Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2023 | May 05, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | Dynatronics Corporation | |
Entity Central Index Key | 0000720875 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Mar. 31, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Entity Common Stock Shares Outstanding | 4,044,830 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-12697 | |
Entity Incorporation State Country Code | UT | |
Entity Tax Identification Number | 87-0398434 | |
Entity Interactive Data Current | Yes | |
Entity Address Address Line 1 | 1200 Trapp Road | |
Entity Address City Or Town | Eagan | |
Entity Address State Or Province | MN | |
Entity Address Postal Zip Code | 55121 | |
City Area Code | 801 | |
Local Phone Number | 5687000 | |
Security 12b Title | Common Stock, no par value per share | |
Trading Symbol | DYNT | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 516,970 | $ 550,110 |
Restricted cash | 152,627 | 151,207 |
Trade accounts receivable, less allowance for doubtful accounts of $107,842 and $248,224 as of March 31, 2023 and June 30, 2022, respectively | 4,366,953 | 5,416,044 |
Other receivables | 444,059 | 446,493 |
Inventories, net | 9,703,113 | 12,071,292 |
Prepaid expenses | 549,370 | 590,820 |
Total current assets | 15,733,092 | 19,225,966 |
Property and equipment, net | 2,623,953 | 2,911,420 |
Operating lease assets | 3,842,905 | 1,565,530 |
Intangible assets, net | 3,772,850 | 4,240,725 |
Goodwill | 7,116,614 | 7,116,614 |
Other assets | 350,135 | 373,740 |
Total assets | 33,439,549 | 35,433,995 |
Current liabilities: | ||
Accounts payable | 6,166,723 | 6,168,961 |
Accrued payroll and benefits expense | 811,832 | 1,359,624 |
Accrued expense | 15,608 | 862,438 |
Warranty reserve | 115,637 | 197,156 |
Current portion of long-term debt | 0 | 5,362 |
Current portion of finance lease liability | 284,681 | 321,085 |
Current portion of deferred gain | 150,448 | 150,448 |
Current portion of operating lease liability | 1,030,530 | 846,304 |
Other liabilities | 13,743 | 23,967 |
Total current liabilities | 8,589,202 | 9,935,345 |
Finance lease liability, net of current portion | 1,805,008 | 1,938,531 |
Deferred gain, net of current portion | 814,926 | 927,762 |
Operating lease liability, net of current portion | 2,812,375 | 727,310 |
Other liabilities | 202,562 | 206,489 |
Total liabilities | 14,224,073 | 13,735,437 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, no par value: Authorized 50,000,000 shares; 3,351,000 shares issued and outstanding as of March 31, 2023 and June 30, 2022, respectively | 7,980,788 | 7,980,788 |
Common stock, no par value: Authorized 100,000,000 shares; 3,890,526 shares and 3,639,663 shares issued and outstanding as of March 31, 2023 and June 30, 2022, respectively | 34,160,784 | 33,533,003 |
Accumulated deficit | (22,926,096) | (19,815,233) |
Total stockholders' equity | 19,215,476 | 21,698,558 |
Total liabilities and stockholders' equity | $ 33,439,549 | $ 35,433,995 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Condensed Consolidated Balance Sheets | ||
Allowance For Doubtful Accounts | $ 107,842 | $ 248,224 |
Preferred Stock, Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Shares Issued | 3,351,000 | 3,351,000 |
Preferred Stock, Shares Outstanding | 3,351,000 | 3,351,000 |
Common Stock, Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 3,890,526 | 3,890,526 |
Common Stock, Shares Outstanding | 3,639,663 | 3,639,663 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Condensed Consolidated Statements of Operations (Unaudited) | ||||
Net sales | $ 9,236,037 | $ 10,316,253 | $ 32,171,794 | $ 33,147,001 |
Cost of sales | 7,027,630 | 8,005,146 | 23,258,363 | 25,090,927 |
Gross profit | 2,208,407 | 2,311,107 | 8,913,431 | 8,056,074 |
Selling, general, and administrative expenses | 3,429,001 | 3,746,646 | 11,408,537 | 11,324,798 |
Operating loss | (1,220,594) | (1,435,539) | (2,495,106) | (3,268,724) |
Other income (expense): | ||||
Interest expense, net | (24,385) | (35,138) | (93,782) | (112,814) |
Other income (expense), net | (541) | (873) | 605 | 954,062 |
Net other income (expense) | (24,926) | (36,011) | (93,177) | 841,248 |
Loss before income taxes | (1,245,520) | (1,471,550) | (2,588,283) | (2,427,476) |
