trak20251231

trak20251231_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended December 31, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to .

Commission File Number 001-34941

REPOSITRAK, INC.

(Exact name of small business issuer as specified in its charter)

Nevada	37-1454128
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

5282 South Commerce Drive, Suite D292, Murray, Utah 84107

(Address of principal executive offices)

(435) 645-2000

(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which

registered

Common stock, par value $0.01 per share

TRAK

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Sec.232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of February 17, 2026, 18,203,410 shares of the registrant’s common stock, $0.01 par value, were issued and outstanding.

Table of Contents

REPOSITRAK, INC.

TABLE OF CONTENTS

		Page
PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements	1

	Consolidated Condensed Balance Sheets as of December 31, 2025 and June 30, 2025 (Unaudited)	1
	Consolidated Condensed Statements of Operations and Comprehensive Income for the Three and Six months Ended December 31, 2025 and 2024 (Unaudited)	2
	Consolidated Condensed Statements of Cash Flows for the Six months Ended December 31, 2025 and 2024 (Unaudited)	3
	Consolidated Condensed Statements of Stockholders’ Equity for the Three and Six months Ended December 31, 2025 and 2024 (Unaudited)	4
	Notes to Consolidated Condensed Financial Statements	5

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	14

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24

Item 4.	Controls and Procedures	24

PART II OTHER INFORMATION

Item 1.	Legal Proceedings	25

Item 1A.	Risk Factors	25

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25

Item 3.	Defaults Upon Senior Securities	25

Item 5.	Other Information	25

Item 6.	Exhibits	25

Signatures		26

Table of Contents

PART I

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

REPOSITRAK, INC.

Consolidated Condensed Balance Sheets (Unaudited)

	*December 31,*			*June 30,*
	*2025*			*2025*
*Assets*
Current Assets
Cash	$	28,706,493		$	28,568,805
Receivables, net of allowance for doubtful accounts of $247,545 and $242,437 at December 31, 2025 and June 30, 2025, respectively		4,853,895			4,133,026
Contract asset – unbilled current portion		481,908			428,585
Prepaid expense and other current assets		927,600			555,384
Total Current Assets		34,969,896			33,685,800

Property and equipment, net		430,887			602,172

Other Assets:
Deposits and other assets		22,414			22,414
Prepaid expense – less current portion		4,404			6,568
Goodwill		20,883,886			20,883,886
Capitalized software costs, net		-			128,207
Total Other Assets		20,910,704			21,041,075

Total Assets	$	56,311,487		$	55,329,047

*Liabilities and Shareholders’ Equity*
Current liabilities
Accounts payable	$	189,226		$	282,146
Accrued liabilities		2,351,560			1,841,839
Contract liability – deferred revenue		3,646,520			3,175,908
Notes payable and financing leases – current		233,401			231,225
Total current liabilities		6,420,707			5,531,118

Long-term liabilities
Notes payable and financing leases – less current portion		170,442			278,748
Total liabilities		6,591,149			5,809,866

Commitments and contingencies

Stockholders’ equity:
Preferred Stock; $0.01 par value, 30,000,000 shares authorized;
Series B Preferred, 700,000 shares authorized; 195,912 and 336,098 shares issued and outstanding at December 31, 2025 and June 30, 2025, respectively		1,959			3,361
Common Stock, $0.01 par value, 50,000,000 shares authorized; 18,211,681 and 18,282,805 and issued and outstanding at December 31, 2025 and June 30, 2025, respectively		182,119			182,830
Additional paid-in capital		59,819,578			62,181,156
Accumulated other comprehensive loss		(19,845	)		(11,256	)
Accumulated deficit		(10,263,473	)		(12,836,910	)
Total stockholders’ equity		49,720,338			49,519,181
Total liabilities and stockholders’ equity	$	56,311,487		$	55,329,047

See accompanying notes to consolidated condensed financial statements.

- 1 -

Table of Contents

REPOSITRAK, INC.

