Tel Instrument Electronics Corp. (NYSE American:TIK), a designer and manufacturer of avionics test and measurement solutions, hasreceived a letter from the staff of the NYSE American stating that, based on the Tel´s financial statements at March 31, 2017, Tel is not in compliance with Section 1003(a)(i) of the NYSE American company guide, the company said.
The requirement states that a company´s stockholders´ equity be USD 2.0 million or more if it has reported net losses in two of its last three fiscal years. As of March 31, 2017, the company had a stockholders´ deficit of USD 54,361, which resulted from litigation costs, the accrual of USD 2.8 million in damages, as well as the recording of a valuation allowance against the company´s deferred tax asset of USD 3.5 million, which resulted in the company recording a net loss of USD 4.8 million for the fiscal year ended March 31, 2017, thus bringing the company below the Stockholders´ Equity Requirement.
The company must submit to the Exchange, by August 28, 2017, a plan advising of the actions the company has taken or will take to regain compliance with the Stockholders´ Equity Requirement by January 29, 2019.
Tel´s stock will continue to be listed on the NYSE American while Tel works to regain compliance with the Stockholders´ Equity Requirement. The company´s receipt of such notification from the Exchange does not affect the company´s business, operations or reporting requirements with the US Securities and Exchange Commission.
Tel-Instrument is a 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.