Income tax (provision) benefit | 27 | 0 | (4,003) | 0 |
Net loss | (1,245,493) | (1,471,550) | (2,592,286) | (2,427,476) |
Preferred stock dividend, in common stock, issued or to be issued | (174,873) | (182,080) | (518,577) | (551,316) |
Net loss attributable to common stockholders | $ (1,420,366) | $ (1,653,630) | $ (3,110,863) | $ (2,978,792) |
Net loss per common share: | ||||
Net loss per common share Basic | $ (0.36) | $ (0.46) | $ (0.82) | $ (0.84) |
Net loss per common share Diluted | $ (0.36) | $ (0.46) | $ (0.82) | $ (0.84) |
Weighted average shares outstanding: | ||||
Weighted average shares outstanding Basic | 3,929,577 | 3,587,857 | 3,809,610 | 3,548,472 |
Weighted average shares outstanding Diluted | 3,929,577 | 3,587,857 | 3,809,610 | 3,548,472 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Preferred Stock | Accumulated deficit | Total |
Balance, shares at Jun. 30, 2021 | 3,472,931 | 3,351,000 | ||
Balance, amount at Jun. 30, 2021 | $ 32,621,471 | $ 7,980,788 | $ (15,088,734) | $ 25,513,525 |
Stock-based compensation, shares | 17,000 | |||
Stock-based compensation, amount | $ 106,395 | 0 | 0 | 106,395 |
Preferred stock dividend, in common stock, issued or to be issued, shares | 30,928 | |||
Preferred stock dividend, in common stock, issued or to be issued, amount | $ 187,083 | 0 | (187,083) | 0 |
Net income (loss) | $ 0 | $ 0 | 482,640 | 482,640 |
Balance, shares at Sep. 30, 2021 | 3,520,859 | 3,351,000 | ||
Balance, amount at Sep. 30, 2021 | $ 32,914,949 | $ 7,980,788 | (14,793,177) | 26,102,560 |
Balance, shares at Jun. 30, 2021 | 3,472,931 | 3,351,000 | ||
Balance, amount at Jun. 30, 2021 | $ 32,621,471 | $ 7,980,788 | (15,088,734) | 25,513,525 |
Net income (loss) | (2,427,476) | |||
Balance, shares at Mar. 31, 2022 | 3,589,283 | 3,351,000 | ||
Balance, amount at Mar. 31, 2022 | $ 33,321,575 | $ 7,980,788 | (18,070,227) | 23,232,136 |
Balance, shares at Sep. 30, 2021 | 3,520,859 | 3,351,000 | ||
Balance, amount at Sep. 30, 2021 | $ 32,914,949 | $ 7,980,788 | (14,793,177) | 26,102,560 |
Stock-based compensation | $ 5,589 | 0 | 0 | 5,589 |
Preferred stock dividend, in common stock, issued or to be issued, shares | 25,629 | |||
Preferred stock dividend, in common stock, issued or to be issued, amount | $ 182,153 | 0 | (182,153) | 0 |
Net income (loss) | $ 0 | $ 0 | (1,441,267) | (1,441,267) |
Balance, shares at Dec. 31, 2021 | 3,546,488 | 3,351,000 | ||
Balance, amount at Dec. 31, 2021 | $ 33,102,691 | $ 7,980,788 | (16,416,597) | 24,666,882 |
Stock-based compensation, shares | 6,000 | |||
Stock-based compensation, amount | $ 36,804 | 0 | 0 | 36,804 |
Preferred stock dividend, in common stock, issued or to be issued, shares | 36,795 | |||
Preferred stock dividend, in common stock, issued or to be issued, amount | $ 182,080 | 0 | (182,080) | 0 |
Net income (loss) | $ 0 | $ 0 | (1,471,550) | (1,471,550) |
Balance, shares at Mar. 31, 2022 | 3,589,283 | 3,351,000 | ||
Balance, amount at Mar. 31, 2022 | $ 33,321,575 | $ 7,980,788 | (18,070,227) | 23,232,136 |
Stock-based compensation, shares | 322 | |||
Stock-based compensation, amount | $ 29,360 | 0 | 0 | 29,360 |
Preferred stock dividend, in common stock, issued or to be issued, shares | 50,058 | |||
Preferred stock dividend, in common stock, issued or to be issued, amount | $ 182,068 | 0 | (182,068) | 0 |
Net income (loss) | $ 0 | $ 0 | (1,562,938) | (1,562,938) |
Balance, shares at Jun. 30, 2022 | 3,639,663 | 3,351,000 | ||
Balance, amount at Jun. 30, 2022 | $ 33,533,003 | $ 7,980,788 | (19,815,233) | 21,698,558 |
Stock-based compensation, shares | 16,901 | |||
Stock-based compensation, amount | $ 60,401 | 0 | 0 | 60,401 |
Preferred stock dividend, in common stock, issued or to be issued, shares | 59,687 | |||
Preferred stock dividend, in common stock, issued or to be issued, amount | $ 170,576 | 0 | (170,576) | 0 |
Net income (loss) | $ 0 | $ 0 | (505,926) | (505,926) |
Balance, shares at Sep. 30, 2022 | 3,716,251 | 3,351,000 | ||
Balance, amount at Sep. 30, 2022 | $ 33,763,980 | $ 7,980,788 | (20,491,735) | 21,253,033 |
Balance, shares at Jun. 30, 2022 | 3,639,663 | 3,351,000 | ||
Balance, amount at Jun. 30, 2022 | $ 33,533,003 | $ 7,980,788 | (19,815,233) | 21,698,558 |
Net income (loss) | (2,592,286) | |||
Balance, shares at Mar. 31, 2023 | 3,890,526 | 3,351,000 | ||
