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: June 29, 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 $24.8 million, a 36% increase versus fiscal year 2015
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·
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Gross margin as a percentage of revenues improved to 32.2% versus 29.9% in fiscal year 2015
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·
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Operating income increased to $2.6 million as compared to $330,000 in fiscal year 2015
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·
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Net Income of $1 million as compared to a loss of $280,000 last year
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·
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Earnings per share of $0.31 compared to a loss of $0.09 in fiscal year 2015
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·
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Non-GAAP Adjusted EBITDA was $2.8 million as compared to $541,000 in fiscal year 2015
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·
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Working capital improved by $1.4 million to $4.0 million at March 31, 2016
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·
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Continued development of key hand-held modular communications and avionics test set products
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·
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Revenues decreased slightly to $6.17 million from $6.45 million in the fourth quarter last year
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·
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Operating income declined to $481,000 as compared to $636,000 in fourth quarter of 2015
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·
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Earnings per share of $0.09 as compared to $0.11 in fourth quarter of 2015
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·
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Non-GAAP Adjusted EBITDA was $532,000 as compared to $682,000 in the fourth quarter last year
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·
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Established $500,000 line of credit with Bank of America
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·
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Filed a summary judgment motion to dismiss the Aeroflex lawsuit based on lack of standing
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·
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BCA Mezzanine Fund LLP exercised its warrants effective April 30, 2016, representing a $935,000 liability at year-end
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·
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Announcement of our new T-47M5 Mode 5 test set which will be available for sale later this year
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·
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Received orders for 80 Mode 5 IFF test sets at a value of $2.5 million including an Army Special Forces order for 36 AN/USM-708 (“CRAFT”) units and Navy orders for the Presidential Helicopter Program
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Contact:
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Joseph P. Macaluso
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John Nesbett or Jennifer Belodeau
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Tel-Instrument Electronics Corp.
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Institutional Marketing Services (IMS)
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(201) 933-1600
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(203) 972-9200
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jnesbett@institutionalms.com
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ASSETS
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March 31, 2016
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March 31, 2015
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||||||
Current assets:
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||||||||
Cash
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$
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972,633
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$
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185,932
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||||
Accounts receivable, net of allowance for doubtful accounts
of $7,500 and $24,975, respectively
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1,454,361
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1,625,171
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||||||
Inventories, net
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4,679,032
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4,032,074
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Prepaid expenses and other current assets
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128,071
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286,431
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Deferred tax asset
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578,507
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1,064,395
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||||||
Total current assets
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7,812,604
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7,194,003
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||||||
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||||||||
Equipment and leasehold improvements, net
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193,518
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270,792
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Deferred tax asset – non-current
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2,065,126
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2,377,583
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||||||
Other assets
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36,871
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41,109
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||||||
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Total assets
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$
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10,108,119
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$
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9,883,487
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||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||||||
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Current liabilities:
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||||||||
Current portion of long-term debt
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$
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418,255
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$
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387,839
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||||
Capital lease obligations – current portion
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10,232
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16,758
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Accounts payable
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1,686,469
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2,811,781
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Deferred revenues – current portion
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48,766
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18,609
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Federal and state taxes payable
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53,623
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-
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||||||
Accrued expenses - vacation pay, payroll and payroll withholdings
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836,589
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594,114
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Accrued expenses - related parties
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213,344
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170,348
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Accrued expenses – other
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501,687
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595,437
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Total current liabilities
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3,768,965
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4,594,886
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Subordinated notes payable – related parties
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25,000
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250,000
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Capital lease obligations – long-term
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20,524
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4,561
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||||||
Long-term debt, net of debt discount
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304,560
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708,604
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Warrant liability
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1,136,203
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518,962
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Deferred revenues – long-term
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172,703
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133,650
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Other long-term liabilities
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7,800
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33,000
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Total liabilities
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5,435,755
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6,243,663
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Commitments and contingencies
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||||||||
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Stockholders’ equity
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Common stock, 4,000,000 shares authorized, par value $.10 per share,
3,255,887 and 3,256,887 shares issued and outstanding, respectively
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325,586
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325,686
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Additional paid-in capital
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8,074,655
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8,046,168
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Accumulated deficit
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(3,727,877
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)
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(4,732,030
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)
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Total stockholders’ equity
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4,672,364
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3,639,824
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Total liabilities and stockholders’ equity
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$
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10,108,119
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$
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9,883,487
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For the years ended March 31,
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|||||||
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2016
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2015
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Net sales
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$
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24,804,825
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$
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18,195,972
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Cost of sales
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16,819,235
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12,755,280
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Gross margin
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7,985,590
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5,440,692
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Operating expenses:
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Selling, general and administrative
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3,367,544
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3,149,031
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Engineering, research and development
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2,038,126
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1,961,275
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Total operating expenses
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5,405,670
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5,110,306
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Income from operations
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2,579,920
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330,386
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Other income (expense):
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||||||||
Amortization of debt discount
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-
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(75,308
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)
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Amortization of deferred financing costs
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(5,429
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)
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(69,165
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)
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Change in fair value of common stock warrants
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(617,241
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)
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(164,653
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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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Interest expense
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(58,133
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)
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(145,658
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)
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Interest expense - related parties
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(42,996
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)
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(47,312
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)
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Total other expense
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(723,799
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)
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(690,198
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)
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Income (loss) before income taxes
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1,856,121
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(359,812
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)
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|||||
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Provision (benefit) for income taxes
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851,968
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(79,372
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)
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Net income (loss)
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$
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1,004,153
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$
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(280,440
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)
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Basic income (loss) per common share
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$
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0.31
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$
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(0.09
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)
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Diluted income (loss) per common share
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$
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0.31
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$
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(0.09
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)
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Weighted average number of shares outstanding
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||||||||
Basic
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3,256,887
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3,253,992
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Diluted
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3,261,153
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3,253,992
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Three Months
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Three Months
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Year
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Year
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|||||||||||||
Ended
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Ended
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Ended
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Ended
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|||||||||||||
March 31,
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March 31,
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March 31,
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March 31,
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|||||||||||||
2016
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2015
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2016
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2015
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Net income (loss)
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$
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299,035
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$
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372,704
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$
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1,004,153
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$
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(280,440
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)
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Income tax provision (benefit)
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239,152
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131,939
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851,968
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(79,372
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)
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Depreciation and amortization
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42,375
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42,454
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164,774
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177,291
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||||||||||||
Amortization of debt discount
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-
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-
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-
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75,308
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||||||||||||
Loss on extinguishment of debt
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-
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-
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-
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188,102
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Amortization of deferred financing costs
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1,357
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1,357
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5,429
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69,165
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Change on fair value of common stock warrants
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(80,338
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)
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95,903
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617,241
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164,653
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Interest, net
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21,973
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33,966
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101,129
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192,970
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Non-cash stock-based compensation
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8,731
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3,275
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32,277
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33,008
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Non-GAAP Adjusted EBITDA
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$
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532,285
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$
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681,598
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$
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2,776,971
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$
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540,685
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