New Jersey
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001-31990
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22-1441806
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(State or other Jurisdiction
of Incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit No.
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Description
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99.1*
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TEL-INSTRUMENT ELECTRONICS CORP.
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|||
Date: February 25, 2013
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By:
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/s/ Joseph P. Macaluso
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Name: Joseph P. Macaluso
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|||
Title: Principal Accounting Officer
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December 31, 2012
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March 31, 2012
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|||||||
(unaudited)
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||||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$ | 98,794 | 413,195 | |||||
Accounts receivable, net
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652,916 | 1,694,636 | ||||||
Unbilled government receivables
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1,051,657 | 1,780,381 | ||||||
Inventories, net
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6,804,031 | 5,023,975 | ||||||
Prepaid expenses and other
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93,874 | 220,255 | ||||||
Deferred debt expense
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148,727 | 108,321 | ||||||
Deferred income tax asset
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1,099,169 | 1,288,631 | ||||||
Total current assets
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9,949,168 | 10,529,394 | ||||||
Equipment and leasehold improvements, net
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607,546 | 706,870 | ||||||
Deferred debt expenses – long-term
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183,544 | 264,784 | ||||||
Deferred income tax asset – non-current
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2,057,765 | 948,489 | ||||||
Other assets
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56,872 | 56,872 | ||||||
Total assets
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12,854,895 | 12,506,409 | ||||||
LIABILITIES & STOCKHOLDERS’ EQUITY
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||||||||
Current liabilities:
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||||||||
Current portion long-term debt
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1,187,534 | 542,382 | ||||||
Capital lease obligations – current portion
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72,023 | 64,675 | ||||||
Accounts payable
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4,373,431 | 3,223,291 | ||||||
Deferred revenues – current portion
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24,426 | 34,767 | ||||||
Accrued payroll, vacation pay and payroll taxes
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369,455 | 440,116 | ||||||
Accrued expenses
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1,174,606 | 1,702,052 | ||||||
Total current liabilities
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7,201,475 | 6,007,283 | ||||||
Subordinated notes payable-related parties
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250,000 | 250,000 | ||||||
Capital lease obligations
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94,607 | 149,582 | ||||||
Deferred revenues
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1,853 | 4,637 | ||||||
Warrant liability
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200,634 | 355,290 | ||||||
Long-term debt, net of debt discount
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1,333,377 | 1,490,302 | ||||||
Total liabilities
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9,081,946 | 8,257,094 | ||||||
Commitments
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||||||||
Stockholders' equity:
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||||||||
Common stock, par value $.10 per share, 3,000,639 and 2,684,215 issued and outstanding
as of December 31, 2012 and March 31, 2012, respectively
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300,061 | 268,421 | ||||||
Additional paid-in capital
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7,057,117 | 5,921,441 | ||||||
Accumulated deficit
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(3,584,229 | ) | (1,940,547 | |||||
Total stockholders' equity
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3,772,949 | 4,249,315 | ||||||
Total liabilities and stockholders' equity
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$ | 12,854,895 | $ | 12,506,409 |
Three Months Ended
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Nine Months Ended
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|||||||||||||||
December 31, 2012
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December 31, 2011
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December 31, 2012
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December 31, 2011
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|||||||||||||
(Restated)
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||||||||||||||||
Net sales
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$
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2,350,020
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$
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3,673,235
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5,922,258
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$
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11,337,800
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|||||||||
Cost of sales
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1,896,652
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2,227,856
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4,582,773
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6,547,563
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||||||||||||
Gross margin
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453,368
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1,445,379
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1,339,485
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4,790,237
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||||||||||||
Operating expenses:
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||||||||||||||||
Selling, general and administrative
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587,146
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724,636
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1,927,380
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2,191,332
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||||||||||||
Engineering, research and development
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481,055
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633,136
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1,608,459
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2,160,107
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||||||||||||
Total operating expenses
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1,068,201
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1,357,772
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3,535,839
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4,351,439
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||||||||||||
Income (loss) from operations
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(614,833
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)
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87,607
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(2,196,354
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)
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438,798
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||||||||||
Other income (expense):
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||||||||||||||||
Amortization of debt discount
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(37,948
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)
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(13,386
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)
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(82,349
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)
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(40,177
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)
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||||||||
Amortization of debt expense
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(68,384
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)
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(27,081
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)
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(152,175
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)
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(81,241
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)
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||||||||
Financing Costs
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(21,441
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)
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-
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(47,918
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)
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-
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||||||||||
Change in fair value of common stock warrants
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19,710
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130,433
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268,767
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66,738
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||||||||||||
Gain on sale of capital asset
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-
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500
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-
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500
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||||||||||||
Proceeds from life insurance policy
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-
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-
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-
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300,029
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||||||||||||
Interest income
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420
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224
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433
|
418
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||||||||||||
Interest expense
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(126,489
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)
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(103,155
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)
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(349,989
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)
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(302,265
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)
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||||||||
Total other income (expense)
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(234,132
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)
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(12,465
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)
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(363,231
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)
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(55,998
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)
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||||||||
Income (loss) before income taxes
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(848,965
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)
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75,142
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(2,559,585
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)
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382,800
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||||||||||
Income tax expense (benefit)
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(303,788
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)
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(22,289
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)
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(915,903
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)
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262,848
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|||||||||
Net income (loss)
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$
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(545,177
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)
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$
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97,431
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$
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(1,643,682
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)
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$
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119,952
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||||||
Basic income (loss) per common share
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$
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(0.19
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)
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$
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0.04
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$
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(0.59
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)
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$
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0.05
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||||||
Diluted income (loss) per common share
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$
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(0.19
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)
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$
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0.04
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$
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(0.59
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)
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$
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0.04
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||||||
Weighted average shares outstanding:
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||||||||||||||||
Basic
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2,912,516
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2,652,864
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2,776,643
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2,650,032
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||||||||||||
Diluted
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2,912,516
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2,706,078
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2,776,643
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2,718,720
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