Balance, amount at Mar. 31, 2023 | $ 34,160,784 | $ 7,980,788 | (22,926,096) | 19,215,476 |
Balance, shares at Sep. 30, 2022 | 3,716,251 | 3,351,000 | ||
Balance, amount at Sep. 30, 2022 | $ 33,763,980 | $ 7,980,788 | (20,491,735) | 21,253,033 |
Stock-based compensation, shares | 11,521 | |||
Stock-based compensation, amount | $ 25,955 | 0 | 0 | 25,955 |
Preferred stock dividend, in common stock, issued or to be issued, shares | 68,838 | |||
Preferred stock dividend, in common stock, issued or to be issued, amount | $ 173,128 | 0 | (173,128) | 0 |
Net income (loss) | $ 0 | $ 0 | (840,867) | (840,867) |
Balance, shares at Dec. 31, 2022 | 3,796,610 | 3,351,000 | ||
Balance, amount at Dec. 31, 2022 | $ 33,963,063 | $ 7,980,788 | (21,505,730) | 20,438,121 |
Stock-based compensation, shares | 5,154 | |||
Stock-based compensation, amount | $ 22,848 | 0 | 0 | 22,848 |
Preferred stock dividend, in common stock, issued or to be issued, shares | 88,762 | |||
Preferred stock dividend, in common stock, issued or to be issued, amount | $ 174,873 | 0 | (174,873) | 0 |
Net income (loss) | $ 0 | $ 0 | (1,245,493) | (1,245,493) |
Balance, shares at Mar. 31, 2023 | 3,890,526 | 3,351,000 | ||
Balance, amount at Mar. 31, 2023 | $ 34,160,784 | $ 7,980,788 | $ (22,926,096) | $ 19,215,476 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (2,592,286) | $ (2,427,476) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of property and equipment | 540,103 | 543,899 |
Amortization of intangible assets | 467,875 | 529,425 |
Amortization of other assets | 0 | 11,512 |
Loss on sale of property and equipment | 0 | 903 |
Stock-based compensation | 109,204 | 148,788 |
Change in allowance for doubtful accounts receivable | (140,382) | (156,353) |
Change in allowance for inventory obsolescence | (241) | (219,664) |
Amortization of deferred gain on sale/leaseback | (112,836) | (112,836) |
Change in operating assets and liabilities: | ||
Trade accounts receivable | 1,189,473 | 672,830 |
Inventories | 2,368,420 | (4,885,406) |
Prepaid expenses and other receivables | 43,884 | 944,455 |
Other assets | 23,605 | 6,791 |
Accounts payable, accrued expenses, and other current liabilities | (1,492,530) | 1,684,200 |
Net cash provided by (used in) operating activities | 404,289 | (3,258,932) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (177,086) | (261,358) |
Net cash used in investing activities | (177,086) | (261,358) |
Cash flows from financing activities: | ||
Principal payments on long-term debt | (5,362) | (10,022) |
Principal payments on finance lease liability | (253,561) | (250,485) |
Net cash used in financing activities | (258,923) | (260,507) |
Net change in cash and cash equivalents and restricted cash | (31,720) | (3,780,797) |
Cash and cash equivalents and restricted cash at beginning of the period | 701,317 | 6,253,644 |
Cash and cash equivalents and restricted cash at end of the period | 669,597 | 2,472,847 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 135,047 | 112,824 |
Supplemental disclosure of non-cash investing and financing activities | ||
Preferred stock dividend, in common stock, issued or to be issued | 174,873 | 551,316 |
Operating lease right-of-use assets obtained in exchange for lease obligations | 2,973,474 | $ 0 |
Finance lease right-of-use assets obtained in exchange for lease obligations | $ 86,119 |
Presentation and Summary of Sig
Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2023 | |
Presentation and Summary of Significant Accounting Policies | |
Presentation and Summary of Significant Accounting Policies [Text Block] | Note 1. Presentation and Summary of Significant Accounting Policies Business Dynatronics Corporation ("Company," "Dynatronics") is a leading medical device company committed to providing high-quality restorative products designed to accelerate achieving optimal health. The Company designs, manufactures, and sells a broad range of products for clinical use in physical therapy, rehabilitation, orthopedics, pain management, and athletic training. Through its distribution channels, Dynatronics markets and sells to orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, and hospitals. Reverse Stock Split On November 17, 2022, the Company's shareholders approved Articles of Amendment