ReposiTrak, Inc.
For the period ended Mar 31, 2026. Filed May 14, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 14, 2026
TRAK$6.76-2.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-12-31; filed 2026-02-17.
0001437749-26-004395
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-14.
0001437749-26-017105
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 101 previous paragraphs and 107 current paragraphs.
71 unchanged; 22 reworded; 14 added; 6 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 34 previous and 31 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
FSMA 204 requires impacted entities to establish traceability programs capable of capturing, creating, maintaining, and sharing specified Key Data Elements (“KDEs”) at defined Critical Tracking Events (“CTEs”) throughout the supply chain. These records must be retained for a minimum of two years and be retrievable within 24 hours upon request by the FDA. Compliance necessitates the management of substantial volumes of supply chain data across a highly fragmented network of more than one million facilities.
Current report
In March 2025, the FDA extended the compliance deadline for FSMA 204 by 30 months to July 20, 2028. Despite this extension, adoption of traceability solutions continues to accelerate due to commercial and competitive pressures. Several major retailers have announced traceability requirements that exceed the scope of FSMA 204, including requirements for additional data elements, application across all food categories (not limited to the FTL), and implementation timelines preceding FDA enforcement.
Current report
While the FTL currently defines the regulatory scope, the FDA has indicated that it views these requirements as foundational and encourages broader, industry-wide adoption. Early indicators suggest the industry is moving toward comprehensive traceability across all food products.
Current report
Traceability is fundamentally a supply chain data management challenge, which aligns with the Company’s core competencies. The Company has developed the ReposiTrak Traceability Network (“RTN”), a scalable, cloud-based solution designed to facilitate compliant traceability through low-cost, rapid deployment across supplier, distributor, and retailer networks. The RTN connects thousands of supply chain participants and is designed to support end-to-end traceability, improve recall responsiveness, and enhance food safety outcomes.
Current report
Patent-Pending Technology
Current report
The Company has developed proprietary, patent-pending technologies designed to address critical challenges associated with large-scale traceability data management. These innovations focus on (i) the automated detection and correction of errors in supply chain traceability data and (ii) the generation of compliant traceability records without reliance on case-level scanning or probabilistic methods.
Current report
The first patent-pending technology relates to the use of advanced algorithms and machine learning techniques to identify inconsistencies, omissions, and inaccuracies within traceability datasets and to automatically correct such errors in real time. This capability is intended to materially improve data integrity, reduce manual intervention, and increase confidence in compliance with regulatory requirements.
Current report
The second patent-pending technology relates to the Company’s ability to generate end-to-end traceability records across distribution environments without requiring physical scanning of individual cases. This approach leverages system-level data integration and validation techniques to create compliant Key Data Element records at each Critical Tracking Event, enabling scalable deployment in high-volume distribution operations.
Current report
These patent-pending innovations are integral to the Company’s traceability platform and are designed to enhance scalability, reduce implementation complexity, and differentiate the Company’s offering in a rapidly evolving regulatory and commercial environment.
Current report
Revenue was $5,883,198 and $5,913,732 for the three months ended March 31, 2026 and 2025, respectively, a 1% decrease year-over-year. The decrease in revenue was due to the timing of a large increase in onboarding fees that occurred in fiscal 2025 that did not occur in the same period of fiscal 2026 offset partially by growth in all lines of business.
Current report
General and administrative expense was $1,376,346 and $1,455,602 for the three months ended March 31, 2026 and 2025, respectively, a 5% decrease. The decrease in general and administrative expense was due to reduction of administrative headcount and associated costs, timing of renewal fees, lower stock compensation costs, and lower lease costs.
Current report
Cash and cash equivalents was $26,409,558 and $28,568,805 at March 31, 2026 and June 30, 2025, respectively. This $2,159,247 decrease is primarily the result of a note receivable issued to SPAR Marketing offset by higher revenue and the corresponding cash receipts.
