$TRCK

Track Group, Inc.

CIK:0001045942|SEC Filings

Condensed Consolidated Statements of Operations And Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Revenues	$ 9,085,336	$ 9,091,442	$ 27,146,959	$ 26,112,091
Cost of revenue:
Monitoring, products and other related services	3,917,964	3,765,700	11,704,905	10,789,484
Depreciation & amortization included in cost of revenue	931,653	734,301	2,447,493	2,192,857
Total cost of revenue	4,849,617	4,500,001	14,152,398	12,982,341
Gross profit	4,235,719	4,591,441	12,994,561	13,129,750
Operating expense:
General & administrative	2,232,515	2,078,417	6,706,694	6,636,680
Selling & marketing	870,500	858,789	2,739,434	2,724,721
Research & development	651,205	675,861	2,044,659	2,095,901
Depreciation & amortization	231,650	227,568	687,723	682,506
Total operating expense	3,985,870	3,840,635	11,548,038	12,206,291
Operating income (loss)	249,849	750,806	1,446,523	923,459
Interest income	0	0	1,077	0
Interest expense	(786,003)	(568,536)	(2,026,740)	(1,703,339)
Currency exchange rate gain (loss)	(656,128)	1,253,726	(742,055)	(210,708)
Gain on troubled debt restructuring	23,464,004	0	23,464,004	0
Warrant liability issuance costs	22,539	(0)	22,539	(0)
Revaluation of warrant liability	(205,031)	(0)	(205,031)	(0)
Total other income (expense)	22,204,365	685,190	20,878,778	(1,914,047)
Income (loss) before income taxes	22,454,214	1,435,996	22,325,301	(990,588)
Income tax expense (benefit)	11,193	1,716	79,009	103,097
Net income (loss) attributable to common shareholders	22,443,021	1,434,280	22,246,292	(1,093,685)
Foreign currency translation adjustments	480,720	(526,580)	582,821	159,480
Comprehensive income (loss)	$ 22,923,741	$ 907,700	$ 22,246,230	$ 1,028,226
Net income (loss) per share (in dollars per share)	$ 0.69	$ 0.12	$ 1.19	$ (0.09)
Weighted average shares outstanding (in shares)	32,342,689	11,863,758	18,690,068	11,863,758
Net income (loss) per share (in dollars per share)	$ 0.68	$ 0.12	$ 1.18	$ (0.09)
Weighted average shares outstanding (in shares)	32,845,437	11,863,758	18,857,650	11,863,758
Track Group Chile [Member]
Operating expense:
Loss on sale of subsidiary	$ 0	$ 0	$ (630,472)	$ 66,483
Release of cumulative translation adjustment for sale of subsidiary	(0)	(0)	582,883	(1,390,913)
Equity adjustment for sale of subsidiary	0	0	0	571,518
Monitoring and Other Related Services [Member]
Revenue:
Revenues	8,507,111	8,071,416	25,581,618	24,380,699
Product Sales and Other [Member]
Revenue:
Revenues	$ 578,225	$ 1,020,026	$ 1,565,341	$ 1,731,392