to the Company's Amended and Restated Articles of Incorporation (the "Articles of Amendment") to effect a reverse stock split at a ratio in the range of 1-for-2 to 1-for-5, with such ratio to be determined in the discretion of the Company's board of directors and with such reverse stock split to be effected at such time and date, if at all, as determined by the Company's board of directors in its sole discretion. Thereafter, the Company's Board of Directors set the split ratio in the reverse stock split at 1-for-5 and approved and authorized the filing of the Articles of Amendment to effect the reverse stock split with the Utah Department of Commerce, Division of Corporations and Commercial Code. The Articles of Amendment and reverse stock split became effective at 5:00 p.m. Eastern Standard Time on February 1, 2023. At the effective time, every five issued and outstanding shares of common stock were converted into one share of common stock, with any fractional shares resulting from the reverse stock split rounded up to the nearest whole share. The reverse stock split did not affect the Company's authorized shares of common stock or preferred stock, which remained at 100,000,000 and 50,000,000 shares, respectively. The par value of each share of common stock remained unchanged. Proportionate adjustments were made to the per share exercise price and/or the number of shares issuable upon the exercise or vesting of all stock options, restricted stock and warrants outstanding at February 1, 2023, which resulted in a proportional decrease in the number of shares of the Company's common stock reserved for issuance upon exercise or vesting of such stock options, restricted stock and warrants, and, in the case of stock options and warrants, a proportional increase in the exercise price of all such stock options and warrants. Additionally, Unless noted, all common shares and per share amounts contained in the condensed consolidated financial statements and management's discussion and analysis have been retroactively adjusted to reflect a one-for-five reverse stock split. Basis of Presentation The accompanying unaudited condensed consolidated financial statements (the "Condensed Consolidated Financial Statements") have been prepared by the Company in accordance with generally accepted accounting principles in the United States ("GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Consolidated Financial Statements should be read in conjunction with the Company's audited financial statements and accompanying notes included in its Annual Report on Form 10K for the fiscal year ended June 30, 2022 (the "Annual Report") filed with the SEC on September 22, 2022. The Condensed Consolidated Balance Sheet at June 30, 2022, has been derived from the Annual Report. The accounting policies followed by the Company are set forth in Part II, Item 8, Note 1, Basis of Presentation and Summary of Accounting Policies, of the Notes to Financial Statements included in the Company's Annual Report. In the opinion of management, the Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company's financial position as of March 31, 2023 and its results of operations and its cash flows for the periods presented. The results of operations for the first nine months of the fiscal year are not necessarily indicative of results for the full year or any future periods. The Company's fiscal year begins on July 1 and ends on June 30 and references made to "fiscal year 2023" and "fiscal year 2022" refer to the Company's fiscal year ending June 30, 2023 and the fiscal year ended June 30, 2022, respectively. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions. Employee Retention Credit The Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") provided an employee retention credit which was a refundable tax credit against certain employment taxes. The Consolidated Appropriations Act extended and expanded the availability of the employee retention credit through June 30, 2021. Subsequently, the American Rescue Plan Act of 2021 extended the availability of the employee retention credit through December 31, 2021. This new legislation amended the employee retention credit to be equal to 70% of qualified wages paid to employees after December 31, 2020, and before