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Track Group Inc (TRCK+1.42%). has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenue to $8,668,328 from $8,966,972 in the same quarter the previous year. This decrease is attributed to a reduction in monitoring revenues primarily from clients in Michigan and Virginia, as well as the sale of the Chilean subsidiary.
Cost of revenue for the quarter was $4,243,986, representing 49% of sales, compared to 53% in the same quarter of the previous year. This decrease is due to lower device repair, communication, and monitoring center costs.
The company reported a gross profit of $4,424,342 for the quarter, compared to $4,203,520 in the previous year, with the increase attributed to decreased operating costs.
General and administrative expenses decreased to $2,431,118 from $2,757,887, primarily due to reduced payroll and benefits following the sale of the Chile subsidiary.
Selling and marketing expenses increased to $901,189 from $706,531, largely due to higher bad debt expenses and increased payroll costs.
Track Group recorded a net loss of $2,010,849 for the quarter, compared to a net income of $461 in the previous year. The increase in net loss is largely due to an increase in currency exchange rate loss.
The company had cash used in operating activities of $217,292, compared to cash provided by operating activities of $642,325 in the previous year.
Track Group completed the sale of its Chile subsidiary, resulting in a pre-tax loss of $66,483. The sale is not considered a strategic shift in operations.
The filing also details the company's debt obligations, including an amended facility agreement with Conrent Invest S.A., extending the maturity date to July 1, 2027, with an escalating interest rate.
Track Group does not anticipate cash dividend payments to common stockholders in the near future.
The company continues to focus on expanding its device-agnostic platform and enhancing its sales and marketing efforts to improve customer acquisition and retention.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Track Group Inc quarterly 10-Q report dated February 7, 2025. To report an error, please email earnings@qz.com.