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: July 1, 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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ASSETS
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March 31, 2014
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March 31, 2013
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||||||
Current assets:
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||||||||
Cash
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$
|
232,118
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$
|
310,297
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||||
Accounts receivable, net of allowance for doubtful accounts
of $27,282 and $18,940, respectively
|
2,095,640
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557,879
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||||||
Inventories, net
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4,025,391
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6,241,181
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||||||
Prepaid expenses and other current assets
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263,592
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115,852
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||||||
Deferred financing costs
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108,321
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108,321
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||||||
Deferred tax asset
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1,089,538
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1,238,421
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||||||
Total current assets
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7,814,600
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8,571,951
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||||||
Equipment and leasehold improvements, net
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450,873
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587,958
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||||||
Deferred financing costs – long-term
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48,142
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156,463
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||||||
Deferred tax asset – non-current
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2,273,068
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2,546,190
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||||||
Other assets
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47,670
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56,872
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||||||
Total assets
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$
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10,634,353
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$
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11,919,434
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||||||
Current liabilities:
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||||||||
Current portion of long-term debt
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$
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718,848
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$
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1,229,643
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||||
Capital lease obligations – current portion
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53,608
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74,508
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||||||
Accounts payable
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2,289,858
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4,272,431
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||||||
Progress billings
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775,475
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-
|
||||||
Deferred revenues – current portion
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37,452
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18,460
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||||||
Accrued expenses - vacation pay, payroll and payroll withholdings
|
444,238
|
442,522
|
||||||
Accrued expenses - related parties
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123,036
|
100,536
|
||||||
Accrued expenses – other
|
919,287
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1,425,002
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||||||
Total current liabilities
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5,361,802
|
7,563,102
|
||||||
Subordinated notes payable – related parties
|
250,000
|
250,000
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||||||
Capital lease obligations – long-term
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21,320
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76,055
|
||||||
Long-term debt, net of debt discount
|
596,526
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1,134,549
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||||||
Warrant liability
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354,309
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198,330
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||||||
Deferred revenues – long-term
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133,650
|
1,045
|
||||||
Other long-term liabilities
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56,100
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-
|
||||||
Total liabilities
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6,773,707
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9,223,081
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||||||
Commitments and contingencies
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||||||||
Stockholders’ equity
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||||||||
Common stock, 4,000,000 shares authorized, par value $.10 per share,
3,251,387 and 3,011,739 shares issued and outstanding, respectively
|
325,136
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301,171
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||||||
Additional paid-in capital
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7,987,100
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7,108,300
|
||||||
Accumulated deficit
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(4,451,590
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)
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(4,713,118
|
)
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||||
Total stockholders’ equity
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3,860,646
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2,696,353
|
||||||
Total liabilities and stockholders’ equity
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$
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10,634,353
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$
|
11,919,434
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For the years ended March 31,
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||||||||
2014
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2013
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|||||||
Net sales
|
$
|
15,828,291
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$
|
7,827,258
|
||||
Cost of sales
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9,464,404
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6,866,036
|
||||||
Gross margin
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6,363,887
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961,222
|
||||||
Operating expenses:
|
||||||||
Selling, general and administrative
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3,146,647
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2,564,637
|
||||||
Engineering, research and development
|
1,853,338
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2,149,591
|
||||||
Total operating expenses
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4,999,985
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4,714,228
|
||||||
Income (loss) from operations
|
1,363,902
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(3,753,006
|
)
|
|||||
Other income (expense):
|
||||||||
Amortization of debt discount
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(104,644
|
)
|
(129,763
|
)
|
||||
Amortization of deferred financing costs
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(108,321
|
)
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(219,662
|
)
|
||||
Change in fair value of common stock warrants
|
(114,869
|
)
|
294,785
|
|||||
Loss on extinguishment of debt
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(26,600
|
)
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-
|
|||||
Interest income
|
226
|
434
|
||||||
Interest expense
|
(275,321
|
)
|
(478,939
|
)
|
||||
Interest expense - related parties
|
(30,000
|
)
|
(30,000
|
)
|
||||
Total other expense
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(659,529
|
)
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(563,145
|
)
|
||||
Income (loss) before income taxes
|
704,373
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(4,316,151
|
)
|
|||||
Provision (benefit) for income taxes
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442,845
|
(1,543,580
|
)
|
|||||
Net income (loss)
|
$
|
261,528
|
$
|
(2,772,571
|
)
|
|||
Basic income (loss) per common share
|
$
|
0.08
|
$
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(0.98
|
)
|
|||
Diluted income (loss) per common share
|
$
|
0.10
|
$
|
(0.98
|
)
|
|||
Weighted average number of shares outstanding
|
||||||||
Basic
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3,204,028
|
2,834,257
|
||||||
Diluted
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3,228,894
|
2,834,257
|