January 1, 2022. During calendar year 2021, a maximum of $10,000 in qualified wages for each employee per qualifying calendar quarter may be counted in determining the 70% credit. Therefore, the maximum tax credit that can be claimed by an eligible employer is $7,000 per employee per qualifying calendar quarter of 2021. The Company qualifies for the employee retention credit for quarters that experience a significant decline in gross receipts, defined as quarterly gross receipts that are less than 80 percent of its gross receipts for the same calendar quarter in 2019. The Infrastructure Investment and Jobs Act retroactively ended the employee retention credit as of September 30, 2021. The Company qualified for the credit beginning on January 1, 2021 and received credits for qualified wages through September 30, 2021. During the quarter ended September 30, 2021, the Company recorded an employee retention credit totaling $1,143,000, of which, $97,000, $103,000, and $943,000 was recorded within cost of sales, selling, general, and administrative, and other income, respectively, on the Company's condensed consolidated statements of operations. Other Receivables Other receivables consist of amounts due from our contract manufacturer for raw materials components provided for use in the production of our products. Payments are due from our contract manufacturer based on the usage of raw material components. Recent Accounting Pronouncements In August 2020, the FASB issued ASU 202006, Debt- Debt with Conversion and Other Options (Subtopic 47020) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 81540): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity |
Net Loss per Common Share
Net Loss per Common Share | 9 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss per Common Share [Text Block] | Note 2. Net Loss per Common Share Net loss per common share is computed based on the weighted-average number of common shares outstanding and, when appropriate, dilutive potential common stock outstanding during the period. Stock options, convertible preferred stock and warrants are considered to be potential common stock. The computation of diluted net loss per common share does not assume exercise or conversion of securities that would have an anti-dilutive effect. Basic net loss per common share is the amount of net loss for the period available to each weighted-average share of common stock outstanding during the reporting period. Diluted net loss per common share is the amount of net loss for the period available to each weighted-average share of common stock outstanding during the reporting period and to each share of potential common stock outstanding during the period, unless inclusion of potential common stock would have an anti-dilutive effect. All outstanding options, warrants and convertible preferred stock for common shares are not included in the computation of diluted net loss per common share because they are anti-dilutive, which for the three months ended March 31, 2023 and 2022, totaled 1,555,615 and 1,562,900 respectively, and for the nine months ended March 31, 2023 and 2022, totaled 1,562,900 and 1,555,233, respectively. |
Convertible Preferred Stock
Convertible Preferred Stock | 9 Months Ended |
Mar. 31, 2023 | |
Convertible Preferred Stock | |
Convertible Preferred Stock [Text Block] | Note 3. Convertible Preferred Stock As of March 31, 2023, the Company had issued and outstanding a total of 1,992,000 shares of Series A 8% Convertible Preferred Stock ("Series A Preferred") and 1,359,000 shares of Series B Convertible Preferred Stock ("Series B Preferred"). The Series A Preferred and Series B Preferred are convertible into a total of 670,200 shares of common stock. Dividends payable on these preferred shares accrue at the rate of 8% per year and are payable quarterly in stock or cash at the option of the Company. The Company generally pays the dividends on the preferred stock by issuing shares of its common stock. The formula for paying these dividends using common stock in lieu of cash can change the effective yield on the dividend to more or less than 8% depending on the market price of the common stock at the time of issuance. In April 2023, the Company paid $174,873 of preferred stock dividends with respect to the Series A Preferred and Series B Preferred that accrued during the three months ended March 31, 2023, by issuing 88,762 shares of common stock. |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2023 | |
