OTC: TRCK

Business Strategy

We are committed to helping our customers improve offender rehabilitation and re-socialization outcomes through our innovative hardware, software and services. We treat our business as a service business. Although we still manufacture patented tracking technology, we see the physical goods as only a small part of the integrated offender monitoring solutions we provide. Accordingly, rather than receiving a payment just for a piece of manufactured equipment, the Company receives a recurring stream of revenue for ongoing device agnostic subscription contracts. As part of our strategy, we continue to expand our device-agnostic platform to not only collect, but also store, analyze, assess and correlate location data for both accountability and auditing reasons, as well as to use for predictive analytics and assessment of effective and emerging techniques in criminal behavior and rehabilitation. We believe a high-quality customer experience along with knowledgeable salespeople who can convey the value of our products and services greatly enhances our ability to attract and retain customers. Therefore, our strategy also includes building and expanding our own direct sales force and our third-party distribution network to effectively reach more customers and provide them with a world-class sales and post-sales support experience. In addition, we are developing related-service offerings to address adjacent market opportunities in both the public and private sectors. We believe continual investment in research and development (“R&D”), including smartphone applications and other monitoring services is critical to the development and sale of innovative technologies and integrated solutions today and in the future.

Products and Services

Devices

Our devices consist principally of the ReliAlert® product line. These devices are generally leased on a daily rate basis and may be combined with our monitoring center services, proprietary software and data analytics subscription to provide an end-to-end PaaS.

ReliAlert®XC4

ReliAlert®XC4 is our flagship GPS device, which is among the safest and most reliable monitoring devices ever made. It is the only one-piece GPS device with patented 3-way voice communication to assist intervention efforts, now on the LTE network with increased battery life. This device includes on-board processing, secondary location technology, a 95db siren, embedded RF technology, anti-tampering capabilities, increased battery life and sleep mode.

ReliAlert®XC3

ReliAlert®XC3 - Advanced features enable agencies to effectively track offender movements and communicate directly with offenders in real-time, through a patented, on-board two/three-way voice communication technology. This device includes an enhanced GPS antenna and GPS module for higher sensitivity GPS, enhanced voice audio quality, increased battery performance of 50+ hours, 3G cellular capabilities, improved tamper sensory and durability enhancements.

Operating System Software

IntelliTrack

IntelliTrack is a secure state of the art device-agnostic platform that provides the foundation for seamlessly and securely connecting devices, delivering trusted data to the cloud, with views of current or historical tracking provided by Google Maps® for use with predictive analytics.

TrackerPAL®

TrackerPAL® is a secure, cloud-based monitoring system that gives customers the ability to not only collect, but also store, analyze, assess and correlate offender data for both accountability and auditing reasons, as well as to use with predictive analytics applications and assess criminal behavior and rehabilitation opportunities.

Application Software

IntelliTrack Mobile

A mobile application of the IntelliTrack software is available for Android and iOS devices.

TrackerPAL® Mobile

A mobile application of the TrackerPAL® software is available for Android and iOS devices.

Data Analytics

Our data analytics services help facilitate the discovery and communication of meaningful patterns in diverse locations and behavioral data that helps agencies reduce risks and improve decision making. Our analytics applications use various combinations of statistical analysis procedures, data and text mining and predictive modeling to proactively analyze information on community-released offenders to discover hidden relationships and patterns in their behaviors and to predict future outcomes.

Real-Time Alcohol Monitoring

BACtrack is the world’s first smartphone-based remote alcohol monitoring system. The award-winning BACtrack Mobile integrates a smartphone app and police-grade breathalyzer branded for the Company to bring blood-alcohol content (“BAC”) wirelessly to a mobile device. We can quickly and easily estimate an enrollee’s BAC and track the results over time. The smartphone monitoring application allows supervisors to send scheduled or random notifications to enrollees to take BAC tests, providing photo/location-verified and time stamped results. It also includes an onboard calendar, reminding an enrollee of court dates, testing dates, medications to take, mandatory events to attend, and other matters.

