ReposiTrak(US:TRAK)2025-11-13 22:16Revenue 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] Cash Flow and Investments - 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, reflecting 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, due to increased stock buybacks and continued redemption of Preferred Stock[99] Assets and Liabilities - 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] - 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] Dividends and Stock - The company declared a quarterly cash dividend of $0.02 per share, representing an annual dividend yield of approximately 0.54%[76] - The Company declared a quarterly cash dividend of $0.01 per share for the quarter ending September 30, 2025, representing a 10% increase from the previous dividend[105] - A total of 571,772 shares of Preferred Stock have been redeemed at a total cost of $6,117,960, with $2.85 million of Preferred Stock remaining to be redeemed[106] - 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] Company Strategy and Operations - The company’s growth in traceability services is driven by increased regulatory requirements and consumer response to food safety hazards[83] - The company is focusing on recurring subscription revenue, with less emphasis on transactional revenue[84] - The ReposiTrak Traceability Network is positioned to provide end-to-end traceability, connecting thousands of suppliers and retailers[81] Financial Position and Accounting - The Company had zero bank debt as of September 30, 2025, following the termination of its credit facility in March 2024[104] - The company adopted new accounting standards effective July 1, 2019, with no material changes to revenue recognition practices compared to previous periods[117] - 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] - As of September 30, 2025, the fair value of cash holdings is $28,794,806, with a weighted average interest rate of 4.71%[125] - The company does not engage in hedging transactions to mitigate foreign currency exchange rate risks, as its operations are primarily in the United States[122] - Interest rate changes are not expected to materially affect the company's financial position or cash flows, given the composition of its cash in bank deposits and short-term money market instruments[123] - The company assesses available-for-sale debt securities for credit loss, considering factors such as fair value relative to amortized cost and changes in security ratings[121] - Unrealized gains and losses on available-for-sale debt investments are recorded in accumulated other comprehensive income (AOCI)[120] - The company classifies its investments as current based on their nature and availability for use in operations[120] - The company measures stock-based compensation at grant date fair value, recognizing it as an expense over the requisite service period[118] - The company has updated all amounts and disclosures in its financial reports to comply with the new lease accounting standard[119]