Delaware
(State or other
jurisdiction of incorporation or organization)
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87-0543981
(IRS Employer
Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of exchange on which registered
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Common
Stock, par value $0.0001 per share
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TRCK
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OTCQX
Marketplace
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Exhibit No.
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Description
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Press Release,
dated January 13, 2020.
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TRACK GROUP, INC. |
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Date: January
16, 2020
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By:
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/s/ Peter K. Poli
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Peter K.
Poli
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Chief Financial
Officer
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FY
2018
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FY
2019
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FY
2019 (a)
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FY
2020
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Revenue:
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$30.6M
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$34.0M
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$33-37M
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$36-40M
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Adjusted
EBITDA Margin:
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19.2%
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21.9%
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18-23%
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21-26%
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2019
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2018
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Cash
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$6,896,711
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$5,446,557
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Accounts
receivable, net of allowance for doubtful accounts of $2,454,281
and
$3,152,966,
respectively
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6,763,236
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5,978,896
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Note receivable,
net of allowances for doubtful accounts of $234,733, at September
30, 2018
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-
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-
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Prepaid expense and
other
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1,339,465
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1,270,043
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Inventory, net of
reserves of $26,934, respectively
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274,501
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277,119
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Total current
assets
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15,273,913
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12,972,615
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Property and
equipment, net of accumulated depreciation of $2,248,913
and$1,999,222,
respectively
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675,037
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745,475
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Monitoring
equipment, net of accumulated amortization of $6,322,768 and
$5,325,654, respectively
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2,624,900
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3,162,542
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Intangible assets,
net of accumulated amortization of $14,157,090 and $12,016,512,
respectively
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21,955,679
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23,253,054
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Goodwill
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8,187,911
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8,076,759
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Deferred tax
assets
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540,563
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-
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Other
assets
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124,187
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145,839
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Total
assets
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$49,382,190
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$48,356,284
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Accounts
payable
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2,628,003
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2,518,030
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Accrued
liabilities
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12,969,489
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10,333,103
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Current portion of
long-term debt
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33,827,689
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30,437,810
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Total current
liabilities
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50,284,388
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43,288,943
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Long-term debt, net
of current portion
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-
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3,428,975
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Total
liabilities
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50,284,388
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46,717,918
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Commitments and
contingencies
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-
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-
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Stockholders’ equity (deficit):
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Common stock,
$0.0001 par value: 30,000,000 shares authorized; 11,401,650 shares
outstanding, respectively
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1,140
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1,140
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Series A
Convertible Preferred stock, $0.0001 par value: 1,200,000 shares
authorized; 0 shares outstanding
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-
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-
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Paid in
capital
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302,250,556
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302,102,866
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Accumulated
deficit
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(302,152,292)
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(299,495,370)
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Accumulated other
comprehensive loss
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(1,001,602)
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(970,270)
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Total equity
(deficit)
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(902,198)
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1,638,366
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Total liabilities
and stockholders’ equity (deficit)
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$49,382,190
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$48,356,284
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(Unaudited)
3
months ended
September
30,
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12
months ended
September
30,
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2019
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2018
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2019
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2018
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Revenue:
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Monitoring and
other related services
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8,258,624
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7,880,774
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32,100,370
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29,943,563
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Product sales and
other
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502,287
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203,600
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1,918,782
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626,656
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Total
revenue
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8,760,911
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8,084,374
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34,019,152
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30,570,219
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Cost
of revenue:
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Monitoring,
products and other related services
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3,161,813
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3,101,737
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12,989,186
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11,511,341
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Depreciation and
amortization
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500,392
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478,974
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2,012,975
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1,856,734
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Total cost of
revenue
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3,662,205
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3,580,711
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15,002,161
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13,368,075
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Gross
profit
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5,098,706
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4,503,663
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19,016,991
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17,202,144
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58%
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56%
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56%
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56%
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Operating
expense:
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General and
administrative
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2,779,127
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3,126,974
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12,243,459
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13,983,924
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(Gain) / loss on
sale of assets
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(10,563)
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(8,500)
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(10,563)
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(8,500)
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Selling and
Marketing
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620,075
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500,674
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2,257,101
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1,895,452
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Research &
development
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359,223
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261,328
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1,313,499
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862,142
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Depreciation and
amortization
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491,602
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495,830
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2,047,980
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2,120,746
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Total operating
expense
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4,239,464
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4,376,306
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17,851,476
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18,853,764
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Operating Income
(loss)
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859,242
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127,357
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1,165,515
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(1,651,620)
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Other
income (expense)
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Interest
income
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6,638
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-
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23,929
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242,973
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Interest
expense
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(602,546)
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(687,735)
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(2,403,047)
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(3,004,983)
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Currency exchange
rate gain (loss)
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(331,345)
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(2,720)
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(466,140)
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(445,426)
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Other
income/expense, net
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-
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2,541
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143
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23,740
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Total
other income (expense)
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(927,253)
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(687,914)
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(2,845,115)
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(3,183,696)
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Net loss before
income taxes
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(68,011)
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(560,557)
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(1,679,600)
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(4,835,316)
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Income tax
expense
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427,018
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231,918
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884,353
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592,725
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Net
loss attributable to stockholders
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(495,029)
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(792,475)
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(2,563,953)
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(5,428,041)
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Three Months Ended September
30,
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Twelve
Months Ended
September
30,
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2019
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2018
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2019
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2018
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Non-GAAP
Adjusted EBITDA
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Net
loss attributable to common shareholders
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$(495)
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$(792)
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$(2,564)
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$(5,428)
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Interest expense,
net
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596
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688
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2,379
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2,762
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Depreciation and
amortization
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992
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974
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4,061
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3,977
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Income taxes
(1)
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427
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232
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884
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593
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Board compensation
and stock-based compensation
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(32)
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269
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321
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1,970
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Foreign exchange
expense
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331
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2
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466
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445
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Other charges, net
(2)
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353
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494
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1,902
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1,539
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Non
GAAP Adjusted EBITDA
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$2,172
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$1,867
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$7,449
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$5,858
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Non
GAAP Adjusted EBITDA, percent of revenue
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24.8%
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23.1%
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21.9%
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19.2%
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Three
Months Ended
September
30,
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Twelve
Months Ended
September
30,
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2019
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2018
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2019
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2018
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Non-GAAP
EPS (in $000’s, except share data)
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Net
loss attributable to common shareholders
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$(495)
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$(792)
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$(2,564)
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$(5,428)
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Interest expense,
net
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596
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688
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2,379
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2,762
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Depreciation and
amortization
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992
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974
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4,061
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3,977
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Income taxes
(1)
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427
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232
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884
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593
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Board compensation
and stock-based compensation
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(32)
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269
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321
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1,970
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Foreign exchange
expense
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331
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2
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466
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445
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Other charges, net
(2)
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353
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494
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1,902
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1,539
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Non
GAAP net income to common shareholders
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$2,172
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$1,867
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$7,449
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$5,858
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Weighted average
common shares outstanding
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11,251,650
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11,101,650
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11,213,431
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10,702,523
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Non-GAAP
earnings per share
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$0.19
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$0.17
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$0.66
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$0.55
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