Empower

Our Empower Smartphone Application provides victim and survivor support by creating a mobile geo-zone around a survivor of domestic abuse and communicates with the offender’s tracking device – providing an early-warning notification to the survivor if he or she is in proximity of the offender or group of offenders.

Socrates

Socrates 360 is a multipurpose platform offering a wide range of content and services to people as they return to the community. The user-centric customizable capabilities include educational courses, health and wellbeing advice, secure video conferencing, access to local services, event scheduling, appointment reminders, and check-ins based on the individual’s needs.

Accessories

SecureCuff®

The SecureCuff® is a patented, optional accessory available exclusively for ReliAlert® and is the only uncuttable strap in the industry specifically made for high-risk offenders. SecureCuff® has encased, hardened steel bands that provide extreme cut-resistance and includes the same fiber-optic technology as the standard strap for tampering notification.

RF Beacon

The RF Beacon is a completely self-contained, short-range transmitting station that provides a Radio Frequency (“RF”) signal communicating with assigned offender GPS devices to increase the ability to maintain critical offender location information and provide agencies with an effective way to more accurately “tether” an offender to a specific location.

Product Support and Services

Monitoring Centers

Our monitoring centers provide live 24/7/365 monitoring of all alarms generated from our devices, as well as customer and technical support. Our monitoring center operators play a vital role, and as such, are staffed with highly trained, bilingual individuals. These operators act as an extension of agency resources receiving alarms, communicating and intervening with offenders regarding violations and interacting with supervision staff, all pursuant to agency-established protocols. The facilities have redundant power sources, battery backup and triple redundancy in voice, data and IP. We have assisted in the establishment of monitoring centers for customers and local partners in the United States, Chile and other global locations.

Customer Care

We offer a range of support options for our customers. These include assistance that is built into software products, printed and electronic product manuals, in-person training, online support including comprehensive product information, as well as technical assistance.

Research and Development Program

During the fiscal year ended September 30, 2025 (“Fiscal 2025”), we incurred research and development expenses of $2,799,720, as compared to $2,749,218 recognized during the fiscal year ended September 30, 2024 (“Fiscal 2024”). The $50,502 increase in research and development was largely due to higher wages and payroll taxes and higher training and recruiting expense. The Company has now significantly enhanced its technology platform to improve the efficiency of its software, firmware, user interface, and automation and invested considerable time in developing a new device expected to be completed in Fiscal 2026. As a result of these improvements, $2,247,708 and $2,023,228 was capitalized as developed technology, in accordance with the accounting guidance for internal-use software, during Fiscal 2025 and Fiscal 2024, respectively.

Competition

The markets for our products and services are highly competitive and we are confronted by aggressive competition in all areas of our business. These markets are characterized by frequent product introductions and technological advances. Our competitors selling tracking devices have aggressively cut prices and lowered their product margins to gain or maintain market share. Our financial condition and operating results could be adversely affected by these and other industry-wide downward pressures on gross margins. Principal competitive factors important to us include price, product features, relative price/performance, product quality and reliability, design innovation, a strong software ecosystem, service and support, and corporate reputation.

Our specific competitors vary from market to market and we compete against other international, national and regional companies, some of whom use local partners that may have more knowledge of the local markets and the government decision-making process. Some of our competitors are owned by large public companies with broader resources, while others are backed by private equity firms with large funds, or in some cases, work as part of a consortium with extensive international experience. We expect competition in these markets to intensify as competitors attempt to imitate some of the features of our products and applications within their own products or, alternatively, collaborate with third-party providers to offer solutions that are more competitive than those they currently offer.

Competitive Strengths

Relationships with High-Quality Government Customers. We have developed strong relationships with federal, state and county customers within the United States and with Ministries of Justice internationally and managed to bring in new, sizable customers in the past year.

