Innovative Solutions and Support (ISSC) 8-K/A Results of Operations and Financial Condition

Exhibit 99.1

Innovative Solutions and Support, Inc.

Consolidated Balance Sheets

(unaudited)

	September 30,			September 30,
	2015			2014
ASSETS
Current assets
Cash and cash equivalents	$	16,282,039		$	15,214,584
Accounts receivable	2,394,695			4,419,863
Unbilled receivables, net	3,920,209			7,425,728
Inventories	4,597,316			5,470,786
Deferred income taxes	933,499			3,245,223
Prepaid expenses and other current assets	1,221,717			750,108
Total current assets	29,349,475			36,526,292
Property and equipment, net	7,095,330			7,467,663
Non-current deferred income taxes	—			57,707
Other assets	168,948			110,848
Total assets	$	36,613,753		$	44,162,510
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	1,435,981		$	2,402,652
Accrued expenses	2,568,531			4,077,290
Deferred revenue	756,745			526,320
Total current liabilities	4,761,257			7,006,262
Non-current deferred income taxes	507,184			132,999
Other liabilities	2,826			11,725
Total liabilities	5,271,267			7,150,986
Commitments and contingencies
Shareholders’ equity
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	—			—
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
Additional paid-in capital	51,148,722			50,697,497
Retained earnings	818,768			6,684,902
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		)
Total shareholders’ equity	31,342,486			37,011,524
Total liabilities and shareholders’ equity	$	36,613,753		$	44,162,510

Innovative Solutions and Support, Inc.

Consolidated Statements of Operations

(unaudited)

	Three months ended						Twelve months ended
	September 30,						September 30,
	2015			2014			2015			2014
Sales	$	3,137,089		$	9,918,221		$	20,067,084		$	44,095,023
Cost of sales	2,482,200			7,059,709			13,135,349			30,508,823
Gross profit	654,889			2,858,512			6,931,735			13,586,200
Operating expenses:
Research and development	603,395			682,361			2,705,208			2,618,054
Selling, general and administrative	2,935,725			5,477,183			7,847,270			11,111,014
Total operating expenses	3,539,120			6,159,544			10,552,478			13,729,068
Operating (loss)	(2,884,231		)	(3,301,032		)	(3,620,743		)	(142,868		)
Interest income	6,535			5,510			24,804			21,756
Other income	1,878			10,451			33,283			37,758
(Loss) before income taxes	(2,875,818		)	(3,285,071		)	(3,562,656		)	(83,354		)
Income tax (benefit) expense	(312,006		)	(1,195,496		)	2,303,478			(283,622		)
Net income (loss)	$	(2,563,812	)	$	(2,089,575	)	$	(5,866,134	)	$	200,268
Net income (loss) per common share:
Basic	$	(0.15	)	$	(0.12	)	$	(0.35	)	$	0.01
Diluted	$	(0.15	)	$	(0.12	)	$	(0.35	)	$	0.01
Weighted average shares outstanding:
Basic	16,905,526			16,956,247			16,924,189			16,927,879
Diluted	16,905,526			17,171,828			16,924,189			17,149,106