Dynatronics Corp. (DYNT) enters Chapter 7 liquidation and board resigns

Rhea-AI Filing Summary

Dynatronics Corp. and its wholly owned subsidiaries have ceased operations and filed voluntary Chapter 7 bankruptcy petitions in the U.S. Bankruptcy Court for the District of Minnesota. A court-appointed Chapter 7 trustee will take control of each debtor’s estate and oversee liquidation of assets for the benefit of creditors.

The bankruptcy filings trigger events of default under Dynatronics’ Loan and Security Agreement with Gibraltar Business Capital, LLC, allowing that lender to pursue remedies including accelerating outstanding debt, subject to the automatic stay in bankruptcy. The filings also trigger redemption rights related to the company’s Series A 8% Convertible Preferred Stock and Series B Convertible Preferred Stock.

Once the trustee is appointed, the board of directors and executive officers, including CEO Brian Baker, lose authority to act for the company. All named directors have resigned, and the executive officers have ceased to be officers and employees, as control shifts to the trustee.

Positive

• None.

Negative

• Chapter 7 bankruptcy and liquidation: Dynatronics and its subsidiaries have ceased operations and filed voluntary Chapter 7 cases, indicating a move to liquidate rather than reorganize.
• Debt defaults and accelerated obligations: The bankruptcy filings trigger events of default under the Loan and Security Agreement with Gibraltar Business Capital, LLC and redemption rights on preferred stock.
• Loss of corporate governance continuity: Upon appointment of the Chapter 7 trustee, all directors resigned and executive officers, including the CEO, ceased to serve, shifting control entirely to the trustee.

Insights

Distressed equity and credit analyst

Dynatronics is entering Chapter 7 liquidation, ending operations and shifting control to a trustee.

Dynatronics Corp. and its subsidiaries have filed voluntary Chapter 7 cases after ceasing operations. Chapter 7 generally involves liquidating assets rather than attempting to reorganize, which typically leaves little or no recovery for common equity and puts the focus on creditor claims and collateral values.

The filing triggers defaults under the Loan and Security Agreement with Gibraltar Business Capital, LLC and redemption rights on the company’s Series A 8% and Series B convertible preferred stock, although enforcement is subject to the automatic stay under 11 U.S.C. § 362. A Chapter 7 trustee will administer and liquidate the estates, while the board and officers, including CEO Brian Baker, have resigned or ceased serving once the trustee is appointed. Subsequent court proceedings and creditor notices in the Chapter 7 cases will determine how remaining value, if any, is distributed.

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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): January 9, 2026

DYNATRONICS CORP.
(Exact name of registrant as specified in its charter)

Utah	000-12697	87-0398434
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

1200 Trapp Rd.
Eagan, Minnesota, United States 55121
(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 14(d)-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))

Securities registered pursuant to Section 12(g) of the Act:

Title of each class		Trading Symbols		Name of each exchange on which registered
Common stock, no par value		DYNT		OTCQB

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b -2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.03 Bankruptcy or Receivership.

On January 9, 2026, after considering all strategic alternatives, Dynatronics Corporation (the "Company"), and its wholly-owned subsidiaries, Hausmann Enterprises, LLC, Bird & Cronin, LLC, and Dynatronics Distribution Company, LLC (collectively, the "Debtors"), each ceased operations and filed a voluntary petition for relief (collectively, the "Bankruptcy Filings") under Chapter 7 of Title 11 of the United States Code, 11 U.S.C. §§ 101 et seq. in the United States Bankruptcy Court (the "Bankruptcy Court") for the District of Minnesota (collectively, the "Bankruptcy Cases").

As a result of the Bankruptcy Filings, a Chapter 7 trustee will be appointed by the Bankruptcy Court in each of the Bankruptcy Cases and will administer the respective Debtor's bankruptcy estate, including liquidating the assets of each respective Debtor in accordance with the Bankruptcy Code. With respect to each Bankruptcy Case, once a Chapter 7 trustee is appointed, an initial hearing for creditors will be scheduled, and a Notice of Bankruptcy Case Filing for such Bankruptcy Case will be sent to known creditors.