Industry Leading Analytics Software. Our software remains a leader with fully functioning, revenue-generating analytics on the market today, specifically designed for the offender monitoring market. State departments of corrections, county probation agencies and sheriff’s offices have utilized this solution for multiple years.

Device Agnostic Software Platform. Our software platform is device agnostic and currently accommodates offender monitoring with new products that we introduce, integrates with case management software utilized by sheriff, probation and pre-trial departments, and supports devices manufactured by competitors.

Smartphone Monitoring Pioneers in Criminal Justice. Today’s prison system incarcerates too many individuals who pose little threat to public safety, at far too great a cost. They serve their sentences in overcrowded, outdated institutions that expose them to hardened criminals. Upon release, their opportunities and lives have changed forever. Now, low-risk offender populations can serve their sentences virtually, holding jobs and taking care of family members, yet still feeling the weight of their punishment while seeing a clear path to avoiding trouble in the future. Further, taxpayers gain a clear cost advantage. To date, we have developed apps targeting alcohol monitoring, domestic violence and our core monitoring platform.

Experienced Senior Management Team. Our top executives have extensive experience in both the offender monitoring marketplace and their specific fields of expertise, whether that be sales, customer care and/or technology. We also benefit from a diverse and experienced Board of Directors.

Recurring Revenue. Our revenue is generated in large part by long-term customer contracts based on the size of the offender monitoring program throughout each month, which creates a predictable, recurring revenue stream.

Extensive Product Suite. We have a large variety of products that appeal to a broad range of government customers and greatly enhance our ability to attract and retain clients. These products include different GPS devices, alcohol monitoring devices and applications, and new smartphone applications including those that address adjacent market opportunities in both the public and private sectors and analytics software.

National Footprint with International Presence. We operate in approximately 40 states (including Puerto Rico) as well as select international locations, including Chile, Saudi Arabia, Brazil and Bahamas. Our presence both within the United States and abroad better positions us to compete for new and expiring government contracts.

Sources and Availability of Raw Materials

We use various suppliers and contract manufacturers to supply parts and components for the manufacture and support of our product lines. Although our intention is to establish at least two sources of supply for materials whenever possible, for certain components we may experience spot shortages. We may not be able to procure these components from alternative sources at acceptable prices and quality within a reasonable time, or at all; therefore, the risk of loss or interruption of such arrangements could impact our ability to deliver certain products on a timely basis.

The Company has been able to purchase most components within reasonable lead times.

Dependence on Major Customers

We had sales to four entities that each represent 10% or more of our gross revenue, as follows, for the years ended September 30, 2025 and 2024, respectively:

2025

%

2024

%

Customer A

$
4,422,047

13
%

$
3,328,803

9
%

Customer B

3,408,688

10
%

3,482,363

9
%

Customer C

3,265,277

9
%

3,757,504

10
%

Customer D

475,144

1
%

5,746,451

16
%

No other customer represented more than 10% of our total revenue for the fiscal years ended September 30, 2025 or 2024. On November 1, 2024 we sold our Chilean subsidiary, which included Customer D.

Concentration of credit risk associated with our total and outstanding accounts receivable as of September 30, 2025 and 2024, respectively, are shown in the table below:

2025

%

2024

%

Customer E

784,966

12
%

326,908

7
%

Customer F

767,376

12
%

475,012

11
%

Customer G

673,297

10
%

489,618

11
%

Customer D

-

0
%

495,969

11
%

Dependence on Major Suppliers

We purchase cellular services from several major suppliers. The cost to us for these services during Fiscal 2025 and Fiscal 2024 was $1,039,906 and $1,468,509, respectively. The 29% decrease in cellular service expense in Fiscal 2025 compared to Fiscal 2024 was largely the result of optimized pool plans and more proactively cancelling services as devices are decommissioned.

During Fiscal 2025 and Fiscal 2024, we also purchased a significant portion of our monitoring equipment from certain suppliers. The cost of these purchases during Fiscal 2025 and Fiscal 2024 was $2,671,300 and $1,539,269, respectively. The 74% increase in monitoring equipment was due to an increase in customer demand as well as an increase in the cost per device.

