ReposiTrak(TRAK) - 2020 Q4 - Annual Report

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].