ReposiTrak(US:TRAK)2021-02-16 22:16Revenue Performance - Revenue for the three months ended December 31, 2020, was $5,174,204, representing a 7% increase from $4,837,332 in the same period of 2019, primarily driven by growth in MarketPlace and software subscription revenue[82] - Revenue for the six months ended December 31, 2020, was $10,399,606, an 8% increase from $9,637,416 in 2019, driven by growth in subscription and Marketplace revenue[94] Cost and Expenses - Cost of services and product support increased by 47% to $2,091,588 for the three months ended December 31, 2020, compared to $1,425,309 in 2019, mainly due to higher expenses associated with MarketPlace[85] - Cost of services and product support for the six months ended December 31, 2020, was $4,072,545, a 25% increase from $3,253,423 in 2019, mainly due to higher MarketPlace expenses and increased hardware/software costs[95] - Sales and marketing expenses decreased by 17% to $1,205,295 for the three months ended December 31, 2020, down from $1,446,517 in 2019, attributed to reduced contractor fees and travel expenses due to COVID-19[87] - Sales and marketing expense decreased by 13% to $2,488,336 for the six months ended December 31, 2020, compared to $2,861,380 in 2019[96] - General and administrative expenses rose by 10% to $1,231,139 for the three months ended December 31, 2020, compared to $1,114,251 in 2019, primarily due to increased bad debt expense and legal fees[89] - General and administrative expense slightly decreased by 1% to $2,313,064 for the six months ended December 31, 2020, from $2,336,462 in 2019[97] - Depreciation and amortization expense increased by 23% to $510,097 for the six months ended December 31, 2020, compared to $416,177 in 2019[98] Other Income - Net other income for the three months ended December 31, 2020, was $1,250,774, a significant increase of 2,405% from $49,940 in the same period of 2019, due to a gain on debt extinguishment and higher interest income[92] - Net other income surged by 969% to $1,198,307 for the six months ended December 31, 2020, from $112,073 in 2019[99] Cash Flow and Working Capital - Cash and cash equivalents increased by 17% to $23,894,653 as of December 31, 2020, compared to $20,345,330 as of June 30, 2020[102] - Net cash provided by operating activities rose by 41% to $3,756,014 for the six months ended December 31, 2020, from $2,671,585 in 2019[104] - Cash used in investing activities decreased by 82% to $103,218 for the six months ended December 31, 2020, compared to $581,750 in 2019[105] - Cash used in financing activities significantly decreased by 94% to $103,473 for the six months ended December 31, 2020, from $1,730,483 in 2019[107] - Working capital increased by $1,667,283 to $19,903,947 as of December 31, 2020, compared to $18,236,664 at June 30, 2020[108] - Current assets rose by 9% to $29,600,792 as of December 31, 2020, from $27,148,911 as of June 30, 2020[109] Strategic Initiatives - The company launched a pilot program in December 2020 to address emergency grant management requests, aimed at improving tracking and compliance for federal disaster grants[78] - The FoodSourceUSA platform was introduced in July 2020 to address food supply chain imbalances caused by COVID-19, facilitating the redistribution of excess perishable food products[80] - Management anticipates a continued focus on recurring subscription revenue while reducing reliance on non-recurring transactional revenue[83] Debt and Interest - As of December 31, 2020, the total debt was $5,720,175, consisting of 0% fixed rate debt and 100% variable rate debt[126] - The weighted average interest rate for cash holdings was 2.14%, with a fair value of $23,894,653 as of December 31, 2020[127] Accounting Standards - The company adopted Accounting Standards Update No. 2016-02, "Leases (Topic 842)" effective July 1, 2019, with updated disclosures for reporting periods beginning after this date[122]