ReposiTrak, Inc.

ReposiTrak, Inc. Annual Investment Guide
Plain-English breakdown for everyday investors

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Financial Health Check

• Auditor approved: Independent accountants verified all numbers – no red flags.
• Cash safety net: $22 million in the bank (covers 4+ years of operations).
• Debt-free: Canceled their $10M credit line – no interest payments.
• Growing value: Shareholder equity up 6% to $49.5M – like your house appreciating while you own it.
• Liquidity superstar: Can pay short-term bills 6x over (6:1 current ratio).
• Investor confidence: Common stock value jumped to $183M (18.3M shares) – people believe in this company.

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2023 Performance

• Revenue up 11%: $22.6M this year vs. $20.3M last year – steady growth in food safety tracking.
• Profits rising faster: Net income grew 20% year-over-year – getting leaner as they grow.
• Software margins shine: Kept 33¢ profit per $1 (up from 30¢) – tech efficiency paying off.

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Growth Moves Ahead

• AI supply chain tools: Building a "weather forecast for food recalls" to predict risks.
• Rewarding shareholders: Using their $22M cash to fund buybacks and tech upgrades.
• Expanding reach: Now tracks 25% of U.S. grocery products through manufacturer partnerships.

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Risks to Watch

• Customer concentration: 72% of revenue comes from just 15 clients – losing one hurts.
• Long-term bets: AI investments may take years to pay off.
• Profit history: Still digging out of a $22M lifetime loss hole (negative retained earnings).
• Buyback caution: Spent $8.96M repurchasing stock – less cash if business slows.

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Key Takeaways for Investors

The good: ReposiTrak is growing profitably, carries no debt, and has enough cash to weather most storms. Their software margins and expanding industry partnerships suggest a scalable business model.

The caution: Heavy reliance on a few clients and "catch-up" profit history mean investors should watch customer retention closely. The AI push is exciting but unproven.

Bottom line: A solid option for investors who believe in:

1. The growing need for food safety tech
2. Management’s ability to convert cash into smart growth
3. Mid-to-long-term plays (not a quick flip)

Always do your own research – this isn’t financial advice! 🚀