Current report
On March 17, 2026, the Company, through its subsidiary PC Group Inc., entered into a financing arrangement with SPAR Marketing Force, Inc. providing up to $4.0 million of funding, of which $3.0 million has been advanced. The arrangement provides for interest income at 8.0% and includes additional return components in the form of equity consideration and contingent price protection provisions. These features may increase the effective yield on the loan but also introduce variability in expected returns and earnings due to potential fair value adjustments and contingent cash flows. As a result, the Company's future results of operations may be impacted by changes in the market price of SPAR Group, Inc. common stock and the timing and issuance of equity consideration.
Current report
The Company is currently evaluating the accounting treatment of these features, including potential derivative accounting. The ultimate impact on earnings may vary based on future equity pricing and market conditions. The loan is unsecured, and the Company is exposed to credit risk associated with the Borrower's financial condition.
Removed paragraphs (6)
Previous report
On January 20, 2023, the rule became effective and applies to any person or Company that manufactures, processes, packs or hold foods the FDA considers to be high risk for food borne illness, the so-called Food Traceability List (“FTL”). The FTL is comprised of 16 product categories of food, which represent thousands of products commonly sold in grocery and convenience stores, and all restaurants. As a result, every grocery distributor, wholesaler and retailer, and the food service supply chain, must now institute a traceability program that enables the capture, creation and sharing of specific Key Data Elements (“KDEs”) prescribed by the FDA and required for traceability, at each designated Critical Tracking Event (“CTE”) in the supply chain, for thousands of items.
Previous report
FSMA 204 requires the traceability data records to be stored for two years, and be retrievable such that specific data records can be presented within 24 hours of a request from the FDA. FSMA 204 is ultimately about supply chain data recording record keeping, resulting is an enormous amount of data to manage, across more than one million supply chain and retail facilities.
Previous report
In March 2025, the deadline for compliance with FSMA 204 was extended by 30 months to July 20, 2028. Nearly every company impacted will require some type of technical systems support to meet the requirement by this date. The food supply chain industry is moving toward traceability, driven by competitive pressures beyond regulatory deadlines. Major retailers have announced food traceability programs with more robust requirements than the FDA. While FSMA 204 requires traceability for certain foods included on the FTL, retailers have publicly communicated traceability requirements including:
Previous report
While the FTL includes thousands of product types, the FDA has made it clear in its communications that the list is only the beginning. The FDA states that it would “encourage the voluntary adoption of these practices industry-wide,” There are some strong early indications that the industry will move to complete traceability of all food products within the next few years.
Previous report
Traceability is, by definition, a supply chain data management issue, which is ReposiTrak’s core expertise. That is why we developed a traceability solution that is easy, inexpensive and meets FDA’s requirements. The ReposiTrak Traceability Network (“RTN”) is a growing traceability solution, connecting thousands of supplier locations to thousands of food wholesaler and retail locations, using low cost, easy to deploy technology, on the ReposiTrak platform. As the largest connected network of food suppliers, wholesalers and retailers in the world, the RTN is positioned to provide end-to-end traceability to provide a safe food supply chain, tighten controls on food waste, and implement a food recall response that saves lives and money.
Previous report
Cash was $28,706,493 and $28,568,805 at December 31, 2025 and June 30, 2025, respectively. This $137,688 increase is primarily the result of higher revenue and the corresponding cash receipts from customers who in many cases are required to pay annual subscriptions in advance generating higher cash balances in advance of higher revenue. It also includes higher earnings associated with a growing cash balance and the resulting interest income.
Reworded paragraphs (22)
Previous wording
On December 19, 2025, The Company's Board of Directors declared a quarterly cash dividend of $0.02 per share ($0.08 per year), payable on or about February 13, 2026 to shareholders of record as of December 31, 2025. Based on the closing prices on December 31, 2025, this represented an annual dividend yield of approximately 0.65%. Subsequent dividends will be paid within 45 days of each fiscal quarter end.
