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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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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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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o
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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 24, 2016
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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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Revenues increased to $5.97 million, a 19% increase versus the comparable period of fiscal year 2015.
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·
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Gross margins improved to 34% versus 31% in the comparable period of fiscal year 2015.
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·
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Operating income increased to $725k as compared to $226k in the third quarter of fiscal year 2015.
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·
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Non-GAAP EBITDA of $773,862 or $0.24 per share.
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·
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GAAP earnings per share of $0.07 per share, versus a loss of $0.01 per share in 2015.
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·
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Net working capital since the start of the fiscal year 2016 improved $1.6 million to $4.2 million.
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·
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Replaced our U.S. Army and U.S. Air Force outside marketing reps with internal resources to reduce commissions on the TS-4530A contract and drive future business with these key customers.
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Contact: | Joseph P. Macaluso | John Nesbett or Jennifer Belodeau |
Tel-Instrument Electronics Corp. | Institutional Marketing Services (IMS) | |
(201) 933-1600 | (203) 972-9200 | |
jnesbett@institutionalms.com |
December 31,
2015
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March 31,
2015
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|||||||
(unaudited)
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||||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$
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629,053
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$
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185,932
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||||
Accounts receivable, net
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1,027,437
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1,625,171
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||||||
Inventories, net
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4,808,364
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4,032,074
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||||||
Prepaid expenses and other current assets
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251,417
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281,002
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||||||
Deferred financing costs
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5,429
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5,429
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||||||
Deferred income tax asset
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1,064,395
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1,064,395
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||||||
Total current assets
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7,786,095
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7,194,003
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||||||
Equipment and leasehold improvements, net
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193,434
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270,792
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||||||
Deferred financing costs – long-term
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4,720
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8,792
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||||||
Deferred income tax asset – non-current
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1,764,767
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2,377,583
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||||||
Other long-term assets
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33,509
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32,317
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||||||
Total assets
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9,782,525
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9,883,487
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||||||
LIABILITIES & STOCKHOLDERS’ EQUITY
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||||||||
Current liabilities:
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||||||||
Current portion of long-term debt, net of debt discount
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411,912
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387,839
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||||||
Capital lease obligations – current portion
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8,971
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16,758
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||||||
Accounts payable and accrued liabilities
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2,339,126
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3,577,566
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||||||
Deferred revenues – current portion
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23,275
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18,609
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||||||
Accrued payroll, vacation pay and payroll taxes
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809,133
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594,114
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||||||
Total current liabilities
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3,592,417
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4,594,886
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||||||
Subordinated notes payable - related parties
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45,000
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250,000
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||||||
Capital lease obligations – long-term
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-
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4,561
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||||||
Long-term debt
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411,594
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708,604
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||||||
Deferred revenues – long-term
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134,385
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133,650
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||||||
Warrant liability
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1,216,541
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518,962
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||||||
Other long-term liabilities
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14,100
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33,000
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||||||
Total liabilities
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5,414,037
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6,243,663
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||||||
Commitments
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||||||||
Stockholders' equity:
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||||||||
Common stock, 4,000,000 shares authorized, par value $0.10 per share,
3,256,887 and 3,256,887 shares issued and outstanding, respectively
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325,686
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325,686
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||||||
Additional paid-in capital
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8,069,714
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8,046,168
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||||||
Accumulated deficit
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(4,026,912
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)
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(4,732,030
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)
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||||
Total stockholders' equity
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4,368,488
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3,639,824
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||||||
Total liabilities and stockholders' equity
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$
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9,782,525
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$
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9,883,487
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Three Months Ended
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Nine Months Ended
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|||||||||||||||
December 31,
2015
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December 31,
2014
|
December 31,
2015
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December 31,
2014
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|||||||||||||
Net sales
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$
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5,970,865
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$
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5,030,097
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18,635,174
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$
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11,746,847
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|||||||||
Cost of sales
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3,936,108
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3,484,310
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12,541,656
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8,211,499
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||||||||||||
Gross margin
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2,034,757
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1,545,787
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6,093,518
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3,535,348
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||||||||||||
Operating expenses:
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||||||||||||||||
Selling, general and administrative
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767,923
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825,261
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2,517,487
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2,364,488
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||||||||||||
Engineering, research and development
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541,502
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494,721
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1,477,290
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1,476,343
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||||||||||||
Total operating expenses
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1,309,425
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1,319,982
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3,994,777
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3,840,831
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||||||||||||
Income (loss) from operations
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725,332
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225,805
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2,098,741
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(305,483
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)
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|||||||||||
Other income (expense):
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||||||||||||||||
Amortization of debt discount
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-
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(14,373
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)
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-
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(75,308
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)
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||||||||||
Loss on extinguishment of debt
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-
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(188,102
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)
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-
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(188,102
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)
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||||||||||
Amortization of deferred financing costs
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(1,357
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)
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(13,648
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)
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(4,072
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)
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(67,808
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)
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||||||||
Change in fair value of common stock warrants
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(246,751
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)
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37,330
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(697,579
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)
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(68,750
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)
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|||||||||
Interest expense
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(23,685
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)
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(39,137
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)
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(79,154
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)
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(159,004
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)
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||||||||
Total other expense
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(271,793
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)
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(217,930
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)
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(780,805
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)
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(558,972
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)
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||||||||
Income (loss) before income taxes
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453,539
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7,875
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1,317,936
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(864,455
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)
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|||||||||||
Income tax expense (benefit)
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226,951
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28,819
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612,816
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(211,311
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)
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|||||||||||
Net income (loss)
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$
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226,588
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$
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(20,944
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)
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$
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705,120
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$
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(653,144
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)
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||||||
Basic income (loss) per common share
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$
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0.07
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$
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(0.01
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)
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$
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0.22
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$
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(0.20
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)
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||||||
Diluted income (loss) per common share
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$
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0.07
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$
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(0.01
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)
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$
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0.22
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$
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(0.20
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)
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||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
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3,256,887
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3,255,028
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3,256,887
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3,253,045
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||||||||||||
Diluted
|
3,261,690
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3,255,028
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3,261,955
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3,253,045
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Three Months
|
Three Months
|
|||||||
Ended
|
Ended
|
|||||||
December 31,
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December 31,
|
|||||||
2015
|
2014
|
|||||||
Net income (loss)
|
$ | 226,588 | $ | (20,944 | ) | |||
Income tax provision (benefit)
|
226,951 | 28,819 | ||||||
Depreciation and amortization
|
40,027 | 45,047 | ||||||
Amortization of debt discount
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- | 14,373 | ||||||
Loss on extinguishment of debt
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- | 188,102 | ||||||
Amortization of deferred financing costs
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1,357 | 13,648 | ||||||
Change on fair value of common stock warrants
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246,751 | (37,330 | ) | |||||
Interest, net
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23,685 | 39,137 | ||||||
Non-cash stock-based compensation
|
8,503 | 8,829 | ||||||
Non-GAAP EBITDA
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$ | 773,862 | $ | 279,681 | ||||
Non-GAAP EBITDA per common share
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$ | 0.24 | $ | 0.09 | ||||
Basic weighted average shares outstanding
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3,256,887 | 3,255,028 |