Inventories | |
Inventories [Text Block] | Note 4. Inventories Inventories consisted of the following: March 31, 2023 June 30, 2022 Raw materials $ 5,548,618 $ 6,536,951 Work in process 98,619 313,549 Finished goods 4,434,840 5,599,997 Inventory reserve (378,964 ) (379,205 ) $ 9,703,113 $ 12,071,292 |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Mar. 31, 2023 | |
RelatedParty Transactions | |
Related-Party Transactions [Text Block] | Note 5. Related-Party Transactions The Company leases office, manufacturing and warehouse facilities in Northvale, New Jersey, and Eagan, Minnesota from employees, shareholders, and entities controlled by shareholders, who were previously principals of businesses acquired by the Company. The combined expenses associated with these related-party transactions totaled $249,366 and $248,952 for the three months ended March 31, 2023 and 2022, respectively, and $748,098 and $746,858 for the nine months ended March 31, 2023 and 2022, respectively. |
Revenue
Revenue | 9 Months Ended |
Mar. 31, 2023 | |
Revenue | |
Revenue [Text Block] | Note 6. Revenue As of March 31, 2023 and June 30, 2022, the net rebate receivable (liability) was $5,612 and ($217,158), respectively. The rebate receivable is included in other receivables and rebate liability is included in accrued expenses within the accompanying condensed consolidated balance sheets. As of March 31, 2023 and June 30, 2022, the allowance for sales discounts was $12,946 and $17,632, respectively. The allowance for sales discounts is included in trade accounts receivable, less allowance for doubtful accounts in the accompanying condensed consolidated balance sheets. The following table disaggregates revenue by major product category for the three and nine months ended March 31: Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Physical Therapy and Rehabilitation Products $ 4,735,741 $ 4,810,043 $ 17,399,296 $ 16,934,423 Orthopedic Soft Bracing Products 4,476,849 5,476,469 14,698,238 16,126,728 Other 23,447 29,741 74,260 85,850 $ 9,236,037 $ 10,316,253 $ 32,171,794 $ 33,147,001 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2023 | |
Presentation and Summary of Significant Accounting Policies | |
Business [Policy Text Block] | Business Dynatronics Corporation ("Company," "Dynatronics") is a leading medical device company committed to providing high-quality restorative products designed to accelerate achieving optimal health. The Company designs, manufactures, and sells a broad range of products for clinical use in physical therapy, rehabilitation, orthopedics, pain management, and athletic training. Through its distribution channels, Dynatronics markets and sells to orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, and hospitals. |
Reverse Stock Split [Policy Text Block] | Reverse Stock Split On November 17, 2022, the Company's shareholders approved Articles of Amendment to the Company's Amended and Restated Articles of Incorporation (the "Articles of Amendment") to effect a reverse stock split at a ratio in the range of 1-for-2 to 1-for-5, with such ratio to be determined in the discretion of the Company's board of directors and with such reverse stock split to be effected at such time and date, if at all, as determined by the Company's board of directors in its sole discretion. Thereafter, the Company's Board of Directors set the split ratio in the reverse stock split at 1-for-5 and approved and authorized the filing of the Articles of Amendment to effect the reverse stock split with the Utah Department of Commerce, Division of Corporations and Commercial Code. The Articles of Amendment and reverse stock split became effective at 5:00 p.m. Eastern Standard Time on February 1, 2023. At the effective time, every five issued and outstanding shares of common stock were converted into one share of common stock, with any fractional shares resulting from the reverse stock split rounded up to the nearest whole share. The reverse stock split did not affect the Company's authorized shares of common stock or preferred stock, which