Current wording
On March 20, 2026, The Company's Board of Directors declared a quarterly cash dividend of $0.02 per share ($0.08 per year), payable on or about May 15, 2026 to shareholders of record as of March 31, 2026. Based on the closing prices on March 31, 2026, this represented an annual dividend yield of approximately 1.05%. Subsequent dividends will be paid within 45 days of each fiscal quarter end.
Previous wording
In 2020, the United States Food & Drug Administration (“FDA”) announced the “New Era of Smarter Food Safety” blueprint. It “outlines achievable goals to enhance traceability, improve predictive analytics, respond more rapidly to outbreaks, address new business models, reduce contamination of food, and foster the development of stronger food safety cultures.”
Current wording
In 2020, the United States Food and Drug Administration (“FDA”) announced the “New Era of Smarter Food Safety” blueprint, outlining objectives to enhance traceability, strengthen predictive analytics, accelerate outbreak response, address evolving business models, reduce food contamination, and promote a more robust food safety culture.
Previous wording
In November 2022, the FDA announced the final rule on the Food Safety Modernization Act Section 204(d) (“FSMA 204”) - Traceability for High-Risk Foods.
Current wording
In November 2022, the FDA issued the final rule under the Food Safety Modernization Act Section 204(d) (“FSMA 204”) relating to traceability for high-risk foods. The rule became effective on January 20, 2023, and applies broadly to entities that manufacture, process, pack, or hold foods designated on the FDA’s Food Traceability List (“FTL”). The FTL encompasses 16 food categories, representing thousands of products commonly distributed across grocery, convenience, and foodservice channels.
Previous wording
Cost of services and product support was $853,744 and $1,002,556 for the three months ended December 31, 2025 and 2024, respectively, a 15% decrease. This $148,812 decrease is primarily the result of certain development costs to be capitalized as part of significant enhancements being developed to our current platform of services as well as several new software programs to be released at a future date. The demand in traceability has required additional development of software used on the ReposiTrak platform in order to accurately meet the complex requirements of FSMA 204 in addition to further accelerate the systematic onboarding of customers with little if any human intervention.
Current wording
Cost of services and product support was $803,353 and $911,693 for the three months ended March 31, 2026 and 2025, respectively, a 12% decrease. This $108,340 decrease is primarily the result of certain development costs to be capitalized as part of significant enhancements being developed to our current platform of services as well as several new software programs to be released at a future date. The demand in traceability has required additional development of software used on the ReposiTrak platform in order to accurately meet the complex requirements of FSMA 204 in addition to further accelerate the systematic onboarding of customers with little if any human intervention.
Previous wording
Sales and marketing expense was $1,494,342 and $1,455,036 for the three months ended December 31, 2025 and 2024, respectively, a 3% increase. The increase in sales and marketing expense was primarily the result of higher sales commissions, travel expense, and investment in marketing for our suite of services. The increase in sales and marketing expense resulted from an increase in commissions paid due to higher sales and FSMA 204 traceability awareness marketing. We believe the uptick in marketing spending, excluding commissions and other variable costs due to higher sales, will flatten over time as awareness of the traceability regulatory deadline approaches and the industry continues to mandate early adoption.
Current wording
Sales and marketing expense was $1,356,865 and $1,408,861 for the three months ended March 31, 2026 and 2025, respectively, a 4% decrease. The decrease in sales and marketing expense was primarily the result of lower sales commissions in the fiscal quarter compared to the same period in the prior year and a decrease in headcount of marketing and marketing support personnel. We believe marketing spending, excluding commissions and other variable costs due to sales volumes, will flatten over time as awareness of the traceability regulatory deadline approaches and the industry continues to mandate early adoption.
Previous wording
Depreciation and amortization expense was $223,930 and $304,712 for the three months ended December 31, 2025 and 2024, respectively, a decrease of 27%. The decrease was due to certain leased assets obtained with financing arrangements becoming fully amortized.
