Park City Group, Inc. (PCYG) Q3 2021 Earnings Conference Call May 17, 2021 4:15 PM ET Company Participants Jeff Stanlis - FNK IR Randy Fields - CEO and Chairman John Merrill - CFO Conference Call Participants Tom Forte - D.A. Davidson Operator Greetings, and welcome to the Park City Group Fiscal Third Quarter 2021 Earnings Call. All participants will be in listen-only mode [Operator Instructions]. Please note this event is being recorded. It is now my pleasure to introduce your host, Jeff Stanlis with FNK ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 2021 ☐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 001-34941 PARK CITY GROUP, INC. (Exact name of small business issuer as specified in its charter) (State or other jurisdicti ...

Park City Group, Inc. (PCYG) Q2 2021 Earnings Conference Call February 16, 2021 4:15 PM ET Company Participants Rob Fink – Managing Partner, FNK IR John Merrill – Group Chief Financial Officer Randy Fields – Chairman and Chief Executive Officer Conference Call Participants Ananda Baruah – Loop Capital Tevis Robinson – D.A. Davidson Operator Greetings, and welcome to the Park City Group Fiscal Second Quarter 2021 Earnings Call. At this time all participants are in a listen-only mode. A question-and-answer se ...

Revenue Performance - Revenue for the three months ended December 31, 2020, was $5,174,204, representing a 7% increase from $4,837,332 in the same period of 2019, primarily driven by growth in MarketPlace and software subscription revenue[82] - Revenue for the six months ended December 31, 2020, was $10,399,606, an 8% increase from $9,637,416 in 2019, driven by growth in subscription and Marketplace revenue[94] Cost and Expenses - Cost of services and product support increased by 47% to $2,091,588 for the three months ended December 31, 2020, compared to $1,425,309 in 2019, mainly due to higher expenses associated with MarketPlace[85] - Cost of services and product support for the six months ended December 31, 2020, was $4,072,545, a 25% increase from $3,253,423 in 2019, mainly due to higher MarketPlace expenses and increased hardware/software costs[95] - Sales and marketing expenses decreased by 17% to $1,205,295 for the three months ended December 31, 2020, down from $1,446,517 in 2019, attributed to reduced contractor fees and travel expenses due to COVID-19[87] - Sales and marketing expense decreased by 13% to $2,488,336 for the six months ended December 31, 2020, compared to $2,861,380 in 2019[96] - General and administrative expenses rose by 10% to $1,231,139 for the three months ended December 31, 2020, compared to $1,114,251 in 2019, primarily due to increased bad debt expense and legal fees[89] - General and administrative expense slightly decreased by 1% to $2,313,064 for the six months ended December 31, 2020, from $2,336,462 in 2019[97] - Depreciation and amortization expense increased by 23% to $510,097 for the six months ended December 31, 2020, compared to $416,177 in 2019[98] Other Income - Net other income for the three months ended December 31, 2020, was $1,250,774, a significant increase of 2,405% from $49,940 in the same period of 2019, due to a gain on debt extinguishment and higher interest income[92] - Net other income surged by 969% to $1,198,307 for the six months ended December 31, 2020, from $112,073 in 2019[99] Cash Flow and Working Capital - Cash and cash equivalents increased by 17% to $23,894,653 as of December 31, 2020, compared to $20,345,330 as of June 30, 2020[102] - Net cash provided by operating activities rose by 41% to $3,756,014 for the six months ended December 31, 2020, from $2,671,585 in 2019[104] - Cash used in investing activities decreased by 82% to $103,218 for the six months ended December 31, 2020, compared to $581,750 in 2019[105] - Cash used in financing activities significantly decreased by 94% to $103,473 for the six months ended December 31, 2020, from $1,730,483 in 2019[107] - Working capital increased by $1,667,283 to $19,903,947 as of December 31, 2020, compared to $18,236,664 at June 30, 2020[108] - Current assets rose by 9% to $29,600,792 as of December 31, 2020, from $27,148,911 as of June 30, 2020[109] Strategic Initiatives - The company launched a pilot program in December 2020 to address emergency grant management requests, aimed at improving tracking and compliance for federal disaster grants[78] - The FoodSourceUSA platform was introduced in July 2020 to address food supply chain imbalances caused by COVID-19, facilitating the redistribution of excess perishable food products[80] - Management anticipates a continued focus on recurring subscription revenue while reducing reliance on non-recurring transactional revenue[83] Debt and Interest - As of December 31, 2020, the total debt was $5,720,175, consisting of 0% fixed rate debt and 100% variable rate debt[126] - The weighted average interest rate for cash holdings was 2.14%, with a fair value of $23,894,653 as of December 31, 2020[127] Accounting Standards - The company adopted Accounting Standards Update No. 2016-02, "Leases (Topic 842)" effective July 1, 2019, with updated disclosures for reporting periods beginning after this date[122]

