On April 2, 2020, Dynatronics Corporation (\”Dynatronics\” or \”Company\”) issued a press release relating to its preliminary unaudited financial results for the fiscal third quarter ended March31, 2020, the Company\’s withdrawal of its previously announced sales guidance for 2020 given the everchanging environment, continued uncertainties due to the COVID-19 pandemic and actions taken by the Company to combat COVID-19. The full text of the press release is furnished herewith as Exhibit 99.1.

The information under this Item 2.02 and in Exhibit 99.1 is being furnished and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934 and is not to be incorporated by reference into any filing of the registrant under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof, regardless of any general incorporation language in any such filing, except as shall be expressly set forth by specific reference in such a filing.

Item 8.01 Other Events

Pre-release of Fiscal Third Quarter 2020 Results

On April 2, 2020, the Company announced that it expects unaudited third fiscal quarter ended March 31, 2020 net sales to be in the range of $13.6 million to $13.9 million, a 5% -7% decrease compared to $14.6 million in the third fiscal quarter of 2019. The decrease in net sales is due to an expected decline in sales of physical therapy and rehabilitation products as well as an immediate decline due to stay-at-home policies and restrictions in response to the COVID-19 pandemic.

The above estimates have been prepared by and are the responsibility of the Company’s management. The Company has not yet completed its closing process for the third quarter ended March 31, 2020. This information is preliminary, has not been audited and is subject to change upon completion of the Company’s closing procedures. Additional information and disclosure would be required for a more complete understanding of the Company’s financial position and results of operations as of and for the three and nine months ended March 31, 2020. Moreover, even if the Company’s actual results are consistent with these preliminary estimates, this information may not be indicative of results or developments in subsequent periods.

COVID-19 Extended Risks and Uncertainties

The Company has implemented guidelines and redundancies to promote employee health and wellness in order to meet its obligations as a manufacturer and infrastructure provider.

Due to the speed with which this situation is developing and the uncertainty regarding its extent or duration, the Company is not able to estimate the impact of COVID-19 on its revenues, results of operations, and liquidity, or on its outlook for the fourth quarter of fiscal year 2020, or the first or second quarters of fiscal year 2021 or beyond, and this impact could be material.

Item 9.01 Financial Statements and Exhibits

DYNATRONICS CORP Exhibit
EX-99.1 2 dynt_ex991.htm PRESS RELEASE dynt_ex991   Exhibit 99.1       Dynatronics Corporation Provides Preliminary Third Quarter 2020 Sales And Withdraws Fiscal Year 2020 Outlook Due To COVID-19 Impact     Eagan,…
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About Dynatronics Corporation (NASDAQ:DYNT)

Dynatronics Corporation is a manufacturer and distributor of physical medicine products. The Company’s products include a line of medical equipment for physical medicine applications, including therapy devices, medical supplies and soft goods, treatment tables and rehabilitation equipment. Its products are used by physical therapists, chiropractors, sports medicine practitioners, podiatrists, physicians and other physical medicine professionals. Its physical medicine products include therapeutic modalities, such as Dynatron Solaris, including electrotherapy and thermal therapy, and 25 Series, including electrotherapy and ultrasound; manufactured capital products, including traction systems and wood furniture; manufactured supplies, including cold packs, straps, wedges, bolsters and mats; distributed capital products, including hydrotherapy, weight training equipment and pilates, and distributed supplies, including clinical accessories, sports med and taping products, lotions and gels.