Item 2.04 Triggering Events that Accelerate or Increase a Direct Financial Obligation or Obligation under an Off-Balance Sheet Arrangement.

The Bankruptcy Filings triggered events of default under certain of the Debtors' contracts, agreements or debt instruments, which may result in the termination of, or an acceleration of the Debtors' obligations under, such contracts, agreements or debt instruments. Without limiting the foregoing, the Bankruptcy Filings:

(i) Trigger one or more events of default under the Company's Loan and Security Agreement dated as of August 1, 2023 with Gibraltar Business Capital, LLC. An event of default under the Loan and Security Agreement entitles Gibraltar Business Capital, LLC to enforce the rights and pursue the remedies described in the Loan and Security Agreement, including acceleration of the outstanding indebtedness under the Loan and Security Agreement; and

(ii) Trigger redemption rights under the (A) Designation of Preferences, Rights and Limitations of the Series A 8% Convertible Preferred Stock of the Company contained in the Company's Amended and Restated Articles of Incorporation, and (B) Certificate of Designations, Preferences and Rights of the Series B Convertible Preferred Stock of the Company.

Such events of default and redemption rights, however, may be stayed pursuant to 11 U.S.C. § 362.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

In connection with the Bankruptcy Filings, the appointed Chapter 7 trustee(s) will assume control over the assets and liabilities of the Debtors, effectively eliminating the authority and powers of the Board of Directors of the Company and its executive officers to act on behalf of the Company and the other Debtors. Accordingly, effective as of the appointment of the Chapter 7 trustee(s), Brian Baker, Andrew Hulett, R. Scott Ward, Erin S. Enright, and David B. Holtz resigned from their positions as directors of the Company. The resignations are not the result of any disagreement with the Company regarding the Company's operations, policies, or practices. The executive officers of the Company, including the Company's CEO, Brian Baker, ceased to be officers and employees of the Company and each other Debtor, as applicable, effective as of the appointment of the Chapter 7 trustee(s).

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SIGNATURE

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.

Date: January 9, 2026	DYNATRONICS CORPORATION
	By:	/s/ Brian Baker
	Name:	Brian Baker
	Title:	Authorized Signatory

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FAQ

What major event did Dynatronics Corp. (DYNT) disclose on January 9, 2026?

Dynatronics Corp. disclosed that it and its wholly owned subsidiaries ceased operations and filed voluntary Chapter 7 bankruptcy petitions in the U.S. Bankruptcy Court for the District of Minnesota.

What does Chapter 7 bankruptcy mean for Dynatronics (DYNT)?

In Chapter 7, a court-appointed trustee takes control of Dynatronics’ and its subsidiaries’ assets, liquidates them, and distributes proceeds to creditors in accordance with the Bankruptcy Code.

How do the bankruptcy filings affect Dynatronics’ debt obligations?

The filings trigger events of default under Dynatronics’ Loan and Security Agreement with Gibraltar Business Capital, LLC, allowing that lender to enforce remedies including accelerating outstanding indebtedness, subject to the bankruptcy stay.

What happens to Dynatronics’ preferred stock in this Chapter 7 filing?

The bankruptcy filings trigger redemption rights under the designations governing the company’s Series A 8% Convertible Preferred Stock and Series B Convertible Preferred Stock, though these rights may be stayed under 11 U.S.C. § 362.

What changes occurred in Dynatronics’ board and management after the Chapter 7 filing?

Once the Chapter 7 trustee is appointed, the trustee assumes control over the debtors’ assets and liabilities, the authority of the board and executives is effectively eliminated, all named directors resigned, and the executive officers, including CEO Brian Baker, ceased to be officers and employees.

Will Dynatronics Corp. (DYNT) continue operating during the bankruptcy process?

No. The company states that it and its wholly owned subsidiaries have ceased operations in connection with the Chapter 7 bankruptcy filings, and a trustee will proceed with liquidation.