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income (loss)	$ 22,246,292	$ (1,093,685)
Adjustment to Reconcile Net Income to Cash Provided by (Used in) Operating Activity [Abstract]
Depreciation and amortization	3,135,216	2,875,363
Credit losses	270,925	354,661
Sales allowance	10,000	(60,000)
Allowance for obsolete inventory	(15,636)	4,513
Deferred Taxes	2	16,484
Loss on monitoring equipment included in cost of revenue	200,740	268,217
Gain on troubled debt restructuring	(23,464,004)	0
Amortization of debt issuance costs	131,964	61,891
Interest added to loan payable	90,514	0
Foreign currency exchange (gain) loss	742,055	210,708
Right of use assets/liabilities	5,496	5,390
Loss on disposal of assets	0	397
Revaluation of warrant liability	(205,031)	(0)
Adjustment to Reconcile Net Income to Cash Provided by (Used in) Operating Activity, Increase (Decrease) in Operating Capital [Abstract]
Accounts receivable, net	1,517,983	(1,831,773)
Inventories, net	(120,904)	(627,485)
Current assets held for sale	0	719,201
Prepaid expense, deposits and other assets	(278,211)	(134,165)
Noncurrent assets	0	(10,614)
Accounts payable	(407,972)	887,560
Accrued liabilities	1,268,358	2,016,556
Current liabilities held for sale	0	(732,028)
Other current liabilities	0	58,246
Net cash provided by operating activities	4,497,315	3,055,920
Purchase of property and equipment	(88,848)	(176,928)
Capitalized software	(2,352,959)	(1,449,047)
Purchase of monitoring equipment and parts	(880,851)	(1,448,278)
Net cash used in investing activities	(3,322,658)	(2,325,538)
Proceeds from loan payable	21,000,000	0
Principal payments on long-term debt	(23,520,000)	(11,399)
Proceeds from Issuance or Sale of Equity	10,312,053	0
Payment of stock and warrant issuance costs	(2,357,387)	0
Payment of deferred financing fees	(2,303,803)	(52,440)
Net cash used in financing activities	3,130,863	(63,839)
Effect of exchange rate changes on cash	(15,045)	(337,439)
Net decrease in cash	4,290,475	329,104
Cash, beginning of period	4,098,114	4,581,625
Cash, end of period	8,388,589	4,910,729
Cash paid for interest	221,211	48,936
Cash paid for taxes	92,846	92,107
Noncash Investing and Financing Items [Abstract]
Issuance costs in accounts payable	2,262,500	0
Deferred financing fees in accounts payable	234,899	0
Deferred financing fees in exchange for a long term liability	750,000	0
Deferred financing fees in exchange for liability warrants	755,268	0
Monitoring Equipment [Member]
Noncash Investing and Financing Items [Abstract]
Purchase of monitoring equipment in accounts payable	64,423	0
Capitalized Software [Member]
Noncash Investing and Financing Items [Abstract]
Purchase of monitoring equipment in accounts payable	101,571	0
Property and Equipment [Member]
Noncash Investing and Financing Items [Abstract]
Purchase of monitoring equipment in accounts payable	5,571	0
Track Group Chile [Member]
Adjustment to Reconcile Net Income to Cash Provided by (Used in) Operating Activity [Abstract]
Loss on sale of subsidiary	(630,472)	66,483
Adjustment to Reconcile Net Income to Cash Provided by (Used in) Operating Activity, Increase (Decrease) in Operating Capital [Abstract]
Proceeds from sale of subsidiary, net of cash included in sale	$ 0	$ 748,715

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2026	Sep. 30, 2025
Current assets:
Cash	$ 8,388,589	$ 4,098,114
Accounts receivable, net of allowance for credit losses of $876,645 and $596,059, respectively	4,657,001	6,455,910
Prepaid expense and deposits	401,241	353,319
Inventory, net of reserves of $45,899 and $61,535, respectively	610,004	473,464
Total current assets	14,056,835	11,380,807
Intangible assets, net of accumulated amortization of $23,199,268 and $21,616,041, respectively	14,263,992	13,958,773
Goodwill	8,310,012	8,299,941
Other assets, net	1,522,988	1,061,507
Total assets	42,884,890	40,303,520
Current liabilities:
Accounts payable	5,395,137	3,709,653
Accrued liabilities	1,844,294	4,886,603
Total current liabilities	7,239,431	8,596,256
Long-term debt, net of current portion	17,582,535	42,720,944
Long-term liabilities	1,117,236	529,265
Warrant liability	550,237	0
Total liabilities	26,489,439	$ 51,846,465
Commitments and Contingencies
Equity [Abstract]
Common Stock, Shares, Issued (in shares)	41,335,187	11,863,758
Common stock, $0.0001 par value: 60,000,000 shares authorized; 41,335,187 and 11,863,758 shares outstanding, respectively	$ 4,134	$ 1,186
Preferred stock	0	0
Paid in capital	308,289,764	302,600,546
Accumulated deficit	(292,900,790)	(315,147,082)
Accumulated other comprehensive income (loss)	1,002,343	1,002,405
Total equity (deficit)	16,395,451	(11,542,945)
Total liabilities and stockholders’ equity (deficit)	42,884,890	40,303,520
Series A Convertible Preferred Stock [Member]
Equity [Abstract]
Preferred stock	0	0
Property, Plant, and Equipment, Excluding Monitoring Equipment [Member]
Current assets:
Property and equipment	546,130	497,889
Monitoring Equipment [Member]
Current assets:
Property and equipment	$ 4,184,933	$ 5,104,603