Current wording
Depreciation and amortization expense was $95,414 and $328,723 for the three months ended March 31, 2026 and 2025, respectively, a decrease of 71%. The decrease was due to certain leased assets obtained with financing arrangements becoming fully amortized.
Previous wording
Net other income was $319,107 for the three months ended December 31, 2025, compared to net other income of $351,134 for the three months ended December 31, 2024. Other income decreased due to unrealized losses on certain investments offset by an increase in interest income attributable to earnings on fixed income instruments as a result in higher cash balances. In September 2024, the Federal Reserve began cutting interest rates, which reductions make it unlikely the Company will be able to maintain the same interest income on its existing cash balances without taking additional credit risk or increasing the total amount of cash held for investment.
Current wording
Net other income was $184,415 for the three months ended March 31, 2026, compared to net other income of $306,866 for the three months ended March 31, 2025. Other income decreased due to unrealized losses on certain investments offset by an increase in interest income attributable to earnings on fixed income instruments as a result in higher cash balances. In September 2024, the Federal Reserve began cutting interest rates, which reductions make it unlikely the Company will be able to maintain the same interest income on its existing cash balances without taking additional credit risk or increasing the total amount of cash held for investment.
Previous wording
Preferred dividends accrued on the Company’s Preferred Stock was $46,551 for the three months ended December 31, 2025 and $95,616 for the three months ended December 31, 2024. Dividends decreased due to the redemption and retirement of Preferred Stock since the inception of the redemption plan that commenced in fiscal 2024. Although no assurances can be given, the Company announced that it intends to redeem all of the Series B and B-1 Preferred on or before December 2026. Since inception, a total of 641,865 shares of Preferred Stock, including Series B and Series B-1 Preferred, at the redemption price of $10.70 per share, have been redeemed for a total of $6,867,956. The Company fully redeemed the Series B-1 Preferred during fiscal 2024. There is a total of $2.10 million of Series B Preferred remaining to be redeemed.
Current wording
Preferred dividends accrued on the Company’s Preferred Stock was $34,285 for the three months ended March 31, 2026 and $85,725 for the three months ended March 31, 2025. Dividends decreased due to the redemption and retirement of Preferred Stock since the inception of the redemption plan that commenced in fiscal 2024. Although no assurances can be given, the Company announced that it intends to redeem all of the Series B and B-1 Preferred on or before December 2026. Since inception, a total of 676,912 shares of Preferred Stock, including Series B and Series B-1 Preferred, at the redemption price of $10.70 per share, have been redeemed for a total of 7,242,958. The Company fully redeemed the Series B-1 Preferred during fiscal 2024. There is a total of $1.72 million of Series B Preferred remaining to be redeemed.
Previous wording
Comparison of the Six Months Ended December 31, 2025 to the Six Months Ended December 31, 2024.
Current wording
Comparison of the Nine Months Ended March 31, 2026 to the Nine Months Ended March 31, 2025.
Previous wording
Revenue was $5,856,811 and $5,490,908 for the three months ended December 31, 2025 and 2024, respectively, a 7% increase year-over-year. The increase in revenue was due to growth in recurring subscription revenue in all lines of business. These include compliance, supply chain and traceability. Growth in traceability is the result of growing industry and consumer response to food contaminations and food safety hazards, whether biological, chemical, physical, or allergenic. The risks have elevated regulatory requirements, documentation requisites, and principally has resulted in tighter mandates from the retailers to its suppliers. As more and more retailers, wholesalers and distributors mandate their requirements to suppliers, the Company continues to see a corresponding rise in demand for its services.
