XML 28 R7.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Note 1 - Company Operations
12 Months Ended
Sep. 28, 2019
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
(
1
)       Company Operations
 
Technical Communications Corporation (“TCC”) was incorporated in Massachusetts in
1961;
its wholly-owned subsidiary, TCC Investment Corp., was organized in that jurisdiction in
1982.
Technical Communications Corporation and TCC Investment Corp. are collectively referred to herein as the “Company”. The Company’s business consists of only
one
industry segment, which is the design, development, manufacture, distribution, marketing and sale of communications security devices, systems and services. The secure communications solutions provided by TCC protect vital information transmitted over a wide range of data, video, fax and voice networks. TCC’s products have been sold into over
115
countries and are in service with governments, military agencies, telecommunications carriers, financial institutions and multinational corporations.
 
Liquidity and Ability to Continue as a Going Concern
 
For the fiscal year ended
September 28, 2019,
the Company generated
$631,000
of net income. For the prior
seven
year period from fiscal
2012
to fiscal
2018,
the Company suffered recurring losses from operations and had an accumulated deficit of
$2,155,000
at
September 28, 2019.
Despite the current year net income, these factors continue to raise substantial doubt about the Company's ability to continue as a going concern within
one
year from the issuance date of the consolidated financial statements included in this Annual Report on Form
10
-K. Such consolidated financial statements do
not
include any adjustments to reflect the substantial doubt about the Company’s ability to continue as a going concern.
 
The Company anticipates that its principal sources of liquidity will only be sufficient to fund activities to
September 26, 2020.
In order to have sufficient cash to fund operations beyond that point, the Company will need to secure new customer contracts, raise additional capital and reduce expenses, including payroll and payroll-related expenses.
 
In order to have sufficient capital resources to fund operations, the Company has been working diligently to secure several large orders with new and existing customers. In addition, the Company is considering raising capital through equity or debt arrangements. Although it believes its ability to secure such new business and raise new capital is likely, it cannot provide assurances it will be able to do so.
 
Should the Company be unsuccessful in these efforts, it would then be forced to implement headcount reductions, employee furloughs and/or reduced hours for certain employees or cease operations completely.