Dynatronics (DYNT) investor relations material

Executive summary

• Net sales for the quarter ended September 30, 2025, decreased 7.6% year-over-year to $7.02 million, primarily due to lower OEM volume and reduced demand for orthopedic soft bracing products.

• Gross profit declined 12.6% to $1.73 million, with gross margin falling to 24.7% from 26.1% a year earlier.

• Operating loss narrowed to $88,000 from $251,000 in the prior year quarter, reflecting cost reduction efforts.

• Net loss attributable to common stockholders was $385,000, or $0.03 per share, compared to $534,000, or $0.09 per share, in the prior year.

Financial highlights

• Selling, general, and administrative expenses decreased 18.5% to $1.82 million, driven by lower salaries, benefits, and professional expenses.

• Net cash used in operating activities was $93,000, compared to $101,000 provided in the prior year quarter.

• Cash and cash equivalents increased to $762,000 at quarter-end, up from $326,000 at June 30, 2025.

• Working capital was $593,000, with a current ratio of 1.1.

Outlook and guidance

• Management is implementing a comprehensive plan to address ongoing losses, including cost reductions, operational streamlining, product diversification, and shifting production in-house.

• Substantial doubt remains about the company's ability to continue as a going concern due to recurring losses and liquidity constraints.