Park City Group, Inc. (PCYG) Q1 2021 Earnings Conference Call November 16, 2020 4:15 PM ET Company Participants Rob Fink - IR, FNK IR John Merrill - Chief Financial Officer Randy Fields - Chairman & Chief Executive Officer Conference Call Participants Thomas Forte - D.A. Davidson Operator Greetings and welcome to the Park City Group's Fiscal First Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. Our question-and-answer session will follow the formal presentation. [Operat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended September 30, 2020 ☐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 001-34941 PARK CITY GROUP, INC. (Exact name of small business issuer as specified in its charter) (State or other jurisd ...

Financial Data and Key Metrics Changes - Annual recurring revenue for the software business grew by 13%, with 98% of the software business now being recurring revenue, up from 77% in 2019 and 69% in 2018 [6][10] - Total topline revenue for fiscal 2020 was $20 million, down 5% from $21 million in 2019, primarily due to a planned reduction in one-time software revenue [23] - GAAP net income for fiscal 2020 was $1.6 million, or 8% of revenue, compared to $3.3 million, or 16% of revenue in the previous year [29] Business Line Data and Key Metrics Changes - Marketplace revenue grew by 62%, with a significant increase of 177% in the fourth quarter to $1.3 million [6][17] - Operating expenses increased by 8% year-over-year, from $17.2 million in 2019 to $18.6 million in 2020, largely due to increased costs associated with marketplace revenue [24][25] Market Data and Key Metrics Changes - The number of Tier 2 customers increased by 75%, from 60 in 2019 to 105 in 2020 [6][46] - Marketplace has benefited from the demand for hard-to-find goods during the pandemic, contributing to significant transactional revenue [17][42] Company Strategy and Development Direction - The company is focused on transitioning from one-time software revenue to recurring revenue, which is expected to enhance predictability and profitability [33][36] - The strategy includes reducing operating expenses, generating cash, and strengthening the balance sheet while continuing to grow the network [18][39] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by COVID-19 but remains optimistic about the long-term growth potential, particularly in the grocery supply chain sector [40][53] - The company expects recurring revenue to grow at a low double-digit rate in fiscal 2021, despite the ongoing economic uncertainty [53][76] Other Important Information - The company has a strong balance sheet with total cash at the end of fiscal 2020 amounting to $20.4 million, up from $18.6 million in the previous year [30] - The stock buyback program was halted during the pandemic, with approximately 1.36 million remaining on the existing buyback program [31][32] Q&A Session Summary Question: What factors will drive non-recurring revenue in the next 12 months? - Management indicated uncertainty regarding non-recurring revenue but emphasized the growth of the recurring software SaaS business and the marketplace's potential [56][57] Question: How has COVID-19 impacted operating expenses? - Management stated that COVID-19 has not significantly affected expenses beyond the cost-cutting measures already implemented, with a projected reduction of about $1.2 million over the next year [61][62] Question: When will the revenue headwind from transactional revenue subside? - Management expects that by the next quarter, the company will be close to pure recurring revenue, leading to overall revenue growth [69] Question: Is recurring revenue tracking higher than initially expected? - Management confirmed that recurring revenue growth is tracking higher than previously anticipated, driven by successful cross-selling initiatives [71][74] Question: What are the strategic priorities moving forward? - The company will continue to focus on adding Tier 1 and Tier 2 hubs and enhancing cross-selling efforts within existing customer relationships [79]

