Exhibit 99.1
Innovative Solutions and Support, Inc.
Consolidated Balance Sheets
(unaudited)
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| September |
| September |
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| 2015 |
| 2014 |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
| $ | 16,282,039 |
| $ | 15,214,584 |
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Accounts receivable |
| 2,394,695 |
| 4,419,863 |
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Unbilled receivables, net |
| 3,920,209 |
| 7,425,728 |
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Inventories |
| 4,597,316 |
| 5,470,786 |
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Deferred income taxes |
| 933,499 |
| 3,245,223 |
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Prepaid expenses and other current assets |
| 1,221,717 |
| 750,108 |
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Total current assets |
| 29,349,475 |
| 36,526,292 |
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Property and equipment, net |
| 7,095,330 |
| 7,467,663 |
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Non-current deferred income taxes |
| — |
| 57,707 |
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Other assets |
| 168,948 |
| 110,848 |
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Total assets |
| $ | 36,613,753 |
| $ | 44,162,510 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities |
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Accounts payable |
| $ | 1,435,981 |
| $ | 2,402,652 |
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Accrued expenses |
| 2,568,531 |
| 4,077,290 |
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Deferred revenue |
| 756,745 |
| 526,320 |
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Total current liabilities |
| 4,761,257 |
| 7,006,262 |
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Non-current deferred income taxes |
| 507,184 |
| 132,999 |
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Other liabilities |
| 2,826 |
| 11,725 |
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Total liabilities |
| 5,271,267 |
| 7,150,986 |
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Commitments and contingencies |
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Shareholders’ equity |
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Preferred stock, 10,000,000 shares authorized, $.001 par value, of which 200,000 shares are authorized as Class A Convertible stock. No shares issued and outstanding at September 30, 2014 and 2013 |
| — |
| — |
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Common stock, $.001 par value: 75,000,000 shares authorized, 18,756,089 and 18,714,449 issued at September 30, 2015 and 2014, respectively |
| 18,756 |
| 18,715 |
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Additional paid-in capital |
| 51,148,722 |
| 50,697,497 |
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Retained earnings |
| 818,768 |
| 6,684,902 |
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Treasury stock, at cost, 1,846,451 shares at September 30, 2015 and 1,756,807 at September 30, 2014 |
| (20,643,760 | ) | (20,389,590 | ) | ||
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Total shareholders’ equity |
| 31,342,486 |
| 37,011,524 |
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Total liabilities and shareholders’ equity |
| $ | 36,613,753 |
| $ | 44,162,510 |
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Innovative Solutions and Support, Inc.
Consolidated Statements of Operations
(unaudited)
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| Three months ended |
| Twelve months ended |
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| September 30, |
| September 30, |
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| 2015 |
| 2014 |
| 2015 |
| 2014 |
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Sales |
| $ | 3,137,089 |
| $ | 9,918,221 |
| $ | 20,067,084 |
| $ | 44,095,023 |
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Cost of sales |
| 2,482,200 |
| 7,059,709 |
| 13,135,349 |
| 30,508,823 |
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Gross profit |
| 654,889 |
| 2,858,512 |
| 6,931,735 |
| 13,586,200 |
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Operating expenses: |
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Research and development |
| 603,395 |
| 682,361 |
| 2,705,208 |
| 2,618,054 |
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Selling, general and administrative |
| 2,935,725 |
| 5,477,183 |
| 7,847,270 |
| 11,111,014 |
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Total operating expenses |
| 3,539,120 |
| 6,159,544 |
| 10,552,478 |
| 13,729,068 |
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Operating (loss) |
| (2,884,231 | ) | (3,301,032 | ) | (3,620,743 | ) | (142,868 | ) | ||||
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Interest income |
| 6,535 |
| 5,510 |
| 24,804 |
| 21,756 |
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Other income |
| 1,878 |
| 10,451 |
| 33,283 |
| 37,758 |
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(Loss) before income taxes |
| (2,875,818 | ) | (3,285,071 | ) | (3,562,656 | ) | (83,354 | ) | ||||
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Income tax (benefit) expense |
| (312,006 | ) | (1,195,496 | ) | 2,303,478 |
| (283,622 | ) | ||||
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Net income (loss) |
| $ | (2,563,812 | ) | $ | (2,089,575 | ) | $ | (5,866,134 | ) | $ | 200,268 |
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Net income (loss) per common share: |
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Basic |
| $ | (0.15 | ) | $ | (0.12 | ) | $ | (0.35 | ) | $ | 0.01 |
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Diluted |
| $ | (0.15 | ) | $ | (0.12 | ) | $ | (0.35 | ) | $ | 0.01 |
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Weighted average shares outstanding: |
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Basic |
| 16,905,526 |
| 16,956,247 |
| 16,924,189 |
| 16,927,879 |
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Diluted |
| 16,905,526 |
| 17,171,828 |
| 16,924,189 |
| 17,149,106 |
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