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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☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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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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☐ |
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: November 15, 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 decreased 25.6% to $5.08 million from $6.82 million in the second quarter of fiscal year 2016.
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·
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Gross margin percentage improved to 36.0% versus 32.9% for the comparable quarter in the previous year.
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·
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Legal expenses increased to $188k versus $108k in the year ago quarter.
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·
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Operating income decreased to $367k as compared to $916k in the second quarter of fiscal year 2016.
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·
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Non-GAAP Adjusted EBITDA was $411k as compared to $964k in the second quarter last year.
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·
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Pre-tax income in the second quarter of $382k versus $370k in the 2016 comparable period.
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·
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Net Income was $272k, or $0.08 per basic share versus $199k or $0.06 in the second quarter of 2016.
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·
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$1.8 million reduction in liabilities since March 31, 2016 including the satisfaction of the $720k BCA Mezzanine Fund LLP (“BCA”) warrant liability.
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Contact:
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Joseph P. Macaluso
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John Nesbett or Jennifer Belodeau
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Tel-Instrument Electronics Corp.
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Institutional Marketing Services (IMS)
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(201) 933-1600
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(203) 972-9200
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jnesbett@institutionalms.com
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September 30,
2016
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March 31,
2016
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||||||
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(unaudited)
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|||||||
ASSETS
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||||||||
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Current assets:
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||||||||
Cash and cash equivalents
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$
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830,534
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$
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972,633
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||||
Accounts receivable, net
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1,861,256
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1,454,361
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||||||
Inventories, net
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3,675,788
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4,679,032
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||||||
Prepaid expenses and other current assets
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85,282
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128,071
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||||||
Deferred income tax asset
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578,507
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578,507
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||||||
Total current assets
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7,031,367
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7,812,604
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||||||
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||||||||
Equipment and leasehold improvements, net
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152,431
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193,518
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||||||
Deferred income tax asset – non-current
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1,787,622
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2,065,126
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||||||
Other long-term assets
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34,158
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36,871
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||||||
Total assets
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9,005,578
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10,108,119
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||||||||
LIABILITIES & 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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429,660
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418,255
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||||||
Capital lease obligations – current portion
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5,981
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10,232
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||||||
Accounts payable and accrued liabilities
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1,723,448
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2,401,500
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||||||
Federal and state taxes payable
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-
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53,623
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||||||
Deferred revenues – current portion
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370,454
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48,766
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||||||
Accrued payroll, vacation pay and payroll taxes
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579,578
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836,589
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||||||
Total current liabilities
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3,109,121
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3,768,965
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Subordinated notes payable - related parties
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-
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25,000
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Capital lease obligations – long-term
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16,966
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20,524
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Long-term debt
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87,317
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304,560
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Deferred revenues – long-term
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256,088
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172,703
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Warrant liability – long-term
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165,000
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1,136,203
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Other long-term liabilities
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-
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7,800
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Total liabilities
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3,634,492
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5,435,755
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Commitments
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||||||||
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Stockholders’ equity:
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Common stock, 4,000,000 shares authorized, par value $0.10 per share,
3,255,887 shares issued and outstanding, respectively
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325,586
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325,586
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||||||
Additional paid-in capital
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8,091,013
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8,074,655
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Accumulated deficit
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(3,045,513
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)
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(3,727,877
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)
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||||
Total stockholders’ equity
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5,371,086
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4,672,364
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Total liabilities and stockholders’ equity
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$
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9,005,578
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$
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10,108,119
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Three Months Ended
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Six Months Ended
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||||||||||||||
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September 30, 2016
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September 30, 2015
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September 30, 2016
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September 30, 2015
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Net sales
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$
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5,076,029
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$
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6,818,390
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$
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10,418,398
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$
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12,664,309
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||||||||
Cost of sales
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3,250,441
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4,574,924
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6,716,157
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8,605,548
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Gross margin
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1,825,588
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2,243,466
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3,702,241
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4,058,761
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Operating expenses:
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Selling, general and administrative
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875,138
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883,876
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1,786,882
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1,749,564
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Engineering, research and development
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583,771
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443,656
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1,168,648
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935,788
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||||||||||||
Total operating expenses
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1,458,909
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1,327,532
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2,955,530
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2,685,352
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||||||||||||
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||||||||||||||||
Income from operations
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366,679
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915,934
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746,711
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1,373,409
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Other income (expense):
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||||||||||||||||
Amortization of debt discount
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-
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-
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-
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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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(1,358
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)
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(2,713
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)
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(2,715
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)
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||||||||
Change in fair value of common stock warrants
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34,000
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(518,588
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)
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251,203
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(450,828
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)
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||||||||||
Interest expense
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(17,507
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)
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(25,835
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)
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(35,333
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)
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(55,469
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)
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||||||||
Total other expense
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15,136
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(545,781
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)
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213,157
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(509,012
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)
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||||||||||
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||||||||||||||||
Income before income taxes
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381,815
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370,153
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959,868
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864,397
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||||||||||||
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Income tax expense
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109,760
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170,687
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277,504
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385,865
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||||||||||||
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Net income
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$
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272,055
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$
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199,466
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$
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682,364
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$
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478,532
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Basic income per common share
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$
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0.08
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$
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0.06
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$
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0.21
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$
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0.15
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||||||||
Diluted income per common share
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$
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0.07
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$
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0.06
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$
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0.20
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$
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0.15
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Weighted average shares outstanding:
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||||||||||||||||
Basic
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3,255,887
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3,256,887
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3,255,887
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3,256,887
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Diluted
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3,266,133
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3,260,799
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3,267,192
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3,262,058
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Three Months
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Three Months
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|||||||
Ended
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Ended
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|||||||
September 30,
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September 30,
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|||||||
2016
|
2015
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|||||||
Net income
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$
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272,055
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$
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199,466
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||||
Income tax provision
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109,760
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170,687
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||||||
Depreciation and amortization
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36,380
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39,959
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||||||
Amortization of deferred financing costs
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1,357
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1,358
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||||||
Change on fair value of common stock warrants
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(34,000
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)
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518,588
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|||||
Interest, net
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17,507
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25,835
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||||||
Non-cash stock-based compensation
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8,179
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8,577
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||||||
Non-GAAP Adjusted EBITDA
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$
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411,238
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$
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964,470
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