Dynatronics Form 4: 10% owner receives 522k shares as preferred dividend

Rhea-AI Filing Summary

Form 4 filed on 07/02/2025 shows that Provco Ventures 1 LP, a 10% beneficial owner of Dynatronics Corp. (DYNT), received 522,122 shares of common stock on 07/01/2025. The transaction is coded “J,” indicating a non-open-market acquisition tied to a contractual arrangement. The footnote clarifies that the shares represent payment of the 8% preferred-stock quarterly dividend, valued at $0.0655 per share (90% of the 10-day average closing bid price). After the issuance, Provco’s direct holdings rose to 2,155,561 shares, implying a step-up of roughly 32% from the prior 1,633,439 share position. Because the dividend was paid in equity rather than cash, the transaction increases the public float and introduces incremental dilution for existing common shareholders, although the exact percentage of dilution cannot be calculated from the filing alone.

No derivative securities were reported in Table II, and there were no sales or option exercises disclosed. The filing is made by a single reporting person and does not amend a prior Form 4.

Positive

• Increased insider ownership: Provco Ventures 1 LP lifted its stake by roughly 32%, signaling ongoing alignment with common shareholders.

Negative

• Dilution risk: Issuing 522,122 new shares to satisfy preferred dividends increases the share count without bringing in cash, diluting existing investors.
• Low valuation reference: Dividend shares were priced at only $0.0655, underscoring the stock’s depressed level.

Insights

Equity Analyst

TL;DR: Insider receives 522k DYNT shares via dividend, boosting stake to 2.16 m; signals commitment but adds dilution.

The share issuance increases Provco’s ownership by about one-third, a constructive signal that the large holder continues to accept equity in lieu of cash. However, the low valuation of $0.0655 per share highlights Dynatronics’ depressed trading levels and magnifies dilution for minority holders. Because the distribution is routine for preferred-stock dividends and does not involve open-market buying, I view the impact as neutral for valuation but modestly positive for perceptions of insider alignment.

Corporate Governance Specialist

TL;DR: Equity dividend preserves cash but shifts cost onto common shareholders through incremental dilution.

Paying preferred dividends in stock improves near-term liquidity, yet it steadily enlarges the share count. The 522,122 newly issued shares dilute existing holders without direct capital inflow, a trade-off that boards often face when cash is tight. Because this appears to be an established mechanism tied to the 8% preferred, it is neither alarming nor particularly favorable—simply part of the company’s capital-structure design.

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
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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^*

Provco Ventures 1 LP

(Last) (First) (Middle)

795 E LANCASTER AVE SUITE 200

(Street)

VILLANOVA PA 19085

(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)

	Director	X	10% Owner
	Officer (give title below)		Other (specify below)

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		522,122	A	(1)	2,155,561	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/ Gary DiLella	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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FAQ

How many Dynatronics (DYNT) shares did Provco Ventures 1 LP receive?

The Form 4 reports 522,122 shares of common stock were issued to Provco Ventures 1 LP.

What was the ownership of Provco Ventures 1 LP after the transaction?

After the dividend payment, Provco directly owns 2,155,561 DYNT shares.

What does transaction code "J" mean in this Form 4?

Code J denotes a non-open-market acquisition or disposition, typically arising from contractual or dividend arrangements.

At what price were the DYNT shares valued for the dividend?

The shares were valued at $0.0655 per share, equal to 90% of the 10-day average closing bid price.

Does the filing indicate any derivative securities for Provco Ventures 1 LP?

No. Table II is blank; no options, warrants, or other derivatives were reported.