a commitment to returning capital to shareholders - On September 19, 2025, the board declared a quarterly dividend of **$0.02 per quarter ($0.08 per share annually)**, representing the **third 10% increase** since the dividend was established[6](index=6&type=chunk)[12](index=12&type=chunk) - The cash dividends will be paid to shareholders of record on or about November 14, 2025, for those on record as of September 30, 2025[6](index=6&type=chunk)[12](index=12&type=chunk) [Corporate Information & Disclosures](index=2&type=section&id=Corporate%20Information%20%26%20Disclosures) This section provides essential corporate communications, forward-looking statements, and investor contact details [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) ReposiTrak hosted a conference call on September 29, 2025, at 4:15 p.m. ET to discuss the financial results. Details for live participation and replay access were provided, including dial-in numbers and a webcast link via the company's investor relations website - A conference call was hosted on Monday, September 29, 2025, at 4:15 p.m. ET to discuss the company's results, with a webcast available on www.parkcitygroup.com[14](index=14&type=chunk)[15](index=15&type=chunk) Conference Call Access Information: | Type | Detail | | :---------------- | :-------------------------------- | | Date | Monday, September 29, 2025 | | Time | 4:15 p.m. ET (1:15 p.m. PT) | | Toll-Free Dial-In | 1-877-407-9716 | | International Dial-In | 1-201-493-6779 | | Conference ID | 13755695 | | Replay Toll-Free | 1-844-512-2921 | | Replay International | 1-412-317-6671 | | Replay Expiry | Wednesday, October 29, 2025, 11:59 PM ET | [Forward-Looking Statement](index=3&type=section&id=Forward-Looking%20Statement) The document includes a standard forward-looking statement disclaimer, cautioning readers that any non-historical statements are subject to risks and uncertainties. It advises against undue reliance on these statements and refers to SEC filings for a discussion of risk factors - Statements not historical facts are forward-looking, identified by words like 'anticipate,' 'believe,' 'estimate,' and 'expect,' and are subject to change and material differences from final reported results[16](index=16&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of their making dates, and should refer to SEC filings for risk factors[16](index=16&type=chunk) [Investor Relations Contact](index=3&type=section&id=Investor%20Relations%20Contact) Contact information for investor relations is provided for inquiries, including the CFO's email and details for FNK IR - Investor relations inquiries can be directed to John Merrill, CFO, via investor-relations@repositrak.com, or to Rob Fink of FNK IR at 646.809.4048 or rob@fnkir.com[17](index=17&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2025 or 5282 South Commerce Drive, Suite D292 Murray, Utah 84107 (435) 645-2000 (Address of principal executive offices) (Registrant's telephone number, including area code) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 001-34941 (Commission fil ...

Core Insights - Barry Silbert, a prominent figure in the crypto industry, is shifting focus from Bitcoin to the convergence of AI and crypto, particularly through a project called Bittensor [1][2] - Silbert has founded a new company, Yuma, dedicated to the Bittensor protocol and its cryptocurrency TAO, expressing that this is the most exciting development since Bitcoin [3][5] - Bittensor aims to create a decentralized marketplace for AI, allowing participants to lend their computing power, thus challenging the dominance of centralized players like OpenAI and Google [6] Company Developments - Silbert's Digital Currency Group has a history of launching successful crypto ventures, including CoinDesk and Grayscale, and has faced challenges during the "crypto winter" following the FTX collapse [4][5] - The cryptocurrency TAO, associated with Bittensor, reached an all-time high of $757 in March 2024, currently trading at nearly $360 [7] Industry Trends - The integration of AI and crypto is seen as the next significant wave in the tech industry, with Bittensor positioned to create a decentralized network for AI applications [1][6] - Bittensor is compared to the internet's world wide web of information, aiming to establish a world wide web of intelligence [7]

