Note 1 - Basis of Presentation	9 Months Ended
Jun. 30, 2026
Notes to Financial Statements
Basis of Accounting [Text Block]	(1) BASIS OF PRESENTATION The unaudited interim condensed consolidated financial information of Track Group, Inc. and subsidiaries (collectively, the “Company” or “Track Group”) has been prepared in accordance with the Instructions to Form 10-Q and Article 8 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying interim consolidated financial information contains all adjustments, consisting only of normal recurring adjustments necessary to present fairly the Company’s financial position as of June 30, 2026 and results of its operations for the three and nine months ended June 30, 2026. These financial statements should be read in conjunction with the audited annual consolidated financial statements and notes thereto that are included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2025, filed with the SEC on December 19, 2025. The results of operations for the nine months ending June 30, 2026, may not be indicative of the results for the fiscal year ending September 30, 2026 (“Fiscal 2026”). As of June 30, 2026 and September 30, 2025, the Company had an accumulated deficit of $292,900,790 and $315,147,082, respectively. The Company had net income of $22,246,292 for the nine months ended June 30, 2026 and a net loss of ($1,093,685) for the nine months ended June 30, 2025. Recent Financings and Restructuring On May 1, 2026, the Company announced a comprehensive restructuring, which included financing transactions consisting of (i) a private placement resulting in approximately $10.3 million in gross proceeds, (ii) a new five-year $21.0 million term loan, and (iii) a $3.0 million credit facility (“Restructuring”). Proceeds from the Restructuring were principally used to payoff debt owed to Conrent Invest S.A., acting on behalf of its compartment, “Safety 2” (“Conrent”). Conrent was owed approximately $42,864,000 (the “Conrent Debt”), however, pursuant to an Amended Facility Payoff Agreement (the “Payoff Agreement”), Conrent agreed to a payment of $23,520,000, which Payoff Agreement terminated and canceled the Conrent Debt in full. See Notes 18 and 19. The Company’s ability to return to profitable operations is dependent upon generating a level of revenue adequate to support its existing cost structure. Management has evaluated the significance of these conditions, as well as the results from the Restructuring, and has determined that the Company can meet its operating obligations for a reasonable period. The Company expects to fund operations using cash on hand and through operational cash flows through the next twelve months. Sale of Subsidiary In the first quarter of fiscal 2025, we completed the sale of our Chilean subsidiary and recognized a $66,483 loss recorded in (Gain) loss on sale/dissolution of subsidiary in the Condensed Consolidated Statement of Operations for the nine months ended June 30, 2025. This loss is in addition to a $757,130 impairment on assets held for sale in the year ended September 30, 2024 (“Fiscal 2024”).

Note 1 - Basis of Presentation

9 Months Ended

Jun. 30, 2026

(1) BASIS OF PRESENTATION

The unaudited interim condensed consolidated financial information of Track Group, Inc. and subsidiaries (collectively, the “Company” or “Track Group”) has been prepared in accordance with the Instructions to Form 10-Q and Article 8 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying interim consolidated financial information contains all adjustments, consisting only of normal recurring adjustments necessary to present fairly the Company’s financial position as of June 30, 2026 and results of its operations for the three and nine months ended June 30, 2026. These financial statements should be read in conjunction with the audited annual consolidated financial statements and notes thereto that are included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2025, filed with the SEC on December 19, 2025. The results of operations for the nine months ending June 30, 2026, may not be indicative of the results for the fiscal year ending September 30, 2026 (“Fiscal 2026”).

As of June 30, 2026 and September 30, 2025, the Company had an accumulated deficit of $292,900,790 and $315,147,082, respectively. The Company had net income of $22,246,292 for the nine months ended June 30, 2026 and a net loss of ($1,093,685) for the nine months ended June 30, 2025.

Recent Financings and Restructuring

On May 1, 2026, the Company announced a comprehensive restructuring, which included financing transactions consisting of (i) a private placement resulting in approximately $10.3 million in gross proceeds, (ii) a new five-year $21.0 million term loan, and (iii) a $3.0 million credit facility (“Restructuring”). Proceeds from the Restructuring were principally used to payoff debt owed to Conrent Invest S.A., acting on behalf of its compartment, “Safety 2” (“Conrent”). Conrent was owed approximately $42,864,000 (the “Conrent Debt”), however, pursuant to an Amended Facility Payoff Agreement (the “Payoff Agreement”), Conrent agreed to a payment of $23,520,000, which Payoff Agreement terminated and canceled the Conrent Debt in full. See Notes 18 and 19.

The Company’s ability to return to profitable operations is dependent upon generating a level of revenue adequate to support its existing cost structure. Management has evaluated the significance of these conditions, as well as the results from the Restructuring, and has determined that the Company can meet its operating obligations for a reasonable period. The Company expects to fund operations using cash on hand and through operational cash flows through the next twelve months.

Sale of Subsidiary

In the first quarter of fiscal 2025, we completed the sale of our Chilean subsidiary and recognized a $66,483 loss recorded in (Gain) loss on sale/dissolution of subsidiary in the Condensed Consolidated Statement of Operations for the nine months ended June 30, 2025. This loss is in addition to a $757,130 impairment on assets held for sale in the year ended September 30, 2024 (“Fiscal 2024”).