8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 13, 2015

DYNATRONICS CORPORATION

(Exact name of registrant as specified in its charter)

Utah	0-12697	87-0398434
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

7030 Park Centre Dr., Salt Lake City, Utah	84121
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (801) 568-7000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02  Results of Operations and Financial Condition.

On February 13, 2015, Dynatronics Corporation issued a press release to report the results of its operations for the quarter and six months ended December 31, 2014.

Item 9.01 Financial Statements and Exhibits

A copy of the press release of the Company announcing its results of operations.

99.1 Press Release dated February 13, 2015.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DYNATRONICS CORPORATION

By:  /s/ Kelvyn H. Cullimore, Jr.

Kelvyn H. Cullimore, Jr.

Chairman and President

Date:  March 16, 2015.

EX-99.1

Exhibit 99.1

NEWS RELEASE

Contact: Bob Cardon, Dynatronics Corporation                                                                                                                                

           800-874-6251 or 801-568-7000

Dynatronics Announces Second Quarter Financial Results

Salt Lake City, Utah (February 13, 2015) – Dynatronics Corporation (NASDAQ: DYNT) today announced results for its fiscal second quarter and six months ended December 31, 2014.

Net sales in the quarter increased 2.2 percent to $7,303,189, compared to $7,146,787 in the same period of the prior year. Net sales in the six-month period increased 2.2 percent to $14,519,513, compared to $14,202,215 in the similar period ended December 31, 2013.

“Sales under the Amerinet contract that went into effect on July 1, 2014, accounted for the majority of the increase in total sales for the six months ended December 31, 2014,” reported Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. “The 2.2 percent increase in sales for the six months ended December 31, 2014, is a significant increase over the seven percent annualized decline in sales experienced for the same period during the prior two years.”

“Sales to Amerinet clients continue to grow at a double-digit rate,” added Larry K. Beardall, executive vice president of sales and marketing. “Amerinet is one of the five largest group purchasing organizations, or GPOs, in the United States.”

Net loss for the quarter was $133,543 ($.05 per common share), compared to net income of $44,095 ($.02 per common share) for the quarter ended December 31, 2013. Net loss for the six-month period was $92,619 ($.04 per common share), compared to a net loss of $63,689 ($.03 per common share) for the six months ended December 31, 2013.

 “Over the past several months, we were pursuing the acquisition of a new technology embedded in a target company,” Cullimore explained. “Unfortunately, upon completion of our due diligence, we decided to terminate the negotiations in February 2015.” Costs related to the terminated acquisition included legal fees and other acquisition development costs of $219,873 for the six months ended December 31, 2014.  Of that amount, $143,299 was incurred in the quarter ended December 31, 2014.   Adjusting for these one-time expenses, our pre-tax loss in the current quarter would have been reduced to $82,827 and we would have reported a pre-tax profit of $50,234 for the six month period ended December 31, 2014.

 “We are encouraged by the improving market conditions as well as the progress in GPO sales growth,” continued Cullimore. “The lower gross profit margins were concerning in the current quarter and will be monitored to see if they rebound in future quarters.  We believe promoting sales of our higher margin manufactured products as well as introducing new manufactured products will help improve gross profit margins in future quarters.

“Management’s focus will be on sustaining the increase in sales, maintaining cost structures and improving gross profit margins in order to return to profitability in the coming quarters,” he added.

Dynatronics has scheduled a conference call for investors on Friday, February 13, 2014, at 12:00 noon ET. Those wishing to participate should call: (877) 471-2694 and use Conference ID: 86885961

The following is a summary of the financial results as of December 31, 2014 and 2013, and for the quarter and six-month periods then ended:

Summary Selected Financial Data

Statement of Operations Highlights

	Three Months Ended					Six Months Ended
	December 31					December 31
	2014			2013		2014			2013
Net sales	$	7,303,189		$	7,146,787	$	14,519,513		$	14,202,215
Cost of sales		4,839,578			4,469,256		9,488,330			8,943,615
Gross profit		2,463,611			2,677,531		5,031,183			5,258,600
Selling, general, and admin. expenses		2,236,421			2,315,463		4,411,476			4,694,833
Research and development expenses		234,674			238,711		451,500			553,534
Non-recurring acquisition costs		143,299			-		219,873			-
Other expense, net		75,343			49,773		117,973			105,158
Income (loss) before income taxes		(226,126	)		73,584		(169,639	)		(94,925	)
Income tax provision (benefit)		(92,583	)		29,489		(77,020	)		(31,236	)
Net income (loss)	$	(133,543	)	$	44,095	$	(92,619	)	$	(63,689	)
Basic and diluted net income (loss)
per common share	$	(0.05	)	$	0.02	$	(0.04	)	$	(0.03	)

Balance Sheet Highlights

	December 31, 2014		June 30, 2014
Cash and cash equivalents	$	199,593	$	332,800
Trade accounts receivable		2,957,485		3,165,396
Inventories, net		5,980,659		6,157,848
Total current assets		10,241,555		10,378,927
Line of credit		1,522,691		3,521,209
Accounts payable		2,031,767		2,433,534
Accrued expenses		348,764		342,716
Accrued payroll and benefits expense		309,178		243,394
Total current liabilities		5,382,664		7,031,332

About Dynatronics Corporation:

           Dynatronics manufactures, markets and distributes advanced-technology medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, sports medicine, chiropractic, podiatry, plastic surgery, dermatology and other related medical, cosmetic and aesthetic markets. More information regarding Dynatronics is available at www.dynatronics.com.

Safe Harbor Notification

           This press release contains forward-looking statements. Those statements include references to the company’s expectations and similar statements. Actual results may vary from the views expressed in the forward-looking statements contained in this release. The development and sale of the company’s products are subject to a number of risks and uncertainties, including, but not limited to, changes in the regulatory environment, competitive factors, inventory risks due to shifts in market demand, market demand for the company’s products, availability of financing at cost-effective rates, and the risk factors listed from time to time in the company’s SEC reports.