Current wording
Revenue was $17,711,476 and $16,845,782 for the nine months ended March 31, 2026 and 2025, respectively, a 5% increase year-over-year. The increase in revenue was due to growth in recurring subscription revenue in all lines of business. These include compliance, supply chain and traceability. Growth in traceability is the result of growing industry and consumer response to food contaminations and food safety hazards, whether biological, chemical, physical, or allergenic. The risks have elevated regulatory requirements, documentation requisites, and principally has resulted in tighter mandates from the retailers to its suppliers. As more and more retailers, wholesalers and distributors mandate their requirements to suppliers, the Company continues to see a corresponding rise in demand for its services.
Previous wording
Cost of services and product support was $1,707,896 and $1,861,775 for the six months ended December 31, 2025 and 2024, respectively, an 8% decrease. This $153,879 decrease is primarily the result of certain development costs capitalized as part of significant enhancements being developed to our current platform of services as well as several new software programs to be released at a future date. The demand in traceability has required additional development of software used on the ReposiTrak platform in order to accurately meet the complex requirements of FSMA 204 in addition to further accelerate the systematic onboarding of customers with little if any human intervention.
Current wording
Cost of services and product support was $2,511,249 and $2,773,468 for the nine months ended March 31, 2026 and 2025, respectively, a 9% decrease. This $262,219 decrease is primarily the result of certain development costs capitalized as part of significant enhancements being developed to our current platform of services as well as several new software programs to be released at a future date. The demand in traceability has required additional development of software used on the ReposiTrak platform in order to accurately meet the complex requirements of FSMA 204 in addition to further accelerate the systematic onboarding of customers with little if any human intervention.
Previous wording
Sales and marketing expense was $3,101,811 and $2,984,136 for the six months ended December 31, 2025 and 2024, respectively, a 4% increase. The increase in sales and marketing expense was primarily the result of higher sales commissions, travel expense, and investment in marketing for our suite of services. The increase in sales and marketing expense resulted from increased commissions paid due to higher sales and FSMA 204 traceability awareness marketing. We believe the uptick in marketing spending, excluding commissions and other variable costs due to higher sales, will flatten as awareness of the traceability regulatory deadline approaches and the industry continues to mandate early adoption.
Current wording
Sales and marketing expense was $4,458,676 and $4,392,997 for the nine months ended March 31, 2026 and 2025, respectively, a 1% increase. The increase in sales and marketing expense was primarily the result of higher sales commissions, travel expense, and investment in marketing for our suite of services. The increase in sales and marketing expense resulted from increased commissions paid due to higher sales and FSMA 204 traceability awareness marketing. We believe the uptick in marketing spending, excluding commissions and other variable costs due to higher sales, will flatten as awareness of the traceability regulatory deadline approaches and the industry continues to mandate early adoption.
Previous wording
General and administrative expense was $1,467,862 and $1,376,553 for the three months ended December 31, 2025 and 2024, respectively, a 7% increase. The increase in general and administrative expense was primarily due to higher employee benefit costs, general liability insurance, increases in D&O insurance due to a higher market cap, and higher payroll taxes due to an increase in commissions and other benefit programs.
Current wording
General and administrative expense was $4,216,435 and $4,124,706 for the nine months ended March 31, 2026 and 2025, respectively, a 2% increase. The increase in general and administrative expense was primarily due to higher employee benefit costs, general liability insurance, increases in D&O insurance due to a higher market cap, and higher payroll taxes due to an increase in commissions and other benefit programs.
Previous wording
Depreciation and amortization expense was $467,676 and $584,923 for the six months ended December 31, 2025 and 2024, respectively, a decrease of 20%. The decrease was due to certain leased assets obtained with financing arrangements becoming fully amortized.
Current wording
Depreciation and amortization expense was $563,090 and $913,646 for the nine months ended March 31, 2026 and 2025, respectively, a decrease of 38%. The decrease was due to certain leased assets obtained with financing arrangements becoming fully amortized.
