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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TRACK
GROUP, INC.
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Date: May 7, 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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Exhibit No.
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Description
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Press release,
dated May 7, 2020
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(Unaudited)
March 31,
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September
30,
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Assets
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2020
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2019
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Current assets:
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Cash
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$7,686,042
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$6,896,711
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Accounts
receivable, net of allowance for doubtful accounts of $2,580,537
and $2,454,281, respectively
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4,960,428
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6,763,236
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Prepaid
expense and deposits
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1,218,843
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1,339,465
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Inventory,
net of reserves of $62,147 and $26,934, respectively
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60,132
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274,501
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Total
current assets
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13,925,445
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15,273,913
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Property
and equipment, net of accumulated depreciation of $2,290,429 and
$2,248,913, respectively
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532,343
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675,037
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Monitoring
equipment, net of accumulated amortization of $6,387,123 and
$6,322,768, respectively
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2,591,391
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2,624,900
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Intangible
assets, net of accumulated amortization of $15,209,788 and
$14,157,090, respectively
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21,052,972
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21,955,679
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Goodwill
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8,012,536
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8,187,911
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Deferred
tax asset
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580,058
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540,563
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Other
assets
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594,719
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124,187
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Total
assets
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$47,289,464
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$49,382,190
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Liabilities and Stockholders’ Equity (Deficit)
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Current liabilities:
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Accounts
payable
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1,560,395
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2,628,003
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Accrued
liabilities
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14,420,182
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13,828,696
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Current
portion of long-term debt
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3,408,413
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33,827,689
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Total
current liabilities
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19,388,990
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50,284,388
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Long-term
debt, net of current portion
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30,400,000
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-
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Long-term
liabilities
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268,179
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-
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Total
liabilities
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50,057,169
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50,284,388
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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;
11,414,150 and 11,401,650 shares outstanding,
respectively
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1,141
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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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302,270,242
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302,250,556
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Accumulated
deficit
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(304,105,976)
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(302,152,292)
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Accumulated
other comprehensive loss
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(933,112)
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(1,001,602)
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Total
equity (deficit)
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(2,767,705)
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(902,198)
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Total
liabilities and stockholders’ equity (deficit)
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$47,289,464
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$49,382,190
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Three
Months Ended
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Six
Months Ended
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March
31,
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March
31,
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March
31,
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March
31,
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2020
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2019
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2020
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2019
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Revenue:
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Monitoring
and other related services
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$7,993,092
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$7,877,403
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$16,261,515
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$15,937,731
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Product
sales and other
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138,634
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213,839
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291,042
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365,046
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Total
revenue
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8,131,726
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8,091,242
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16,552,557
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16,302,777
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Cost
of revenue:
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Monitoring,
products and other related services
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3,201,677
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3,065,710
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6,468,586
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6,165,903
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Depreciation
and amortization included in cost of revenue
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494,157
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533,590
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981,599
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1,011,879
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Total cost of
revenue
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3,695,834
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3,599,300
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7,450,185
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7,177,782
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Gross profit
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4,435,892
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4,491,942
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9,102,372
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9,124,995
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Operating
expense:
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General &
administrative
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2,723,219
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3,316,069
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5,735,073
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6,738,341
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Selling &
marketing
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642,432
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576,974
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1,183,981
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1,080,904
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Research &
development
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323,737
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354,879
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619,892
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603,744
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Depreciation &
amortization
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509,287
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520,384
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1,025,226
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1,035,365
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Total operating
expense
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4,198,675
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4,768,306
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8,564,172
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9,458,354
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Income
(loss) from operations
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237,217
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(276,364)
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538,200
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(333,359)
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Other
income (expense):
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Interest expense,
net
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(596,324)
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(584,348)
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(1,198,857)
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(1,185,587)
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Currency exchange
rate gain (loss)
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(1,334,240)
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595,910
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(1,190,932)
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(336,767)
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Other income
(loss), net
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(4,347)
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143
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(4,347)
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143
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Total other income (expense)
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(1,934,911)
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11,705
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(2,394,136)
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(1,522,211)
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Loss
before income taxes
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(1,697,694)
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(264,659)
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(1,855,936)
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(1,855,570)
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Income
tax expense
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23,365
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-
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97,748
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144,007
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Net
loss attributable to common shareholders
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(1,721,059)
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(264,659)
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(1,953,684)
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(1,999,577)
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Foreign currency
translation adjustments
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132,588
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(255,981)
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68,490
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(159,308)
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Comprehensive
loss
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$(1,588,471)
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$(520,640)
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$(1,885,194)
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$(2,158,885)
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Net
loss per common share, basic and diluted
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$(0.15)
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$(0.02)
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$(0.17)
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$(0.18)
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Weighted
average common shares outstanding, basic and diluted
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11,414,150
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11,251,650
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11,336,690
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11,175,002
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Three
Months Ended
March
31,
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Six
Months Ended
March
31,
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2020
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2019
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2020
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2019
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Non-GAAP Adjusted EBITDA
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Net income (loss) attributable to common shareholders
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$(1,721)
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$(265)
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$(1,954)
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$(2,000)
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Interest
expense, net
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596
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585
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1,199
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1,186
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Depreciation
and amortization
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1,004
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1,054
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2,007
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2,047
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Income taxes (1)
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24
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-
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98
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144
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Board
compensation and stock-based compensation
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75
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100
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170
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258
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Foreign
exchange expense
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1,334
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(596)
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1,191
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337
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Other charges, net (2)
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303
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740
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680
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1,364
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Non GAAP Adjusted EBITDA
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$1,618
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$1,618
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$3,391
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$3,336
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Non GAAP Adjusted EBITDA, percent of revenue
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19.9%
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20.0%
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20.5%
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20.5%
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Weighted
average common shares outstanding
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11,414,150
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11,251,650
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11,336,690
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11,175,002
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Non-GAAP earnings per share
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$0.14
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$0.14
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$0.30
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$0.30
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