Group 1 - Adobe reported fiscal third-quarter results that exceeded analysts' estimates, with revenue increasing by 11% to $5.99 billion compared to $5.41 billion a year earlier [1][5] - Net income rose to $1.77 billion, or $4.18 per share, up from $1.68 billion, or $3.76 per share, a year ago [1] - For the fourth quarter, Adobe expects earnings per share to be between $5.35 and $5.40, slightly above the average analyst estimate of $5.34 [2] Group 2 - Adobe's guidance for fourth-quarter revenue is projected to be between $6.08 billion and $6.13 billion, aligning with analysts' expectations of $6.08 billion [2] - The company anticipates annualized revenue growth of 11.3% in its digital media business for the fiscal year, an increase from the previous forecast of 11% [3] - Digital media revenue for the fourth quarter is expected to be between $4.56 billion and $4.51 billion, surpassing the average estimate of $4.51 billion [3] Group 3 - As of the latest close, Adobe's stock has declined by 21% this year, underperforming compared to tech peers and the broader Nasdaq, which has risen by 14% [3]

[Executive Summary](index=1&type=section&id=Executive%20Summary) ReposiTrak reported strong FQ3 2025 financial results with significant revenue and net income growth, driven by cross-selling and network expansion [FQ3 2025 Performance Highlights](index=1&type=section&id=Third%20Fiscal%20Quarter%20Financial%20Highlights) ReposiTrak achieved strong FQ3 2025 financial results, reporting significant revenue and net income growth across all business lines FQ3 2025 Financial Highlights | Metric | FQ3 2025 | FQ3 2024 | Change (%) | | :-------------------------------- | :--------- | :--------- | :--------- | | Total Revenue ($) | $5.9 million | $5.1 million | +16.3% | | GAAP Net Income ($) | $2.0 million | $1.6 million | +26.8% | | Net Income to Common Shareholders ($) | $1.9 million | $1.4 million | +32.8% | | Diluted EPS ($) | $0.10 | $0.08 | +25.0% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Randall K. Fields emphasized growth across all business lines, driven by accelerated cross-selling, successful supplier onboarding, and an accelerating network effect - Growth was delivered across all business lines: traceability, compliance, and supply chain, driven by accelerated cross-selling[4](index=4&type=chunk) - Onboarding of traceability customers shifted from primarily retailers to mostly suppliers, expanding the total addressable market (TAM)[4](index=4&type=chunk) - Automation enhancements led to over **70%** of new traceability suppliers joining the ReposiTrak Traceability Network (RTN) using an automated wizard with little or no human intervention[4](index=4&type=chunk) - The network effect is accelerating, with larger suppliers bringing smaller ingredient providers into the network, driving increased cross-selling and accelerating profitability and cash generation[4](index=4&type=chunk) [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section provides a comprehensive overview of ReposiTrak's financial performance for FQ3 2025 and year-to-date, highlighting key growth metrics [Third Fiscal Quarter (FQ3 2025) Results](index=1&type=section&id=Third%20Fiscal%20Quarter%20Financial%20Results) ReposiTrak achieved double-digit growth in FQ3 2025, with revenue up 16.3% and GAAP net income up 26.8%, driven by strategic investments and cost management FQ3 2025 Financial Results | Metric | FQ3 2025 | FQ3 2024 | Change (%) | | :-------------------------------- | :--------- | :--------- | :--------- | | Total Revenue ($) | $5.9 million | $5.1 million | +16.3% | | Total Operating Expense ($) | $4.1 million | $3.8 million | +7.4% | | Operating Income ($) | $1.8 million | $1.3 million | +43% | | GAAP Net Income ($) | $2.0 million | $1.6 million | +26.8% | | Net Income to Common Shareholders ($) | $1.9 million | $1.4 million | +32.8% | | Diluted EPS ($) | $0.10 | $0.08 | +25.0% | - **98%** of the revenue in FQ3 2025 was recurring[6](index=6&type=chunk) - The Company finished the quarter with over **$28.1 million** in cash and no bank debt[6](index=6&type=chunk) [Year-to-Date (YTD) Results](index=2&type=section&id=Year-to-Date%20Financial%20Results) For the first nine months of fiscal year 2025, total revenue grew by 10.3% and GAAP net income increased by 18.3%, demonstrating consistent performance YTD FQ3 Financial Results | Metric | YTD FQ3 2025 | YTD FQ3 2024 | Change (%) | | :-------------------------------- | :----------- | :----------- | :----------- | | Total Revenue ($) | $16.9 million | $15.3 million | +10.3% | | Total Operating Expense ($) | $12.2 million | $11.6 million | +5.5% | | GAAP Net Income ($) | $5.2 million | $4.4 million | +18.3% | | Net Income to Common Shareholders ($) | $4.9 million | $4.0 million | +23.8% | | Diluted EPS ($) | $0.26 | $0.21 | +23.8% | [Capital Management