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AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2024 AND 2023 2024 2023 Revenue: Monitoring and other related services$35,712,211 $33,503,687 Product sales and other 1,174,289 972,178 Total revenue 36,886,500 34,475,865 Cost of revenue: Monitoring, products and other related services 16,615,936 15,915,300 Depreciation and amortization included in cost of revenue 3,061,520 3,263,490 Total cost of revenue 19,677,456 19,178,790 Gross profit 17,209,044 15,297,075 Operating expense: General & administrative 11,521,826 10,275,695 Selling & marketing 3,121,239 2,842,661 Research & development 2,749,218 2,735,060 Depreciation & amortization 944,115 987,472 Impairment on assets held for sale 757,130 - Total operating expense 19,093,528 16,840,888 Operating income (loss) (1,884,484) (1,543,813) Other income (expense): Interest income 126,365 272,775 Interest expense (2,024,443) (1,960,488)Currency exchange rate gain (loss) 115,302 467,868 Other income/(expense), net (3,607) - Total other income (expense) (1,786,383) (1,219,845)Net income (loss) before income taxes (3,670,867) (2,763,658)Income tax expense (benefit) (589,453) 627,850 Net income (loss) attributable to common stockholders (3,081,414) (3,391,508)Foreign currency translation adjustments (38,495) (206,220)Comprehensive income (loss)$(3,119,909) $(3,597,728)Net income (loss) per share – basic: Net income (loss) per common share$(0.26) $(0.30)Weighted average common shares outstanding 11,863,758 11,634,449 Net income (loss) per share – diluted: Net income (loss) per common share$(0.26) $(0.30)Weighted average common shares outstanding 11,863,758 11,634,449 TRACK GROUP, INC.
AND SUBSIDIARIESNON-GAAP ADJUSTED EBITDA SEPTEMBER 30 (UNAUDITED)(amounts in thousands, except share and per share data) Three Months EndedSeptember 30, Twelve Months EndedSeptember 30, 2024 2023 2024 2023 Non-GAAP Adjusted EBITDA Net income (loss) attributable to common shareholders$(309) $(1,245) $(3,081) $(3,392)Interest expense, net 592 436 1,902 1,688 Depreciation and amortization 978 1,070 4,006 4,251 Income taxes (1) (236) 30 (589) 628 Board compensation and stock-based compensation 75 71 253 385 Foreign exchange expense (gain) (275) 505 (115) (468)Impairment on Assets Held for Sale 757 - 757 - Other charges, net (2) 385 149 2,259 747 Total Non-GAAP Adjusted EBITDA$1,967 $1,016 $5,392 $3,839 Non-GAAP Adjusted EBITDA, percent of revenue 20.2% 11.8% 14.6% 11.1% Non-GAAP earnings per share – basic: Weighted average common shares outstanding 11,863,758 11,863,758 11,863,758 11,634,449 Non-GAAP earnings per share$0.17 $0.09 $0.45 $0.32 Non-GAAP earnings per share – diluted: Weighted average common shares outstanding 11,863,758 11,863,758 11,863,758 11,634,449 Non-GAAP earnings per share$0.17 $0.09 $0.45 $0.32 (1)Currently, the Company has significant U.S.tax loss carryforwards that may be used to offset future taxable income, subject to IRS limitations.
AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSAS OF SEPTEMBER 30, 2024 AND 2023 September 30, September 30, 2024 2023 Assets Current assets: Cash$3,574,215 $4,057,195 Accounts receivable, net of allowance for credit losses of $432,904 and $178,095 respectively 4,428,535 4,536,916 Prepaid expense and deposits 638,293 610,440 Inventory, net of reserves of $82,848 and $3,772, respectively 582,481 1,286,194 Assets held for sale 969,481 - Total current assets 10,193,005 10,490,745 Property and equipment, net of accumulated depreciation of $430,003 and $1,920,850, respectively 317,206 115,808 Monitoring equipment, net of accumulated depreciation of $5,982,972 and $6,348,695, respectively 4,598,864 5,187,092 Intangible assets, net of accumulated amortization of $19,699,966 and $17,430,846, respectively 13,959,571 14,157,294 Goodwill 7,941,190 7,851,466 Other assets, net 660,170 2,442,154 Total assets$37,670,006 $40,244,559 Liabilities and Stockholders’ Equity (Deficit) Current liabilities: Accounts payable$3,082,467 $2,796,712 Accrued liabilities 2,639,318 2,571,839 Current portion of long-term debt - 308,417 Liabilities held for sale 732,028 - Total current liabilities 6,453,813 5,676,968 Long-term debt, net of current portion 42,639,197 42,801,165 Long-term liabilities 186,407 259,359 Total liabilities 49,279,417 48,737,492 Stockholders’ equity (deficit): Common stock, $0.0001 par value: 30,000,000 shares authorized; 11,863,758 and 11,863,758 shares outstanding, respectively 1,186 1,186 Preferred stock, $0.0001 par value: 20,000,000 shares authorized; 0 shares outstanding - - Series A Convertible Preferred stock, $0.0001 par value: 1,200,000 shares authorized; 0 shares outstanding - - Paid in capital 302,600,546 302,597,115 Accumulated deficit (312,691,811) (309,610,397)Accumulated other comprehensive loss (1,519,332) (1,480,837)Total equity (deficit) (11,609,411) (8,492,933)Total liabilities and stockholders’ equity (deficit)$37,670,006 $40,244,559 TRACK GROUP, INC.
