Revenue 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] - 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] Cash Flow and Liquidity - 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] - 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, representing 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[99] - 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] - The company had zero bank debt as of September 30, 2025, following the termination of its credit facility in March 2024[104][105] Dividends and Stock - The company declared a quarterly cash dividend of $0.02 per share, representing an annual yield of approximately 0.54%[76] - The quarterly cash dividend was increased by 10% to $0.01815 per share, effective for shareholders of record on December 31, 2024[105] - The company plans to redeem all Series B and B-1 Preferred Stock on or before December 2026, with $2.85 million of Preferred Stock remaining to be redeemed[91][106] Compliance and Regulatory - The compliance deadline for FSMA 204 has been extended to July 20, 2028, impacting nearly every company in the food supply chain[80] - The company focuses on recurring subscription revenue, with an emphasis on compliance, supply chain, and traceability services[84] Investments and Financial Instruments - The company’s available-for-sale debt investments include U.S. government securities, corporate debt, and mortgage-backed securities, recorded at fair value[120] - Unrealized gains and losses on available-for-sale debt investments are included in accumulated other comprehensive income (AOCI)[120] - The company assesses available-for-sale debt securities for temporary or permanent credit losses, considering factors such as fair value compared to amortized cost and changes in security ratings[121] - The company does not engage in hedging transactions to mitigate foreign currency exchange rate risks, as its operations are primarily conducted in the United States[122] - The company’s financial results are not significantly affected by foreign market conditions due to its principal operations being in the U.S.[122] Interest Rate and Lease Obligations - 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] - The company’s exposure to interest rate changes related to borrowing is limited, and near-term changes in interest rates are not expected to materially affect financial position or cash flows[124] - Investments in fixed-rate and floating-rate instruments carry interest rate risk, potentially affecting future interest income[123] Traceability Network - The ReposiTrak Traceability Network is positioned to provide end-to-end traceability, connecting thousands of supplier locations to food wholesaler and retail locations[81] Accounting Standards - The company adopted new accounting standards effective July 1, 2019, with no material changes to revenue recognition practices compared to previous periods[117]
Park City Group, Inc.(PCYG) - 2026 Q1 - Quarterly Report