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): May 16, 2016

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 May 16, 2016, Dynatronics Corporation issued a press release to report the results of its operations for the third fiscal quarter ended March 31, 2016. The release also announced that the Company would hold a conference call with investors by telephone and provided access information, date and time for the conference call.

The information in this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended. The furnishing of the information in this Current Report is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information this Current Report contains is material investor information that is not otherwise publicly available.

Item 9.01 Financial Statements and Exhibits

(d)  Exhibits

99.1 Press Release dated May 16, 2016 announcing results of operations for quarter ended March 31, 2016 (furnished herewith)

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:  May 16, 2016

EX-99

Exhibit 99.1

NEWS RELEASE

Dynatronics Announces Fiscal 2016 Third Quarter Financial Results

· Net sales increase 10.7% to $7.4 million as SolarisPlus drives organic growth

· Q3 gross profit climbs 13.4% and gross margin expands to 33.6% compared to 32.8% last year due to growth in high-margin proprietary therapeutic products

Cottonwood Heights, Utah (May 16, 2016) – Dynatronics Corporation (NASDAQ: DYNT) today announced financial and operating results for its fiscal 2016 third quarter and nine months ended March 31, 2016.

Net sales for the quarter were $7.4 million, a 10.7 percent increase compared to $6.7 million in the same period of the prior year. Gross profit for the quarter increased 13.4 percent representing 33.6 percent of sales, compared to 32.8 percent of sales for the quarter ended March 31, 2015, reflecting a greater proportion of sales of proprietary therapeutic products which carry higher-than-average margins.  In addition, improved rates negotiated with freight carriers helped increase gross margin as a percentage of sales.

 "Our growth initiatives implemented last fall continue to drive significant organic growth," commented Kelvyn H. Cullimore Jr., chairman and chief executive officer. "Our sales team again delivered double-digit growth in sales of our top-selling SolarisPlus product line. In addition, we saw an increase in large orders related to custom wood products for sports teams as well as more new clinic openings and expansions which helped boost sales in the quarter."

Net sales for the nine months ended March 31, 2016, were $22.3 million, a 5.0 percent increase compared to $21.2 million in the same period of the prior year. Gross margin for the nine-month period improved to 34.4 percent, compared to 34.1 percent for the nine-month period ended March 31, 2015.

"We are focused on growing sales both domestically and internationally and are implementing a plan to strategically and tactically expand our distribution across North America and into international territories," said Jeff Gephart, Sr. VP of Sales.  "To that end, we are planning to bolster our sales management team with key new hires and are pursuing regulatory approvals in selected foreign countries such as China and Mexico."

Net loss for the quarter ended March 31, 2016, was approximately $451,000, compared to $208,000 for the quarter ended March 31, 2015. Net loss applicable to common shareholders for the quarter ended March 31, 2016, was approximately $531,000, compared to $208,000 for the quarter ended March 31, 2015. Net loss for the nine months ended March 31, 2016, was approximately $757,000, compared to $301,000 for the nine months ended March 31, 2015. Net loss applicable to common shareholders for the nine months ended March 31, 2016, was approximately $998,000 compared to $301,000 for the nine months ended March 31, 2015. Net loss applicable to common shareholders recognizes the accrued dividends on preferred stock during the current quarter and nine-month periods, which totaled approximately $80,500 and $242,000, respectively and was payable in common stock.

"Our increased loss for the quarter over last quarter in spite of higher sales and gross profit is a reflection of the implementation of our organic growth strategy plans as well as our M&A strategy which is focused on acquiring businesses that simultaneously fit our criteria and enhance our product offering," added Cullimore.

Dynatronics has scheduled a conference call for investors today at 4:30 p.m. ET (2:30 p.m. MT). Those wishing to participate should call (877) 471-2694 passcode 5797372.

The following is a summary of the financial results as of March 31, 2016 and 2015, and for the quarter and nine months then ended:

Summary Selected Financial Data

Statement of Operations Highlights

In thousands, except per share amounts

		Quarter Ended						Nine Months Ended
		March 31,						March 31,
		2016			2015			2016			2015
Net sales	$	7,409		$	6,691		$	22,281		$	21,210
Cost of sales		4,923			4,499			14,607			13,987
Gross profit		2,486			2,192			7,674			7,223
Selling, general, and admin. expenses		2,620			2,217			7,445			6,849
Research and development expenses		250			236			769			688
Other expense, net		67			83			217			201
Loss before income taxes		(451	)		(345	)		(757	)		(514	)
Income tax provision (benefit)		-			(137	)		-			(214	)

Net loss	$	(451	)	$	(208	)	$	(757	)	$	(301	)
8% convertible preferred stock dividend		(81	)		-			(242	)		-
Net loss available to common stockholders	$	(531	)	$	(208	)	$	(998	)	$	(301	)
Net loss attributable to common stockholders per share - basic and diluted	$	(.19	)	$	(.08	)	$	(.37	)	$	(.12	)

Balance Sheet Highlights

In thousands, except per share amounts

	March 31, 2016		June 30, 2015
Cash and cash equivalents	$	$ 1,078	$	3,926
Trade accounts receivable		3,337		3,347
Inventories, net		5,368		5,422
Total current assets		10,087		13,313
Line of credit		-		1,910
Accounts payable		1,843		2,520
Accrued expenses		51		280
Accrued payroll and benefits expense		449		263
Total current liabilities		2,963		5,572

About Dynatronics Corporation:

Dynatronics manufactures, markets and sells advanced-technology medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, sports medicine, chiropractic, and podiatry 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. Forward-looking statements in this press release include statements regarding expansion into new markets. 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.

Contact

Dynatronics Corporation

Bob Cardon

800-874-6251 or 801-568-7000

bobc@dynatronics.com