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 17, 2015
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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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·
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40% increase in revenues from the second quarter and 23% compared to the year-ago period.
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·
|
Non-GAAP EBITDA of $279,681 (see reconciliation on page 5).
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·
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GAAP pre-tax income of $7,875, net loss after taxes of $20,944.
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·
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Refinanced high cost debt with $1.2 million three-year, 6% term loan.
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·
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Backlog remains strong at $32.6 million.
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·
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Full rate production achieved on ITATS TACAN Bench Tester.
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·
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Resumed full rate production on CRAFT program.
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·
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Approval to increase KIT production for U.S. Army TS-4530A program in the 4th quarter.
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·
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Commenced production on $600,000 order for T-47N IFF test sets for the U.S. Army in 4th quarter.
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·
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Engineering continues on next generation test sets to expand our product line.
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Contact: Joseph P. Macaluso
Tel-Instrument Electronics Corp.
(201) 933-1600
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John Nesbett or Jennifer Belodeau
Institutional Marketing Services (IMS)
(203) 972-9200
jnesbett@institutionalms.com
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December 31,
2014
|
March 31,
2014
|
|||||||
(unaudited)
|
||||||||
ASSETS
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||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
331,991
|
232,118
|
|||||
Accounts receivable, net
|
614,239
|
2,095,640
|
||||||
Inventories, net
|
4,583,365
|
4,025,391
|
||||||
Prepaid expenses and other current assets
|
463,661
|
263,592
|
||||||
Deferred financing costs
|
5,429
|
108,321
|
||||||
Deferred income tax asset
|
1,089,538
|
1,089,538
|
||||||
Total current assets
|
7,088,223
|
7,814,600
|
||||||
Equipment and leasehold improvements, net
|
310,566
|
450,873
|
||||||
Deferred financing costs – long-term
|
10,149
|
48,142
|
||||||
Deferred income tax asset – non-current
|
2,484,379
|
2,273,068
|
||||||
Other long-term assets
|
32,317
|
47,670
|
||||||
Total assets
|
9,925,634
|
10,634,353
|
||||||
LIABILITIES & STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt, net of debt discount
|
382,169
|
718,848
|
||||||
Capital lease obligations – current portion
|
16,188
|
53,608
|
||||||
Accounts payable and accrued liabilities
|
3,728,861
|
3,332,181
|
||||||
Progress billings
|
256,816
|
775,475
|
||||||
Deferred revenues – current portion
|
81,388
|
37,452
|
||||||
Accrued payroll, vacation pay and payroll taxes
|
527,228
|
444,238
|
||||||
Total current liabilities
|
4,992,650
|
5,361,802
|
||||||
Subordinated notes payable - related parties
|
250,000
|