Previous wording
Net other income was $694,762 for the six months ended December 31, 2025, compared to net other income of $686,228 for the six months ended December 31, 2024. Other income increased due to an increase in interest income attributable to earnings on fixed income instruments as a result in higher cash balances. In September 2024, the Federal Reserve began cutting interest rates, which reductions make it unlikely the Company will be able to maintain the same interest income on its existing cash balances without taking additional credit risk or increasing the total amount of cash held for investment.
Current wording
Net other income was $879,177 for the nine months ended March 31, 2026, compared to net other income of $993,094 for the nine months ended March 31, 2025. Other income decreased due to an decrease in interest income attributable to earnings on fixed income instruments as a result in declining interest rates. In September 2024, the Federal Reserve began cutting interest rates, which reductions make it unlikely the Company will be able to maintain the same interest income on its existing cash balances without taking additional credit risk or increasing the total amount of cash held for investment.
Previous wording
Preferred dividends accrued on the Company’s Preferred Stock was $105,368 for the six months ended December 31, 2025 and $203,498 for the six months ended December 31, 2024. Dividends decreased due to the redemption and retirement of Preferred Stock since the inception of the redemption plan that commenced in fiscal 2024. Although no assurances can be given, the Company announced that it intends to redeem all of the Series B and B-1 Preferred on or before December 2026. Since inception, a total of 641,865 shares of Preferred Stock, including Series B and Series B-1 Preferred, at the redemption price of $10.70 per share, have been redeemed for a total of $6,867,956. The Company fully redeemed the Series B-1 Preferred during fiscal 2024. There is a total of $2.10 million of Series B Preferred remaining to be redeemed.
Current wording
Preferred dividends accrued on the Company’s Preferred Stock was $139,653 for the nine months ended March 31, 2026 and $289,223 for the nine months ended March 31, 2025. Dividends decreased due to the redemption and retirement of Preferred Stock since the inception of the redemption plan that commenced in fiscal 2024. Although no assurances can be given, the Company announced that it intends to redeem all of the Series B and B-1 Preferred on or before December 2026. Since inception, a total of 676,912 shares of Preferred Stock, including Series B and Series B-1 Preferred, at the redemption price of $10.70 per share, have been redeemed for a total of $7,242,958. The Company fully redeemed the Series B-1 Preferred during fiscal 2024. There is a total of $1.72 million of Series B Preferred remaining to be redeemed.
Previous wording
Net cash provided by operating activities for the six months ended December 31, 2025 was $3,776,672 compared to net cash provided by operating activities of $5,328,630 for the six months ended December 31, 2024. Net cash provided by operating activities decreased 29% due principally to an increase in accounts receivable due to longer term contracts and an increase in prepaid expense and other assets. Noncash expense in the quarter increased by $55,470 in the six months ended December 31, 2025, compared to the six months ended December 31, 2024 as a result of additional bad debt expense and stock compensation expense partially offset by a decrease in depreciation and amortization expense.
Current wording
Net cash provided by operating activities for the nine months ended March 31, 2026 was $5,860,138 compared to net cash provided by operating activities of $6,763,371 for the nine months ended March 31, 2025. Net cash provided by operating activities decreased 13% due principally to an increase in accounts receivable due to longer term contracts and an increase in prepaid expense and other assets. Noncash expense in the quarter decreased by $148,124 in the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025 as a result of lower depreciation and amortization expenses partially offset by an increase in additional bad debt expense and stock compensation expense.
Previous wording
Net cash used in investing activities for the six months ended December 31, 2025 was $20,338 compared to net cash provided by investing activities of $18,869 for the six months ended December 31, 2024. This decrease in cash provided by investing activities for the six months ended December 31, 2025 was due the purchase of fixed assets and certain marketable securities.
Current wording
Net cash used in investing activities for the nine months ended March 31, 2026 was $3,051,666 compared to net cash provided by investing activities of $6,315 for the nine months ended March 31, 2025. This decrease in cash provided by investing activities for the nine months ended March 31, 2026 was due the issuance of notes receivable and the purchase of fixed assets and certain marketable securities.
