Dynatronics files Chapter 7 bankruptcy, ceases operations

Dynatronics Corporation (NASDAQ: DYNT) and its subsidiaries filed for Chapter 7 bankruptcy protection on January 9, 2026, and ceased operations, according to a company filing.

The filing includes Dynatronics Corporation and its wholly-owned subsidiaries Hausmann Enterprises, LLC, Bird & Cronin, LLC, and Dynatronics Distribution Company, LLC. The cases were filed in the United States Bankruptcy Court for the District of Minnesota.

A Chapter 7 trustee will be appointed by the bankruptcy court to administer each company's bankruptcy estate and liquidate assets according to the Bankruptcy Code. The court will schedule an initial hearing for creditors and send notices to known creditors once trustees are appointed.

The bankruptcy filings triggered default events under several company agreements, including the Loan and Security Agreement dated August 1, 2023, with Gibraltar Business Capital, LLC. The filings also activated redemption rights under the company's Series A 8% Convertible Preferred Stock and Series B Convertible Preferred Stock designations.

The appointed Chapter 7 trustees will assume control over the debtors' assets and liabilities, eliminating the authority of the company's board of directors and executive officers. All directors resigned from their positions, including Brian Baker, Andrew Hulett, R. Scott Ward, Erin S. Enright, and David B. Holtz.

Chief Executive Officer Brian Baker and other executive officers ceased to be officers and employees of the company effective upon the trustee appointments. The company stated the resignations were not due to disagreements regarding operations, policies, or practices.

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