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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TEL-INSTRUMENT ELECTRONICS CORP.
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|||
Date: February 19, 2014
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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,
2013
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March 31,
2013
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|||||||
(unaudited)
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||||||||
ASSETS
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||||||||
Current assets:
|
||||||||
Cash and cash equivalents
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$
|
216,347
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310,297
|
|||||
Accounts receivable, net
|
1,129,913
|
557,879
|
||||||
Inventories, net
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4,509,600
|
6,241,181
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||||||
Prepaid expenses and other
|
143,929
|
115,852
|
||||||
Deferred financing costs
|
113,876
|
108,321
|
||||||
Deferred income tax asset
|
1,239,761
|
1,238,421
|
||||||
Total current assets
|
7,353,426
|
8,571,951
|
||||||
Equipment and leasehold improvements, net
|
445,735
|
587,958
|
||||||
Deferred financing costs – long-term
|
78,921
|
156,463
|
||||||
Deferred income tax asset – non-current
|
2,494,347
|
2,546,190
|
||||||
Other assets
|
56,872
|
56,872
|
||||||
Total assets
|
10,429,301
|
11,919,434
|
||||||
LIABILITIES & STOCKHOLDERS’ EQUITY
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||||||||
Current liabilities:
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||||||||
Current portion long-term debt
|
641,254
|
1,229,643
|
||||||
Capital lease obligations – current portion
|
69,448
|
74,508
|
||||||
Accounts payable
|
2,233,671
|
4,272,431
|
||||||
Progress billings
|
795,050
|
-
|
||||||
Deferred revenues – current portion
|
8,155
|
18,460
|
||||||
Accrued payroll, vacation pay and payroll taxes
|
394,432
|
442,522
|
||||||
Accrued expenses
|
1,389,487
|
1,525,538
|
||||||
Total current liabilities
|
5,531,497
|
7,563,102
|
||||||
Subordinated notes payable-related parties
|
250,000
|
250,000
|
||||||
Capital lease obligations – long-term
|
25,159
|
76,055
|
||||||
Deferred revenues – long-term
|
118,350
|
1,045
|
||||||
Warrant liability
|
511,939
|
198,330
|
||||||
Long-term debt, net of debt discount
|
743,290
|
1,134,549
|
||||||
Total liabilities
|
7,180,235
|
9,223,081
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||||||
Commitments
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||||||||
Stockholders' equity:
|
||||||||
Common stock, par value $0.10 per share, 3,248,387 and 3,011,739 issued and outstanding
as of December 31, 2013 and March 31, 2013, respectively
|
324,886
|
301,171
|
||||||
Additional paid-in capital
|
7,941,477
|
7,108,300
|
||||||
Accumulated deficit
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(5,017,297
|
)
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(4,713,118
|
)
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||||
Total stockholders' equity
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3,249,066
|
2,696,353
|
||||||
Total liabilities and stockholders' equity
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$
|
10,429,301
|
$
|
11,919,434
|
Three Months Ended
|
Nine Months Ended
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|||||||||||||||
December 31,
2013
|
December 31,
2012
|
December 31,
2013
|
December 31,
2012
|
|||||||||||||
Net sales
|
$
|
4,089,029
|
$
|
2,350,020
|
11,323,585
|
$
|
5,922,258
|
|||||||||
Cost of sales
|
2,693,342
|
1,896,652
|
7,465,991
|
4,582,773
|
||||||||||||
Gross margin
|
1,395,687
|
453,368
|
3,857,594
|
1,339,485
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Selling, general and administrative
|
697,919
|
587,146
|
2,022,579
|
1,927,380
|
||||||||||||
Engineering, research and development
|
449,477
|
481,055
|
1,378,426
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1,608,459
|
||||||||||||
Total operating expenses
|
1,147,396
|
1,068,201
|
3,401,005
|
3,535,839
|
||||||||||||
Income (loss) from operations
|
248,291
|
(614,833
|
)
|
456,589
|
(2,196,354
|
)
|
||||||||||
Other income (expense):
|
||||||||||||||||
Amortization of debt discount
|
(27,120
|
)
|
(37,948
|
)
|
(75,707
|
)
|
(82,349
|
)
|
||||||||
Loss on extinguishment of debt
|
0
|
-
|
(26,600
|
)
|
-
|
|||||||||||
Amortization of deferred financing costs
|
(27,827
|
)
|
(68,383
|
)
|
(81,987
|
)
|
(152,174
|
)
|
||||||||
Financing costs
|
-
|
(21,441
|
)
|
-
|
(47,918
|
)
|
||||||||||
Change in fair value of common stock Warrants
|
(229,726
|
)
|
19,710
|
(272,499
|
)
|
268,767
|
||||||||||
Interest income
|
129
|
420
|
163
|
433
|
||||||||||||
Interest expense
|
(50,828
|
)
|
(126,490
|
)
|
(252,295
|
)
|
(349,990
|
)
|
||||||||
Total other income (expense)
|
(335,372
|
)
|
(234,132
|
)
|
(708,925
|
)
|
(363,231
|
)
|
||||||||
Loss before income taxes
|
(87,081
|
)
|
(848,965
|
)
|
(252,336
|
)
|
(2,559,585
|
)
|
||||||||
Income tax expense (benefit)
|
58,852
|
(303,788
|
)
|
51,843
|
(915,903
|
)
|
||||||||||
Net loss
|
$
|
(145,933
|
)
|
$
|
(545,177
|
)
|
$
|
(304,179
|
)
|
$
|
(1,643,682
|
)
|
||||
Basic income (loss) per common share
|
$
|
(0.04
|
)
|
$
|
(0.19
|
)
|
$
|
(0.10
|
)
|
$
|
(0.59
|
)
|
||||
Diluted income (loss) per common share
|
$
|
(0.04
|
)
|
$
|
(0.19
|
)
|
$
|
(0.10
|
)
|
$
|
(0.59
|
)
|
||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
3,247,387
|
2,912,516
|
3,189,123
|
2,776,643
|
||||||||||||
Diluted
|
3,247,387
|
2,912,516
|
3,189,123
|
2,776,643
|