Intellectual Property

We currently hold rights to patents and copyrights relating to certain aspects of our hardware devices, accessories, software and services. We have registered or applied for trademarks and service marks in the U.S. and a number of foreign countries. Although we believe the ownership of such patents, copyrights, trademarks and service marks is an important factor in our business and that our success does depend in part on the ownership thereof, we rely primarily on the innovative skills, technical competence and marketing abilities of our personnel.

We file patent applications as needed to protect innovations arising from our research, development and design. Over time, we have accumulated a large portfolio of issued patents around the world. We hold copyrights relating to certain aspects of our products and services. No single patent or copyright is solely responsible for protecting our products. We believe that the duration of our patents is adequate relative to the expected lives of our products.

Some of our products are designed to include intellectual property obtained from third parties. It may be necessary in the future to seek or renew licenses relating to various aspects of our products, processes and services. Although we have generally been able to obtain such licenses on commercially reasonable terms in the past, there is no guarantee that such licenses can be obtained in the future on reasonable terms, or at all. Because of technological changes in the industries in which we compete, current extensive patent coverage and the rapid rate of issuance of new patents, it is possible that certain components of our products, processes and services may unknowingly infringe existing patents or intellectual property rights of others. From time to time, we have been notified that we may be infringing certain patents or other intellectual property rights of third parties; however, no such notices have been received in the last two fiscal years.

Trademarks. We have developed and use trademarks in our business, particularly relating to our corporate and product names. We own seven trademarks that are registered with the United States Patent and Trademark Office, plus one trademark registered in Mexico. In addition, we have the Track Group trademark and design registered in various countries around the world.

We will file additional applications for the registration of our trademarks in foreign jurisdictions as our business expands under current and planned distribution arrangements. Protection of registered trademarks in some jurisdictions may not be as extensive as the protection provided by registration in the United States.

The following table summarizes our trademark registrations:

Application

Registration

Status/

Trademark

Number

Number

Next Action

TrackerPAL®

78/843035

3345878

Registered

Mobile911®

78/851384

3212937

Registered

TrackerPAL®

MX 805365

960954

Registered

ReliAlert®

85/238049

4200738

Registered

SecureCuff®

85/626037

4271621

Registered

Track Group®

86/301716

4701636

Registered

Track Group® and Design*

MP 1257077

1257077

Registered

Track Group®

88/852471

6198974

Registered

Track Group®

90/245541

6408353

Registered

* Track Group® and Design is also a registered trademark in the following jurisdictions/countries: European Union, Switzerland, Mexico, Canada and Chile.

Patents. We have 11 patents issued in the United States. At foreign patent offices, we have 11 patents issued.

The following tables summarize information regarding our patents and patent applications. There are no assurances given that the pending applications will be granted or that they will, if granted, contain all of the claims currently included in the applications.

Application

US Patents

Serial No.

Date Filed

Patent No.

Issue Date

Remote Tracking and Communication Device

11/202427

10-Aug-05

7330122

12-Feb-08

Remote Tracking and Communication Device

12/028088

8-Feb-08

7804412

28-Sep-10

Remote Tracking and Communication Device

12/875988

3-Sep-10

8031077

4-Oct-11

Alarm and Alarm Management System for Remote Tracking Devices

11/486992

14-Jul-06

7737841

15-Jun-10

A Remote Tracking Device and a System and Method for Two-Way Voice Communication Between the Device and a Monitoring Center

11/486989

14-Jul-06

8797210

5-Aug-14

A Remote Tracking Device and a System and Method for Two-Way Voice Communication Between the Device and a Monitoring Center

14/323831

3-Jul-14

9491289

8-Nov-16

A Remote Tracking System with a Dedicated Monitoring Center

11/486976

14-Jul-06

7936262

3-May-11

Remote Tracking System and Device with Variable Sampling and Sending Capabilities Based on Environmental Factors

11/486991

14-Jul-06

7545318

9-Jun-09

Tracking Device Incorporating Enhanced Security Mounting Strap

12/818453

18-Jun-10

8514070

20-Aug-13

Tracking Device Incorporating Cuff with Cut Resistant Materials

14/307260

17-Jun-14

9129504

8-Sep-15

A System and Method for Monitoring Individuals Using a Beacon and Intelligent Remote Tracking Device

12/399151

6-Mar-09

8232876

31-Jul-12

Application

International Patents

Serial No.