250,000
|
||||||
Capital lease obligations – long-term
|
8,971
|
21,320
|
||||||
Long-term debt
|
807,859
|
596,526
|
||||||
Deferred revenues – long-term
|
133,650
|
133,650
|
||||||
Warrant liability
|
423,059
|
354,309
|
||||||
Other long-term liabilities
|
45,600
|
56,100
|
||||||
Total liabilities
|
6,661,789
|
6,773,707
|
||||||
Commitments
|
||||||||
Stockholders' equity:
|
||||||||
Common stock, 4,000,000 shares authorized, par value $.10 per share,
3,256,887 and 3,251,387 shares issued and outstanding, respectively
|
325,686
|
325,136
|
||||||
Additional paid-in capital
|
8,042,893
|
7,987,100
|
||||||
Accumulated deficit
|
(5,104,734
|
)
|
(4,451,590
|
)
|
||||
Total stockholders' equity
|
3,263,845
|
3,860,646
|
||||||
Total liabilities and stockholders' equity
|
$
|
9,925,634
|
$
|
10,634,353
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
December 31,
2014
|
December 31,
2013
|
December 31,
2014
|
December 31,
2013
|
|||||||||||||
Net sales
|
$
|
5,030,097
|
$
|
4,089,029
|
11,746,847
|
$
|
11,323,585
|
|||||||||
Cost of sales
|
3,484,310
|
2,693,342
|
8,211,499
|
7,465,991
|
||||||||||||
Gross margin
|
1,545,787
|
1,395,687
|
3,535,348
|
3,857,594
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Selling, general and administrative
|
825,261
|
697,919
|
2,364,488
|
2,022,579
|
||||||||||||
Engineering, research and development
|
494,721
|
449,477
|
1,476,343
|
1,378,426
|
||||||||||||
Total operating expenses
|
1,319,982
|
1,147,396
|
3,840,831
|
3,401,005
|
||||||||||||
Income (loss) from operations
|
225,805
|
248,291
|
(305,483
|
)
|
456,589
|
|||||||||||
Other income (expense):
|
||||||||||||||||
Amortization of debt discount
|
(14,373
|
)
|
(27,120
|
)
|
(75,308
|
)
|
(75,707
|
)
|
||||||||
Loss on extinguishment of debt
|
(188,102
|
)
|
-
|
(188,102
|
)
|
(26,600
|
)
|
|||||||||
Amortization of deferred financing costs
|
(13,648
|
)
|
(27,827
|
)
|
(67,808
|
)
|
(81,987
|
)
|
||||||||
Change in fair value of common stock warrants
|
37,330
|
(229,726
|
)
|
(68,750
|
)
|
(272,499
|
)
|
|||||||||
Interest income
|
-
|
129
|
-
|
163
|
||||||||||||
Interest expense
|
(39,137
|
)
|
(50,828
|
)
|
(159,004
|
)
|
(252,295
|
)
|
||||||||
Total other income (expense)
|
(217,930
|
)
|
(335,372
|
)
|
(558,972
|
)
|
(708,925
|
)
|
||||||||
Income (loss) before income taxes
|
7,875
|
(87,081
|
)
|
(864,455
|
)
|
(252,336
|
)
|
|||||||||
Income tax expense (benefit)
|
28,819
|
58,852
|
(211,311
|
)
|
51,843
|
|||||||||||
Net loss
|
$
|
(20,944
|
)
|
$
|
(145,933
|
)
|
$
|
(653,144
|
)
|
$
|
(304,179
|
)
|
||||
Basic loss per common share
|
$
|
(0.01
|
)
|
$
|
(0.04
|
)
|
$
|
(0.20
|
)
|
$
|
(0.10
|
)
|
||||
Diluted loss per common share
|
$
|
(0.01
|
)
|
$
|
(0.04
|
)
|
$
|
(0.20
|
)
|
$
|
(0.10
|
)
|
||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
3,255,028
|
3,247,387
|
3,253,045
|
3,189,123
|
||||||||||||
Diluted
|
3,255,028
|
3,247,387
|
3,253,045
|
3,189,123
|
Three Months
|
Three Months
|
|||||||
Ended
|
Ended
|
|||||||
December 31,
|
December 31,
|
|||||||
Description
|
2014
|
2013
|
||||||
Net loss
|
$ | (20,944 | ) | $ | (145,933 | ) | ||
Income tax provision
|
$ | 28,819 | $ | 58,852 | ||||
Depreciation and amortization
|
$ | 45,047 | $ | 49,453 | ||||
Amortization of debt discount
|
$ | 14,373 | $ | 27,120 | ||||
Loss on extinguishment of debt
|
$ | 188,102 | $ | 0 | ||||
Amortization of deferred financing costs
|
$ | 13,648 | $ | 27,827 | ||||
Change on fair value of common stock warrants
|
$ | (37,330 | ) | $ | 229,726 | |||
Interest, net
|
39,137 | 50,828 | ||||||
Non-cash stock-based compensation
|
$ | 8,829 | $ | 16,352 | ||||
Non GAAP EBITDA
|
$ | 279,681 | $ | 314,225 |