and Financial Position](index=2&type=section&id=Capital%20Management%20and%20Financial%20Position) This section details the company's capital management strategies, including share redemptions and dividends, alongside its strong balance sheet position [Return of Capital](index=2&type=section&id=Return%20of%20Capital) The company continued its capital return strategy through preferred share redemptions and quarterly cash dividends, supported by a significant share buyback authorization Preferred Share Redemption | Preferred Share Redemption | FQ3 2025 | YTD FQ3 2025 | Total to Date | Remaining | | :------------------------- | :--------- | :----------- | :------------ | :-------- | | Shares Redeemed | 70,093 | 431,586 | 431,586 | N/A | | Total Value ($) | $749,995 | $4.6 million | $4.6 million | $4.3 million | - The Company anticipates redeeming all of its preferred shares issued and outstanding within **three years**[8](index=8&type=chunk) - ReposiTrak has approximately **$7.9 million** remaining of the **$21 million** total common share buyback authorization[8](index=8&type=chunk) Dividend Details | Dividend Details | Amount | Frequency | Record Date | Payment Date | | :--------------- | :----- | :-------- | :---------- | :----------- | | Quarterly Dividend ($ per share) | $0.01815 | Quarterly | March 31, 2025 | May 15, 2025 | | Annualized Dividend ($ per share) | $0.0726 | Annually | N/A | N/A | [Balance Sheet Overview](index=2&type=section&id=Balance%20Sheet) ReposiTrak maintained a strong liquidity position with an 11.9% increase in cash and cash equivalents and no bank debt Balance Sheet Metrics | Metric | March 31, 2025 | June 30, 2024 | Change (%) | | :-------------------- | :------------- | :------------ | :--------- | | Cash and Cash Equivalents ($) | $28.1 million | $25.2 million | +11.9% | - The Company carries no bank debt[10](index=10&type=chunk) [Corporate Information and Disclosures](index=2&type=section&id=Corporate%20Information%20and%20Disclosures) This section provides essential corporate information, including conference call details, company overview, forward-looking statements, and investor relations contacts [Conference Call Details](index=2&type=section&id=Conference%20Call) Details for the FQ3 2025 earnings conference call and webcast, including dial-in and replay information, were provided for investors - A conference call was scheduled for Thursday, May 15, 2025, at **4:15 p.m. ET** to discuss the Company's results[11](index=11&type=chunk)[12](index=12&type=chunk) - The conference call will also be webcast and available via the investor relations section of the Company's website, www.repositrak.com[11](index=11&type=chunk) [About ReposiTrak](index=2&type=section&id=About%20ReposiTrak) ReposiTrak is a SaaS platform offering food traceability, compliance, risk management, and supply chain solutions to various industry participants - ReposiTrak (NYSE: TRAK) provides retailers, suppliers, food manufacturers, and wholesalers with a robust solution suite to help reduce risk, remain in compliance with regulatory requirements, enhance operational controls, and increase sales[12](index=12&type=chunk) - The solution suite consists of three product families: food traceability, compliance and risk management, and supply chain solutions, all integrated and cloud-based[12](index=12&type=chunk) [Forward-Looking Statement](index=3&type=section&id=Forward-Looking%20Statement) The document contains forward-looking statements subject to inherent risks and uncertainties, cautioning readers against undue reliance on projections - Any statements not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995, identified by words such as 'anticipate,' 'believe,' 'estimate,' 'expect,' etc[13](index=13&type=chunk) - Projections of future results should not be construed as a guarantee and are subject to change, potentially differing materially from final reported results[13](index=13&type=chunk) - Readers are cautioned not to place undue reliance on these forward-looking statements, and risks and uncertainties are discussed in ReposiTrak's Form 10-K and 10-Q reports[13](index=13&type=chunk) [Investor Relations Contact](index=3&type=section&id=Investor%20Relations%20Contact) Contact information for investor relations inquiries regarding ReposiTrak was provided - Investor relations contact: John Merrill, CFO (Investor-relations@repositrak.com) or Rob Fink of FNK IR (**646.809.4048**, rob@fnkir.com)[14](index=14&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including balance sheets, statements of operations, and cash flows [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets%20(Unaudited)) The unaudited consolidated balance sheets present the company's financial position as of March 31, 2025, and June 30, 2024 Consolidated Condensed Balance Sheets (Unaudited) | Balance Sheet Item | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------- | :------------ | | Cash ($) | $28,134,321 | $25,153,862 | | Total Current Assets ($) | $32,752,375 | $29,300,167 | | Total Assets ($) | $54,834,436 | $51,596,732 | | Total Current Liabilities ($) | $5,434,176 | $4,543,142 | | Total Liabilities ($) | $5,913,370 | $4,742,114 | | Total Stockholders' Equity ($) | $48,921,066 | $46,854,618 | [Consolidated Condensed Statements of Operations and Comprehensive Income](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Unaudited)) The unaudited consolidated statements of operations detail financial performance for the three and nine months ended March 31, 2025, compared to the prior year Consolidated Condensed Statements of Operations and Comprehensive Income (Unaudited) | Income Statement Item | 3 Months Ended Mar 31, 2025 | 3 Months Ended Mar 31, 2024 | 9 Months Ended Mar 31, 2025 | 9 Months Ended Mar 31, 2024 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Revenue ($) | $5,913,732 | $5,084,866 | $16,845,782 | $15,270,729 | | Total Operating Expense ($) | $4,104,879 | $3,822,523 | $12,204,817 | $11,567,526 | | Income from Operations ($) | $1,808,853 | $1,262,343 | $4,640,965 | $3,703,203 | | Net Income ($) | $1,965,788 | $1,550,427 | $5,182,023 | $4,380,124 | | Diluted Income per Share ($) | $0.10 | $0.08 | $0.26 | $0.21 | [Consolidated Condensed Statements of Cash Flows](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows%20(Unaudited)) The unaudited consolidated statements of cash flows detail cash generation and usage from operating, investing, and financing activities Consolidated Condensed Statements of Cash Flows (Unaudited) | Cash Flow Item (9 Months Ended Mar 31) | 2025 | 2024 | | :------------------------------------- | :----------- | :----------- | | Net cash provided by operating activities ($) | $6,763,371 | $4,910,741 | | Net cash provided by (used in) investing activities ($) | $6,315 | $(48,538) | | Net cash used in financing activities ($) | $(3,789,227) | $(4,400,402) | | Net increase in cash and cash equivalents ($) | $2,980,459 | $461,801 | | Cash and cash equivalents at end of period ($) | $28,134,321 | $24,452,680 |

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated condensed financial statements of ReposiTrak, Inc. for the periods ended March 31, 2025, and June 30, 2024 (balance sheet), and for the three and nine months ended March 31, 2025 and 2024 (statements of operations, cash flows, and stockholders' equity). It also includes detailed notes on the company's operations, significant accounting policies, equity changes, related party transactions, recent accounting pronouncements, and subsequent events [Consolidated Condensed Balance Sheets](index=3&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity as of March 31, 2025, and June 30, 2024 | Metric | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------- | :------------ | | Cash | $28,134,321 | $25,153,862 | | Total Current Assets | $32,752,375 | $29,300,167 | | Total Assets | $54,834,436 | $51,596,732 | | Total Current Liabilities | $5,434,176 | $4,543,142 | | Total Liabilities | $5,913,370 | $4,742,114 | | Total Stockholders' Equity | $48,921,066 | $46,854,618 | - Cash increased by **$2,980,459 (11.8%)** from June 30, 2024, to March 31, 2025[9](index=9&type=chunk) - Total assets grew by **$3,237,704 (6.3%)** over the nine-month period[9](index=9&type=chunk) - Total liabilities increased by **$1,171,256 (24.7%)** primarily due to an increase in contract liability (deferred revenue) and long-term notes payable[9](index=9&type=chunk) [Consolidated Condensed Statements of Operations and Comprehensive Income](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations%20and%20Comprehensive%20Income) This section outlines the company's financial performance, presenting revenue, net income, and earnings per share for the three and nine months ended March 31, 2025 and 2024 | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Nine Months Ended March 31, 2025 | Nine Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------- | :------------------------------- | | Revenue | $5,913,732 | $5,084,866 | $16,845,782 | $15,270,729 | | Net income | $1,965,788 | $1,550,427 | $5,182,023 | $4,380,124 | | Net income applicable to common shareholders | $1,880,063 | $1,416,082 | $4,892,800 | $3,952,557 | | Basic income per share | $0.10 | $0.08 | $0.27 | $0.22 | | Diluted income per share | $0.10 | $0.08 | $0.26 | $0.21 | - Revenue increased by **16%** for the three months ended March 31, 2025, and **10%** for the nine months ended March 31, 2025, compared to the prior year periods[11](index=11&type=chunk) - Net income applicable to common shareholders increased by **32.8%** for the three months and **23.8%** for the nine months ended March 31, 2025, year-over-year[11](index=11&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) This section details the company's cash inflows and outflows from operating, investing, and financing activities for the nine months ended March 31, 2025 and 2024 | Cash Flow Activity | Nine Months Ended March 31, 2025 | Nine Months Ended March 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $6,763,371 | $4,910,741 | | Net cash provided by (used in) investing activities | $6,315 | $(48,538) | | Net cash used in financing activities | $(3,789,227) | $(4,400,402) | | Net increase in cash and cash equivalents | $2,980,459 | $461,801 | | Cash and cash equivalents at end of period | $28,134,321 | $24,452,680 | - Net cash from operating activities increased by **37.7%** year-over-year, primarily due to increased deferred revenue and collections from higher subscription revenues[14](index=14&type=chunk) - Investing activities shifted from a net cash outflow of **$48,538** in 2024 to a net cash inflow of **$6,315** in 2025, driven by the sale of marketable securities[14](index=14&type=chunk) - Net cash used in financing activities decreased by **13.9%** due to a decrease in common stock buybacks, partially offset by increased preferred stock redemptions[14](index=14&type=chunk) [Consolidated Condensed Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Stockholders'%20Equity) This section presents changes in the company's equity components, including preferred and common stock, additional paid-in capital, and accumulated deficit, from June 30, 2024, to March 31, 2025 | Equity Component | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------- | :------------ | | Series B Preferred Stock (Shares) | 406,191 | 616,470 | | Common Stock (Shares) | 18,276,381 | 18,234,893 | | Additional Paid-In Capital | $62,927,551 | $64,655,902 | | Accumulated Deficit | $(14,181,033) | $(17,962,410) | | Total Stockholders' Equity | $48,921,066 | $46,854,618 | - Total stockholders' equity increased by **$2,066,448** from June 30, 2024, to March 31, 2025, primarily due to net income offsetting preferred stock redemptions and dividends[9](index=9&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) - The company redeemed **210,279** shares of Series B Preferred Stock during the nine months ended March 31, 2025, as part of a three-year redemption plan[15](index=15&type=chunk)[16](index=16&type=chunk)[56](index=56&type=chunk) - Accumulated deficit decreased significantly from **$(17,962,410)** to **$(14,181,033)**, reflecting positive net income contributions[9](index=9&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) [Notes to Consolidated Condensed Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated condensed financial statements [NOTE 1. OVERVIEW OF OPERATIONS AND BASIS FOR PRESENTATION](index=10&type=section&id=NOTE%201.%20OVERVIEW%20OF%20OPERATIONS%20AND%20BASIS%20FOR%20PRESENTATION) This note describes ReposiTrak, Inc.'s business model as a SaaS provider for B2B e-commerce, compliance, and supply chain management, including its corporate name change - ReposiTrak, Inc. is a Software-as-a-Service (SaaS) company operating a B2B e-commerce, compliance & traceability, and supply chain management platform[18](index=18&type=chunk) - The company's services are grouped into three application suites: ReposiTrak Compliance Management, ReposiTrak Traceability Network (RTN), and ReposiTrak Supply Chain Solutions[19](index=19&type=chunk)[24](index=24&type=chunk) - ReposiTrak operates on a 'hub and spoke' business model, where retailers/wholesalers ('Hubs') require their suppliers ('Spokes') to use the company's services[21](index=21&type=chunk) - The company changed its corporate name from Park City Group, Inc. to ReposiTrak, Inc. on December 21, 2023[22](index=22&type=chunk) [NOTE 2. SIGNIFICANT ACCOUNTING POLICIES](index=11&type=section&id=NOTE%202.%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the key accounting principles and methods used in preparing the financial statements, including revenue recognition and asset valuations - The financial statements are prepared in accordance with U.S