Park City Group, Inc.(PCYG) - 2025 Q3 - Quarterly Report

PART I - FINANCIAL INFORMATION Item 1. Financial Statements 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 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] - Total assets grew by $3,237,704 (6.3%) over the nine-month period[9] - 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] Consolidated Condensed Statements of Operations and Comprehensive Income 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] - 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] Consolidated Condensed Statements of Cash Flows 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] - 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] - 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] Consolidated Condensed Statements of Stockholders' Equity 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][15][16] - 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][16][56] - Accumulated deficit decreased significantly from $(17,962,410) to $(14,181,033), reflecting positive net income contributions[9][15][16] Notes to Consolidated Condensed Financial Statements This section provides detailed explanations and disclosures supporting the consolidated condensed financial statements NOTE 1. OVERVIEW OF OPERATIONS AND BASIS FOR PRESENTATION 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] - The company's services are grouped into three application suites: ReposiTrak Compliance Management, ReposiTrak Traceability Network (RTN), and ReposiTrak Supply Chain Solutions[19][24] - ReposiTrak operates on a 'hub and spoke' business model, where retailers/wholesalers ('Hubs') require their suppliers ('Spokes') to use the company's services[21] - The company changed its corporate name from Park City Group, Inc. to ReposiTrak, Inc. on December 21, 2023[22] NOTE 2. SIGNIFICANT ACCOUNTING POLICIES 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