[Form 4] DYNATRONICS CORP Insider Trading Activity

Rhea-AI Filing Summary

Dynatronics Corp. (DYNT) – Insider Form 4 filing dated 07/02/2025 details an equity transaction by long-time director and >10% shareholder Stuart M. Essig.

Nature of the transaction: Code “J” indicates a non-open-market event. The company paid the quarterly dividend on its 8% Preferred Stock in the form of DYNT common shares, valued at 90% of the 10-day average closing bid price. At a referenced value of $0.0655 per share, Mr. Essig received the stock rather than cash.

Shares received:

• Direct account: 870,203 new common shares
• Family trust (indirect): 174,652 new common shares
• Total acquired: 1,044,855 shares

Post-transaction holdings: Essig now directly owns 3,559,764 DYNT shares and indirectly owns 695,616 shares through a family trust.

The acquisition arises from a routine dividend payment rather than an elective open-market purchase, yet it still increases insider ownership and may align interests with common shareholders. No derivative securities were reported.

Positive

• Insider ownership increases by 1,044,855 shares, signalling continued commitment from a director and 10% holder.
• Cash conserved by paying preferred dividends in stock, potentially supporting liquidity.

Negative

• Equity issuance is dilutive to existing common shareholders, albeit routine and limited.
• Transaction was not an open-market purchase, so it offers no direct price-confidence signal from the insider.

Insights

Financial Analyst

TL;DR: Insider receives ~1.0 M DYNT shares via stock dividend; holding rises to 4.3 M shares, modestly positive alignment.

The filing shows Essig accepting common stock in lieu of cash for the 8% preferred dividend. Although not an active purchase, it enlarges his stake to roughly 4.26 M shares, underscoring continued exposure to DYNT’s equity. Because the shares are issued by the company, there is implied dilution, but the event is routine and predictable. Market impact is likely muted; however, investors may view the growing insider ownership as positive for corporate governance and alignment. No price discovery information or cash outflow accompanies the event, so liquidity effects on DYNT are minimal.

Corporate Governance Expert

TL;DR: Dividend-in-kind boosts insider stake; governance signal mildly favorable, dilution risk limited.

Dynamically settling preferred dividends with equity keeps cash on the balance sheet while strengthening insider alignment. Essig’s status as both director and 10% holder means his economic incentives are further tied to shareholder value. The use of a preset valuation (90% of 10-day bid) follows common practice for preferred instruments and limits accusations of preferential pricing. From a governance perspective the transaction is transparent and non-controversial. Nonetheless, the issuance adds to the float and, without buybacks, marginally dilutes existing holders. Overall impact: neutral-to-positive.

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

Baker Brian D.

(Last) (First) (Middle)

1200 TRAPP ROAD

(Street)

EAGAN MN 55121

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
DYNATRONICS CORP [ DYNT ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director		10% Owner
X	Officer (give title below)		Other (specify below)
	President & CEO, CFO

3. Date of Earliest Transaction (Month/Day/Year)
07/01/2025

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	07/01/2025		J		73,281	A	(1)	300,647	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

Explanation of Responses:

1. $0.0655 per share, payment of quarterly dividends on 8% Preferred Stock in shares of common stock valued at 90% of 10-day average closing bid price.

	/s/ Brian Baker	07/02/2025
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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FAQ

How many Dynatronics (DYNT) shares did Stuart Essig receive?

He received 1,044,855 common shares (870,203 direct; 174,652 to a family trust).

What does transaction code "J" mean on this Form-4?

Code "J" denotes other acquisitions, in this case a stock dividend settlement rather than an open-market trade.

What are Essig's total holdings in DYNT after the transaction?

He beneficially owns 3,559,764 shares directly and 695,616 shares indirectly, totaling about 4.26 million shares.

Was cash involved in this insider transaction?

No. The 8% preferred dividend was paid in DYNT common stock, conserving company cash.

Is the share issuance dilutive to existing shareholders?

Yes, any new shares issued for dividends increase share count, creating modest dilution.