UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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| (State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices)
(Telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On November 15, 2021, the Company announced its financial results for the quarter ended September 30, 2021. The information furnished under this Item 2.02 and in the accompanying Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.
A copy of the Company’s press release is attached hereto as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
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Exhibit No. |
Description |
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99.1* |
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104 |
Cover Page Interactive Data File (formatted as Inline XBRL) |
*Filed herewith
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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TEL-INSTRUMENT ELECTRONICS CORP. |
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Date: November 16, 2021 |
By: |
Jeffrey O’Hara |
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Name: Jeffrey O’Hara |
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Title: Chief Executive Officer |
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Item 9.01.
TEL-INSTRUMENT ELECTRONICS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
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September 30, 2021 |
March 31, 2021 |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash |
$ | 4,808,457 | $ | 3,485,275 | ||||
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Accounts receivable, net |
1,530,060 | 1,933,321 | ||||||
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Inventories, net |
2,910,721 | 3,437,989 | ||||||
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Restricted cash to support appeal bond |
2,011,050 | 2,011,050 | ||||||
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Prepaid expenses and other current assets |
188,127 | 263,067 | ||||||
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Total current assets |
11,448,415 | 11,130,702 | ||||||
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Equipment and leasehold improvements, net |
142,277 | 200,769 | ||||||
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Operating lease right-of-use assets |
1,815,304 | 1,922,805 | ||||||
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Deferred tax asset, net |
2,443,042 | 2,675,040 | ||||||
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Other long-term assets |
35,109 | 35,110 | ||||||
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Total assets |
$ | 15,884,147 | $ | 15,964,426 | ||||
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LIABILITIES & STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Operating lease liabilities – current portion |
$ | 190,622 | $ | 201,883 | ||||
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Accounts payable |
391,247 | 906,149 | ||||||
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Deferred revenues - current portion |
149,223 | 150,709 | ||||||
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Accrued expenses ‐vacation pay, payroll and payroll withholdings |
342,170 | 457,232 | ||||||
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Accrued legal damages |
5,993,433 | 5,889,023 | ||||||
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Accrued expenses - other |
235,310 | 365,975 | ||||||
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Total current liabilities |
7,302,005 | 7,970,971 | ||||||
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Operating lease liabilities – long-term |
1,624,682 | 1,720,921 | ||||||
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Long term debt - PPP |
- | 722,577 | ||||||
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Deferred revenues – long-term |
312,420 | 332,428 | ||||||
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Total liabilities |
9,239,107 | 10,746,897 | ||||||
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, 1,000,000 shares authorized, par value $0.10 per share |
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Preferred stock, 500,000 shares 8% Cumulative Series A Convertible Preferred issued and outstanding, par value $0.10 per share |
3,695,998 | 3,695,998 | ||||||
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Preferred stock, 166,667 shares 8% Cumulative Series B Convertible Preferred issued and outstanding, par value $0.10 per share |
1,147,367 | 1,147,367 | ||||||
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Common stock, 7,000,000 shares authorized, par value $0.10 per share, 3,255,887 shares issued and outstanding, respectively |
325,586 | 325,586 | ||||||
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Additional paid-in capital |
7,170,954 | 7,318,620 | ||||||
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Accumulated deficit |
(5,694,865 |
) |
(7,270,042 |
) |
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Total stockholders’ equity |
6,645,040 | 5,217,529 | ||||||
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Total liabilities and stockholders’ equity |
$ | 15,884,147 | $ | 15,964,426 | ||||
TEL-INSTRUMENT ELECTRONICS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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Three Months Ended |
Six Months Ended |
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September 30, 2021 |
September 30, 2020 |
September 30, 2021 |
September 30, 2020 |
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Net sales |
$ | 3,610,863 | $ | 3,336,396 | $ | 7,743,256 | $ | 6,275,833 | ||||||||
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Cost of sales |
1,942,956 | 1,969,573 | 4,060,602 | 3,404,399 | ||||||||||||
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Gross margin |
1,667,907 | 1,366,823 | 3,682,654 | 2,871,434 | ||||||||||||
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Operating expenses: |
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Selling, general and administrative |
596,618 | 464,809 | 1,150,651 | 1,126,060 | ||||||||||||
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Litigation expenses |
3,220 | 5,514 | 4,400 | 8,210 | ||||||||||||
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Engineering, research, and development |
682,852 | 554,555 | 1,376,427 | 1,186,508 | ||||||||||||
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Total operating expenses |
1,282,690 | 1,024,878 | 2,531,478 | 2,320,778 | ||||||||||||
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Income from operations |
385,217 | 341,945 | 1,151,176 | 550,656 | ||||||||||||
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Other income (expense): |
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Interest income |
995 | 1,879 | 1,980 | 4,725 | ||||||||||||
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Other income |
22,260 | - | 35,853 | 13,854 | ||||||||||||
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Gain on forgiveness of PPP loan |
722,577 | - | 722,577 | - | ||||||||||||
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Interest expense – judgement |
(52,490 |
) |
(52,490 |
) |
(104,410 |
) |
(127,634 |
) |
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Interest expense |
- | (9,380 |
) |
- | (19,160 |
) |
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Total other net income, (expense) |
693,342 | (59,991 |
) |
656,000 | (128,215 |
) |
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Income before income taxes |
1,078,559 | 281,954 | 1,807,176 | 422,441 | ||||||||||||
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Income tax expense |
78,883 | 59,206 | 231,999 | 88,713 | ||||||||||||
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Net income |
999,676 | 222,748 | 1,575,177 | 333,728 | ||||||||||||
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Preferred dividends |
80,000 | 80,000 | 160,000 | 160,000 | ||||||||||||
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Net income attributable to common shareholders |
$ | 919,676 | $ | 142,748 | $ | 1,415,177 | $ | 173,728 | ||||||||
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Basic income per common share |
$ | 0.28 | $ | 0.04 | $ | 0.43 | $ | 0.05 | ||||||||
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Diluted income per common share |
$ | 0.20 | $ | 0.04 | $ | 0.31 | $ | 0.05 | ||||||||
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Weighted average shares outstanding: |
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Basic |
3,255,887 | 3,255,887 | 3,255,887 | 3,255,887 | ||||||||||||
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Diluted |
5,095,665 | 5,068,949 | 5,095,665 | 3,255,887 | ||||||||||||