Consolidated Condensed Statements of Operations and Comprehensive Income (Unaudited)

	*Three Months Ended*						*Six Months Ended*
	*December 31,*						*December 31,*
	*2025*			*2024*			*2025*			*2024*

Revenue	$	5,856,811		$	5,490,908		$	11,828,278		$	10,932,050

Operating expense:
Cost of revenue and product support		853,744			1,002,556			1,707,896			1,861,775
Sales and marketing		1,494,342			1,455,036			3,101,811			2,984,136
General and administrative		1,467,862			1,376,553			2,840,089			2,669,104
Depreciation and amortization		223,930			304,712			467,676			584,923
Total operating expense		4,039,878			4,138,857			8,117,472			8,099,938

Income from operations		1,816,933			1,352,051			3,710,806			2,832,112

Other income (expense):
Interest income		397,493			354,633			760,902			704,166
Interest expense		(9,412	)		(12,033	)		(20,739	)		(22,205	)
Realized gain (loss) on short term investments		-			-			(20,246	)		-
Unrealized gain (loss) on short term investments		(68,974	)		8,534			(25,155	)		4,267
Income before income taxes		2,136,040			1,703,185			4,405,568			3,518,340

(Provision) for income taxes:		(450,000	)		(152,105	)		(899,999	)		(302,105	)
Net income		1,686,040			1,551,080			3,505,569			3,216,235

Dividends on preferred stock		(46,551	)		(95,616	)		(105,368	)		(203,498	)

Net income applicable to common shareholders	$	1,639,489		$	1,455,464		$	3,400,201		$	3,012,737

Weighted average shares, basic		18,269,000			18,254,000			18,279,000			18,249,000
Weighted average shares, diluted		19,053,000			19,143,000			19,094,000			19,122,000
Basic income per share	$	0.09		$	0.08		$	0.19		$	0.17
Diluted income per share	$	0.09		$	0.08		$	0.18		$	0.16
Comprehensive income:
Net income	$	1,686,040		$	1,551,080		$	3,505,569		$	3,216,235
Other comprehensive gain:
Unrealized gain (loss) on available-for-sale securities		20			(15,217	)		(8,589	)		18,869
Total comprehensive income	$	1,686,060		$	1,535,863		$	3,496,980		$	3,235,104

See accompanying notes to consolidated condensed financial statements.

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Table of Contents

REPOSITRAK, INC.

Consolidated Condensed Statements of Cash Flows (Unaudited)

	*Six Months Ended*
	*December 31,*
	*2025*			*2024*
Cash flows from operating activities:
Net income	$	3,505,569		$	3,216,235
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		467,676			584,923
Amortization of operating right of use asset		-			31,352
Stock compensation expense		257,056			202,987
Bad debt expense		450,000			300,000
(Increase) decrease in:
Accounts receivables		(1,224,192	)		(460,270	)
Long-term receivables, prepaids and other assets		(526,487	)		(54,102	)
Increase (decrease) in:
Accounts payable		(92,920	)		26,786
Operating lease liability		-			(31,218	)
Accrued liabilities		469,358			(207,036	)
Deferred revenue		470,612			1,718,973
Net cash provided by operating activities		3,776,672			5,328,630

Cash flows from investing activities:
Purchase of property and equipment		(11,749	)		-
Sale (purchase) of marketable securities		(8,589	)		18,869
Net cash provided by (used in) investing activities		(20,338	)		18,869

Cash flows from financing activities:
Common Stock buyback/retirement		(1,248,593	)		(100,016	)
Redemption of Series B Preferred		(1,499,990	)		(1,499,980	)
Proceeds from exercise of warrants		-			79,120
Proceeds from employee stock plan		63,479			64,352
Dividends paid		(827,412	)		(831,898	)
Payments on notes payable and capital leases		(106,130	)		(171,541	)
Net cash used in financing activities		(3,618,646	)		(2,459,963	)

Net increase (decrease) in cash and cash equivalents		137,688			2,887,536

Cash and cash equivalents at beginning of period		28,568,805			25,153,862
Cash and cash equivalents at end of period	$	28,706,493		$	28,041,398

Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	708,943		$	375,119
Cash paid for interest	$	7,430		$	4,832
Cash paid for operating leases	$

SEC Form 10-Q filed by ReposiTrak Inc.