remained at 100,000,000 and 50,000,000 shares, respectively. The par value of each share of common stock remained unchanged. Proportionate adjustments were made to the per share exercise price and/or the number of shares issuable upon the exercise or vesting of all stock options, restricted stock and warrants outstanding at February 1, 2023, which resulted in a proportional decrease in the number of shares of the Company's common stock reserved for issuance upon exercise or vesting of such stock options, restricted stock and warrants, and, in the case of stock options and warrants, a proportional increase in the exercise price of all such stock options and warrants. Additionally, Unless noted, all common shares and per share amounts contained in the condensed consolidated financial statements and management's discussion and analysis have been retroactively adjusted to reflect a one-for-five reverse stock split. |
Basis of Presentation [Policy Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements (the "Condensed Consolidated Financial Statements") have been prepared by the Company in accordance with generally accepted accounting principles in the United States ("GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. As such, these Condensed Consolidated Financial Statements should be read in conjunction with the Company's audited financial statements and accompanying notes included in its Annual Report on Form 10K for the fiscal year ended June 30, 2022 (the "Annual Report") filed with the SEC on September 22, 2022. The Condensed Consolidated Balance Sheet at June 30, 2022, has been derived from the Annual Report. The accounting policies followed by the Company are set forth in Part II, Item 8, Note 1, Basis of Presentation and Summary of Accounting Policies, of the Notes to Financial Statements included in the Company's Annual Report. In the opinion of management, the Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company's financial position as of March 31, 2023 and its results of operations and its cash flows for the periods presented. The results of operations for the first nine months of the fiscal year are not necessarily indicative of results for the full year or any future periods. The Company's fiscal year begins on July 1 and ends on June 30 and references made to "fiscal year 2023" and "fiscal year 2022" refer to the Company's fiscal year ending June 30, 2023 and the fiscal year ended June 30, 2022, respectively. |
Use of Estimates [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions. |
Employee Retention Credit [Policy Text Block] | Employee Retention Credit The Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") provided an employee retention credit which was a refundable tax credit against certain employment taxes. The Consolidated Appropriations Act extended and expanded the availability of the employee retention credit through June 30, 2021. Subsequently, the American Rescue Plan Act of 2021 extended the availability of the employee retention credit through December 31, 2021. This new legislation amended the employee retention credit to be equal to 70% of qualified wages paid to employees after December 31, 2020, and before January 1, 2022. During calendar year 2021, a maximum of $10,000 in qualified wages for each employee per qualifying calendar quarter may be counted in determining the 70% credit. Therefore, the maximum tax credit that can be claimed by an eligible employer is $7,000 per employee per qualifying calendar quarter of 2021. The Company qualifies for the employee retention credit for quarters that experience a significant decline in gross receipts, defined as quarterly gross receipts that are less than 80 percent of its gross receipts for the same calendar quarter in 2019. The Infrastructure Investment and Jobs Act retroactively ended the employee retention credit as of September 30, 2021. The Company qualified for the credit beginning on January 1, 2021 and received credits for qualified wages through September 30, 2021. During the quarter ended September 30, 2021, the Company recorded an employee retention credit totaling $1,143,000, of which, $97,000, $103,000, and $943,000 was recorded within cost of sales, selling, general, and administrative, and other income, respectively, on the Company's condensed consolidated statements of operations. |
