ReposiTrak(US:TRAK)2019-11-07 22:01Revenue Performance - Revenue for the three months ended September 30, 2019, was $4,800,084, a 19% decrease from $5,941,994 in the same period of 2018, primarily due to a reduction in transactional one-time revenue[92]. - Net other income increased by 152% to $62,133 for the three months ended September 30, 2019, compared to $24,651 in 2018, contributing 1% to total revenue[102]. Expenses - Cost of services and product support increased by 6% to $1,828,114 for the three months ended September 30, 2019, compared to $1,728,526 in 2018, representing 38% of total revenue[94]. - Sales and marketing expenses decreased by 26% to $1,414,863 for the three months ended September 30, 2019, down from $1,908,024 in 2018, accounting for 29% of total revenue[96]. - General and administrative expenses rose by 7% to $1,222,212 for the three months ended September 30, 2019, compared to $1,143,311 in 2018, making up 25% of total revenue[98]. - Depreciation and amortization expense increased by 33% to $193,677 for the three months ended September 30, 2019, from $145,375 in 2018, representing 4% of total revenue[101]. - The company expects cost of services and general and administrative expenses to grow in absolute terms, while sales and marketing expenses are anticipated to remain flat in subsequent periods[95][100]. Cash Flow - Cash and cash equivalents decreased by 2% to $18,295,443 as of September 30, 2019, from $18,609,423 on June 30, 2019[105]. - Net cash provided by operating activities decreased by 56% to $712,594 for the three months ended September 30, 2019, down from $1,606,792 in 2018[106]. - Net cash used in investing activities for the three months ended September 30, 2019 was $353,706, a significant increase from $1,492 for the same period in 2018, primarily due to maintenance on equipment[107]. - Net cash used in financing activities totaled $672,868 for the three months ended September 30, 2019, compared to $46,543 in the prior year, reflecting a 1,346% increase mainly due to stock buybacks and cash dividends[108]. Working Capital and Assets - Working capital decreased by $497,341 to $17,248,916 as of September 30, 2019, compared to $17,746,257 at June 30, 2019, driven by a decrease in prepaid expenses and cash[109]. - Current assets as of September 30, 2019 were $25,866,109, down 3% from $26,548,874 as of June 30, 2019, primarily due to cash used for stock buybacks[111]. - Current liabilities decreased by $185,424 to $8,617,193 as of September 30, 2019, compared to $8,802,617 at June 30, 2019, mainly due to a reduction in accrued liabilities[112]. Debt and Obligations - The company had a total debt of $5,803,502 as of September 30, 2019, with 20% being fixed rate debt and 80% variable rate debt[128]. - Total contractual obligations as of September 30, 2019 included finance lease obligations of $1,143,502 and operating lease obligations of $842,689[114]. - Cash fair value as of September 30, 2019 was $18,295,443, with a weighted average interest rate of 2%[128]. - The company does not have any off-balance sheet arrangements that could materially affect its financial condition or results of operations[113]. New Initiatives - The company released a new Out of Stock Management Solution in August 2019, aimed at addressing critical challenges for food retailers[90]. Accounting Standards - The company adopted new accounting standards for revenue recognition effective July 1, 2018, which did not materially change its revenue recognition practices[120].