TRCK 8-K

Track Group, Inc. (TRCK)

8-K 2026-08-14 For: 2026-08-14

View Original

Added on August 14, 2026

Delaware		87-0543981
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

Exhibit No.	Description
99.1	Press Release dated, August 14, 2026
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

	TRACK GROUP, INC.

Date: August 14, 2026	By:	/s/ James A. Berg
		James A. Berg
		Chief Financial Officer

	(Unaudited)
	June 30,			September 30,
	2026			2025
Assets
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
Property and equipment, net of accumulated depreciation of $320,909 and $294,873, respectively		546,130			497,889
Monitoring equipment, net of accumulated depreciation of $6,627,928 and $5,896,304, respectively		4,184,933			5,104,603
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

Liabilities and Stockholders’ Equity (Deficit)
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			-
Total liabilities		26,489,439			51,846,465

Stockholders’ equity (deficit):
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, $0.0001 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		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

	Three Months Ended						Nine Months Ended
	June 30,			June 30,			June 30,			June 30,
	2026			2025			2026			2025
Revenue:
Monitoring and other related services	$	8,507,111		$	8,071,416		$	25,581,618		$	24,380,699
Product sales and other		578,225			1,020,026			1,565,341			1,731,392
Total revenue		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
(Gain) loss on sale/dissolution of subsidiary		-			-			(630,472	)		66,483
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

Other income (expense):
Interest income		-			-			1,077			-
Interest expense, net		(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			-			23,464,004			-
Warrant liability issuance costs		(22,539	)		-			(22,539	)		-
Revaluation of warrant liability		205,031			-			205,031			-
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		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	)
Release of cumulative translation adjustment for sale of subsidiary		-			-			(582,883	)		1,390,913
Equity adjustment for sale of subsidiary		-			-			-			571,518
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 – basic:
Net income (loss) per share	$	0.69		$	0.12		$	1.19		$	(0.09	)
Weighted average shares outstanding		32,342,689			11,863,758			18,690,068			11,863,758

Net income (loss) per share – diluted:
Net income (loss) per share	$	0.68		$	0.12		$	1.18		$	(0.09	)
Weighted average shares outstanding		32,845,437			11,863,758			18,857,650			11,863,758

	Nine Months Ended June 30,
	2026			2025
Cash flows provided by operating activities:
Net income (loss)	$	22,246,292		$	(1,093,685	)
Adjustments to reconcile net income to net cash provided by operating activities:
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	)		-
Amortization of debt issuance costs		131,964			61,891
Interest added to loan payable		90,514			-
Foreign currency exchange (gain) loss		742,055			210,708
Right of use assets/liabilities		5,496			5,390
Loss on disposal of assets		-			397
(Gain) loss on sale/dissolution of subsidiary		(630,472	)		66,483
Revaluation of warrant liability		(205,031	)		-
Change in assets and liabilities:
Accounts receivable, net		1,517,983			(1,831,773	)
Inventories, net		(120,904	)		(627,485	)
Current assets held for sale		-			719,201
Prepaid expense, deposits and other assets		(278,211	)		(134,165	)
Noncurrent assets		-			(10,614	)
Accounts payable		(407,972	)		887,560
Accrued liabilities		1,268,358			2,016,556
Current liabilities held for sale		-			(732,028	)
Other current liabilities		-			58,246
Net cash provided by operating activities		4,497,315			3,055,920

Cash flow used in investing activities:
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	)
Proceeds from sale of subsidiary, net of cash included in sale		-			748,715
Net cash used in investing activities		(3,322,658	)		(2,325,538	)

Cash flow provided by financing activities:
Proceeds from loan payable		21,000,000			-
Principal payments on long-term debt		(23,520,000	)		(11,399	)
Proceeds from common stock and warrants		10,312,053			-
Payment of stock and warrant issuance costs		(2,357,387	)
Payment of deferred financing fees		(2,303,803	)		(52,440	)
Net cash provided by financing activities		3,130,863			(63,839	)

Effect of exchange rate changes on cash		(15,045	)		(337,439	)

Net increase in cash		4,290,475			329,104
Cash and cash held for sale, 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 activities
Purchase of monitoring equipment in accounts payable	$	64,423		$	-
Purchase of capitalized software in accounts payable	$	101,571		$	-
Purchase of property and equipment in accounts payable	$	5,571		$	-
Noncash financing activities
Issuance costs in accounts payable	$	2,262,500		$	-
Deferred financing fees in accounts payable	$	234,899		$	-
Deferred financing fees in exchange for a long-term liability	$	750,000		$	-
Deferred financing fees in exchange for liability warrants	$	755,268		$	-
Interest accrued to loan payable	$	90,514		$	-

	Three Months Ended June 30,						Nine Months Ended June 30,
	2026			2025			2026			2025
Non-GAAP Adjusted EBITDA
Net Income (loss) attributable to common shareholders	$	22,443		$	1,434		$	22,246		$	(1,094	)
Interest expense, net		786			569			2,026			1,703
Depreciation and amortization		1,163			962			3,135			2,875
Income taxes (1)		11			2			79			103
Foreign exchange (gain)/loss		656			(1,254	)		742			211
Loss on sale of subsidiary		-			-			(630	)		66
Gain on troubled debt restructuring		(23,464	)		-			(23,464	)		-
Other charges, net (2)		(124	)		-			45			267
Non-GAAP Adjusted EBITDA	$	1,471		$	1,713		$	4,179		$	4,131
Non-GAAP Adjusted EBITDA, percent of revenue		16.2	%		18.8	%		15.3	%		15.8	%