Other Receivables [Policy Text Block] | Other Receivables Other receivables consist of amounts due from our contract manufacturer for raw materials components provided for use in the production of our products. Payments are due from our contract manufacturer based on the usage of raw material components. |
Recent Accounting Pronouncements [Policy Text Block] | Recent Accounting Pronouncements In August 2020, the FASB issued ASU 202006, Debt- Debt with Conversion and Other Options (Subtopic 47020) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 81540): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Inventories | |
Inventories [Table Text Block] | March 31, 2023 June 30, 2022 Raw materials $ 5,548,618 $ 6,536,951 Work in process 98,619 313,549 Finished goods 4,434,840 5,599,997 Inventory reserve (378,964 ) (379,205 ) $ 9,703,113 $ 12,071,292 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Revenue | |
Revenue [Table Text Block] | Three Months Ended March 31, Nine Months Ended March 31, 2023 2022 2023 2022 Physical Therapy and Rehabilitation Products $ 4,735,741 $ 4,810,043 $ 17,399,296 $ 16,934,423 Orthopedic Soft Bracing Products 4,476,849 5,476,469 14,698,238 16,126,728 Other 23,447 29,741 74,260 85,850 $ 9,236,037 $ 10,316,253 $ 32,171,794 $ 33,147,001 |
Presentation and Summary of S_2
Presentation and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Mar. 31, 2023 | Nov. 17, 2022 | Jun. 30, 2022 | |
Common stock shares authorised | 100,000,000 | 100,000,000 | ||
Reverse stock split | one-for-five | |||
Unusual risk or uncertainty, impact | This new legislation amended the employee retention credit to be equal to 70% of qualified wages paid to employees after December 31, 2020, and before January 1, 2022. During calendar year 2021, a maximum of $10,000 in qualified wages for each employee per qualifying calendar quarter may be counted in determining the 70% credit. | |||
Tax credit carryforward | $ 7,000 | |||
Employee retention credit | $ 1,143,000 | |||
Maximum [Member] | ||||
Common stock shares authorised | 100,000,000 | |||
Minimum [Member] | ||||
Common stock shares authorised | 50,000,000 | |||
Cost of Sales [Member] | ||||
Employee retention credit | 97,000 | |||
Selling, General, and Administrative Expenses [Member] | ||||
Employee retention credit | 103,000 | |||
Other Income [Member] | ||||
Employee retention credit | $ 943,000 |
Net Loss per Common Share (Narr
Net Loss per Common Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share | 1,555,615 | 1,562,900 | 1,562,900 | 1,555,233 |
Convertible Preferred Stock (Na
Convertible Preferred Stock (Narrative) (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2022 | |
Preferred stock outstanding | 3,351,000 | 3,351,000 |
Common stock upon conversion of preferred stock | 670,200 | |
Dividend rate | 8% | |
Preferred stock dividends | $ 174,873 | |
Common stock shares issued | 88,762 | |
Series A Preferred [Member] | ||
Preferred stock outstanding | 1,992,000 | |
Dividend rate | 8% | |
Series B Preferred [Member] | ||
Preferred stock outstanding | 1,359,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Inventories | ||
Raw materials | $ 5,548,618 | $ 6,536,951 |
Work in process | 98,619 | 313,549 |
Finished goods | 4,434,840 | 5,599,997 |
Inventory reserve | (378,964) | (379,205) |
Inventories, net | $ 9,703,113 | $ 12,071,292 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
RelatedParty Transactions | ||||
Related-party transactions | $ 249,366 | $ 248,952 | $ 748,098 | $ 746,858 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) | Mar. 31, 2023 | Jun. 30, 2022 |
Revenue | ||
Rebate receivable (liability) | $ 5,612 | $ (217,158) |
Allowance for sales discounts | $ 12,946 | $ 17,632 |
Revenue - Schedule of Revenue (
Revenue - Schedule of Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Net Sales | $ 9,236,037 | $ 10,316,253 | $ 32,171,794 | $ 33,147,001 |
Physical Therapy and Rehabilitation Products [Member] | ||||
Net Sales | 4,735,741 | 4,810,043 | 17,399,296 | 16,934,423 |
Orthopedic Soft Bracing Products [Member] | ||||
Net Sales | 4,476,849 | 5,476,469 | 14,698,238 | 16,126,728 |
Other [Member] | ||||
Net Sales | $ 23,447 | $ 29,741 | $ 74,260 | $ 85,850 |