Date Filed

Patent No.

Issue Date

Remote Tracking and Communication Device - Canada

2617923

4-Feb-08

2617923

7-Jun-16

Remote Tracking and Communication Device - Mexico

MX/a/2008/001932

8-Feb-08

278405

24-Aug-10

Secure Strap Mounting System for an Offender Tracking Device - EPO

10009091.9

1-Sep-10

2466563

2-Nov-22

Secure Strap Mounting System for an Offender Tracking Device – United Kingdom

Refer to EP Patent # 2466563

Secure Strap Mounting System for an Offender Tracking Device - Romania

Refer to EP Patent # 2466563

Secure Strap Mounting System for an Offender Tracking Device - Mexico

MX/a/2011/002283

28-Feb-11

319057

4-Apr-14

Secure Strap Mounting System for an Offender Tracking Device - Canada

2732654

23-Feb-11

2732654

1-May-18

A System and Method for Monitoring Individuals Using a Beacon and Intelligent Remote Tracking Device - Canada

2717866

3-Sep-10

2717866

17-May-16

A System and Method for Monitoring Individuals Using a Beacon and Intelligent Remote Tracking Device - EPO

09 716 860.3

6-Oct-10

2260482

9-Jan-13

A System and Method for Monitoring Individuals Using a Beacon and Intelligent Remote Tracking Device - United Kingdom

Refer to EP Patent # 2260482

A System and Method for Monitoring Individuals Using a Beacon and Intelligent Remote Tracking Device - Mexico

MX/a/2010/009680

2-Sep-10

306920

22-Jan-13

Trade Secrets. We own certain intellectual property, including trade secrets, which we seek to protect, in part, through confidentiality agreements with employees and other parties. Even where these agreements exist, there can be no assurance that these agreements will not be breached, that we would have adequate remedies for any breach, or that our trade secrets will not otherwise become known to or independently developed by competitors.

We intend to protect our legal rights concerning intellectual property by all appropriate legal action. Consequently, we may become involved from time to time in litigation to determine the enforceability, scope, and validity of any of the foregoing proprietary rights. Any patent litigation could result in substantial cost and divert the efforts of management and technical personnel.

Government Regulation

Our operations are subject to various federal, state, local and international laws and regulations.

Currently, we are not involved in any pending or, to our knowledge, threatened governmental proceedings, which would require curtailment of our operations because of such laws and regulations.

Seasonality

Given the consistency in recurring domestic monitoring revenue by customers throughout Fiscal 2025, we detected no material seasonality in our business. However, as in previous years, incremental domestic device deployment opportunities typically slow down in the months of July and August. We believe this is due to the unavailability of judicial and corrections officials who observe a traditional vacation season during this period.

Employees

As of December 2, 2025, we had 91 full-time employees. None of the employees are represented by a labor union or subject to a collective bargaining agreement. We have never experienced a work stoppage and management believes that relations with employees are good.

Additional Available Information

We make available, free of charge, at our corporate website (www.trackgrp.com) copies of our annual reports filed with the Securities and Exchange Commission (“SEC”) on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, and all amendments to these reports, as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC pursuant to Section 13(a) or 15(d) of the Exchange Act. We also provide copies of our Forms 8-K, 10-K, 10-Q, and proxy statements at no charge to investors upon request.

All reports filed by us with the SEC are available free of charge via EDGAR through the SEC website at www.sec.gov.