DYNATRONICS CORP 8-K

What Happened

• Dynatronics Corporation (DYNT) and its wholly‑owned subsidiaries — Hausmann Enterprises, LLC; Bird & Cronin, LLC; and Dynatronics Distribution Company, LLC — ceased operations and filed voluntary petitions for relief under Chapter 7 of the U.S. Bankruptcy Code on January 9, 2026 in the U.S. Bankruptcy Court for the District of Minnesota.
• The Bankruptcy Court will appoint Chapter 7 trustee(s) to administer and liquidate each Debtor’s estate; once appointed, initial creditor hearings will be scheduled and notices sent to known creditors.

Key Details

• Filing date: January 9, 2026; Chapter 7 (District of Minnesota).
• Directors who resigned effective upon trustee appointment: Brian Baker, Andrew Hulett, R. Scott Ward, Erin S. Enright, and David B. Holtz. Executive officers, including CEO Brian Baker, ceased to be officers/employees when trustees are appointed.
• The filings triggered defaults under certain agreements, including the Loan and Security Agreement dated August 1, 2023 with Gibraltar Business Capital, LLC (which may allow acceleration of outstanding indebtedness).
• The filings also triggered redemption rights under the Company’s Series A 8% Convertible Preferred Stock and Series B Convertible Preferred Stock designations; these remedies may be subject to the automatic stay under 11 U.S.C. § 362.

Why It Matters

• The Chapter 7 filings mean a trustee will liquidate company assets rather than pursue reorganization; this changes control from the board/executives to the trustee and typically prioritizes creditors in distributions.
• Triggered defaults, potential debt acceleration, and preferred‑stock redemption rights can materially affect creditor recoveries and any residual value for common shareholders.
• Shareholders and creditors should monitor bankruptcy docket filings and trustee notices for schedules, claims deadlines, and information on potential asset sales or distributions.