Company Presentation | NASDAQ:DYNT | December 2019

A C C E L E R A T I N G H E A L T H ™

Safe Harbor / Non-GAAP Financial Measures

This presentation contains information that includes or is based on forward‐looking statements within the meaning of

the federal securities law that are subject to various risks and uncertainties that could cause our actual results to differ

materially from those expressed or implied in such statements. Such factors include, but are not limited to: weakening

of economic conditions that could adversely affect the level of demand for our products; pricing pressures generally;

difficulties or delays in manufacturing; legislative and regulatory actions; changes in reimbursement level from

third‐party payers; a significant increase in product liability claims; the impact of federal legislation to reform the United

States healthcare system; changes in financial markets; changes in the competitive environment; and our ability to

realize anticipated operational and manufacturing efficiencies. Additional information concerning these and other

factors is contained in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on

Form 10‐K and Quarterly Reports on Form 10‐Q. These forward-looking statements are made based upon our current

expectations and we undertake no duty to update them or any of the information contained in this presentation.

Certain non-GAAP financial measures are included in this presentation. A reconciliation of these non-GAAP financial

measures to the most comparable GAAP financial measures accompanies any reference to them in the presentation.

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Our Mission

Deliver restorative products to

accelerate optimal health.

We will achieve this goal through a

focused strategy of (1) driving

organic revenue, (2) margin

expansion, and (3) a disciplined

acquisition strategy.

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Dynatronics at a Glance

~5,000 Customers

+ Thousands of Private Practice Therapists and Athletic Trainers

4

Leading Brands

OfficesProduct Categories

0

50

100

'16 '17 '18 '19

Guidance FY20:

$58-62M

Executive Offices in

Eagan, MN

~280 Employees

Revenue

The Markets Served

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U.S. Market Opportunity ($13B)

Athletic Training$200MM

Chiropractic$350MM

Physical Therapy$1.5B

Long-Term Care$11B

Market Drivers

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• Weekend warriors

continues to grow

• Speed of recovery from

injury matters

• Maintain optimal health to

stay in the game

• Growth in sports participation

by young adults

• Participating in recreational

activity, such as mountain

biking and skiing

• Greater investment in athletes

• Active and healthy lifestyles in middle

and senior age

• Independent living and quality of life

matters

Organic Growth

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• Blue light therapy for infections

• Red light treats inflammation

and promotes healing

• Immediate pain relief

through targeted hot & cold

electrotherapy

• Secure patient anchoring for

effective stretching

• Forces correct technique in

therapy routines

• Bars meet the patient at right

width and height

• Raising the bars safely to

move patient to upright

position

• Safe and effective

strengthening routines

Business Execution

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Professional management

Standardize business processes

Rationalize product lines

Create center of excellence

Enhance quality systems

Optimize ERP platforms

Business results FY2019

• Headcount reduction 15%

• SG&A reduction 7.9%

• Improved operating income 36.4%

M & A Strategy

Revenue target

$5MM to $30MM

Respected &

established brand(s)

known in market

Good culture fit;

ease of integration

Cash flow

contribution

by year 2

Products focused

on existing or

adjacent market

segments

Gross margin

accretive

(driving target

of >40%)

Value Buyer w/ Focused Criteria

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Year Ended June 30 Guidance Long-Term Goals

2018 2019 1Q20 2020 2025

Total Revenue $64.4 $62.6 $16.4 $58.0 - $62.0 $175 - $200

Revenue Growth YoY 80.1% (2.9%) (4.0%) (7%) - (1%)

Gross Profit(1) $20.8 $19.2 $5.2 $18.0 - $19.2 $70 - $80

Gross Margin (% of Revenue) 32.3% 30.6% 31.9% 31% 40%

SG&A $21.7 $20.0 $4.9 $18.0 - 19.2 Op Ex of < 30%

Total Operating Expenses $21.7 $20.0 $4.9 31%

% of Revenue 33.6% 31.9% 30.0%

Operating Profit ($0.9) ($0.8) $0.3

Depreciation and Amortization $1.2 $1.5 $0.4

EBITDA $0.4 $0.7 $0.7

Adjustments(2) $2.0 $0.6 $0.1

Adjusted EBITDA* $2.4 $1.3 $0.8 $17.5 - $20.0

Adjusted EBITDA (% of Revenue)* 3.7% 2.0% 4.9% 10.0%

Financial Overview

(1) Gross Profit adjusted for inventory write-offs of $315k in 2017 and $385k in 2018.

(2) 2018 adjustments include severance, transaction costs, and other one-time charges; 2019 adjustments include severance and other one-time charges; 2020

adjustments include severance, stock-based compensation, and other one-time charges.

*These are non-GAAP financial measures.

($ in millions)

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Capitalization / Ownership Table

(1) Convertible one for one into Common. 8% annual dividend payable in cash or stock at Company preference.

(2) Convertible one for one into Common. Contain no dividend or liquidation preferences and have no redemption or voting rights.

(3) Weighted average exercise price for options and warrants of $3.14 and $2.75 respectively. Warrants are not calculated using the treasury stock method. Cash proceeds

if all options and warrants were exercised would generate ~$14.4 million. 1.5 million warrants are convertible on a cashless basis one for one.

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Common Shares Outstanding 8,849,928

8% Convertible Preferred Stock(1) 3,459,000

0% Convertible Preferred Stock(2) 1,440,000

Total Shares (Before Options & Warrants) 13,748,928

Total Options and Warrants(3) 6,930,296

Line of Credit $5,076,906

Less: Cash $475,154

Net Bank Debt as of 09/30/2019 $4,601,752

Reasons to Invest

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• We service multiple markets all

forecasting meaningful growth

• Our brands are well-known and

trusted

• We offer differentiated products that

restore and maintain optimal health

• We are positioned to add scale with

our proven M&A strategy and our

demonstrated ability to integrate 2025

$175 -$200MM