Previous wording
Net cash used in financing activities totaled $3,618,646 for the six months ended December 31, 2025, compared to cash used in financing activities of $2,459,963 for the six months ended December 31, 2024. The increase in net cash used in financing activities is due to an increase in our buyback of Common Stock and by the continued redemption of Preferred Stock during the period.
Current wording
Net cash used in financing activities totaled $4,967,719 for the nine months ended March 31, 2026, compared to cash used in financing activities of $3,789,227 for the nine months ended March 31, 2025. The increase in net cash used in financing activities is due to an increase in our buyback of Common Stock partially offset by a decrease in the redemption of Preferred Stock during the period.
Previous wording
At December 31, 2025, the Company had positive working capital of $28,549,189 as compared with positive working capital of $28,154,682 at June 30, 2025. This $394,507 increase in working capital is primarily due to an increase in prepaid expense, other current assets, accounts receivables, and contract assets offset by an increase in accrued liabilities and deferred revenue. Cash and cash equivalents also increased due to cash receipts from customers in all lines of business which include compliance, supply chain and traceability who in most cases pay annually in advance for their subscription.
Current wording
At March 31, 2026, the Company had positive working capital of $26,336,048 as compared with positive working capital of $28,154,682 at June 30, 2025. This $1,818,634 decrease in working capital is primarily due to the issuance of notes receivable, an increase in accrued liabilities and deferred revenue offset by an increase in prepaid expense, other current assets, and accounts receivables. Cash and cash equivalents also decreased due to the issuance of notes receivable offset by an increase in cash receipts from customers in all lines of business.
Previous wording
Current assets totaled $34,969,896 as of December 31, 2025, as compared to $33,685,800 as of June 30, 2025. The increase in current assets is primarily attributable to the increase in cash and cash equivalents, accounts receivable, contract assets, and prepaid expenses and other current assets.
Current wording
Current assets totaled $33,102,985 as of March 31, 2026, as compared to $33,685,800 as of June 30, 2025. The decrease in current assets is primarily attributable to the decrease in cash and cash equivalents and increases in accounts receivable and prepaid expenses and other current assets.
Previous wording
Current liabilities totaled $6,420,707 as of December 31, 2025 as compared to $5,531,118 as of June 30, 2025. The increase in current liabilities is primarily attributable to the increase in accrued liabilities and deferred revenue offset partially by the decrease in accounts payable. As of December 31, 2025, the Company had zero bank debt.
Current wording
Current liabilities totaled $6,766,937 as of March 31, 2026 as compared to $5,531,118 as of June 30, 2025. The increase in current liabilities is primarily attributable to the increase in accrued liabilities and deferred revenue offset partially by the decrease in accounts payable and notes payable. As of March 31, 2026, the Company had zero bank debt.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Revenue was $11,828,278 and $10,932,050 for the six months ended December 31, 2025 and 2024, respectively, an 8% increase year-over-year. The increase in revenue was due to growth in recurring subscription revenue in all lines of business. These include compliance, supply chain and traceability. Growth in traceability is the result of growing industry and consumer response to food contaminations and food safety hazards, whether biological, chemical, physical, or allergenic. The risks have elevated regulatory requirements, documentation requisites, and principally has resulted in tighter mandates from the retailers to its suppliers. As more and more retailers, wholesalers and distributors mandate their requirements to suppliers, the Company continues to see a corresponding rise in demand for its services.
Previous report — wording carried elsewhere
General and administrative expense was $2,840,089 and $2,669,104 for the six months ended December 31, 2025 and 2024, respectively, a 6% increase. The increase in general and administrative expense was primarily due to higher employee benefit costs, general liability insurance, increases in D&O insurance due to a higher market cap, and higher payroll taxes due to an increase in commissions and other benefit programs.