UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
|
ý |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
|
|
|
For the quarterly period ended March 31, 2005 |
|
|
|
|
|
OR |
|
|
|
|
|
o |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
[For the transition period from _____________________ to ___________________________]
Commission File No. 0-31157
INNOVATIVE SOLUTIONS AND SUPPORT, INC.
(Exact name of registrant as specified in its charter)
|
PENNSYLVANIA |
|
23-2507402 |
|
(State or other jurisdiction of incorporation) |
|
(IRS Employer Identification No.) |
|
|
|
|
|
720 Pennsylvania Drive, Exton, Pennsylvania |
|
19341 |
|
(Address of principal executive offices) |
|
(Zip Code) |
(610) 646-9800
(Registrant’s telephone number, including area code)
Indicate
by check mark whether registrant (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
As of April 26, 2005, there were 11,878,745 shares of the Registrant’s Common Stock, with par value of $.001, outstanding.
INNOVATIVE SOLUTIONS & SUPPORT, INC.
INDEX
2
INNOVATIVE SOLUTIONS AND SUPPORT, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
|
|
|
As of |
|
As of |
|
||
|
ASSETS |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Current Assets: |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
65,867,167 |
|
$ |
76,350,457 |
|
|
Accounts receivable, less allowance far doubtful accounts of $100,000 at September 30, 2004 and March 31, 2005 |
|
5,003,100 |
|
6,449,260 |
|
||
|
Inventories |
|
5,191,628 |
|
5,320,820 |
|
||
|
Deferred income taxes |
|
984,111 |
|
984,111 |
|
||
|
Prepaid expenses |
|
665,276 |
|
642,840 |
|
||
|
|
|
|
|
|
|
||
|
Total current assets |
|
77,711,282 |
|
89,747,488 |
|
||
|
|
|
|
|
|
|
||
|
Property and Equipment: |
|
|
|
|
|
||
|
Computers and test equipment |
|
3,933,326 |
|
4,052,409 |
|
||
|
Corporate airplane |
|
2,998,161 |
|
2,998,161 |
|
||
|
Furniture and office equipment |
|
622,364 |
|
693,541 |
|
||
|
Manufacturing facility |
|
5,414,986 |
|
5,420,741 |
|
||
|
Land |
|
1,021,245 |
|
1,021,245 |
|
||
|
|
|
13,990,082 |
|
14,186,097 |
|
||
|
Less- Accumulated depreciation and amortization |
|
(4,369,851 |
) |
(4,733,896 |
) |
||
|
|
|
|
|
|
|
||
|
Net property and equipment |
|
9,620,231 |
|
9,452,201 |
|
||
|
|
|
|
|
|
|
||
|
Deposits and other assets |
|
137,114 |
|
131,115 |
|
||
|
|
|
|
|
|
|
||
|
Total assets |
|
$ |
87,468,627 |
|
$ |
99,330,804 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
CURRENT LIABILITIES: |
|
|
|
|
|
||
|
Current portion of notes payable |
|
$ |
100,000 |
|
$ |
100,000 |
|
|
Current portion of capitalized lease obligations |
|
7,257 |
|
7,257 |
|
||
|
Accounts payable |
|
l,696,247 |
|
1,192,322 |
|
||
|
Accrued expenses |
|
4,754,641 |
|
3,927,561 |
|
||
|
Deferred revenue |
|
526,023 |
|
557,219 |
|
||
|
Total current liabilities |
|
7,084,168 |
|
5,784,359 |
|
||
|
|
|
|
|
|
|
||
|
Note payable |
|
4,235,000 |
|
4,235,000 |
|
||
|
Long-teen portion of capitalized lease obligations |
|
20,681 |
|
16,937 |
|
||
|
Deferred revenue |
|
261,934 |
|
226,699 |
|
||
|
Deferred income taxes |
|
411,857 |
|
411,857 |
|
||
|
Commitments and contingencies |
|
— |
|
— |
|
||
|
|
|
|
|
|
|
||
|
Shareholders' Equity: |
|
|
|
|
|
||
|
Preferred stock, 10,000,000 shares authorized-Class A Convertible stock, $.001 par value; 200,000 shares authorized, no shares issued and outstanding at September 30, 2004 and March 31, 2005 |
|
— |
|
— |
|
||
|
|
|
|
|
|
|
||
|
Common stock, $.001 par value: 75,000,000 shares authorized, 13,515,330 and 11,866,995 shares issued and outstanding at September 30, 2004 and March 31, 2005 |
|
13,515 |
|
1l,867 |
|
||
|
|
|
|
|
|
|
||
|
Additional paid-in capital |
|
48,712,289 |
|
38,834,503 |
|
||
|
Retained earnings |
|
37,342,940 |
|
49,809,582 |
|
||
|
Treasury stock, at cost, l,690,026 and 0 shares at September 30, 2004 ad March 31, 2005 |
|
(10,613,757 |
) |
— |
|
||
|
|
|
|
|
|
|
||
|
Total shareholders' equity |
|
75,454,987 |
|
88,655,952 |
|
||
|
|
|
|
|
|
|
||
|
Total liabilities and shareholders' equity |
|
$ |
87,468,627 |
|
$ |
99,330,804 |
|
The accompanying notes are an integral part of these statements.
3
INNOVATIVE SOLUTIONS AND SUPPORT, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited)
|
|
|
Three Months |
|