Market Overview

Tel-Instrument Electronics Corp. Announces Receipt of NYSE American Non-Compliance Letter Regarding Minimum Equity Requirement


Tel Instrument Electronics Corp. ("Tel" or "Company") (NYSE American: TIK), a leading designer and manufacturer of avionics test and
measurement solutions, announced today that on August 8, 2018 it
received a letter from the staff of the NYSE American ("Exchange")
stating based on the Company's financial statements at March 31, 2018,
the Company is not in compliance with Section 1003(a)(ii) of the NYSE
American Company Guide, which requires that a company's stockholders'
equity be $4.0 million or more if it has reported net losses in three of
its last four fiscal years (the "Stockholders' Equity Requirement").

As of March 31, 2018, the Company had a stockholders' deficit of
approximately $1.4 million, and had net losses in three of its last four
fiscal years, thus bringing the Company below the Stockholders' Equity
Requirement. The decline in equity primarily resulted from the accrual
of approximately $5 million in damages arising from the Aeroflex
litigation as well as over $2 million in litigation costs over the
years. The Company also had to record a valuation allowance of
approximately $3.5 million against the Company's deferred tax asset.

The Company is preparing a plan ("Plan") that will be submitted to the
Exchange, describing the actions the Company is considering taking to
regain compliance with the Stockholders' Equity Requirement. The Company
has also been advised that it will be subject to delisting proceedings
if it does not regain compliance prior to the deadline of January 29,
2019, or if the Exchange determines that Company is not making progress
consistent with the Plan.

The Company's stock will continue to be listed on the NYSE American
while the Company evaluates it various alternatives. The Company's
receipt of such notification from the Exchange does not affect the
Company's business, operations or reporting requirements with the U.S.
Securities and Exchange Commission.

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

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
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.

View Comments and Join the Discussion!