EAST RUTHERFORD, N.J.--(BUSINESS WIRE)--June 30, 2026--

Tel-Instrument Electronics Corp. ("Tel-Instrument," "TIC," or the "Company") OTC:TIKK, a leading designer and manufacturer of avionics test and measurement solutions, today reported a net loss of $4.9M on revenues of $9.3M for the 2025 fiscal year ended March 31, 2025.

Summary of Results:

  • Revenues for the fiscal year ended March 31, 2025, increased to $9.3M, or 6%, versus the prior fiscal year.
  • Gross margin for the 2025 fiscal year was 22%, or 24 percentage points decrease over the prior fiscal year.
  • Operating expenses increased by $1.1M, or 33% year-over-year, due to the absence of client funded engineering projects.
  • Operating loss was $2.3M as compared to an operating income of $737K in the prior fiscal year.
  • Tax Loss Carryforward reversal led to a Net loss of $4.9M.

Mr. Jeffrey O'Hara, Tel-Instrument's President and CEO commented, "FY 2025 was a difficult year for the Company as our main CRAFT test set went obsolete which severely impacted sales revenues. Moreover, the cost of finishing the engineering for the CRAFT ECP significantly exceeded budgeted levels. The reversal of prior accruals contributed to the gross margin decline. We had expected CRAFT shipments and Navy ECP units to start shipping in early FY 2026, but this was also delayed due to extensive Navy platform testing. TIC did commence CRAFT shipments in late FY 2026, but no Navy ECP units were delivered. FY 2026 revenues increased to $10.4M, and the operating loss declined substantially. TIC is projecting extremely strong revenue growth and profitability starting in the second quarter of the current fiscal year. Cash remains very tight, but we expect this to improve materially as we begin Navy KIT production next month. Since we are a year behind in reporting, the following are notable items.

  • Current sales backlog is $11M, $3.5M of this is Navy KIT production out of a $20M expected contract.
  • Navy full-rate ECP KIT production will be starting in July 2026. This is expected to increase annual revenues by $5M.
  • Strong sales of new CRAFT 708A test sets with $2.6M of backlog and $3M of orders in the pipeline.
  • Volume sales of SDR-OMNI and SDR-MIL to both commercial and military customers.
  • Work continues on SDR-OMNI/M5 which is targeted as the replacement for the 4,000 TS-4530A units currently fielded.
  • Completed fundraising in the amount of $866,500 preferred stock. I personally invested $166,500.

We plan to catch up on our reporting as soon as possible. We appreciate the patience of our shareholder base and look forward to moving into a new phase of growth and profitability."

About Tel-Instrument Electronics Corp.

Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. Tel-Instrument provides instruments to test, measure, calibrate, and repair a wide range of airborne navigation and communication equipment. For further information please visit our website at www.telinstrument.com.

This press release includes statements that are not historical in nature and may be characterized as "forward-looking statements," including those related to future financial and operating results, benefits, and synergies of the combined companies, statements concerning the Company's outlook, pricing trends, and forces within the industry, the completion dates of capital projects, expected sales growth, cost reduction strategies, and their results, long-term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. All predictions as to future results contain a measure of uncertainty and, accordingly, actual results could differ materially. Among the factors which could cause a difference are: changes in the general economy; changes in demand for the Company's products or in the cost and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations and materials; transportation, environmental matters; and other unforeseen circumstances. A number of these factors are discussed in the Company's previous filings with the U.S. Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 (the "Act") protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

TEL-INSTRUMENT ELECTRONICS CORP.

Consolidated Balance Sheets

Audited

March 31, March 31, 2025 2024 ------------ ----------- ASSETS Current assets: Cash $ 121,587 $ 132,013 Accounts receivable, net 645,346 1,110,548 Inventories, net 4,027,236 5,411,644 Prepaid expenses and other current assets 158,689 214,161 ----------- ---------- Total current assets 4,952,858 6,868,366 Equipment and leasehold improvements, net 42,108 73,195 Operating lease right-of-use assets 1,114,352 1,324,463 Deferred tax asset, net - 2,450,657 Other assets 35,109 35,109 ----------- ---------- Total assets $ 6,144,427 $10,751,790 =========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Line of credit $ 1,000,000 $ 690,000 Promissory Notes -- Related Parties 120,500 - Operating lease liabilities - current portion 229,624 210,111 Accounts payable -- Accounts payable, related party of $102,710 and $140,511, respectively 790,553 1,276,935 Deferred revenues - current portion 443,659 72,803 Accrued expenses - vacation pay, payroll and payroll withholdings 288,304 248,713 Accrued expenses - other 238,792 120,027 ----------- ---------- Total current liabilities 3,111,432 2,618,589 Operating lease liabilities -- long-term 884,728 1,114,352 Other long term liabilities 37,589 45,501 Deferred revenues -- long-term 122,917 119,721 ----------- ---------- Total liabilities 4,156,666 3,898,163 ----------- ---------- Commitments and contingencies (Note 20) Stockholders' equity Preferred stock, 1,000,000 shares authorized, par value $0.10 per share Preferred stock, 500,000 shares 8% Cumulative Series A Convertible Preferred authorized, issued and outstanding, respectively par value $0.10 per share 4,355,998 4,115,998 Preferred stock, 320,000 shares 8% Cumulative Series B Convertible Preferred authorized; 233,334 and 233,334 issued and outstanding, respectively par value $0.10 per share 1,816,701 1,704,701 Preferred stock, 166,667 shares 8% Cumulative Series C Convertible Preferred authorized; 53,500 and 53,500 issued, and outstanding, respectively, par value $0.10 per share 360,895 335,215 Common stock, 7,000,000 shares authorized, par value $.10 per share, 3,255,887 and 3,255,887 shares issued and outstanding, respectively 325,586 325,586 Additional paid-in capital 6,036,632 6,379,085 Accumulated deficit (10,908,051 (6,006,958 ----------- ---------- Total stockholders' equity 1,987,761 6,853,627 ----------- ---------- Total liabilities and stockholders' equity $ 6,144,427 $10,751,790 =========== ==========

TEL-INSTRUMENT ELECTRONICS CORP.

Consolidated Statements of Operations Audited

For the years ended March 31, --------------------------------- 2025 2024 ------------------ ------------- Net sales $ 9,296,392 $ 8,809,087 Cost of sales 7,293,677 4,791,734 -------------- ------------ Gross margin 2,002,715 4,017,353 -------------- ------------ Operating expenses: Selling, general and administrative 2,292,000 2,124,815 Engineering, research, and development 2,056,977 1,155,750 -------------- ------------ Total operating expenses 4,348,977 3,280,565 -------------- ------------ (Loss) income from operations (2,346,262 736,788 Other income (expense): Interest income 13 24,642 Interest expense (103,755 (70,086 Interest expense -- judgment - (198,535 Other income, net 318 27,025 -------------- ------------ Total other expenses, net (103,424 (216,954 -------------- ------------ (Loss) income before income taxes (2,449,686 519,834 Income tax expense 2,451,407 177,943 -------------- ------------ Net (loss) income (4,901,093 341,891 Preferred dividends (377,680 (351,549 -------------- ------------ Net loss attributable to common shareholders $ (5,278,773 $ (9,658 ============== ============ Basic and diluted loss per common share $ (1.62 $ (0.00 ============== ============ Weighted average number of shares outstanding Basic and diluted $ 3,255,887 $ 3,255,887 ============== ============

View source version on businesswire.com: https://www.businesswire.com/news/home/20260630945534/en/

CONTACT: Pauline Romeo

Tel-Instrument Electronics Corp.

(201) 933-1600 (Ext 309)