Company Overview - Park City Group is a Software-as-a-Service (SaaS) provider focused on B2B e-commerce, compliance, and supply chain management, primarily serving the food retail sector[18]. - The company operates a hub and spoke business model, engaging retailers and wholesalers as "Hubs" that require their suppliers, or "Spokes," to utilize its services[22]. Product and Service Offerings - The company’s solutions include ReposiTrak MarketPlace, Compliance and Food Safety, and Supply Chain solutions, which enhance supplier discovery, compliance management, and supply chain efficiency[19][20]. - The company’s Compliance and Food Safety solutions include applications for Vendor Validation, Compliance Management, and Quality Management Systems, ensuring supplier compliance with food safety regulations[38]. - The company’s cloud-based solutions are designed to help customers manage inventory, reduce costs, and improve sales through enhanced visibility and forecasting[38]. Financial Performance - Target Corporation accounted for approximately 8.1% of the company's total revenue in the fiscal year ended June 30, 2020[42]. - The company received a loan of approximately $1.1 million under the Paycheck Protection Program (PPP) to support payroll costs and other expenses during the COVID-19 pandemic[28]. Strategic Initiatives - The company launched FoodSourceUSA in April 2020 to address food supply chain imbalances caused by COVID-19, facilitating the redistribution of excess perishable food[25][26]. - The company has streamlined its sales force to enable cross-selling and shifted emphasis towards its inside sales team located in Murray, Utah[46]. - The company’s product development strategy focuses on creating common technology elements for multiple applications across core markets, enhancing competitiveness[40]. Intellectual Property - The Company has been awarded nine U.S. patents and has a policy to seek patent protection for all patentable developments[50]. - The Company is not aware of any patent infringement claims against it, but potential litigation could incur significant costs and affect operations[51]. Workforce and Operations - As of June 30, 2020, the Company employed a total of 81 employees, with plans to expand its offshore workforce to enhance analytics services and programming resources[52]. Regulatory Compliance - The Company currently has no costs associated with compliance with environmental regulations and does not anticipate future costs[56]. - The Company does not engage in hedging transactions for currency exchange rate exposure, as all contracts require payment in U.S. dollars[167].

Financial Data and Key Metrics Changes - Total revenue for Q3 2020 was $4.63 million, down 7% from $5 million in Q3 2019 [18] - Recurring revenue grew 5% to $4.2 million for Q3 2020, up from $4 million in the same quarter of 2019, increasing its percentage of total revenue from 80% to 90% [18] - Year-to-date total revenue decreased from $16.5 million to $14.3 million, down 14% from the same period in fiscal 2019 [19] - Net income for Q3 2020 was $125,000, or $0.01 per diluted share, compared to $921,000, or $0.05 per diluted share in the year-ago quarter [23] - Total cash as of March 31, 2020, was $17.9 million, down $5.3 million sequentially from $19 million at December 31, 2019 [16] Business Line Data and Key Metrics Changes - Marketplace revenue was up 66% in Q3 2020, primarily due to increased demand for hard-to-find items related to the pandemic [14] - Total operating expenses for Q3 2020 were $4.4 million, an increase of 10% from $4 million in Q3 2019, largely due to higher marketplace costs and increased telecommuting expenses [21] - Deferred revenue decreased by 11% or $213,000 due to delays in implementations and completed contracts [17] Market Data and Key Metrics Changes - The grocery industry faced unique challenges during the pandemic, with supply chain disruptions leading to out-of-stock situations for essential items [29] - The pandemic has highlighted the importance of food safety and compliance, with the company positioned as essential to the grocery supply chain [32] Company Strategy and Development Direction - The company is focused on prioritizing recurring revenue over non-recurring revenue, which has been a consistent strategy [8] - Efforts to strengthen the balance sheet are critical as the company navigates the uncertainties of the pandemic [9] - The company aims to grow its network, although this effort was deprioritized during the pandemic [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future opportunities as customers stabilize their supply chains post-pandemic [10] - The company anticipates that the grocery industry will become more selective in partnerships, emphasizing the need for financial stability [11] - Management believes that the pandemic has reinforced the company's essential role in the grocery supply chain [36] Other Important Information - The company launched the FoodSourceUSA program to assist the Department of Defense in addressing food supply chain imbalances caused by COVID-19 [13] - The stock buyback program was halted on March 17, 2020, due to the pandemic [16][26] Q&A Session Summary Question: Can you clarify the revenue growth this quarter? - Management indicated that recurring revenue is growing, with marketplace revenue also seeing substantial increases, especially in the last few weeks of March [43] Question: What does the outlook for the June quarter look like? - Management expressed confidence in achieving year-over-year revenue growth in the June quarter, driven by recurring revenue and incremental marketplace growth [45][48] Question: How has licensing and services been impacted? - Management noted that the environment has made it easier to convert licensing revenue into recurring revenue as customers conserve cash [50] Question: What opportunities exist for scan-based trading? - Management sees potential for reshaping retailer-supplier relationships post-pandemic, with increased interest in scan-based trading initiatives [54] Question: How is the company positioned regarding online grocery? - Management acknowledged that while online grocery has seen growth, there are significant challenges in inventory accuracy that the company can help address [79] Question: What is the current M&A strategy? - Management is open to M&A opportunities, especially given the financial pressures many companies are facing, but is currently focused on execution [81]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 2020 ☐ 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 001-34941 PARK CITY GROUP, INC. (Exact name of small business issuer as specified in its charter) Nevada 37-1454128 (State ...